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Thursday 11 February 2016
California Man Arrested, Charged for Adult Adoption Scheme to Defraud Undocumented ImmigrantsRead the Press Release
Americans Helping America Chamber of Commerce Promised Citizenship to Members of Its “Migration Program” for a Price
Helaman Hansen, 63, of Elk Grove, California, was arrested today after a federal grand jury returned a 13-count indictment charging him with conspiracy to commit mail fraud and wire fraud, 11 counts of mail fraud and one count of wire fraud for operating a fraudulent adult-adoption program that targeted undocumented aliens, U.S. Attorney Benjamin B. Wagner for the Eastern District of California announced.
According to court documents, between October 2012 and January 2016, Hansen and others used various entities such as Americans Helping America (AHA) to sell members of immigrant communities memberships in what he called a “Migration Program.” A central feature of the program was the fraudulent claim that immigrant adults could achieve U.S. citizenship by being legally adopted by an American citizen and completing a list of additional tasks. At first, memberships were sold for annual fees of $150, but that fee gradually grew and eventually was as high as $10,000.
“The indictment returned today alleges a particularly predatory and manipulative type of fraud that takes advantage of the hopes and dreams of undocumented immigrants to extract fees based on false promises,” said U.S. Attorney Wagner. “The adoption of adult aliens is not a legitimate path to U.S. citizenship. While the charges against this defendant are only allegations at this point, no one should pay fees to anyone making false promises of citizenship through adult adoption.”
“It is very unfortunate that some in our communities would choose to misrepresent the American immigration system to deceive and hurt those who are trying only to make a better life for themselves and their families,” said Special Agent in Charge Ryan L. Spradlin for Homeland Security Investigation’s (HSI) San Francisco Field Office. “It is our entrusted duty to hold these criminals accountable for their actions – and so we shall.”
According to the indictment, although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their sixteenth birthdays could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and his co-conspirators induced approximately 500 victims to pay more than $500,000 to join the fraudulent program.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) HSI. Assistant U.S. Attorney André M. Espinosa is prosecuting the case.
If convicted, Hansen faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Victims are encouraged to call the FBI at 916-977-2479.
CEO and Investor Relations Representative of Revolutions Medical Corporation (RMCP) Indicted on Securities Fraud ChargesRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Rondald L. Wheet, age 51, and Bryon Scott Key, age 45, both of Mount Pleasant, South Carolina, were charged in an indictment with Conspiracy to Commit Securities Fraud, a violation of Title 18, U. S. C. §1349; Securities Fraud, a violation of Title 18, U. S. C. §1348; Conspiracy to Defraud the United States, a violation of Title 18, U. S. C. §371; and False Statement, a violation of Title 18, U. S. C. §1001(a)(2). In addition, Bryon Scott Key was charged in the same indictment with two counts of Money Laundering, in violation of Title 18, U. S. C. §1956(a)(3)(B).
The indictment alleges that Rondald L. Wheet and Bryon Scott Key engaged in a scheme to cause Revolutions Medical Corporation (RMCP), a Nevada corporation with its principal office in Charleston, South Carolina, and whose common stock is publicly traded and registered with the Securities and Exchange Commission (SEC) under Section 12 of the Securities Exchange Act of 1934, to fraudulently issue shares of RMCP stock. The indictment further alleges that Rondald L. Wheet, who was the Chairman and Chief Executive Officer (CEO) of RMCP, and Bryon Scott Key, who was the Investor Relations Representative and Assistant Sales Manager of RMCP, made false statements to the SEC concerning the issuance of those shares of stock and also interfered with and obstructed the lawful functions of the SEC.
In announcing the indictment, United States Attorney Bill Nettles said “[t]his district is applying significant resources to Securities and Exchange Commission cases. The mission of enforcing SEC cases is essential to a stable economy.”
The maximum penalty for Conspiracy to Commit Securities Fraud is 25 years imprisonment, the maximum penalty for Securities Fraud is 25 years imprisonment, the maximum penalty for Conspiracy to Defraud the United States is 5 years imprisonment, and the maximum penalty for False Statement is 5 years. Each count of Money Laundering carries a maximum penalty of 20 years.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Brooklyn woman charged with stealing $60,000 from Social SecurityRead the Press Release
A federal grand jury indicted Margaret A. Hovan, 67, of Brooklyn, for theft of government funds, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Hovan fraudulently withdrew her deceased mother’s Title II Social Security Survivor’s benefits from May 2011 until December 2014, taking a total of $59,468 to which she was not entitled.
The Social Security Administration Office of Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Augusta Man Sentenced to 30 Months for Bank FraudRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jacob Choate, 27, of Augusta, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 30 months in prison and three years of supervised release for defrauding over a dozen banks and businesses by seeking to negotiate over $28,000 worth of washed, altered and counterfeit checks. Choate was also ordered to pay restitution to his victims.
Court records reveal that the investigation arose out of complaints made in July and August 2014 about checks stolen from the mail and the cashing of stolen checks. The investigation revealed that Choate presented numerous counterfeit and altered checks to banks in central and southern Maine. Video surveillance images from the banks depicted Choate cashing or attempting to cash the checks.Judge Woodcock noted that victims included eight banks, 16 payors and 11 payees. He stated that Choate’s role as a “check casher” in the bank fraud warranted a two-and-a-half year prison sentence because of his “unremitting degree of criminality since the age of 17 years.”
The investigation was conducted by the United States Postal Inspection Service as well as Augusta, Portland, Saco and Scarborough Police Departments.Attorney General Lynch to Travel to Los Angeles as Part of National Community Policing TourRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch will travel to Los Angeles in the coming months as part of her national Community Policing Tour.
In this phase, the Attorney General will visit six jurisdictions around the country that have excelled in each of the six pillars discussed in the President’s Task Force on 21st Century Policing final report: (1) Building Trust and Legitimacy; (2) Policy and Oversight; (3) Technology and Social Media; (4) Community Policing and Crime Reduction; (5) Officer Training and Education; and (6) Officer Safety and Wellness (see: Community Policing Tour). The stop in Los Angeles will highlight Pillar 3—Technology and Social Media.
The Attorney General is kicking off her tour THURSDAY, FEBRUARY 11, and FRIDAY, FEBRUARY 12, in Miami-Dade County, Florida, to highlight Pillar 1 – Building Trust and Legitimacy. In addition to Miami-Dade County and Los Angeles, Attorney General Lynch will also visit Portland, Oregon; Indianapolis, Indiana; Fayetteville, North Carolina; and Phoenix, Arizona
“One of my top priorities as Attorney General is strengthening relationships between law enforcement officers and the communities we serve and protect,” said Attorney General Loretta Lynch. “During the second phase of my community policing tour, I will be highlighting some of the innovative efforts underway around the country to build trust, foster cooperation, and enhance public safety. I look forward to meeting with law enforcement officers, local leaders, and residents in the weeks and months ahead to discuss how we can ensure that every American benefits from neighborhoods that are supportive, safe, and strong.”
United States Attorney Eileen M. Decker said she was extremely pleased that Los Angeles has been selected as one of the stops on the Attorney General’s community police tour. “We look forward to participating in the Attorney General’s visit to Los Angeles later this year,” Ms. Decker said. “Fostering relationships between police and the communities they serve is an important step in improving transparency and confidence in law enforcement."
The Attorney General’s national Community Policing Tour builds on President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the President’s Task Force on 21st Century Policing final report. The first phase of the tour launched on May 19, 2015, in Cincinnati, Ohio, and also included visits to Birmingham, Alabama; Pittsburgh, Pennsylvania; East Haven, Connecticut; Seattle, Washington; and Richmond, California.
Attorney General Loretta E. Lynch Statement on Fatal Shooting of Two Law Enforcement Officials in Hartford County, MarylandRead the Press Release
Attorney General Loretta E. Lynch released the following statement regarding yesterday’s fatal shooting of Harford County, Maryland Senior Sheriff’s Deputies Mark Logsdon and Patrick Dailey:
“I am deeply saddened by the shooting in Harford County, Maryland, that took the lives of two long-serving sheriff’s deputies. This was an appalling and senseless crime, carried out against two dedicated guardians of the public. Losses like these are a tragic reminder of the dangers our public safety officers face every day – and the courage and commitment they routinely demonstrate in the fulfilment of their extraordinary charge. My thoughts and prayers – and those of my colleagues throughout the law enforcement community – are with the families and loved ones of our fallen friends.”
Arden, N.C. Man Sentenced to More Than Six Years in Prison for Federal Firearms ViolationRead the Press Release
ASHEVILLE, N.C. – Kenneth Dewayne Sherlin, a/k/a Richard Dale Lawrence, Jr., 32, of Arden, N.C. was sentenced in federal court today to 77 months in prison for a federal firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also sentenced Sherlin to three years of supervised release.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Van Duncan of the Buncombe County Sheriff’s Office.
According to filed court documents and today’s hearing, on or about October 10, 2014, a deputy with the Buncombe County Sheriff’s Office conducted a traffic stop of the car Sherlin was driving. During the traffic stop, law enforcement recovered three firearms from inside the vehicle, including a sawed-off shotgun, and ammunition. Law enforcement also discovered that Sherlin had an outstanding arrest warrant for carrying a concealed weapon. According to statements made in court today, Sherlin is prohibited from possessing a firearm due to prior convictions in North Carolina, including discharging a weapon into occupied property, two counts of robbery with a dangerous weapon, one count of second degree kidnapping, one count of conspiracy to commit robbery with a dangerous weapon and multiple breaking and entering and larceny convictions.
In June 2015, Sherlin pleaded guilty to one count of possession of an unregistered firearm, that being the sawed-off shotgun. He has been in federal custody since October 2014. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and the Buncombe County Sheriff’s office. The case was prosecuted by Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville.
Allegheny County Businessman Sentenced to 16 Months in Prison for Fraud SchemeRead the Press Release
PITTSBURGH – An Allegheny County businessman was sentenced today in federal court to sixteen months imprisonment, followed by two years of supervised release, restitution of $1,872,935 and a fine of $25,000, on his convictions of conspiracy to commit bank fraud and filing a false tax return, United States Attorney David J. Hickton announced today.
United States District Court Judge Arthur J. Schwab imposed sentence upon Joseph Nocito, Jr. of Sewickley, Pennsylvania.
According to information presented to the Court, Nocito knowingly and willfully conspired with other individuals to commit an offense against the United States, that is, bank fraud, in connection with Nocito’s purchase of the real property located in Longboat Key, Florida. Nocito purchased the property on July 27, 2007, with a mortgage loan from Washington Mutual Bank in the amount of $2,377,000. In loan documents submitted by Nocito to the bank, Nocito falsely represented that the purchase price of the property was $3,000,000 and that a $600,000 cash deposit had been made by or on behalf of Nocito toward the purported $3,000,000 sales price. As part of the conspiracy, $458,350 of the mortgage loan monies were paid to Nocito as kickbacks, without the knowledge or approval of Washington Mutual Bank.
Nocito also filed a false tax return for calendar year 2007 in which Nocito reported that his total adjusted gross income was $88,269, whereas, as he knew and believed, his correct total adjusted gross income was $529,619.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service and the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Nocito.
Alleged Leader of Grape Street Crips Street Gang Charged in Connection with Four Murders, Three Attempted Murders as Part of Decades-Long Racketeering ConspiracyRead the Press Release
Three other alleged gang members arrested and charged federally
NEWARK, N.J. – The alleged long-time leader of the Grape Street Crips will appear in court today on charges linking him to four murders, three attempted murders, and numerous other crimes as part of a racketeering conspiracy, U.S. Attorney Paul J. Fishman announced.
Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 39, of Belleville, New Jersey, was charged today in a fourth superseding indictment with RICO conspiracy, violent crimes in aid of racketeering, aiding and abetting the use of firearms in furtherance of crimes of violence, witness tampering, robbery, extortion, and drug trafficking. Three other men, Sean L. Scott Sr., a/k/a “Ali Rock, 45; Keon Bethea, a/k/a “Fat Boy,” 33; and Jamil Harrison, a/k/a “L-Mel,” 32, all of Newark, were arrested today and charged by criminal complaint with distribution of heroin and crack-cocaine. The four defendants are scheduled to appear today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
“Nine months ago we announced the arrests of more than 70 members – including the No. 2 and No. 3 highest ranking members – of the Grape Street Crips, a violent street gang we alleged controls much of the heroin trade in northern New Jersey,” U.S. Attorney Fishman said. “Today, we are announcing charges against Corey Hamlet, the leader of that organization, in an indictment that spells out his alleged role in at least four homicides and three attempted homicides in furtherance of his control of this drug trafficking organization. The people of Newark should not have to endure that kind of violence or the fear that it breeds. I am hopeful that these arrests will make the streets of this city safer.”
“The FBI’s mission at the beginning of this investigation was to significantly disrupt the Grape Street Crips criminal enterprise operating in Newark,” Andrew Campi, FBI-Newark Acting Special Agent in Charge, said. “The federal indictment and arrest of its leader, Corey Hamlet, has brought us closer to our ultimate goal of dismantling one of the most violent street gangs in the city. This investigation is a tremendous example of the positive impact law enforcement has on the community and when federal, county, and local authorities join together with a common purpose.”
“Today we have taken a very dangerous and violent person off the street,” Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The people of Newark can be assured that the DEA will continue to pursue these violent predators.”
Hamlet’s indictment follows the coordinated takedown in May 2015 of 50 alleged members and associates of the Grape Street Crips, who were charged by criminal complaints with drug-trafficking, physical assaults, and witness intimidation. The charges – including today’s arrests – are the result of a long-running FBI and DEA investigation, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics.
According to documents filed in these cases and statements made in court:
Hamlet has allegedly served as the long-time leader of the New Jersey Grape Street Crips, even while serving prison sentences or being detained in federal or state correctional facilities. The New Jersey Grape Street Crips – a local set of a nationwide street gang founded in Los Angeles – engage in drug-trafficking and other criminal activities to enrich themselves and fellow gang members. In addition to these criminal activities, the gang’s rules provide that members must retaliate against individuals who cooperate with law enforcement. Gang members routinely engage in acts of intimidation and violence against witnesses, individuals who are believed to be cooperating with law enforcement, and law enforcement officers themselves. As the gang’s leader, Hamlet allegedly participated in and authorized acts of violence against rivals, suspected cooperating witnesses, and even fellow gang members who were perceived as being disloyal.
After completing a previous federal sentence, Hamlet and other gang members began to extort Victim One. After Victim One refused to pay the extortion demands, Hamlet targeted Victim One and associates of Victim One for violence. In early 2013, Hamlet authorized Corey Batts, 30, of Newark, and Tony Phillips, of Newark, to murder Victim Two, in part, because Hamlet believed that Victim Two, a member of the New Jersey Grape Street Crips, had grown too close to Victim One. On May 3, 2013, Batts and Phillips, acting on Hamlet’s orders, allegedly shot Victim Two repeatedly in the head and dumped the victim’s body on a Newark street.
In August 2013, Hamlet authorized Batts to murder Victim One. In October 2013, Hamlet met with Victim One at the Mall at Short Hills in Millburn, New Jersey, in a meeting that had been set-up by Victim Five, a member of the New Jersey Grape Street Crips who was a close associate of Victim One and who attempted to broker a truce between Hamlet and Victim One.
After the Short Hills meeting, Hamlet used a social media account to post a report from the Essex County Prosecutor’s Office purportedly indicating that Victim One had provided a statement to law enforcement. Just three days after Hamlet’s social media post, Batts and other gang members – acting on Hamlet’s orders – repeatedly shot and nearly killed Victim One and Victim Four, a bystander who was inside Victim One’s car.
Following the attempted murder of Victim One, Hamlet and other gang members perceived that Victim Five had been disloyal by attempting to put an end to the feud between Hamlet and Victim One. In November 2013, Aaron Terrell, 24, and Rashan Washington, 26, both of Newark, murdered Victim Five. Acting on Hamlet’s orders, Washington lured Victim Five into a Jeep Cherokee and then purposely left Victim Five alone, while Terrell shot Victim Five once in the head.
In November 2013, Hamlet allegedly told a conspirator that Victim Six, who was a relative of Victim One, had to be murdered. On March 3, 2014, Hamlet and another conspirator pulled up to a car being driven by Victim Six. Although Hamlet aimed a firearm at Victim Six and the car’s other occupants, Victim Six pulled off before any shots were fired. A short time later, however, Hamlet’s conspirator found Victim Six, and a car chase ensued. The chase concluded when Victim Six’s car crashed into other vehicles at Irvine Turner Boulevard and Spruce Street in Newark, and Hamlet’s conspirator fired numerous shots in the direction of Victim Six’s vehicle. Victim Six was shot and Victim Seven, a passenger in Victim Six’s car, was killed. Victim Eight, an innocent bystander who was a passenger in one of the vehicles crashed into at the intersection, was shot in the head and killed.
In addition to orchestrating these and other acts of violence, Hamlet conspired with other gang members to distribute 280 grams or more of crack-cocaine, conspired to distribute heroin, was involved in the extortion and robbery of other individuals, and threatened individuals whom he believed to be cooperating with law enforcement.
On each of the charges of RICO conspiracy, conspiracy to distribute crack-cocaine, and using firearms in furtherance of crimes of violence, Hamlet faces a maximum penalty of life in prison. The first count of using a firearm in furtherance of a crime of violence carries a mandatory minimum term of 10 years, while the second such count carries a mandatory minimum term of 25 years, which must be imposed consecutively to the first count. On the six counts of violent crimes in aid of racketeering, Hamlet faces terms of imprisonment ranging from three to 20 years.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation leading to the charges. Fishman thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Anthony A. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work on the investigation. He also thanked officers assigned to the Safe Streets Task Force from the Orange and East Orange police departments and the Essex County Department of Corrections.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the federal criminal complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Albuquerque Felon Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Francisco Roberto Esquibel, Jr., 34, of Albuquerque, N.M., pleaded guilty today in federal court to unlawfully possessing a firearm and ammunition. The guilty plea was entered without the benefit of a plea agreement.
Esquibel was charged in a criminal complaint filed on June 11, 2015, with being a felon in possession of a firearm and ammunition. The complaint alleged that Esquibel unlawfully possessed a stolen firearm at his residence in Albuquerque on June 10, 2015. According to the complaint, the Albuquerque Police Department (APD) found the firearm while arresting Esquibel on an outstanding warrant.
Esquibel was subsequently indicted on July 31, 2015. According to the indictment, Esquibel was prohibited from possessing firearms or ammunition because he previously had been convicted of conspiracy to commit armed robbery, aggravated battery with a deadly weapon, felon in possession of a firearm, receiving or transferring a stolen motor vehicle, and possession of controlled substance with intent to distribute.
During today’s hearing, Esquibel pled guilty to the indictment. At sentencing Esquibel faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Albuquerque Police Department. Assistant U.S. Attorney Jacob Wishard in prosecuting the case.
Albany Man Sentenced to 51 Months for Importing EthyloneRead the Press Release
ALBANY, NEW YORK - Damon J. Murray, age 28, of Albany, was sentenced today to 51 months in prison and 6 years of supervised release for importing the controlled substance ethylone into the United States.
The announcement was made by U.S. Attorney Richard S. Hartunian and James Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Ethylone, which is often used as a party drug, has been a controlled substance since March 2014.
On February 12, 2015, U.S. Customs and Border Protection Officers in Cincinnati, Ohio, intercepted a package that had been sent from China to the United States, and which was addressed to “Damon Murray LLC” at the defendant’s residential address in Albany. The package was found to contain about 400 grams of ethylone. On February 26, 2015, the defendant accepted and signed for the package. HSI Special Agents then arrested the defendant, who admitted ordering the ethylone from China and also previously selling ethylone to others, sometimes marketing it as “molly.”
This case was investigated by Homeland Security Investigations, with assistance from the Albany County Sheriff’s Office and U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorney Michael Barnett.
Additional Occupiers in the Armed Takeover of the Malheur National Wildlife Refuge Scheduled to Make Initial Appearances on Federal Conspiracy ChargesRead the Press Release
PORTLAND, Ore – Billy J. Williams, United States Attorney for the District of Oregon, announced that nine additional individuals have been charged by federal indictment and seven have been arrested today in relation to the occupation of the Malheur National Wildlife Refuge in Burns, Oregon. The defendants, listed below are scheduled to make appearances in federal court, throughout six different states, today and tomorrow. Two of the defendants remain at large. Each defendant is charged in the indictment with one felony count of conspiracy to impede officers of the United States from discharging their official duties through the use of force, intimidation, or threats.
The indictment charges the defendants below:
Blaine Cooper, 36, of Humboldt, Arizona
Wesley Kjar, 32, of Utah
Corey Lequieu, 44, of Fallon, Nevada
Neil Wampler, 68, of Los Osos, California
Jason Charles Blomgren, 41, of Murphy, North Carolina
Darryl William Thorn, 31, of Marysville, Washington
Eric Lee Flores, 22, of Tuallip Washington
All defendants are presumed innocent until proven guilty. See the indictment attached.
The case is being prosecuted by Assistant U.S. Attorneys Ethan Knight and Geoffrey Barrow.
50 Charged in Methamphetamine/Cocaine Distribution ConspiraciesRead the Press Release
DALLAS — Following an operation yesterday led by the FBI’s Fort Worth Violent Crime/Gang Task Force, 41 individuals are now in custody on federal drug distribution conspiracy charges, announced U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class, Sr., of Dallas FBI.
Four federal criminal complaints, partially unsealed today, charge a total of 50 individuals with conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and/or 500 grams or more of cocaine. Thirty-six of those defendants were arrested in yesterday’s operation, five were already in custody at various locations on unrelated state charges, and nine have not yet been arrested.
Several defendants have made their initial appearance in federal court in Dallas before U.S. Magistrate Judge Renee Toliver. All remain in custody. Several detention hearings will be held next week.
According to the affidavits filed with the complaints, the conspiracies began as early as September 2013 and August 2014. Throughout the investigation, substantial amounts of methamphetamine and cocaine, as well as cash and firearms, were seized from the drug trafficking organization (DTO) that was allegedly responsible for distributing hundreds of pounds of methamphetamine and kilograms of cocaine throughout the Dallas – Fort Worth metroplex.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalties for the charged offenses are not less than five years nor more than 40 years in federal prison and a $5 million fine.
The FBI’s Fort Worth Violent Crime/Gang Task Force, comprised of agents, investigators and police officers from the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety; the Arlington Police Department and the Fort Worth Police Department, is conducting the investigation. U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the Dallas, Garland, Grand Prairie, Irving and Mesquite Police Departments are assisting in the investigation.
Assistant U.S. Attorney Joshua Burgess is in charge of the prosecution.
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Wednesday 10 February 2016
Wilkes Barre Man Indicted for Heroin, Cocaine and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted yesterday by a federal grand jury in Scranton on heroin, hydrocodone and cocaine possession, and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Andre Allen, age 25, with possessing with intent to distribute heroin, hydrocodone and cocaine in Wilkes-Barre in September 2015. The indictment also charges Allen with possessing multiple firearms in furtherance of his heroin, hydrocodone and cocaine trafficking activities.
The charges stem from a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Wilkes-Barre Police Department in which the Wilkes-Barre Police Department executed a search warrant at Allen’s residence in Wilkes-Barre. From the residence, the police recovered four firearms, two of which were stolen, over 200 grams of marijuana, 31 grams of heroin, 33 grams of cocaine and other drug paraphernalia.
The investigation of these cases was conducted by the ATF, working in conjunction with the Wilkes-Barre Police Department. The prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes
This case was also brought as 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
Allen faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $1,500,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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University of Alabama at Birmingham Enters Agreement with Justice Department to Improve Physical Access on CampusRead the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance today announced a comprehensive settlement agreement under the Americans with Disabilities Act with the University of Alabama at Birmingham to ensure equal access for individuals with disabilities to the university’s academic and general facilities. The agreement also established an innovative process for ADA complaints to be investigated or reviewed.
The agreement resolves a complaint filed by a UAB student who alleged that various buildings and parking lots on campus were inaccessible to individuals with mobility impairments, in violation of the ADA.
UAB worked jointly with the U.S. Department of Justice and the U.S. Attorney’s Office to address the complaint. Through the collaboration, the parties developed a pilot program designed to address alleged violations of the ADA at institutions of higher learning. As part of the pilot, UAB agreed to conduct architectural reviews of several academic and general facilities. The Justice Department provided support and trained UAB personnel to properly survey the university’s property for ADA compliance. Once UAB completes its architectural surveys, it will submit reports to the Justice Department for review.
“UAB should be commended for its quick response to the complaint of potential ADA violations and its willingness to work collaboratively with my office and DOJ to promptly address the problem and protect the rights of people with disabilities,” Vance said. “We welcome the use of this collaborative model, which avoids litigation costs and encourages efficient remedies for the people in our community.”
Title II of the ADA requires that public entities ensure that no qualified individual with a disability be excluded from participation in or be denied the benefits of services, programs or activities of a public entity, or be subjected to discrimination on the basis of that disability. In addition, Title II of the ADA requires, among other things, that no qualified individual with a disability shall, because a public entity’s facilities are inaccessible to or unusable by individuals with disabilities, be excluded from participation in, or be denied the benefits of the services, programs or activities of a public entity, or be subjected to discrimination by any public entity.
As a public entity, UAB is required to ensure that its facilities are readily accessible to individuals with disabilities. Public entities must also construct or alter any buildings or facilities in such a manner that those structures meet the requirements of Title II of the ADA.
U.S. Attorney’s Office Files Civil Lawsuit Against New Jersey Doctor, Two Companies for Submitting Bogus Claims to Federal Health Care ProgramsRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman announced today that the government has filed a complaint against a Union County, New Jersey, doctor and his medical practice companies for knowingly submitting millions of dollars in false claims to Medicare and Medicaid for thousands of diagnostic tests that were never performed and for physical therapy services performed by unqualified personnel.
The civil complaint, filed today in Newark federal court, charges Dr. Labib E. Riachi, 47, of Westfield, New Jersey, and two companies that he owns and operates, Riachi, Inc. and Center for Advanced Pelvic Surgery, LLC, both based in Westfield, with violating the False Claims Act, among other illegal conduct.
According to the complaint:
The defendants routinely billed Medicare and Medicaid for anorectal manometry, an invasive diagnostic test, and electromyography, another diagnostic test, even though most of the tests were never performed. In addition, the defendants submitted claims to Medicare for physical therapy services that should not have been paid because they were not performed by a qualified therapist. This scheme resulted in millions of dollars of reimbursement that would not have been paid but for the defendants’ misconduct.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, and the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the complaint.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Lucy Muzzy of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Bruce Levy Esq. and Larry Lustberg Esq., Newark
Two Sex Offenders Get Massive Sentences for Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas – Two men, already convicted sex offenders who resided in Corpus Christi, have both been sentenced for online solicitation of a minor in separate but similar cases, announced U.S. Attorney Kenneth Magidson. James Robert Kirkland, 48, and Taylor Alan Mills, 30, both pleaded guilty in December 2015.
Late today, Senior U.S. District Hayden Head to ordered Kirkland serve a total of 324 months in federal prison to immediately followed by a lifetime of supervised release. At the hearing, a Homeland Security Investigations (HSI) agent testified that in 1998, Kirkland was convicted in North Carolina for indecent liberties with a child and was required to register as a sex offender. In that case, Kirkland sexually assaulted an 10-year-old family member. In 2001, Kirkland was also convicted in federal court for bank robbery. The court also heard that Kirkland was on a federal supervised release for a 2010 failure to register as a sex offender conviction when he was arrested on the online solicitation of a minor case. The court revoked that term and ordered he serve 24 months on that charge which will be served consecutively to the 300-month sentence for the current solicitation of a minor conviction, resulting in a total term of 324 months in federal prison.
Earlier this week, Senor U.S. District Judge Janis Graham Jack ordered Mills to federal prison for a term of 25 years and must serve the rest of his life on supervised release. At that hearing, additional evidence was presented from an Aransas Pass Police Department detective who worked on his 2013 online solicitation of a minor case. According to testimony, Mills began having a conversation on a social media website with a 16-year-old girl in 2012. Mills eventually picked up the girl from school and exposed himself to her. He was convicted in state court in 2013 and required to register as a sex offender.
Both must also register as sex offenders.
At the time of their pleas, the court heard that in September 2015, FBI, Homeland Security Investigations (HSI) and the Corpus Christi Police Department - Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a joint investigation targeting individuals involved in online solicitation of minors. Mills and Kirkland were both communicating with a person they believed was the mother of two minor female children – ages 14 and 11. In reality, they were actually talking to an undercover officer. Mills and Kirkland each made arrangements to meet and engage in sexual activity with the mother’s minor female children.
Both men were apprehended as they arrived at the designated meeting places. At the time of each man’s arrest, they both had several condoms with them and admitted to authorities that their intentions were to engage in sexual acts with the minor children.
Both men were arrested on the federal charges in September 2015 and have been in custody since that time where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Trenton Man Admits Intent to Distribute over 100 Grams of HeroinRead the Press Release
TRENTON, N.J. – A Trenton man who was found in possession of 143 grams of heroin and a loaded firearm pleaded guilty today to narcotics possession, U.S. Attorney Paul J. Fishman announced.
Dorian Brown, 36, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with possession with intent to distribute heroin.
According to documents filed in this case and statements made in court:
On June 4, 2014, Brown, who had been the target of an investigation led by detectives from the Mercer County Prosecutor’s Office, Special Investigations Unit, and officers from the Trenton Police Department, in cooperation with the U.S. Drug Enforcement Administration (DEA), was apprehended during the execution of search warrants on his car, as well as his Trenton home. Law enforcement seized approximately 130 grams of heroin from Brown’s home, where detectives also discovered a loaded semi-automatic handgun. An additional 13 grams of heroin was seized from Brown’s car.
The narcotics charge to which Brown pleaded guilty carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for May 17, 2016.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and detectives of the Mercer County Prosecutor’s Office, Special Investigations Unit, under the direction of Acting Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea. He also thanked officers of the Trenton Police Department under the direction of Police Director Ernest Parrey for their assistance.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian P. Reilly, Esq., Assistant Federal Public Defender, Trenton
Tohono O’odham Man Receives 71 Month Sentence for Aggravated Assaults on the Tohono O’odham Indian NationRead the Press Release
TUCSON – Yesterday, Juan Joe Valenzuela, 22, of the Village of Cowlic, Tohono O’odham Indian Nation, was sentenced by U.S. District Judge Jennifer G. Zipps to 71 months’ imprisonment on three counts of assault with the use of a dangerous weapon and assault resulting in serious bodily injury to which he previously pleaded guilty. The defendant is a member of the Tohono O’odham Indian Nation.
Valenzuela stabbed a female in the leg with a pocket knife in an altercation and later stabbed and assaulted a man on the Tohono O’odham Indian Nation. Both victims are members of the Tohono O’odham Indian Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Tohono O’odham Nation Police Department. The prosecution was handled by Raquel Arellano and Brian Decker, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBERS: CR-14-01517-TUC-JGZ
CR-15-00904-TUC-JGZ
RELEASE NUMBER: 2016-010_ Valenzuela
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Todd County Man Sentenced to 60 Months for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Todd County, South Dakota, man convicted of Abusive Sexual Contact was sentenced on February 8, 2016, by U.S. District Court Judge Roberto A. Lange.
Glenford Old Lodge, age 26, was sentenced to 60 months in custody, 5 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $149.50 restitution.
Old Lodge was indicted for Aggravated Sexual Abuse and Sexual Contact by a federal grand jury on April 14, 2015. He pled guilty to a superseding information charging Abusive Sexual Contact on November 17, 2015.
On or about April 6, 2014, Old Lodge went to the home of the victim in Mission, who was an acquaintance. He entered the victim’s home while she was asleep in her bed, and removed her pajama bottoms and touched her genitalia. The victim awoke and kicked and screamed at him, and he fled her home. She reported the matter to the local authorities and a tribal arrest warrant was issued for Old Lodge’s arrest.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Tim Maher and Kirk Albertson prosecuted the case.
Old Lodge is currently serving a sentence in an unrelated State case and will begin serving his Federal sentence once his State sentence is complete.
Thirteen Individuals Indicted in February Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the February 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
CODY McCLENDON, age 35, of Tahlequah, Oklahoma
MICHAEL LINCOLN, age 39, of Tulsa, Oklahoma
AMBER CLAPHAN, age 33, of Stilwell, Oklahoma
DONALD TRAMMEL, age 40, of Tahlequah, Oklahoma
SAMANTHA SMITH, age 21, of Muskogee, Oklahoma
TERESA CHAGOLLA, age 54, of Tahlequah, Oklahoma
JACOB MASTERS, age 54, of Tulsa, Oklahoma
NATHAN GREEN, age 27, of Hulbert, Oklahoma
Drug Conspiracy
The Indictment alleges that from in or about June 2015 and continuing up to and including January 27, 2016, in the Eastern District of Oklahoma, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and the Distribution of 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, and 50 grams of Methamphetamine (actual), a Schedule II Controlled Substance.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The charges are in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years and not more than Life imprisonment, a $10,000,000.00 fine or both.
Assistant United States Attorney Shannon Henson
DEAUNDRE DEANGELO CHATMAN, age 30, of Muskogee, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about November 13, 2015, within the Eastern District of Oklahoma, the defendant, DEAUNDRE DEANGELO CHATMAN, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Federal Bureau of Investigation Violent Crime Task Force.
The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable not more than 10 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow; Special Assistant United States Attorney Shelly Harrison
DIXIE ANN MORPHIS, age 35, of Sayre, Oklahoma
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of A Drug Trafficking Crime
Felon In Possession Of FirearmThe Indictment alleges that on or about December 5, 2015, in the Eastern District of Oklahoma, the defendant did knowingly possess with the intent to distribute more than 50 grams of methamphetamine and possessed a firearm in furtherance of a drug trafficking crime after having been convicted of a crime punishable by imprisonment for a term exceeding one year.
The charges arose from an investigation by the McAlester Police Department and the Drug Enforcement Administration Drug Task Force.
The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A)(viii), punishable by not more than 10 years imprisonment or more than Life; up to a $10,000,000.00 fine or both and Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years imprisonment and up to Life; up to a $250,000.00 fine or both and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine of up to $250,000.00 or both.
Assistant United States Attorney Timothy Hammer
SCOTT MATHEW REID, age 44, of Beverly, West Virginia
Fraud And False Statements Involving Aircraft Parts
ForfeitureThe Indictment alleges that between September 14, 2012, and November 19, 2012, the exact date unknown to the Grand Jury, in the Eastern District of Oklahoma and elsewhere, the defendant knowingly and with the intent to defraud made and used a materially false writing, entry, certification, document and record concerning aircraft parts in and affecting interstate commerce. In particular, the defendant made, caused to be made, and used false entries in a logbook regarding the left engine of a twin-engine, Beechcraft Baron aircraft that represented that the subject engine had received a major overhaul within an approximate period of the previous 300 hours of engine operation, when he knew in fact that no such major overhaul of the engine had occurred within an approximate period of the previous 1300 hours of engine operation.
The charge arose from an investigation by the Federal Bureau of Investigation and the Department of Transportation, Office of Inspector General.
The charges are in violation of Title 18, United States Code, Sections 38(a)(1)(C) and 38(b)(1), punishable by not more than 15 years imprisonment, up to a $500,000.00 fine or both.
Assistant United States Attorney Rob Wallace
HARVEY LEE STONE, age 52, of Ferris, Texas
Felon In Possession Of Firearm
The Indictment alleges that on or about January 23, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Durant Police Department, the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The charge is in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
EDWARD ROBERT SALDANA II, age 29, of Muldrow, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about December 10, 2015 and January 5, 2016, within the Eastern District of Oklahoma, the defendant, EDWARD ROBERT SALDANA II, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sheriff’s Department and the Drug Enforcement Administration.
The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
The City of Somerville Restores Reemployment Promotional Rights of Marine Corps ReservistRead the Press Release
BOSTON – The U.S. Attorney’s Office announced its settlement resolving claims that the City of Somerville violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to re-employ U.S. Marine Corps Reservist Sean Keane at the appropriate level of seniority following his multiple military deployments, including multiple tours in Afghanistan. USERRA protects the employment rights of service men and women returning to the civilian workforce after their military service. The law provides that returning service members must be restored to their civilian employment as if they had not been separated due to their military service. USERRA governs the reemployment process and prohibits employers from denying returning service members seniority or other employment rights or benefits due to their time away from the job while on military service.
Keane, a firefighter for the City of Somerville since 1989, was called to active duty military service from April 2, 2004 to September 25, 2013. Following his return, Keane took a lieutenant’s make-up promotional exam to replace the regular administration of the examination that he missed due to his deployment. Keane received the highest score on the test which placed him at the top of the promotional list, ahead of two firefighters who had previously been promoted in July 2013. When Keane was eventually promoted in October 2014, he requested that his promotion be effective as of July 2013, the date he would have been promoted had he not been away on military service. He was denied the July 2013 promotion date and, as a result, was deemed ineligible to take a make-up exam for a subsequent promotional opportunity, the captain’s position.
“Reservists who are called into active duty to serve their country make many sacrifices including time away from their jobs,” said United States Attorney Carmen M. Ortiz. “In applying USERRA’s protections, we seek to restore servicemembers to the promotions and pay they have rightfully earned. We are committed to ensuring that those who serve our country are not disadvantaged because of their military service, and are encouraged by the City’s swift action in fulfilling its legal obligations with respect to Mr. Keane.”
“The great sacrifice of Americans who serve in our Marine Corps should never be a detriment to their civilian careers,” said Acting Associate Attorney General Stuart Delery. “The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to hold employers who violate their rights accountable.”
“As a service member in Afghanistan, Sean Keane has served his country with admirable distinction, honor and integrity,” said Principal Deputy Assistant Attorney General Vanita Gupta for the Justice Department’s Civil Rights Division. “Courageous men and women like Lieutenant Keane, who answer America’s call to defend our freedom, deserve to reclaim their civilian jobs without undue impediment when they return home. We commend the state and local officials who worked cooperatively to resolve this claim under USERRA.”
Under the terms of the settlement agreement, the City of Somerville agree to pay more than $15,000 to Keane as back pay, and the Commonwealth will permit Keane to make-up the missed examination for promotion to captain. Based on his score, Keane will be as eligible for a promotion as others who took the examination on its initial schedule.
This case stems from a referral by the U.S. Department of Labor (DOL),following an investigation by the DOL’s Veterans’ Employment and Training Service (VETS), to the the U.S. Attorney’s Office for the District of Massachusetts and the Employment Litigation Section of the Department of Justice’s Civil Rights Division. The case was handled by Assistant U.S. Attorneys Jessica Driscoll and Jennifer Serafyn of Ortiz’s Civil Rights Unit, and Special Litigation Counsel Andrew Braniff and Trial Attorney Jeremy Monteiro of the Justice Department’s Civil Rights Division.
The protection of servicemembers’ rights is a priority for the U.S. Attorney’s Office. Additional information about USERRA can be found at www.usdoj.gov/crt/emp, www.servicemembers.gov and www.dol.gov/vets/programs/userra/main.htm.
Taos Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE—Julian Concha, 26, a member and resident of Taos Pueblo, N.M., was sentenced this morning in Santa Fe, N.M., to 37 months in prison followed by three years of supervised release for his federal assault conviction.
Concha was arrested on Feb. 13, 2015, on an indictment charging him with assault resulting in serious bodily injury and two counts of assault with a dangerous weapon. The indictment alleged that the crimes were committed on Jan 15, 2013, in Taos Pueblo in Taos County, N.M.
On Aug. 6, 2015, Concha pled guilty to a felony information charging him with assault resulting in serious bodily injury and assault by striking, beating or wounding. In entering the guilty plea, Concha admitted that on Jan. 15, 2013, he assaulted a woman by striking her on the face and head resulting in permanent damage to her left eye. He also admitted assaulting a man by striking, beating and wounding the man’s face and head.
This case was investigated by Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Police Department. Assistant U.S. Attorneys Kristopher N. Houghton and Niki Tapia-Brito prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Tahlequah Man Ordered to Return $119,000.00 to Social SecurityRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that the United States District Court, after a non-jury trial, has entered judgment against JOHN DEFELICE of Tahlequah, Oklahoma, for $119,218.00, which represents a sum of Social Security benefits paid to Janet DeFelice, his mother, who went missing in northern California and has never been found. On June 1, 2007, Mrs.Defelice wandered off from her son’s home in Templeton, California, in the middle of the night. After a concerted search by her family and authorities, and the passing of five years, a certificate of death was issued for her by the State of California on June 1, 2012. During those five years the money was paid into an account jointly owned by Janet DeFelice and her son, John DeFelice, by the Social Security Administration. The Social Security Administration had not been notified that Mrs.DeFelice’s whereabouts were unknown.
This investigation that lead to this civil prosecution is an example of the work that various federal agencies, such as the Social Security Administration, do to prevent financial loss to the taxpayer through federal programs. Federal investigative agencies present the results of their efforts to the Department of Justice, usually through the appropriate United States Attorney’s office, to be prosecuted as Affirmative Civil Enforcement (ACE) matters. This case was a result of that effort to prevent financial loss and was prosecuted by the ACE Unit of the United States Attorney’s Office for the Eastern District of Oklahoma.
United States Attorney Mark Green stated: “It is Important that actions like this be brought and tried to the Court, if necessary, so that money mistakenly paid out from government programs such as Social Security is recovered.”
This case was a coordinated effort by the United States Attorney’s Office for the Eastern District of Oklahoma and the Office of the Inspector General of the United States Social Security Administration. The lawsuit is captioned United States of America v. John DeFelice, Case No. CIV-14-415-RAW (E.D. Okla.). Assistant United States Attorney Robert Gay Guthrie represented the United States.
Stockton Man Sentenced for Fraud in Auto Engine ScamRead the Press Release
SACRAMENTO, Calif. —John Steven Keplinger, 56, of Stockton, was sentenced today by United States District Judge Kimberly J. Mueller to two years and three months in prison and a $100,000 fine for mail fraud in connection with an auto engine scam, United States Attorney Benjamin B. Wagner announced.
On September 23, 2015, Keplinger pleaded guilty. The total estimated loss from the fraud is up to $470,000. A hearing for the final determination of restitution for the fraud victims is scheduled for March 30, 2016.
According to court documents, from 2010 to 2014, Keplinger carried out a fraud scheme by purporting to sell used auto engines from Japan, but failing to provide customers what he promised. Over 300 paying customers across 44 states and the District of Columbia were defrauded. Keplinger used three companies and websites to carry out the fraud scheme: Rising Sun Engines Inc. (www.risingsunengines.com), Shop 4 Engines LP (shop‑4‑engines.com), and Your Parts Manager (yourpartsmanager.com). Most of the time, Keplinger’s customers paid by check sent via UPS. After Keplinger accepted payment, he either sent no engine at all or sent the customer a defective engine obtained in the United States, often from a junkyard. United States Customs and Border Protection records indicate that Keplinger had stopped importing engines in 2007.
In August 2013, Keplinger faced legal action from the San Joaquin County District Attorney’s Office and he was ordered to stop conducting an auto parts sales business of any kind and to cease using any website to conduct such a business. Instead, Keplinger continued the fraud scheme well into 2014.
“John Keplinger defrauded hundreds of financially challenged individuals who struggled to afford engines to keep their cars running. He leveraged the Internet to victimize people across the United States,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “We thank the U.S. Postal Inspection Service for their partnership in this investigation and both the San Joaquin County District Attorney’s Office and California Bureau of Automotive Repair for their assistance with the investigation.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for fraud schemes committed against the public.
This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service, with substantial assistance from the San Joaquin County District Attorney’s Office and the California Bureau of Automotive Repair. Assistant United States Attorney Christopher S. Hales prosecuted the case.
Statement from Head of the Civil Rights Division Vanita Gupta Regarding Ferguson, Missouri, City Council Vote on Proposed Consent DecreeRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, released the following statement regarding the Ferguson, Missouri, City Council vote on the proposed consent decree with the Department of Justice:
“The Ferguson City Council has attempted to unilaterally amend the negotiated agreement. Their vote to do so creates an unnecessary delay in the essential work to bring constitutional policing to the city, and marks an unfortunate outcome for concerned community members and Ferguson police officers. Both parties engaged in thoughtful negotiations over many months to create an agreement with cost-effective remedies that would ensure Ferguson brings policing and court practices in line with the Constitution. The agreement already negotiated by the department and the city will provide Ferguson residents a police department and municipal court that fully respects civil rights and operates free from racial discrimination.
“The Department of Justice will take the necessary legal actions to ensure that Ferguson’s policing and court practices comply with the Constitution and relevant federal laws.”
St. Croix Man Sentenced for Murder and Related Firearm OffensesRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on February 9, 2016, sentenced Elvin Wrensford, 30, to 35 years in federal prison for federal firearm offenses, United States Attorney Ronald W. Sharpe announced. Additionally, the court imposed a sentence of life in prison without parole for first degree murder and 20 years in prison on a local firearms offense to be served after the federal sentences. Chief Judge Lewis also sentenced Wrensford to multiple terms of supervised release, pay a fine of $25,000.00, pay $6,360.00 in restitution, and pay a special assessment of $225.
After a two-week trial, on March 24, 2015, a federal jury on St. Croix convicted Wrensford and co-defendant, Craig Muller. Evidence presented at trial established that during the afternoon on May 10, 2012, the defendants argued with a male individual at Ben’s Car Wash in Estate Princesse. The defendants left and later returned to the car wash in a red truck. A second male, Gilbert Hendricks, Jr., walked out of the car wash, observed the defendants in the truck and began running. The defendants chased Hendricks while in the truck and Wrensford began firing at him. Hendricks fell to the ground and Wrensford continued to shoot at him. Hendricks died as a result of the gunshot wounds. The government established the identity of the shooter through eyewitness testimony and DNA evidence. Muller’s sentencing is set for February 11, 2016.
This case was investigated by the Virgin Islands Police Department. It was prosecuted by Assistant United States Attorneys Alphonso Andrews, Jr., and Rhonda Williams-Henry.
Sioux Falls Man Sentenced for Use of Interstate Facilities to Transmit Information About a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Use of Interstate Facilities to Transmit Information About a Minor was sentenced on February 8, 2016, by U.S. District Court Judge Karen E. Schreier.
Scott Robert Larson, age 30, was sentenced to 24 months in custody, 5 years of supervised release, and $100 to the Crime Victims Assistance Fund.
Larson was indicted for the charge by a federal grand jury on June 2, 2015. He pled guilty on November 18, 2015.
Larson responded to an advertisement on the Internet website of Backpage.com, which was part of a sting operation. Using his cell phone to send text messages, Larson agreed to meet at a location in Sioux Falls to have sex with a fictitious 15 year-old girl. Law enforcement officers arrested Larson after he left the scene. They found the cell phone used for the text messages, as well as cash and marijuana in his car.
This case was investigated by the South Dakota Internet Crimes Against Children (ICAC) task force. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Larson was ordered to self-surrender on February 29, 2016.
Sex Offender Sentenced for Failing to RegisterRead the Press Release
BOISE - Martin Daniel Atkins, 32, of Boise, Idaho, was sentenced today in United States District Court to 36 months in prison followed by five years of supervised release, for failing to register as a sex offender, and violating the terms of his supervised release, U.S. Attorney Wendy J. Olson announced. Atkins pleaded guilty to the charges on October 6, 2015.
According to the plea agreement, Atkins was convicted in May 2005, of sexual abuse of a minor in U.S. District Court. As a result of the conviction, Atkins was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). Atkins was previously convicted of failing to register as a sex offender in Canyon County, Idaho in 2010, and in U.S. District Court in 2011 and 2013. After release from the Federal Bureau of Prisons in May of 2015, Atkins registered as a sex offender with the State of Idaho, listing his residence as a half-way house in Boise. He was also subject to federal supervised release. On June 5, 2015, Atkins moved to the Duck Valley Indian Reservation in Nevada. Upon moving from Boise, Atkins did not update his State of Idaho sex offender registration, nor did he notify his probation officer of his whereabouts. Atkins was arrested on July 2, 2015, by officers with the U.S. Department of the Interior, Bureau of Indian Affairs.
The case was investigated by the United States Marshals Service (USMS), the United States Probation Office, and the U.S. Department of the Interior, Bureau of Indian Affairs (BIA).
Martin Daniel Atkins was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Rosebud Man Sentenced to 18 Months for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 8, 2016, by U.S. District Judge Roberto A. Lange.
Bradley Makes Room For Them, age 31, was sentenced to 18 months in custody, 5 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Makes Room For Them was indicted for Failure to Register as a Sex Offender by a federal grand jury on August 11, 2015. He pled guilty on December 22, 2015.
In September 2003, Makes Room For Them pled guilty to Aggravated Sexual Abuse. Between May 12, 2015, and July 17, 2015, Makes Room For Them, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Todd County.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie Sanderson prosecuted the case.
Makes Room For Them was immediately turned over to the custody of the U.S. Marshals Service.
Ringleader Pleads Guilty in Mid-Atlantic Oxycodone Trafficking CaseRead the Press Release
ALEXANDRIA, Va. – William Delonta Granberry, 37, of Hughesville, Maryland, pleaded guilty today to conspiracy to distribute oxycodone.
The plea follows a multi-year, multi-jurisdictional, and multi-agency Organized Crime Drug Enforcement Task Force (OCDETF) investigation designated “Operation Circuit Breaker.” Operation Circuit Breaker focuses upon the illegal procurement and sale of prescription pain medication across the mid-Atlantic region. Five other defendants are currently facing charges and eight defendants have pleaded guilty as part of the investigation to date.
In a statement of facts filed with the plea agreement, Granberry acknowledged that beginning in or around 2010, and continuing until December 2015, he fabricated prescriptions of oxycodone utilizing legitimate prescription paper delivered to his residence. He also admitted to fabricating the prescribing information of legitimate physicians obtained from the website DEANumber.com, and using primarily fictitious patient names. Granberry then recruited a network of co-conspirators who used individuals called “runners” to fill these fraudulent prescriptions at various pharmacies. After acquiring the fraudulently obtained oxycodone from his co-conspirators, Granberry distributed the oxycodone to other individuals for a high profit. Since approximately 2010, the criminal organization has fraudulently obtained approximately 65,000 oxycodone pills.
Granberry was charged by criminal complaint on Dec. 9, 2015, and faces a maximum penalty of 20 years in prison when sentenced on May 20, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendant will be determined by the court based upon the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorneys Paul A. Hayden and Anna G. Kaminska, as well as Assistant U.S. Attorney Gene Rossi are prosecuting the case.
The U.S. Attorney thanked the Department of Defense–Office of the Inspector General, Loudoun County Sheriff’s Office, Charles County Sheriff’s Office, Calvert County Sheriff’s Office, Washington, D.C. Metropolitan Police Department, Virginia State Police, and the Pennsylvania Attorney General’s Office for their assistance in this matter.
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 Nos. 1:14-cr-284, 1:14-cr-340, 1:14-cr-389, 1:15-cr-29, 1:16-cr-16, 1:16-cr-26, and 1:16-cr-28.
Rigby Man Pleads Guilty to Bankruptcy FraudRead the Press Release
POCATELLO – Kim Thompson, 49, of Rigby, Idaho, pleaded guilty today in United States District Court to bankruptcy fraud, U.S. Attorney Wendy J. Olson announced. Thompson was charged by the U.S. Attorney’s Office on January 15, 2016.
According to the plea agreement, on October 14, 2010, defendant Kim Thompson filed bankruptcy in the United States Bankruptcy Court for the District of Idaho. As part of those proceedings, Thompson testified under oath at the meeting of creditors that he had no aircraft or accessories. Thompson subsequently admitted that he had purchased a Piper Arrow aircraft in 2009. He admitted that he lied under oath about his ownership of the plane and stated that he never transferred the registration or ownership documents into his name in order to conceal ownership of the airplane from the bankruptcy trustee. He further stated that he hoped to use the plane in a business after completion of the bankruptcy and was afraid he would lose the plane if he disclosed it to the trustee.
The charge of bankruptcy fraud is punishable by up to five years in prison, up to three years of supervised release, and a fine of up to $250,000.
Thompson is scheduled to be sentenced on May 20, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Internal Revenue Service.
Private Contractor Pleads Guilty to Bribing Former U.S. Postal Service Contracting OfficialRead the Press Release
A private contractor pleaded guilty today to paying bribes to a U.S. Postal Service (USPS) contracting official in order to receive contracts to deliver the mail.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and USPS Inspector General David C. Williams made the announcement.
Barbara Murphy, 52, of Rocky Mount, North Carolina, pleaded guilty before U.S. District Judge George Jarrod Hazel of the District of Maryland, who set sentencing for June 13, 2016.
According to a factual stipulation filed with the court, Murphy was the sole owner of ER&R Transportation and MC&G Trucking LLC, which she used to bid for and perform on transportation contracts with USPS. Murphy admitted that from January 2011 to July 2012, she bribed Gregory Cooper, a former USPS contracting officer representative. These bribes included cash paid directly into Cooper’s bank accounts, automobile loan payments, college tuition for Cooper’s daughter, five cell phone bill payments, an airline ticket and fitness equipment, Murphy admitted.
According to the plea agreement, Murphy gave all of these benefits in exchange for Cooper’s favorable treatment of her companies when contracting opportunities with the USPS arose, in violation of Cooper’s lawful duty to the USPS. Specifically, Cooper recommended to his superiors that 10 USPS contracts on which Murphy bid during the relevant time period be awarded to Murphy’s companies, she admitted. Additionally, Murphy admitted that Cooper provided her with advice on how to address specific issues that arose from her contract performance and drafted documents that Murphy provided to the USPS.
On Nov. 15, 2015, Judge Hazel sentenced Cooper to 15 months in prison for bribery.
The USPS Office of the Inspector General investigated the case. Trial Attorneys Mark Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Salem of the District of Maryland are prosecuting the case.
Private Contractor Pleads Guilty to Bribing Former U.S. Postal Service Contracting OfficialRead the Press Release
Greenbelt, Maryland – Barbara Murphy, 52, of Rocky Mount, North Carolina, pleaded guilty today to bribing a former contracting officer with the U.S. Postal Service in exchange for favorable treatment in connection with the awarding of contracts to deliver the mail.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to a factual stipulation filed with the court, Murphy was the sole owner of ER&R Transportation and MC&G Trucking LLC, which she used to bid for and perform on transportation contracts with USPS. Murphy admitted that from January 2011 to July 2012, she bribed Gregory Cooper, a former USPS contracting officer representative. These bribes included cash paid directly into Cooper’s bank accounts, automobile loan payments, college tuition for Cooper’s daughter, five cell phone bill payments, an airline ticket and fitness equipment, Murphy admitted.
Murphy admitted that she gave all of these benefits in exchange for Cooper’s favorable treatment of her companies when contracting opportunities with the USPS arose, in violation of Cooper’s lawful duty to the USPS. Specifically, Cooper recommended to his superiors that 10 USPS contracts on which Murphy bid during the relevant time period be awarded to Murphy’s companies, she admitted. Additionally, Murphy admitted that Cooper provided her with advice on how to address specific issues that arose from her contract performance and drafted documents that Murphy provided to the USPS.
Murphy faces a maximum sentence of 15 years in prison for bribing a public official in order to influence the official’s performance of his lawful duties. U.S. District Judge George J. Hazel has scheduled sentencing for June 13, 2016.
On November 15, 2015, Gregory Cooper, 60, of Glenn Dale, Maryland, was sentenced to 15 months in prison for receiving bribes in connection with the awarding of mail delivery contracts. Judge Hazel also entered an order that Cooper forfeit $25,931.76.
U.S. Attorney Rosenstein and Assistant Attorney General Caldwell commended the U.S. Postal Service Office of the Inspector General for its work in the investigation. The case is being prosecuted by Assistant U.S. Attorney David I. Salem and Trial Attorneys Mark Cipolletti and Monique Abrishami of the Criminal Division’s Public Integrity Section.
Philadelphia, PA man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Charles Wade, III, 28, of Philadelphia, Pennsylvania was sentenced today to twenty months and nine days in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Wade sold heroin near a Harrison County, West Virginia middle school. He pled guilty in October 2015 to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.
Assistant U.S. Attorneys Zelda Wesley and Stephen Warner along with former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Philadelphia Woman Charged with Stealing Dead Father's BenefitsRead the Press Release
PHILADELPHIA - Michelle Ford, 61, of Philadelphia, Pennsylvania, was charged today by Information with one count of theft of government funds and one count of theft from an employee pension plan, announced United States Attorney Zane David Memeger. According to the Information, the defendant received Social Security and pension benefits intended for her father, after her father’s death in February 2011 until her fraud was discovered in September 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $44,186.
If convicted, the defendant faces a maximum sentence of 15 years in prison, up to three years of supervised release, restitution to the government of $44,186, a possible fine, and a $200 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General, and the Department of Labor Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Papillion Woman Sentenced for EmbezzlementRead the Press Release
United States Attorney Deborah R. Gilg announced that Chief United States District Judge Laurie Smith Camp sentenced Amy Fisher, 43, of Papillion, Nebraska, to 18 months imprisonment to be followed by three years of supervised release. In April 2014, a federal grand jury returned a criminal indictment charging Fisher with embezzlement. On June 22, 2015, Fisher pleaded guilty to the charge.
The investigation demonstrated that Fisher was a Financial Services Officer with the Bellevue branch of the Bank of the West. Fisher performed her embezzlement by making unauthorized withdrawals from various accounts of customers. Fisher typically made the unauthorized withdrawals by closing out customer certificates of deposits, and then reopening new certificates of deposits for what appeared to be the same amount. However, Fisher made false entries within the bank’s computer systems and generated false documents to be provided to the customers to mask the fact that she had withdrawn and pocketed a portion of the customer’s certificate of deposit. Fisher engaged in similar conduct relative to customers’ home equity line of credit accounts as well as checking and savings accounts.
Judge Smith Camp found that Fisher engaged in 55 such fraudulent transactions affecting 17 different customers all of whom were between the ages of 82 and 97 years old. Judge Smith Camp ordered Fisher to pay restitution to the Bank of the West in the amount of $158,941.56. The Bank of the West had previously reimbursed all of its customer accounts for Fisher’s conduct.
This case was investigated by the Federal Bureau of Investigation.
Owner of Cancer Treatment Clinic Convicted of Providing Fraudulent Medical Treatments to PatientsRead the Press Release
A jury sitting in the Northern District of Oklahoma convicted a former owner of Lase Med Inc., a purported cancer treatment clinic, today of committing a fraudulent scheme claiming to cure patients’ cancer, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Following a 15-day trial before U.S. District Judge James H. Payne, a jury found Antonella Carpenter, 71, of Tulsa, Oklahoma, guilty on 29 of the 41 counts alleged in a superseding indictment and were unable to come to a unanimous decision on three counts of the superseding indictment.
Carpenter was charged with five counts of inducing persons to travel in interstate commerce in an effort to defraud them of at least $5,000; 34 counts of using interstate wire communications to defraud patients; and two counts of using the United States mails in furtherance of a fraudulent scheme. Carpenter was indicted by a grand jury in August 2014 and a superseding indictment was filed on Oct. 15, 2014.
“The defendant preyed upon and lured her patients to her purported clinic in order to defraud them of money,” said U.S. Attorney Williams. “Today’s conviction demonstrates the U.S. Attorney’s Office’s commitment to ensuring justice is served for victims and their family members. Together with the FDA we are protecting individuals who were victimized by this fraudulent medical scheme. This should be a deterrent and warning to those who intend to defraud and take advantage of peoples’ situations.”
According to documents filed in this case and evidence presented at trial:
From November 2006 to December 2012, Carpenter, a physicist and not a medical doctor, orchestrated a scheme to obtain money from cancer patients by means of false and fraudulent representations. Carpenter made materially false claims to patients about her treatment method called “Light Induced Enhanced Selective Hyperthemia” (LIESH), including that the treatments were 100 percent effective and there would be no negative side effects.
In addition, Carpenter claimed to cure various kinds of cancers, when in fact, she would inject a patient’s tumor with a mixture consisting of saline solution and food coloring or walnut hull extract. She would then heat the injected area with a laser. Carpenter operated a clinic in Broken Arrow and Owasso, Oklahoma.
At the time of sentencing, Carpenter faces up to 10 years in prison for inducing persons to travel in interstate commerce in an effort to defraud them of at least $5,000; and up to 20 years in prison on the remaining charges. Also as part of her sentence, a criminal forfeiture money judgment will be entered against the defendant in an amount of approximately $1,102,160 representing proceeds obtained as a result of her fraudulent scheme.
U.S. Attorney Williams credited special agents of the U.S. Food and Drug Administration-Office of Criminal Investigations and Assistant U.S. Attorneys Kevin C. Leitch, Clemon Ashley and Catherine Depew with the prosecution.
Owner of Cancer Treatment Clinic Convicted of Providing Fraudulent Medical Treatments to PatientsRead the Press Release
TULSA, Okla.–A jury sitting in the Northern District of Oklahoma convicted Antonella Carpenter, former owner of Lase Med Inc., a purported cancer treatment clinic, today of committing a fraudulent scheme claiming to cure patients’ cancer, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Following a 15-day trial before U.S. District Judge James H. Payne, a jury found Carpenter, 71, of Tulsa, guilty on 29 of the 41 counts alleged in a Superseding Indictment, and were unable to come to a unanimous decision on 3 counts of the Superseding Indictment. Carpenter was charged with five counts of inducing persons to travel in interstate commerce in an effort to defraud them of at least $5,000; 34 counts of using interstate wire communications to defraud patients; and two counts of using the United States mails in furtherance of a fraudulent scheme. Carpenter was indicted by a grand jury in August 2014, and a Superseding Indictment was filed on October 15, 2014.
“The defendant preyed upon and lured her patients to her purported clinic in order to defraud them of money. Today’s conviction demonstrates the U.S. Attorney’s Office’s commitment to ensuring justice is served for victims and their family members,” said U.S. Attorney Williams. “Together with the FDA we are protecting individuals who were victimized by this fraudulent medical scheme. This should be a deterrent and warning to those who intend to defraud and take advantage of peoples’ situations.”
According to documents filed in this case and evidence presented at trial:
From November 2006 to December 2012, Carpenter, a physicist and not a medical doctor, orchestrated a scheme to obtain money from cancer patients by means of false and fraudulent representations. Carpenter made materially false claims to patients about her treatment method called “Light Induced Enhanced Selective Hyperthemia or “LIESH’, including that the treatments were 100% effective and there would be no negative side effects.
In addition, Carpenter claimed to cure various kinds of cancers, when in fact, she would inject a patient’s tumor with a mixture consisting of saline solution and food coloring or walnut hull extract. She would then heat the injected area with a laser. Carpenter operated a clinic in Broken Arrow and Owasso, Oklahoma.
At the time of sentencing, Carpenter faces up to 10 years in prison for inducing persons to travel in interstate commerce in an effort to defraud them of at least $5,000; and up to 20 years in prison on the remaining charges. Also as part of her sentence, a criminal forfeiture money judgment will be entered against the defendant in an amount of approximately $1,102,160 representing proceeds obtained as a result of her fraudulent scheme.
United States Attorney Williams credited special agents of the U.S. Food and Drug Administration-Office of Criminal Investigations and Assistant U.S. Attorneys Kevin C. Leitch, Clemon Ashley, and Catherine Depew with the prosecution.
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New York Man Sentenced to over Five Years in Prison for Taking Part in Drug ConspiracyRead the Press Release
WASHINGTON – Edwin A. Henriquez, 36, formerly of Hempstead, N.Y., has been sentenced to a prison term of five years and eight months on a federal charge stemming from his participation in a drug trafficking ring, U.S. Attorney Channing D. Phillips announced today.
Henriquez pled guilty on Feb. 19, 2008, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine. Following his plea, he was released on personal recognizance with a number of conditions, including that he maintain contact with authorities. However, in June 2008, law enforcement was no longer aware of his whereabouts. In July 2008, a warrant was issued for Henriquez’s arrest. He was apprehended on July 1, 2015 in the Dominican Republic and extradited to the United States.
Henriquez was sentenced on Feb. 9, 2016 by the Honorable John D. Bates. Upon completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, in January 2008, Henriquez traveled from New York to Atlanta, Ga., to purchase two kilograms of cocaine. He paid a total of $40,000 for the cocaine, including $30,000 from a co-conspirator and $10,000 of his own money. He then packaged the drugs in a hidden compartment inside of a VCR and purchased a train ticket to return to and deliver the cocaine to New York. On Jan. 17, 2008, a detective with the Amtrak Police Department was on duty and noticed that Henriquez made the train ticket reservation from Atlanta to New York in a suspicious manner. He provided the defendant’s name and train car number to the Metropolitan Police Department (MPD).
On Jan. 18, 2008, while the train was at Union Station in Washington, D.C., MPD officers went to Henriquez’s sleeper car. After a brief conversation, Henriquez gave the officers permission to search the sleeper car and his bag. The officers searched the bag and discovered the cocaine, leading to Henriquez’s arrest.
Following his disappearance from the United States, Henriquez was tracked by the U.S. Drug Enforcement Administration to the Dominican Republic. The Department of Justice’s Office of International Affairs assisted in securing his extradition to the United States, and he was returned to Washington, D.C., by the U.S. Marshals Service.
In announcing the sentence, U.S. Attorney Phillips commended those who investigated the case from the Metropolitan Police Department, the Amtrak Police Department, the New York and Washington, D.C. offices of the Drug Enforcement Administration, and the U.S. Marshals Service. He expressed appreciation for the assistance provided by the Justice Department’s Office of International Affairs as well as the government of the Dominican Republic. Finally, he praised the work of Assistant U.S. Attorney Angela S. George, of the office’s Violent Crime and Narcotics Trafficking Section, who investigated and prosecuted the case.
Muldrow Man Sentenced to 13 Months for Use of Telephone to Make Bomb ThreatRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ERIC WAYNE LOCKHART, age 30, of Muldrow, Oklahoma, was sentenced to 13 months imprisonment, followed by 3 years of supervised release for USE OF TELEPHONE TO MAKE BOMB THREAT, in violation of Title 18, United States Code, Section 844(e).
The Indictment alleged that on or about June 15, 2015, in the Eastern District of Oklahoma, the Defendant, ERIC WAYNE LOCKHART, did, through use of a telephone, make a threat to kill, injure and intimidate an individual by means of an explosive, in and affecting interstate commerce.
The charges are a result from an investigation by the Sequoyah County Sheriff’s Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant pled guilty in October, 2015.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Christopher Wilson represented the United States.
McAlester Man Sentenced to 60 Months for Manufacturing MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JEREMY DAVID STARR, age 39, of McAlester, Oklahoma, was sentenced to 60 months imprisonment, followed by 4 years of supervised release for MANUFACTURE OF METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment alleged that on or about June 21, 2015, in the Eastern District of Oklahoma, the defendant, JEREMY DAVID STARR, did knowingly and intentionally manufacture 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the McAlester Police Department and the Pittsburg County Sheriff’s Department. The defendant pled guilty in October, 2015.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Christopher Wilson represented the United States.
Manhattan U.S. Attorney Announces Criminal Charges Against Owner of $161 Million Fraudulent Internet Payday Lending EnterpriseRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System (“Federal Reserve”), announced today the unsealing of an indictment charging RICHARD MOSELEY, SR. with wire fraud and violating the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and the Truth in Lending Act (“TILA”) for operating a payday lending enterprise that systematically evaded state usury laws in order to charge illegally high interest rates, and for issuing payday loans to consumers who never even sought them. MOSELEY was arrested this morning and will be presented later today in federal court in Kansas City, Missouri. The case has been assigned to U.S. District Judge Edgardo Ramos.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, Richard Moseley, Sr., extended predatory loans to over six hundred thousand of the most financially vulnerable Americans, charging illegally high interest rates to people struggling just to meet their basic living expenses. Worse, Moseley allegedly also extended loans to many who never even sought them, withdrawing exorbitant ‘financing fees’ from their bank accounts for loans the borrowers never asked for or authorized. For years, Moseley allegedly hid behind sham offshore corporations and operated through the Internet to try to avoid criminal liability.”
FBI Assistant Director-in-Charge Rodriguez stated: “This case is an example of predatory lending at its finest. Claiming more than half a million victims, Moseley, through his enterprise, deceived not only those who unwittingly bought into this sham agreement, but others who never even authorized the origination of the loans they received. Despite their best efforts, innocent people throughout the country were deprived of the opportunity to regain their financial well -being as a result of this conspiracy. Today, we issue a stop payment on Moseley’s fraudulent scheme.”
Federal Reserve Inspector General Bialek stated: “Today’s indictment sends a clear message that those who engage in fraud to obstruct regulators from carrying out their supervisory responsibilities and deceive unsuspecting consumers will be held accountable for their actions.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:
Between approximately 2004 and September 2014, MOSELEY owned and operated a group of payday lending businesses (the “Hydra Lenders”) that issued and serviced small, short-term, unsecured loans, known as “payday loans,” through the Internet to customers across the United States.
For nearly a decade, MOSELEY systematically exploited more than 620,000 financially struggling working people throughout the United States, many of whom were having trouble paying for basic living expenses. MOSELEY, through the Hydra Lenders, targeted and extended loans to these individuals at illegally high interest rates of more than 700%, using deceptive and misleading communications and contracts and in violation of the usury laws of numerous states that were designed to protect residents from such loan sharking and abusive conduct.
In furtherance of the scheme, the Hydra Lenders’ loan agreements materially understated the amount the payday loan would cost, the annual percentage rate of the loan, and the total of payments that would be taken from the borrower’s bank account. The loan agreements suggested, for example, that the borrower would pay $30 in interest for $100 borrowed. In truth and in fact, however, MOSELEY structured the repayment schedule of the loans such that, on the borrower’s payday, the Hydra Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Hydra Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. Under MOSELEY’s control and oversight, the Hydra Lenders proceeded automatically to withdraw such “finance charges” payday after payday, applying none of the money toward repayment of principal. Indeed, under the terms of the loan agreement, the Hydra Lenders withdrew finance charges from their customers’ accounts unless and until consumers took affirmative action to stop the automatic renewal of the loan.
Through the Hydra Lenders, MOSELEY also extended numerous payday “loans” to victims across the country who did not even want the loans or authorize the issuance of the loans, but instead had merely submitted their personal and bank account information in order to inquire about the possibility of obtaining a payday loan. MOSELEY then automatically withdrew the Hydra Lenders’ usurious “financing fees” directly from the financially struggling victims’ bank accounts on a bi-weekly basis. Although hundreds of victims, over a period of years, lodged complaints that they had never approved or even been aware of the issuance of the loans, the Hydra Lenders, at MOSELEY’s direction, continued to issue loans to consumers without confirming that the consumers in fact wanted the loans that they received or had reviewed and approved the loan terms.
Throughout their existence, the Hydra Lenders were the subject of complaints from customers across the country, numerous state regulators, and consumer protection groups, about the Hydra Lenders’ deceptive and misleading practices in issuing usurious and fraudulent loans. Beginning in approximately 2006, in an attempt to avoid civil and criminal liability for his conduct, and to enable the Hydra Lenders to extend usurious loans contrary to state laws, MOSELEY created the sham appearance that the Hydra Lenders were located overseas. MOSELEY nominally incorporated the Hydra Lenders first in Nevis, and later in New Zealand, and claimed that the Hydra Lenders could not be sued or subject to state enforcement actions because they were beyond the jurisdiction of every state in the United States. In truth and in fact, the entirety of MOSELEY’s lending business, including all bank accounts from which loans were originated, all communications with consumers, and all employees, were located at MOSELEY’s corporate office in Kansas City, Missouri. The Hydra Lenders’ purported “offshore” operation consisted of little more than a service that forwarded mail from addresses in Nevis or New Zealand to the Kansas City, Missouri, office.
In furtherance of the scheme, MOSELEY falsely told his attorneys that the Hydra Lenders maintained physical offices and employees in Nevis and New Zealand and that the decision whether to extend loans to particular consumers was made by employees of the Hydra Lenders in Nevis and New Zealand. As MOSELEY knew, at no time did the Hydra Lenders have any employees involved in the lending business in Nevis or New Zealand, and at all times the decision whether to underwrite loans was made by employees under MOSELEY’s direction in Kansas City, Missouri. To defeat state complaints and inquiries, MOSELEY directed his attorneys at an outside law firm to submit correspondence to state Attorneys General which (unbeknownst to MOSELEY’s attorneys) falsely stated that the Hydra Lenders originated loans “exclusively” from their offices overseas and had no physical presence anywhere in the United States. In reliance on this materially false and misleading correspondence, many state Attorneys General and regulators closed their investigations on the apparent basis that they lacked jurisdiction over the Hydra Lenders and that the Hydra Lenders had no presence or operations in the United States.
From approximately November 2006 through approximately August 2014, the Hydra Lenders generated approximately $161 million in revenues. MOSELEY spent millions of dollars he obtained from victims on, among other things, vacation homes in Colorado and Mexico, luxury automobiles, and country club membership dues.
* * *
MOSELEY, 68, of Kansas City, Missouri, is charged with one count of conspiracy to collect unlawful debts in violation of RICO, one count of collecting unlawful debts in violation of RICO, one count of conspiracy to commit wire fraud, and one count of wire fraud, each of which carries a maximum term of 20 years in prison; and one count of violating TILA, which carries a maximum term of one year in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and the Federal Reserve Office of the Inspector General. Mr. Bharara also thanked the Consumer Financial Protection Bureau (the “CFPB”), which referred the case, for its assistance in the investigation. In a civil enforcement action filed by the CFPB against MOSELEY in the United States District Court for the Western District of Missouri, proceeds that MOSELEY obtained as a result of his fraudulent conduct have been restrained.
Mr. Bharara noted that the investigation remains ongoing.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Edward A. Imperatore is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Charges Against Owner of, and Attorney for, $2 Billion Unlawful Internet Payday Lending EnterpriseRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Karl Stiften, Special Agent-in-Charge of the St. Louis Field Office of the Internal Revenue Service (“IRS”), and Diego Rodriguez, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a criminal indictment charging SCOTT TUCKER and TIMOTHY MUIR with violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and the Truth in Lending Act (“TILA”) for operating a nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 700% on loans. Both defendants were arrested in Kansas City, Kansas, earlier today and will be presented in the United States District Court for the District of Kansas. The case has been assigned to U.S. District Judge Katherine B. Forrest.
Mr. Bharara also announced a non-prosecution agreement (the “Agreement”) with two tribal corporations controlled by the Miami Tribe of Oklahoma, a Native American tribe. As part of the Agreement, the tribal corporations agree to forfeit $48 million in criminal proceeds from TUCKER’s payday lending enterprise that are currently held in tribal bank accounts. The Agreement also acknowledges, among other things, that a tribal representative filed false factual declarations in multiple state court actions. TUCKER and MUIR used these false declarations to defeat numerous state enforcement actions seeking to enjoin the operation of their unlawful business.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday people by charging illegally high interest rates – as much as 700 percent. Tucker and Muir allegedly sought to evade liability by claiming that this $2 billion business was actually owned and operated by Native American tribes. But thanks to the investigative work of the FBI and IRS, this deceptive and predatory scheme to take advantage of the most financially vulnerable in our communities has been exposed for what it is – a criminal scheme.”
IRS Special Agent-in-Charge Karl Stiften stated: “These defendants allegedly used deceptive and misleading lending practices to prey on millions of hard working individuals seeking payday loans. In reality, these loan customers were taken advantage of and charged illegally high interest rates.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “As alleged, Tucker and Muir deceptively preyed on more than 4.5 million working people, including those in New York, to enter into payday loans with interest rates ranging from 400 to 700 percent. Not only did their business model violate the Truth-in Lending Act, established to protect consumers from such loans, but they also tried to hide from prosecution by creating a fraudulent association with Native American Tribes to receive sovereign immunity. This scheme, like so many others who swindle innocent victims, only ends with an arrest by the FBI.”
As alleged in the Indictment[1] and described in the Agreement:
From at least 1997 until 2013, TUCKER engaged in the business of making small, short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” through the Internet. TUCKER’s lending enterprise, which had approximately 600 employees based in Overland Park, Kansas, did business as Ameriloan, f/k/a Cash Advance; One Click Cash, f/k/a Preferred Cash Loans; United Cash Loans; US FastCash; 500 FastCash; Advantage Cash Services; and Star Cash Processing (the “Tucker Payday Lenders”). TUCKER, working with MUIR, an attorney for TUCKER’s payday lending businesses since 2006, routinely charged interest rates of 400% or 500%, and sometimes higher than 700%, using deceptive and misleading “disclosures” about the true cost of the loans. These loans were issued to more than 4.5 million working people throughout the United States, including hundreds of thousands of people in New York, many of whom were struggling to pay basic living expenses. Many of these loans were issued in states, including New York, with laws that expressly forbid lending at the exorbitant interest rates TUCKER charged.
The False Truth-in-Lending Act (“TILA”) Disclosures
TILA is a federal statute intended to ensure that credit terms are disclosed to consumers in a clear and meaningful way, both to protect customers against inaccurate and unfair credit practices, and to enable them to compare credit terms readily and knowledgeably. Among other things, TILA and its implementing regulations require lenders, including payday lenders like the Tucker Payday Lenders, to accurately, clearly, and conspicuously disclose, before any credit is extended, the finance charge, the annual percentage rate, and the total of payments that reflect the legal obligation between the parties to the loan.
The Tucker Payday Lenders purported to inform prospective borrowers, in clear and simple terms, as required by TILA, of the cost of the loan (the “TILA Box”). For example, for a loan of $500, the TILA Box provided that the “finance charge – meaning the “dollar amount the credit will cost you” – would be $150, and that the “total of payments” would be $650. Thus, in substance, the TILA Box stated that a $500 loan to the customer would cost $650 to repay. While the amounts set forth in the Tucker Payday Lenders’ TILA Box varied according to the terms of particular customers’ loans, they reflected, in substance, that the borrower would pay $30 in interest for every $100 borrowed.
In truth and in fact, through at least 2012, TUCKER and MUIR structured the repayment schedule of the loans such that, on the borrower’s payday, the Tucker Payday Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Tucker Payday Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. With TUCKER’s approval, the Tucker Payday Lenders proceeded automatically to withdraw such “finance charges” payday after payday (typically every two weeks), applying none of the money toward repayment of principal, until at least the fifth payday, when they began to withdraw an additional $50 per payday to apply to the principal balance of the loan. Even then, the Tucker Payday Lenders continued to assess and automatically withdraw the entire interest payment calculated on the remaining principal balance until the entire principal amount was repaid. Accordingly, as TUCKER and MUIR well knew, the Tucker Payday Lenders’ TILA box materially understated the amount the loan would cost, including the total of payments that would be taken from the borrower’s bank account. Specifically, for a customer who borrowed $500, contrary to the TILA Box disclosure stating that the finance charge would be $150, for a total payment of $650 by the borrower, in truth and in fact, and as TUCKER and MUIR well knew, the finance charge was $1,425, for a total payment of $1,925 by the borrower.
The Sham Tribal Ownership of the Business
In response to complaints that the Tucker Payday Lenders were extending abusive loans in violation of their usury laws, several states filed actions to enjoin the Tucker Payday Lenders from operating in their states. To thwart these state actions, TUCKER devised a scheme to claim that his lending businesses were protected by sovereign immunity, a legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes. Beginning in 2003, TUCKER entered into agreements with several Native American tribes (the “Tribes”), including the Miami Tribe of Oklahoma. The purpose of these agreements was to cause the Tribes to claim they owned and operated parts of TUCKER’s payday lending enterprise, so that when states sought to enforce laws prohibiting TUCKER’s loans, TUCKER’s lending businesses would claim to be protected by sovereign immunity. In return, the Tribes received payments from TUCKER, typically one percent of the revenues from the portion of TUCKER’s payday lending business that the Tribes purported to own.
In order to create the illusion that the Tribes owned and controlled TUCKER’s payday lending business, TUCKER and MUIR engaged in a series of deceptions. Among other things:
- MUIR and other counsel for TUCKER prepared false factual declarations from tribal representatives that were submitted to state courts, falsely claiming, among other things, that tribal corporations substantively owned, controlled, and managed the portions of TUCKER’s business targeted by state enforcement actions.
- TUCKER opened bank accounts to operate and receive the profits of the payday lending enterprise, which were nominally held by tribally owned corporations, but which were, in fact, owned and controlled by TUCKER. TUCKER spent over $100 million from these accounts on lavish personal expenses, including race cars, the expenses of a professional auto racing team, a luxury home in Aspen, Colorado, and jewelry.
- Employees of TUCKER making payday loans over the phone told borrowers that they were operating in Oklahoma and Nebraska, where the Tribes were located, when in fact they were operating at TUCKER’s corporate headquarters in Kansas.These employees were even provided daily weather reports for the Tribes’ reservations, so that the employees could convince customers that the employees actually were calling from those locations (when they were in fact in Kansas).
These deceptions succeeded for a time, and several state courts dismissed enforcement actions against TUCKER’s payday lending businesses based on claims that they were protected by sovereign immunity. In reality, the Tribes neither owned nor operated any part of TUCKER’s payday lending business. The Tribes made no payment to TUCKER to acquire the portions of the business they purported to own. TUCKER continued to operate his lending business from a corporate headquarters in Kansas, and TUCKER continued to reap the profits of the payday lending businesses, which generated over $2 billion in revenue from 2003 to 2012 – in substantial part by charging desperate borrowers high interest rates expressly forbidden by state laws.
* * *
TUCKER, 53, of Leawood, Kansas, and MUIR, 44, of Overland Park, Kansas, are each charged with conspiring to collect unlawful debts in violation of RICO, which carries a maximum term of 20 years in prison, three counts of violating RICO’s prohibition on collecting unlawful debts, each of which carries a maximum term of 20 years in prison, and five counts of violating the Truth in Lending Act, each of which carries a maximum term of one year in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences the defendants receive will be determined by the Court. The indictment also seeks to forfeit from TUCKER and MUIR the proceeds and property derived from their alleged crimes, including, among other things, numerous bank accounts, a vacation home in Aspen, Colorado, six Ferrari race cars, four Porsche automobiles, and a Learjet airplane.
Mr. Bharara praised the outstanding investigative work of the IRS and the FBI. Mr. Bharara also thanked the Criminal Investigators at the United States Attorney’s Office, and the Federal Trade Commission, for their assistance with the case.
Mr. Bharara further noted that the investigation remains ongoing.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Niketh Velamoor and Hagan Scotten are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced on Firearm ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE - Nathan Tremblay, 23, of Manchester, New Hampshire, was sentenced today in the United States District Court for the District of New Hampshire for possession of a firearm by a prohibited person in violation of federal law, announced United States Attorney Emily Gray Rice. The Court imposed a term of five months’ imprisonment, followed by five months of community confinement and two years of supervised release.
On August 10, 2014, Tremblay was a passenger in a vehicle that was subject to a traffic stop by the Concord Police Department. The defendant was carrying a Taurus handgun and 34 rounds of Hornady 9 mm ammunition. Concord Police also seized a backpack belonging to the defendant. After searching it with the defendant’s consent, the police found three small plastic baggies containing the controlled substance marijuana. The defendant was a regular user of the controlled substance marijuana at the time he possessed the firearm, and had purchased and re-sold a quarter of a pound of marijuana earlier that day.
“The combination of firearms and illegal drug use presents a particularly dangerous potential harm to the public,” stated United States Attorney Emily Gray Rice. “Our office will continue to combat the threat posed when unlawful users of controlled substances possess firearms.”
This case was investigated by the Concord Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives.
Man Sentenced to 6 1/2 Years for Distribution of Child PornographyRead the Press Release
RICHMOND, Va. – Patrick Lawrence Raines, 41, of Sandston, was sentenced today to 78 months in prison and five years of supervised release for distribution of child pornography. Raines was also ordered to register as a sex offender upon his release from prison.
Raines pleaded guilty on Nov. 10, 2015. According to court documents, Raines was identified after the FBI learned that a computer user was using a cellular device to make child pornography files available to other users for download. Based on this information, the FBI went to the Raines’s residence in Milford to speak with him. Raines agreed to be interviewed, during which he admitted searching for and downloading child pornography from the Internet. He also admitted allowing other users to download files from his computer. At the conclusion of the interview, Raines gave the FBI consent to search his computer and cell phone. A forensic examination of these items revealed the presence of 466 images and 38 videos of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Virginia Assistant Attorney General and Special Assistant U.S. Attorney Thomas K. Johnstone IV 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. 3:15-cr-84.
Man Sentenced for Unlawfully Possessing Destructive DeviceRead the Press Release
Jackson, TN – A West Tennessee man has been sentenced to federal prison for unlawfully possessing an improvised destructive device. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, in May 2015, the Carroll County Sheriff’s Office received a complaint of a domestic disturbance at a residence in Trezevant, Tennessee. Deputies met with the complainant and homeowner, who advised that Milton Edward Strain III, 30, of Trezevant, Tennessee, was in possession of a grenade.
Deputies apprehended the defendant and recovered an improvised destructive device from the back of Strain’s vehicle, along with firearms and ammunition. Bomb technicians with the Jackson Police Department determined that the improvised destructive device contained high explosives. Further analysis by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that the device was an explosive bomb.
On Monday, February 8, 2016, Chief U.S. District Judge J. Daniel Breen sentenced Strain to 18 months in prison.
The investigation was conducted by the ATF; Tennessee Bomb and Arson Unit; Jackson Police Department’s Bomb Squad; and the Carroll County Sheriff’s Office.
The case was prosecuted by the U.S. Attorney’s Office for West Tennessee’s Eastern Division in Jackson.
Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 10, 2016, United States District Judge John M. Gerrard sentenced Juan Miguel Gallegos Loaiza, to 210 months in federal prison, followed by 5 years of supervised release.
Mr. Loaiza pled guilty to conspiracy to distribute methamphetamine on March 19, 2015. Loaiza had been involved in the distribution of methamphetamine in the Lincoln and eastern Nebraska area in at least 2012 and 2013. He received large quantities of methamphetamine from Phoenix, Arizona, which he distributed to other dealers in the Lincoln and eastern Nebraska areas. The Court found that Loaiza maintained an apartment for the purpose of distributing drugs at 32nd and Starr streets in Lincoln.
On October 22, 2013, the FBI and the Lincoln/Lancaster County Narcotics Task Force stopped two vehicles, one loaded with methamphetamine from Phoenix, and one loaded with cash intended to be taken from Lincoln to Phoenix. They uncovered about 4 pounds of methamphetamine and $10,000 in cash in these two vehicles. The following day investigators served several search warrants and arrest warrants. The searches uncovered about 9.6 pounds of methamphetamine and over $90,000 in cash. They had an arrest warrant for Loaiza, however he eluded them and fled to Mexico. On October 17, 2014, Loaiza was arrested in Arizona.
Loaiza is expected to be deported to his native Mexico after serving his prison sentence.
This case was investigated by the FBI and the Lincoln/Lancaster County Narcotics Task Force.
Lutherville Man Faces Federal Charges for Bank Fraud and Identity Theft and State Charges for Elder AbuseRead the Press Release
Baltimore, Maryland – Salah Sood, age 34, of Lutherville, Maryland, faces federal charges of aggravated identity theft and bank fraud. Sood has also been indicted in Baltimore County with four counts of abuse of vulnerable adults and one count of operating an unlicensed assisted living home. The state and federal charges arise from an investigation of Holland Manor Eldercare where, on December 3, 2015, two elderly residents were found alone when Baltimore County police and the fire department personnel responded to a fire alarm at that location.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Baltimore County State’s Attorney Scott Shellenberger, Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to the criminal complaint affidavit, on December 3, 2015, at 9:10 p.m. (BCoFD) and Baltimore County Police Department (BCoPD) personnel responded to a fire alarm at Holland Manor Eldercare, a formerly licensed Assisted Living Program located at 1812 Landrake Road in Towson, Maryland. Maryland health officials had revoked the Assisted Living Program License of Holland Manor Eldercare on September 25, 2015, after an investigation revealed deficiencies in care and staffing. The responding officers located two residents inside the facility without any staff present. An 80 year old male resident spoke with the officers and told them that no caretaker was present at the facility overnight. The man told the officers that if there was an emergency, he would call facility manager Salah Sood. BCoPD officers attempted to call Sood, but the call immediately went to voicemail. The second resident, a woman who was 82 years old, was located in a bed in a second floor bedroom. The resident was comatose and unable to communicate. BCoFD personnel who attempted to render aid to her discovered that she was restrained by a blanket that was tied to the bedrails across her body. In addition to the unattended residents, the conditions inside the facility were found to be unsanitary and unsafe. The locks on doors inside the facility had also been reversed so that residents could be locked into rooms from the outside. Both residents were transported to medical facilities to be evaluated. Salah Sood later called police and stated that he was the manager of Holland Manor Eldercare and had left the facility to go home and take a shower and get something to eat. Sood refused to provide police with his location while speaking with them on the phone
In December 2015, a criminal investigation was initiated by BCoPD detectives regarding the possible abuse and/or neglect of residents at Holland Manor Eldercare. During that investigation, it was discovered that the personal information of at least three Holland Manor Eldercare residents had been used to open multiple credit card accounts in their names without their knowledge or permission. In each instance, Salah Sood had been added as an authorized user of the credit card account.
For example, according to the affidavit, on November 10, 2015, November 30, 2015, and January 8, 2016, three credit card accounts were opened using the name, date of birth, and Social Security Number of the 80 year old resident of Holland Manor Eldercare who was removed by BCoFD personnel responding to the December 3, 2015 fire alarm. Each of the applications was submitted electronically and used the address of Holland Manor Eldercare, as the man’s home address. On the same day that each account was opened, an authorized user name of Salah Sood was added to the account. Between December 21, 2015 and January 27, 2016, a total of $59,094.39 in purchases were made using the accounts.
Sood faces a maximum sentence of 30 years in prison for bank fraud; and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. Sood was arrested today and is scheduled to have initial appearance in Baltimore County Circuit Court on the state charges at 9:00 a.m. on Thursday, February 11, 2016. No court appearance has been scheduled yet in U.S. District Court in Baltimore on the federal charges.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein and Baltimore County State’s Attorney Scott Shellenberger commended the Baltimore County Police Department and HHS-Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Roann Nichols and Special Assistant U.S. Attorney Lauren E. Perry, who are prosecuting the federal case.
Lexington Couple Pleads Guilty to Grant FraudRead the Press Release
LEXINGTON — A Lexington couple has admitted in federal court that they submitted false claims related to federal grants from the National Institutes of Health (“NIH”) and defrauded the government out of hundreds of thousands of dollars.
Today, Jerome Hahn, 69, pleaded guilty, to conspiracy to defraud the United States with respect to claims, before U.S. District Judge Danny C. Reeves. On December 16, 2015, Vesta Brue, 70, pleaded guilty to making a false claim against the United States.
According to court documents, Vesta Brue certified on behalf of Telehealth Holdings, LLC, a company owned by Jerome Hahn, that the company had incurred expenses totaling $222,037, relating to two federal grants Telehealth received from NIH, for the development of medical devices. Brue falsely certified that the funds had been spent in accordance with grant rules and regulations.
Brue and Hahn waived their right to be indicted by a grand jury, were formally charged in court, and admitted to the charges.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation; Derrick Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region; and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly announced the guilty pleas.
The investigation was conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Kate K. Smith represents the federal government in this case.
Vesta Brue is scheduled to be sentenced on March 30, 2016. She faces a maximum prison sentence of 5 years and a maximum fine of $250,000. Jerome Hahn is scheduled to be sentenced on May 18, 2016. He faces a maximum prison sentence of 10 years and a maximum fine of $250,000. Any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.