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23 March 2016
Former Teamster Sentenced for Extorting Boston Businesses and Benefit FraudRead the Press Release
BOSTON – A former member of Boston Teamster Local 82 was sentenced today in connection with extorting businesses in Boston and fraudulently receiving more than $40,000 of unemployment benefits.
James Deamicis, 52, of Quincy, was sentenced by U.S. District Court Judge Denise J. Casper to 12 months and one day in prison, one year of supervised release and restitution and forfeiture in the amount of $42,091. In November 2015, Deamicis was convicted by a federal jury of three counts of extorting businesses in Boston. Additionally, he pleaded guilty to three counts of mail fraud and one count of theft of government property.
Deamicis, a former member of Teamsters Local 82, worked in the trade show and moving industries loading and unloading trucks. Since 2007, Deamicis, and others, extorted various entities in Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82. Deamicis threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to his demand to hire and pay him and fellow union members for unwanted and unnecessary jobs.
Additionally, from 2008 to 2011, Deamicis received $41,391 in unemployment insurance benefits that he was not entitled to receive because he was working as a member of Local 82. During the three year period, Deamicis earned $126,423, making him ineligible for benefits; however, he falsely reported to the Massachusetts Department of Unemployment Insurance that he earned only $22,249 so that it appeared that he was eligible to receive unemployment insurance. Although Deamicis was employed, he endorsed each of the 73 unemployment insurance checks he received and thereby falsely certified that he had no earnings except as reported in his benefit claim certification.
United States Attorney Carmen M. Ortiz; Scott S. Dahl, Inspector General of the U.S. Department of Labor, Office of Inspector General; Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor-Management Standards; and Susan A. Hensley, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit.
Former Postal Clerk Pleads Guilty to Stealing MailRead the Press Release
NORFOLK, Va. – Trazzonna Jacobs, 27, of Virginia Beach, pleaded guilty today to one charge of stealing from the United States Mail.
In a statement of facts filed with the plea agreement, Jacobs, who worked as a postal clerk at the Bayside Postal Station in Virginia Beach, admitted to stealing a $100 gift card and $7,000 in cash from two separate packages. According to court records, an investigation ensued when a postal customer complained of the missing gift card. An investigation determined the gift card had been used at local retailers and surveillance video identified Jacobs as the individual redeeming the gift card.
The Postal Service received another complaint against Jacobs when a postal customer had $7,000 in cash stolen from a package being sent overseas. The customer identified Jacobs as the mail clerk who had handled her package. The customer stated she informed Jacobs of the $7,000 in the box to ensure its safety. When the package arrived, the money was missing. The package was provided to the United States Postal Inspection Service, Office of Inspector General, where it was sent off to be fingerprinted by the U.S. Postal Inspection Service. The U.S. Postal Inspection Service processed the package for fingerprints and Jacobs’ fingerprints were found on the inside of the package.
Ultimately, Jacobs confessed to her actions and admitted to stealing the items in question, as well as other gift cards, in order to help pay bills and support her family.
Jacobs was indicted by a federal grand jury on February 18, 2016. Jacobs faces a maximum penalty of five years in prison when sentenced on July 7, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul L. Bowman, Special Agent in Charge, United States Postal Service, Office of Inspector General, made the announcement after the plea was accepted by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-26.
Former Joint Powers Authority Finance Director Sentenced to A Year in Prison and Six Months Home ConfinementRead the Press Release
SAN FRANCISCO– Clarke J. Howatt was sentenced today to a year and a day in prison for his conviction for wire fraud stemming from a series of embezzlements from the Association of Bay Area Governments (ABAG) and the related ABAG Finance Authority for Nonprofit Corporations (FAN), announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Howatt, 56, who now resides in Portland, Ore., pleaded guilty on December 15, 2015, to committing wire fraud. In connection with his plea agreement, Howatt acknowledged perpetrating a scheme to embezzle funds from various bond accounts and other accounts established by FAN. Howatt is the former finance director of ABAG, a state Joint Powers Agency formed in the 1960s for the principal purpose of providing its members with planning and advice regarding land use issues. FAN was formed as a separate legal entity to act as a conduit issuer of debt instruments, or bonds. As part of his plea agreement, Howatt admitted he provided false information to the trustees of bond accounts and to others in order to fraudulently induce people to wire funds from FAN bond accounts and other accounts, to bank accounts that Howatt controlled. Howatt admitted that from June 2011 through January 2015, he embezzled a total of $3,876,135.21. Howatt, was charged in an information filed on February 13, 2015, with the single count of wire fraud, in violation of 18 U.S.C. § 1343, and pleaded guilty to that charge.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. In addition to the prison term, Judge Breyer also sentenced the defendant to a three year period of supervised release, six months of which will be served in home confinement. Howatt will begin serving the sentence no later than May 23, 2016.
Assistant U.S. Attorneys Kyle Waldinger and David Countryman are prosecuting the case with the assistance of Jessica Meegan and Carolyn Jusay. The prosecution is the result of an investigation by the FBI.
Former Faculty Member at UW Business School Sentenced to Prison for Investment Fraud SchemeRead the Press Release
A Seattle man who operated an investment advisory business for more than 20 years was sentenced today in U.S. District Court in Seattle to 40 months in prison, three years of supervised release and $547,461 in restitution for wire fraud, announced U.S. Attorney Annette L. Hayes. SATYEN CHATTERJEE, a/k/a Satyen Chattopadhyay, 65, owned and operated Strategic Capital Management, Inc. from 1992 until the Washington State Department of Financial Institutions ordered it to cease operating illegally in October 2013. At the sentencing hearing U.S. District Judge Thomas S. Zilly told him, “You did, over a long period of time, commit fraud…. stealing money from your friends and clients.”
“This defendant, a native of India, took advantage of the trust that members of his own Bengali community placed in him,” said U.S. Attorney Annette L. Hayes. “As is so often the case, his victims were harmed not only financially, but also in their ability to trust those around them.”
CHATTERJEE, who once taught at the University of Washington Business School, pleaded guilty in May 2015, admitting engaging in a scheme to defraud investors between 2007 and 2013. According to records filed in the case and with the Department of Financial Institutions (DFI), the investigation revealed that at least five victims were defrauded of more than $600,000. CHATTERJEE convinced various investors to make investments with him in what he represented were fixed rate securities. But in fact CHATTERJEE transferred the funds to his own bank accounts, used the money for his own expenses, or lost it as a day trader in the stock market.
For one investor CHATTERJEE created a false account statement making the investor believe his investment was secure. In 2011, CHATTERJEE sent a series of lulling emails to some clients falsely indicating that long time investment associates had defaulted on agreements he had with them, and blaming them for losses in the investments.
The case was investigated by the Washington State Department of Financial Institutions (DFI) and the FBI. The case is being prosecuted by Assistant United States Attorney Justin W. Arnold and Special Assistant United States Attorney Robert Kondrat. Mr. Kondrat is an attorney with DFI.
Former Corporate General Counsel Admits Conspiring to Obstruct Justice in Federal Criminal TrialRead the Press Release
CAMDEN, N.J. – The former general counsel of VO Financial Corp. today admitted conspiring to obstruct justice in a federal criminal case tried in 2013, U.S. Attorney Paul J. Fishman announced.
Joshua L. Gayl, 36, of Lafayette Hill, Pennsylvania, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of conspiracy to obstruct justice.
According to documents filed in this and other cases and statements made in court:
Adam and Ashley Lacerda, Ian Resnick, and several others were charged in April 2012 with conspiracy to commit mail and wire fraud based on their actions at the Vacation Ownership Group, which offered phony consulting services to owners of timeshares. After they were charged, the VO Group became VO Financial, and Gayl was hired as general counsel. The Lacerdas continued to run VO Financial through their July 2013 criminal trial.
Gayl admitted misleading a witness, identified as “Victim 1,” after he learned that Victim 1 had told the FBI about being defrauded by the VO Group. Gayl contacted Victim 1 intending to obtain statements favoring the defense in the criminal case, but he concealed his true intentions from Victim 1. Instead, he wrote Victim 1 offering assistance if Victim 1 would tell him what Victim 1 told the FBI. Gayl and an accomplice then called Victim 1 and misleadingly said that they were recording the call for quality assurance and training purposes, when in fact they were trying to get Victim 1 on tape making statements favorable to the defense. Victim 1 told Gayl that the VO Group had promised to sell Victim 1’s timeshare, a VO Group misrepresentation alleged in the indictment. Gayl omitted this allegation when he told Victim 1 what was alleged in the criminal case. Although he did not know what the VO Group representative actually told Victim 1, Gayl told Victim 1 that “we do not sell timeshares” and that Victim 1 had some “confusion” in recalling a promise to sell Victim 1’s timeshare. Gayl ended the call and consulted with Adam Lacerda. Gayl then called Victim 1 back at Lacerda’s request to persuade Victim 1 that Victim 1’s recollection was mistaken – but Gayl did not tell Victim 1 that his purpose was to get recorded statements to help the criminal defense. Gayl told Victim 1 in the second call that it was “likely” and “logical” that Victim 1 had misunderstood that the VO Group sold timeshares.
Gayl also helped the defendants send potential trial witnesses payments intended to influence their testimony. Adam and Ashley Lacerda wanted these refunds paid to help the defense case at trial and make the recipients testify more favorably to the defense, but Gayl did not tell the potential witnesses that these were the purposes of the payments. Gayl wrote a letter urging “Victim 2” to take a refund, knowing that Resnick wanted Victim 2 to take the refund because Victim 2 was a potential trial witness against Resnick. A month before trial, Gayl wrote letters offering refunds to “Victim 3” and “Victim 4,” but failed to tell them that they were being offered refunds because they were potential trial witnesses.
Gayl also lied in responding to a trial subpoena asking VO Financial to produce records. After Adam Lacerda’s criminal lawyer told the U.S. Attorney’s Office and Gayl that he had advised Lacerda not to be involved in the subpoena response, Gayl told Adam Lacerda about one subpoenaed recording harmful to the defense and saw Lacerda access the recording. Lacerda deleted the damaging portion of the recording. When Gayl gave the U.S. Attorney VO Financial’s response to the subpoena, he included the altered recording and a false certification that he did not consult with Lacerda about the subpoena response. Gayl subsequently listened to the recording and realized that Lacerda had altered it.
Adam Lacerda, Ashley Lacerda, and Ian Resnick were convicted of conspiracy to commit mail and wire fraud and other offenses. Adam Lacerda was sentenced to 27 years in prison; one factor in his sentence was his involvement in what the court called a “comprehensive, calculated, and targeted effort at obstruction of justice.” Ashley Lacerda and Ian Resnick have yet to be sentenced.
The defendant faces a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Sept. 2, 2016.
U.S. Attorney Fishman credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Jonathan Mellone, New York Region, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Defense counsel: Ellen C. Brotman, Esq., Philadelphia
Former CEO of $3 Billion TierOne Bank Sentenced to 11 Years in Prison for Orchestrating Scheme to Hide More than $100 Million in Losses from Shareholders and RegulatorsRead the Press Release
The former CEO of TierOne Bank, a $3 billion publicly-traded commercial bank formerly headquartered in Lincoln, Nebraska, was sentenced to 132 months in prison today for orchestrating a scheme to defraud TierOne’s shareholders and to mislead regulators by concealing more than $100 million in losses on loans and declining real estate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Randall C. Thysse of the FBI’s Omaha, Nebraska, Division and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Goldsmith Romero made the announcement.
Gilbert G. Lundstrom, 74, of Lincoln, was sentenced by U.S. District Judge John M. Gerrard of the District of Nebraska, who also ordered Lundstrom to pay a $1.2 million fine. The court deferred entering a restitution order until after sentencing. On Nov. 6, 2015, after a two-week jury trial, Lundstrom was convicted of 12 of 13 counts charged, including conspiracy to commit wire fraud and securities fraud, conspiracy to falsify bank entries, wire fraud, securities fraud and falsifying bank entries.
“Today’s sentence shows the Justice Department’s commitment to prosecuting individuals who abuse their corporate positions to commit fraud,” said Assistant Attorney General Caldwell. “Gilbert Lundstrom and his co-defendants’ crimes not only contributed to the collapse of a major regional bank during the financial crisis, but also destroyed the jobs of hundreds of bank employees and led to massive losses for the bank’s shareholders. The defendants recklessly gambled with bank assets and lied to shareholders and government regulators, and through their actions drove a respected regional bank into the ground. They have now been held accountable for their crimes.”
“The entire financial system is dependent upon full and truthful disclosure by the executives of financial institutions and the sentence imposed today sends a message to high level executives who abuse their position of trust,” said Special Agent in Charge Thysse. “The FBI will continue to investigate and bring to justice those who exploit their influence or position for personal gain at the expense of the investing public.”
“Lundstrom is now another bank CEO investigated by SIGTARP to be sentenced to prison,” said Special Inspector General Romero. “He was the architect of the bank’s aggressive and risky growth plan that backfired when the housing bubble burst. Instead of honestly communicating TierOne’s losses, this bank CEO took intricate steps to conceal the bank’s true financial picture and dig the bank into an even deeper financial hole. Lundstrom applied for $86 million in TARP funds on behalf of the bank. This was a critically important conviction and we commend the commitment by the DOJ Criminal Division and the FBI in holding bankers who commit crimes accountable.”
According to the evidence presented at trial, Lundstrom designed an aggressive strategy to expand TierOne’s portfolio beyond traditional lending in Nebraska to riskier areas, including commercial real estate in Las Vegas, which decimated the bank once the financial crisis hit. Trial evidence showed that Lundstrom and his co-conspirators then intentionally concealed more than $100 million in losses in TierOne’s loan and real estate portfolio from investors and regulators and provided inflated figures in its required reports to the U.S. Securities and Exchange Commission (SEC) and the Office of Thrift Supervision. In April 2009, Lundstrom and his co-conspirators learned that TierOne needed to increase its reserves and “loan loss allowance” by between $34 million and $114 million, but concealed this information from shareholders and regulators in TierOne’s financial statements, the evidence showed. In addition, trial evidence demonstrated that during TierOne’s annual shareholder meeting held on May 21, 2009, Lundstrom misrepresented the state of TierOne’s capital ratios and reserves and whether TierOne had applied for TARP funding.
In June 2010, following TierOne’s ultimate disclosure of $120 million in loan losses and its subsequent delisting from the NASDAQ exchange, TierOne was shut down by the Federal Deposit Insurance Corporation. At the time of the closure, TierOne had more than 750 employees working at its headquarters in Lincoln and its 69 branch offices located in Nebraska, Iowa and Kansas.
In 2014, co-conspirators James Laphen, 67, of Omaha, TierOne’s former president and chief operating officer, and Don Langford, 65, of College Station, Texas, TierOne’s former chief credit officer, pleaded guilty to multiple felonies in connection with their participation in the scheme. Laphen and Langford are scheduled to be sentenced tomorrow by Judge Gerrard.
The FBI’s Omaha Division and SIGTARP investigated the case. The SEC also provided substantial assistance in the investigation. Trial Attorneys Henry P. Van Dyck and L. Rush Atkinson and Senior Deputy Chief Sandra Moser of the Criminal Division’s Fraud Section prosecuted the case.
Flight Attendant Who Allegedly Tried to Bring nearly 70 Pounds of Cocaine through Security at LAX Arrested on Federal Drug ChargesRead the Press Release
LOS ANGELES – A JetBlue flight attendant who allegedly attempted to use her credentials to bring nearly 70 pounds of cocaine through a security checkpoint at Los Angeles International Airport on Friday was charged today with a federal narcotics trafficking offense.
Marsha Reynolds, 31, of Jamaica, New York, was taken into custody this afternoon after she surrendered herself to the Drug Enforcement Administration at John F. Kennedy International Airport in New York.
Reynolds was charged in United States District Court this afternoon with possession with the intent to distribute cocaine after she allegedly abandoned 68.49 pounds of cocaine after being directed to a secondary screening area at LAX on Friday.
The affidavit in support of the criminal complaint alleges that Reynolds approached the Known Crew Member security checkpoint in Terminal 4 at LAX Friday evening. After showing her official badge and identification to the Transport Security Administration officer on duty, Reynolds was randomly selected for additional screening. Reynolds was then escorted to a secondary screening area. Upon arriving at this checkpoint, Reynolds dropped her luggage, removed her shoes, and fled the area, running down an upward-traveling escalator and away from TSA officers.
According to the affidavit by an FBI agent, law enforcement officials followed protocol to determine that Reynolds’ luggage did not contain explosives or any dangerous devices. An LAX police officer then conducted an inspection of the bag and discovered a total of 11 individually wrapped packages which were later determined to contain cocaine.
“Our nation’s security depends on every individual with security clearances to honor the trust placed in them,” said United States Attorney Eileen M. Decker. “The defendant’s conduct violated that trust and, in the process, exposed the public to a major narcotics transaction and the dangers inherent to such a transaction. The intervention of the Transportation Security Administration and law enforcement ensured the safety of the passengers and staff at LAX.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Reynolds is expected to make her initial court appearance tomorrow in United States District Court in Brooklyn.
If she is convicted of the narcotics trafficking offense, Reynolds would face a statutory maximum penalty of life in federal prison, and a mandatory minimum sentence of 10 years.
This investigation was conducted by the Los Angeles International Airport Criminal Enterprise Task Force (LAACETF), an inter-agency task force based at LAX. The Task Force, which includes representatives of the FBI, the DEA, United States Customs and Border Protection, the Transportation Security Administration, the Los Angeles International Airport Police Department, the Los Angeles Police Department, and the Los Angeles Sheriff’s Department. The LAACETF provides a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States and various international destinations. The LAACETF focuses on LAX and other Southland airports, including John Wayne International Airport, the Los Angeles/Ontario International Airport, the Long Beach Airport, Bob Hope Airport, the Van Nuys Airport, and the Santa Monica Airport.
Financial Services Company Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
The CEO of Preferred Merchants LLC, a financial services company based in Napa, California, pleaded guilty yesterday to engaging in an elaborate obstruction of justice scheme to conceal millions of dollars—which were subject to a freeze order and seizure warrant—from the government using a series of offshore accounts, domestic and foreign nominee accounts, a shell company and related bank and brokerage accounts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge Michael Rolin of the U.S. Secret Service’s Charlotte, North Carolina, Field Division and Special Agent in Charge Thomas J. Holloman III of the Internal Revenue Service-Criminal Investigation (IRS-CI) Charlotte Field Office made the announcement.
Jaymes Meyer, aka James Meyer, 47, of Napa, pleaded guilty yesterday before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina in Charlotte to obstruction of justice.
According to the plea agreement, in or about 2012, the U.S. Securities and Exchange Commission’s (SEC’s) Division of Enforcement commenced a securities fraud investigation concerning a Ponzi scheme centering on Rex Ventures Group LLC (RVG), a North Carolina-based company for which Preferred Merchants held millions in assets in treasury and trust accounts. As a result of its investigation, the SEC filed a civil enforcement action against RVG, after which the court entered a freeze order that appointed a receiver and froze all of RVG’s assets. Among other things, the receiver was responsible for marshaling, managing and distributing remaining RVG assets to impacted RVG investors. In addition to the freeze order, the U.S. Secret Service also obtained a seizure warrant of RVG assets held by Meyer through Preferred Merchants. Meyer admitted that in August 2012, the SEC informed him of, among other things, the investigation and the court order freezing RVG’s assets and requested that Meyer freeze any RVG assets in his possession, custody or control.
According to the plea agreement, in response to this request, Meyer misled the SEC by falsely implying that Preferred Merchants did not exercise dominion or control over any RVG assets when, in fact, Meyer controlled approximately $17.4 million in RVG assets. Meyer further admitted that he wired approximately $4.8 million from an RVG trust account to a brokerage account under his control within an hour of learning about the SEC’s investigation. Over the next 10 months, Meyer used that money to purchase homes in Napa and the Turks and Caicos, to which he subsequently made $1.5 million in improvements, and withdrew approximately $195,000 in cash. He also established a Cook Islands-based trust account, formed a shell company and opened a brokerage account in the shell company’s name to further conceal the trail of RVG assets subject to the freeze order and seizure warrant.
Meyer also admitted that throughout the pending civil litigation surrounding the RVG scheme, he made fraudulent and misleading statements to the U.S. District Court for the Western District of North Carolina, the SEC and the court-appointed receiver during depositions.
In connection with his plea agreement, Meyer agreed to pay an approximately $4.8 million money judgment and to forfeit the homes that he purchased in the Turks and Caicos and Napa as proceeds of the obstruction of justice offense.
The U.S. Secret Service and the IRS-CI investigated the case.
Trial Attorney Kevin Lowell of the Criminal Division’s Asset Forfeiture and Money Laundering Section-Bank Integrity Unit and Assistant U.S. Attorney Mark T. Odulio of the Western District of North Carolina are prosecuting the case.
Feds Seize Another Tunnel; Multiple Arrests and More Than a Ton of Marijuana ConfiscatedRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – March 23, 2016
CALEXICO – Federal officials seized a cross-border tunnel this morning following a lengthy multiagency investigation that resulted in the arrests of four people in Calexico, California and Arizona and the confiscation of more than a ton of marijuana.
The tunnel, approximately 415 yards in length, stretches from El Sarape Restaurant in Mexicali, Baja California, Mexico to a three-bedroom, two-bath house, located at 902 E. Third Street in Calexico, California, about 300 yards north of the international border. In the front room of the residence, agents found a hole in the floor covered with tile leading to a shaft descending underground.
Two people were arrested in Arizona yesterday and two people were arrested today in Calexico and charged by federal complaint with various drug trafficking, money laundering and tunnel-related charges, including conspiracy to import a controlled substance and conspiracy to use border tunnels and passages.
Defendants Joel Duarte Medina and Manuel Gallegos Jiminez were arrested in Calexico. Defendant Duarte Medina was arrested inside a residence located on Horizon Street, in Calexico, which was used as a stash location for the tunnel organization. Agents also seized approximately 1,532 pounds of marijuana inside the Horizon Street residence this morning. Defendant Gallegos Jiminez was arrested today inside the tunnel residence. Both defendants are scheduled to make their first court appearances tomorrow in El Centro before U.S. Magistrate Judge Pete Lewis.
Among those charged in Arizona was Marcia Manuela Duarte-Medina, who was taken into custody in Nogales, Arizona, on Tuesday night. In court documents, she and others are alleged to be the purchasers of the tunnel residence in Calexico. She is scheduled to appear today before U.S. Magistrate Judge Eric Markovich in Arizona.
Also arrested in Arizona was Marcia Manuel Duarte Medina’s mother, Eva Duarte De Medina, who was charged in the Southern District of California, with various crimes including conspiracy to import drugs, conspiracy to distribute drugs and maintaining drug related premises. As stated in court documents, Eva Duarte De Medina assisted in moving vehicles loaded with narcotics between the tunnel residence and the Horizon Street stash location. She is scheduled to appear today before Judge Markovich in Arizona.
This is the first operational tunnel discovered in Calexico in a decade. According to federal investigators, it also represents the first time drug traffickers are known to have purchased property and constructed a house for the sole purpose of concealing the exit of a subterranean drug tunnel. The search warrant affidavit and charging documents allege the traffickers scouted properties in the area and selected the Third Street parcel in a residential section of Calexico. The property sale was finalized in April of 2015 for $240,000 by the drug traffickers.
“This house and tunnel were constructed under the watchful eye of law enforcement,” said U.S. Attorney Laura Duffy. “For the builders, the financiers and the operators of these passageways, there is no light at the end of the tunnel. We will seize your drugs and your tunnel before you even have a chance to use it.”
“Today’s enforcement actions are the culmination of months of tireless investigative work by HSI and its enforcement partners, showing yet again our collective resolve to use all of the resources at our disposal to combat this increasingly dangerous form of cross-border smuggling,” said Dave Shaw, special agent in charge for HSI San Diego. “I’d emphasize that our investigation in this case is still very much ongoing, but preliminarily we believe the shuttering of this latest sophisticated smuggling tunnel has dealt a serious blow to yet another narcotics trafficking organization that was determined to succeed at all costs.”
“If these drug trafficking organizations think they can move their operations east and no one will be the wiser, they are mistaken,” said DEA San Diego Special Agent in Charge William R. Sherman. “With the assistance of our law enforcement partners, we will remain vigilant in both San Diego and Imperial Counties to ensure that these dangerous cross border drug tunnels are shut down and the organizations responsible are put out of business.”
Court documents describe how HSI special agents used court-authorized wiretaps and other investigative techniques to monitor the construction of the house during October and November of 2015. According to the case affidavit, the property owners told the construction contractor to leave a space for a floor safe when pouring a cement foundation for the house. Investigators believe the owners intended to use that hole in the foundation as the tunnel’s exit point. In late December, 2015, coconspirators rented a “walk behind saw and concrete blade” from a local business in El Centro, California, presumably to create the tunnel exit. The residence was completed in December of 2015 at a cost of approximately $86,000.
Once the house was finished, the drug trafficking organization opened the tunnel’s exit point and began smuggling narcotics through the tunnel. Based on intercepted calls and surveillance, agents believe the traffickers began smuggling narcotics through the tunnel after February 28, 2016. Investigators are confident that was the first time the tunnel was used.
According to court records, the drug traffickers used another residence four miles from the tunnel exit as a stash house at 1056 Horizon Street, Calexico, to store the smuggled narcotics. Eventually, the traffickers moved the narcotics from that stash location to a warehouse located at 260 Avenida Campillo, Suite A, Calexico, where the smuggled narcotics were stored until they could be moved northbound by the transportation cells.
Drivers transported the marijuana from the tunnel exit to a stash house and then to the Santo Thomas Swap Meet in Calexico, where a new driver would transport the load to another stash location. Thus drivers taking contraband to the Horizon Warehouse Street site were not aware of the original stash location at the Third Street property. Using multiple locations and multiple drivers is a means for drug traffickers to compartmentalize their operations and keep various players in the dark about the organization’s methods.
On March 7, 2016, HSI agents and West Covina Police Department seized over 1,350 pounds of marijuana that were smuggled through the tunnel and funneled into the two stash locations before being transported northbound to Los Angeles via Brawley. This was the only known time that traffickers moved the drugs from Calexico stash houses for distribution via Brawley and Los Angeles.
In total, authorities seized almost 3,000 pounds of marijuana.
Calexico is generally considered a less desirable place to construct tunnels because soil composition is more difficult to penetrate, and because it is a largely a residential city, making tunnel exits and smuggling activity more difficult to conceal.
Traffickers have found the Otay Mesa region, where the majority of super tunnels have been discovered along the California-Mexico border in recent years, to be a more attractive option because the terrain is easier to excavate and the thousands of warehouses on either side of the border provide convenient camouflage.
The tunnel dismantled today is the 12th large-scale operational drug smuggling tunnel discovered along the California border since 2006. In the last five years, federal authorities have detected more than 75 cross-border smuggling tunnels, most of them in California and Arizona.
For visuals please see:
https://www.dvidshub.net/search?q=calexicotunnel
AGENCIES
U.S. Immigration and Customs Enforcement Homeland Security Investigations
Homeland Security Investigations, Calexico
U.S. Border Patrol,. El Centro Sector
Drug Enforcement Administration
Customs and Border Protection
IRS Criminal Investigations
El Centro Police Department
Brawley Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
**This case stems from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the agencies noted above. 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.
Federal Jury Convicts Destrehan Woman in Scheme to Sell Illegal and Mislabelled Diet PillsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that last night a federal jury convicted Darlene V. Krueger, age 54, of Destrehan, Louisiana, of six federal felony offenses in connection with a scheme to sell illegal and mislabelled diet pills to victims throughout Louisiana. She was acquitted on one count. The jury’s verdicts followed a seven-day trial before U.S. District Judge John W. deGravelles. The sentencing date has not yet been set.
Specifically, Krueger was convicted of three counts of distributing a controlled substance and three counts of introducing misbranded drugs into interstate commerce. This conduct was part of a multi-state scheme to illegally distribute diet pills containing sibutramine, a Schedule IV controlled substance, which were falsely labeled and marketed as “all natural” dietary supplements. Sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed significantly increased risk of strokes and heart attacks. Since the removal of Meridia, no drug containing sibutramine has been approved for use in humans in the United States.
The evidence at trial demonstrated that, between 2009 and 2014, Krueger engaged in a scheme to sell purportedly “all natural” dietary supplements under various names, such as “Slim Forte Slimming Capsules,” “Slim Forte Double Power Slimming Capsules,” “Slim-Vie Slimming Capsules,” and “Slim-Vie Double Power Slimming Capsules,” which she knew contained sibutramine, to customers throughout Louisiana. Even after she learned that the diet pills contained sibutramine and had potentially serious side effects, Krueger continued to distribute the diet pills and disseminate false and misleading information about the safety and efficacy of her products. Krueger made approximately $100,000 as a result of the scheme.
In a related case, on July 29, 2015, John Wesley Hoag, age 52, of Ft. Lauderdale, Florida, pled guilty before U.S. District Judge John W. deGravelles to a Bill of Information charging him with conspiring with Krueger to distribute and possess with the intent to distribute sibutramine and introducing misbranded drugs into interstate commerce. During the guilty plea hearing, Hoag admitted to unlawfully importing the diet pills from manufacturers based in China and then distributing the diet pills to his distributors, including Krueger, and consumers.
As a result of their respective roles, Krueger and Hoag face significant incarceration, fines, restitution, forfeiture of proceeds, and supervised release following imprisonment.
U.S. Attorney Green stated: “To sell diet pills containing illegal substances is bad enough. Selling diet pills containing illegal substances and concealing that fact from unsuspecting customers by mislabelling the pill containers is intolerable. The actions taken by the defendant in this matter – which appear driven purely by greed – will consistently result in our office’s full attention and action. I commend the excellent work by the FDA Office of Criminal Investigations and our prosecutors who worked hand-in-hand to bring this case to its rightful conclusion.”
“Consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Robert J. West, Special Agent-in-Charge, Miami Field Office, FDA Office of Criminal Investigations. “Our office will continue to defend the public’s health by ensuring that dietary supplements are accurately labeled, and do not contain dangerous undeclared active pharmaceutical ingredients.”
This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Food and Drug Administration’s Office of Criminal Investigations, with the assistance from other FDA components, the Louisiana State Police, the Slidell, Louisiana, Police Department, and the Drug Enforcement Administration. The matter was prosecuted by Assistant United States Attorneys Cam T. Le and Paul L. Pugliese.
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA. For more information regarding dietary supplements and to report adverse events, please visit the FDA’s website at http://www.fda.gov/Food/DietarySupplements/.
Federal Jury Convicts Armed Career Criminal for Possessing FirearmRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that last night a federal jury convicted Larry W. Kelly, Jr., age 36, of Baker, Louisiana, of possessing a firearm and ammunition while a convicted felon. The verdict followed a multi-day jury trial before Chief U.S. District Judge Brian A. Jackson. The defendant is scheduled to be sentenced on July 14, 2016.
The evidence at trial established that, on April 14, 2015, the Baton Rouge Police Department received a 911 call that reported that the defendant, who had previously been convicted of multiple felonies, was threatening to shoot the defendant’s father. When BRPD officers responded to the scene, the defendant fled and attempted to hide a firearm in the backyard of a house. Officers eventually secured the defendant and located the firearm. Because his criminal history makes him an armed career criminal under federal law, the defendant faces a mandatory minimum of 15 years in prison.
U.S. Attorney Green stated: “Through this jury verdict, our community has once again demonstrated its intolerance toward convicted felons with guns. Armed felons pose a threat to our safety and security and will continue to receive our well-deserved attention, particularly armed career criminals, like the defendant in this matter. I appreciate the hard work of the ATF, BRPD, and our prosecutors who collectively helped to ensure justice and a safer community for all.”
ASAC Kurt Thielhorn stated: “ATF remains focused on reducing firearm violence. This is an example of ATF working with our law enforcement partners to protect our communities from the most violent criminals.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge City Police Department. It was prosecuted by Assistant United States Attorneys Adam Ptashkin and Rene Salomon.
Federal Grand Jury Indicts Arizona Truck Driver for Manslaughter in Bus Crash that Left One Man Dead on Fort Irwin Army BaseRead the Press Release
RIVERSIDE, California – An Arizona man was indicted today on federal charges of involuntary manslaughter for his role in a fatal bus crash that allegedly occurred because he parked his truck on a highway on the Fort Irwin Army Base in the Mojave Desert.
Steven Kilty, 49, of Apache Junction, Arizona, was named in a single-count indictment that charges him with involuntary manslaughter, a felony offense that carries a penalty of up to eight years in federal prison.
On the evening of June 2, 2014, Steven Kilty was delivering equipment to the Army’s National Training Center at Fort Irwin. Kilty arrived at the base the night before his scheduled delivery, and he parked his tractor-trailer in the right lane of the road on Fort Irwin property, according to investigators, who determined that Kilty turned off the lights on the truck and failed to place any warning devices or reflectors near his truck.
At approximately 5:00 a.m. on June 3, prior to sunrise, a commuter bus bringing people to Fort Irwin collided with the parked truck. As a result of the collision, one man was killed and seven people suffered major injuries.
The indictment alleges that Kilty was illegally blocking traffic on the roadway and that he failed to place any warning reflectors, both of which are violations of the California Vehicle Code. This “grossly negligent” operation of the truck “imperiled the lives of others,” according to the indictment.
“Commercial truck drivers are professionals who have a heightened obligation to operate their vehicles in a safe and responsible manner,” said United States Attorney Eileen M. Decker. “The tragedy that resulted of Mr. Kilty’s negligent conduct was entirely avoidable.”
Kilty will be summoned to appear for an arraignment in the United States District Court in Riverside in the coming weeks.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case was investigated by the California Highway Patrol, the U.S. Army Criminal Investigation Command, and the Fort Irwin Police Department.
Fargo Man Sentenced for the Production of Child PornographyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on March 23, 2016, Dewayne William Barth II, 30, Fargo, North Dakota, was sentenced before U. S. District Judge Ralph R Erickson to serve the statutory maximum of 30 years in prison for Production of Child Pornography, Receipt and Distribution of Child Pornography, and Possession of Child Pornography. Judge Erickson also sentenced Barth to lifetime of supervised release and to pay a $300 special assessment to the Crime Victims Fund. Barth is also required to pay $16,000 in restitution.
U.S. Attorney Chris Myers noted, “This cases illustrates the commitment by law enforcement nationwide to work together to identify, target and arrest individuals who abuse children. The sentence handed down in this case is a strong message that protection of children from this reprehensible conduct remains a priority with the US Attorney’s office in North Dakota and all of our law enforcement partners.”
“No prison sentence can restore what was taken from Mr. Barth’s victim,” said acting Special Agent in Charge William Lowder of HSI St. Paul, “but the lengthy sentence imposed on him by the court serves as a warning to those who would seek to abuse the most vulnerable members of our community. HSI will continue to work with our state and local partners to ensure those who prey on children are caught and punished.”
This case came to the attention of law enforcement after Homeland Security Investigation Special Agents arrested an individual for production and possession of child pornography in Gatling, Tennessee. A forensic examination of the computer in Tennessee revealed that the individual was sharing child pornography with multiple persons, including Barth. Specifically, Barth produced and distributed images depicting a 3-year-old child engaged in sexually explicit conduct.
A Special Agent with the Homeland Security Investigations obtained and executed a search warrant for Barth’s email account which revealed that Barth was receiving and distributing child pornography via a yahoo email account from May 2014, continuing through October 2014. Internet Crimes Against Children (ICAC) task force members also executed a search warrant at Barth’s residence where law enforcement recovered multiple electronic devices collectively containing more than 11,000 files of child pornography.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, and the Fargo Police Department.
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fargo Business Man Has Been Sentenced in Connection with Tax FraudRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on March 23, 2016, Mrkonja Redic, 50, Fargo, ND, was sentenced before U. S. District Judge Ralph R. Erickson to serve five (5) years supervised probation and ten (10) months Electronic Home Monitoring after pleading guilty in Dec. 2015 to an Information charging him with Making and Subscribing a False Federal Tax Return. Judge Erickson also ordered Redic to pay $45,000 in restitution to the IRS as well as a $100 special assessment to the Crime Victims Fund.
"Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system," said Shea Jones IRS Criminal Investigation Special Agent in Charge of the St. Paul Field Office. With the April 15 tax deadline looming, it is important for people to have confidence that when they pay their taxes, their friends and neighbors are doing the same."
On or about Feb. 16, 2010, Redic filed a United States amended tax return for the year 2008, which included a Schedule C, Profit or Loss from Business. Redic also verified under the penalties of perjury that the amended tax return was true and correct. Redic, who owned a scrap metal business in Fargo, falsified the amount of his gross receipts and sales on his federal tax return by $174,654 in an attempt to minimize the amount of taxes he would owe to the IRS. In 2008, Redic had gross sales and receipts of $344,621.00, but only reported to the IRS $169,967.00 in gross sales and receipts. Redic’s under-reporting to the IRS of $174,654.00 in gross sales and receipts resulted in a tax loss to the United States of $45,000.
This case was investigated by the Internal Revenue Service.
Assistant U. S. Attorney Scott Schneider prosecuted the case.
Drug Trafficker Accomplice Sentenced to Five Years in PrisonRead the Press Release
EUGENE, Ore. – Nikita Rose Garcia, 28, a former resident of Douglas County, Oregon, was sentenced yesterday to five years in prison and four years of supervised release by U.S. District Judge Ann Aiken for aiding in the distribution of more than 50 grams of methamphetamine. Garcia previously pleaded guilty in November 2015 for assisting another individual who was armed with a firearm in the distribution of 1.244 kilograms of methamphetamine in Douglas and Benton Counties.
On August 6, 2014, a Benton County Sheriff’s deputy attempted to stop a car in which Garcia was a passenger near Monroe, Oregon. The driver attempted to elude the deputy by driving at speeds over 100 mph. The car crashed through a fence and collided with a piece of farm equipment. The driver fled and avoided arrest, but Garcia was apprehended. In the car, deputies found methamphetamine and a loaded pistol.
On September 15, 2014, U.S. Marshals arrested the alleged driver, Greyson Scott Lindenfelser, on federal drug and firearm charges and Oregon kidnapping and drug charges outside a motel in Creswell, Oregon. On January 21, 2015, a federal grand jury indictment charged Lindenfelser with being a felon in possession of a stolen firearm, possessing a firearm to further a drug trafficking crime, and distribution of methamphetamine. He has pleaded not guilty and is pending trials in federal and Douglas County courts.
This case was jointly investigated by the Drug Enforcement Administration, Douglas County Interagency Narcotics Team, Benton County Sheriff’s Office, and the Corvallis Police Department, and resulted in the seizure of a total of 1.913 kilograms of methamphetamine, two pistols and 37 hydrocodone tablets.
The case was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr., with the assistance of Benton County District Attorney John Haroldson and Douglas County District Attorney Rick Wesenberg.
District Man Pleads Guilty to Armed Rapes of Two StrangersRead the Press Release
WASHINGTON – Paul Williams, 32, of Washington, D.C., pled guilty today to raping and assaulting two women in separate attacks that took place in Northeast Washington within a three-week period in November 2014, U.S. Attorney Channing D. Phillips announced.
Both women were strangers that Williams and his accomplice, Rai-Jon Gerald, kidnapped off public sidewalks and forced into deserted areas, where Williams and Gerald sexually assaulted them. One attack took place on Thanksgiving Day.
Williams pled guilty in the Superior Court of the District of Columbia to two counts of first-degree sexual abuse, one count of assault with a dangerous weapon, and one count of armed robbery. The plea, which is contingent upon the Court’s approval, calls for a prison sentence between 35 and 38 years. It also requires the defendant to register as a sex offender for life upon his release. The Honorable Michael Ryan scheduled sentencing for May 27, 2016.
According to the government’s evidence, in the early morning hours of Nov. 7, 2014, Williams and Gerald planned to rob a convenience store at 49th Street and Nannie Helen Burroughs Avenue NE. When a suspicious employee thwarted their plans, Williams and Gerald, armed with a BB gun that looked like a real handgun, walked eastbound down Nannie Helen Burroughs Avenue. They soon spotted a woman walking alone, whom they approached. Gerald displayed the gun to the woman, while Williams grabbed her by the hair and forced her to the ground. Williams then put the woman in a headlock and dragged her into a deserted alley near an abandoned wooded lot. There, in the dark and amidst such debris as discarded mattresses and tires, Williams and Gerald orally and vaginally raped the woman. They also robbed her of cash and phones, and Williams threatened to kill her if she reported the assault.
Three weeks later, on Nov. 27, 2014 – which was Thanksgiving Day - Williams and Gerald again met up in the early morning hours to rob the convenience store at 49th Street and Nannie Helen Burroughs Avenue NE. Once again, their plans were thwarted, causing them to head down Nannie Helen Burroughs Avenue in search of other victims. They encountered a woman, who, like their first victim, was a complete stranger to them. Armed with a BB gun and Taser, Williams and Gerald assaulted the woman, robbing her of her purse and forcing her off the sidewalk toward tall bushes at nearby Kelly Miller Middle School. While Gerald led the way, Williams dragged the woman, repeatedly striking her in the head and face with his gun. Once behind the bushes, Williams forcibly removed the woman’s clothing and orally sexually assaulted her. Williams also attempted forced vaginal sex. Throughout, the woman fought back. In response, Williams continued to pistol whip her, as well as strike her in the face with his fists. Williams and Gerald Tasered the woman multiple times. With Williams’s assistance, Gerald also sexually assaulted the woman orally, and attempted to do so vaginally.
A neighbor heard the woman’s screams and the sounds of her being Tasered. He called the police, who quickly arrived on scene. Gerald escaped, but Williams was arrested nearby hiding in a yard. Williams has been in custody since his arrest.
Gerald, 20, also of Washington, D.C., was identified and arrested two months later, and he earlier pled guilty to first-degree sexual abuse, attempted first-degree sexual Abuse, and two counts of robbery. He is awaiting sentencing.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Division, the patrol officers who responded, and the crime scene officers who processed both crime scenes. He thanked the District of Columbia Forensic Nurse Examiners who examined the victims shortly after the assaults, the FBI’s Footwear Examiners, the forensic biologists and DNA analysts at Bode Cellmark Forensics and the D.C. Department of Forensic Sciences, and Teel Technologies, which performed forensic analysis of the defendant’s phone.
U.S. Attorney Phillips also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughn; Paralegal Specialists Jessica Moffatt and Joyce Arthur; Legal Assistant Brendan Conye; Criminal Investigation Unit Investigator John Marsh; Information Technology Specialists Leif Hickling, Aneela Bhatia, Paul Howell, and Joshua Ellen; Investigative Analyst William Hamann, Witness Security Specialist Michael Hailey; current and former interns Allison Denton, Stephanie Dinan, Emma McArthur, and Marissa Moshell; former Paralegal Specialist Chantal Corrigan; Special Assistant U.S. Attorney Brian Morgan, and Assistant U.S Attorney Jodi Lazarus, who assisted with the initial investigation of the case.
Finally, U.S. Attorney Phillips thanked Assistant U.S. Attorneys John L. Hill and Kara Traster, who investigated, indicted, and prosecuted the case.
Detroit-Area Physician Sentenced to 45 Months in Prison for Role in $5.7 Million Medicare Fraud SchemeRead the Press Release
A Detroit-area doctor who prescribed medically unnecessary controlled substances and billed for office visits and diagnostic testing that never took place was sentenced to 45 months in prison today for his role in a $5.7 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Region and Special Agent in Charge Jarod J. Koopman of Internal Revenue Service-Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Laran Lerner, 59, of Northville, Michigan, was sentenced today by U.S. District Judge Victoria A. Roberts of the Eastern District of Michigan, who also ordered Lerner to pay $2,789,409 in restitution. Lerner pleaded guilty on Aug. 31, 2015, to one count of health care fraud and one count of structuring cash transactions to avoid bank reporting requirements.
According to admissions made as part of his plea agreement, Lerner lured patients into his clinic with prescriptions for medically unnecessary controlled substances and then caused Medicare to be billed for a variety of unnecessary prescriptions, diagnostic tests and office visits to make it appear as though he was providing legitimate medical services. Lerner admitted that in reality, the controlled medications were simply used to facilitate and conceal his scheme to steal millions of dollars from the Medicare program. According to Lerner’s plea agreement, Medicare was billed $5,748,237 as a result of Lerner’s unnecessary prescriptions, office visits and diagnostic testing.
Lerner also admitted that he structured cash deposits he received as a result of his scheme in $5,000 increments on consecutive days at various branch locations in the Detroit area in order to avoid the requirement that domestic banks file a currency transaction report with the Secretary of the Treasury for all currency transactions over $10,000. According to his plea agreement, for example, in April 2013, Lerner deposited $70,000 in cash by making deposits of $5,000 on 14 different days.
As part of the plea agreement, Lerner agreed to permanently surrender his Drug Enforcement Administration controlled substance registration and agreed to not to re-apply for this license in the future, and agreed that were he granted any application from any agency to prescribe or dispense controlled substances, it would be against the public interest.
The FBI, HHS-OIG and IRS-CI investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Fraud Section Trial Attorney Elizabeth Young is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Department of Justice Releases Report on Identifying and Preventing Gender Bias in Law Enforcement Response to Sexual Assault and Domestic ViolenceRead the Press Release
The Department of Justice today announced a new publication, Identifying and Preventing Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence: A Roundtable Discussion. The report was released at the International Conference on Sexual Assault, Domestic Violence, and Engaging Men & Boys and is published by the Office of Community Oriented Policing Services (COPS Office).
This publication serves as a companion to the guidance on this topic issued by the department on Dec. 15, 2015, and summarizes a roundtable discussion hosted on Aug. 4, 2015. The roundtable was hosted by the COPS Office and the Police Executive Research Forum, in partnership with the department’s Office on Violence Against Women and Civil Rights Division. The roundtable provided an opportunity for stakeholders to share feedback on the department’s guidance. The final guidance, which includes that feedback, has been embraced by multiple law enforcement and advocacy organizations.
“As a retired police chief with close to 30 years in the field, I believe the lessons learned from this publication serve as a stark reminder of the need to ensure victims of sexual assault and domestic violence are not further victimized by gender bias – whether intentional or implicit,” said COPS Office Director Ronald Davis. “I recommend that every law enforcement executive read this report.”
The publication provides recommendations from law enforcement officers and executives, victim advocates, academics, and subject matter experts who attended the August roundtable, and shared insights on improving law enforcement response to victims of sexual assault and domestic violence, particularly amongst vulnerable populations such as the lesbian, gay, bisexual and transgender community; racial, cultural and religious minorities; and immigrants.
The publication recommends:
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Addressing gender bias in agency culture through officer training and accountability;
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Developing clear policies, resources, and partnerships; and
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Applying a survivor-centered approach.
The COPS Office, headed by Director Ronald Davis, is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
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Convicted Felon from Albuquerque Sentenced to Seven Years for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pete Pasqual Chavez, 36, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison for being a felon in possession of a firearm. Chavez will be on supervised release for three years after he completes his prison sentence.
Chavez was arrested on Sept. 16, 2015, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Sept. 14, 2015, in Bernalillo County, N.M. According to the complaint, on Sept. 14, 2015, officers of the Albuquerque Police Department (APD) responded to the La Quinta Inn on San Antonio Blvd. NW in Albuquerque after Chavez told hotel personnel that he had just shot a person who was breaking into his vehicle. Upon arrival, the APD officers found a firearm under Chavez’s vehicle. Thereafter the officers executed search warrants for Chavez’s hotel room and vehicle. In the vehicle, the officers found a single projectile that was removed from the inside of the passenger door and a box of Perfecta .45 caliber ammunition. In Chavez’s hotel room, the officers found four rounds of Perfecta .45 caliber ammunition. In the bushes outside Chavez’s room, the officers found a firearm loaded with ten rounds of Perfecta .45 caliber ammunition.
Chavez was indicted on Oct. 7, 2015, and charged with being a felon in possession of a firearm and ammunition. Chavez was prohibited from possessing firearms or ammunition, because he previously had been convicted of attempting to traffic a controlled substance with intent to distribute, possession of a controlled substance, tampering with evidence, shooting from or into a vehicle and use of a telephone to facilitate a drug trafficking crime. Chavez pled guilty to the indictment on Dec. 23, 2015.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD.
Assistant U.S. Attorney Norman Cairns prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Columbus Man Sentenced to 240 Months for Creating Child Pornography of 14-Month-OldRead the Press Release
COLUMBUS, Ohio – Steven R. Trent, 46, of Columbus, was sentenced in U.S. District Court to 240 months in prison for using a minor female under the age of 2 years to engage in sexually explicit conduct for the purpose of producing child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, Trent took photographs of the genitalia of a 14-month-old female and his own genitalia on or attempting to penetrate the victim.
Trent pleaded guilty on December 15, 2015 to one count of production of child pornography. He was also sentenced to 20 years of supervised release and ordered to register as a sex offender.
“The nature and circumstances of the defendant’s offense are nothing short of horrendous,” Acting U.S. Attorney Glassman said.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI and Columbus Division of Police, as well as Assistant United States Attorney Heather A. Hill, who is representing the United States in this case.
Colombian Man Pleads Guilty to Drug ChargeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Anderson Bryan Lever (39, Colombia, South America) today pleaded guilty to conspiring with others to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison.
According to the plea agreement, on multiple occasions between 2009 and 2013, Lever worked with others to smuggle cocaine into the United States. He repeatedly dispatched cocaine-laden vessels, carrying between 550 and 1,000 kilograms of cocaine, from San Andres Island (SAI), Colombia to Honduras. On each occasion, Lever recruited and paid at least four mariners per vessel.
Lever’s co-conspirators received the cocaine shipments in Honduras and then provided bales of United States currency (containing as much as $500,000 each) to the mariners who had just smuggled the cocaine. The mariners then smuggled the money back to Lever, and the cocaine was transferred to others for eventual unlawful importation into the United States. In total, the mariners Lever hired Lever successfully smuggled in excess of 10,000 kilograms of cocaine.
Lever was arrested on SAI, Colombia, and subsequently extradited to the United States.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) investigation, comprised of agents and analysts from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. This case is being prosecuted by Assistant United States Attorney Christopher F. Murray. The Office of International Affairs, Department of Justice, assisted with Lever’s extradition from Colombia.
Cleveland man indicted for making threats against the President and a candidateRead the Press Release
A two-count indictment was filed in federal court charging a Cleveland man with making threats against the President and a presidential candidate, said Acting U.S. Attorney Carole S. Rendon.
Jonathan W. Smead, 35, did knowingly and willingly make a threat to take the life of, and to inflict bodily harm upon and against the President of the United States on Feb. 28. Smead also knowingly and willingly made a threat to take the life of, and to inflict bodily harm upon Hillary Clinton on Feb. 28, according to the indictment.
According to a criminal complaint filed in the case:
On Feb. 28 at approximately 10:16 CST, the U.S. Secret Service, Chicago Field Office received a call, which was forwarded to the Secret Service’s Cleveland Office. The caller stated “I want to kill President Obama.” The caller continued to speak about past assassins including John Wilkes Booth and Lee Harvey Oswald. The caller then stated he “wants to kill Hillary Clinton.” The caller then identified himself as Jonathan Smead and provided is Social Security number, date of birth, and said he is living with his grandmother on Spring Road in Cleveland. Finally, Smead stated he “wants federal charges, not little state charges.”
Smead was interviewed on Feb. 29. He admitted to making the phone call and said he had been drinking alcohol prior to making the call. He said he does not wish harm on the President or Clinton. He stated he had recently been watching the television show “The West Wing” and he is very interested in past presidents, specifically Abraham Lincoln and John F. Kennedy. He stated he visited the Texas Book Depository years ago as a tourist. During a consensual search, agents located two books in Smead’s bedroom related to the Kennedy assassination.
This case is being investigated by the U.S. Secret Service, with assistance from the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Kevin Filiatraut.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted for distributing fentanyl that killed womanRead the Press Release
A two-count indictment was filed in federal court charging a Cleveland man with distributing fentanyl that killed a woman last year, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Robert J. Johnson, 26, was indicted on two counts of distribution of fentanyl. The charges stem from sales of fentanyl that took place on Aug. 25 and 27, 2015. The Aug. 25 sale resulted in the death of another person, according to the indictment.
That count carries a sentencing enhancement that can result in a 20-year mandatory minimum penalty.
“Fentanyl abuse has caused on unprecedented wave of overdose deaths in our community over the past few weeks,” Rendon said. “The only way we can stem this tide is with a comprehensive approach focused on prevention, treatment, prescribing practices and enforcement. And on the enforcement side, we will continue to aggressively prosecute those who continue to peddle this poison in our community.”
“The heroin epidemic affects not only those who fall victim to drug abuse, but family members, friends, and the community as a whole,” Cleveland Police Commander Gary Gingell said. “Now more than ever it is imperative that those trafficking in heroin are held accountable for their actions as they are responsible for not only promoting drug use, but for the deaths of these victims. I am proud to say that the Cleveland Division of Police partners with the United States Attorney’s Office to ensure that these cases are prosecuted to the fullest extent of the law.”
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Cleveland Division of Police, with assistance from the Cuyahoga County Medical Examiner’s Office.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chinese National Pleads Guilty to Conspiring to Hack into U.S. Defense Contractors’ Systems to Steal Sensitive Military InformationRead the Press Release
LOS ANGELES – A Chinese national pleaded guilty today to participating in a years-long conspiracy to hack into the computer networks of major United States defense contractors, steal sensitive military and export-controlled data, and send the stolen information to China.
Su Bin, who is also known as Stephen Su and Stephen Subin, 50, a citizen and resident of the People’s Republic of China, pleaded guilty before United States District Judge Christina A. Snyder.
The guilty plea was announced by United States Attorney Eileen M. Decker Assistant Attorney General for National Security John P. Carlin, Assistant Director Jim Trainor of the FBI’s Cyber Division and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division.
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
In a plea agreement filed yesterday in United States District Court, Su admitted to conspiring with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States, including computers belonging to the Boeing Company in Orange County, California, to obtain sensitive military information and to export that information illegally from the United States to China.
“Protecting our national security is the highest priority of the U.S. Attorney’s Office, and cybercrime represents one of the most serious threats to our national security,” said United States Attorney Decker. “The innovative and tireless work of the prosecutors and investigators in this case is a testament to our collective commitment to protecting our nation’s security from all threats. Today’s guilty plea and conviction demonstrate that these criminals can be held accountable no matter where they are located in the world and that we are deeply committed to protecting our sensitive data in order to keep our nation safe.”
“Su Bin admitted to playing an important role in a conspiracy, originating in China, to illegally access sensitive military data, including data relating to military aircraft that are indispensable in keeping our military personnel safe,” said Assistant Attorney General Carlin. “This plea sends a strong message that stealing from the United States and our companies has a significant cost; we can and will find these criminals and bring them to justice. The National Security Division remains sharply focused on disrupting cyber threats to the national security, and we will continue to be relentless in our pursuit of those who seek to undermine our security.”
As part of the conspiracy, Su would e-mail the co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators would then gain access to information residing on computers of U.S. companies and email Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, including by using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, Su and his co-conspirators each wrote, revised and emailed reports about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities.
“Cyber security is a top priority not only for the FBI but the entire U.S. government,” said Assistant Director Trainor. “Our greatest strength is when we harness our capabilities to work together, and today’s guilty plea demonstrates this. Our adversaries’ capabilities are constantly evolving, and we will remain vigilant in combating the cyber threat.”
“This investigation demonstrates the FBI’s resolve in holding foreign cyber actors accountable regardless of where they reside,” said Assistant Director in Charge Bowdich. “Cybercrime investigators in Los Angeles are among the finest and their efforts toward preserving America's national security in this case should be commended.”
Su’s plea agreement makes clear that the information he and his co-conspirators intentionally stole included data listed on the United States Munitions List contained in the International Traffic in Arms Regulations. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his conspirators illegally acquired.
As a result of today’s guilty plea, Su faces a maximum possible sentence of five years’ in federal prison and a fine of $250,000 (or twice the gross gain or gross loss resulting from the offense, whichever is greatest).
Judge Snyder is scheduled to sentence Su on July 13.
This case is being prosecuted by Assistant United States Attorney Anthony J. Lewis of the Terrorism and Export Crimes Section and Trial Attorney Casey Arrowood and Senior Trial Attorney Robert E. Wallace of the National Security Division’s Counterintelligence and Export Control Section, with support from the Justice Department’s Office of International Affairs.
The case is being investigated by the Cyber Division of the FBI Los Angeles Field Office’s Cyber Division with assistance from the United States Air Force’s Office of Special Investigations.
Chinese National Pleads Guilty to Conspiring to Hack into U.S. Defense Contractors’ Systems to Steal Sensitive Military InformationRead the Press Release
A Chinese national pleaded guilty today to participating in a years-long conspiracy to hack into the computer networks of major U.S. defense contractors, steal sensitive military and export-controlled data and send the stolen data to China.
Su Bin, also known as Stephen Su and Stephen Subin, 50, a citizen and resident of the People’s Republic of China, pleaded guilty before U.S. District Judge Christina A. Snyder of the Central District of California.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director Jim Trainor of the FBI’s Cyber Division and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division.
A criminal complaint filed in 2014 and subsequent indictments filed in Los Angeles charged Su, a China-based businessman in the aviation and aerospace fields, for his role in the criminal conspiracy to steal military technical data, including data relating to the C-17 strategic transport aircraft and certain fighter jets produced for the U.S. military. Su was initially arrested in Canada in July 2014 on a warrant issued in relation to this case. Su ultimately waived extradition and consented to be conveyed to the United States in February 2016.
“Su Bin admitted to playing an important role in a conspiracy, originating in China, to illegally access sensitive military data, including data relating to military aircraft that are indispensable in keeping our military personnel safe,” said Assistant Attorney General Carlin. “This plea sends a strong message that stealing from the United States and our companies has a significant cost; we can and will find these criminals and bring them to justice. The National Security Division remains sharply focused on disrupting cyber threats to the national security, and we will continue to be relentless in our pursuit of those who seek to undermine our security.”
“Protecting our national security is the highest priority of the U.S. Attorney’s Office, and cybercrime represents one of the most serious threats to our national security,” said U.S. Attorney Decker. “The innovative and tireless work of the prosecutors and investigators in this case is a testament to our collective commitment to protecting our nation’s security from all threats. Today’s guilty plea and conviction demonstrate that these criminals can be held accountable no matter where they are located in the world and that we are deeply committed to protecting our sensitive data in order to keep our nation safe.”
“Cyber security is a top priority not only for the FBI but the entire U.S. government,” said Assistant Director Trainor. “Our greatest strength is when we harness our capabilities to work together, and today’s guilty plea demonstrates this. Our adversaries’ capabilities are constantly evolving, and we will remain vigilant in combating the cyber threat.”
“This investigation demonstrates the FBI’s resolve in holding foreign cyber actors accountable regardless of where they reside,” said Assistant Director in Charge Bowdich. “Cybercrime investigators in Los Angeles are among the finest and their efforts toward preserving America's national security in this case should be commended.”
In the plea agreement filed yesterday in the U.S. District Court of the Central District of California, Su admitted to conspiring with two persons in China from October 2008 to March 2014 to gain unauthorized access to protected computer networks in the United States, including computers belonging to the Boeing Company in Orange County, California, to obtain sensitive military information and to export that information illegally from the United States to China.
As part of the conspiracy, Su would e-mail the co-conspirators with guidance regarding what persons, companies and technologies to target during their computer intrusions. One of Su’s co-conspirators would then gain access to information residing on computers of U.S. companies and email Su directory file listings and folders showing the data that the co-conspirator had been able to access. Su then directed his co-conspirator as to which files and folders his co-conspirator should steal. Once the co-conspirator stole the data, including by using techniques to avoid detection when hacking the victim computers, Su translated the contents of certain stolen data from English into Chinese. In addition, Su and his co-conspirators each wrote, revised and emailed reports about the information and technology they had acquired by their hacking activities, including its value, to the final beneficiaries of their hacking activities.
Su’s plea agreement makes clear that the information he and his co-conspirators intentionally stole included data listed on the U.S. Munitions List contained in the International Traffic in Arms Regulations. Su also admitted that he engaged in the crime for the purpose of financial gain and specifically sought to profit from selling the data the he and his co-conspirators illegally acquired.
Su faces a maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest. Judge Snyder is scheduled to sentence Su on July 13, 2016.
The case is being investigated by the FBI Los Angeles Field Office’s Cyber Division with assistance from the U.S. Air Force’s Office of Special Investigations.
This case is being prosecuted by Assistant U.S. Attorney Anthony J. Lewis of the Central District of California and Trial Attorney Casey Arrowood and Senior Trial Attorney Robert E. Wallace of the National Security Division’s Counterintelligence and Export Control Section, with support from Lisa Roberts of the Justice Department’s Office of International Affairs.
Su Bin Plea Agreement
Charleston heroin dealer sentenced to Federal prison on drug chargeRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced that a Charleston drug dealer was sentenced today to a year and a day in federal prison for a heroin crime. Thomas Kerr Clements, 53, previously pleaded guilty to distribution of heroin.
Clements admitted that on May 27, 2015, he sold heroin to a confidential informant working with law enforcement authorities. The drug deal took place at the defendant’s residence, located in the Rand area of Charleston.
This case was investigated by the Kanawha County Sheriff’s Department, Sheriff’s Tactical Operations Patrol Team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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California Man Indicted for Traveling to Thailand and Sexually Abusing Minor BoysRead the Press Release
LOS ANGELES – A resident of Montrose was indicted today in a superseding indictment by a federal grand jury in Los Angeles on charges of engaging in illicit sexual conduct in foreign places and sex trafficking of a minor, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Eileen M. Decker announced today.
Paul Alan Shapiro, 69, was originally indicted on April 22, 2015, on charges relating to his travel to Thailand and illicit sexual conduct with minor boys.
According to the indictment, in February 2010, Shapiro traveled from Los Angeles to Thailand, where Shapiro paid minors as young as 14 years old small amounts of local currency in order to engage in various sex acts with them. Shapiro also allegedly took photographs of himself engaging in sexually explicit conduct with the boys.
“Child predators cannot flee the United States in the hope of having a safe haven for their criminal conduct,” said United States Attorney Eileen M. Decker. “To protect the most vulnerable among us, my office will pursue Americans who seek to exploit children in other countries.”
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating the case. Trial Attorneys Austin M. Berry and Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
“This indictment should serve as a warning to sexual predators who mistakenly believe they can escape justice by exploiting children overseas,” said Joseph Macias, special agent in charge for HSI Los Angeles. “There is no tolerance for the sexual abuse of foreign children by our citizens, and HSI will work closely with our law enforcement counterparts throughout the world to ensure these criminals face justice.”
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Earlier this month, a Northern California man was found guilty in United States District Court in Los Angeles of traveling to Cambodia to have illicit sexual conduct with young girls (see: http://go.usa.gov/cAgP9).
California Man Indicted for Traveling to Thailand and Sexually Abusing Minor BoysRead the Press Release
A resident of Montrose, California, was indicted today in a superseding indictment by a federal grand jury in Los Angeles on charges of engaging in illicit sexual conduct in foreign places and sex trafficking of a minor, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Eileen M. Decker of the Central District of California announced today.
Paul Alan Shapiro, 69, was originally indicted on April 22, 2015, on charges relating to his travel to Thailand and illicit sexual conduct with minor boys.
According to the indictment, in February 2010, Shapiro traveled from Los Angeles to Thailand, where Shapiro paid minors as young as 14 years old small amounts of local currency in order to engage in various sex acts with them. Shapiro also allegedly took photographs of himself engaging in sexually explicit conduct with the boys.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating the case. Trial Attorneys Austin M. Berry and Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bonita Springs Man Sentenced to 8 Years in Federal Prison for Distributing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Christopher Hall (45, Bonita Springs) to eight years in federal prison for distributing child pornography. The Court also ordered him to forfeit the computers he had used to commit the offense. Hall pleaded guilty on November 30, 2015.
According to court documents, on May 9, 2014, an undercover FBI Task Force agent discovered that Hall was sharing child pornography using a peer-to-peer file sharing network. A federal search warrant was then executed at Hall’s residence and his computers were seized. Forensic analyses subsequently revealed more than 2,500 images of child pornography and 9 videos depicting child pornography on those computers. Hall admitted that he had lived alone and was the only person who had used his computers, and that he never shared his secured Internet connection with anyone. He stated that he began downloading child pornography ten years ago.
This case was investigated by the Federal Bureau of Investigation, FBI Child Exploitation Task Force. It was prosecuted by Assistant United States Attorney Charles D. Schmitz.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bennington County Pizza Restauranteur Arrested in Connection with October 2015 Seizure of More Than 80 Pounds of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Marco Antonio Lam Peralta, 42, of South Londonderry, Vermont was arrested yesterday based upon an arrest warrant issued by the United States District Court upon a Criminal Complaint charging Lam Peralta with conspiracy to distribute heroin, a schedule I controlled substance.
As explained in the Criminal Complaint, this case relates to Homeland Security Investigations (HSI) early October 2015 seizure in Miami of a shipment from Guatemala containing more than 40 kilograms of heroin. The shipment was destined for an address in Manchester Center, Vermont. On October 8, 2015, police arrested Diego Mejia Paredes upon his taking delivery of that shipment. The Grand Jury subsequently returned a one count indictment against Mejia Paredes charging possession with intent to distribute more than a kilogram of heroin in connection with the October 8, 2015 delivery. That prosecution is pending.
As explained in the Criminal Complaint against Lam Peralta, additional investigation by the HSI, the Drug Enforcement Administration (DEA), the Vermont State Police (“VSP”), and the United States Border Patrol (USBP) has revealed that Mejia Paredes was working with Lam Peralta in connection with the intercepted shipment, as well as previous shipments from Guatemala which law enforcement believes contained heroin.
United States Attorney Eric S. Miller observed that yesterday’s arrest was the result of extraordinary investigative coordination between DEA, HSI, VSP, and USBP. “The arrest of Mr. Lam Peralta is the result of extraordinary effort by, and cooperation among, DEA, HSI, VSP, and USBP. I am once again pleased to see our federal and State partners working so closely together to stem the flow of heroin into Vermont.”
"As heroin use continues to plague our communities, our collaborative efforts with law enforcement partners serve as a great way to fight back to stem the tide of this dangerous and deadly epidemic," said Matt Etre, special agent in charge of HSI New England. "HSI and our federal, state, and local law enforcement partners are committed to putting an end to this growing scourge."
The United States Attorney emphasizes that all persons charged with crimes, including Lam Peralta, are presumed innocent unless and until they are convicted at trial or pursuant to a guilty plea.
Lam Peralta made his initial appearance before United States Magistrate Judge John M. Conroy this afternoon. He was ordered held in the custody of the United States Marshal’s Service pending a detention hearing, which is scheduled for Monday, March 28, at 1:30pm.
Lam Peralta is represented by Craig Nolan, Esq., of Burlington. Assistant United States Attorney Michael Drescher is the prosecutor.
Barren County, Kentucky, Man Guilty of Defrauding Supplemental Security AdministrationRead the Press Release
Defendant misrepresented his mental condition to qualify for benefits
Ordered to pay restitution to victim agencies
BOWLING GREEN, Ky. – A Cave City, Kentucky, man pleaded guilty in United States District Court today, before District Judge Greg N. Stivers, to defrauding the Supplemental Security Administration because he failed to report income and falsely misrepresented his mental condition in order to receive Supplemental Security Income benefits announced U.S. Attorney John E. Kuhn, Jr.
In court, Gary Hank Thompson, 33, admitted that between August 2009 and April 2013, he made misrepresentations in order to receive Supplemental Security Income benefits from the Social Security Administration in the amount of $24,884, to which he was not entitled. Supplemental Security Income is a federal government program that provides benefits to individuals who are disabled and have limited income and resources.
In his initial application for Supplemental Security Income, Thompson also applied for Medicaid, and during the same period, obtained $81,831.27 in Medicaid benefits.
At various points, including during the initial field interview with Social Security Administration personnel in August 2009, and during the April 15, 2013, redetermination meeting with Social Security Administration personnel in Warren County, Kentucky, defendant Thompson falsely represented his mental condition by slowing his speech and stuttering, and generally saying and doing things to make it seem that he had issues with comprehension, when he did not. Defendant misrepresented his mental condition in this way to qualify for benefits and to continue qualifying for Supplemental Security Income benefits. Thompson’s misrepresentations of his mental condition were material to whether he would receive Supplemental Security Income benefits, as he initially qualified under “organic mental disorders.” When the Social Security Administration was provided with accurate information concerning the Defendant’s mental condition, it reevaluated whether he qualified for Supplemental Security Income and determined he did not.
Additionally, the Defendant made material omissions and misstatements regarding his income and resources, which affected his eligibility for Supplemental Security Income benefits. Between August 2009 and April 2013, the Defendant made multiple statements to the Social Security Administration that he had no gifts, income, or resources. This was not in fact true, as the Defendant later admitted he failed to report amounts of up to $40 a day that he made panhandling, which would have affected his eligibility for Supplemental Security Income benefits.
At sentencing, before Judge Stivers, on June 28, 2016, in Bowling Green, the United States will recommend a 27 month sentence and an order for Thompson to pay restitution of $24,884 to the Supplemental Security Administration and $81,831.27 to the Kentucky Department for Medicaid Services, the victim agencies.
This case is being prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Office of the Inspector General of the Social Security Administration.
Bank Employee Facing 44 Charges of Theft, Embezzlement and Misappropriation of FundsRead the Press Release
PITTSBURGH - A resident of Bentleyville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of theft, embezzlement, and misappropriation by a bank employee, United States Attorney David J. Hickton announced today.
The 44-count indictment returned yesterday named Jessica N. Scola, 32, as the sole defendant.
According to the indictment, Scola, on 44 occasions between Jan. 2, 2015 and April 16, 2015, while employed at PNC Bank, embezzled and misapplied the bank's funds through electronic transfers, draft checks, and ATM withdrawals.
The law provides for a maximum sentence of 30 years in prison, a fine of $1,000,000, or both, at each count of the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The U.S. Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baldwin Twp. Woman Charged with Stealing Social Security BenefitsRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government money, United States Attorney David J. Hickton announced today.
The one-count indictment returned yesterday named Rosemary Thomas, 64, as the sole defendant.
According to the indictment, from January 2001 to February 2014, Thomas converted to her own use $98,949 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefits of another individual - benefits she knew she was not entitled to use.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Atlanta Doctor Who Was a Self-Proclaimed “Private Sovereign Citizen” Sentenced to Prison for Tax EvasionRead the Press Release
ATLANTA – Dr. Debra Johnson-Jordan, who claimed for seven years that she was a “private sovereign citizen” and not subject to federal income tax laws, has been sentenced to one year and one day in federal prison after pleading guilty to a federal tax evasion charge.
“Hard-working taxpayers should not have to shoulder the burden for people, like Dr. Johnson-Jordan, who fail to pay their taxes because of spurious claims that they’re above the law,” said U.S. Attorney John Horn. “This case shows that there are serious consequences for those who intentionally avoid their tax obligations.”
“The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States – those honest taxpayers who diligently file tax returns each year. It is our hope that today's sentence will send a strong message, that schemes to avoid paying taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Johnson-Jordan, who practiced medicine in East Point, Georgia, failed to file income tax returns and pay federal income taxes from at least 1997 to 2014. Johnson-Jordan maintained she was exempt from paying federal income taxes despite earnings in excess of $1.5 million dollars because she claimed she was a “private sovereign citizen” and not subject to federal income tax laws. She ignored numerous notices from the IRS explaining her tax liability and warning of criminal penalties if she failed to comply with tax laws. Despite these warnings, Johnson-Jordan sent correspondence to her employer, the IRS and the U.S. Attorney’s office raising frivolous arguments and continued to challenge her tax liability until she was indicted in August 2015.
Debra Johnson-Jordan, 58, of Winder, Georgia, was sentenced to one year, one day in federal prison, three years of supervised release, $100 special assessment, 60 hours of community service and restitution in the amount of $464,432.00 to the IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Bank Robber Convicted by Las Vegas Federal JuryRead the Press Release
LAS VEGAS, Nev. – One of two local men who violently robbed a Summerlin bank in January 2015, has been convicted by a federal jury of multiple felony counts, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Jerome Michael Bell, 26, of Las Vegas, was convicted on March 22, 2016, of one count of conspiracy to commit armed bank robbery, one count of armed bank robbery, and one count of using and carrying a firearm during a crime of violence. Bell faces up to five years in prison on the conspiracy charge, up to 20 years in prison on the armed bank robbery charge, and a minimum of seven years consecutive on the firearm charge. He is scheduled to be sentenced by U.S. District Judge James C. Mahan on June 20, at 10 a.m.
“Using a firearm to rob a bank or commercial establishment is a very serious offense and typically harms multiple victims,” said U.S. Attorney Bogden. “We are working with our local police departments and the FBI to make sure these violent criminals are brought to justice, convicted and sentenced in the federal system.”
The co-conspirator, DeShawn Walker, 26, pleaded guilty on March 1 to conspiracy to commit bank robbery and one count of using and carrying a firearm during a crime of violence and is scheduled to be sentenced on June 1, at 10 a.m.
According to the court records and information submitted to the jury, on Jan. 2, 2015, at approximately 8:44 a.m., Bell and Walker entered the Summerlin bank wearing dark clothing, hooded sweatshirts, face coverings, and dark gloves. Bell was brandishing a loaded handgun and pointing it at the tellers, and Walker grabbed an employee from an office and threatened to kill the employee and a teller if they did not meet their demands. Bell robbed some of the tellers of their money, and then they forced all but one of the employees into a small room. Bell then demanded that the remaining employee open the vault, but when the employee was unable to do so, Bell and Walker ran from the bank with the stolen money. Bell left his revolver at one of the teller stations and they fled in a vehicle that had been rented by one of Bell’s relatives. Law enforcement agents and officers tracked the vehicle to an east-side location in Las Vegas and observed the vehicle crash into a truck. Bell was apprehended following a short foot pursuit, and Walker had jumped out of the vehicle before the crash and was apprehended from a shed in an individual’s back yard.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force. The case was prosecuted by Assistant U.S. Attorneys Kathryn Newman and Brandon Jaroch
Animal Rights Activist Sentenced to Six Months of Home Confinement for Vandalizing a Farm and Releasing 2,000 Mink from CagesRead the Press Release
CHICAGO — A Los Angeles man was sentenced today to six months of home confinement for vandalizing a Grundy County fur farm and releasing more than 2,000 mink from their cages.
After releasing the mink, TYLER LANG and an accomplice spray painted the barn with the words, “Liberation is Love.” The pair also poured an acidic substance over two trucks that were parked on the farm in Morris, Ill.
Lang, 27, pleaded guilty last year to one count of conspiring to travel in interstate commerce with the purpose of damaging an animal enterprise.
U.S. District Judge Amy J. St. Eve sentenced Lang to three months’ time already served in prison, six months of community confinement and six months of home confinement, followed by one year of supervised release.
“Lang was not engaging in lawful activism or peaceful protest, but instead was committing a crime,” Assistant U.S. Attorney Bethany K. Biesenthal argued in the government’s sentencing memorandum. “The use of illegal methods of activism – harassment, threats, vandalism – does nothing more than taint the image of law-abiding activists who are attempting to create change through legal protest and lawful demonstration.”
The accomplice, KEVIN JOHNSON, of Los Angeles, pleaded guilty last year to the same charge as Lang. Judge St. Eve sentenced Johnson last month to three years in prison.
The vandalism and releasing of the mink occurred on Aug. 13, 2013. The mink farmers, with assistance from law enforcement, were able to recover 1,600 of the animals. The remaining mink died or were never found. Lang and Johnson also destroyed cards from the cages that identified the breed of each animal, making it impossible to determine the breed of the recovered minks.
The sentencing of Johnson was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is represented by Ms. Biesenthal and Assistant U.S. Attorney William Ridgway.
Allentown Man Sentenced to 14 Years in Prison for 2012 White Jewelers RobberyRead the Press Release
HARRISBURG - The United States Attorney=s Office for the Middle District of Pennsylvania announced that Timothy Forbes, 34, of Allentown, Pennsylvania was sentenced today to 14 years by the Honorable William W. Caldwell for Forbes’ robbery conviction following a September 2015 plea.
According to United States Attorney Peter Smith, Forbes, along with Jamell Smallwood and Jesse Brewer, robbed the White Jewelers in York, Pennsylvania of more than fifty Rolex watches valued at over $500,000 on July 12, 2012. In the course of the robbery, Brewer shot the owner of the store, permanently disabling him. Brewer went to trial in September 2015 and a jury convicted him of robbery and firearms offenses. On February 24, 2016, he was sentenced to life imprisonment plus 20 years. Co-defendant Jamell Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years for his role in this robbery.
This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown and New York City Police Departments. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
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Albion Man Sentenced for Importing Α-PvpRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Donald Stirk, 36, of Albion, NY, who was convicted of importing α-PVP into the United States, was sentenced to 48 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on March 5, 2015, Customs and Border Protection officers in Memphis, Tennessee conducted a routine inspection of a package mailed from China and addressed to the defendant in Albion. The inspection revealed that the package contained α-PVP (sometimes known as “flakka”), a Schedule I controlled substance. On March 13, 2015, law enforcement officers inspected another package from China addressed to the defendant, this time at the Albion Post Office, which again revealed α-PVP. Subsequent investigation revealed more such packages at the Albion Post Office. On April 15, 2015, officers performed a controlled delivery of several of the packages to the defendant at his Albion residence and then executed a search warrant at the residence revealing an additional quantity of α-PVP.
The sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Alabama’s First Day Reporting Center for Ex-offenders Open in BirminghamRead the Press Release
BIRMINGHAM – The Alabama Board of Pardons and Paroles hosted an open house Monday at the state’s first Day Reporting Center in Birmingham. The ceremony showcased the probation and parole officers and other staff, along with treatment providers and community partners who will make the program possible, announced Center Director Benita Daugharty and U.S. Attorney Joyce White Vance.
The non-residential, three-phase reporting center program will offer medium- to high-risk probationers and parolees in the Jefferson County area access to services, including targeted drug treatment, substance abuse intervention and rehabilitation, cognitive behavioral therapy, educational training, and assistance with employment. The program will require participants to perform community service and will foster opportunities for participants to positively transform criminal attitudes, behaviors, values and beliefs.
The program is made possible by a $687,176 Department of Justice, Bureau of Justice Assistance grant.
The DRC is an evidence-based program, modeled after the State of Georgia’s network of day reporting centers serving both urban and rural areas of the state. Alabama’s goal is to expand the program into a network of centers strategically placed to serve those areas of the state that would receive the most benefit. Mobile will be home to Alabama’s next DRC.
Pardons and Paroles Executive Director Phil Bryant stated his strong support for the reentry-minded endeavor. “The dedication of leadership at Pardons and Paroles, among DRC staff, local stakeholders and community partners, as well that of U.S. Attorney for the Northern District of Alabama, Joyce Vance, have all been critical for getting this program up and running,” he said. “Ongoing support will continue to be critical to the success of this program, which is currently serving its first 20 participants. We look forward to measuring the success of this program with help from our research partner and technical assistance provider,” Bryant said.
Board of Pardons and Paroles Chairman Cliff Walker also voiced his support for programming like the DRC to help strengthen the reentry process for offenders being paroled in Alabama. He likened the reentry process in Alabama to a boat full of holes that cannot rise with the tide until the holes – such as lack of employment opportunities, education, and family support -- can be plugged. He championed the DRC as a program that is geared towards filling those holes.
“The evidence that led Alabama to adopt prison reform suggests that when money saved by reducing the number of people in state prison is reinvested in community services to help those people successfully reenter their communities, we can reduce crime while saving on the cost of running our prison system,” Vance said. “The day reporting center in north Birmingham is an outstanding example of a program that seeks to reduce crime through prevention, enforcement and reentry services,” she said. “The center will follow best practices that have been proven in other states to reduce recidivism among ex-offenders.”
Abingdon Woman Sentenced on Methamphetamine ChargeRead the Press Release
ABINGDON, VIRGINIA – An Abingdon woman who was part of a conspiracy to distribute methamphetamine, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Shanna Danielle Moorefield, 29, of Abingdon, Virginia, previously pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine. Today in District Court, Moorefield was sentenced to 42 months in federal prison and three years of supervised release thereafter.
“Methamphetamine, especially this powerful ‘ice’ form of methamphetamine,’ destroys the lives of those addicted to this dangerous drug,” United States Attorney John P. Fishwick Jr. said today. “My office will continue to be vigilant in working with our local, state and federal law enforcement partners to prosecute those who profit off the addictions of others.”
Moorefield was part of a conspiracy that operated in Southwest Virginia, Eastern Kentucky and Tennessee and transported and distributed “ice” methamphetamine in the area.
The investigation of the case was conducted by the Bristol Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Bristol Office of the Drug Enforcement Administration, the Virginia State Police, the Sheriff's Offices of Washington County, Russell County, Tazewell County, and Smyth County, the Commonwealth's Attorney's Offices of Russell County and Tazewell County and the police departments of Abingdon and Lebanon. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
2 More in Identity Theft and Cigarette Trafficking Ring Sentenced to Federal PrisonRead the Press Release
Raleigh – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday, Chief United States District James C. Dever, III, sentenced MAMADOU LAMARANA BAH, 25, of New York, to serve 72 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. The sentence follows a prior hearing on January 26, 2016 in which codefendant ALPHA OUMAR DIALLO, 24, of New York, was sentenced to 95 months in prison and 3 years of supervised release. BAH and DIALLO were also both ordered to make restitution to victims.
The indictment charged that DIALLO and BAH engaged in a scheme to acquire, among other things, large quantities of cigarettes in North Carolina and elsewhere using counterfeit gift cards. The gift cards utilized by DIALLO and BAH in the scheme were counterfeit because the data encoded in the magnetic strip of the cards had been altered to contain credit and debit card numbers that were not encoded upon them at the time they were manufactured. Conspirators acquired stolen credit and debit card data from sources on the internet. DIALLO and others received the stolen credit and debit card data in the form of internet email accounts to which they had access. Conspirators used the stolen credit and debit card data to fraudulently re-encode cards for later use to purchase cigarettes and other items.
The indictment further charged that after acquiring several counterfeit cards, DIALLO and BAH used the cards, and caused the cards to be used, to purchase numerous cartons of cigarettes. The conspirators would generally travel from one store to another in a vehicle during a single trip to acquire a large volume of cigarettes. After acquiring the cigarettes, conspirators would transport them to other states to be resold at a profit.
The scheme was brought to an end on January 31, 2014 when DIALLO AND BAH attempted to continue the fraud at a gas station Halifax County. The two were caught in possession of numerous counterfeit cards and other evidence of the crime.
Investigation of the case was conducted by the United States Secret Service, with the assistance of the Halifax County Sheriff’s Office, the Wake County Sherriff’s Office, and Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
22 March 2016
World Water Day ObservedRead the Press Release
CEDAR RAPIDS, IA – Safe, sufficient, and reliable water resources are essential to the functioning of every aspect and sector of United States society, including agricultural and energy production, industry and economic growth, human and environmental health, and national security. Because of its importance, today marks the international observance known as World Water Day.
World Water Day dates back to the 1992 United Nations Conference on Environment and Development where an international observance for water was recommended. The United Nations General Assembly responded by designating March 22, 1993, as the first World Water Day. It has been held annually since then.
A White House Water Summit is being held today to raise awareness of the importance of water, and to catalyze ideas and actions to help address these issues through innovative solutions. The event will be livestreamed at www.whitehouse.gov, and the public is invited to join in online using the hashtag #WHWaterSummit.
United States Attorney Kevin W. Techau noted that the observance of World Water Day provides an opportunity to learn more about water related issues. Techau noted, “The Department of Justice litigates a wide range of criminal and civil environment enforcement cases under the Clean Water Act. Clean water is a life-giving, life-sustaining resource for the people of Iowa and people across America. The Act was enacted more than four decades ago because Americans realized how critically important this resource is to all of us. I am proud that we continue to use this law to protect the precious resource of water today, here in Iowa.”
Early this year the Federal Court in Cedar Rapids signed a consent decree between the City of Waterloo, the United States and the state of Iowa, which requires the city to comply with the Clean Water Act and take all steps necessary to come into full compliance with the Act.
Last year a Remsen, Iowa, man was sentenced in Federal Court to be confined following his guilty plea to one count of knowingly discharging a pollutant into a waterway of the United States. The discharge resulted in a massive fish kill.
More recently the office filed a four count civil complaint against a concentrated animal feeding operation (CAFO) for discharges of manure and process wastewater being discharged into an unnamed tributary of the Big Sioux River. The complaint is merely an allegation and the named defendant is presumed not liable until shown otherwise. A trial date has not been set. The United States is seeking civil penalties and injunctive relief.
The Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. The basis of the CWA was enacted in 1948 and was called the Federal Water Pollution Control Act, but the Act was significantly reorganized and expanded in 1972. “Clean Water Act” became the Act's common name with amendments in 1972. It is one of the United States' first and most influential modern environmental laws. As with many other major U.S. federal environmental statutes, it is administered by the U.S. Environmental Protection Agency (EPA), in coordination with state governments.
Emergency events should be reported through the National Response Center at 1-800-424-8802; or on an Environmental Protection Agency form found at: www.epa.gov/enforcement/report-environmental-violations.
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Winchester Man Sentenced for Computer CrimeRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester man, who previously pled guilty to a federal computer crime, was sentenced today in the United States District for the Western District of Virginia in Harrisonburg, United States Attorney John P. Fishwick Jr. announced today.
Christopher Thomas Wood, 52, of Winchester, Virginia, previously pled guilty to one count of intentionally accessing and exceeding authorized access to a computer. Today in District Court, Wood was ordered to pay a fine of $2,000 and $61,710 in restitution.
“The prosecution of this case should serve as notice to everyone that the United States Attorney’s Office and our partners in law enforcement will investigate and punish those individuals who access protected computers without authorization,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney Grayson Hoffman through a filed statement of facts, Wood worked for a company, “Victim Company,” that had offices and operations in Winchester, Virginia. Wood worked as a web developer in the IT department at Victim Company.
On or about January 8, 2014, the defendant was fired from Victim Company. As a result, Victim Company deactivated Wood’s electronic credentials which had given him access to the company’s internal computer network and file server systems. Shortly after being fired, Wood went home to his residence in the Winchester area, and through his home computer, remotely logged onto Victim Company’s computer system using another employee’s credentials, without that employee’s knowledge or consent.
Wood accessed Victim Company’s database, without their consent, and deleted many files from the company’s servers and disabled some of Victim Company’s accounts. When Victim Company noticed the damage they contacted law enforcement.
On February 4, 2015, law enforcement investigators interviewed Wood at his home, at which time he admitted to logging onto the company’s computer system, without their consent, and while using another employee’s credentials. He admitted that he deleted files and disabled accounts because he was upset about losing his job. IP information obtained by investigators corroborate that a computer in Wood’s home did in fact access Victim Company’s computer systems. It was later determined that Victim Company spent approximately $61,710 as a result of the damage caused by the defendant’s actions.
The investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Grayson Hoffman is prosecuting the case for the United States.
Wilson Man Sentenced to 130 Months for Heroin Trafficking and Firearms ChargesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Terrence W. Boyle, sentenced DUPREE TURNER, 29, of Wilson, North Carolina, to a total of 130 months in prison and 5 years of supervised released for three counts of distribution of heroin, one count of possession of firearm by a felon and brandishing a firearm during and in relation to a drug trafficking crime. TURNER previously pled guilty to these charges on November 5, 2015.
Between January 22, 2015, and April 16, 2016, the Greenville Regional Drug Task Force and Wilson Police Department used informants to buy a total of 800 bags of heroin from TURNER during five controlled purchases in Greenville and Wilson. During the controlled purchase on April 16, 2015, TURNER possessed and brandished a handgun. TURNER was arrested in Greenville following the last purchase. Agents located two additional handguns during a search of TURNER’S residence in Wilson. TURNER was prohibited from possessing firearms due to his 2007 convictions in New Jersey for robbery, conspiracy to commit robbery and possession of a sawed-off shotgun.
The investigation of this case was conducted by the Greenville Regional Drug Task Force, the Wilson Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Wheeling woman pleads guilty to heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Alyssa Crow, 27, of Wheeling, pled guilty today to heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Crow sold heroin in November 2014 in Ohio County, West Virginia. She pled guilty today to one count of “Distribution of Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
United States Attorney Ihlenfeld prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Washington Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – Sergio Maldonado-Farias, 39, of Monroe, Washington, pleaded guilty today in United States District Court to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. He was charged by the U.S. Attorney’s Office on February 22, 2016.
According to the plea agreement, Maldonado-Farias had stopped his vehicle on the shoulder of I-84 near Jerome, Idaho. An Idaho State Police trooper arrived to assist Maldonado-Farias and subsequently asked for consent to search his vehicle. Mr. Maldonado-Farias granted consent and the officer located two bricks containing methamphetamine. The defendant admitted that he was transporting methamphetamine to distribute to another individual.
Sentencing is set for June 1 2016, before Senior United States District Judge Edward J. Lodge.
The charge of possession with intent to distribute methamphetamine is punishable by up to twenty years in prison, a maximum fine of $1,000,000, and up to three years of supervised release.
The case was investigated by the Drug Enforcement Agency and the Idaho State Police.
Waldorf Man Sentenced to 17 Years in Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Richard Spivey, age 52, of Waldorf, Maryland, today to 17 years in prison, followed by lifetime supervised release, for distribution of child pornography. U.S. District Judge George J. Hazel ordered that upon his release from prison, Spivey must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Spivey was taken into custody immediately following his guilty plea on September 25, 2015 and he remains detained.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to Spivey’s plea agreement, between January 29 and 30, 2014, Spivey used a file sharing program to distribute over 2,000 files depicting children engaged in sexually explicit conduct. A search warrant was executed at Spivey’s residence on June 18, 2014, and law enforcement seized numerous electronic devices, including a desktop computer, a laptop computer and two external hard drives. A forensic review of the electronic devices found thousands of image files and hundreds of movie files containing child pornography. Some of the files portrayed sadistic and masochistic conduct and other depictions of violence, as well as images of infants and toddlers.
In addition, on Spivey’s electronic devices law enforcement found videos that Spivey produced, depicting a prepubescent female in different stages of undress. Spivey admitted that he surreptitiously recorded the child while she was undressing, using a hidden camera. These videos constitute child pornography. Finally, Spivey also admitted surreptitiously producing videos of an adult female, while that person was in the bathroom in various stages of undress.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Kristi A. O’Malley, who prosecuted the case.
Virginia man charged with enticement of a minor and traveling with intent to engage in illicit sexual conductRead the Press Release
A Virginia man was charged in federal court with enticement of a minor and traveling with intent to engage in illicit sexual conduct, law enforcement officials said.
David Lee Boesen, 33, of Hampton, Virginia, was arrested last week at Cleveland Hopkins International Airport after he traveled to Cleveland in order to meet and engage in sexual activity with what he believed to be a 14-year old girl.
From September 2015 through March 2016, Boesen engaged in dozens of sexually explicit conversations over Facebook messaging and through phone conversations with what he believed to be a female child, according to court documents.
Boesen sent numerous images of pornography, and mailed several gifts, including panties, marshmallow hearts, Skittles, cash, a pink stuffed bear holding a heart with the word “Princess” and more candy. He also repeatedly asked what he believed to be a 13-year-old girl (and later, a 14-year-old) to send him explicit images of herself and to promise to engage in sexual conduct with him, according to court documents.
On March 6, Boesen indicated his mother was concerned about him going to Ohio to meet a girl because he had previously been in trouble for meeting an underage girl. The undercover agent suggested that maybe they should not meet if Boesen had concerns. He responded that he was not scared and that he would be together with her forever, according to court documents.
A public records search revealed Boesen’s address and that he is a registered sex offender, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by the Ohio Internet Crimes Against Children Task Force and U.S. Immigration and Customs Enforcement – Homeland Security Investigations.
If convicted, the defendant’s sentence will be determined by the Court after reviewing 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 and in most cases it will be less than the maximum.
An charges is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two plead guilty to defrauding banks of $2.5 million through fraudulent short sales of gas stations in Youngstown areaRead the Press Release
A man from Warren, Ohio, and an Indiana man pleaded guilty to defrauding banks out of approximately $2.5 million through fraudulent short sales of gas stations in the Youngstown area and by other means, law enforcement officials said.
Shaukat Sindhu, 56, of Warren, and Tahir Iqbal, 48, of Crown Point, Indiana, are scheduled to be sentenced June 21.
Iqbal pleaded guilty to two counts of conspiracy to commit bank fraud and three counts of bank fraud. Sindhu pleaded guilty to two counts of conspiracy to commit bank fraud, one count of corrupt interference with the administration of the Internal Revenue Service, and one count of marriage fraud.
“These defendants took advantage of a program designed to help troubled property owners and instead gamed it to enrich themselves,” Acting U.S. Attorney Carole Rendon said. “They will deservedly be trading their mansion for a prison cell.”
"These two defendants have accepted responsibility for structuring real estate transactions that defrauded banks out of millions of dollars and lined their personal pockets," said Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office. "The FBI will continue to hold fraudsters like these accountable for their criminal actions."
“Attempting to skirt your income tax obligations by using multiple Social Security numbers, dealing in cash, and concealing income and assets in the names of nominees is a recipe for criminal prosecution,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Sindhu owned several gas stations and other commercial property, but at times failed to make mortgage payments on these properties. Sindhu, Iqbal and others defrauded First Midwest and Consumers National banks by making false and misleading omission and representations about ownership of the properties between 2008 and 2014. Iqbal acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties, according to court documents.
Iqbal also served as a straw buyer for Sindhu for a 16,800-square foot, nine-bedroom, 13-bathroom home in Oak Brook, Illinois. That home will be forfeited as part of the plea agreement.
This case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice, Adam Hollingsworth and James Morford following an investigation by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations and U.S. Immigrations and Customs Enforcement.
Two drug dealers appear in Federal court for heroin crimesRead the Press Release
CHARLESTON, W.Va. – Two heroin dealers appeared today in federal court on drug charges, announced Acting United States Attorney Carol Casto. Gavin Edwards, 32, of South Charleston, was sentenced to five years in federal prison for distribution of heroin. Edwards was also sentenced today to a year in federal prison for violating his supervised release after he served a prison sentence for a 2008 felony drug conviction in federal court. The sentences were ordered to be served consecutively. In a separate prosecution, Justin Randolph, 27, of Charleston, pleaded guilty to distribution of heroin.
Edwards admitted that on December 8, 2014, he sold approximately half a gram of heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. Edwards completed the drug deal in the parking lot behind his apartment at 4832 Kanawha Turnpike Avenue in South Charleston. Edwards further admitted that on December 10, 2014, he sold the same confidential informant approximately 1.6 grams of heroin. On December 16, 2014, law enforcement executed a search warrant for the apartment and located over 250 grams of marijuana, over 250 grams of crack, and approximately $5,930 in cash. During the search, law enforcement also recovered an additional $1,569 in cash that Edwards had in his pockets.
In a separate heroin prosecution, Randolph admitted that on January 15, 2015, he sold heroin to a confidential informant working with the Kanawha County Sheriff’s Department. The drug deal took place in the parking lot of the Dunbar Kroger. Randolph faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 22, 2016.
The Metropolitan Drug Enforcement Network Team investigated the Edwards case. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
The investigation of Randolph was conducted by the Kanawha County Sheriff’s Department. Assistant United States Attorney John J. Frail is handling the prosecution. Randolph’s plea hearing was held before United States District Judge Thomas E. Johnston.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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