Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 22 January 2016
Assessment of the Seattle Police Department’s Office of Professional Accountability Filed with CourtRead the Press Release
SEATTLE – The assessment of the Seattle Police Department’s (SPD) Office of Professional Accountability (OPA) was filed with the Court today. The assessment constitutes the sixth – of 15 total – formal assessments by the Federal Monitor overseeing whether SPD is complying with the specific requirements and overall goals of the consent decree. The assessment examined the intake of complaints, and investigations of officer misconduct.
The previous five assessments – which can be found here and here – related to SPD’s use of force reporting investigations and found that, with respect to four of them, SPD was in “initial compliance” with the requirements of the consent decree. The assessment filed today was not designed to evaluate compliance with specific terms of the consent decree. Rather, it sought to provide information that would guide (1) revisions to two OPA policies and the OPA Training and Operations Manual (filed with the Court this week), and (2) the process currently underway for evaluating proposals to improve the civilian oversight and accountability system.
“At the heart of this assessment is a core goal of reform: ensuring that complaints about officer misconduct are handled transparently, expeditiously, and with integrity,” said Annette L. Hayes, U.S. Attorney for the Western District of Washington. “This assessment has already informed changes to the way OPA works, and will be critical in further refining how civilian oversight works in Seattle.”
The civilian-led OPA conducts SPD’s complaint-driven administrative investigations of officer misconduct. The OPA assessment specifically evaluated the effectiveness of three areas of these administrative investigations: (1) the design of the process and protocols; (2) the adjudication/review phase; and (3) the investigations themselves.
The Monitor concluded, as to design of the process, that SPD’s complaint investigation process is “exceptionally strong and very well structured.” The Monitor noted that the process requires extensive documentation and redundancy from intake to follow-up to case summary to case completion with internal and external transparency built into the structure. The Monitor also noted that the classifications and findings systems that the Department of Justice – and many community members – concluded were too complex and undermined credibility have been streamlined.
With respect to the effectiveness of adjudication and review, the Monitor concluded that the “back-end” review phase is “among the strongest we have seen,” noting significant advances since DOJ concluded in its investigation in 2011 that OPA overused and misused a now-defunct remediation of “Supervisory Intervention” to dispose of serious complaints.
In the third area of review – the strength of the investigations themselves – the Monitor found the quality of 86 percent of OPA’s investigations are either adequate or superior. To the extent there were inadequate investigations that did not establish sufficient information to support an evidence-based evaluation of an incident, the Monitor identified three areas: (1) the quality and consistency of interviews; (2) the timeliness of interviews; and (3) those investigations that raise potential criminal or terminable offenses (such as false statements). The full OPA assessment is attached below.
Upcoming Assessments
The Monitor’s assessment of Public Confidence and Trust in the Seattle Police Department will be filed next week. That assessment evaluates SPD efforts at promoting public confidence in SPD, its officers, and the services SPD delivers.
The next assessment to be filed will address crisis-intervention and the dispatching of crisis-trained officers. Also filed in February will be an assessment of the Early Intervention System. In March, assessments relating to supervisors, stops and detentions, and three use of force-related assessments covering officer uses of force, use of force data and officer activity level will be filed.
###
Arlington Career Criminal Sentenced for Heroin DistributionRead the Press Release
BOSTON – An Arlington man was sentenced today in U.S. District Court in Boston for selling heroin mixed with fentanyl which creates a toxic mixture substantially more potent, and more dangerous, than heroin alone.
Yrvens Bain, 42, was sentenced today by U.S. District Judge Indira Talwani to 15 years in prison and three years of supervised release. Bain was convicted by a federal jury in October 2015 of distribution of heroin, possession with the intent to distribute heroin and being a felon in possession of a firearm and ammunition.
In February 2014, an investigation of Bain began after it was suspected that he sold the heroin involved in two suspected overdose deaths in Arlington. Federal agents identified Bain as a long-time drug dealer who had been convicted of drug trafficking and firearm offenses on several occasions.
“Heroin laced with fentanyl is literally killing members of our communities,” said United States Attorney Carmen M. Ortiz. “Targeting those who pedal this deadly combination is an essential part of attacking the opioid addition crisis in Massachusetts and beyond.”
“Opioid abuse is at epidemic levels in Massachusetts and throughout New England,” said Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration, New England Field Division. “Fentanyl and heroin are causing overdose deaths across the Commonwealth in record numbers, and DEA is committed to bring to justice those that distribute these lethal drugs. This investigation demonstrates the strength of collaborative law enforcement efforts in Massachusetts to aggressively pursue anyone who traffics these drugs.”
Bain was on probation for a state drug dealing and firearm conviction when federal agents recorded him selling heroin mixed with fentanyl to a cooperating witness on Feb. 26, 2014 and March 21, 2014, in Waltham and Malden, respectively.
On April 1, 2014, agents arrested Bain as he left his residence on Laurel Street in Malden. They had to take him to a nearby hospital after he swallowed heroin during the arrest. A search warrant subsequently executed at the Laurel Street residence led to the seizure of a HiPoint .45 caliber firearm with an obliterated serial number, over 26 grams of heroin mixed with fentanyl and thousands of dollars, including $100 of money used by a cooperating witness to purchase heroin from Bain in March 2014. Agents also seized drug paraphernalia including plastic baggies, plastic gloves and a digital scale used to weigh and package drugs for street-level sales.
This case was prosecuted as part of the federal response to New England’s opioid crisis. A substantial increase in the purity of heroin in recent years, as well as a reduction in its price, have persuaded many individuals addicted to prescription medication to switch to heroin. Overdoses from heroin have climbed substantially as a result. Between 2000 and 2014, opioid overdose deaths have more than tripled with a spike in recent years in Massachusetts.
This case was investigated by a Task Force comprised of the Drug Enforcement Administration, New England Field Division; the Massachusetts State Police; the Arlington, Boston, Ipswich, and Somerville Police Departments; and the Essex County Sheriff’s Department. Significant assistance was also provided the Malden Police Department and the Suburban Middlesex County Drug Task Force.
U.S. Attorney Ortiz and DEA SAC Ferguson made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Christopher Pohl and Eugenia M. Carris of Ortiz’s Criminal Division.
Arizona Man Charged with Violating Federal Narcotics Trafficking Laws in New MexicoRead the Press Release
ALBUQUERQUE – Earlier today a federal magistrate judge found that there was probable cause to support a criminal complaint charging Sergio Marin Ambriz, 20, of Phoenix, Ariz., with violating the federal narcotics trafficking laws. Ambriz was released to a half-way house under conditions of release and pretrial supervision pending trial.
Ambriz was arrested on Jan. 20, 2016, and was charged in criminal complaint with a heroin trafficking offense after the DEA seized approximately 1.90 kilograms (4.18 pounds) of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in three bundles that were concealed inside a pair of jeans in Ambriz’s luggage.
If convicted of the offense against him, Ambriz faces a statutory mandatory minimum of ten years and a maximum of life in federal prison. The charges against Ambriz are merely accusations and he is presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Anchorage Man Sentenced for Being A Felon in Possession of FirearmsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that, on Jan. 21, 2016, an Anchorage man was sentenced by Chief U.S. District Judge Timothy M. Burgess to serve 46 months in prison for possessing firearms as a convicted felon.
Christopher Haynes, 26, of Anchorage, Alaska, previously pled guilty to jointly possessing several firearms at the scene of a “home invasion” shooting on Jan. 27, 2015. Haynes, a felon, was prohibited from possessing firearms at the time of the incident.
According to Assistant U.S. Attorney Frank V. Russo, who handled the sentencing hearing, the Anchorage Police Department was called to the scene of a “home-invasion” shooting on Jan. 26, 2015, at an apartment in Anchorage. The defendant was present at the address, along with his girlfriend, his brother Christian Haynes, his brother’s fiancée, Krystal Hawk, and several children. Christian Haynes and Krystal Hawk died from gunshot wounds inflicted by the assailants, who fired into the apartment after forcing in the door, which had been barricaded. The defendant, his girlfriend, and the children escaped injury. When officers searched the residence, they seized five firearms, including three 9 mm pistols and two assault rifles. One of the firearms was found in the defendant’s bedroom.
The double murder was the last in a string of three shootings that began on Jan. 24, 2015, with a home invasion of Christian Haynes’ residence located on Reka Drive in Anchorage. During that shooting, assailants forced their way into the residence, fired numerous shots, and kicked a six-year old child in the face. Later that same evening, a “drive-by” shooting took place on San Roberto Avenue in Anchorage, in an apparent retaliation for the first shooting. In that shooting, a little girl in an adjacent apartment was grazed by a bullet. A vehicle matching the description of Christian Haynes’ truck was seen leaving the area. Ballistic evidence recovered at that scene matched two of the firearms recovered from the defendant’s residence, where Christian Haynes went to stay after his house was attacked.
Currently, Michael Reynold is under indictment by the State of Alaska for the murders of Christian Haynes and Krystal Hawk. Reynold is charged in a related case in federal court, which alleges that he and 11 other co-defendants are part of the “Fairview MOB,” which is affiliated with the Bloods street gang. The FBI and Anchorage Police Department continue to investigate both the activities of the Fairview MOB and the homicides and related shootings. Anyone with information on these cases can call the FBI at (907) 276-4441 or Crime Stoppers at 561-STOP.
During Christopher Haynes’ sentencing hearing, Judge Burgess noted that the defendant had in some respects been punished already due to the death of his family members; however, he acknowledged the “atypical” nature of the case, given the deaths and string of shootings. Judge Burgess noted the consequences of this case are the very reasons that felons are prohibited from possessing firearms in the first place: because when felons possess firearms “bad things can happen.” Because of the seriousness of the offense, Judge Burgess imposed the 46-month sentence instead of the two-year sentence requested by the defendant.
In announcing the sentence, U.S. Attorney Loeffler commended the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Anchorage Police Department (APD), who investigated the case, as well as the U.S. Attorney’s Office partnership with the Municipality of Anchorage, which has assigned a prosecutor to the U.S. Attorney’s Office to address gang crimes.
Amarillo Man Sentenced to 240 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
AMARILLO, Texas — Alexander Jimenez, III, of Amarillo, Texas, was sentenced today by U.S. District Judge Mary Lou Robinson to 240 months (20 years) in federal prison following his guilty plea in August 2015 to one count of receiving a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Following the sentencing, Judge Robinson remanded Jimenez, 28, into custody.
According to documents filed in the case, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Amarillo Police Department began the investigation after APD received information that an individual, later identified as Jimenez, had uploaded images of child pornography.
In early February 2014, a search warrant was executed at Jimenez’s residence and a laptop computer, located in Jimenez’s bedroom, was seized. A forensic analysis of that computer revealed that it contained approximately 4,389 images, and 291 videos, of child pornography.
Jimenez admitted using the computer to receive, trade and view child pornography. He admitted sharing more than 1,000 files of child pornography on the Internet.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Assistant U.S. Attorney Joshua Frausto prosecuted the case.
# # #
Albuquerque Man Pleads Guilty to Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Kevin Romero, 34, of Albuquerque, N.M., pleaded guilty today in federal court to methamphetamine and heroin trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Romero and his co-defendant Phillip Barrios, 37, also of Albuquerque, were arrested in Jan. 2015, on a criminal complaint charging them with possession of heroin and methamphetamine with intent to distribute. According to the complaint, Romero and Barrios attempted to sell approximately 64 grams of methamphetamine and 200 grams of heroin to undercover law enforcement agents on Jan. 28, 2015, in Bernalillo County, N.M.
During today’s proceedings, Romero pled guilty to a felony information charging him with distribution of methamphetamine and heroin. In entering his guilty plea, Romero admitted that on Jan. 28, 2015, he provided methamphetamine and heroin to Barrios with the knowledge that Barrios intended to distribute to other individuals who unbeknownst to them, were undercover New Mexico State Police officers. Romero admitted that he and Barrios sold 59.62 grams of actual methamphetamine and 237.7 grams of heroin to the undercover officers.
At sentencing, Romero faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. A sentencing hearing has yet to be scheduled.
Barrios previously pled guilty and was sentenced on Aug. 19, 2015.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Shana B. Long.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
18 Months in Prison for Geneva Man Convicted of PerjuryRead the Press Release
SYRACUSE, NEW YORK – Joseph Jenkins, 46, of Geneva, N.Y., was sentenced today to 18 months in prison in connection with his conviction for perjury, following a jury trial, on April 1, 2015. Jenkins was also ordered to pay a $5,000 fine and a special assessment of $100, and will serve a one year term of supervised release when released from prison.
The perjury conviction stemmed from Jenkins’ appearance in federal court in Syracuse, New York on October 4, 2011, before United States Magistrate Judge Andrew T. Baxter to answer child pornography charges. At his initial appearance, Jenkins completed a financial affidavit under penalty of perjury seeking court-appointed counsel. In the application for assigned counsel, Jenkins failed to disclose his ownership of investment and bank accounts worth over $200,000 and concealed his ownership of boats and recreational vehicles. As a result, Jenkins was appointed an attorney paid for by the Court. Jenkins had an assigned lawyer for nearly a year before prosecutors learned of his false statements about his assets and notified the court. Subsequently, the defendant was found ineligible for assigned counsel and was ordered to reimburse the United States District Court $8,049.12.
With respect to his charges of transportation and possession of over 3,800 images and 100 videos of child pornography, Jenkins was convicted on February 6, 2014, following a jury trial and was sentenced on November 18, 2014, to a term of imprisonment of 225 months, a fine of $40,000, and was ordered to pay $12,000 in restitution to the victims of his crimes. The term of incarceration imposed today on the perjury conviction will run consecutively to his sentence for the child pornography offenses.
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Tamara Thomson.
Thursday 21 January 2016
Vallejo Resident Charged with Methamphetamine PossessionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Lino Jimenez, 34, of Vallejo, charging him with possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 13, 2015, Jimenez possessed over five pounds of methamphetamine for sale in a storage locker in Vallejo.
This case is the product of an investigation by the Drug Enforcement Administration and Napa Special Investigations Bureau. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Jimenez is in custody. He is scheduled to be arraigned on January 25, 2016.
If convicted, Jimenez faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Vallejo Man Sentenced to More Than 12 Years in Prison for Multiyear, Multistate Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Deshawn A. Ray, 43, of Vallejo, was sentenced today by Chief United States District Judge Morrison C. England Jr. to 12 years and one month in prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, from March 2008 until July 2010, Ray and co-conspirator Reginald L. Thomas conducted a multistate “account takeover” scheme that identified high-value accounts at several banks. Members of the conspiracy used the personal information of high-value account holders to open joint accounts in the names of the high-value account holders and co-conspirators. The defendants also changed the contact information so that the account holders would not receive notice of account activity. The defendants then transferred funds from the high-value accounts to the joint accounts and then to individual accounts held by members of the conspiracy. Members of the conspiracy—many of whom Ray recruited and supervised—withdrew the proceeds of the fraudulent transfers in cash, cashiers’ checks or wire transfers before the transfers were noticed by the banks and reversed.
This case was the product of an investigation by the United States Secret Service, the Pinellas County (Florida) Sheriff’s Office, and the Walnut Creek (California) Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty prosecuted the case.
Co-defendant Reginald L. Thomas, 40, of Richmond, pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and was sentenced to serve three years and nine months in prison. Co-defendant Damion Edgerson, 40, of Oakland, pleaded guilty to bank fraud and was sentenced to serve 18 months in prison. Co-defendant Tiffany Tung, 27, of Oakland, pleaded guilty to accepting a bribe as a bank employee. Tung was sentenced to a two-year term of probation.
U.S. Navy Petty Officer Sentenced to 27 Months in Prison for Trading Classified Information in International Fraud and Bribery ScandalRead the Press Release
A U.S. Navy Petty Officer First Class was sentenced today to 27 months in prison for accepting cash, consumer electronics and travel expenses from foreign defense contractor Glenn Defense Marine Asia (GDMA) in exchange for classified U.S. Navy information.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California, Special Agent in Charge Chris D. Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
In May 2014, Dan Layug, 27, pleaded guilty to one count of conspiracy to commit bribery and is the first defendant to be sentenced in the bribery scheme involving Singapore-based GDMA, which provided port services to U.S. Navy ships in the Asia Pacific region and used bribery to obtain information to win and maintain contracts.
According to court documents, GDMA owner and CEO Leonard Francis and other GDMA employees enlisted the clandestine assistance of Layug and other U.S. Navy personnel to provide classified ship schedules and other sensitive Navy information. GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for tens of millions of dollars in port services.
In his plea agreement, Layug admitted that he accepted a $1,000 per month allowance from GDMA, plus luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand. Layug also admitted that he sought consumer electronics from GDMA, including an iPad 3. According to the plea agreement, Layug used his position as a logistics specialist at a U.S. Navy facility in Yokosuka, Japan, to gain access to classified U.S. Navy ship schedules, then provided this information to GDMA’s vice president of global operations. Layug admitted that he also provided pricing information from one of GDMA’s competitors.
So far, nine individuals have been charged in connection with this scheme; of those, seven have pleaded guilty. Captain Daniel Dusek and Commander Jose Luis Sanchez were charged with bribery conspiracies involving GDMA and have pleaded guilty. Commander Michael Vannak Khem Misiewicz and former Department of Defense (DoD) civilian employee Paul Simpkins currently await trial. On Dec. 17, 2013, NCIS Special Agent John Beliveau pleaded guilty to conspiracy and bribery charges for regularly alerting Francis to the status of the government’s investigation into GDMA.
The NCIS, the DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Trial Attorneys Brian Young and Lawrence Atkinson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
U.S. Navy Petty Officer Sentenced to 27 Months in Prison for Trading Classified Information for Cash and iPads; He is the First to be Sentenced in Colossal International Fraud and Bribery ScandalRead the Press Release
Assistant U. S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – January 21, 2016
SAN DIEGO – U.S. Navy Petty Officer First Class Daniel Layug was sentenced today to 27 months in prison for accepting cash, consumer electronics and travel expenses from foreign defense contractor Glenn Defense Marine Asia in exchange for classified U.S. Navy information.
Layug, who pleaded guilty in May 2014 to a single count of conspiracy to commit bribery, is the first defendant to be sentenced in the alleged bribery scheme involving Singapore-based Glenn Defense Marine Asia (GDMA), which provided port services to U.S. Navy ships in the Asia Pacific region and used information obtained through bribery to win and maintain contracts.
During today’s sentencing hearing, U.S. District Judge Janis Sammartino told the defendant that he had repeatedly betrayed the trust his country placed in him. “You put the Navy at risk. You put your colleagues at risk. And you put our country at risk…I think our security and safety were all at risk.”
Rear Admiral Jonathan A. Yuen, chief of Navy Supply Corps and Commander of Naval Supply Systems Command, testified during today’s hearing about the impact of Layug’s crime on the Navy. “I am very disappointed to learn that he admitted to receiving cash payments and electronic equipment in exchange for information concerning the movements of our ships. I do not have the words to express the depth of the betrayal such an exchange represents in contrast to the service and sacrifice that supply officers and sailors around the world perform every day. Every one of us in uniform owes the nation we serve our unswerving loyalty. Whatever the dollar value of the money and things Layug illicitly received, no amount of money is worth betraying our nation, our Navy or our shipmates.”
“In return for a monthly cash allowance, the latest gadgets and luxury accommodations for himself and his friends, the defendant betrayed the country that had given him every opportunity,” said U.S. Attorney Laura Duffy. “Layug essentially sold his honor for an iPad 3, and in doing so he put the U.S. Navy at risk of embarrassment, exploitation, attack or worse. Today’s sentence is the first of many that we hope will remind others to resist temptation.”
“Today's sentencing of Chief Petty Officer Daniel Layug is yet another example of the continued dedication by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who would abuse their positions of trust within the Department of Defense,” said Chris D. Hendrickson, Special Agent In Charge, Defense Criminal Investigative Service, Western Field Office. “The conduct of Chief Petty Officer Layug is reprehensible and deeply troubling. The Defense Criminal Investigative Service will continue to investigate and seek to prosecute any individual, regardless of position, who would put our mission of Protecting America's Warfighters at risk.”
“Petty Officer Layug intentionally traded the safety and security of Sailors and Marines aboard ships for cash and expensive gifts, betraying the longstanding trust among those who serve the Navy and the nation, said NCIS Director Andrew Traver. NCIS initially discovered this criminal activity and we will continue to work with the Defense Criminal Investigative Service and the U.S. Attorney's Office in vigorously investigating and prosecuting these crimes of corruption and fraud.”
So far, nine people have been charged; of those seven have pleaded guilty. Two are awaiting trial, including Commander Michael Michael Vannak Khem Misiewicz and former Department of Defense civilian employee Paul Simpkins. Layug was ordered to surrender to the U.S. Bureau of Prisons on April 1.
According to court documents, GDMA owner and CEO Leonard Francis and other GDMA employees enlisted the clandestine assistance of Layug and other U.S. Navy personnel - including Captain Daniel Dusek, Commander Misiewicz, Commander Jose Luis Sanchez and Naval Criminal Investigative Service Special Agent John Beliveau - to provide classified ship schedules and other sensitive Navy information. In total, GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for tens of millions of dollars in port services.
In his plea agreement, Layug, 27, admitted that he accepted a $1,000 a month allowance from GDMA, plus luxury hotel stays for himself and others in Malaysia, Singapore, Indonesia, Hong Kong and Thailand. He also admitted asking GDMA for numerous electronics gadgets, including an iPad 3, a Nikon digital camera, a Blackberry, a VAIO computer, a PSP gaming unit and a Wii gaming unit.
According to the plea agreement, Layug worked secretly on behalf of GDMA, using his position as a logistics specialist at a U.S. Navy facility in Yokosuka, Japan, to gain access to classified U.S. Navy ship schedules and then provided this information to GDMA’s vice president of global operations. Layug admitted he also provided pricing information from one of GDMA’s competitors.
In return, GDMA gave Layug envelopes of cash on a regular basis, the plea agreement said. On May 21, 2012, GDMA’s vice president of global operations instructed a GDMA accountant that “at the end of each month, we will be providing an allowance to Mr. Dan Layug. Total of US $1,000. You may pay him the equivalent in Yen. He will come by the office at the end of each month to see you.”
According to the plea agreement, Layug sought consumer electronics from GDMA. In an email on March 9, 2012, Layug asked the vice president of global operations, “What are the chances of getting the new iPad 3? Please let me know.” In the plea agreement, Layug admitted that GDMA then provided him with an iPad 3.
In another email exchange on May 28, 2013, Layug asked the vice president of global operations for a “bucket list” of items including a high end camera, an iPhone5 cellular phone, a Samsung S4 cellular phone, and an Ipad Mini. Shortly after sending his “bucket list” to the vice president of global operations, Layug stated in an email that “the camera is awesome bro! Thanks a lot! Been a while since I had a new gadget!”
Francis was previously charged with conspiring to bribe U.S. Navy officials.
Three other senior Navy officials – Dusek, Misiewicz and Sanchez – have been charged separately with bribery conspiracies involving GDMA. Dusek and Sanchez have pleaded guilty. On December 17, 2013, Special Agent Beliveau II, has also pleaded guilty to conspiracy and bribery charges for regularly tipping off Francis to the status of the government’s investigation into GDMA.
The ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
The case is being prosecuted by Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California and Trial Attorneys Brian Young and Lawrence Atkinson of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 14mj1402
Dan Layug Yokosuka, Japan
SUMMARY OF CHARGES
Conspiracy to Commit Bribery in violation of 18 U.S.C. § 371
Maximum of 5 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Attorney’s Office for the Southern District of Florida Hosts Community Resilience Forum to Prevent and Combat CrimeRead the Press Release
This afternoon, the U.S. Attorney’s Office for the Southern District of Florida hosted a community resilience forum that enabled members of law enforcement, concerned citizens and dozens of local leaders to discuss the immeasurable importance of citizen and law enforcement collaboration, in order to combat crime.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Ari Sharpira, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), Rodolfo Llanes, Chief, City of Miami Police Department, and Kareem Shora, Senior Policy Advisor and Chief of Community Engagement, U.S. Department of Homeland Security, made the announcement.
Law enforcement strives to combat internal and external national security threats, violent crime, firearms trafficking, gangs, illegal firearms purchases, gun violence, hate crimes, and acts of intimidation. It is the duty of all law enforcement personnel to protect the community from danger. Community policing is an avenue by which law enforcement can work toward crime prevention and detection. However, law enforcement’s ability to thwart, identify and prosecute these pervasive crimes requires community collaboration. It is imperative that the community report criminal activity to law enforcement, take a stance against violence and illegal gun possession, and protect themselves from potential harm by strengthening the security of their person, residence and places of worship. A community’s resilience depends on the fused forces of our federal, state and local law enforcement partners and the voices of our citizens.
In order to continue this important dialogue and allow for substantive problem solving sessions, the U.S. Attorney’s Office will host future community resilience forums.
Mr. Ferrer commends the collective efforts of the State Attorney’s Office, FBI, ATF, MDPD, City of Miami Police Department, U.S. Department of Homeland Security, concerned citizens, and local leaders to combat criminal conduct and support the resilience of our communities. To learn more about the partnership to combat violence and support community initiatives, please contact (305) 961-9134 or visit [email protected].
Two Topeka Men Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Topeka, Kan., men have been sentenced in federal court for illegally possessing firearms.
Eric L. Price, 25, and Cortez T. Timley, 26, both of Topeka, were sentenced by U.S. Chief District Judge Greg Kays on Wednesday, Jan. 20, 2016. Price was sentenced to nine years and two months in federal prison without parole. Timley was sentenced to six years and eight months in federal prison without parole.
Price pleaded guilty on April 28, 2015, to being a felon in possession of firearms. Price admitted that he was in possession of a Smith and Wesson .40-caliber handgun , a Romanian Arms 7.62-caliber rifle, a Beretta 9mm pistol and a Masterpiece Arms 9mm pistol on June 13, 2014.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Price has prior felony convictions for possession of narcotics with intent to distribute, aggravated battery, and aggravated assault and battery.
Timley pleaded guilty on April 28, 2015, to possessing firearms in furtherance of a drug-trafficking crime. Timley admitted that he and Price were passengers in a vehicle on June 13, 2014, and were in possession of the firearms to protect their drug supply. Timley also admitted that there was a quantity of marijuana in the trunk of the vehicle, which they intended to sell to another person.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI, the Topeka, Kan., Police Department and the Independence, Mo., Police Department.
Two Burlington County, New Jersey, Men Sentenced to Nine Years in Prison for Their Roles in South Jersey Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. - Two Burlington County men who teamed up to rob multiple South Jersey banks between September 2013 and January 2014 were both sentenced today to 108 months in prison, U.S. Attorney Paul J. Fishman announced.
Shalir Hall, 22, of Edgewater Park, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with nine counts of bank robbery. David Glenn, 24, of Burlington Township, New Jersey, previously pleaded guilty before Judge Simandle to an information charging him with seven counts of bank robbery. Judge Simandle imposed both sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
Hall and Glenn robbed the following New Jersey banks on the dates set forth below:
Bank
Location
Date
Participants
Beneficial Savings Bank
Willingboro
Sept. 27, 2013
Hall
Beneficial Savings Bank
Willingboro
Nov. 14, 2013
Hall, Glenn
Beneficial Savings Bank
Willingboro
Nov. 26, 2013
Hall, Glenn
PNC Bank
Mount Laurel
Nov. 29, 2013
Hall, Glenn
3rd National Bank
Delran
Dec. 12, 2013
Hall, Glenn
Roma Bank
Delran
Dec. 12, 2013
Hall, Glenn
Columbia Savings Bank
Maple Shade
Dec. 17, 2013
Hall
TD Bank
Bellmawr
Jan. 8, 2014
Hall, Glenn
PNC Bank
East Windsor
Jan. 8, 2014
Hall, Glenn
Hall robbed the Beneficial Savings Bank in Willingboro on Sept. 27, 2013, by threatening and intimidating bank employees, demanding money and then fleeing the bank. Hall then joined forces with Glenn, and the two went on to commit seven additional robberies in New Jersey – taking turns alternating between going into the banks and staying in the getaway vehicle. Hall committed the Dec.17, 2013 robbery of Columbia Savings Bank on his own.
In addition to the prison terms, Judge Simandle sentenced both Hall and Glenn to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agents in Charge Richard M. Frankel and William F. Sweeney Jr. in Newark and Philadelphia, respectively, with the investigation leading to the sentences.
He also credited the Camden County Prosecutor’s Office and the Burlington County Prosecutor=s Office; the Burlington County Sheriff’s Department Warrant Unit; and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; as well as the East Windsor Township Police Department, Willingboro Police Department, Maple Shade Police Department, Delran Township Police Department, Mount Laurel Police Department, Philadelphia Police Department and the Hazelton, Pennsylvania Police Department for their work in this case.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel:
Hall: Gina A. Capuano, Esquire, Cherry Hill, New Jersey
Glenn: Lisa Evans Lewis Esq., Assistant Federal Public Defender, Camden
Tulalip Tribal Member Convicted of Assault, Witness Tampering and Illegal Firearm PossessionRead the Press Release
An enrolled member of the Tulalip Tribes was convicted today in U.S. District Court in Seattle of seven charges involving his repeated assault of an intimate partner, announced U.S. Attorney Annette L. Hayes. Following a six day jury trial, BRIAN H. JONES, SR., 46, of Tulalip and Marysville, Washington, was convicted of assault by strangulation, assault resulting in serious bodily injury, witness tampering, felon in possession of a firearm, possession of a firearm in furtherance of a crime of violence and two counts of assault with a dangerous weapon. The jury deliberated six hours before returning its verdicts. U.S. District Judge Richard A. Jones scheduled sentencing for May 6, 2015.
According to records filed in the case and testimony at trial, JONES assaulted both his ex-wife and her then-current husband in December 2014, holding them at gun point. In April 2015, JONES assaulted his ex-wife a second time, strangling her and beating her. Medical records indicate JONES’ ex-wife suffered injuries to her head, arms, and legs, and throat trauma. Following his arrest in both assaults, records reveal JONES repeatedly contacted his ex-wife and convinced her to refuse to testify in a tribal court trial, as well as to seek a dismissal of the federal charges or recant in federal court. Prosecutors used evidence including the ex-wife’s prior sworn statements, medical records, and other witness statements to prove JONES’ guilt beyond a reasonable doubt.
JONES is also a felon having been previously convicted of a state felony crime, and is thus prohibited from possessing firearms.
JONES has been in federal custody since his arrest on June 3, 2015.
JONES faces up to twenty years in prison for each of the crimes of assault by strangulation, assault resulting in serious bodily injury, assault with a deadly weapon, and witness tampering. He faces a mandatory minimum term of seven years in prison consecutive to the other sentences for assault with a deadly weapon. JONES also faces up to ten years in prison for the crime of felon in possession.
The case was investigated by the Tulalip Tribal Police and the FBI. The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and J. Tate London.
Topsham Couple Pleads Guilty to Diverting Social Security BenefitsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Thomas Gerken, 63, and Jill Gerken, 63, of Topsham, Maine, pleaded guilty yesterday in U.S. District Court to conspiracy to defraud the Social Security Administration (“SSA”) by diverting Supplemental Security Income (SSI) benefits. SSI benefits are paid to people who are blind, disabled or elderly and whose income is below specified levels and are to be used to pay for the needs of the beneficiary.
According to court records, the defendants are the parents of two disabled children. In 2004, on the basis of those disabilities, the defendants applied for and were granted SSI benefits for the children. Jill Gerken was designated as the representative payee for each child. As such, she was required to use the funds for their benefit, to annually account for her expenditure of the funds, and to periodically submit information to SSA to allow SSA to determine whether the children remained eligible for benefits.Between January 2007 and July 2013, during a period of time that the children resided on a full-time basis at an assisted living facility, the defendants diverted about $108,000 of the SSI benefits and used them to pay for household expenses, including, but not limited to, their mortgage, a home equity loan, utilities, groceries, travel, restaurant meals and books. Over that period of time, they also failed to pay the assisted living facility even though Jill Gerken falsely certified to SSA each year that she spent the SSI benefits on food and housing at the assisted living facility.
The defendants face up to five years in prison and a $250,000 fine. They will be sentenced after completion of presentence investigation reports by the U.S. Probation Office.
The case was investigated by the SSA, Office of Inspector General.Toledo hospital agrees to improve access and services to those who are deaf or hard of hearingRead the Press Release
The ProMedica Toledo Hospital will revise its policies and procedures that ensure that patients or companions who are deaf or hard of hearing receive auxiliary aids and services to obtain effective communication during treatment, as well as train its staff on effective communication as required by Americans with Disabilities Act, said U.S. Attorney Steven M. Dettelbach.
ProMedica entered into the settlement to resolve an investigation pursuant to Title III of the Americans with Disabilities Act, conducted by the U.S. Attorney’s Office for the Northern District of Ohio. This hospital will also pay $10,000 to the complainant and $5,000 to the United States in a civil penalty.
“This settlement will ensure greater access to health care for those who are deaf or hard of hearing,” Dettelbach said. “Whether it is at arenas or apartment buildings or at health-care facilities, we will continue to enforce the Americans with Disabilities Act, which has improved the lives of countless Americans.”
The investigation began with a complaint made to the U.S. Attorney’s Office alleging that ProMedica Toledo Hospital violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to a patient who is deaf during critical interactions relating to the complainant’s medical care.
The complaint also included an allegation of retaliation when ProMedica’s Center for Women’s Health allegedly refused services to the complainant’s minor daughter during the course of the United States’ investigation.
Ensuring that medical care providers do not discriminate on the basis of disability is an issue of general public importance. The U.S. Attorney’s Office is authorized to investigate allegations of violations of the ADA and takes complaints from the public. The U.S. Attorney’s Office has the authority to, where appropriate, negotiate and secure voluntary compliance agreements, and to bring civil actions enforcing title III of the ADA should it fail to secure voluntary compliance.
A medical care facility that is a private, non-profit corporation, licensed by the State of Ohio is a “public accommodation” within the meaning of title III of the ADA. Under title III of the ADA, no person who owns, leases (or leases to), or operates a place of public accommodation may discriminate against an individual on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation.
Three Indicted in East Texas/West LA Federal Kidnapping ConspiracyRead the Press Release
TYLER, Texas – U.S. Attorney John M. Bales announced today the indictment of three individuals charged in a kidnapping conspiracy in the Eastern District of Texas.
Cory Carnell Mitchell, 27, of Tenaha, Texas; Gary Eugene Cutright, 21, of Zwolle, LA; and Quannell Newton, 35, of Many, LA, were named in the three count indictment charging them with conspiracy to commit kidnapping, kidnapping and possession of a firearm during a violent crime. The indictment was returned by a federal grand jury late Jan. 20, 2016.
According to the indictment, in early December 2015, Mitchell, Cutright, and Newton conspired to kidnap an individual and transport the victim from Louisiana to Carthage, Texas. The victim was shot twice during the kidnapping, but survived.
If convicted, the defendants each face up to life in federal prison for the kidnapping and a minimum of 10 years for the firearms violation.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texas Department of Public Safety – Criminal Investigation Division. The U.S. Marshals Service, Federal Bureau of Investigation, Lufkin Police Department, Nacogdoches Police Department, Center Police Department, Carthage Police Department, DeSoto Parrish Sheriff’s Department, Sabine Parrish Sheriff’s Department and the Panola County Sheriff’s Department assisted in the execution of the arrest warrants. This case is being prosecuted by Assistant U.S. Attorney Paul A. Hable.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Steve Casaus Ordered Detained Pending Trial on Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Steve Casaus, 43, of Albuquerque, N.M., was arraigned this morning in federal court on an indictment charging him with being a felon in possession of a firearm and ammunition. Casaus entered a not guilty plea and was ordered detained pending trial.
Casaus was charged in a criminal complaint on April 25, 2014, with unlawfully possessing a firearm and ammunition on April 21, 2014, in Bernalillo County, N.M. According to the criminal complaint, Casaus was arrested after Albuquerque Police Department (APD) officers after they observed what they believed to be a drug deal, and based on an outstanding arrest warrant for failing to appear on a pending state court case. At the time of his arrest, Casaus allegedly was possession of $20,790.00 in cash, 1.3 grams of methamphetamine, drug paraphernalia, and a firearm with six rounds of ammunition in it.
Casaus was subsequently indicted on June 11, 2014, and charged with being a felon in possession of firearms and ammunition on April 21, 2014, in Bernalillo County. Casaus was prohibited from possessing firearms or ammunition because of his prior felony convictions of disarming a peace officer, aggravated battery on a peace officer, trafficking by possession with intent to distribute and conspiracy to commit unlawful taking of a motor vehicle.
The federal prosecution of Casaus was stayed during the pendency of unrelated state court proceedings. Casaus was arrested on the federal charge earlier today after he was transferred into federal custody from state custody.
If convicted of the offense against him, Casaus faces a maximum sentence of ten years in federal prison. The charges against Casaus are merely accusations and he is presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of Homeland Security Investigations and APD. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. 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 felony 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 rates, on a per capita basis, are amongst 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, under this initiative.
Statement of U.S. Attorney John W. HuberRead the Press Release
“Like all who work in the criminal justice system, our hearts are heavy this week. We are deeply saddened by the loss of Officer Doug Barney and the serious injuries sustained by Officer Jon Richey. Our hearts are also full of gratitude for the heroic efforts of those who willingly risk their lives every day to keep our families and communities safe. We also want the families of our law enforcement officers to know we recognize how much they sacrifice on our behalf.
“Those of us involved in the criminal justice profession will join others in the coming weeks to review the circumstances surrounding this tragedy. Federal judges, prosecutors, and defense attorneys make decisions on detention issues every day. In each of these cases, those involved take their duties seriously and use their best judgment in balancing competing interests. While it is valuable and necessary to assess what happened and identify ways we can all do our jobs better, hindsight is 20/20. We would all do things differently knowing what we now know.
“Our federal judges in Utah are thoughtful, careful, and have the best of intentions as they make difficult decisions. In this matter, the U.S. Attorney’s Office did not object to the judge’s ultimate pre-trial detention decision. Once we have had time to honor the two Unified Police Department officers and support their families, we intend to focus our energy on making sure we learn from this tragic situation.
“In the emotional aftermath of these shootings, may we remember there is only one person to blame – the fugitive who committed these heinous crimes.”
Statement by Attorney General Loretta E. Lynch on the departure of U.S. Attorney Steven DettelbachRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch released the following statement on the departure of U.S. Attorney Steven Dettelbach of the Northern District of Ohio:
“As the U.S. Attorney for the Northern District of Ohio, Steven Dettelbach has been a consummate public servant, an exemplary leader and an outstanding law enforcement officer. During his time in office, Steven successfully negotiated a transformative reform agreement with the Cleveland Division of Police with emphasis on better use-of-force policies, more training, increased accountability and more robust community engagement. He assembled an innovative coalition of law enforcement and medical professionals to address his district’s opioid epidemic – an approach that became a national model. And he served as an invaluable member of the Attorney General’s Advisory Council under both me and my predecessor, Attorney General Eric Holder. I want to thank Steven for his dedicated service to Ohio and to the nation and I look forward to all that he will continue to achieve in the months and years to come.”
Statement by Attorney General Loretta E. Lynch on the Departure of Steven Dettelbach as the U.S. Attorney of the Northern District of OhioRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the departure of U.S. Attorney Steven Dettelbach of the Northern District of Ohio:
“As the U.S. Attorney for the Northern District of Ohio, Steven Dettelbach has been a consummate public servant, an exemplary leader and an outstanding law enforcement officer. During his time in office, Steven successfully negotiated a transformative reform agreement with the Cleveland Division of Police with emphasis on better use-of-force policies, more training, increased accountability and more robust community engagement. He assembled an innovative coalition of law enforcement and medical professionals to address his district’s opioid epidemic – an approach that became a national model. And he served as an invaluable member of the Attorney General’s Advisory Council under both me and my predecessor, Attorney General Eric Holder. I want to thank Steven for his dedicated service to Ohio and to the nation and I look forward to all that he will continue to achieve in the months and years to come.”
Sex Offender Heads to Prison for Possession of Child Pornography…AgainRead the Press Release
LAREDO, Texas – A 44-year-old sex offender has been ordered to federal prison for nearly 20 years for failing to register and for possession of child pornography, announced U.S. Attorney Kenneth Magidson. Gamaliel Cortez-Mendoza, 44, of Laredo, pleaded guilty May 26, 2015.
Today, visiting Senior U.S. District Judge Janis Graham Jack ordered he serve 235 months and 120 months for the possession and failure to register convictions, respectively. The sentences will run concurrently. In handing down the sentence, Judge Jack statedthat people like the defendant create the market for child pornography and a lengthy sentence was necessary to protect the public based on his past conduct and inability to control himself. Cortez-Mendoza will be on supervised release for the rest of his life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet.
Cortez-Mendoza was arrested in January following an investigation by the Laredo Child Exploitation Task Force led by Homeland Security Investigations and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service.
The Webb County Sheriff’s Office Cyber Crime Unit learned that an individual living at Cortez-Mendoza’s address had been downloading child pornography. Investigators then executed search warrants on Cortez-Mendoza’s home and computers. Forensic analysis later revealed numerous videos and pictures depicting child pornography. Cortez-Mendoza admitted downloading and viewing the videos.
Cortez-Mendoza had previously been convicted in 2004 of possessing child pornography in Harris County and was also required to register as a sex offender.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case, prosecuted by Assistant U.S. Attorney Alfredo De La Rosa, was brought as part of as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Sentencing for January 19, 2016Read the Press Release
Rafael Alberto Gonzalez-Medina, 24, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 19, 2016, for illegal re-entry of a previously deported alien into the United States. Gonzalez-Medina was arrested in Gillette, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Seattle Woman Pleads Guilty to Counterfeiting ChargesRead the Press Release
PITTSBURGH, PA -- A resident of Seattle, Washington pleaded guilty in federal court to charges of conspiracy to make, deal, possess, pass, buy, sell, and transfer counterfeit currency both overseas and in the United States as well as to charges of dealing in counterfeit obligations or securities of the U.S. United States Attorney David J. Hickton announced today.
Jeremy J. Miller, a/k/a Sinner, who is now Kate Miller, 31, pleaded guilty to two counts before United States District Judge Mark Hornak.
Judge Hornak scheduled sentencing for May 5, 2016 at 9:30 a.m.. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued bond.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service, U.S. Postal Service, and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Miller.
Scranton Man Sentenced to 16 Years in Prison for Receiving and Distributing Child PornographyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 43-year-old Scranton resident was sentenced today to 16 years in prison by U.S. District Court Judge Malachy E. Mannion in Scranton for receiving and distributing child pornography and violating conditions of his supervised release.
According to United States Attorney Peter Smith, the defendant, Marc Accardi, pleaded guilty in June 2015 to the charge that was filed initially in a Criminal Information. Accardi admitted that he used a cell phone to download and distribute images of child pornography during March-May 2015. He also admitted committing the offense while on supervised release in connection with a prior criminal case.
The charge against Accardi resulted from an investigation by the Department of Homeland Security.
Judge Mannion also ordered Accardi to pay $2,200 in restitution to victims of the child pornography offense. Accardi must also serve 10 years on supervised release following his prison sentence, register as a sex offender, undergo sex offender treatment, and comply with sex offender registration requirements.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
# # #
Sacramento Woman Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Kay Lee, 27, of Sacramento, pleaded guilty today to conspiracy to commit access device fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, from July 2014 through April 2015, Lee participated in a scheme that involved at least 500 unauthorized and counterfeit credit cards and debit cards, affecting at least 1,800 victims, and leading to an estimated loss of $186,000. The defendants stole or possessed stolen mail, created or received fraudulent credit and debit cards, and made fraudulent purchases totaling thousands of dollars using the cards at national retailers such as Target in various Sacramento-area locations.
According to the plea agreement, Lee altered one business’s check for over $1,700 and deposited it in her personal checking account, put a hold on a victim’s mail without that person’s permission, took over a victim’s Target store account using another victim’s identity, and proceeded to engage in further unauthorized purchases using that taken-over account. Finally, on one occasion in September 2014, Lee used one victim’s credit card account number to purchase over $1,000 in tires and related services for her car, while presenting a different victim’s identity as the purchaser.
This case is the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Lee remains in custody. Charges are pending against four co-defendants and a status conference is set for them on February 25, 2016. The charges against them are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lee is scheduled to be sentenced by United States District Judge Troy L. Nunley on April 7, 2016. She faces a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy count, as well as a mandatory two years in prison, to be served consecutively to any other prison sentence imposed, for the aggravated identity theft count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Attorney Sentenced to 2 Years in Prison for Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Today, U.S. Chief District Judge Morrison C. England Jr. sentenced James Stewart Richards, 69, of West Sacramento, to two years in prison for tax evasion, United States Attorney Benjamin B. Wagner announced.
According to court documents, Richards is a member of the California and Hawaii bar organizations. Between 1994 and 2003, Richards owed federal income taxes totaling over $170,000, which he did not pay. Instead, he took steps to evade payment of some or all of the taxes he owed. He filed a false “Offer in Compromise” to the IRS that omitted bank accounts and six rental properties. He used a client trust account to hold his own assets. When alerted by the bank that the IRS was making inquiries about the account, Richards called the bank and asked that the bank provide no records to the IRS. He also withdrew $100,000 from the account in the form of cashier’s checks. Richards purchased a yacht that he registered and titled in a nominee’s name in order to conceal that asset from the IRS. He also made false statements about his assets to a bankruptcy court and to the IRS.
Noting that Richards is an attorney who took three semesters of tax courses in law school, Chief Judge England found that Richards employed a “sophisticated scheme” to hide assets from the IRS. Chief Judge England also noted that all attorneys know client trust accounts cannot be in the manner employed by Richards.
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Audrey B. Hemesath and Nirav K. Desai prosecuted the case.
Roswell Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Juan Carlos Navarrete, 36, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in federal prison followed by three years of supervised release for violating the federal narcotics trafficking laws.
Navarrete was arrested on June 17, 2015, on a criminal complaint charging him with distributing methamphetamine in Chaves County, N.M. According to the complaint, Navarrete sold approximately two ounces of methamphetamine to a confidential source working with law enforcement on Aug. 19, 2014, and approximately eight ounces of methamphetamine to the same confidential source on Sept. 11, 2014.
On Aug. 17, 2015, Navarrete pled guilty to a felony information charging him with distributing methamphetamine and admitted that on Sept. 11, 2014, he sold approximately eight ounces of methamphetamine to an individual who, unbeknownst to him, was working with law enforcement.
This case was investigated by the Las Cruces office of the DEA and the HIDTA Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Terri J. Abernathy prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Romanian National Pleads Guilty to Conspiracy and Credit Card Skimming CaseRead the Press Release
NEWPORT NEWS, Va. – Paul N. Batinas, 31, of Romania, pleaded guilty today to charges of conspiracy to commit bank and wire fraud and aggravated identity theft.
In a statement of facts filed with the plea agreement, Batinas acknowledged that from June 2014 through his arrest in September 2015, he and several others installed skimming devices and cameras on Navy Federal Credit Union ATMs located throughout the Eastern District of Virginia and elsewhere. Batinas and his co-conspirators used these devices to capture the debit and credit card account numbers and PIN access codes of others, which they later used to make unauthorized withdrawals from the compromised accounts. Batinas and his co-conspirators accessed these accounts by re-encoding the account numbers onto other cards, such as gift cards, and using those cards and the associated PINs at ATMs belonging to other financial institutions. Batinas is responsible for compromising more than 3,700 debit and credit cards from which conspirators withdrew approximately $550,000.
Batinas was indicted by a federal grand jury on Sept. 10, 2015, and faces a maximum penalty of 30 years in prison, as well as a mandatory consecutive two years in prison on the aggravated identity theft charge, when he is sentenced on April 28, 2016. The maximum and minimum statutory sentences are prescribed by Congress and are 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; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Office, Douglas Mease, Special Agent in Charge, U.S. Secret Service Richmond Office and George Purefoy, Resident Agent in Charge, U.S. Secret Service Norfolk Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin C. Gratton are 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. 4:15cr63.
Rock Island Man to Serve Eight Years in Prison on Federal Firearms ChargeRead the Press Release
Rock Island, Ill. – U.S. District Judge Sara L. Darrow today sentenced Kenneth Russell, 34, of the 500 block of 6th Street, Rock Island, Ill., to serve 96 months in federal prison for being a felon in possession of a firearm. Russell was also ordered to serve a one-year term of supervised release following his release from prison. Russell has remained in the custody of the U.S. Marshals Service since May 2015, when the grand jury returned the single count indictment charging him with being a felon in possession of a firearm.
On Sept. 24, 2015, Russell entered a plea of guilty to possession of a 9mm handgun in Rock Island on Apr. 15, 2015. At the time Russell possessed the handgun, he was a convicted felon.
Assistant U.S. Attorney Micah Reyner prosecuted the case. The investigation was conducted by the Rock Island Police Department, the Quad City Metropolitan Enforcement Group, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rochester Man Sentenced for Charges Involving Stolen PropertyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Brandon Meade, 27, of Rochester, NY, who was convicted of conspiring to transport and transfer stolen property with an aggregate value of at least $5,000 in interstate commerce, was sentenced to time served after serving nearly nine months in prison, by U.S. Senior District Court Judge Richard J. Arcara.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that the defendant ran East Side Gold and Car Audio, a pawn shop located at the corner of North Goodman and Clifford Avenues in Rochester. In that role, Meade assisted several other individuals, including co-defendant Rico J. Vendetti, in obtaining over $350,000 in stolen merchandise. The merchandise was obtained through an organized ring of shoplifters who stole from large retailers such as Walmart, Sears, Home Depot, JoAnn Fabrics, Tops, and Wegmans. The merchandise was then sold by Vendetti on eBay for approximately half of its retail value.
Vendetti, along with Arlene Combs, Albert Parsons, and Donald Griffin, have been convicted in connection with the death of 78-year old Homer Marciniak, which occurred during the course of a home invasion robbery at Marciniak’s home in Medina, NY in July, 2010. Meade was not involved in the home invasion. During the robbery, Marciniak’s valuable collection of collectible comic books was stolen and Marciniak was beaten. Several hours after being treated for bruises and lacerations suffered during the robbery, and released from the hospital, Marciniak was readmitted to the hospital where he died of a heart attack.
Today’s sentencing is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila, the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Orleans County District Attorney’s Office, under the direction of Joseph Cardone.
Riverside Woman Convicted of Stealing the Identities of Residents of Medical Facility in Long BeachRead the Press Release
LOS ANGELES – A Riverside woman has been convicted on federal identity theft charges for possessing the identities of more than 50 patients of a residential medical facility in Long Beach formerly known as the Hillcrest Care Center.
Bridgette Jackson, 45, was convicted by a jury yesterday afternoon in United States District Court of conspiring to possess more than 15 identities, possessing more than 15 identities, and aggravated identity theft.
Jackson’s aunt, who testified against her at the trial, was an employee at the Hillcrest Care Center and had access to all of the patient files. According to the testimony at trial, Jackson approached her aunt and asked for personal identifying information of patients. Jackson’s aunt copied or wrote down personal identifying information and provided it to Jackson on three separate occasions. Jackson then used that information to help others file false tax returns in the names of the patients and keep the refunds for themselves. When law enforcement executed a search warrant on Jackson’s residence, officers seized approximately 56 Hillcrest medical records, along with almost 70 other identity profiles, which included names, social security numbers, and dates of birth of individuals other than Jackson. Law enforcement also seized over 50 prepaid debit cards in names of people other than Jackson.
“This identity theft scheme targeted vulnerable victims,” said United States Attorney Eileen M. Decker. “The victims included elderly patients at a convalescent home and a 28-year-old woman with a traumatic brain injury who has lived in a 24-hour nursing facility since she was 16.”
After Jackson’s conviction yesterday, United States District Judge Manuel L. Real scheduled a sentencing hearing for March 7. At that time, Jackson will face a mandatory minimum sentence of two years in federal prison and a statutory maximum sentence of 17 years.
In an unrelated case, Jackson pled guilty last year to conspiring to commit credit card fraud in the United States District Court in Riverside and faces up to five years when she is sentenced in that case on March 28.
The Los Angeles case was investigated by the United States Secret Service, and the Riverside case was investigated by the United States Postal Inspection Service.
Project Safe Childhood Initiative to Visit Smith Vocational Agricultural High SchoolRead the Press Release
BOSTON – On Thursday, January 21, 2016, the U.S. Attorney’s Office will host a presentation on Internet safety for students, parents, and members of surrounding communities at Smith Vocational Agricultural High School.
The presentation, entitled “Keeping Kids Safe and Secure Online: A Project Safe Childhood Presentation for Parents,” will include a variety of Internet safety topics including: Social Media 101; digital footprint; gaming; cyberbullying; sexting; sextortion; Internet predators; and being safe and secure online. Presenters include members of the U.S. Attorney’s Office as well as an agent from the Department of Homeland Security.
The event will be held in the Smith Vocational cafeteria located at 80 Locust Street in Northampton at 6:30 p.m. Parents and students from Northampton and surrounding communities are welcome to attend.
In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/
Preston County, WV man sentenced to 15 years in prison for production of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Robert J. Gongloff, 26, of Terra Alta, West Virginia, was sentenced today to 180 months in prison after he admitted to producing child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Gongloff, originally from Preston County and now a resident of Weirton, West Virginia, pled guilty in August 2015 to one count of “Production of Child Pornography.” By pleading guilty, Gongloff admitted that he had produced numerous images and videos depicting nude minors and minors engaged in sexually explicit conduct.
Authorities further discovered that Gongloff misrepresented his name and age on a website known as MeetMe.com, claiming to be 17 years old and using the name “Johnny Williamson,” in order to transmit sexually explicit photographs to multiple minor females.
"This conviction and sentence should serve as a stern warning about the consequences awaiting individuals who prey on the most vulnerable members of our communities - our children," said John Kelleghan, Special Agent in Charge of Homeland Security Investigations’ Philadelphia Field Office. "Protecting our children from predators remains an HSI priority, and we will continue to work closely with our law enforcement partners to identify, arrest and bring these predators to justice."
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. U.S. Immigration and Customs Enforcement's Homeland Security Investigations led the investigation with assistance from the West Virginia State Police
U.S. District Judge John Preston Bailey presided.
Portland Man Pleads Guilty to Bank Robbery ChargeRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jimmy Odong, 25, of Portland, pled guilty yesterday in U.S. District Court to bank robbery. The charge arises out of the July 17, 2015 robbery of Key Bank in Freeport, Maine.
According to court documents, on July 17, 2015, at about 2:30 p.m., Odong stole a vehicle and cell phone from a woman in Portland. At about 3:00 p.m., he entered the Key Bank branch wearing a wig and sun glasses, pointed what appeared to be a gun at tellers and demanded cash. After tellers complied, Odong absconded with about $11,700. He drove from scene of the robbery in the stolen vehicle. Police recovered it and a forensic examination revealed the defendant’s partial palm print on the outside of the vehicle. On July 23, 2015, the defendant was arrested and found to be carrying about $1,180 in cash and the carjacking victim’s cell phone.
The defendant faces up to 20 years in jail and a $250,000 fine. He will be sentenced after completion of a presentence investigation report prepared by the U.S. Probation Office.
The investigation was conducted by Federal Bureau of Investigation (“FBI”); the Freeport, Portland and Brunswick Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “this bank robbery was quickly solved because local, state, and federal law enforcement agencies worked closely together.”
Palm Beach County Resident Sentenced to Prison Following Wire Fraud and Criminal Contempt ConvictionsRead the Press Release
A Palm Beach County man was sentenced yesterday to 27 months in federal prison, following his wire fraud and criminal contempt convictions.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Danny Banks, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
David Lee Ortiz, 39, of Palm Beach County, was sentenced by United States District Judge Robin L. Rosenberg in Fort Pierce, following his prior plea of guilty to telemarketing wire fraud, in violation of Title 18, United States Code, Section 1343 and contempt of court, in violation of Title 18, United States Code, Section 401(3).
According to statements made in court and documents filed in the case, Ortiz committed online and telemarketing fraud in the form of fraudulent foreign exchange (forex) investment scams, via the internet and email, among other means. Ortiz collected from his victims approximately $420,000 through fraudulent websites and advertisements offering returns of 10% per month on forex contracts and currency trades. Ortiz represented that investor funds would be kept in individual investor accounts for his clients, but they were in fact aggregated and commingled. The defendant invested some of the money with losing forex positions at two licensed Futures Commission Merchants. The remainder of the money Ortiz diverted for his own personal use.
To attract investors, Ortiz established internet websites. In July 2008, Ortiz set up “forexisgreatfor.me,” on which he falsely claimed to have over thirty years in forex trading experience, as well as that he was registered with the Securities and Exchange Commission. In October 2009, Ortiz also established the website “forexfuturestrader.com,” again falsely claiming to provide daily updates accessible online for individualized investor accounts, as well as promising 100% returns within 12 months.
Ortiz misappropriated at least $232,000 by, for example, using the funds for personal shopping at retail department stores, travel, resort hotels, restaurants, utility bills, personal credit cards and car payments, and by sending, or having some customers send their funds directly, to Ortiz’s wife and her business, who also did not use those funds for forex trading. Between 2008-2011, Ortiz solicited and accepted investments from clients, placed the monies in accounts he personally controlled, invested some of it in losing forex trades, and used the remainder for personal purchases. Ortiz created false account statements, purporting to show the clients that they were making profits on imaginary forex contracts placed for them by Ortiz. When customers tried to recover all or part of their monies, usually in accordance with withdrawal provisions of a written contract which Ortiz had them sign, they regularly met evasion or delay from Ortiz.
The Commodity Futures Trading Commission (CFTC) investigated Ortiz, and filed a civil enforcement action against him in the Southern District of Florida in February 2011. The CFTC sought Court orders directing rescission of the investment contracts and return to the investors of all their monies. Chief United States District Judge K. Michael Moore signed a permanent injunction against Ortiz on June 30, 2011, directing Ortiz to return the investors’ money and rescind all the investment contracts. The injunction also forbade Ortiz from soliciting or accepting funds from any future investors.
During July and August 2011, Ortiz nonetheless continued to solicit and accept funds from investors. In particular, he met with and took $2,800 from a retired Air Force employee living in Odessa, Texas. Twice in September 2011, Ortiz emailed the investor false account statements purporting to show gains and profits from forex trades. The CFTC filed a motion for civil contempt against Ortiz for his failure to abide by the permanent injunction. On June 4, 2012, Chief Judge Moore held an evidentiary hearing on the civil contempt motion, at which Ortiz appeared pro se. Following the hearing, the CFTC filed a joint proposed agreed order (which the Court approved and entered on June 6, 2012) setting forth a timetable for Ortiz to submit a sworn accounting and repayment of monies, no later than August 6, 2012. On August 6, 2012, Ortiz filed a document with the Court, stating that he had received the $2,800 from the Texas investor, but that Ortiz was unable to comply and pay any monies to the aggrieved investors.
Mr. Ferrer commended the investigative efforts of the CFTC, FDLE, FBI, and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Rhode Island Electronics Parts Company That Defrauded Customers is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY WARGA, 62, of North Kingstown, R.I., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation and was ordered to pay a $10,000 fine for supplying customers with falsely remarked microprocessor chips, many of which were used in U.S. Military and commercial helicopters.
According to court documents and statements made in court, Jeffrey Krantz was the CEO and an owner of Harry Krantz, LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers. In 2005, Krantz entered into a business relationship with WARGA, the president and owner of Rhode Island-based Bay Components, LLC, to sell military microprocessor chips to Bay Components, which would in turn sell them to a Connecticut company. Krantz and WARGA knew that the Connecticut company wanted new and original chips, not falsely remarked chips.
Between 2005 and 2008, Krantz purchased and sold, and caused to be purchased and sold, more than 1,000 chips to Bay Components, which, in turn sold them to the Connecticut company. The chips were marked with certain information, including a certain manufacturer’s name and trademark, a date code, and a military part number. In approximately December 2005, the first shipments of about 330 chips that Krantz had sold to Bay Components were rejected by the Connecticut company for being the wrong part because the chip contained the wrong die inside. In 2006, Krantz replaced those chips with at least some of the replacement chips bearing the date code 9832. Between 2006 and 2008, Krantz sold and caused to be sold at least 900 chips with date code 9832 to Bay Components, the majority of which were sold to the Connecticut company. The co-conspirators knew that the chips originated from a parts supplier in China, and there was a high probability that they were falsely remarked not the original chips of the certain manufacturer as represented by the markings on the chip.
The investigation revealed that many of the chips were used in the assembly of U.S. Military and commercial helicopters. The chips have been examined and determined not to be the root cause of any mechanical problems experienced by the helicopters to date.
On December 12, 2014, WARGA pleaded guilty to one count of conspiracy to commit wire a fraud.
On July 28, 2015, Krantz pleaded guilty to one count of wire fraud. On December 10, 2015, he was sentenced to three years of probation and was ordered to pay a $100,000 fine.
A restitution hearing in this matter is scheduled for March 4, 2016.
This ongoing investigation is being conducted by the Defense Criminal Investigative Service, the U.S. Department of Transportation, Office of Inspector General, and the U.S. Army CID, Major Procurement Fraud Unit. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Office Manager Pleads Guilty to Stealing More Than $580,000 from Birmingham Surgical PracticeRead the Press Release
BIRMINGHAM -- The office manager of a Birmingham surgical practice pleaded guilty Tuesday to charges that she stole at least $580,000 from her employer, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
ANNTWINE MOSS, 49, of Bessemer, entered her plea before U.S. District Judge Karon O. Bowdre to five counts of wire fraud and four counts of tax evasion for stealing from Thoracic and Cardiovascular Surgery of Alabama between 2006 and 2013. Sentencing is scheduled June 9.
According to the indictment and Moss’ plea agreement with the government, she executed a scheme to defraud the surgical practice by using her authority as office manager to write unauthorized checks to herself, make unauthorized direct deposits into her account, and use the company's credit cards for unauthorized personal purchases. As office manager, Moss had authority over several key functions including payroll, accounting, bookkeeping and managing the office's budget. She falsified her personal tax returns for several years by failing to report to the IRS the illicit income she stole from TCVSA.
The maximum penalty for each wire fraud count is 20 years in prison and a fine of $250,000, while the tax evasion count carries a maximum penalty of 20 years in prison and a $100,000 fine.
The FBI and IRS investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
New Orleans Woman Sentenced for Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BETH MARIE NGUYEN, age 38, of New Orleans, was sentenced today after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute one kilogram or more of heroin.
U.S. District Judge Carl J. Barbier sentenced NGUYEN to 36 months of incarceration, to be followed by 3 years of supervised release.
NGUYEN was one of twelve defendants charged in a 23-count indictment on July 25, 2014. According to court documents, this indictment sprung from an investigation into a heroin-trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in the New Orleans area. As part of the arrests in this case, federal agents have seized from the twelve defendants approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry, and real property) as proceeds made from the sale of heroin.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
New Orleans Man Pleads Guilty for Failure to Register as a Convicted Sex OffenderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BENIAIH LEWIS, age 26, a resident of New Orleans, pled guilty today to failure to register as a sex offender in violation of the Sex Offender Registration and Notification Act.
According to court records, LEWIS was convicted of Possession of Child Pornography in violation of California Penal Code Section 311.11(a) on October 3, 2012, and, because of his conviction, LEWIS was required to register as a sex offender for life pursuant to the Sex Offender Registration and Notification Act. LEWIS completed his last known sex offender registration form with the Fresno Police Department in California in 2013. At some time after August 2013, LEWIS moved from California to Louisiana and failed to notify law enforcement authorities of his move to Louisiana. On July 29, 2015, LEWIS was arrested at his residence by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations and the U.S. Marshals Service. LEWIS has been in federal custody since his arrest.
If convicted of the failure to register charge, LEWIS faces a maximum term of imprisonment of ten years, a fine of $250,000 and up to five years of supervised release. U.S. District Judge Eldon Fallon will sentence LEWIS on April 28, 2016.
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 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI, the U.S. Marshals Service, and the Fresno California Police Department in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Navajo Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Gregory Secatero, 32, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., pleaded guilty this morning in federal court to assault charges under a plea agreement with the U.S. Attorney’s Office.
Secatero was arrested on Feb. 12, 2015, on a criminal complaint charging him with assault resulting in serious bodily injury and child abuse in Indian Country. Court documents indicate that on Jan. 17, 2015, Secatero was involved in a car crash that seriously injured two passengers, a female and a child, in Secatero’s vehicle. Both victims were ejected from the vehicle; the female suffered a punctured left lung and seven left rib fractures and the child suffered a small subdural hematoma and left femur spiral fracture. Two other children were in the vehicle, but were not seriously injured. Secatero was intoxicated at the time of the crash.
Secatero was subsequently indicted on March 10, 2015, and charged with two counts of assault resulting in serious bodily injury and one count of child abuse for endangering the lives of three children. According to the indictment, Secatero committed the crimes in Indian Country in Bernalillo County, N.M.
During today’s proceedings, Secatero pled guilty to two counts of assault resulting in serious bodily injury. In entering his guilty plea, Secatero admitted assaulting the victims, causing them to sustain serious bodily injuries, by driving under the influence of alcohol.
At sentencing, Secatero faces a maximum sentence of ten years in federal prison followed by up to three years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Shammara Henderson.
Moscow Man Pleads Guilty to Interstate Communication of ThreatsRead the Press Release
COEUR D'ALENE - Paul Jens Suggs, 19, of Moscow, Idaho, pleaded guilty yesterday to interstate communication of threats, U.S. Attorney Wendy J. Olson announced. Suggs was indicted by a federal grand jury in Coeur d'Alene on December 15, 2015.
According to the plea agreement, Suggs admitted that in September 2015, he made several posts on Facebook threatening to shoot a man in Moscow and to shoot law enforcement officers in Moscow and Pullman, Washington. Additionally Suggs posted that he was going to kill the family members of the officers.
The charge of interstate communications of threats is punishable by up to five years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for April 5, 2016, before U.S. District Judge Candy W. Dale at the federal courthouse in Coeur d'Alene.
The case was investigated by the Pullman Police Department, Moscow Police Department and the Federal Bureau of Investigation (FBI).
More Than 50 Individuals Charged in Massive Corruption, Fraud and Money Laundering Schemes Operated from inside Georgia State PrisonsRead the Press Release
ATLANTA – Numerous Georgia Department of Corrections employees, inmates and individuals outside the prison system have been charged federally with conspiring to commit wire fraud, conspiring to commit money laundering, and accepting bribes to smuggle contraband into Georgia prisons. Much of the alleged criminal activity was committed inside Georgia state prisons and was initiated by inmates.
“The indictments allege that inmates managed and directed a number of elaborate fraud schemes that victimized citizens from across the country from within the Georgia prison system using contraband cell phones,” said U.S. Attorney John A. Horn. “Since September 2015, we have charged 75 people with criminal conduct that is initiated from within state prisons. The unfortunate common denominator to this criminal conduct is the pervasive availability of contraband cell phones, which allows too many prison inmates to continue victimizing our communities while serving their sentences.”
“Prisons should be a deterrent for individuals on both sides of its walls. Acquiring cell phones and smart phones have, however, emboldened current and former inmates and their associates to engage in criminal conduct with a perceived impunity from law enforcement officials. In many of these cases, the corrections officers themselves facilitated the introduction of the prohibited cell phones into the prisons, thereby allowing these criminal enterprises to continue and even expand. The FBI will continue to pursue investigations involving public corruption as seen here and will continue to work with its Georgia Department of Corrections partners in addressing these and other problems posed by the illegal introduction of cell phones within the confines of prison walls,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the indictment, and other information presented in court: The Georgia Department of Corrections (“GA DOC”) is the agency responsible for overseeing the operations of the Georgia state prison system and its more than 50,000 inmates. Jimmy Autry State Prison (“Autry”) is a GA DOC prison located in Pelham, Georgia. Autry is a medium security prison that houses approximately 1,700 adult male inmates.
Under the Official Code of Georgia § 42-5-18, it is unlawful to give an incarcerated GA DOC inmate a cellular telephone and it is unlawful for a GA DOC inmate to possess a cellular telephone while incarcerated. Accordingly, within the GA DOC prison system, cellular telephones are considered to be contraband.
Nevertheless, GA DOC inmates regularly obtained cellular telephones while incarcerated. For example, from 2014 to 2015, GA DOC officials seized more than 23,500 cellular telephones from inside Georgia state prisons. Many of the seized cellular telephones possessed Internet capabilities and the latest smartphone features. Frequently, the seized cellular telephones were smuggled into GA DOC prisons by correctional officers or other prison employees. The possession of cellular telephones by GA DOC inmates creates a significant risk to prison security and to public safety, as GA DOC inmates used contraband cellular telephones to commit various criminal acts while incarcerated. The indictments also allege that correctional officers smuggled other contraband into Autry, such as tobacco products and drugs in exchange for bribes.
Inmates allegedly used contraband cellular telephones from inside Autry to access Internet websites to identify the names, addresses, and telephone numbers of potential fraud victims. Using the cellular telephones, inmates called the victims whose names and numbers had been obtained. During these calls, the inmates made certain false representations to the victims, including: (a) that the inmates were law enforcement officials; (b) that the potential victims had unlawfully failed to appear for jury duty; (c) that because the potential victims had failed to appear for jury duty, warrants had been issued for the victims’ arrest; and (d) that the potential victims had a choice of being arrested on the warrants or pay fines to have the arrest warrants dismissed. To make the calls seem real, the inmates created fictitious voicemail greetings on their contraband cellular telephones, identifying themselves as members of legitimate law enforcement agencies.
For those victims who wanted to pay a fine, the inmates instructed them to purchase pre-paid cash cards and provide the account number of the cash card or wire money directly into a pre-paid debit card account held by the inmates. Based on these false representations, the victims electronically transferred money to the inmates because they believed that the funds would be used to pay the fine for failing to appear for jury duty and would result in the dismissal of the arrest warrant.
After a victim provided an inmate with the account number of the pre-paid cash card, the inmates then used their contraband cellular telephones to contact co-conspirators, who were not incarcerated, to have those individuals transfer the money from the cash card purchased by the victims to a pre-paid debit card possessed by the co-conspirators. Next, the co-conspirators withdrew the victim’s money, which had been transferred to the pre-paid debit card they controlled, via an automated teller machine or at a retail store. Typically, the co-conspirators then laundered the stolen money by purchasing a new cash card so that the victims’ funds could be transferred back to the inmates.
In connection with these schemes, a federal grand jury has returned multiple indictments charging the following individuals:
-
Shalonda Baker, 33, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Leanna Bearden, 25, of Cairo, Georgia, has been charged with conspiring to commit money laundering.
-
Iesha Bell, 25, of Waco, Texas, has been charged with conspiring to commit money laundering.
-
Austin Bradley, a/k/a “Red,” 22, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
-
Ashley Butler, 28, of Macon, Georgia, has been charged with conspiring to commit money laundering.
-
Karhary Campbell, 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
-
Toccara Cantrell, 30, of Gainesville, Georgia, has been charged with conspiring to commit money laundering.
-
Cellie Clark, 35, of Lynchburg, Virginia, has been charged with conspiring to commit money laundering, and money laundering.
-
Jokelera Copeland, 28, of Doerun, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Jonathan Jamaal Daniels, 22, of Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.
-
Willa Davis, 60, of Las Vegas, Nevada, has been charged with conspiring to commit money laundering.
-
Tyler Dickens, 22, of Bainbridge, Georgia, formerly a Correctional Officer at Autry State Prison and formerly an Early County Sheriff’s Deputy, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Renaldo Freeman, 30, of Pelham, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Caeser Futch, 36, of Lithonia, Georgia, a paroled inmate from Autry and Phillips State Prisons, has been charged with conspiring to commit money laundering.
-
Dayia Gilbert, 23, Camilla, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Keri Hatcher, 29, of Aurora, Colorado, has been charged with conspiring to commit money laundering.
-
Chameta Isom, 32, of Camilla, Georgia, a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Bettie Jones, 53, of Dawson, Georgia, has been charged with conspiring to bribe correctional officers at Autry State Prison to smuggle contraband into the prison.
-
Brian Kennedy, 25, of Thomasville, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments to smuggle contraband into the prison.
-
Laporshia Knight, 40, of Macon, Georgia, has been charged with conspiring to commit money laundering.
-
Ricky Knight, a/k/a “Slick,” 36, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
-
Melissa Lloyd, 35, of Lawrenceville, Georgia, has been charged with conspiring to commit money laundering.
-
Jessee Lopez, a/k/a “Loco,” 37, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe Correctional Officers to smuggle contraband into the prison.
-
Calvin Martin, 21, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Amber Mayes, 29, of Dublin, Georgia, has been charged with conspiring to commit money laundering.
-
Sharron McCoy, a/k/a “Ron G,” 26, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud, to commit money laundering, and to bribe correctional officers to smuggle contraband into the prison.
-
Cassaundra McGhee, 45, of McDonough, Georgia, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.
-
Tadia Mercer, 41, of Leesburg, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with extortion under color of official right.
-
Kiatya Milton, 42, of Sylvester, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
-
Tangela Parks, 33, of Lithonia, Georgia, has been charged with conspiring to commit money laundering.
-
Steven Patterson, 29, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
-
Reginald Perkins, 35, of Atlanta, Georgia, a paroled inmate from Autry State Prison, has been charged with conspiring to commit money laundering.
-
David Pinder, a/k/a “Wolf,” 30, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
-
Anthony Powell, a/k/a “Bo,” 39, formerly an inmate at Autry State Prison, has been charged with wire fraud, conspiring to commit money laundering, and money laundering.
-
Aida Rosa, 27, of Virginia Beach, Virginia, has been charged with conspiring to commit money laundering.
-
Anthony Sanders, a/k/a “Stick ‘em Up,” 25, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
-
Terrance Shields, a/k/a “DK,” 41, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
-
Clifford Smalls, a/k/a “D Boy,” 31, formerly an inmate at Autry State Prison, has been charged with wire fraud and money laundering.
-
Shameik Spinks, 22, formerly an inmate at Autry State Prison, has been charged with conspiring to bribe correctional officers to smuggle contraband into the prison.
-
Shebrikia Stewart, 28, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Joseph Tate, Jr., a/k/a “Cool,” 34, formerly an inmate at Autry State Prison, has been charged with conspiring commit wire fraud and money laundering.
-
Edward Townsend, 40, formerly an inmate at Autry State Prison, has been charged with conspiring to commit money laundering.
-
Derrick Watson, 36, formerly an inmate at Autry State Prison, has been charged with conspiring to smuggle contraband into the prison.
-
Veronica Watters, 38, Atlanta, was charged with conspiring to have contraband smuggled into the prison.
Douglas Welch, 34, of Cordele, Georgia, has been charged with conspiring to commit money laundering and conspiring to bribe correctional officers to smuggle contraband into the prison.
-
Benjamin Williams, a/k/a “Ohio,” 24, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
-
Quintavious Williams, 20, of Dawson, Georgia, has been charged with conspiring to bribe corrections officers to smuggle contraband into the prison.
-
Shameka Williams, 31, of Albany, Georgia, a Correctional Officer at Autry State Prison, has been charged with accepting bribe payments in exchange for not reporting criminal acts of other Corrections Officers.
-
Christina Wilson, 34, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to accept bribe payments to smuggle contraband into the prison.
-
Ermesha Wingfield, 25, of Albany, Georgia, formerly a Correctional Officer at Autry State Prison, has been charged with conspiring to bribe Correctional Officers to smuggle contraband into the prison.
-
Rokei Winston, a/k/a “Double R,” 32, formerly an inmate at Autry State Prison, has been charged with conspiring to commit wire fraud and money laundering.
In total, 15 current or former Autry correctional officers, 19 current or former GA DOC inmates, and 17 individuals have been charged by the grand jury in the fraud and bribery schemes.
Members of the public are reminded that the indictments only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
These cases are being investigated by the Federal Bureau of Investigation the Georgia Bureau of Investigation and the Georgia Department of Corrections Office of Professional Standards.
Assistant United States Attorneys Brent Gray, Shanya Dingle, John Ghose, Steven Grimberg, Nicolas Hartigan, Christopher Huber, Jennifer Keen, Brian Pearce, William Traynor, and Mary Webb are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
-
Modesto Felon Faces Charges for Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today charging Reyes Lopez Magana, 37, of Modesto, with being a felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.
According to the indictment, on July 27, 2015, Magana, a previously convicted felon, was in possession of a Jimenez Arms 9 millimeter handgun that was loaded with 9 millimeter ammunition.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Modesto Police Department. Assistant United States Attorney Daniel Griffin is prosecuting the case.
If convicted, Magana faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Middlesex County, New Jersey, Man Charged with Transporting More Than $200,000 Worth of Stolen Barnes & Noble MerchandiseRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man will appear in federal court today to face charges that he used eBay to sell more than $200,000 worth of Barnes and Noble merchandise he shoplifted using a “booster bag,” U.S. Attorney Paul J. Fishman announced.
Dominick James Izzo, 49, of Piscataway, New Jersey, and Port Orange, Florida, is charged by criminal complaint with one count of transportation of stolen goods. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on a $250,000 unsecured bond.
According to the complaint:
Izzo allegedly stole merchandise from Barnes & Noble stores in New Jersey, Florida and elsewhere using a “booster bag” to evade anti-theft alarms. He then listed the stolen merchandise on eBay using nominee seller accounts to conceal his identity. Izzo accepted payment for the stolen merchandise from purchasers via nominee PayPal accounts. Once Izzo received funds via domestic wire transfer from the purchasers, he shipped the stolen merchandise from New Jersey and Florida to the purchasers in several different states.
The transportation of stolen goods charge is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Miami Resident Pleads Guilty in Stolen Identity Tax Fraud SchemeRead the Press Release
A Miami resident pled guilty for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.
Ronel Junior Lamour, 25, pled guilty to one count of possession of fifteen or more counterfeit access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. At sentencing, Lamour faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, in 2013, Lamour used names, dates of birth and Social Security numbers of other people to file 2012 tax returns. As part of the scheme, Lamour set up bank accounts using unauthorized debit cards in the names of the filers and had the refunds wired into the accounts.
Court documents state that Lamour also fraudulently used debit card account numbers, issued to other persons, to purchase United States Postal Service (USPS) money orders. On two separate occasions, Lamour deposited these USPS money orders into a bank account.
Federal law enforcement conducted an electronic search of Lamour’s cell phone pursuant to a warrant. The phone contained copies of passports, driver’s licenses and Social Security cards of over fifty (50) individuals. This information was forwarded to the IRS Scheme Development Center and twenty-five (25) of those individuals were found to have had false 2012 tax returns filed in their names.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USPIS. The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Cartel Member Sentenced to Prison for Conspiracy Involving over 400 Kilograms of MethamphetamineRead the Press Release
ATLANTA - Israel Garcia-Villanueva has been sentenced to over 17 years in prison for his involvement in a conspiracy to traffic over 400 kilograms of methamphetamine. He received shipments of methamphetamine and coordinated its delivery in Atlanta, Georgia, and throughout the Southeast.
“The Mexican cartel that employed Garcia-Villanueva shipped massive amounts of methamphetamine into the Atlanta area from the Mexican border,” said U.S. Attorney John Horn. “Garcia-Villanueva was this cartel’s point of contact, coordinating drug shipments for distribution in this country. We are committed to disrupting these sophisticated drug organizations by seizing their shipments of narcotics and getting their members off the streets.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said of the sentencing, “Mexican drug cartels are the source of so many dangerous drugs destined for our country and are responsible for much of the violence in Mexico today. This sentencing illustrates how DEA and its law enforcement counterparts will not allow these drug traffickers to wreak havoc on our society.”
According to U.S. Attorney Horn, the charges and other information presented in court: From at least April 2014 through the November 2014, Israel Garcia-Villanueva coordinated large shipments of methamphetamine into the Atlanta metro-area on behalf of a group affiliated with the Knights Templar drug cartel in Mexico. His co-conspirators sent methamphetamine from Mexico into the United States in a variety of ways, including hiding it in cars with sophisticated, hidden electronic traps, car batteries, diesel fuel tanks, and even statue molds. Garcia-Villanueva also coordinated delivery of the methamphetamine throughout the Southeast.
As part of his drug trafficking operations, Garcia-Villanueva used multiple residential homes as methamphetamine “stash houses,” including one house in the Lawrenceville, Georgia area. The houses were used to safeguard methamphetamine shipments, process the drugs for redistribution, and store drug proceeds. Garcia Villanueva was also tasked with sending drug proceeds back to Mexico and did so by sending cash with people who drove it over the U.S.-Mexico border and by wiring money to a number of individuals in Mexico. Although Garcia-Villanueva executed orders given by members of his organization in Mexico, he supervised and managed a crew in the United States that assisted him with his methamphetamine distribution operations.
Israel Garcia-Villanueva, 22, of Guerrero, Mexico, has been sentenced to 17 years, six months in prison to be followed by five years supervised release. Garcia-Villanueva was convicted on these charges on June 8, 2015, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Kamal Ghali prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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.
Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
BOISE – Clifford R. Crabtree, 32, of Caldwell, Idaho, was sentenced today in United States District Court to 46 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Crabtree to serve three years of supervised, during which he will be prohibited from associating with gang members.
According to court records and information presented in court, law enforcement officers received information that Crabtree, a documented Southside gang member, was engaged in the sale of methamphetamine. Officers utilized a confidential human source to purchase methamphetamine from Crabtree on two occasions. On June 24, 2014, the confidential human source traveled to a residence in Caldwell, Idaho to purchase methamphetamine from Crabtree. Crabtree introduced the confidential human source to co-defendant Efren Garcia Jr. who was sitting in a parked vehicle a short distance down the road. Garcia provided methamphetamine to the confidential human source and Crabtree was paid for facilitating the transaction at the direction of Garcia. The second controlled purchase occurred on August 5, 2014. During the transaction, Crabtree sold one-quarter ounce of methamphetamine to the confidential human source. Crabtree and Garcia were indicted by a federal grand jury on April 14, 2015. Crabtree pleaded guilty on November 12, 2015. Garcia pleaded guilty on October 29, 2015, and is currently awaiting sentencing.
This case was the result of an investigation by the Treasure Valley Metro Violent Crime Task Force. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Medical Reimbursement Systems, Inc. to Pay $500,000 to Resolve Allegations That It Submitted False Claims to Military Health InsurerRead the Press Release
ALBANY, NEW YORK: Medical Reimbursement Systems, Inc., a Massachusetts-based company that provides billing, coding, compliance and revenue cycle services to hospitals and physician practices, will pay $500,000 under the False Claims Act to resolve allegations that it submitted false claims to the TRICARE Program regarding a client’s eligibility to receive bonuses intended for providers who render care in qualifying Health Professional Shortage Areas (“HPSAs”), announced United States Attorney Richard S. Hartunian.
TRICARE is the uniformed health care program for active duty and retired service members, National Guard and Reserve members, family members, survivors and other eligible beneficiaries. HPSAs are geographic areas, population groups, or facilities that lack sufficient health care providers to meet the health care needs of the area or population. The federal government has implemented various reimbursement policies designed to encourage providers to treat beneficiaries in these underserved areas. Physicians who provide covered services in areas designated as geographic HPSAs are entitled to receive 10-percent bonus payments above the amount ordinarily reimbursed for Medicare-covered professional services. These “HPSA bonuses” are also available to providers who treat TRICARE beneficiaries in geographic areas that qualify for the bonus from Medicare. To obtain HPSA bonuses from TRICARE, billers must certify to the government that services were rendered in a qualifying HPSA.
In May 2009, Medical Reimbursement Systems, Inc. (“the Company”) entered into a billing services agreement with a physician group (“the Practice”) in Watertown, New York. Under that agreement, the Company agreed to provide coding, billing, physician education, and data entry services for the Practice. In exchange, the Company was paid a percentage of its net collections from the Practice.
Shortly after the Company and the Practice entered into that agreement, they began discussions about the Practice’s eligibility to receive HPSA bonuses from TRICARE. Despite the Company being informed that the Practice was not in a qualifying HPSA and therefore not entitled to the bonuses, the Company, at the Practice’s request, continued to certify to TRICARE that services were rendered in a qualifying HPSA. Significantly, according to the settlement agreement, a Company employee wrote the Company’s vice-president in 2009 to explain that they were billing TRICARE as if the Practice was in a “geographical area and they should not be.” The following week, that same employee reiterated that the Practice does not qualify for the HPSA bonus, and warned the Company’s vice president: “We need to stop billing this before we get in trouble.” The Company continued to bill TRICARE for HPSA bonuses on the Practice’s behalf through October 2014.
The Company, which accepted responsibility for the facts set forth in the settlement agreement, acknowledged that it was inappropriate under the circumstances for it to have sought HPSA bonuses from TRICARE for the Practice. It also agreed to hire an outside consultant to conduct TRICARE-specific billing training for its staff, and to appoint a new compliance officer with appropriate training or certification who will report directly to the Chief Executive Officer and whose responsibilities will include ensuring compliance with the statutes, regulations, and guidelines applicable to federal healthcare programs.
United States Attorney Hartunian said: “Healthcare providers rely on billing companies to assist them in processing claims in accordance with applicable statutes and regulations. While Medical Reimbursement Systems, Inc. should not have submitted claims for HPSA bonuses on its client’s behalf in these circumstances, I commend the Company and its management for accepting responsibility for this issue and for agreeing to implement forward-looking compliance measures to assure adequate systems are in place to facilitate and promote ethical and legal conduct.”
“This civil settlement demonstrates the continued commitment of the Defense Criminal Investigative Service (DCIS), partnering with the Defense Health Agency (DHA) and the United States Attorney’s Office for the Northern District of New York, to protect military members and their families and every other American taxpayer from those who seek to exploit our nation’s healthcare programs, including TRICARE,” said Craig W. Rupert, Special Agent in Charge, DCIS Northeast Field Office, United States Department of Defense Office of the Inspector General. “A company’s organized false and inappropriate billing, either through fraudulent schemes or willful ignorance, steals away hard-earned tax dollars, erodes public confidence, and undermines the mission of our military. We will continue to tirelessly pursue and investigate healthcare fraud allegations in order to shield America’s investment in national defense.”
Today’s settlement marks the fourteenth matter that this office, working in partnership with DCIS and DHA, has resolved since July 2015 involving improper claims for HPSA bonuses from TRICARE. Combined, these cases have returned $2,947,322.41 to TRICARE to continue to provide health care to members of our Nation’s armed services and their families. The United States was represented in each of these cases by Assistant United States Attorney Adam J. Katz.