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Monday 21 December 2015
Texas Nurse Convicted of Health Care FraudRead the Press Release
PLANO, Texas – A Denton County, Texas, nurse has been convicted of 9 counts of health care fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Florence Kroma a/k/a Florence Kamara a/k/a Florence Koroma a/k/a Florence Bangura, 55, of Denton, Texas, was found guilty by a jury of nine counts of health care fraud late Friday evening following a four day trial before U.S. District Judge Marcia A. Crone.
According to information presented in court, Kroma, a registered nurse, owned and operated Mt. Zion Home Health Agency in Denton, Texas. From April 2008 to October 2013, Kroma carried out a scheme to defraud Medicare through the submission of false and fraudulent claims for skilled nursing services which were not provided and which were not authorized by the patients’ physicians. At times, Kroma submitted claims for services which she allegedly provided when she was out of state. At other times, Kroma submitted claims for services which she allegedly provided to patients who testified that they did not know her and had never heard of her company. Kroma was indicted by a federal grand jury on June 11, 2015.
Kroma faces up to 10 years in federal prison for each health care fraud conviction. A sentencing date has not been set.
The case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI) and the U.S. Department of State.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477)
Statement of U.S. Attorney Preet Bharara on Letter to New York City Department of Education About Noncompliance with ADARead the Press Release
“This morning, my Office issued a letter to the New York City Department of Education setting forth the findings of our investigation into the physical accessibility of New York City public elementary schools. Our investigation revealed that, 25 years after the passage of the Americans with Disabilities Act, the City is still not fully compliant, and children with disabilities and their families are being denied the right to equal access to a public school education. We have asked the City for a response, including an outline and timeline of corrective actions that will remedy this unacceptable state of affairs.”
Stafford County Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
RICHMOND, Va. – Michael P. Johnson, 49, of Stafford County, was sentenced today to 360 months in prison for production of child pornography. The court also ordered that Johnson remain on supervised release for life, following his release from incarceration.
“For approximately three years, Michael P. Johnson repeatedly raped and sodomized a child and produced hundreds of images and videos memorializing the abuse,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The physical, emotional, and psychological harm a child suffers from sexual abuse and sexual exploitation through molestation and the production of child pornography is well known. This case is no different. The harm the victim has suffered at the hands of Johnson will significantly impact the victim for the rest of their life. The sentence Johnson earned today provides just punishment for this egregious offense and addresses the substantial needs of deterrence, protection of the community, and promotion of respect for the law.”
”By his own admission, Mr. Johnson violated a young child, stripping them of their innocence and forever tarnishing their childhood,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office. “A tremendous amount of time and energy was invested by investigators in this case, sorting through massive amounts of evidence; demonstrating the FBI's commitment to expose and hold accountable those who prey on our youth, and offer justice for the victims left in their wake.”
Johnson pleaded guilty on July 8, 2015. According to court documents and evidence presented at sentencing, Johnson was identified after the FBI learned that a computer located within his residence was using a website to upload and download files containing child pornography. Based on this information, the FBI obtained and executed a search warrant for Johnson’s residence on April 22, 2015. During the search, Johnson agreed to be interviewed and admitted that he would use the Internet to search for, download, and distribute child pornography. Johnson also admitted sexually abusing a four- or five-year-old female for approximately three years and to photographing and recording the abuse.
At the conclusion of the search, the FBI seized numerous pieces of computer equipment. A forensic examination of the seized items revealed the video to which Johnson pled guilty, as well as an additional 260 images and 102 videos of the victim engaged in sexually explicit conduct. In addition, the FBI recovered more than 146,000 images and 22,000 videos of child pornography from Johnson’s computers.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Special Assistant U.S. Attorney Thomas K. Johnstone IV prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-84.
Southwest Airlines Agrees to Pay $2.8 Million to Settle Action Alleging Federal Aviation Administration Safety ViolationsRead the Press Release
Southwest Airlines Co. (Southwest) and the United States settled a lawsuit involving allegations that Southwest violated Federal Aviation Administration (FAA) safety regulations in its maintenance of its Boeing 737s, as well as other pending administrative matters, announced the Department of Justice. The settlement requires operational changes by Southwest designed to enhance its oversight of and control over third parties that perform maintenance on Southwest aircraft. Southwest also agreed to pay a $2.8 million civil penalty and up to $5.5 million in deferred civil penalties if it does not implement the operational changes set forth in the settlement agreement.
“The Justice Department believes the settlement agreement with Southwest Airlines Co. will provide meaningful improvements in safety and compliance and further ensure the integrity of FAA air safety regulations,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.
“Safety depends on compliance with our regulations,” said FAA Administrator Michael Huerta. “This agreement provides strong incentives for Southwest to take specific steps to address the compliance problems that the FAA investigations uncovered.”
This case was handled by the Civil Division’s Federal Programs Branch, with the assistance of the U.S. Attorney’s Office of the Western District of Washington, the FAA’s Office of General Counsel and the FAA’s Northwest Mountain Region.
The lawsuit is captioned United States v. Southwest Airlines Co., 14-cv-1693-JCC (W.D. Wa.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
South Carolina Man Indicted for Impersonating FBI Officer in West TNRead the Press Release
Jackson, TN – A South Carolina man who impersonated an FBI agent and unlawfully possessed a firearm at a hotel in West Tennessee has been indicted. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on November 23, 2015, Steven Darnell Lancaster, 45, of Gaston, South Carolina, falsely claimed to be a Special Agent with the Federal Bureau of Investigation (FBI) while at a hotel in Jackson, Tennessee. Lancaster, a felon, allegedly had a Glock .40 caliber pistol and false FBI credentials in his possession during the time frame he committed the impersonation.
Lancaster has been charged with one count of impersonating a federal officer and one count of being a felon in possession of a firearm.
This case is being investigated by the FBI and Jackson Police Department.
Assistant U.S. Attorney Victor L. Ivy is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Sex Offender Sentenced to Prison for Failing to RegisterRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 22 months in jail on his conviction of failure to register under SORNA, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James Foster Wilcox, 28.
According to information presented to the court, Wilcox knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Wilcox.
Seal Beach Man Who Defrauded Dozens of Distressed Homeowners in Foreclosure Rescue Scheme Sentenced to 8 Years in PrisonRead the Press Release
Riverside, California – A Seal Beach man who operated a bogus mortgage rescue scheme – in which he made false promises to dozens distressed homeowners, filed fraudulent bankruptcies to delay foreclosure and rented the properties to third parties as the foreclosure proceedings were delayed – was sentenced today to eight years in federal prison.
Terry Meisinger, 75, was sentenced by United States District Judge Virginia A. Phillips, who rejected Meisinger’s arguments that his age merited a lower sentence. Judge Phillips noted that, even if Meisinger was released from prison when he was 80 years old, he would still pose a danger to the public.
Judge Phillips also ordered Meisinger to pay $1.5 million in restitution to his victims.
Meisinger pleaded guilty in October to two counts of wire fraud.
“This man earned significant profits as the result of his scheme – profits that came as the result of significant financial harm inflicted upon victims,” said United States Attorney Eileen M. Decker. “This scheme operated for years and continued after my office filed a civil lawsuit and he was ordered to cease his fraudulent activities. This trail of victims, most of whom lost their homes, has earned this defendant the lengthy prison term imposed today.”
When he pleaded guilty, Meisinger specifically admitted that he defrauded a distressed homeowner by inducing him to sign a quitclaim in exchange for promises that included negotiating a short-sale agreement with his lender that would free the homeowner from his mortgage on a property in North Las Vegas, Nevada. But, instead, Meisinger caused a deed of trust to be recorded on the property, which was followed by a fraudulent bankruptcy on behalf of the person who supposedly now held an interest in the home. Meanwhile, Meisinger rented out the home to another person while foreclosure proceedings were stayed as a result of the fraudulent bankruptcy.
Meisinger “repeated the process of causing the recording of deeds of trusts in the names of various beneficiaries whose identities he controlled and causing the filing of bankruptcies on behalf of those lenders to delay the foreclosure proceedings, while collecting rents” on property in North Las Vegas, according to the plea agreement filed in this case.
In papers filed in relation to today’s sentencing, prosecutors said that there were more than 250 victims of the scheme, including homeowners, lenders, and renters. Meisinger “collected more than $1.5 million in illicit rent payments on more than 100 properties. Further, he caused more than 300 bogus bankruptcy petitions to be filed in the names of numerous individuals who had no knowledge their identity was being used.”
Meisinger also admitted that his illegal conduct violated Judge Phillips’ court order in a prior civil matter barring Meisinger from participating in the home finance or real estate industries for 10 years (see: http://go.usa.gov/3Sr23). In that order, Meisinger was also barred from filing bankruptcy petitions. Judge Phillips additionally imposed a $5 million civil fine on Meisinger.
“HUD-OIG continues to vigilantly protect FHA insured borrowers from those who conduct fraudulent loan modification schemes. This significant sentence demonstrates our commitment to protecting HUD’s important work in providing affordable home ownership,” said James Todak, Special Agent in Charge of Housing and Urban Development’s Office of the Inspector General.
The criminal case against Meisinger is the result of an investigation by the United States Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG).
School Bus Driver Pleads Guilty to Producing Child PornographyRead the Press Release
NORFOLK, Va. – Larry Carl Homan, 71, of Norfolk, pleaded guilty today to charges of production of child pornography.
According to a statement of facts filed with the plea agreement, in May 2015, a concerned parent complained to her daughter’s school that Homan, a school bus driver in Chesapeake, had acted inappropriately towards her daughter. A review of the surveillance footage from Homan’s school bus resulted in Homan being suspended without pay. The Chesapeake Police Department (CPD) became involved and executed a search warrant at Homan’s residence in Norfolk. A number of electronic devices were seized from Homan’s apartment, including a flash drive that was hidden inside a clock on Homan’s wall. The CPD analyzed the electronic devices and found that Homan had been producing child pornography inside his apartment in Norfolk.
Homan was indicted by a federal grand jury on Oct. 5, 2015, and faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison when sentenced on March 21, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael Goldsmith, Chief of Norfolk Police; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence R. Leonard. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-129.
SCDC Partners with the U.S. Attorney’s Office and ATF for “Real-Time Reentry”Read the Press Release
Contact Person: Lance Crick (864) 282-2100 or Stephen Givens (803) 960-7088
Columbia, S.C. ----- The South Carolina Department of Corrections (SCDC) is partnering with the South Carolina United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to keep guns out of the hands of former offenders.
The project, called “Real-Time Reentry”, is two- fold. With respect to law enforcement, the project focuses on violent offenders and gang members who, after their release, re-offend with firearms while still under SCDC’s Intensive Supervision Services. The program ensures their swift apprehension and referral to federal authorities.
On the prevention side, however, the program offers proactive intervention. Assistant United States Attorneys (AUSAs) from the U.S. Attorney’s office and law enforcement officials visit with Youthful Offenders in prison to educate them about the opportunities and resources they have to lead rehabilitated and productive lives. The dialogue, however, also sensitively emphasizes the significant consequences these individuals might face should they re-offend with a gun while under supervision, post-release. The message is simple but serious - if caught with a firearm or ammunition, you will be taken into custody immediately and your case referred to ATF and the U.S. Attorney’s office in “real time” for federal review and prosecution in federal court, where firearms-related sentences for repeat-offenders are much more substantial.
Real-Time Reentry kicked off, December 7, 2015, when AUSAs and law enforcement officials met with 46 Youthful Offenders at the Trenton SCDC facility. Going forward, the Real Time Reentry team will return once a month to educate and encourage those individuals preparing for re-entry into their communities.
“Real Time Reentry is a multiagency partnership meant to address youthful offenders that are at risk for exposure to state and federal charges. This initiative is focused on available services and creating relationships to assist Youthful Offenders, under our supervision, stay on the straight and narrow” said Bryan Stirling, Director of the South Carolina Department of Corrections.
“Real Time Reentry” is the latest iteration of the U.S. Attorney’s Office Project Cease Fire, a program that in recent years has come to partner local, state, and federal law enforcement with the community. The collective efforts of this partnership continue to foster cooperation in the common goal to make South Carolina safer through reducing gun violence, arrests, and incarceration.
United States Attorney Bill Nettles reflected, “We look forward to partnering with SCDC to provide the Youthful Offender population the necessary help in making the future decision not to possess guns. We believe that prevention is more effective and more cost-efficient than incarceration. However, in the event that our efforts to help these individuals make better decisions are not heeded, we will not hesitate to utilize tools available to us under the criminal code.”
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Rochester Man Sentenced for Threatening President ObamaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Brandon Correa, 31, of Rochester, who was convicted of making threats against the President, was sentenced to 18 months in prison by U.S. District Court Judge Elizabeth A. Wolford. The defendant was also sentenced to 36 months supervised release, during which time he will need to complete mental health and drug treatment.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant posted threats to kill President Obama online in June 2014. Specifically, Correa posted a message on Twitter directed to President Barack Obama in which the defendant wrote “Im coming to watch you die.” The defendant was interviewed shortly after posting the threats and told a Secret Service Agent that the President was “evil” and that he had to “die.”
Correa was released from custody following the threat and was ordered not to have any contact with the President as a condition of his release. However, in August of 2014, the defendant again posted online threats directed against the President and others. Specifically, Correa posted messages on Facebook and Twitter directed to President Obama in which he wrote “GET READY to DIE Barack Obama.”
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, C. Todd Lassiter, Investigators from the New York State Police, Protective Services Unit, under the direction of Major Stephen Nevins, and Investigators from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Randolph Man Charged with Defrauding Dreamworks by Falsely Claiming He Created Kung Fu PandaRead the Press Release
BOSTON – A Randolph man was indicted on wire fraud and perjury charges in connection with his scheme to defraud DreamWorks Animation SKG, Inc., by falsely claiming that the company stole the characters and story for its animated movie, Kung Fu Panda.
Jayme Gordon, 51, was charged in an indictment unsealed today in U.S. District Court in Boston with four counts of wire fraud and three counts of perjury. He is scheduled to appear before U.S. District Court Magistrate Judge Judith D. Dein at 1:30 p.m. today.
“Our intellectual property laws are designed to protect creative artists, not defraud them,” said U.S. Attorney Carmen M. Ortiz. “The misuse of civil litigation as part of a fraud scheme, and lying under oath, as alleged in this case, warp our federal judicial system and must be addressed with appropriate criminal sanctions.”
“As alleged, Mr. Gordon went to great lengths to orchestrate and maintain this fraudulent scheme, trying to take credit for ideas he did not come up with nor work he simply did not do,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This case demonstrates the FBI’s commitment to root out individuals who try to steal ideas and information from hard-working American companies.”
According to the indictment, Gordon filed the lawsuit as part of a fraud scheme designed to obtain a multi-million-dollar settlement from DreamWorks. To further his fraud and persuade DreamWorks to agree to a settlement, Gordon fabricated and backdated drawings of characters similar to those in Kung Fu Panda, lied repeatedly during his deposition, and destroyed computer evidence that he was required to produce in civil discovery.
The indictment alleges that beyond the superficial similarities, the panda characters (pictured below) and story that Gordon created during the 1990s has very little in common with DreamWorks’ movie, Kung Fu Panda.
The indictment alleges that, in early 2008, several months before the movie’s June 2008 release, Gordon saw a trailer for Kung Fu Panda. After seeing that trailer, Gordon revised his “Panda Power” drawings and story, which he renamed “Kung Fu Panda Power.” He made these revisions as part of his scheme, so that his work would appear to be more similar to the DreamWorks pandas he had seen in the trailer. In February 2011, Gordon filed a copyright infringement suit against DreamWorks in U.S. District Court in Massachusetts, and later that year, he proposed that DreamWorks agree to settle the suit by paying him $12 million. DreamWorks rejected that proposal, and the litigation continued for another two years.
During the course of the litigation, it is alleged that Gordon intentionally deleted relevant evidence on his computer that he was required to produce in discovery and lied during his civil deposition. Furthermore, Gordon fabricated and backdated sketches that served as support for his suit. The full nature of Gordon’s scheme came to light when DreamWorks discovered that Gordon had traced some of his panda drawings from a Disney Lion King coloring book (shown below).
The indictment also alleges that Gordon’s other sketches, which were dated 1993 or 1994, were copied from this coloring book, which was not published until 1996, therefore demonstrating that Gordon drew these sketches after 1996 and backdated them. After DreamWorks discovered the tracing from the coloring book, Gordon agreed to dismiss his suit. By this point, however, DreamWorks had spent more than two years defending the fraudulent suit, at a cost of approximately $3 million.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of perjury provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and FBI SAC Shaw made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder and Amy Harman Burkart of Ortiz’s Cybercrime Unit. The U.S. Attorney’s Office and FBI would like to thank DreamWorks for its assistance during the investigation of this case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Attachments:
- Gordon's Characters
- Dreamworks Po and Master Shifu
- 1996 Disney Coloring Book
- Gordon's 2000 Registration
Randolph County Man Sentenced for Methamphetamine OffenseRead the Press Release
On December 17, 2015, Thomas H. Schaeffer, 43, of Sparta, was sentenced on a one-count indictment charging Conspiracy to Distribute Methamphetamine, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Schaeffer, who had previously pled guilty to the methamphetamine offense, was sentenced to 188 months’ incarceration, 4 years’ supervised release, and was fined $400.00. Evidence at the plea and sentencing hearings established that, between January 2014 and February 2015, Schaeffer and others were transporting multi-ounce amounts of ice/methamphetamine from Kansas City to southern Illinois. Schaeffer was supplying dealer amounts of the ice/methamphetamine to others in Randolph County. At sentencing, the district judge found that Schaeffer was responsible for the distribution of approximately 2.95 kilograms of ice/methamphetamine.
The investigation was conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office and Tilden Police Department. The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
RBS Supervisor Pleads Guilty to Conspiracy to Commit Multimillion Dollar Securities FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ADAM SIEGEL, 37, of Riverside, Connecticut, waived his right to indictment and pleaded guilty today in Hartford federal court to participating in a multimillion securities fraud scheme. SIEGEL also entered into an agreement to cooperate in the government’s ongoing investigation
According to court documents and statements made in court, between July 2008 and approximately 2014, SIEGEL was the Co-Head of U.S. Asset-Backed Securities, Mortgage-Backed Securities and Commercial Mortgage-Backed Securities Trading at RBS Securities Inc. RBS is a global securities firm with headquarters in Stamford, Connecticut. RBS also has a trading floor in Stamford where SIEGEL and some of the RBS employees that he supervised traded fixed income investment securities such as residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs). In pleading guilty, SIEGEL admitted that he and others conspired to increase RBS’s profits on CLO and RMBS bond trades at the expense of customers. As part of the scheme, SIEGEL and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and selling customers to accept deflated prices for bonds, all to benefit RBS.
The conspiracy was perpetrated in two ways. In certain transactions, SIEGEL and his co-conspirators misrepresented the seller’s asking price to the buyer (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS. In other transactions, SIEGEL and his co-conspirators misrepresented to the buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller, which allowed RBS to charge the buyer an extra, unearned commission.
The investigation revealed numerous fraudulent transactions by SIEGEL and other members of the conspiracy that cost at least 35 victim customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program, millions of dollars.
“Current regulations governing many fixed income products allow broker-dealers to operate in secrecy,” said U.S. Attorney Deirdre M. Daly. “But as the Court of Appeals for the Second Circuit recently reminded us in United States v. Litvak, under the securities laws, broker-dealers do not have a license to lie to their customers. Today’s plea is the most recent step in our continuing investigation into those who prey on fixed income investors. Others with relevant information should follow Mr. Siegel’s example and cooperate with us. We thank SIGTARP and the FBI for their hard work to date on this investigation. We are committed to our various investigations into the fixed income markets, and will continue to work with SIGTARP and the FBI, as well as our partners at the Department of Labor Office of the Inspector General, the Federal Housing Finance Administration Office of Inspector General, and the Fraud Section of the Department of Justice.”
“The opaque markets of residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLO), which played such a large role in the financial crisis, require honesty and integrity to protect all who trade,” said SIGTARP Inspector General Romero. “During the financial crisis, Adam Siegel exploited the lack of transparency in those markets by victimizing the firm’s customers, including TARP banks. His crime included defrauding buying customers about the price his firm paid so that he could charge more, defrauding selling customers about the price a buyer was willing to pay, and lying that a bond his firm already held in inventory was actually being sold by a seller at an artificially inflated price. U.S. Attorney Deirdre Daly has shown great leadership, and her office and the FBI have been united with SIGTARP against crime related to the bailout.”
“Financial investors should not have to fear being deceived by brokers in an already risk-filled industry,” said FBI Special Agent in Charge Ferrick. “The criminal actions of Mr. Siegel and others like him will continue to be investigated and brought to justice by the Financial Fraud Task Force.”
SIEGEL pleaded guilty to one count of conspiracy to commit securities fraud, which carries a maximum term of imprisonment of five years. He was released on a $250,000 bond and is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 11, 2016.
On March 11, 2015, Matthew Katke, a registered broker-dealer and managing director at RBS Securities Inc., pleaded guilty to the same charge and also is cooperating with the government.
This matter is being investigated by the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.
Today’s announcement is part of the ongoing efforts of the Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and the federal government’s subsequent bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and state Attorneys General offices around the country.
The RMBS Working Group is led by Acting Associate Attorney General Stuart Delery, and co-chaired by Assistant Attorney General for the Criminal Division Leslie R. Caldwell, Principal Deputy Assistant Attorney General for the Civil Division Benjamin Mizer, U.S. Securities and Exchange Commission Director of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric T. Schneiderman.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, visit: www.stopfraud.gov.
Previously Convicted St. Mary’s County Sex Offender Sentenced to 15 Years in Prison for Attempting to Induce a Minor to Have SexRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nicholas Edward Seskar, Sr., age 41, of Lusby, Maryland, today to 15 years in prison, followed by lifetime supervised release, for attempting to induce a minor to engage in sex. Judge Grimm also ordered that upon his release from prison, Seskar must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
In 2006, Seskar admitted to having sex with a 15 year old when he was 30 years old. He pleaded guilty in the Circuit Court for St. Mary’s County to one count of sex offense in the third degree and was sentenced to three years in prison, with all but 18 months suspended.
According to his plea agreement, from March 23 to April 2, 2015, Seskar communicated on Facebook with an individual named “Tiffany” who he believed was 15 years old. “Tiffany” was in fact an undercover law enforcement officer with the St. Mary’s County Sheriff’s Office. Over time, Seskar’s Facebook conversations became extremely graphic regarding the sexual acts he wanted to perform on “Tiffany.” Seskar told the undercover police officer that he wanted to meet to have sex, and that he had slept with a 15 year old when he was 30 years old.
On April 2, 2015, Seskar arrived at a pre-arranged meeting place and was arrested by officers with the St. Mary’s County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the St. Mary’s County Sheriff’s Office, HSI Baltimore and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley and Special Assistant U.S. Attorney Jennifer Wine of the U.S. Department of Justice, who prosecuted the case.
Owners of Lehigh Valley Companies and Their Engineer Charged in Green Energy Fraud SchemeRead the Press Release
PHILADELPHIA – David Dunham, 35, of Bethlehem, PA, and Ralph Tommaso, 46, of Warren, NJ, were charged by indictment, unsealed today, with engaging in a multi-million dollar conspiracy to defraud individuals and the United States in a green energy scam involving used cooking oil, announced United States Attorney Zane David Memeger. The defendants are charged with conspiracy, providing false statements to the government, wire fraud, tax fraud, and obstruction of an IRS audit and a U.S. Department of Agriculture examination.
From 2010 through 2012, in Wind Gap, Allentown, Bethlehem, and elsewhere, Dunham and Tommaso operated, respectively, the companies Smarter Fuel, Inc. (Smarter Fuel) and Environmental Energy Recycling Corporation, LLC (EERC), coordinating the activities of these companies, and then formally merging under the umbrella of Greenworks Holdings, LLC (Greenworks). According to the 101-count indictment, the defendants falsely claimed to have produced and sold renewable fuel for which they misappropriated approximately $50 million in payments, subsidies, and other benefits. Dunham and Tommaso allegedly defrauded government programs intended to encourage the production of renewable fuel as an alternative to traditional fossil fuel. By claiming credits for renewable fuel they never produced, and that otherwise did not qualify, Duhnam and Tommaso stole tens of millions of dollars from the United States government. It is further alleged that Dunham and Tommaso stole millions more by fraudulently claiming and generating tradable credits that they sold to unsuspecting purchasers who believed these credits satisfied their legal obligation to introduce a certain quantity of renewable fuel per year.
The defendants, through their companies, collected used cooking oil from restaurants and other food service locations, sometimes processing it to remove hard particles, water, and other waste. They then sold this cleaned cooking oil primarily to renewable fuel producers that used it as a “feedstock” ingredient in their production process.
Dunham and Tommaso did not sell their cleaned used cooking oil as a final fuel, but allegedly fraudulently claimed otherwise, applying for and receiving government subsidies for every gallon of cleaned used cooking oil that they produced, plus more. Their claims vastly exceeded their actual production. In 2010, Dunham and Tommaso allegedly claimed subsidies and other payments on more than 17.5 million gallons of product, when they produced less than six million gallons. In 2011, Dunham and Tommaso allegedly claimed subsidies and other payments of more than 18 million gallons, when they only produced about 7.5 million gallons. Of the cleaned used cooking oil they did produce, the vast majority did not qualify for credit or subsidy. The defendants’ allegedly fraudulent claims included more than one million gallons of the wastewater that was the byproduct of their processes to clean debris and pollutants from used cooking oil, the non-fuel sales of their product as a feedstock ingredient to be used by biofuel producers in buyers’ production of biofuel, and transactions that existed on paper only, where the defendants did not produce or even possess the product for which they generated subsidies.
The indictment alleges that Dunham and Tommaso provided false information and altered and forged documents and records to government and private auditors in an effort to conceal their fraud. They allegedly directed employees to alter the documentation of obviously unqualified sales and change them to show sales that qualified for subsidies and other payments.
Dunham is also charged with underreporting his taxable income for the tax years 2009 and 2010. In his filings for these years, Dunham allegedly altered the dates on sales invoices, and delayed generating invoices on other sales, in order to avoid paying taxes on these sales until a subsequent tax year. He also allegedly obstructed an IRS audit of Smarter Fuel.
“According to the indictment, these defendants exploited critical government programs that were designed to encourage the production and use of renewable fuels. Instead of producing the renewable fuel as represented, the defendants lied to the government and stole tens of millions of dollars,” said Memeger. “My office will continue to hold accountable those people who enrich themselves through government fraud and deny the taxpayers the full benefit of effective federal programs.”
“The illegal activity in this case has real consequences, including undermining a law that reduces our nation’s dependence on foreign oil and achieves important greenhouse gas reductions,” said Director Doug Parker, of EPA’s Criminal Investigation Division. “Companies and their managers should think very carefully before taking similar actions that could lead to prosecution.”
“Fulfilling individual tax obligations is a legal requirement and those who willfully evade that responsibility will be prosecuted," said Special Agent-in-Charge Akeia Conner, IRS Criminal Investigation.
In a related matter, William Barnes, a professional engineer, was charged by information, unsealed today, with two counts of conspiring to provide false statements to the U.S. Environmental Protection Agency (“EPA”). Barnes was allegedly hired to help the companies in Wind Gap and in Allentown register for the EPA’s program as renewable fuel producers and allegedly conspired with the company owners to provide false Engineering Reports to the EPA.
If convicted, Dunham and Tommaso each face a substantial prison term, supervised release, a possible fine, and potential criminal forfeiture of up to $50 million. Dunham faces a $8,700 special assessment; Tommaso faces a $8,400 special assessment. Barnes faces a statutory maximum possible sentence of ten years in prison, supervised release, a possible fine, and a $200 special assessment.
The case was investigated by the Environmental Protection Agency, IRS Criminal Investigations, Department of Agriculture–Office of Inspector General, U.S. Postal Inspector Service, and the Federal Bureau of Investigation Allentown Resident Agency. It is being prosecuted by Assistant United States Attorneys Nancy E. Potts and John Gallagher.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Orlando Man Pleads Guilty to Child Sex TraffickingRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Hermenegildo Campa (34, Orlando) today pleaded guilty to child sex trafficking. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, the victim in this case was a 15-year-old girl who was pregnant and homeless. She had run away from home and turned to prostitution as a means of surviving. Between October 2014 and February 2015, when the victim was in need of money, she would place ads on Backpage.com and engage in sex acts for money. Campa located the victim through Backpage.com and he met with her and paid her in exchange for sex.
Detectives with the Jacksonville Sheriff’s Office (JSO) Vice Unit ultimately located the victim during a routine vice operation. They immediately recognized that she was a juvenile and referred the investigation to a specialized human trafficking task force comprised of JSO investigators and the FBI. The victim informed the investigators that Campa was one of her regular customers and advised that his number was saved in her cellphone as “Chico.” The victim also provided details about Campa’s vehicle and where he lived. Investigators were able to identify Campa based on these descriptions.
On April 9, 2015, Campa was arrested at his home in Orlando. During an interview with law enforcement, he admitted to finding the victim on Backpage.com, contacting her, and paying to have sex with her.
This case was investigated by the Jacksonville Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney Mac D. Heavener, III.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Man Convicted of Diverting Medical Marijuana and Money LaunderingRead the Press Release
An Oregon man, convicted of Conspiracy to Distribute Marijuana and Money Laundering, was sentenced to federal prison on December 17, 2015, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Walter Wayne Moser, 51, of Eugene, Oregon, received a 1 year and 1 day sentence for offenses which occurred in the Southern District of Illinois. Moser had previously pled guilty to those offenses. Following release from imprisonment, Moser will serve a 3 year term of supervised release. Moser was also ordered to pay a $375 fine and a $200 special assessment.
The investigation in this case showed that Moser operated a medical marijuana dispensary that was legal under Oregon state law. In addition to dispensing medical marijuana to patients in Oregon, Moser diverted pounds of marijuana to a co-defendant, Jason Furlong, in West Frankfort, Illinois, where the marijuana was resold for recreational use. Furlong would sell the marijuana and send payment back to Moser by FedEx in packages addressed to Moser’s graphic design company, which Moser used as a front to conceal the nature of the drug proceeds.
"Even as States like Illinois and Oregon have enacted laws allowing for medical use of marijuana, the United States Department of Justice still maintains a strong federal interest in preventing the diversion of marijuana from states where it is legal under state law, in some form,
to other states, and in preventing the diversion of marijuana intended for medical use to recreational use," said Acting United States Attorney James L. Porter.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, and the Illinois State Police. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Omaha Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Robert M. Davis, age 63, of Omaha, Nebraska, was sentenced today to four years, ten months imprisonment by the Honorable Laurie Smith Camp, for bank robbery. On September 28, 2015, Davis pleaded guilty to robbing the American National Bank at 9009 Maple on October 17, 2014. He was also ordered to serve a three-year term of supervised release upon his release from prison and to pay $965.00 in restitution.
On October 17, 2014, the bank had been locking the front doors due to a number of bank robberies in Omaha. Davis was allowed in, approached the teller window, pulled a gun from his pocket, pointed it at the teller and demanded money. The clerk put $965.00 in the bag. He was connected to the robbery by surveillance video from the bank and from DNA that was on a hat he discarded when he left the area.
The case was investigated by the Omaha Police Department and Federal Bureau of Investigation.
Nevada Pain Management Doctor Sentenced for Unlawful Distribution of Controlled SubstancesRead the Press Release
LAS VEGAS, Nev. – Mahesh Kuthuru, M.D. was sentenced today by U.S. District Judge Jennifer A. Dorsey to two years and four months in prison, three years of supervised release, and 50 hours of community work service for unlawfully writing prescriptions for oxycodone and other highly addictive prescription painkillers to persons who did not have a medical need for them, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Kuthuru, 47, of Henderson, pleaded guilty in October to one count of distribution of a controlled substance. He is currently in federal custody serving a sentence for health care fraud and unlawful drug distribution imposed in the Northern District of New York.
“If you illegally and unlawfully use your medical license to divert pharmaceuticals you will be prosecuted, convicted, and sent to prison,” said U.S. Attorney Bogden. “We continue to make the investigation and prosecution of medical professionals who are involved in illegal drug dealing a top priority in our office.”
Kuthuru is a Nevada-licensed physician who operated Desert Pain Management in Las Vegas. From July 6 to Nov.15, 2012, Kuthuru wrote prescriptions for Oxycodone, Percocet, MS Contin, Roxicodone and Methadone to undercover officers who posed as patients, and who did not have a medical necessity for the drugs. During each visit, Dr. Kuthuru performed no or minimal physical exam, and failed to refer the patient to a specialist, physical therapist or other for further diagnosis.
The Centers for Disease Control and Prevention reports that since 1999, the amount of prescription painkillers prescribed and sold in the U.S. has nearly quadrupled, yet there has not been an overall change in the amount of pain that Americans report. Every day, 44 people in the U.S. die from overdose of prescription painkillers, and many more become addicted.
The case was investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations. The prosecution was handled by Assistant U.S. Attorney Crane M. Pomerantz.
Morris Resident to Serve Time in Federal Prison for Involvement in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on December 18, DUSTIN WHITTEN, 32, of Morris, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for his involvement in an insurance fraud scheme.
According to court documents and statements made in court, in May 2009, Ryan Geddes of Litchfield transferred to WHITTEN a residential property located in Old Forge, N.Y., while Geddes continued to use the property and pay the mortgage and maintenance expenses. At the time, Geddes was being sued by a creditor who was seeking to collect a debt and identify Geddes’ assets. In March 2011, WHITTEN and Geddes made arrangements for an insurance company to issue a policy on the New York property in WHITTEN’s name. On July 4, 2011, after a bankruptcy court meeting about compensating Geddes’ creditors, the New York property was destroyed in a fire. In September 2011, WHITTEN swore out an insurance claim on the property, representing himself as the owner and seeking compensation in the respective amounts of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire. The claim was eventually denied by the insurance company.
WHITTEN and Geddes have both admitted that the purpose of the scheme was to shield the insurance proceeds from Geddes’ creditors.
On April 17, 2015, WHITTEN pleaded guilty to one count of conspiracy to commit mail and wire fraud.
On April 28, 2015, Geddes pleaded guilty to charges related to this scheme and separate fraud schemes. He is scheduled to be sentenced in February 2016.
This matter has been investigated by the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Henry K. Kopel and Michael J. Gustafson.
Lockport Man Arrested, Charged with Ammunition ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Bob Odrzywolski, 72, of Lockport, NY, was arrested and charged by criminal complaint with being a felon in possession of ammunition. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that according to the complaint, the defendant, a convicted federal felon, obtained ammunition from a local retailer. Subsequently, a search warrant was executed at Odrzywolski’s Crosby Road residence. During the search, officers recovered 10 handguns and approximately 2000 rounds of ammunition.
The defendant was previously convicted and could not possess firearms.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer. He is being detained pending a detention hearing on December 23, 2015.
The complaint is the result of an investigation by the Niagara County Sheriff’s Department, under the direction of Sheriff James Votour and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.Las Vegas Investment Adviser Indicted in $30 Million Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Las Vegas investment adviser for allegedly accepting hundreds of thousands of dollars in cash kickbacks in return for his assistance in getting his clients to purchase microcap stocks that were the subject of a stock market manipulation scheme, U.S. Attorney Paul J. Fishman announced.
Donald S. Toomer, 44, of Henderson, Nevada, is charged by indictment with one count of conspiracy to commit securities fraud and investment adviser fraud, two counts of securities fraud, and two counts of investment adviser fraud.
According to the indictment:
Between 2008 and 2010, Toomer participated in an extensive “pump-and-dump” scheme in which he and others fraudulently inflated the prices of certain shares in order to sell them later at artificially inflated prices. The scheme involved four public companies: BioNeutral Group Inc. (BONU), NXT Nutritionals Holdings Inc. (NXTH), Mesa Energy Holdings Inc. (MSEH), and Clear-Lite Holdings Inc. (CLRH) (collectively, the “Target Companies”).
First, other conspirators obtained control over large blocks of the free trading shares of the Target Companies. Next, Toomer and others “pumped” the price of those shares by, among other things, engaging in manipulative trading of the stocks of the Target Companies and disseminating promotional materials encouraging others to purchase them. Finally, they “dumped” them by selling large volumes of the Target Companies’ stock to victim investors. The target companies’ stock price would then drop, resulting in losses to the victims.
As part of the scheme, Toomer caused his clients to purchase the stock of the Target Companies in order to create the false impression of market interest and demand in the stock of the Target Companies; build trading volume that would be attractive to potential investors who would later receive promotional materials about the stock; and generate income to fund the promotional campaigns that occurred in the later phases of the scheme.
Toomer made various material misrepresentations and omissions to his clients to obtain their authorization to buy the Target Companies’ stock in their brokerage accounts, including falsely representing that he had done independent research regarding the Target Companies. He also failed to disclose the cash payments or other compensation that he received in exchange for convincing his clients that the Target Companies were promising investments.
Over the course of the conspiracy, Toomer received hundreds of thousands of dollars in cash kickbacks from his conspirators’ illicit trading profits, none of which were disclosed to his investment advisory clients. Rather than providing investment recommendations and advice based upon the best interests of his clients, as he was legally required to do, Toomer allegedly made investment recommendations based on his own personal interests and those of his conspirators.
The scheme collectively generated over $30 million in illicit trading proceeds.
The conspiracy count with which Toomer is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities and investment adviser fraud counts each carry a maximum potential penalty of five years in prison and a $5 million fine.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The U.S. Securities and Exchange Commission (SEC) filed a civil complaint against Toomer today.
On Dec. 15, 2015, Samuel DelPresto, 48, a stock promoter from Holmdel, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares to a one-count information charging him with conspiracy to commit securities fraud for his involvement in the scheme.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s indictment. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Michael Critchley Esq., Roseland, New Jersey
Kalamazoo Man, Edward Oneal Bowen, Pleads Guilty to String of Armed RobberiesRead the Press Release
Edward Oneal Bowen Committed 3 Kalamazoo Area Credit Union Robberies in 2014
GRAND RAPIDS, MICHIGAN — Edward Oneal Bowen, 48, of Kalamazoo, pled guilty in federal court on December 18 to three counts of armed credit union robbery and one count of brandishing a firearm during a crime of violence, U.S. Attorney Patrick Miles announced today. He faces up to 25 years in federal prison for each count of armed robbery, and a mandatory consecutive sentence of at least seven years up to life in prison for the firearms charge. He will be sentenced in April 2016 by Chief U.S. District Judge Robert J. Jonker.
On May 5, 2014, Bowen robbed the Preferred Credit Union in Kalamazoo of approximately $6,200. On June 18, 2014, he robbed the Preferred Credit Union again, making off with approximately $6,400, but leaving behind an orange juice cup and straw smelling of alcohol. On July 8, 2014, he robbed the Kellogg Community Federal Credit Union in Kalamazoo, forcing the employees to access the vault, stealing approximately $41,000, and locking the employees in a utility closet. During each robbery, Bowen wore a wig and brandished a handgun. He was able to escape after each robbery.
Kalamazoo Department of Public Safety officers solved the robberies by obtaining a DNA sample from the straw left behind at the scene of the second Preferred Credit Union robbery. Surveillance photos from that robbery showed the suspect holding the cup in his left hand while pointing a gun at employees with his right hand. Witnesses said the suspect had the straw from the cup in his mouth at the start of the robbery. The DNA profile from the straw matched a DNA profile of Bowen contained in the Combined DNA Index System ("CODIS"). Bowen’s DNA profile was in CODIS because a sample was taken from him after a 1996 conviction for assault with intent to commit murder. Officers also obtained a fingerprint match from the cup Bowen left behind.
The case was investigated by the Kalamazoo Department of Public Safety, the Kalamazoo County Sheriff’s Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Clay Stiffler and former Assistant U.S. Attorney Russ Kavalhuna.
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Jury Convicts Schenectady Man of Heroin ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury on Friday convicted Raymond P. Baker, age 36, of Schenectady, New York, of conspiring to distribute and possess with intent to distribute heroin, announced United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
Baker faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 8 years and up to life, when he is sentenced on May 9, 2016 by Senior United States District Judge Thomas J. McAvoy.
The jury convicted Baker following a four-day trial. The evidence at trial demonstrated that Baker worked with another person to sell heroin in Latham and Albany, and that the amount of heroin involved in the conspiracy was 100 grams or more.
This case was investigated by the Drug Enforcement Administration. It was prosecuted at trial by Assistant U.S. Attorney Michael Barnett, and was prosecuted to indictment by Assistant U.S. Attorneys Wayne A. Myers and Elizabeth R. Rabe.
John P. Fishwick Jr. Sworn in as United States Attorney for the Western District of VirginiaRead the Press Release
ROANOKE, VIRGINIA – In a short ceremony Monday morning, John P. Fishwick Jr. was sworn in as United States Attorney for the Western District of Virginia.
United States District Court Chief Judge E. Glen Conrad administered the oath of office this morning at the federal courthouse in Roanoke, Virginia. A public investiture commemorating the appointment will be held in January 2016.
U.S. Attorney Fishwick, 58, of Roanoke, Va., earned an undergraduate degree from Harvard University and his J.D. from Washington and Lee University. Upon graduation from law school Mr. Fishwick clerked for then U.S. District Court Judge James Turk. Mr. Fishwick has over 30 years of trial experience in state and federal court.
Mr. Fishwick’s nomination for the U.S. Attorney’s post was recommended by Senators Warner and Kaine. He was appointed and commissioned by President Barack Obama following a unanimous confirmation vote by the United States Senate.
“I look forward to working with the great lawyers and staff of the United States Attorney’s Office, our law enforcement partners, community leaders, and others, on protecting the citizens of the Western District of Virginia. We will work hard to seek justice every day,” United States Attorney Fishwick said today. “I also want to thank Tony Giorno for his excellent leadership of the office over the past year.”
The United States Attorney’s Office for the Western District of Virginia has staffed offices in Roanoke, Abingdon, Charlottesville and Harrisonburg, with approximately 56 full-time employees, including 28 Assistant United States Attorneys. Additionally, the district has offices in Lynchburg, Danville and Big Stone Gap.
Indianapolis man sentenced to prison for Social Security and passport fraudRead the Press Release
INDIANAPOLIS - United States Attorney, Josh J. Minkler, announced today that Adam Wilson, 37, Indianapolis, was sentenced to eight months in prison by U.S. District Judge Tanya W. Pratt following his guilty plea to intentionally furnishing false information to social security administration and false statement in application for a passport. Wilson also must pay a fine of $2,000. This case was the result of a joint investigation by the Social Security Administration’s Office of the Inspector General, the U.S. Department of State’s Diplomatic Security Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Wilson pled guilty to the felony offenses in U.S. District Court. In 2007, Wilson entered the United States as a Cuban refugee. In July 2012, Wilson became a naturalized citizen of the United States.
After arriving in the United States in 2007, Wilson applied for and obtained a social security number. In August 2012, Wilson went into the Social Security Administration (“SSA”) in Anderson, Indiana, and applied for a new social security number, stating that he had never had a prior social security number while listing a fictitious name as his father’s name. As a result, the Social Security Administration issued Wilson a new social security number. Federal agents later interviewed Wilson and seized the fraudulent second social security card. Despite relinquishing the card, Wilson visited the SSA seven more times in attempt to obtain a new card with the fraudulent social security number.
In July 2012, Wilson applied for a United States passport using an address where he did not live and listing his father’s name as an individual who was not his father. In October 2012, Wilson applied for a replacement passport and again listed another individual’s name as his father.
While waiting for the disposition of this case, Wilson violated his pretrial release conditions. Specifically, Wilson requested and obtained permission from the Probation Office to travel to Florida to visit his relatives for Thanksgiving. Instead of abiding by these preapproved plans, Wilson left the country and was located by immigration officials in Houston, Texas. There, Wilson presented to them a Cuban passport after having arrived on a flight from Cancun, Mexico. The Probation Office neither approved Wilson’s international travel nor had knowledge of Wilson’s Cuban passport.
According to Assistant U.S. Attorney Kyle M. Sawa, who prosecuted the case for the government, Judge Pratt also imposed two years of supervised release after Wilson’s prison sentence is completed.
Honolulu Man Convicted of Drug and Firearm ChargesRead the Press Release
HONOLULU – After an eight-day trial in the United States District Court in Honolulu, a federal jury found Gilbert Lee Medina, 52, of Honolulu, guilty on Friday, December 18, of conspiring to distribute and possess with intent to distribute methamphetamine, as well as unlawfully possessing a firearm. The jury also found him guilty of attempting to enter a secure area of the Honolulu International Airport on May 29, 2013, by fraud or false pretenses.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the evidence presented at trial, Medina was at the center of a large scale methamphetamine trafficking conspiracy that spanned at least 12 months from April 2012 to April 2013, and was responsible for well over 20 pounds of methamphetamine being brought from California to Hawaii. Medina received the large quantity of methamphetamine from several different sources and was responsible for distributing the methamphetamine to other members of the conspiracy in Hawaii.
The evidence presented at trial also established that Medina unlawfully possessed a firearm on his boat docked at the Ala Wai harbor. Medina had prior felony convictions and is prohibited from possessing firearms. Additionally, the evidence established that Medina attempted to use a false identification at the Honolulu International Airport in an effort to flee from Hawaii in May 2013. TSA officials did not permit Medina to get past the security, and Medina was ultimately arrested and charged with an additional criminal offense for attempting to enter the secured area of the airport by presenting the false identification.
Because of his prior criminal record, Medina faces a possible sentence of life in prison on the methamphetamine trafficking charge when he is sentenced by Senior District Judge Helen Gillmor on March 31, 2015. The maximum penalty for the firearm offense is up to ten years in prison, while the unlawful entry offense is a misdemeanor.
The investigation which resulted in the charges in the case was conducted by Homeland Security Investigations, with assistance from the United States Postal Inspection Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Transportation Security Administration at Honolulu International Airport also contributed significantly to the investigation. Assistant U.S. Attorney Tony R. Roberts handled the prosecution.
Grand Rapids Man, Senecca Keily Freeman, Sentenced to Twenty-Two Years in Federal Prison for Possessing Firearm to Protect Lethal Drug TradeRead the Press Release
GRAND RAPIDS, MICHIGAN – Senecca Keily Freeman, 35, of Grand Rapids was sentenced today to more than twenty-two years in federal prison for possessing a firearm to protect a lethal drug trafficking operation, U.S. Attorney Patrick Miles announced. In addition to the 270-month prison term, Chief U.S. District Judge Robert Jonker imposed a five-year term of supervised release that will commence once Freeman is released from imprisonment and ordered him to pay a $2,500 fine.
Freeman pleaded guilty on August 7, 2015, to illegally possessing a firearm as a convicted felon. The relevant conduct surrounding Freeman’s conviction was outlined in the government’s sentencing memorandum and motion for upward departure and variance. On November 18 and 19, 2014, Freeman distributed controlled substances to two of his drug customers. The customers believed they were buying heroin, but the substance was in fact fentanyl, a potent synthetic opiate. The customers used the drug, and one of them overdosed and died of "acute fentanyl toxicity" as a result. The Grand Rapids Police responded to a call for a drug overdose and found the customers outside Freeman’s home. Police learned that Freeman, a convicted felon, had been distributing drugs from his home and that he had a firearm. Police obtained a search warrant and found more than 60 bags of fentanyl and a stolen firearm. Investigation revealed that Freeman used the stolen firearm to protect and further his drug operation.
Freeman received a lengthy sentence both because of the loss of life and because he was eligible for increased penalties under the Armed Career Criminal Act ("ACCA"). Under federal law, a person who possesses a firearm after sustaining at least three previous felony convictions of a certain type and severity must be sentenced to at least fifteen years in prison. Freeman’s prior convictions included incidents involving robbery, drug dealing, and assault and battery.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Grand Rapids Police Department (GRPD) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Former Logos Preparatory Academy Teacher Sentenced on Child Pornography ChargesRead the Press Release
HOUSTON – A 42-year-old Sugar Land man has been ordered to federal prison following his conviction for possessing and distributing child pornography, announced U.S. Attorney Kenneth Magidson. Chad Michael Cole pleaded guilty Sept. 3, 2015.
Today, U.S. District Judge Sim Lake ordered Cole to serve a mandatory minimum sentence of 60 months in federal prison. He will also be required to serve eight years of supervised release and must also register as a sex offender.
The charges arose following a June 2014 undercover operation during which an online user shared 27 videos depicting child pornography with an FBI agent. An investigation into the IP address associated with the videos led law enforcement officials to an address in Sugar Land. Authorities executed a search warrant at that location which was determined to be Cole’s residence, at which time they seized a custom desktop computer. Forensic analysis led to the discovery of approximately 269 videos and 205 images of child pornography.
At the time of the search, Cole had been employed by Logos Preparatory Academy in Sugar Land where he taught junior level physics and an occasional third grade computer class.
Cole has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of a collaborative investigation conducted by FBI, Fort Bend District Attorney's Office and Fort Bend County Sheriff's Office.
This case, prosecuted by Assistant U.S. Attorney Carrie Wirsing, 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."
Former Lansing Resident, Qasim I. Verser, Pleads Guilty to Federal Tax ChargeRead the Press Release
Defendant Illegally received over $190,000 in tax refunds.
GRAND RAPIDS, MICHIGAN — On December 21, 2015, Qasim I. Verser, 25, a former resident of Lansing Michigan, pled guilty in federal court to having obtained more than $190,000 from the United States Treasury in 2012 and 2013 by causing false federal tax returns to be filed with the Internal Revenue Service, U.S. Attorney Patrick Miles announced today. His scheme involved deceiving citizens into providing their personal identification information by promising them "free stimulus money." The tax returns typically contained false reporting of undocumented income and abusive use of the Earned Income credit.
U.S. Attorney Miles affirmed his commitment to pursing "stolen identity fraud cases" as a high priority for his office. "When someone cheats on a federal tax return, they are hurting all honest taxpayers in the Western District of Michigan and beyond."
Complaints by local citizens prompted the Federal Bureau of Investigation to open a criminal investigation which included obtaining multiple search warrants to seize evidence of a tax fraud scheme. During the multi-year investigation, more than 50 subpoenas were issued to track down the tax refunds which had been paid into numerous bank accounts. In some instances, the personal identification information was used to file a tax return in a successive year. In an earlier prosecution, defendant Verser’s aunt, Taka Chiwocha-Crowell, pled guilty to filing false tax returns and was sentenced to 42 months’ incarceration. Verser’s sentencing has been scheduled for May 2, 2016 before Chief U.S. District Judge Robert J. Jonker.
The investigation was conducted by Special Agent Rod Charles, Lansing FBI, and Special Agent Paula Wood, Lansing IRS Criminal Investigations, and the case is being prosecuted by Assistant U.S. Attorney Michael A. MacDonald.
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Former Executive Director of Newark Watershed Conservation and Development Corporation Admits Role in Nearly $1 Million Kickback and Fraud SchemeRead the Press Release
NEWARK, N.J. – The former executive director of the Newark Watershed Conservation and Development Corp. (NWCDC) today admitted accepting approximately $999,000 in kickback payments in exchange for her assistance in awarding work to various vendors and contractors of the agency, U.S. Attorney Paul J. Fishman announced.
Linda Watkins Brashear, 56, of West Orange, New Jersey, pleaded guilty before U.S. District Judge José Linares in Newark federal court to Counts 1 and 5 of a five-count information charging her with a wire fraud scheme to defraud the NWCDC by accepting bribes and kickback payments from contractors and an employee of the corporation, which were funded by payments from the NWCDC based on fraudulently inflated invoices or issued for work that was not performed by the contractors (Count 1), and subscribing a false tax return for the year 2012 (Count 5).
According to documents filed in this case and statements made in court:
Brashear served as the executive director for the NWCDC from 2007 to March 2013. During this time, she and others devised a scheme to defraud the NWCDC of her honest services in the affairs of the NWCDC and of the NWCDC’s money and property. The object of the scheme was for Brashear and others to accept a substantial stream of concealed and undisclosed kickbacks from NWCDC contractors and an employee of the NWCDC for her direct and indirect benefit in exchange for action and assistance in the affairs of the NWCDC, and for her violating her official duties and responsibilities.
Between 2008 and March 2013, Brashear accepted approximately $999,000, in kickbacks financed through the receipt of payments by contractors and an employee of the NWCDC that were fraudulently obtained from the NWCDC with Brashear’s assistance, through materially false pretenses, representations and promises. In particular, Brashear accepted kickbacks as summarized below:
Time Period
Approximate Amount of Kickbacks
Paid By
September 2012 - March 2013
$39,000
NWCDC “Employee 1”
January 2009 – December 2012
$260,000
James Porter (identified in Count 1 as “partner of the special projects manager”)
January 2008 – June 2012
$70,000
Printing contractor
January 2011 – January 2013
$33,000
Marketing contractor
September 2012 – April 2013
$90,000
Cleaning contractor
April 2009 – February 2013
$118,000
Homeland Security contractor
January 2009 – May 2012
$40,000
Interior designer
January 2008 – March 2013
$177,000
Internet research consultant
October 2011 – March 2013
$29,000
Political consultant
April 2011 – September 2012
$32,000
Media consultant
January 2008 – March 2013
$27,000
Giacomo “Jack” DeRosa
May 2011 – March 2013
$84,000
Security consultant
Brashear routinely accepted payments from some of these contractors through Donald Bernard Sr. Brashear and Bernard also used their email accounts to facilitate this kickback and fraud scheme. Bernard was previously charged in December 2014 in a 20-count indictment with various federal offenses involving a scheme to defraud the NWCDC of his honest services and the NWCDC’s money and property by accepting and agreeing to accept bribes and kickbacks from certain NWCDC contractors, which were financed at least in part through the contractors’ fraudulent padding of invoices to the NWCDC.
Brashear admitted taking payments from James Porter, a contractor who pleaded guilty in January 2015 to conspiracy to defraud the NWCDC of honest services, money and property through the use of interstate wire transmissions, as well as tax evasion for his role in the kickback scheme. The roofing contractor referred to in Count 1 of the information, Giacomo “Jack” DeRosa, was charged in a six-count fraud and money laundering indictment in December 2014 for his role in passing kickbacks to Bernard, which were shared, in part, with Brashear.
Brashear also admitted making and subscribing a U.S. Individual Income Tax Return, Form 1040, for tax year 2012, signed and filed with the IRS under penalty of perjury, which she did not believe to be true and correct, including approximately $316,000 in unreported income that she received through the kickback payments.
The wire fraud charge to which Brashear pleaded guilty carries a maximum potential penalty of 20 years in prison. The charge of filing a false tax return carries a maximum potential penalty of three years in prison. Both charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain or loss from the offense. Sentencing is scheduled for April 5, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Richard M. Frankel; IRS – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty plea. U.S. Attorney Fishman also thanked the N.J. Office of the State Comptroller, under the direction of Acting State Comptroller Philip James Degnan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques Pierre, Mala Ahuja Harker and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Michael Baldassare Esq., Newark
Former Department of Defense Contractor Pleads Guilty to Making False Statement and Damaging Army ComputersRead the Press Release
BOSTON – A Westfield resident who previously served in the Chinese People’s Liberation Army pleaded guilty in U.S. District Court in Springfield on Friday, Dec. 18, 2015, to lying on his security clearance form and damaging U.S. Army computers.
Wei Chen, 62, pleaded guilty to making a false statement and damaging a U.S. Army computer. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 29, 2016.
Prior to immigrating to the United States and becoming a citizen in 2006, Chen served in the People’s Liberation Army. In 2010, Chen applied for a job as a computer system administrator for a Department of Defense (DOD) contractor, which required him to have a Secret-level security clearance. To obtain that clearance, Chen completed a questionnaire on which he certified that he understood that a false statement could be punished by imprisonment. Nonetheless, in response to the form’s question about whether he had ever served in a foreign country’s military, Chen falsely answered, “no.” Chen lied on this form because he believed that a truthful answer would reduce his chances of receiving the security clearance he needed to work as a DOD contractor. After submitting the form with false information, Chen received a secret level security clearance and was assigned to work for the U.S. Army as a system administrator at Camp Buehring in Kuwait.
On June 15 and 16, 2013, Chen connected one or more of his own thumb drives to computers at Camp Buehring that were connected to the Army’s unclassified network and the classified Secret-level network. Chen then made an effort to cover his tracks and hide his security violation. Specifically, he cleared network logs on the server that would have documented the connection of the thumb drive to the network server. Chen also copied a computer file, containing saved e-mail and documents, from his Secret-level workstation onto his thumb drive.
The charging statutes provides a sentence of no greater than five years in prison on the false statement charge and 10 years in prison on the charge of damaging a computer, three years of supervised release, a fine of $250,000 for each charge, and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Daniel Andrews, Director of the Computer Crime Investigative Unit of the U.S. Army Criminal Investigation Command, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder and B. Stephanie Siegmann of Ortiz’s Criminal Division.
Former Bookkeeper Sentenced to a Year in Prison for Embezzlement and Signing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – BONNIE CHARLENE DORAN, of Newalla, Oklahoma, was sentenced today to a year and a day in prison for embezzlement and signing a false federal income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
From April 2012 until January 2015, Doran was employed as the bookkeeper for Cox Systems Technology, located in Oklahoma City. On August 26, 2015, she pled guilty to using interstate wire communications to defraud Cox Systems Technology. In particular, she directed BancFirst to wire extra payroll transfers to her personal account at Arvest Bank. She also made adjusting entries in company records to hide the extra payments. In a plea agreement, she agreed to pay restitution to the company in the amount of $120,197.04. At the August 2015 plea hearing, Doran also pled guilty to signing a false tax return. She admitted that in April 2014, she signed a personal federal tax return for the 2013 calendar year that she knew was false because it reported only $34,294 in total income, substantially less than the income she actually received.
At today’s sentencing, U.S. District Judge David L. Russell ordered that Doran be incarcerated for a year and a day. In addition to agreed restitution of $120,197.04 to Cox Systems Technology, the court ordered her to pay $26,115 in restitution to the IRS for the years 2012 through 2014. After completing her prison sentence, Doran will serve three years of supervised release.
This case was the result of an investigation by the Internal Revenue Service—Criminal Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Scott E. Williams.
Former Alvin Art Teacher Sentenced on Child Pornography ChargeRead the Press Release
HOUSTON – A former teacher who was employed with the Alvin School District has been ordered to federal prison following his conviction of receipt of child pornography, announced U.S. Attorney Kenneth Magidson. Scott Burns, of Alvin, 46, pleaded guilty May 18, 2015.
Today, U.S. District Judge Lynn N. Hughes sentenced Burns to 97 months incarceration followed by 12 years of supervised release. Burns will also be required to register as a sex offender.
The investigation arose after an abandoned briefcase was turned over to the Brazoria County Sheriff’s Office that was found to contain child pornography. Authorities believed it was part of an active investigation involving Burns and forwarded it to Homeland Security Investigations. Compact discs recovered from the abandoned briefcase contained 598 images and two videos of child pornography, along with personal and family photos.
Burns had previously been identified as a person of interest during an online undercover investigation in which he solicited nude and hardcore images of minors aged 12-17 via imgsrc.ru, a photo-sharing website.
A search warrant executed on his home in March 2014 led to the discovery of various electronic media which were found to contain 418 images and 15 videos of child pornography, including pictures of prepubescent minors, acts of sadism, masochism, bestiality and/or bondage. During an interview of Burns the following day, he claimed that used the Internet to locate child pornography, but that he did so in order to report it to website administrators.
Burns also possessed pictures of former students, which he had posted onto his Flickr account. Burns admitted that he kept in touch with former students for artistic purposes.
Burns will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Burns are the result of the investigative efforts of Homeland Security Investigations, Alvin Police Department and the Alvin Independent School District Police Department.
This case, prosecuted by Assistant U.S. Attorney Carrie Wirsing, 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."
Former Allentown Finance Director Charged with Rigging City Contract AwardRead the Press Release
PHILADELPHIA – Garret Strathearn, 68, of Sea Girt, NJ, was charged today by information with conspiracy to commit mail and wire fraud, announced United States Attorney Zane David Memeger. Until earlier this year, Strathearn was the Finance Director for the City of Allentown, PA.
The information alleges the following:
Public Official #3 was a public official who represented the City of Allentown through an elective office which vested him with authority and influence over the awarding of certain municipal contracts. Aspiring to win election to a statewide elective office, Public Official #3 sought to raise campaign contributions from parties who had profited from their dealings with the City of Allentown and who sought favorable treatment from the City of Allentown. Public Official #3 also directed certain municipal officials to give preferential treatment to certain of his past and potential political donors. Strathearn and Assistant City Solicitor Dale Wiles were among the municipal officials over whom Public Official #3 had authority.
The City of Allentown outsourced its collection of delinquent real estate taxes and municipal claims (“the revenue collection”) to a law firm with experience in collecting taxes. For several years, the contract for the City’s revenue collection contract had been serviced by Law Firm #1, whose contract had been renewed annually without Law Firm #1 being required to compete with other firms in order to keep the contract. On or about November 11, 2013, the City published a request for proposals (RFP) inviting potential contractors to bid on servicing Allentown’s revenue collection contract for 2014. According to the RFP, the City would evaluate competing proposals based on their merits and select a winner based on which one would “be most advantageous to the City.” Relying on the representations in the RFP, several competitors submitted proposals for the revenue collection contract, including Law Firm #1, Law Firm #2, and a partnership between Law Firm #3 and a revenue collection company (“the Partnership”). The “revenue committee,” which was responsible for evaluating the proposals and submitting a recommendation to the City’s Purchasing Agent, consisted of Wiles and two municipal officials who reported to Strathearn.
Consistent with the representations in the RFP, the members of the revenue committee graded each of the proposals received using pre-established criteria and memorialized these scores on preprinted government forms (“the score sheets”). The original score sheets reflected that the committee members had given the highest aggregate scores to Law Firm #2 and Law Firm #1, and that none of the committee members had concluded that the Partnership’s proposal would be the most advantageous to the City. The committee members discussed the proposal and agreed that Law Firm #2’s proposal would be the most advantageous to the City.
Dissatisfied with the amount of campaign contributions that he had received from Law Firm #1 and its affiliates, Public Official #3 believed that certain principals and affiliates of the Partnership were more promising sources of campaign contributions. Public Official #3 instructed certain subordinates, known to the United States Attorney, that he wanted the Partnership to be awarded the 2014 revenue collection contract, that he did not want to be perceived as having influenced the contracting process, and that he would consider future renewals of the Partnership’s contract based on whether the Partnership and its affiliates had given sufficient campaign contributions for the benefit of Public Official #3. Specifically, on or about January 8, 2014, Public Official #3 explained to Strathearn that awarding the 2014 revenue collection contract to the Partnership was important to Public Official #3 and his political ambitions. Strathearn agreed that he would help Public Official #3 by giving preference to the Partnership in the contracting process.
To prevent the committee from recommending Law Firm #2’s proposal to the Purchasing Agent, Strathearn intervened in order to steer the contract to the Partnership so that the Partnership and its affiliates would then provide money, including campaign contributions, to Public Official #3 and his campaign operatives. Strathearn communicated to Wiles that the contracting process was being corruptly manipulated in order to steer the 2014 revenue collection contract to the Partnership, all with the approval of, and for the benefit of, Public Official #3. Strathearn also made clear that Wiles was expected to help create the false impression that the Partnership had won the contract on the merits. Public Official #3 had authority over both Strathearn and Wiles.
Streathearn, Wiles, and Public Official #3 each took steps to advance the conspiracy and ensure that the Partnership was awarded the contract, despite the substantive findings of the revenue committee. For example, Strathearn removed from the committee the municipal official whose score for the Partnership was the lowest of the committee members and replaced her by joining the committee. Strathearn and Wiles both falsified certain paperwork in order to create public records which gave the false impression that the Partnership had earned the revenue collection contract on the merits. After the City awarded the revenue collection contract to the Partnership, Strathearn, Wiles, and Public Official #3 each obstructed justice in order to help conceal the conspiracy. For example, in 2015, all three made statements to FBI agents which were materially false with respect to the revenue collection contract award process for 2014.
For his role in the conspiracy with Strathearn (who was then identified as “Public Official #4”), Wiles previously pleaded guilty before United States District Judge Juan R. Sanchez and is scheduled for a sentencing hearing on March 2, 2016.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Administrator at Los Angeles Law Firm Sentenced to 5 Years in Federal Prison for Embezzling from Her EmployerRead the Press Release
LOS ANGELES – A former administrator of a Los Angeles law firm was sentenced today to 60 months in federal prison for embezzling more than $3.3 million from her employer.
Esterlina Santos, 53, who resides in the Ladera Heights district of Los Angeles, was also ordered by United States District Judge Beverly Reid O’Connell to pay $3,322,161 in restitution to her former employer and $781,109 to the Internal Revenue Service.
Santos pleaded guilty in June to one count of mail fraud and one count of subscribing to a false tax return.
According to court documents, from 2004 to August 2010, Santos fraudulently obtained approximately $3,322,161 from the Law Offices of Robert Smylie and Associates (RSA). While serving as the firm administrator for RSA, Santos used QuickBooks software to generate checks from RSA’s operating account to pay for expenses for her personal credit accounts, including those associated with American Express, Bank of America and Capital One.
After Santos generated checks from RSA’s operating account and mailed them to pay her personal credit accounts, she used QuickBooks to alter the checks to falsely reflect that they were paid to RSA’s vendors for services purportedly provided.
When she pleaded guilty, Santos admitted that she received $2,448,794 of income she failed to report to the IRS during the 2007 through 2010 tax years.
Santos was ordered to begin serving her sentence on January 4.
The investigation into Santos was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation.
Florida Man Indicted in Cocaine ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite, announced that ALEXANDER CASTRO, age 41, of Cape Coral, Florida, was indicted on Friday, December 18, 2015 by a federal grand jury for charges of conspiracy to distribute cocaine and other drug offenses.
According to the Indictment, in December 2015, CASTRO conspired to distribute and possess with intent to distribute five kilograms or more of cocaine. CASTRO is also charged with possession with intent to distribute five kilograms or more of cocaine. If convicted of the conspiracy charge, CASTRO will face a sentence of ten years to life imprisonment.
U.S. Attorney Polite reiterated that the indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Homeland Security Investigations and the Louisiana State Police. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Final Defendant in Bank Fraud Conspiracy Pleads GuiltyRead the Press Release
Baltimore, Maryland – Ronnie Mejia, age 26, of Bronx, New York, pleaded guilty today to a bank fraud conspiracy and to aggravated identity theft in connection to a credit card fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea, from February 2014, through October 2014, Mejia conspired with his co-defendants, Steven Harris, Marquis Johnson, Zachary O’Brien, Steven Tejeda and Jerry Anderson, as well as others, to use stolen credit card and other personal information of customers of victim financial institutions to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere.
For example, on April 10, 2014, the Baltimore County Police Department (BCPD) responded to a fraud in progress at an Apple Store in Towson, Maryland, where Johnson and Harris purchased iPhones with Visa Vanilla gift cards. Johnson and Harris were arrested and the Visa Vanilla gift cards they used to purchase the phones were recovered and determined to be re-encoded with stolen credit information.
On April 17, 2014, a search warrant was executed at Anderson’s home in Towson. Several items were recovered including: five Blackberry cell phones; two Apple iPhones; two apple iPads; an Apple computer; a shipping box and packaging for a credit card embossing machine; and miscellaneous gift cards. Anderson was at the residence at the time the search warrant was executed and a room keycard for a nearby hotel was recovered from his wallet. Later that day, a search warrant was executed at the hotel room. Tejeda and O’Brien were in the room when the search warrant was executed. The items recovered from the hotel room included: 30 counterfeit credit cards (re-encoded with stolen credit information); three Apple iPhone 5s; 43 blank counterfeit credit cards; eight pre-paid gift cards (unopened/in packaging); a credit card embossing machine; an Acer laptop computer; a credit card encoder; and over 50 credit cards embossed with the names of either Anderson, Tejeda or O’Brien.
Forensic examinations of the computers and other digital media seized during the searches recovered emails containing personal identifying information (PII) of victims, including name, date of birth, and social security number; compromised bank credit card numbers and corresponding customers’ names; and a document containing over 25 credit card numbers and other PII. Further examination of records recovered during forensic examinations revealed that at least two of the credit card numbers were purchased from a known “carding site” where perpetrators of identity theft and related crimes can purchase stolen credit card numbers and other PII. A forensic examination of Tejeda’s phone recovered during the search of the hotel room, revealed texts between Mejia and Tejeda that contained exchanges of stolen personal information of victims and instructions for fraudulent transactions and purchases.
On April 10, 2015, at the direction of the United States Secret Service (Secret Service), a cooperating witness made three consensually monitored phone calls to Mejia. Mejia wanted the cooperating witness to use stolen PII to fraudulently purchase Apple iPhones and asked for an email account so Mejia could send the cooperating witness the stolen PII. The cooperating witness provided Mejia with an email address and password, which had been set up by Secret Service. On April 13, 2015, a Secret Service agent observed that PII, including PII belonging to 16 known victims, had been put in the “drafts” folder of the provided email account. On May 19, 2015, during recorded calls between Mejia and the cooperating witness, Mejia agreed to buy the fraudulently purchased iPhones from the cooperating witness, and asked the cooperating witness to provide him with a credit card in order to pay the first phone bills from the phones. Historical cell site records show that Mejia was in New York during these phone calls.
The total actual loss caused by the conspiracy to the more than 2450 victims was $419,807.14 and the potential loss caused by the conspiracy to the victims was $1,830,030.
Mejia faces a maximum sentence of 30 years in prison for bank fraud and a mandatory two years in prison, consecutive to any other sentence, for aggravated identity theft. Steven Harris, age 23, of Bronx, New York; Marquis Johnson, age 21, of Severna Park, Maryland; Zachary O’Brien, age 31, of Bronx, New York; and Jerry Anderson, age 29, of Towson, have also pleaded guilty to their roles in the scheme. All are awaiting sentencing.
Steven Tejeda, age 23, of Richmond, Virginia, pleaded guilty and was sentenced to four years in prison.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Federal Indictment Charges Eight with Participating in Taos County Heroin Trafficking and Money Laundering RingRead the Press Release
ALBUQUERQUE – Last week, a federal grand jury indicted eight individuals on heroin trafficking and money laundering charges based on a DEA-led investigation into an organization that allegedly distributed heroin in Taos County, N.M., announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
Five of the eight defendants were arrested on Dec. 18, 2015, and made their initial appearances in federal court in Albuquerque, N.M., this morning. Four remain in custody pending arraignment and detention hearings scheduled for tomorrow. The fifth was released on conditions of release and under pretrial supervision pending trial. Of the three remaining defendants, one is in state custody on unrelated charges, another has been summoned to appear in federal court on Dec. 23, 2015, and the last has yet to be arrested and is considered a fugitive.
The eight-count indictment is the result of a 15-month investigation targeting a drug trafficking organization allegedly led by Ivan Romero, 39, of El Prado, N.M., that allegedly distributed heroin in Taos County. The indictment alleges that Ivan Romero and six co-conspirators, including three members of Romero’s family, participated in a heroin and methamphetamine trafficking conspiracy that existed from at least June 2012 and continued until Dec. 2015. It also alleges that Ivan Romero and three members of his family participated in a money laundering conspiracy to conceal and disguise the nature of their drug trafficking proceeds. The indictment includes forfeiture provisions that seek to forfeit to the United States any and all property derived, either directly or indirectly, from proceeds obtained from the criminal activity charged in the indictment.
During the course of the investigation, law enforcement officers seized more than $378,000, more than 500 grams of heroin and seven kilograms of marijuana. Additionally, during the arrest operation on Dec. 18, 2015, officers seized more than $70,000, several ounces of heroin, and three firearms and ammunition.
The investigation leading to the indictment was conducted by the Albuquerque office of the DEA, the HIDTA Region III Drug Task Force, New Mexico State Police, Taos Police Department, Taos County Sheriff’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case as part of 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.
Indictment in United States v. Ivan Romero, et al., 15-CR-4512
Summary of the Charges
Count 1 of the Indictment charges seven defendants with participating in a heroin and methamphetamine trafficking conspiracy in Taos County and elsewhere in the District of New Mexico from at least June 2012 through Dec. 2015. The statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life.
Count 2 charges four defendants with participating in a money laundering conspiracy in Taos County from April 2015 through July 2015. The maximum statutory penalty for a conviction on this count is imprisonment for 20 years.
Counts 3, 4 and 7 charge certain defendants with distributing heroin in Taos County on July 7, 2014, April 2015 and June 2015. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Count 5 charges Ivan Romero with distributing heroin in Taos Count in April 2015. The maximum penalty for a conviction on this count is imprisonment for not less than five years or more than 40 years.
Count 6 charges Ivan Romero with distributing marijuana in Taos County in April 2015. The statutory maximum penalty for a conviction on this count is imprisonment for five years.
Count 8 charges Wilma Romero with being a felon in possession of a firearm and ammunition in Taos County on June 29, 2015. On that day, Wilma Romero was prohibited from possessing firearms or ammunition because she previously had been convicted of a drug trafficking crime and unlawful possession of a firearm. The statutory maximum penalty for a conviction on this count is imprisonment for ten years.
Defendants Charged in Indictment
Ivan Romero, 39, a resident of El Prado, N.M., is charged in Counts 1, 2, 5 and 6. Ivan Romero has been arrested.
Ricco Romero, 28, of El Prado, N.M., is charged in Counts 1 and 2. Ricco Romero, the brother of Ivan Romero, has been arrested.
Wilma Romero, 65, of Arroyo Hondo, N.M., is charged in Counts 1, 2, 7 and 8. Wilma Romero, the mother of Ivan and Ricco Romero, has been arrested.
Nicholas Baca, 29, of El Prado, N.M., is charged in Counts 1 and 4. Nicholas Baca is in state custody on other charges and will be transferred to federal custody to face the charges in the indictment.
Tyler Baker, 44, of Carson, N.M., is charged in Counts 1 and 3. Tyler Baker has been arrested.
Juanita Romero, 34, of Penasco, N.M., is charged in Count 1. Juanita Romero has been yet to be arrested and is considered a fugitive.
Jason Duran, 41, of Albuquerque, N.M., is charged in Count 1. Jason Duran has been arrested.
Melissa Romero, 28, of El Prado, N.M., is charged in Count 2. Melissa Romero, is married to Ivan Romero, has been arrested. Melissa Romero was released on conditions of release under pretrial supervision.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Romero Indictment
FBI New York Art Crime Team Has Record Number of Art and Cultural Items Returned in Second Half of 2015, Seeks Public Assistance Locating Other Stolen ItemsRead the Press Release
A Chilean tapestry, the Bark Washington painting, and the Ames Stradivarius violin were returned to their rightful owners following the investigative work and partnerships of the FBI’s New York Art Crime Team. The team is composed of Special Agents Meridith Savona and Christopher McKeogh, whose primary investigative work includes recovering art and cultural property and bringing those responsible for the theft, fraud, looting and trafficking to justice.
The Chilean tapestry known as The Ambassadors of Rome Offering the Throne to Numa Pompilio was returned in September 2015 to the owner’s attorney. The tapestry had been stolen from the owner’s residence in Santiago, Chile, in November 2006, and the theft was reported to INTERPOL Washington. The tapestry was recovered when it was placed for auction in New York in 2014. INTERPOL Washington requested the assistance of the FBI’s New York Art Crime Team on behalf of the Santiago Police to take custody of the tapestry. The case remains open with the Santiago Police. There were no charges filed against the parties attempting to auction the tapestry.
The Bark Washington painting was returned to the Oysterponds Historical Society in Orient, New York, by the FBI’s New York Art Crime Team in September. The painting, along with the Jennie French Potter painting and two whale busks, were stolen in March 2001. The return of the Bark Washington painting was made possible by an individual who bought the painting at an antique shop in East Marion, New York in 2001 for a few hundred dollars. The individual researched the painting on the FBI’s Stolen Art Database and discovered it was stolen. He then contacted the FBI, generously agreeing to return it to the rightful owner. The thief was never, and the case remains open.
A 1734 Stradivarius violin, the Ames Stradivarius, was returned in August to the heirs of deceased violinist Roman Totenberg. The violin was stolen from Mr. Totenberg in 1980, along with two antique bows, following a concert in the Longy School of Music in Cambridge, Massachusetts. It was recovered by the FBI’s New York Art Crime Team in June 2015. The bows are still missing, and the FBI case remains open.
The FBI reminds the public to come forward with any information they may have about the missing items. Tips may be submitted to the FBI’s Art Crime Team at (212) 384-1000 or on our webpage (https://tips.fbi.gov/). Tipsters may remain anonymous. Art and cultural item buyers are recommended to review the FBI’s Stolen Art Database prior to a purchase to avoid civil forfeiture of stolen items.
East St. Louis Woman Sentenced for Distribution of Crack and Felon in Possession ChargesRead the Press Release
An East St. Louis woman, convicted of Distribution of Cocaine Base (Crack), Possession with Intent to Distribute Cocaine Base (Crack), and Felon in Possession of a Firearm, was sentenced to federal prison today, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced. Georgia Phillips, 40, of East St. Louis, Illinois, received a 46 month sentence for her offenses Phillips had previously pled guilty. Following release from imprisonment, Phillips will serve a 3 year term of supervised release. Phillips was also ordered to pay a $900 fine and a $300 special assessment.
Agencies participating in this case include the Drug Enforcement Administration and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
East Bay Real Estate Agent Charged with Multimillion Dollar Property Scheme Related to Fraudulent LawsuitsRead the Press Release
SAN FRANCISCO – An indictment returned by a federal grand jury in San Francisco was unsealed today, charging Robert Jacobsen with wire fraud and with engaging in financial transactions involving criminally derived proceeds, announced Acting United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, Acting Special Agent in Charge Andrew Toth of the Internal Revenue Service-Criminal Investigation, and the Special Inspector General for the Troubled Asset Relief Program, Christy Goldsmith Romero.
According to the indictment, Jacobsen, 67, formerly of Lafayette, Calif., is alleged to have devised a scheme to defraud homeowners and mortgage holders. To accomplish this scheme, Jacobsen created a company called “American Brokers’ Conduit Corporation.” This company was not related to a mortgage originator known as “American Brokers’ Conduit,” which had originated mortgages in the Bay Area and elsewhere. Jacobsen, through intermediaries, gained control of homes with mortgage liens that secured loans originated by the real “American Brokers’ Conduit,” and then, again through intermediaries, sued the phony “American Brokers’ Conduit Corporation” in court, claiming that the legitimate mortgage liens were invalid. As he controlled both the plaintiff and the defendant in these lawsuits, he instructed the attorneys for both sides to enter into stipulated judgments, signed by the courts, resolving the lawsuits by purporting to declare the mortgage liens invalid. In so doing, he omitted to tell the courts that neither he nor any other person involved in the lawsuits was a legitimate representative of either the real “American Brokers’ Conduit” or the then-current owners of the liens. Jacobsen filed those agreements with the relevant county recorder’s offices, to give the appearance to anyone conducting a title search that the liens had been declared invalid by a court, and then sold the homes to unsuspecting buyers without paying off the original loans on the homes. Jacobsen kept the vast majority of the proceeds of these sales to himself, laundering the money through multiple bank accounts in the United States and in Belize, and buying property and a yacht with the money.
Jacobsen successfully completed his scheme by selling two homes, one in Danville, Calif., and the other in San Francisco, for a total of over $1.6 million. He attempted the scheme on another home, in Monterey, Calif., which was last sold approximately 15 years ago for $2.5 million.
Defendant was indicted on November 5, 2015, and surrendered to federal agents today at the federal building at 450 Golden Gate Avenue in San Francisco. He made his initial appearance before the Honorable Nador J. Vadas, United States Magistrate Judge, and was released on a $200,000 bond. Defendant’s next scheduled appearance is at 9:30 a.m. on December 28, 2015, before Judge Vadas, for a bail review hearing, and then before the Honorable Richard Seeborg, United States District Judge, at 2:30 p.m. on January 12, 2016, for his initial appearance before the district court.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years of imprisonment, and a fine of $250,000 or twice the gross gain or loss, plus restitution, for each count of wire fraud in violation of 18 U.S.C. § 1343. If convicted, the defendant faces a maximum sentence of 10 years of imprisonment, and a fine of $250,000 or twice value of the property involved in the financial transaction, for each count of engaging in monetary transactions involving the criminally derived proceeds, in violation of 18 U.S.C. § 1957. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Lillian ArauzHaase and Jessica Meegan. The prosecution is the result of a two-year investigation by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and the Office of the Special Inspector General for the Troubled Asset Relief Program.
Des Moines Man Sentenced to 188 Months in Prison for Robbing Two Local BanksRead the Press Release
Des Moines, IA – On December 21, 2015, Laymon Clovesee English, 49, of Des Moines, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 188 months in prison for two counts of bank robbery, announced Acting United States Attorney Kevin E. VanderSchel. English will be required to serve three years of supervised release following his term of imprisonment.
English, at his change of plea hearing on August 28, 2015, admitted he robbed Bankers Trust, 150 East Euclid Avenue, Des Moines, Iowa, on December 31, 2014. English also admitted he robbed U.S. Bank, 2500 East Euclid Avenue, Des Moines, Iowa, two days later, on January 2, 2014. English was apprehended by U.S. Bank customers when he committed the second robbery.
This matter was investigated by the Des Moines Police Department, the Polk County Sheriff’s Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Department of Justice Announces Leaders of U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives Will Continue Serving for Duration of AdministrationRead the Press Release
The Department of Justice today announced that both Acting Director David Harlow of the U.S. Marshals Service (USMS) and Deputy Director Thomas E. Brandon of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) will continue to serve as the heads of their respective agencies for the duration of this administration.
“Over the course of their decades in law enforcement, David Harlow and Thomas Brandon have demonstrated themselves to be outstanding public servants and extraordinary partners in the work of building a stronger, safer nation,” said Attorney General Loretta E. Lynch. “As head of the U.S. Marshals Service, David Harlow has led on a range of important issues, from helping to expand the ability of USMS to assist in cases involving missing children, to promoting an understanding of implicit bias, to apprehending violent fugitives. As the leader of ATF, Thomas Brandon has forged broad-based partnerships, advanced intelligence-driven policing and helped shape ATF’s impact as a guardian of public safety. In all of their efforts, they have worked to fulfill America’s highest priorities and most deeply-held values. I am pleased that the American people will continue to receive the benefit of their professionalism, integrity and devotion to duty.”
Harlow became Acting Director of the U.S. Marshals on July 26, 2015. Pursuant to the Vacancies Reform Act, the title of acting director will expire on Feb. 20, 2016, at which time Harlow will continue leading the Marshals as Deputy Director for the duration of this administration.
Brandon became Acting Director of ATF on April 1, 2015. Pursuant to the Vacancies Reform Act, his title of acting director expired on Oct. 27, 2015, and he will continue leading ATF in his role as Deputy Director for the duration of this administration.
Biography of Acting Director David Harlow
David Harlow became the Acting Director of the U.S. Marshals on July 26, 2015, following more than 30 years of dedicated service in the agency. He leads the nation’s oldest and most versatile federal law enforcement agency, responsible for federal judicial security, fugitive apprehension, witness security, asset forfeiture and prisoner operations.
Acting Director Harlow was named the agency’s Deputy Director in February 2014. Since that time, he has focused on ensuring accountability and excellence, and bringing about successful organizational change.
From 2012 to 2014, Acting Director Harlow was the Associate Director for Operations, managing the USMS Operational Directorate, which includes Investigative Operations, Judicial Security, Witness Security, Tactical Operations, Prisoner Operations and the Justice Prisoner and Alien Transportation System.
In May 2012, Acting Director Harlow was promoted to the Senior Executive Service when he was selected as the Assistant Director of the Investigative Operations Division (IOD), overseeing the agency’s extensive fugitive investigations mission. Prior to assuming the position, he was the Acting Deputy Assistant Director of IOD for approximately one year.
Acting Director Harlow served as Chief of the Sex Offender Investigations Branch from 2008 to 2011, overseeing the development and deployment of the agency’s newest investigative program, the Sex Offender Apprehension Program. He also oversaw the interagency National Sex Offender Targeting Center and developed the USMS Behavioral Analysis Unit to assist with prioritizing and targeting non-compliant and fugitive sex offenders.
Before arriving at USMS Headquarters, Acting Director Harlow was the Chief Deputy U.S. Marshal (CDUSM) for the Eastern District of Virginia from 2007 to 2008. Prior to that, he was CDUSM for the Northern District of Ohio, where he served from the time he joined the USMS as a Deputy U.S. Marshal in 1983 until 2007. He made numerous contributions to Northern Ohio over the years, including serving as Commander of Operation FALCON 2007, serving as Deputy Commander of Operation FALCON III, developing the first cooperative fugitive apprehension team consisting of multiple law enforcement agencies in the Toledo area and overseeing the development of the Northern Ohio Violent Fugitive Task Force.
Throughout his career, Acting Director Harlow has received numerous awards, including Attorney General’s Awards, Director’s Awards and several other special act and performance awards. He is also an active member of the Federal Law Enforcement Officers Association.
Acting Director Harlow holds a bachelor’s degree in Law Enforcement Administration from Western Illinois University. He and his wife, Lisa, have two sons, Sean and Brian.
Biography of Deputy Director Thomas E. Brandon
Thomas E. Brandon serves as the Deputy Director and head of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). He was appointed ATF's Deputy Director in October 2011. On April 1, 2015, he was named Acting Director of the agency, and served in that position until October 27th, 2015, when pursuant to the Vacancies Act the title expired. As Deputy Director and head of ATF, Mr. Brandon is responsible for the unique law enforcement agency within the U.S. Department of Justice charged with enforcing firearms and explosives laws and regulations that protect communities from violent criminals and criminal organizations.
At the time of his appointment as Deputy Director in 2011, Mr. Brandon was serving as the Special Agent in Charge of the Phoenix Field Division, directing field operations for ATF in Arizona and New Mexico.
A member of the Senior Executive Service and a seasoned law enforcement professional, Mr. Brandon began his ATF career as a Special Agent in 1989, with Detroit as his first office assignment. Rising through the ranks at ATF, he has served in many management positions including Special Agent in Charge of the Phoenix Field Division and Special Agent in Charge of the Detroit Field Division; Supervisory Special Agent of the Detroit Arson and Explosives Enforcement Group; Special Agent with the Office of Inspection in Washington, D.C.; Supervisory Special Agent of the Achilles Enforcement Group in Los Angeles, California; and as the Division Intelligence Officer with the Phoenix, Arizona, Field Division. Mr. Brandon also held the position of Chief, ATF National Academy, in Glynco, Georgia.
Mr. Brandon is a member of several professional organizations including the International Association of Chiefs of Police (IACP). He earned his Bachelor of Science degree in Business Administration from Oakland University in Rochester, Michigan, in 1987.
Mr. Brandon proudly served in the United States Marine Corps from 1978 to 1982, where his assignments included Embassy duty in Rome, Italy, and Dhahran, Saudi Arabia. Mr. Brandon is a native of New Jersey.
Corpus Christi Woman Charged with Kidnapping ChildrenRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old woman has been arrested on charges that she kidnapped two minor children from their foster home, announced U.S. Attorney Kenneth Magidson. Jada Gregg Warren, of Corpus Christi, is the biological mother of the children but had lost her parental rights in November 2014.
Warren was arrested in Torreon, Coahuila, Mexico, Dec. 16, 2015, and made an initial appearance in Eagle Pass, Texas, today. She is expected to be transferred to Corpus Christi federal court in the near future. At that time, she will face the kidnapping charges as well as a possible revocation of supervised release that she was serving for a drug trafficking conviction from 2014.
At the time of the arrest, the children were with her. They have been returned to the custody of Child Protective Services (CPS).
The criminal complaint alleges that Warren had taken the children from their foster home on Aug. 19-20, 2015. She had allegedly made statements about committing the crime just two days prior.
The children were discovered missing on the morning of Aug. 20, 2015. Several items of clothing had allegedly also been taken. The complaint further alleges that a car she co-owned had a tracking device which indicated it was in Corpus Christi on Aug. 18, but in Mexico two days later. Her Facebook page also indicted she was in Mexico on that date. At the time of the alleged kidnapping, Warren was serving a 36-month-term of supervised release following a federal drug tracking conviction.
On Nov. 6, 2014, a judge in Bexar County had terminated Warren's parental rights and placed the children in the custody of CPS.
The charges are the result of an investigation conducted by the FBI, U.S. Marshals Service and the Corpus Christi Police Department. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Convicted Sex Offender Sentenced to 30 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Michael Brendan O’Connor, 36, of Dallas, was sentenced Friday, by U.S. District Judge Sidney A. Fitzwater, to 30 years in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
O’Connor has been in custody since his arrest in May 2014.
According to documents filed in the case, the investigation began in May 2014 when an officer with the Nebraska State Patrol, working online in an undercover capacity and posing as a 31-year-old female whose interests included incest and molesting her young children, was contacted by an individual, later identified as O’Connor, who expressed similar interests. O’Connor, in very sexually explicit communications, indicated, among other things, that he was “attracted to girls 3 to 10 and 8 is the magic age for me physically.” In a later communication, O’Connor detailed an incident where he molested a young child while he was on break at a restaurant where he worked. On May 13, 2014, O’Connor sent the undercover officer a zip file containing several images of child pornography.
On May 29, 2014, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at O’Connor’s residence. More than 950 images of child pornography, some depicting infants and toddlers, were located on O’Connor’s homebuilt computer. He admitted downloading, possessing and transporting images of child pornography.
O’Connor was convicted of sexual assault of a child in Collin County in 2010 and possession of child pornography in Dallas County in 2009.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Convicted Felon from Albuquerque Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Charles Hodge, 42, of Albuquerque, N.M., pleaded guilty today in federal court to being a felon in possession of a firearm. Hodge entered his guilty plea without the benefit of a plea agreement.
Hodge was arrested in Nov. 2015, on a criminal complaint charging him with unlawfully possessing a firearm and ammunition on Oct. 28, 2015, in Bernalillo County, N.M. According to the complaint, law enforcement officers conducted a traffic stop on Hodge’s vehicle because his vehicle had an expired registration tag. During the stop, the officers learned that Hodge did not have a valid driver’s license or insurance, and advised Hodge that they would have to impound the vehicle. In response to questions regarding whether his vehicle contained any contraband, Hodge told the officers that he had a firearm and ammunition in the vehicle. Thereafter, the officers retrieved a loaded pistol from the center console of the vehicle.
Hodge was subsequently indicted for unlawful possession of a firearm and ammunition on Dec. 2, 2015. Hodge was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including second degree murder, being a felon in possession of a firearm, receiving or transferring a stolen motor vehicle, auto burglary and possession of cocaine.
During today’s proceedings, Hodge pled guilty to the indictment. At sentencing Hodge faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
The case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on prior 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.
Cahokia Man Sentenced for Having Stolen FirearmsRead the Press Release
Michael J. Khoury, 43, of Cahokia, Illinois, was sentenced today in the United States District Court to 188 months in federal prison, to be followed by 5 years of supervised release for possession of a firearm by a felon.
Khoury pled guilty to the charge on May 12, 2015. Evidence showed that Khoury and another individual broke into Rural King, located at 2801 North Illinois in Swansea, Illinois, and stole over fifteen firearms. Khoury later sold one of the stolen firearms to a confidential informant, who provided that weapon to law enforcement. The serial number of that firearm matched the serial number of one of the firearms taken in the burglary. Khoury is a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Swansea Police Department. The case is assigned to Assistant United States Attorney Laura Reppert.
Brooklyn Man Sentenced for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Erie, Pa. -A former resident of Brooklyn, New York, has been sentenced in federal court to 10 months in jail and ordered to make restitution in the amount of $89,007.42 on his conviction of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on William Sarfo, 42.
According to information presented to the court, Sarfo allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Sarfo would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Sarfo.
Bradenton Man Sentenced to 27 Years for Child Pornography OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Kevin Brien Darr (50, Bradenton) to 27 years in federal prison for transporting and receiving child pornography. The Court also ordered him to forfeit two cellphones he had used during the offenses. Darr pleaded guilty on September 16, 2015.
According to court documents, in May 2015, an undercover law enforcement officer observed multiple child pornography files that Darr had been posted to an Internet messaging application. On June 25, 2015, a search warrant was executed at Darr’s residence and agents seized his cellphones. Forensic analyses of the phones revealed more than 500 videos and 4,000 images of child pornography, including multiple files depicting prepubescent minors and sadomasochistic conduct. During the sentencing hearing, Darr admitted to previously abusing a minor female over a period of several years.
"This predator possessed thousands of images of the most egregious crimes against our children. Every time these horrific images or videos are viewed, it amplifies the pain inflicted on these young victims," said Susan L. McCormick, special agent in charge of HSI Tampa. "This strong sentence emphasizes how committed we are to protecting our children and bringing these criminals to justice.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Jennifer Peresie and Rachel Jones.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.