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Tuesday 8 December 2015
Washington County Man Sentenced for Stealing Social Security FundsRead the Press Release
PANAMA CITY, FLORIDA – Lynwood Williams, 53, of Greenhead, Florida, was sentenced yesterday in United States District Court to six months in prison for theft of $63,284 in government funds. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
In October 2006, Williams applied for Supplemental Security Income (SSI) benefits, falsely claiming that he suffered from an organic brain disorder. During interviews with Social Security Administration (SSA) officials, Williams pretended to be mentally disabled, deliberately stuttering and acting as though he had great difficulty forming words. In one interview, Williams was accompanied by a person who, at Williams’ direction, falsely claimed to be Williams’ cousin. His “cousin” falsely claimed that Williams was unable to work due to his mental and speech limitations. In a separate interview, one of Williams’ friends, who was designated as Williams’ representative payee, falsely told SSA officials that Williams was so severely handicapped that he could not take care of his daily needs and had to be supervised like a child.
In 2014, the SSA discovered YouTube videos in which Williams was performing comedy routines that clearly showed Williams did not suffer from a mental or speech impairment. Postings on Facebook indicated that Williams did lawn work, pressure washing, and painting, when he was not working as a comedian.
Williams pled guilty on September 1, 2015. As part of his sentence, he was ordered to pay $56,287 in restitution to the SSA, and $6,997 in restitution to the Florida Agency for Health Care Administration.
This case was investigated by the Social Security Administration - Office of Inspector General, and the Jackson County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Harwin.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Vermont Dairy Farm Agrees to Permanent Injunction Barring Unlawful Administration of Veterinary DrugsRead the Press Release
Farm and Three Individual Defendants Agree to Settle Allegations That Adulterated Food and Drugs Were Introduced Into Interstate Commerce in Violation of the Federal Food, Drug, and Cosmetics Act
The Department of Justice has filed a complaint in the United States District Court for the District of Vermont seeking a permanent injunction against the Correia Farm Limited Partnership d/b/a Wynsum Holsteins, a dairy farm located in West Addison, Vermont, and its co-owners, Anthony and Barbara Correia, and their son and limited partner Stephen Correia, to address alleged violations of the Federal Food, Drug, and Cosmetics Act (“FDCA”).
According to the complaint, which was filed by the United States Attorney’s Office for the District of Vermont and the Department of Justice’s Consumer Protection Branch on behalf of the United States Food and Drug Administration (“FDA”), the farm and individual defendants violated the FDCA by unlawfully administering new animal drugs for uses not approved by the FDA and unlawfully selling livestock for slaughter and human consumption despite the presence of excessive and unsafe drug residues in the animals’ edible tissues. The complaint states that previous inspections of the farm by the FDA and lab tests performed by the United States Department of Agriculture found recurring FDCA violations of the same nature, which the defendants failed to correct despite FDA warnings.
The defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that subjects them to heightened FDA oversight and requires them to, among other things, implement a number of new record-keeping and operational protocols designed to ensure consumer safety. The proposed decree was filed with the district court and is awaiting judicial approval.
“When farms fail to implement and maintain appropriate controls for the administration of antibiotics and other drugs to food-producing animals, they jeopardize public health,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are getting safe food.”
“Vermonters want to know what is in the food they eat, and they deserve food that is free from harmful drugs. The United States Attorney’s Office will continue to vigorously protect those rights and to hold unscrupulous food producers accountable,” said United States Attorney Eric S. Miller. “I commend the Correias for their willingness to enter into a consent decree that will require them to do their part to protect the safety of our food supply.”
This matter was handled by Trial Attorney Megan Englehart of the Department of Justice’s Consumer Protection Branch and Assistant United States Attorney Ben Weathers-Lowin of the United States Attorney’s Office for the District of Vermont, with assistance from Yen Hoang of the FDA’s Office of the Chief Counsel. The defendants were represented by Amy Menard of Neuse, Duprey & Putnam, P.C.
*A complaint sets forth allegations that the government would need to prove in the event that the case were to proceed to trial.
United States Files Consent Decree of Permanent Injunction Against Vermont Dairy Farm to Stop Distribution of Adulterated Food and Unlawful Administration of Veterinary DrugsRead the Press Release
The Department of Justice filed a complaint in the U.S. District Court for the District of Vermont seeking a permanent injunction against the Correia Farm Limited Partnership d/b/a Wynsum Holsteins, a dairy farm located in West Addison, Vermont, and its co-owners Anthony and Barbara Correia and their son and limited partner Stephen Correia, to prevent violations of the federal Food, Drug and Cosmetic Act (FDCA).
According to the complaint, which was filed by the Department of Justice’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Vermont on behalf of the U.S. Food and Drug Administration (FDA), the farm and individual defendants violated the FDCA by unlawfully administering new animal drugs for uses not approved by the FDA and unlawfully selling livestock for slaughter and human consumption despite the presence of unsafe drug residues in the animals’ edible tissues. The complaint states that previous inspections of the farm by the FDA and lab tests performed by the U.S. Department of Agriculture found recurring FDCA violations of the same nature, which the defendants failed to correct despite FDA warnings.
“When farms fail to implement and maintain appropriate controls for the administration of antibiotics and other drugs to food-producing animals, they jeopardize public health,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are getting safe food.”
In conjunction with the filing of the complaint, the defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from violating the FDCA. The consent decree subjects the defendants to heightened FDA oversight and requires them to cease all operations until the defendants implement a number of new record-keeping and operational protocols designed to ensure consumer safety. In order for the defendants to resume food production, the FDA first must determine that their manufacturing practices have come into compliance with the law. The proposed decree is currently awaiting judicial approval.
This matter was handled by Trial Attorney Megan Englehart of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ben Weathers-Lowin of the District of Vermont, with assistance from Yen Hoang of the FDA’s Office of the Chief Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
United States Attorney, Department of Justice announces decision on the criminal investigation of the death of Victor White IIIRead the Press Release
WASHINGTON – The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against any official with the Iberia Parish Sheriff’s Office in connection with the fatal shooting of Victor White.
Federal officials from the U.S. Attorney’s Office for the Western District of Louisiana, the Justice Department’s Civil Rights Division and the FBI met today with the White family to inform them of this decision.
The U.S. Attorney’s Office (USAO), the Department of Justice’s Civil Rights Division and the FBI reviewed all of the material and evidence generated by the Louisiana State Police, including witness statements, crime scene evidence, dispatch recordings, and video footage taken from police vehicles and forensic reports. Additionally, the Department of Justice asked independent medical experts to review the autopsy performed by the state coroner and to conduct an independent analysis of Mr. White’s death. During the investigation, the U.S. Attorney and the investigative team also met with the White family and their representative to obtain additional information, evidence or witness information relating to the case.
In order to prove a violation of applicable federal criminal civil rights laws, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning that the officer acted with the deliberate and specific intent to do something the law forbids. After a careful and thorough review of the evidence, federal prosecutors and FBI agents have determined that the evidence here is insufficient to prove beyond a reasonable doubt that any officer fired a weapon at Mr. White.
During the late evening of March 2, 2014, a deputy responding to a 911 call regarding a fight at a local store, stopped Mr. White and his friend who were on their way back from the store. Mr. White was taken into custody after marijuana and cocaine were found in his possession. According to Mr. White’s friend, who was not arrested, the interaction with the officers was non-confrontational. Video from the patrol car camera is consistent with the witness’s account. Mr. White was handcuffed behind his back, placed in the back seat of the patrol car and taken to the patrol center. While Mr. White was in the back seat of the patrol car, which was parked in the patrol center parking lot, a gun fired, causing a fatal gunshot wound to Mr. White.
Ballistics testing confirmed that the gun used in the shooting was a small .25 caliber handgun that was found on the back seat of the patrol car, adjacent to and behind Mr. White after the shooting. A single spent .25 caliber shell casing was also recovered from the rear compartment of the patrol car. The investigation revealed that Mr. White was in possession of a .25 caliber handgun earlier that evening. Experts determined that the .25 caliber handgun was in close proximity to his body when it was discharged. In addition, gunshot residue was found on both of Mr. White’s hands.
Video footage from earlier that night shows Mr. White reaching around to his front pants pocket area while handcuffed behind his back. Both the state coroner and independent federal medical experts concluded that Mr. White fired the shot while handcuffed. The autopsy revealed a gunshot wound to the chest, with the bullet entering on the right side below the right nipple, and exiting on the left side of the chest near the armpit.
After careful examination of all of the evidence, the USAO, the Civil Rights Division and the FBI determined that the tragic incident did not constitute a prosecutable violation of any federal criminal civil rights statutes.
The U.S. Attorney’s Office for the Western District of Louisiana, the Justice Department’s Civil Rights Division and the FBI devoted significant time and resources to complete a thorough analysis of the evidence and facts developed during the investigation.
The Justice Department is committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated.
U.S. Attorney’s Office in San Diego Collects More Than $37 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
For Further Information, Contact: Executive Assistant U.S. Attorney Blair Perez (619) 546-7963
NEWS RELEASE SUMMARY – December 8, 2015
SAN DIEGO – The U.S. Attorney’s office in the Southern District of California collected over $37 million in civil and criminal actions, including forfeitures, in fiscal year 2015, which ended on Sept. 30, 2015. More than $7.7 million was collected in criminal and civil actions handled solely by the U.S. Attorney’s Office, including $4,311,334 million in criminal actions and $3,477,416 in civil actions.
Additionally, the Southern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,041,041 in civil cases pursued jointly with these offices.
The U.S. Attorney’s office in the Southern District of California, working with partner agencies and divisions, also collected $26.3 million in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used for a variety of law enforcement purposes and to restore funds to crime victims.
“Restitution to victims and taxpayers is another way to ensure that justice is served,” said U.S. Attorney Laura Duffy. “The Southern District of California works hard to increase the amount collected each year through the recovery of ill-gotten gains from illegal activity.”
Major recoveries by the U.S. Attorney’s Office for the Southern District of California in civil cases this year included a case that resolved in May, when five ambulance companies entered into civil settlements with the Department of Justice requiring them to collectively pay more than $11.5 million in payments to the United States to resolve kickback allegations.
The settling defendants include three Orange-County based companies - Pacific Ambulance, Inc. and Bowers Companies, Inc., (both of which were subsequently acquired by Rural/Metro Corporation after the alleged misconduct occurred) and Care Ambulance Service, Inc.; and two San Diego-based companies - Balboa Ambulance Service, Inc., and E.R. Ambulance, Inc.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Attorney General Loretta E. Lynch announced last week that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year (FY) ending Sept. 30, 2015. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office Collects $11,466,944.35 in Fiscal Year 2015Read the Press Release
St. Thomas, USVI – U.S. Attorney Ronald W. Sharpe announced today that the District of the Virgin Islands collected $11,466,944.35 in the fiscal year ending September 30, 2015. Of this amount, $11,242,164.77 was collected in criminal cases and $224,779.58 was collected in civil cases.
Additionally, the District of the Virgin Islands worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,172,157.03 in civil cases pursued jointly with those offices.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in the fiscal year ending September 30, 2015. This amount represents more than seven and a half times the approximately $2.93 billion appropriated for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
In measuring collections recovered in FY 2015, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2015.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” Attorney General Loretta Lynch said. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to
this ongoing work.”United States Attorney Sharpe said: “The recoveries announced today demonstrate that the U.S. Attorney's Office will utilize all means at its disposal to disgorge criminals and fraudsters of illegal and dishonest profits. My office is committed to upholding our laws and ensuring that residents of the Virgin Islands who are the unfortunate victims of crime and other misconduct are made whole.”
The District of the Virgin Islands’ largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud, including Food Stamp fraud, or collected fines imposed on individuals and/or the territory for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Agriculture, Internal Revenue Service, Small Business Administration and Department of Education. The largest criminal collection resulted from a tax fraud case.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Two Sentenced for Cocaine and Firearm Sales in LeominsterRead the Press Release
BOSTON – Two men were sentenced yesterday in U.S. District Court in Worcester in connection with selling cocaine on multiple occasions in Leominster.
Jose Rodriguez, 32, of Fitchburg, was sentenced by U.S. District Court Judge Timothy S. Hillman to 63 months in prison and four years of supervised release. Rodriguez pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute cocaine, four counts of distribution of cocaine and one count of being a felon in possession of a firearm. Julio Alicea-Romero, 27, of Webster, Mass., was sentenced to 36 months in prison and three years of supervised release. Alicea-Romero had pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine and two counts of distribution of cocaine.
The charges against Rodriguez and Alicea-Romero arose from a six-month investigation into drug sales around the Mechanic Street area of Leominster. From June through October 2013, Rodriguez and Alicea-Romero conspired to sell and sold crack cocaine on six occasions to an individual cooperating with law enforcement and to an undercover officer. Rodriguez subsequently sold a loaded .45 caliber handgun to the undercover officer in Leominster on Oct.17, 2013. Rodriguez was previously convicted in 2012 for unlawful possession of a firearm and receiving stolen property.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The investigation was investigated by the DEA High Intensity Drug Trafficking Area Task Force with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Leominster Police Department. The case was prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Two Men Charged with Fentanyl OverdoseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a federal grand jury returned an indictment charging Gary Delima, 26, and Sharif Cargo, 26, both of Brooklyn, New York, with Conspiracy to Distribute a Controlled Substance, Resulting in Death. An additional co-conspirator, Tyson Williams, 31, of Brooklyn and Vermont, was charged with conspiring with Delima, Cargo, and others to distribute at least 28 grams of cocaine base.
Delima, Cargo, and others had been federally indicted on March 18, 2015, on charges related to a conspiracy to distribute heroin and cocaine base in Vermont. A grand jury returned another indictment against them on November 17, 2015, accusing them of sex trafficking by force and coercion of two females, and sex trafficking of a third victim, a minor. Today, a federal grand jury in Burlington returned a Fourth Superseding Indictment, adding new charges related to the July 6, 2014 fentanyl overdose death of a person referred to as G.B. in the indictment. Specifically, the conspiracy was enlarged to include conspiracy to distribute fentanyl, and Delima and Cargo are accused of conspiring with each other and others to distribute the fentanyl that killed victim G.B.
If convicted, Cargo and Delima face a mandatory minimum of 20 years of imprisonment, and up to a maximum of life imprisonment for Conspiracy to Distribute a Controlled Substance, Resulting in Death. Cargo and Delima also face a mandatory minimum of 15 years of imprisonment, and up to a maximum of life imprisonment, for Sex Trafficking by Force and Coercion. Delima faces a mandatory minimum of 10 years of imprisonment, and up to life imprisonment, for the Sex Trafficking of a Child. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty.
United States Attorney Eric S. Miller commended the investigative efforts of the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the South Burlington Police Department; and the Burlington Police Department.
The United States is represented in this matter by Assistant U.S. Attorneys Abigail Averbach and Jonathan Ophardt. Sharif Cargo is represented by Thomas J. Sherrer, Esq. Gary Delima is represented by Brooks G. McArthur, Esq. and David J. Williams, Esq. Tyson Williams is represented by Devin McLaughlin, Esq.Two Members of Dockworkers Union Charged in Scheme that Bilked Health Care Plan by Fraudulently Billing for Chiropractic ServicesRead the Press Release
LOS ANGELES – Two members of the International Longshore and Warehouse Union (ILWU), Local 13, have been arrested on federal fraud charges that allege they caused two medical clinics to bill the union’s health care plan for chiropractic services that either were not provided or were not medically necessary.
Sergio Amador, 49, of Downey, and David Gomez, 52, of San Pedro, were arrested yesterday without incident by federal authorities.
At arraignments yesterday afternoon, Amador and Gomez pleaded not guilty to mail fraud charges contained in an indictment that was returned by a federal grand jury on November 18. Both men were freed on bond and were ordered to stand trial on February 2, 2016.
The ILWU represents dockworkers at the ports of Los Angeles and Long Beach. Members of the union receive benefits, including health care benefits, through the International Longshoremen’s and Warehousemen’s Union – Pacific Maritime Association Welfare Plan.
In 2009, Amador and Gomez opened a clinic in Long Beach operating under the name Port Medical that purported to provide general medical and chiropractic care. The next year, they opened a second clinic operating under the same name in San Pedro.
According to the indictment, Amador and Gomez also created medical management companies that they used to receive funds generated by the medical clinics, which were then used to pay themselves and to pay incentives to Welfare Plan members to use the Port Medical clinics and to encourage other Welfare Plan members to use them. The incentives allegedly included cash payments and sponsorships of sports teams.
The indictment alleges that when some Welfare Plan members went to the Port Medical clinics to receive chiropractic treatment, they were asked to sign their names on multiple sign-in stickers, while on other occasions Welfare Plan members’ signatures on sign-in stickers were forged. According to the indictment, Amador and Gomez then caused the sign-in stickers to be used to create chart entries that falsely indicated the Welfare Plan members had received chiropractic services on dates when no such services had been provided.
The indictment also alleges that Amador and Gomez encouraged Welfare Plan members to go to the Port Medical clinics to receive massages, heat and ice treatments and other services that were not medically necessary – while the patients’ medical charts falsely showed “that the services provided were medically necessary, addressed specific conditions of patients that had been properly diagnosed, and were used to support and facilitate chiropractic care.” Those services – and others never provided – then allegedly were billed to the Welfare Plan. Those bills also concealed that patients had been recruited through the use of cash payments or other incentives.
As a result of the fraudulent scheme, the indictment alleges that Port Medical received at least $225,000 from the Welfare Plan.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The indictment charges both defendants with 20 counts of mail fraud. If they are convicted, each would face a statutory maximum sentence of 20 years in federal prison for each count of mail fraud.
The indictment is the product of an investigation by the U.S. Department of Labor – Office of Inspector General, Office of Investigations; the U.S. Department of Labor – Employee Benefits Security Administration; and the Federal Bureau of Investigation.
Two Former Maverick County Officials Plead Guilty to Federal Bribery ChargesRead the Press Release
In Del Rio today, former Maverick County Precinct 3 Commissioner and Eagle Pass ISD teacher Jose Luis Rosales and former Maverick County Justice of the Peace and businessman Cesar Iracheta pleaded guilty to federal charges in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Rosales pleaded guilty to one count of receiving a bribe; Iracheta, one count of paying a bribe to an agent of an organization receiving federal funds. By pleading guilty, Rosales admitted that during 2012, he manipulated the bidding process to guarantee that individuals he chose would be awarded Maverick County construction contracts. In the scheme, those contractors deposited the checks issued to them by Maverick County and then made cash payments to Rosales. According to court records, the private contractors submitted inflated bids to Maverick County in order for there to be sufficient funds to pay the bribe to Rosales.
By pleading guilty, Iracheta, doing business as C&A Construction in Maverick County, admitted that in 2010, he paid a total of between $8,000 and $10,000 to a Maverick County Commissioner in order to secure two Precinct 2 County construction contracts worth approximately $49,000. According to court records, Iracheta submitted inflated bids to Maverick County in order for there to be sufficient funds to pay bribes to the County commissioner.
Rosales and Iracheta face up to ten years in federal prison. Both men remain on bond pending sentencing. No sentencing dates have been scheduled.
This ongoing investigation is being conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs and the Eagle Pass Independent School District Police Department. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorney Katherine Griffin is prosecuting this case on behalf of the Government.
Title Company Owner Charged with Misusing FundsRead the Press Release
PHILADELPHIA - Anthony R. Angelo, 69, of Philadelphia PA was charged today by Information with wire fraud and bank fraud, announced United States Attorney Zane David Memeger.
The Information alleges that Angelo was the owner of Aracor Search & Abstract Services, Inc., a title company that provided real estate title insurance services and transactions, located in Philadelphia, Pennsylvania. Because Ararcor was in debt, Angelo caused funds from dedicated escrow accounts to be used to pay off other escrow obligations and operating costs, causing a loss of over $1 million to the victims.
If convicted the defendant faces a maximum possible sentence of 70 years in prison, a $1.5 million fine, a five-year period of supervised release and a $300 special assessment.
The case was investigated by Federal Bureau of Invesitgation and is being prosecuted by Assistant United States Attorney Daniel A. Vélez.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Former Civilian Military Employees and One Military Contractor Sentenced for Bribery Scheme at Georgia Military BaseRead the Press Release
Eight Defendants Convicted to Date in Base-Centered Corruption Probe
Three former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one former employee of a military contractor were sentenced to prison following their guilty pleas to bribery and conspiracy offenses arising from their handling of military trucking contracts and theft of surplus military equipment, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Mitchell Potts, 50, of Sylvester, Georgia, the former head of the Defense Logistics Agency (DLA) Transportation Office at the MCLB was sentenced to 10 years in prison for two counts of bribery. Jeffrey Philpot, 38, of Tifton, Georgia, the former lead transportation assistant under Potts in the DLA Transportation Office, was sentenced to seven years in prison for two counts of bribery. Shelby Janes, 69, of Albany, the former inventory control manager of the Distribution Management Center’s Fleet Support Division (FSD) at the MCLB, was sentenced to two years in prison for bribery. Kelli Durham, 35, of Leesburg, Georgia, the former manager of United Logistics (ULOC), an Albany-based trucking company and transportation broker, was sentenced to six months in prison for conspiracy to commit wire fraud. Collectively, the defendants were ordered to pay more than $2 million in forfeiture and restitution.
According to court documents, between 2008 and 2012, Potts and Philpot accepted hundreds of thousands of dollars in bribes from Christopher Whitman, ULOC’s co-owner, to assure that ULOC was awarded commercial trucking contracts from the base. These contracts were loaded with gratuitous requirements, such as expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. At Whitman’s direction, Durham fraudulently re-brokered the loads obtained from DLA to independent truck drivers, but used far fewer trucks without the additional service requirements for which the government paid. To conceal the fraudulent re-brokering, Durham altered government-issued bills of lading and falsified delivery certifications. Durham also submitted false invoices to the government for payment. As a result of these contracts, ULOC grossed more than $37 million over less than four years and cost the government approximately $20 million in overcharges.
Potts and Philpot admitted to participating in a separate bribery scheme in which they accepted bribes from truck drivers and a broker affiliated with another trucking company that did business with DLA at the MCLB. Between the two schemes, Potts took more than $275,000 in bribes, including cash, free rent, home improvements, meals, a hunting trip and other things of value. Philpot accepted a total of nearly $575,000 in bribes, including cash, a casino getaway, home improvements and collector items such as rare coins, a baby grand piano, a Werlitzer jukebox, firearms and a vehicle.
Court documents further show that Janes accepted nearly $100,000 in bribes from Whitman and used his position within FSD to help Whitman steal more than $1 million in surplus military equipment from the base, including bulldozers, cranes and front-end loaders. To accomplish the thefts, Janes removed the surplus items—many of which had returned from conflict theatres abroad and been designated for refurbishment or auction—from Marine Corps inventory lists and arranged for Whitman’s company to transport them off the base. Whitman then arranged to improve the stolen equipment and sell it to private purchasers.
Earlier this year, a jury in the Middle District of Georgia convicted Whitman, Shawn McCarty, a former DLA transportation assistant, and Bradford Newell, a former FSD contractor, of multiple counts of bribery, honest services fraud, theft of government property and obstruction of justice in connection with the schemes. On Sept. 10, 2015, Whitman was sentenced to 22 years, McCarty was sentenced to 10 years and Newell was sentenced to five years. Whitman was ordered to forfeit $18,860,313.75, McCarty was ordered to forfeit $15,410,151.55 and Newell was ordered to forfeit $513,600. Potts, Philpot, Janes and Durham all cooperated with the government’s investigation and testified in the trial. Furthermore, in February 2014, C.W. Smith, who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property and was subsequently sentenced to probation.
The Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General and the Department of Labor Office of the Inspector General investigated the case. Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case. Assistant Deputy Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Danial Bennett of the Middle District of Georgia are handling forfeiture and restitution.
Three Former Civilian Military Employees and One Military Contractor Sentenced for Bribery Scheme at Georgia Military BaseRead the Press Release
WASHINGTON – Three former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one former employee of a military contractor were sentenced to prison following their guilty pleas to bribery and conspiracy offenses arising from their handling of military trucking contracts and theft of surplus military equipment, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Mitchell Potts, 50, of Sylvester, Georgia, the former head of the Defense Logistics Agency (DLA) Transportation Office at the MCLB was sentenced to 10 years in prison for two counts of bribery. Jeffrey Philpot, 38, of Tifton, Georgia, the former lead transportation assistant under Potts in the DLA Transportation Office, was sentenced to seven years in prison for two counts of bribery. Shelby Janes, 69, of Albany, the former inventory control manager of the Distribution Management Center’s Fleet Support Division (FSD) at the MCLB, was sentenced to two years in prison for bribery. Kelli Durham, 35, of Leesburg, Georgia, the former manager of United Logistics (ULOC), an Albany-based trucking company and transportation broker, was sentenced to six months in prison for conspiracy to commit wire fraud. Collectively, the defendants were ordered to pay more than $2 million in forfeiture and restitution.
According to court documents, between 2008 and 2012, Potts and Philpot accepted hundreds of thousands of dollars in bribes from Christopher Whitman, ULOC’s co-owner, to assure that ULOC was awarded commercial trucking contracts from the base. These contracts were loaded with gratuitous requirements, such as expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. At Whitman’s direction, Durham fraudulently re-brokered the loads obtained from DLA to independent truck drivers, but used far fewer trucks without the additional service requirements for which the government paid. To conceal the fraudulent re-brokering, Durham altered government-issued bills of lading and falsified delivery certifications. Durham also submitted false invoices to the government for payment. As a result of these contracts, ULOC grossed more than $37 million over less than four years and cost the government approximately $20 million in overcharges.
Potts and Philpot admitted to participating in a separate bribery scheme in which they accepted bribes from truck drivers and a broker affiliated with another trucking company that did business with DLA at the MCLB. Between the two schemes, Potts took more than $275,000 in bribes, including cash, free rent, home improvements, meals, a hunting trip and other things of value. Philpot accepted a total of nearly $575,000 in bribes, including cash, a casino getaway, home improvements and collector items such as rare coins, a baby grand piano, a Werlitzer jukebox, firearms and a vehicle.
Court documents further show that Janes accepted nearly $100,000 in bribes from Whitman and used his position within FSD to help Whitman steal more than $1 million in surplus military equipment from the base, including bulldozers, cranes and front-end loaders. To accomplish the thefts, Janes removed the surplus items—many of which had returned from conflict theatres abroad and been designated for refurbishment or auction—from Marine Corps inventory lists and arranged for Whitman’s company to transport them off the base. Whitman then arranged to improve the stolen equipment and sell it to private purchasers.
Earlier this year, a jury in the Middle District of Georgia convicted Whitman, Shawn McCarty, a former DLA transportation assistant, and Bradford Newell, a former FSD contractor, of multiple counts of bribery, honest services fraud, theft of government property and obstruction of justice in connection with the schemes. On Sept. 10, 2015, Whitman was sentenced to 22 years, McCarty was sentenced to 10 years and Newell was sentenced to five years. Whitman was ordered to forfeit $18,860,313.75, McCarty was ordered to forfeit $15,410,151.55 and Newell was ordered to forfeit $513,600. Potts, Philpot, Janes and Durham all cooperated with the government’s investigation and testified in the trial. Furthermore, in February 2014, C.W. Smith, who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property and was subsequently sentenced to probation.
The Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General and the Department of Labor Office of the Inspector General investigated the case. Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case. Assistant Deputy Chief Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Danial Bennett of the Middle District of Georgia are handling forfeiture and restitution.
St. Thomas Taxi Driver Pleads Guilty to Transporting Minor for SexRead the Press Release
St. Thomas, USVI- Lennox Phillips, 58, pleaded guilty today in District Court on St. Thomas to one count of transportation of a minor for sex, United States Attorney Ronald W. Sharpe announced. At the conclusion of the hearing, District Court Judge Curtis V. Gomez remanded Phillips into the custody of the United States Marshals Service. Phillips’ sentencing is scheduled for April 7, 2016.
As part of his plea, Phillips admitted that he befriended a 13-year-old female while transporting her to and from school in his taxi van. During the course of that activity, Phillips and the minor became involved in a sexual relationship, and Phillips transported the minor to secluded areas where they engaged in sexual activity. Phillips’ unlawful conduct came to light when an employee at the minor’s school observed Phillips transporting the minor away from the school on numerous occasions when the minor should have been attending school.
“Anyone who targets children for sexual exploitation should consider themselves a target of HSI and our law enforcement partners,” said Angel M. Melendez, special agent in charge of HSI San Juan and USVI. “Our special agents will continue using their investigative authorities to identify, apprehend and prosecute those who, despite all of our efforts, think they can abuse our children and get away with it.”
Phillips faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment. He also faces a maximum fine of $250,000.
Suspected child exploitation or missing children cases should be reported to the National Center for Missing and Exploited Children via its toll-free 24-hour hotline at 202-514-5678, or U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at (340) 693-2250.
This case was investigated by HSI, the Virgin Islands Police Department, and the Virgin Islands Department of Human Services. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Springfield Man Indicted for Stolen Mail, Credit Card FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for possessing stolen mail and for credit card fraud.
Eric David Vancil, 46, of Springfield, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Vancil illegally possessed approximately 200 pieces of stolen mail containing checks and credit cards belonging to approximately 55 different individuals from Oct. 23, 2013, to April 28, 2015.
Vancil is also charged with using his victims’ credit cards and personal identification numbers to conduct financial transactions.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service and the Springfield, Mo., Police Department.
Sea Turtle Egg Smugglers IndictedRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – December 8, 2015
SAN DIEGO – Olga and Jose Jimenez of Hemet were arrested in connection with the smuggling of 911 sea turtle eggs into the United States from Mexico and charged in a four-count indictment.
According to the indictment, on November 23, 2014, in Nayarit, Mexico, defendant Olga Jimenez boarded a bus destined for Tijuana with a large cooler containing approximately nine small plastic bags filled with a total of approximately 911 sea turtle eggs, while defendant Jose Luis Jimenez drove from Hemet, California, to the Mexican border and crossed into Mexico as a pedestrian with two small coolers.
The indictment alleges that at the bus station in Tijuana, the defendants moved the sea turtle eggs from the large cooler to the two small coolers, concealing them under layers of ice, fish and shrimp. The defendants allegedly gave the coolers to the owner of a pickup truck to bring to the United States, telling the driver the coolers contained only fish and shrimp. According to the indictment, the defendants then crossed back into the United States through the pedestrian lanes, after which Olga Jimenez placed a call to one of the occupants of the pickup truck in order to determine whether the sea turtle eggs had successfully entered the United States. The indictment seeks criminal forfeiture of the eggs.
The indictment alleges that the eggs belonged to endangered Olive ridley and Kemp’s ridley sea turtles. Both Olive ridley and Kemp’s ridley sea turtles were initially identified as endangered under the U.S. Endangered Species Act in 1978 and 1973. In 1981, Olive ridley and Kemp’s ridley sea turtles were placed on Appendix I of the Convention on International Trade in Endangered Species (“CITES”). Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in Olive ridley and Kemp’s ridley sea turtles or any part of those sea turtles, including their eggs, without permission from the respective governments.
According to the National Oceanic and Atmospheric Administration, both Olive ridley and Kemp’s ridley sea turtles display one of the most unique synchronized nesting habits in the natural world. Large groups of turtles gather off shore of nesting beaches and then come ashore all at once to nest in what is known as an arribada. Females nest once or twice a year, laying clutches of approximately 100 eggs and burying them in the sand on the beach. The indictment alleges that during the spectacle of the arribada, the nesting sites are vulnerable to poachers, who collect the eggs for sale for human consumption. The eggs are considered a delicacy in Asia, where they are reputed to have aphrodisiac effects.
Olive ridley sea turtles (Lepidochelys olivacea) inhabit a broad range extending in the South Atlantic Ocean from West Africa to South America and in the eastern Pacific Ocean from Southern California to Northern Chile. Adults weigh approximately 100 pounds and have olive/grayish-green heart-shaped shells measuring 22‑31 inches in diameter.
Kemp’s ridley sea turtles (Lepidochelys kempii) are the smallest marine turtle in the world. Their top shell is grayish green and nearly circular, with a pale yellowish bottom shell. Adults weigh approximately 100 pounds and have shells measuring approximately 24-28 inches in diameter. Kemp’s ridley sea turtles are found in the Gulf of Mexico and the Atlantic Ocean from the Yucatan peninsula in Mexico to New England.
Jose Jimenez was ordered to appear before the Hon. Janis L. Sammartino on January 14, 2016 at 1:30 p.m. for a hearing on all motions in the case. Olga Jimenez, who was arrested in the District of Arizona, was ordered to appear in federal court in San Diego on December 16, 2015, at 9:00 a.m. before the duty magistrate.
“The U.S. Fish and Wildlife Service Office of Law Enforcement, along with our agency partners, is committed to investigating people who exploit endangered and protected species to line their own pockets,” said Jill Birchell, Special Agent in Charge of the agency’s California/Nevada office.
“Smuggling wildlife of any kind, especially endangered species, is something we take seriously,” said Eileen Sobeck, assistant administrator for NOAA Fisheries. “We will not tolerate violation of federal and international laws regarding the illegal trade of endangered species, and we will continue to take a hard stance in combating wildlife trafficking.”
*The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Criminal Case No. 15cr2867-JLS
DEFENDANTS
Olga Jimenez Age: 52
Hemet, California
Jose Jimenez Age: 64
Hemet, California
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Smuggling- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Importation Contrary to Law- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Unlawful Trafficking in Wildlife-Title 16, U.S.C. Sections 3372 and 3373
Maximum penalty: Five years in prison and $250,000 fine
Criminal Forfeiture- Title 16, U.S.C., Section 3374
AGENCIES
U.S. Fish and Wildlife Service, Office of Law Enforcement;
National Oceanic and Atmospheric Administration, Office of Law Enforcement
Rochester Man Sentenced for Sex Crime Against MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Todd Glenn Dean, 51, of Rochester, NY, who was convicted of enticing a minor to engage in illegal sexual activity, was sentenced to 18 years in prison by U.S. District Judge David G. Larimer.Assistant U.S. Attorney John J. Field, who handled the case, stated that in September 2014, a minor male was approached by the defendant. Dean handed the minor a piece of paper with his telephone number on it. The minor then reported the incident to his mother who exchanged text messages with the defendant. Based on the exchanges, the mother notified law enforcement.
In October 2014, a law enforcement officer, posing as a 15 year old male, exchanged texts with Dean. The two arranged to meet in Genesee Valley Park for the purpose of having sex. The defendant was arrested when he arrived at the park.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
River Ridge Man Pleads Guilty to Fraud in Security System ContractsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WAYNE WILLIAMS, age 37, of River Ridge, pled guilty today a two-count Bill of Information charging him with wire fraud.
According to court records, WILLIAMS was responsible for selling security systems and services, and also for negotiating and signing customer contracts on behalf of ADT Security and Protection One. WILLIAMS was compensated by his employers through commissions received on contracts he negotiated.
WILLIAMS forged a customer’s signature on a $466,046.18 ADT Security equipment and installation services contract. Without ADT Security’s knowledge, the defendant secretly executed a separate contract with the customer in which only $109,148.93 was charged. The defendant received approximately $73,576.72 in commissions from ADT Security as a result of the fraudulent contract.
With regard to Protection One, WILLIAMS forged a purported customer’s signature on an $80,240.48 Protection One equipment and installation services contract. The defendant received approximately $2,353.99 in commissions from Protection One as a result of this fraudulent contract.
With respect to each count, WILLIAMS faces a maximum term of imprisonment of twenty years incarceration, three years of supervised release after any term of imprisonment, and a $250,000 fine. U.S. District Judge Jay C. Zainey set sentenced on March 8, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney G. Dall Kammer is in charge of the prosecution.
Repeat Offender Convicted in Minnesota of Possession of Child PornographyRead the Press Release
A jury found Frank Russell McCoy, 72, guilty of possession of child pornography after a two-day trial, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
For years, McCoy has written and distributed short stories describing extreme sexual abuse and other acts of violence perpetrated against very young children. In 2013, he was convicted in the Middle District of Georgia of one count of transportation of obscene matters after sending one such story via the Internet to an Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) undercover agent. On Dec. 17, 2013, while McCoy was on bond pending an appeal of his conviction, a U.S. Probation officer observed large numbers of computers and related equipment in McCoy’s home in Minnesota. A search of the computer equipment revealed dozens of videos of child exploitation. Though McCoy had installed forensic wiping software, intended to destroy any evidence of child exploitation images on his computers, the majority of those files had been written onto a portable video player device just before the seizure of the devices.
U.S. District Judge Patrick J. Schiltz of the District of Minnesota presided over the trial. McCoy is scheduled to be sentenced on April 5, 2016.
ICE-HSI investigated this case. Assistant U.S. Attorney Katharine T. Buzicky of the District of Minnesota and Trial Attorney Jeffrey Zeeman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Repeat Offender Convicted of Possession of Child Pornography Depicting Sexual Abuse of Young ChildrenRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division today announced the trial conviction of FRANK RUSSELL MCCOY, 72, who was indicted on January 22, 2015, in the District of Minnesota. A jury returned a guilty verdict after a two-day trial before U.S. District Judge Patrick J. Schiltz. The defendant is expected to be sentenced on April 5, 2016.
According to documents filed in court, MCCOY wrote and distributed short stories describing extreme sexual abuse and other acts of violence perpetrated against very young children. He was convicted in 2013 in the Middle District of Georgia of one count of transportation of obscene matters after sending one such story via the internet to an undercover Homeland Security Investigations agent.
As proven at trial, on Dec. 17, 2013, while MCCOY was on bond pending an appeal of his conviction from Georgia, a U.S. Probation officer observed large numbers of computers and related equipment in MCCOY’s home in Minnesota. A search of the computer equipment revealed dozens of videos of child exploitation. Though MCCOY had installed forensic wiping software, intended to destroy any evidence of child exploitation images on his computers, the majority of those files had been written onto a portable video player device just before the seizure of the devices.
Approximately one month prior to trial, MCCOY was interrupted in the process of typing a sexually explicit story describing the sexual abuse of a young child by her grandfather while he was on supervised and pretrial release and living in a halfway house in the Twin Cities.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is the result of an investigation conducted by Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky and Trial Attorney Jeffrey H. Zeeman of the Child Exploitation and Obscenity Section of the Department of Justice.
Defendant Information:
FRANK RUSSELL MCCOY, 72
Ostego, Minn.
Convicted:
- Possession of child pornography involving a prepubescent minor, one count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Previously Convicted Sex Offender Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Charles Henry Crocker, age 45, of Phoenix, Maryland, today to 10 years in prison followed by 25 years of supervised release for possessing child pornography. Judge Bennett ordered that upon his release from prison, Crocker 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 Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on July 18, 2003, Crocker was convicted of possession of child pornography in federal court in Florida, sentenced to 27 months in prison and ordered to register as a sex offender.
On April 25, 2015, an undercover Baltimore County Police detective connected to the internet and downloaded a movie file that was being made available by an internet user. The file contained a visual depiction of a minor engaging in sexually explicit conduct. Further investigation revealed that Crocker had made the file available.
On May 1, 2015, Baltimore County Police officers executed a search warrant at Crocker’s residence and seized a laptop, desktop computer and two external hard drives. Crocker admitted that he began looking at child pornography a couple years after being release from prison from his prior conviction. Previews of the electronic devices revealed several videos. A subsequent forensic review of the devices revealed additional videos. The videos included between 300 and 600 images of child pornography, including those involving prepubescent females.
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 HSI Baltimore, Baltimore County Police Department, FBI and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney David P. Kehoe, and Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Physician’s Assistant and Husband Charged with Conspiracy to Unlawfully Distribute OxycodoneRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former assistant to a York physician and her husband were charged in U.S. District Court with conspiracy to obtain and distribute up to 20,000 units of oxycodone through fraud and forgery.
According to United States Attorney Peter Smith, Amy Schneider, age 29, and Joseph Schneider, age 29, both of York, were charged in a Criminal Information with conspiracy and distribution of oxycodone. Amy Schneider is also charged with illegally using a Drug Enforcement registration to obtain a controlled substance. Joseph Schneider is charged with acquiring a prescription by fraud or forgery.
The government also filed a plea agreement in the case which recommends that Amy and Joseph Schneider should be held responsible for between 10,000 and 20,000 units (tablets) of oxycodone. The plea agreement is subject to the approval of the Court.
Amy Schneider was the office manager for a physician practicing in York. She was permitted to use pre-signed prescription forms each week. The forms, intended to be used to write prescriptions for refills for patients, were fraudulently used to obtain oxycodone tablets for the Schneiders.
Beginning in approximately January 2014 and continuing until May 2015, Amy Schneider allegedly wrote prescriptions for Joseph Schneider who allegedly took the forms to pharmacies to be filled. The oxycodone tablets were then divided between Amy and Joseph Schneider. Some of the tablets were distributed to others.
The case was investigated by the Drug Enforcement Administration (DEA) and is assigned to Assistant U.S. Attorney Christy H. Fawcett.
The U.S. Attorney’s Office and DEA are continuing to investigate the handling of prescriptions by Defendant Amy Schneider’s employer.
Criminal conspiracy to distribute a controlled substance and distribution and possession with intent to distribute a controlled substance both carry a maximum penalty of 20 years’ imprisonment, a $1 million fine, and a life term of supervised release. The offense of unlawful use of a DEA number is punishable by up to four years’ imprisonment, a $250,000 fine, and three years of supervised release. Acquiring a controlled substance by fraud or forgery is punishable by a maximum sentence of four years’ imprisonment, a $250,000 fine, and three years’ supervised release.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Palmyra Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Noah R. Scribner, 23, of Palmyra, NY, who was convicted of possession of child pornography, was sentenced to time served and 96 months of supervised release by U.S. District Court Judge David G. Larimer. The defendant must also register as a sex offender, and was ordered to forfeit all the digital media used in the commission of the crime.Assistant U.S. Attorney Craig R. Gestring, handled the case, stated that the New York State Police and Federal Bureau of Investigation conducted an online child pornography investigation in December 2013. During that case, they learned that child pornography had been uploaded to a Google cloud drive account. Investigators linked that activity to the defendant, and traced his physical location to a residence in Palmyra. A search warrant was executed and numerous digital items were seized.
During the investigation, Scribner told law enforcement officers that he found the child pornography images and videos online by using certain search terms. The defendant also admitted that he would ask other online users to send him online "links" to other child pornography sites and images. Scribner acknowledged that, in return, he would send those users links with child pornography as well. The defendant estimated that he traded child pornography with others 100 times or more and said that the people he communicated with online (about child pornography) could be from anywhere in the world. At the time he downloaded the images, Scribner believed what he was downloading constituted child pornography.
A forensic review of the digital material seized from Scribner located images of children being sexually abused on several items, including a laptop and Apple iPod. Some of the images depicted prepubescent minors or minors under twelve years old being raped, as well as images which portrayed sadistic or masochistic conduct or other depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation by the New York State Police, under the direction of Major Craig Hanesworth and the Federal Bureau of Investigations Child Exploitation Task Force consisting of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Homeland Security Investigations.
PCP Dealer Convicted of Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – A federal jury convicted George Jack Smith, age 28, of Burtonsville, Maryland, late yesterday for possession with intent to distribute phencyclidine (PCP), illegal possession of a firearm by a previously convicted felon; and using, carrying and discharging a weapon in connection with drug trafficking.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to evidence presented at the five day trial, on December 1, 2013, Smith got into a vehicle outside an apartment complex in the 9300 block of Cherry Hill Road in College Park, Maryland, in order to sell PCP to the vehicle’s occupants. One of the vehicle’s occupants pulled out a knife. Smith got out of the car and fired a gun in the direction of the vehicle as it drove away. One of the bullets broke a pane of glass at the entrance to the apartment building.
Witnesses testified that a short time later, Smith got into a taxi, which was stopped by law enforcement at the apartment complex. Smith was ordered out of the cab and taken into custody. Law enforcement recovered the following items from the pockets of Smith’s jacket: a vial containing ¾ ounce of PCP; a loaded .380 caliber pistol, which had been reported stolen; and a .38 caliber revolver with five spent rounds.
Smith had at least two previous felony drug convictions and a conviction for robbery conspiracy, all in Montgomery County Circuit Court, and was therefore prohibited from possessing firearms or ammunition.
Smith faces a maximum of 20 years in prison for possession with intent to distribute PCP, a maximum of 10 years in prison for being a felon in possession of a firearm, and a mandatory minimum of 10 years and up to life in prison for using, carrying and discharging a firearm during a drug trafficking crime. U.S. District Judge Paul W. Grimm has scheduled sentencing for April 1, 2016, at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Nicolas A. Mitchell and Kristi N. O’Malley, who are prosecuting the case.
Owner of Utah-Based Pharmaceutical Wholesale Distributor Charged in Hundred-Million-Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging RANDY CROWELL, a/k/a “Roger,” with fraudulently distributing, through his Utah-based wholesale distribution company, more than $100 million worth of prescription drugs obtained through a nationwide black market – drugs that were then dispensed by pharmacies to unsuspecting customers. This scheme was not only profitable for CROWELL, but also dangerous to the thousands of patients who ultimately took these black market medications not knowing that they had been previously prescribed to others and then resold and trafficked, often in unsafe conditions. CROWELL was arrested at his home in Henderson, Nevada, and will be presented before U.S. Magistrate Judge Cam Ferenbach this afternoon in the U.S. District Court for the District of Nevada. The case has been assigned to Judge Edgardo Ramos in U.S. District Court for the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Randy Crowell perverted the system designed to ensure patients receive safe and effective medication, making millions in the process. Crowell’s alleged crime victimized not only benefit programs like Medicaid, but also countless everyday people suffering from illnesses who had no idea their medicine had been diverted from the legitimate stream of commerce and could be dangerous to consume.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The crime alleged today details an insatiable desire to generate revenue at the expense of those in need of true medical care. Targeting the most vulnerable sources of supply, namely Medicaid patients and others with subsidized benefits, scheme participants encouraged sick people with serious illnesses to forego medical treatment in exchange for profit. This put others at risk of unknowingly purchasing mishandled medication. While many social benefit programs are subject to fraud, estimates of fraudulent billings to public health care programs are in the tens of billions. It’s essential that all levels of law enforcement work together as closely as possible in an effort to eradicate drug distribution on the black market and combat fraud to taxpayer-funded programs.”
Police Commissioner William J. Bratton said: “This investigation demonstrates the relentless efforts of the Healthcare Fraud Task Force to bring to justice those who would profit from the distribution of illegal medications. I commend the efforts of the investigators involved in this case whose work resulted in this arrest.”
According to the allegations contained in the indictment[1] unsealed today in Manhattan federal court:
From early 2010 until at least July 2012, CROWELL, who was the owner and operator of a licensed wholesale distributor of prescription medications based in St. George, Utah (“Wholesaler-1”), participated in a sophisticated scheme to defraud health insurance companies and Government programs such as Medicaid out of hundreds of millions of dollars by trafficking prescriptions through a nationwide black market. CROWELL, through Wholesaler-1, purchased, for more than $100 million, prescription medications from this black market at a fraction of the legitimate prices for these drugs, before selling the same as new, legitimate bottles of medication to pharmacies all over the country.
To maximize their profits, CROWELL and his co-conspirators focused on some of the most expensive medications on the market, including those used to treat HIV/AIDS. The scheme was not only profitable but potentially dangerous to the tens of thousands of patients ultimately receiving and taking these prescription drugs. As detailed below, many of the bottles purchased through the underground market and then distributed as safe, legitimate medications by CROWELL and Wholesaler-1 had in fact been previously dispensed to others, including individuals based in the Southern District of New York. To conceal the fact that they had been previously dispensed, the bottles were typically “cleaned” with hazardous chemicals such as lighter fluid before being transported and stored in conditions that were frequently unsanitary and insufficient to ensure the safety and efficacy of the medication.
In total, between 2010 and July 2012, CROWELL and Wholesaler-1 paid more than $100 million to buy medications from illegitimate sources of supply, with CROWELL personally earning, during that time period, nearly $16 million from his operation of Wholesaler-1.
THE SCHEME TO DEFRAUD
The fraudulent scheme charged in the Indictment operated by distorting the legitimate flow of medications from manufacturer to pharmacy. Rather than purchasing medications from manufacturers or legitimate authorized distributors at full price, scheme participants, including CROWELL, created and exploited an underground market for these same prescription drugs. Scheme participants targeted the cheapest possible source of supply for these drugs – Medicaid patients and other individuals who received these prescription drugs on a monthly basis for little or no cost, and who were then willing to sell their medicines rather than taking them as prescribed (the “Insurance Beneficiaries”).
Insurance Beneficiaries had prescriptions filled for medications each month at pharmacies across the country, including in Manhattan and the Bronx, and then sold their medications to low-level participants (“Collectors”) in the scheme who worked on street corners and bodegas and would pay cash – typically as little as $40 or $50 per bottle. Every major health care benefit program, including Medicaid, expressly prohibits a beneficiary from seeking care under such circumstances, and health care benefit programs would not have paid for the medications issued by pharmacies to the Insurance Beneficiaries had these health care benefit programs known that the Insurance Beneficiaries were selling their drugs to others, rather than taking them as prescribed.
Because the ultimate goal of the scheme was to resell these medications as new at full price, Collectors and other scheme participants used lighter fluid and other potentially hazardous chemicals to remove the patient labels affixed when the bottles were initially dispensed to the Insurance Beneficiaries. This process, referred to as “cleaning” the bottles, was dangerous, as these hazardous chemicals could infiltrate the bottles rendering the medication unfit for human consumption.
Collectors then sold these second-hand drugs to higher-level scheme participants (“Aggregators”) who bought dozens, and sometimes hundreds, of bottles at a time from multiple collectors before selling them to higher-level scheme participants with direct access to legitimate distribution channels, including corrupt wholesale companies like Wholesaler-1. The corrupt wholesale companies, including Wholesaler-1, then resold the bottles as new to pharmacies, including potentially the very same pharmacies that initially dispensed these medications, at full price. In so doing, and as described below, CROWELL and other corrupt wholesale companies intentionally misrepresented where these medications were coming from and, in particular, concealed the fact that these prescription drugs had been obtained from an illegal and illegitimate black market.
CROWELL AND WHOLESALER-1
Central to the scheme’s success was the participation of corrupt, licensed wholesale distributors willing to buy the “second hand” medications at a fraction of their legitimate price and then resell them as new to pharmacies that would in turn dispense these medications to unsuspecting patients. CROWELL and Wholesaler-1 were among the largest of these corrupt wholesalers.
Between 2010, when Wholesaler-1 was created by CROWELL, and July 2012, Wholesaler-1 had no legitimate sources of supply. Instead, CROWELL caused Wholesaler-1 to purchase exclusively from illegitimate sources – including the so-called “Aggregators” – who sold to CROWELL at substantially reduced rates, sometimes as much as 50 percent less than the price of acquiring these medications from legitimate sources. Consistent with their illegitimate origins, inbound shipments of prescription drugs frequently arrived at Wholesaler-1 improperly packaged in unsealed, unsecure cardboard boxes. On some occasions, bottles of medication arrived at Wholesaler-1 with the initial patient labels still affixed to them. On other occasions, bottles arrived having already been opened, or containing what appeared to be the wrong medication. At the direction of CROWELL, employees of Wholesaler-1 then inventoried these bottles, attempted to remove any bottles that still had patient labels affixed to them or were otherwise visibly used or damaged, and then arranged for the medications to be shipped out to Wholesaler-1’s customers – i.e., pharmacies all over the country, including pharmacies in Manhattan and the Bronx.
To effectuate the scheme – and, in particular, to convince pharmacies to buy these medications, and health care benefit programs to pay for them, CROWELL and others made false and fraudulent representations about the origins of these medications. Specifically, CROWELL and others acting at his direction created false and fraudulent documents known as “pedigrees” for these medications, which purported to document the legitimate movement of these medications bought and sold by Wholesaler-1 from a manufacturer to the pharmacy. In truth, and as CROWELL well knew, none of the medications purchased or distributed by Wholesaler-1 had come from legitimate sources of supply, and the pedigrees created by Wholesaler-1 and signed by CROWELL were intentionally fabricated so that the medications could be sold, as new, to pharmacies and so that health care benefit programs would be duped into paying for these illegitimate second-hand drugs.
In order to evade detection, CROWELL took additional steps to conceal the unlawful nature of his activities, including using the name “Roger,” frequently changing or “dropping” the phones he used to communicate with co-conspirators, and paying co-conspirators through front or “sham” companies.
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CROWELL is charged with one count of conspiracy to commit health care fraud, which carries a maximum sentence of 10 years in prison, one count of conspiracy to commit mail and wire fraud, which carries a maximum sentence of 20 years in prison, one count of conspiracy to violate the Food, Drug and Cosmetics Act, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the New York FBI’s Health Care Fraud Task Force, which comprises agents, officers and investigators from the FBI, the NYPD, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management's Inspector General, U.S. Food and Drug Administration, U.S. Health and Human Services Office of Inspector General, New York State Office of Medicaid Inspector General, New York Health and Hospitals Corporation Inspector General, and the National Insurance Crime Bureau.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit.Assistant U.S. Attorneys Edward B. Diskant and Matthew Podolsky are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment forth herein constitute only allegations, and every fact described should be treated as an allegation.
Oklahoma City Pimp Sentenced to 92 Months in Prison for Transporting a Juvenile Across State Lines for the Purpose of ProstitutionRead the Press Release
Oklahoma City, Oklahoma – Today, PHILIP GATSON, (aka "Young Selo") 24, of Oklahoma City, was sentenced by United States District Judge Robin J. Cauthron to serve 92 months in federal prison for transporting a child under age 18 across state lines for the purposes of engaging in prostitution, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Following his release from prison, Judge Cauthron ordered that Gatson serve five years of supervised release that includes conditions of registration as a sex offender, computer restrictions, and limitation on being around children under the age of 18 years of age.
Gatson was indicted on December 9, 2014, and pleaded guilty on August 5, 2015, to a Superseding Information alleging that from September 2013 to October 15, 2013 he transported a juvenile across state lines to engage in prostitution. Reference is made to the court record for further information.
This case is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford, II.
Ohio Man Sentenced to Federal Prison for Mail FraudRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore today sentenced David Brooks (40, Ohio) to four years in federal prison for mail fraud. The Court ordered that this sentence be served consecutive to a seven-year state sentence in Ohio for a violation of probation, based on the same underlying conduct. As part of his federal sentence, the Court also entered a money judgment in the amount of $792,851, the proceeds of the fraud scheme.
Brooks pleaded guilty on September 17, 2015.
According to court documents, in October 2011, Coastal Orthopedics and Sports Medicine of Southwest Florida (“Coastal”), located in Bradenton, hired Brooks as its Financial Accounting Manager. While working for Coastal, Brooks was convicted of theft, money laundering, and other fraud-related offenses in Ohio. When Coastal discovered this information in June 2013, they fired Brooks and commenced a review of its books and records to which Brooks had access.
Employees for Coastal discovered that between approximately January 2012 and June 19, 2013, Brooks had used company accounts to purchase more than $700,000 worth of American Express gift cards. Brooks then used the giftcards to pay for personal expenses, including multiple hotel stays, plane tickets, legal fees for his Ohio criminal case, and a 2012 Jeep Liberty. A review of Coastal’s financials also revealed that Brooks, without authorization, had diverted payroll funds, which resulted in him receiving double his salary per pay period.
In total, Coastal suffered a loss of $792,851.79 a result of Brooks’s efforts to defraud the medical practice.
This case was investigated by the United States Secret Service and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Ohio Man Indicted for Soliciting the Murder of Members of the U.S. MilitaryRead the Press Release
A six-count indictment was filed today charging an Akron, Ohio, man for soliciting the murder of members of the U.S. military.
Terrence J. McNeil, 25, was indicted on three counts of solicitation of a crime of violence and three counts of threatening military personnel. He was arrested on Nov. 12, 2015, on federal charges that he solicited the murder of members of the U.S. military.
The charge was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“According to the indictment, Terrence McNeil solicited the murder of members of our military by disseminating ISIL’s violent rhetoric, circulating detailed U.S. military personnel information and explicitly calling for the killing of American service members in their homes and communities,” said Assistant Attorney General Carlin. “ISIL and its followers continue to use social media in an attempt to incite violence around the world, including in the United States. The National Security Division's highest priority is counterterrorism and we will use all of our tools to disrupt threats and acts of violence against our military members and their families.”
“We owe it to our servicemen and women to protect their safety at home after they fought abroad to protect our freedom,” said U.S. Attorney Dettelbach. “This defendant is charged with urging harm to our men and women in uniform and will now answer for those threats.”
“While we aggressively defend First Amendment rights, the individual arrested went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “We will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to the indictment:
McNeil maintained social media accounts on several social media web sites, including Facebook, Twitter and Tumblr. He repeatedly professed his support on social media for the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch.
The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
On Oct. 3, 2015, McNeil posted on his Twitter account: “Released - Address of the US Navy Seal [R.O] who killed Sheikh Osama Bin Laden R.A. - #GoForth #RunRobertRun.”
The defendant included in his post an embedded link that when clicked revealed the purported address of R.O. and a link to R.O.’s purported photograph. The link further stated that R.O. “is a mummy’s boy who has been trying to hide yet still lives with his father…and mother…In between going around America to conferences boasting at how his ‘claim to fame’ is killing Sheikh Osama Bin Laden R.A. …I am posting his address to brothers & to Al Qaeda in the U.S. as a number one target.”
On Oct. 3, 2015, McNeil posted the content regarding R.O. and his address and photograph from the embedded link described above onto his Tumblr page. McNeil added the statement, “don’t let this kafir sleep peacefully,” to his Tumblr post.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation. Each solicitation count carries a statutory maximum sentence of 20 years in prison, and each threat count carries a statutory maximum sentence of five years in prison.
An indictment is only a charge and not evidence of guilt. It is the government’s burden to prove the case beyond a reasonable doubt, and a defendant is presumed innocent until that time.
The case is being investigated by the FBI’s Joint Terrorism Task Force in Cleveland. This case is being prosecuted by U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section.
McNeil Indictment
Ohio County deputies to carry overdose reversal medicationRead the Press Release
WHEELING, WEST VIRGINIA – The Ohio County, West Virginia Sheriff’s Office is adding a new tool to its arsenal in the effort to save the lives of drug overdose victims, United States Attorney William J. Ihlenfeld, II, and Sheriff Pat Butler announced.
Deputies in Ohio County will soon be equipped with Narcan, a medication which reverses overdoses caused by heroin and prescription painkillers and other opioids. Legislation passed earlier this year in West Virginia permits police officers to administer the life-saving drug, and the Ohio County Sheriff’s Office will be one of the only law enforcement agencies in the state where each officer will carry it. Federal funding has been secured to provide for the start-up costs.
“It is important to capitalize on every opportunity we have to make our neighborhoods safer and Narcan is a powerful tool in this effort,” said Ihlenfeld. “I’m excited to be part of a program that will save lives and give individuals struggling with addiction an opportunity to seek treatment, and I commend Sheriff Butler for adopting the policy for his department.”
All deputies with the Sheriff’s office will receive training on how to identify the symptoms of an opioid overdose and how to administer the medication.
Opioid drugs, such as prescription painkillers and heroin, are derived from morphine in the opium poppy plant. The morphine contained in these drugs binds to opioid receptors in the brain and increases the production of dopamine, which generates a euphoric feeling in the user. Opioid drugs can also slow breathing enough to deprive the brain and other vital organs of oxygen, which can lead to overdose or death. Opioid antagonist medications like Narcan, also known as Naloxone, restore normal breathing by blocking the opioid drugs.
Law enforcement agencies and community organizations interested in obtaining more information about opioid antagonist medications or scheduling training sessions regarding the legal framework surrounding these medications are encouraged to contact Tara Tighe at the United States Attorney’s Office at (304) 234-0100.
Notice of Press ConferenceRead the Press Release
Contact Person: First Assistant U.S. Attorney Beth Drake (803) 929-3000
COLUMBIA, SOUTH CAROLINA -- United States Attorney Bill Nettles and Fourteenth Circuit Solicitor Duffie Stone will hold a press conference Thursday, December 10, 2015, at the Fourteenth Circuit Solicitor’s Office to announce a new partnership between the Fourteenth Circuit Solicitor’s Office and the U.S. Attorney’s Office aimed at taking armed career criminals off the streets.
WHEN: Thursday, December 10, 2015 TIME: 10:00 a.m. WHERE:Fourteenth Circuit Solicitor's Office
39 Sheridan Park Circle, Ste. 2
Bluffton, SC 29910NOTE: Press inquiries regarding logistics should be directed to Erinn McGuire at 843-255-5911. All media must present government-issued photo id (such as a driver’s license). All media should be in place 20 minutes prior to start. Parking will be available in front of the Solicitor’s Office.
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Northern District of Indiana U.S. Attorney’s Office Collects Nearly $11,000,000 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
HAMMOND – U.S. Attorney David Capp announced today that the United States Attorney’s Office, Northern District of Indiana collected nearly $11M in criminal and civil actions in Fiscal Year (FY) 2015. This money, U.S. Attorney Capp explained, is returned to the United States Treasury and is substantially in excess of the operating budget for the United States Attorney’s Office. U.S. Attorney Capp stated, “We have a great team of lawyers and support staff, civil and criminal, which focuses regularly on collecting money due to the taxpayers of the United States.”
Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
In addition to our collection efforts, U.S. Attorney Capp also announced that his office, working with partner agencies and divisions, collected $7,721,481.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used for crime victims and for a variety of law enforcement purposes.
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Northern District of California U.S. Attorney’S Office Collects $284,894,493 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
SAN FRANCISCO- Acting U.S. Attorney Brian J. Stretch announced today that the Northern District of California collected $284,894,493 in criminal and civil actions in Fiscal Year 2015. Of this amount $255,375,956 was collected in criminal actions and $29,518,537 was collected in civil actions.
Additionally, the U.S. Attorney’s Office worked with other offices and components of the Department of Justice to collect an additional $40,522,904 in cases pursued jointly with these offices. Of this amount, $32,438 was collected in criminal actions and $40,490,465 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The recovery of hundreds of millions of dollars from criminal and civil defendants by this Office is a testament to the hard work of our Financial Litigation Unit,” said Acting U.S. Attorney Brian J. Stretch. "Our Office will continue to work tirelessly to recoup victims' losses and to disgorge profits from those who enrich themselves through crime and other violations of federal law.”
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights, and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
In addition to the amounts listed above, the U.S. Attorney’s office in the Northern District of California, working with partner agencies and divisions, collected $5,015,667 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
New York Man Charged with Bank FraudRead the Press Release
PHILADELPHIA - Stephen Jemal, 59, of Brooklyn NY, was charged today by indictment with three counts of bank fraud. These offenses arise from the defendant's obtaining a series of loans and loan modifications, extensions and renewals from Republic First Bank (Republic) totaling approximately $9.3 million, by submitting fraudulent financial documents that falsely stated that Jemal owned a stock portfolio valued, at different times, from approximately $26 million to approximately $60 million, when, in fact, his stock portfolio never contained stock worth as much as $2 million. When Republic began foreclosure proceedings after a nearly five-year relationship with Jemal, the loans were in default by an aggregate total of almost $6 million.
If convicted the defendant faces a maximum possible sentence of 90 years in prison.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Neosho Man Indicted for Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man was indicted by a federal grand jury today for illegally possessing several firearms, including a machine gun.
Andrew J. Sisco, 30, of Neosho, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment charges Sisco with being a felon in possession of firearms. Sisco allegedly possessed a Cobray 9mm fully automatic machine gun, a Mossberg 7mm rifle, a Savage Arms 30-06 caliber rifle, a Tanfoglio .22-caliber rifle, a Sig Sauer 9mm handgun, a Hi-Standard 12-gauge shotgun and a Browning Arms Company 30-06 rifle on Aug. 26, 2015.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sisco has two prior felony convictions for fleeing and eluding law enforcement and felony convictions for driving under the influence (third or subsequent offense), felon in possession of a firearm and aggravated battery.
Sisco is also charged with one count of illegally possessing a machine gun and one count of illegally possessing a silencer.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Newton County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Muse Man Pleads Guilty to Firearm Possession, Transportation of Illegally Taken WildlifeRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RICKY DALE BARRON, age 61, of Muse, Oklahoma, pled guilty to an Information charging him with Felon in Possession of Firearm, in violation of Title 18, United States Code, Section 641. It also charged him with Interstate Transportation of Illegally Taken Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(2).
The charges arose from an investigation by the United States Forest Service.
The Information alleged that On or about October 25, 2015, within the Eastern District of Oklahoma, the defendant, RICKY DALE BARRON, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Remington Model 1100, 12 gauge, shotgun, serial number N280403V, which had been shipped and transported in interstate commerce. It further alleged that From on or about December 14, 2014 to on or about April 2, 2015, within the Eastern District of Oklahoma, and elsewhere, the defendant, knowingly transported wildlife, to wit: a black bear and parts thereof, in interstate commerce from Oklahoma to Arkansas, when in the exercise of due care, the defendant should have known that said wildlife was taken and possessed in a violation of and in a manner unlawful under the laws and regulations of Oklahoma.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is 10 years imprisonment and/or a fine of up to $250,000.00 for Count One and 1 year imprisonment and/or a fine of up to $100,000.00 for Count Two.
Assistant United States Attorney Tim Hammer represented the United States.
Miami-Dade County Resident Sentenced for Stealing Tax RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 30 months in prison, followed by 3 years of supervised release and was ordered to pay joint and several restitution, in the amount of $891,997.31.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Franklin Adderley, Chief, Fort Lauderdale Police Department, made the announcement.
Bobby Cooks, 40, previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to court documents, between 2011 and 2014, Cooks received three United States Treasury tax refunds totaling $1,428,027 based on fraudulent tax returns filed with the IRS. Specifically, on March 11, 2011, Cooks received a tax refund in the amount of $528,071.33 based on a false 2010 tax return filed in Cooks’ name. The tax return claimed significant gambling winnings from, and tax withheld by, a casino. In fact, Cooks won no such money, no such tax was withheld, and the Form W2-G attached to the tax return showing the purported winnings was fake.
Court documents also state that on November 22, 2013, Cooks received a U.S. Treasury check in the amount of $332,534 based on a fraudulent tax return filed in another individual’s name. Cooks obtained a Florida driver’s license in the name of the individual using a fake Georgia birth certificate, and opened bank accounts in the victim’s name where Cooks then deposited the fraudulent tax refund check. On September 23, 2014, Cooks received another U.S. Treasury check in the amount of $567,422 based on a 2011 fraudulent tax return filed in the name of Cooks’ father, who had the same name as the defendant and who had been deceased since 2008. Cooks deposited the check in a bank account that he set up in his name.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Men Found Guilty of KidnappingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that a jury convicted AKIN SEAN EL PRECISE BEY, of Knightdale, North Carolina, and GEORGE LINCOLN STANLEY IV, of Durham, North Carolina of conspiracy to commit kidnapping and kidnapping. AKIN SEAN EL PRECISE BEY was also convicted of being a felon in possession of a firearm and ammunition. The jury returned its verdict following a trial in federal court before Senior United States District Judge W. Earl Britt.
The investigation showed that the victim had been kidnapped from his home after returning from attending a boxing match in Las Vegas. The kidnappers laid in wait at the victim’s house and, after beating him badly, took him to a storage unit where he was held and tortured. Crime scene technicians recovered the kidnappers’ fingerprints, as well as the victim’s blood, within the storage unit. Zip ties were still attached to a chair within the storage unit and the victim’s personal identification was located on a table. The victim, who was severely injured with a swollen eye, ligature marks on his wrists and ankles, and duct tape still on his face and neck, was eventually located by law enforcement on a dark dirt road in Nash County, North Carolina. A search warrant executed at BEY’S house uncovered six firearms; a .32 caliber pistol, Judge Long Colt revolver, .40 caliber pistol, .38 caliber revolver, a rifle, and a 12 gauge shotgun. At the time, BEY was prohibited from possessing any firearms as he had been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
At trial, the evidence showed an elaborate scheme to target and kidnap the victim in order to steal money from him. The defendants broke into the victim’s house when they knew the victim would be out of town. The defendants waited in the victim’s home and attacked the victim when he arrived. The defendants ransacked the victim’s home looking for money. The defendants demanded money of the victim and kidnapped him where they assaulted the victim further in a storage unit and demanded more money. A large sum of cash was taken from the victim. At the time of their arrests, BEY had over $55,000.00 cash in his home and STANLEY had over $21,000.00 cash in his pocket.
Two other individuals, Hubert Dixon, of Durham, North Carolina, and Judson Hugh Debnam, of Raleigh, North Carolina, were also charged with crimes related to this incident and pleaded guilty to conspiracy to commit robbery. The defendants are set to be sentenced at the March 28, 2016 term of Court.
The investigation and arrests were handled by the Raleigh Police Department, Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Raleigh/Wake City-County Bureau of Identification, State Bureau of Investigation, Wake County Sheriff’s Office, Durham County Sheriff’s Office and Johnston County Sheriff’s Office. Special Assistant U.S. Attorney Jonathan Holbrook and Assistant U.S. Attorney Dena King represented the government. Mr. Holbrook is a prosecutor with the Wake County District Attorney’s Office. Wake County District Attorney Lorrin Freeman has assigned Mr. Holbrook to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Holbrook’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Member of Computer Hacking Group “NullCrew” Pleads Guilty in Cyber-Attacks on Corporations, Universities and GovernmentsRead the Press Release
CHICAGO — A Tennessee man pleaded guilty in federal court today to charges he helped launch cyber-attacks on corporations, universities and governmental entities throughout the world.
As a member of the hacking group “NullCrew,” TIMOTHY JUSTEN FRENCH exploited computer vulnerabilities to obtain unauthorized access and steal confidential information, including encrypted personal data of thousands of individuals. French acknowledged in a plea declaration that it is the government’s position that his cyber-attacks caused at least $792,000 in monetary loss to the victims, which included companies, universities and governmental entities.
French, 21, of Morristown, Tenn., pleaded guilty to one count of intentionally damaging a protected computer without authorization. The conviction carries a maximum sentence of ten years in prison. U.S. District Judge Gary Feinerman scheduled a sentencing hearing for March 9, 2016, at 3:45 p.m.
NullCrew is a group of computer hackers who carried out a series of cyber-attacks against businesses, universities and governmental entities in the United States and throughout the world. To publicize their intrusions, French and other members of NullCrew maintained Twitter accounts, including @NullCrew_FTS and @OfficialNull, which they used to announce their cyber-attacks, ridicule their victims and publicly disclose the confidential information they had stolen, according to the plea declaration. French hid his true identity by using Internet aliases, including “Orbit,” “@Orbit_g1rl,” “crysis,” “rootcrysis,” and “c0rps3.”
French admitted in the plea declaration that he participated in at least seven cyber-attacks while a member of NullCrew from 2012 to 2014. One of the attacks was carried out against a large Canadian telecommunications company, while another attack targeted a U.S. state, according to the plea declaration.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney William Ridgway.
Plea Declaration
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Individual for Theft of Valuable Source Code from Former EmployerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of XU JIAQIANG for theft of a trade secret, in connection with XU’s theft of proprietary source code from XU’s former employer. XU was arrested yesterday by the FBI in White Plains and was presented today in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy.
U.S. Attorney Preet Bharara stated: “As alleged, Xu Jiaqiang cheated his former employer through a scheme to steal valuable proprietary source code and sell it to other companies. Theft of trade secrets of the type alleged against Xu drains the lifeblood of innovation and competition, and is rightly a serious federal crime. I would like to thank the FBI for its determined efforts in this investigation, and the U.S. Department of Justice’s National Security Division for its assistance and support.”
Assistant Director-in-Charge Diego Rodriguez stated: “Proprietary software is proprietary for a reason – a company invests in its development, safeguards it and it generates revenue. It is not for employees to take the information they’ve been entrusted with and profit themselves. As alleged, Xu attempted to sell his former employer’s proprietary software code to others. The FBI is committed to enforcing laws that protect U.S. companies from trade secret thefts.”
According to the allegations contained in the criminal Complaint[1]:
From November 2010 to May 2014, XU worked as a developer for a particular U.S. company (the “Victim Company”). As a developer, XU enjoyed access to certain proprietary software (the “Proprietary Software”), as well as that software’s underlying source code (the “Proprietary Source Code”). The Proprietary Software is a clustered file system developed and marketed by the Victim Company in the United States and other countries. A clustered file system facilitates faster computer performance by coordinating work among multiple servers. The Victim Company takes significant precautions to protect the Proprietary Source Code as a trade secret. Among other things, the Proprietary Source Code is stored behind a company firewall and can only be accessed by a small subset of the Victim Company’s employees. Before receiving Proprietary Source Code access, Victim Company employees must first request and receive approval from a particular Victim Company official. Victim Company employees must also agree in writing at both the outset and the conclusion of their employment that they will maintain the confidentiality of any proprietary information. The Victim Company takes these and other precautions in part because the Proprietary Software and the Proprietary Source Code are economically valuable, which value depends in part on the Proprietary Source Code’s secrecy.
In May 2014, XU voluntarily resigned from the Victim Company. XU subsequently communicated with one undercover law enforcement officer (“UC-1”), who posed as a financial investor aiming to start a large-data storage technology company, and another undercover law enforcement officer (“UC-2”), who posed as a project manager, working for UC-1. In these communications, XU discussed his past experience with the Victim Company and indicated that he had experience with the Proprietary Software and the Proprietary Source Code. On March 6, 2015, XU sent UC-1 and UC-2 a code, which XU stated was a sample of XU’s prior work with the Victim Company. A Victim Company employee (“Employee-1”) later confirmed that the code sent by XU included proprietary Victim Company material that related to the Proprietary Source Code.
XU subsequently informed UC-2 that XU was willing to consider providing UC-2’s company with the Proprietary Source Code as a platform for UC-2’s company to facilitate the development of UC-2’s company’s own data storage system. XU informed UC-2 that if UC-2 set up several computers as a small network, then XU would remotely install the Proprietary Software so that UC-1 and UC-2 could test it and confirm its functionality.
In or around early August 2015, the FBI arranged for a computer network to be set up, consistent with XU’s specifications. Files were then remotely uploaded to the FBI-arranged computer network (the “Xu Upload”). Thereafter, on or about August 26, 2015, XU and UC-2 confirmed that UC-2 had received the Xu Upload. In September 2015, the FBI made the Xu Upload available to a Victim Company employee who has expertise regarding the Proprietary Software and the Proprietary Source Code (“Employee-2”). Based on Employee-2’s analysis of technical features of the Xu Upload, it appeared to Employee-2 that the Xu Upload contained a functioning copy of the Proprietary Software. It further appeared to Employee-2 that the Xu Upload had been built by someone with access to the Proprietary Source Code who was not working within the Victim Company or otherwise at the Victim Company’s direction.
On December 7, 2015, XU met with UC-2 at a hotel in White Plains, New York (the “Hotel”). XU stated, in sum and substance, that XU had used the Proprietary Source Code to make software to sell to customers, that XU knew the Proprietary Source Code to be the product of decades of work on the part of the Victim Company, and that XU had used the Proprietary Source Code to build a copy of the Proprietary Software, which XU had uploaded and installed on the UC Network (i.e., the Xu Upload). XU also indicated that XU knew the copy of the Proprietary Software that XU had installed on the UC Network contained information identifying the Proprietary Software as the Victim Company’s property, which could reveal the fact that the Proprietary Software had been built with the Proprietary Source Code without the Victim Company’s authorization. XU told UC-2 that XU could take steps to prevent detection of the Proprietary Software’s origins – i.e., that it had been built with stolen Proprietary Source Code – including writing computer scripts that would modify the Proprietary Source Code to conceal its origins.
Later on December 7, 2015, XU met with UC-1 and UC-2 at the Hotel. During that meeting, XU showed UC-2 a copy of what XU represented to be the Proprietary Source Code on XU’s laptop. XU noted to UC-2 a portion of the code that indicated it originated with the Victim Company as well as the date on which it had been copyrighted. XU also stated that XU had previously modified the Proprietary Source Code’s command interface to conceal the fact that the Proprietary Source Code originated with the Victim Company and identified multiple specific customers to whom XU had previously provided the Proprietary Software using XU’s stolen copy of the Proprietary Source Code.
* * *
The Complaint charges XU, 29, with one count of theft of a trade secret, in violation of Title 18, United States Code, Section 1832, which carries a maximum sentence of ten years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the FBI’s outstanding investigative efforts. XU’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the National Security Division of the U.S. Department of Justice.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit and its White Plains Division. Assistant U.S. Attorneys Benjamin Allee and Ilan Graff and Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section are involved in the prosecution.
The charge in the Complaint constitutes merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Who Held Nurse Practioner Hostage at VA Hospital Charged and ArrestedRead the Press Release
DENVER – Johnie Wayne Roth, age 77, of Aurora, was arrested by Special Agents with the Veterans Affairs (VA) Office of the Inspector General on charges of assaulting, impeding or interfering with an employee of the United States in performance of official duties and use of a deadly or dangerous weapon, the United States Attorney’s Office announced. Roth, who made his initial appearance on Monday, December 7th, was advised of his rights as well as the charge pending against him. He is in the custody of the U.S. Marshals pending a detention hearing scheduled for Thursday, December 10th. A preliminary hearing has been scheduled for December 21, 2015.
According to the facts contained in the arrest affidavit, on the morning of December 3, 2015, Roth had a medical appointment at the Veterans Affairs Medical Center in Denver with a nurse practitioner in Ambulatory Care. As Roth and the nurse practitioner met in her office, the defendant produced a handgun from a bag that he had brought with him to his appointment. Investigators learned that Roth taken over the room, and pointed the gun at his head, and waived it around the room. He also had additional ammunition in his bag. He intended to fire shots into the ceiling so that the VA Police would respond. He did not fire a shot. Instead, the nurse practitioner was able to call for help. It was determined that Roth brought the gun because he wanted the VA Police to shoot him.
As the VA Police responded, the Acting Deputy Chief was able to enter the room and establish a rapport with Roth. Roth wanted the Deputy Chief to shoot him. Other responding officers, who were outside the door, heard the movement of furniture and stormed into the room. Once inside the Deputy Chief instructed them to stand down, as he was able to recover the weapon, a .22 caliber six shot revolver, from Roth. The VA Police took Roth into custody.
“The Veterans Affairs police officers, including the acting deputy chief, showed courage in confronting the defendant, convincing him to let his hostage go and to drop his weapon,” said U.S. Attorney John Walsh. “Roth wanted to die at the hands of the police, and thanks to their law enforcement training, the VA Police handled this crisis with valor.”
If convicted, Roth faces not more than 20 years in federal prison, and up to a $250,000 fine.
The defendant was arrested by the Veterans Affairs Police Department. The subsequent investigation was conducted by the VA Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Jason St. Julien.
The charges contained in the Criminal Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. A Criminal Complaint is a probable cause charging document. Anyone accused of committing a federal felony violation of law has a Constitutional right to be indicted by a grand jury.
Man Charged with Assaulting Coast Guard Officers Arraigned in Key WestRead the Press Release
A Monroe County resident is charged with assaulting United States Coast Guard officers.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Rear Admiral Scott A. Buschman, Commander of the United States Coast Guard 7th District, made the announcement.
Daniel Michael Szabo, 40, of Monroe County, Florida, was arraigned yesterday on a federal indictment charging him with assault on United States Coast Guard officers, in violation of Title 18, United States Code, Section 111, and other offenses.
According to court records, on August 21, 2015, Szabo was on his boat, threatening to commit suicide, when United States Coast Guard officers arrived on scene. After Coast Guard personnel attempted to board Szabo’s vessel, the defendant fled and in the process pulled out a handgun and fired approximately six rounds (shots) at the Coast Guard vessel. Following a thirty minute pursuit, Szabo turned his boat towards and struck the Coast Guard vessel, before being apprehended.
Mr. Ferrer commended the efforts of the U.S. Coast Guard. The case is being prosecuted by Special Assistant U.S. Attorney Jeremy McCall.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Arrested in Florida Indicted in Wichita Bank RobberyRead the Press Release
WICHITA, KAN. - A federal grand jury Tuesday indicted a man who police arrested in Florida on charges of robbing a Wichita bank, U.S. Attorney Barry Grissom.
Antonio Adam Smiley, 30, Zephyrhills, Fla., is charged with one count of bank robbery. In court records, it is alleged that on Nov. 28, 2015, Smiley robbed the Emprise Bank branch at 2323 S. Hydraulic. Investigators allege he entered the bank about 4:45 p.m. wearing a baseball cap and sunglasses. He used a cellular telephone to try to hide his face from surveillance cameras during the robbery and fled the bank with cash. After releasing surveillance photos from the bank, police received information leading them to Smiley.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER GRAND JURY INDICTMENTS
Roy E. Walls-Guiden, 28, Wichita, Kan., and Demon L. Anderson, 26, Wichita, Kan., are charged with two counts of robbery, one count of brandishing a firearm during a robbery and one count of carrying a firearm during a robbery.
The indictment alleges the two men were carrying guns on Dec. 4, 2015, when they robbed the Valero station at 248 S. Hillside and then the Petro America station at 2838 W. Central, both in Wichita. According to court records, a Wichita police officer saw the second robbery, leading to the arrest of the defendants.
If convicted, the crimes carry the following penalties:
Robbery (Counts 1 and 2): A maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
Brandishing a firearm in a robbery (Count 3): Not less than seven years, consecutive to the robbery count, and a fine up to $250,000.
Carrying a firearm during a robbery (Count 4): Not less than five years, consecutive to the robbery count, and a fine up to $250,000.
The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Cynthia K. Griffith, 57, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges that while she worked as a secretary for Griffith Steel Erection, Inc., she embezzled approximately $247,000 from the company. She wrote company checks for her personal expenses.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Assistant U.S. Attorney Aaron Smith is prosecuting. The Wichita Police Department investigated.
Jon Dean Pickerill, 54, Wichita, Kan., is charged with one count of concealing assets from a bankruptcy court and one count of fraudulently transferring funds that belonged to a bankruptcy case. The crimes are alleged to have occurred in 2011 and 2012 in Wichita, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Bankruptcy Trustee and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Eric A. Crawley, 51, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 16, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Secret Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Adrian G. Lawton, 32, Wichita, Kan., and Erica E. Johnson, 23, Wichita, Kan., are charged with one count of possession of counterfeit $10 bills. In addition, Lawton is charged with one count Lawton is charged with one count of making counterfeit $10 bills. The crimes are alleged to have occurred June 5, 2015, in Wichita, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
James L. Scaia, 36, Wichita, Kan., and Deborah S. Fantastic, 43, Wichita, Kan., are charged with one count of making counterfeit $20 bills and one count of passing a counterfeit $20 bill. In addition Fantastic is charged with one count credit card fraud. The crimes are alleged to have occurred in August 2015 in Wichita, Kan.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jamie Santiago-Interiano, 25, Wichita, Kan., Jose Anibal Jacome-Leon, 23, Wichita, Kan., and Ivan Rodriguez-Cordova, 40, Wichita, Kan., are charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Nov. 24, 2015, in Sedgwick County, Kan.
If convicted, the defendants face a penalty of not less than 10 years and a fine up to $4 million on each count. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Christian D. Avila-Ramirez, 33, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 24, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Verlarina Ruth Collins, 48, Winfield, Kan., is charged with one count of theft of Social Security funds, three counts of aggravated identity theft, one count of making a false statement to the government and nine counts of wire fraud. The crimes are alleged to have occurred from 2006 to 2013.
Upon conviction, the crimes carry the following penalties:
Theft of Social Security funds: A maximum penalty of 10 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutively on each count.
Making a false statement to the government: A maximum penalty of five years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
The Social Security Administration investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Los Angeles-Based U.S. Attorney’s Office Collected over $42 Million in Civil and Criminal Actions during 2015 Fiscal YearRead the Press Release
LOS ANGELES – The United States Attorney’s Office for the Central District of California collected $42,370,356 as a result of criminal prosecutions and civil lawsuits during the 2015 fiscal year, United States Attorney Eileen M. Decker announced today.
The amount collected for U.S. taxpayers during FY2015 is the result of nearly $19 million collected in criminal actions, and approximately $23.4 million collected in civil actions.
Additionally, the U.S. Attorney’s Office worked with other offices and Justice Department components to collect an additional $10.54 billion, most of which was related to massive settlements with Bank of America and Standard & Poor’s Financial Service in cases in which proceeds were collected in FY 2015, which ended on September 30.
The U.S. Attorney’s Office also collected $33,353,717 in criminal and civil asset forfeiture proceedings. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“Year after year, my office is involved in the collection of hundreds of millions of dollars – much of which goes the U.S. Treasury to fund government operations and to victims of crime,” said United States Attorney Eileen M. Decker. “Assistant U.S. Attorneys in this office continually demonstrate their deep commitment to being fiscally responsible and working on behalf of the victims of crime.”
The United States Attorney’s Office for the Central District of California is based in Los Angeles and has branch offices in Santa Ana and Riverside. Currently, approximately 230 Assistant United States Attorneys serve more than 19 million residents of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
The U.S. Attorney’s Office and the other litigating divisions in the Justice Department’s are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Attorney General Loretta E. Lynch announced last week that the Justice Department collected $23.1 billion in civil and criminal actions in FY 2015 (see: http://go.usa.gov/cBpWY).
The largest came from financial institutions whose risky practices led up to the 2008 financial crisis and collapse of the U.S. housing market, including $8.2 billion of the settlement in August 2014 with Bank of America Corporation, which included $5 billion in penalties for claims under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) – the largest FIRREA penalty ever - and $687 million from the February 2015 settlement with McGraw Hill Financial Inc. and Standard & Poor’s Financial Services LLC.
Local Residents Indicted in Multi-Million Dollar Ketamine ConspiracyRead the Press Release
HOUSTON – Four people have been charged in a $17 million health insurance fraud scheme involving the sale of ketamine to patients without a valid prescription, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Catherine A. Hermsen, Food and Drug Administration - Office of Criminal Investigations (FDA-OCI), Kansas City Field Office.
Dr. Michael Kelly, 71, of The Woodlands, surrendered to federal authorities today as did Priscilla Orosco, 32, and Joyce Ann Gilmore-James, 67, both of Houston. Kelly is expected to make his initial appearance before U.S. Magistrate Judge Frances Stacy at 10:00 a.m. today. Orosco and Gilmore-James are also expected to appear today, either at 10:00 a.m. or at 2:00 p.m. before Judge Stacy. A fourth defendant - Tamara Mitchell, 49, of Fulshear - had been originally charged by criminal complaint and made an initial appearance. She is set for her arraignment on the indictment before Judge Stacy Dec. 11, 2015, at 10:00 a.m.
The defendants are charged with conspiracy to commit wire fraud, unlawfully distributing a controlled substance and aiding the unlawful distribution of ketamine.
The four-count indictment alleges Mitchell was an owner of two pharmacies, Diamond and Save Rite, that sold controlled substances as part of a marketing scheme, rather than for legitimate medical need. Diamond Pharmacy and Save Rite almost exclusively sold compounded creams containing prescription drugs and ketamine to the public by using pre-signed prescriptions to fill orders for customers, who had the “right” insurance plans, according to the charges .
Mitchell allegedly hired pharmacy technician Orosco and pharmacist Gilmore-James to conduct the day-to-day operations of the business. The indictment alleges Diamond Pharmacy paid Kelly thousands of dollars per month to provide pre-signed prescriptions without examining patients. Diamond and Save Rite then allegedly billed insurance companies for compounded creams containing controlled substances.
The scheme allegedly resulted in $17 million in fraudulent billings over the course of the two-year conspiracy.
“U.S. consumers rely on the FDA to ensure that the prescription medications they use are both safe and effective,” said Hermsen. “We are committed to bringing to justice those who attempt to circumvent FDA’s consumer protections.”
If convicted of the wire fraud conspiracy, the four defendants face up to 20 years in federal prison and a possible $250,000 maximum fine. They also face another 10 years for both the conspiracy to distribute and for aiding the distribution of Ketamine as well as a possible $500,000 fine.
The charges were the result of an investigation conducted by FDA-OCI and Drug Enforcement Administration.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Leader of “Trinitarios” Gang Sentenced in Manhattan Federal Court to 10 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANDY SOSA – the former leader of the “Trinitarios,” a violent street and prison gang composed primarily of individuals of Dominican descent – was sentenced in Manhattan federal court to 10 years in prison for his participation in a massive conspiracy to distribute narcotics and use and possess firearms. SOSA previously pled guilty before U.S. Magistrate Judge James L. Cott and was sentenced today by U.S. District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara said: “Andy Sosa is responsible for funneling massive quantities of heroin, marijuana, prescription drugs and cocaine onto the streets of the Bronx, using violence to intimidate anyone who stood in his way. Thanks to the concerted, combined, and coordinated efforts of federal and local law enforcement, Sosa’s brutal reign has ended.”
According to the indictment, and other documents filed in the case, as well as statements made during the sentencing proceedings:
From approximately 2009 until his arrest in July 2014, SOSA was immersed in activity with the Trinitarios street gang, which has terrorized certain neighborhoods of the Bronx. He led the “Greenbridge” chapter of the Trinitarios, which controlled the drug markets in the area of Kingsbridge Road and Webb Avenue. Undeterred by the arrests of his fellow Trinitarios in a 2011 sweep, SOSA filled the void, and continued to sell drugs – cocaine, marijuana, pills and what amounted to kilogram quantities of heroin over the years – in that area of the Bronx. Because of SOSA’s leadership rank in the gang, other Trinitario members and associates sold drugs in that area only with his permission or at his direction. SOSA’s drug distribution network also extended beyond the Bronx; the investigation revealed that he gave hundreds of grams of heroin to others to sell for him in Connecticut.
SOSA also kept firearms at his apartment in the Bronx, for use by Trinitarios to protect their drug distribution territory and themselves from rival gang members, or for use in retaliation against other neighborhood gangs. Indeed, SOSA was shot by members of a rival gang, known as “Dominicans Don’t Play” (or “DDP”). He carried a 9mm firearm for protection, and his apartment was used to store guns (including, at various times, a .45 caliber handgun, a .38 caliber handgun, a .357 magnum, and a 9mm) and to stash drugs for gang members. SOSA ran Trinitario meetings at his apartment on a number of occasions.
Mr. Bharara praised the work of the New York City Police Department (“NYPD”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Drug Enforcement Administration (“DEA”), and the Department of Homeland Security (“HSI”).
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Justina Geraci, Rebecca Mermelstein, and Rachel Maimin are in charge of the prosecution.
Laredoan Gets Max for Possessing More Than 36K Child Pornography ImagesRead the Press Release
LAREDO, Texas – A 42-year-old Laredo man has been ordered to serve the maximum sentence in federal prison following his conviction of possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Mark Dawson, acting special agent in charge of Homeland Security Investigations (HSI) in San Antonio and Webb County Sherriff Martin Cuellar. Oscar Herrera III, 42, pleaded guilty to the charge in March 2015.
Today, U.S. District Judge Marina Garcia Marmolejo took into consideration that Herrera possessed more than 36,000 images of child pornography on several media devices and handed him the statutory maximum sentence of 10 years. Additional information was also presented today, including a statement by one of the victims in the case which was read in court. Herrera was further ordered to pay restitution to three known victims and will serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of the plea, the court heard that an investigator with the Webb County Sheriff’s Office, while using peer-to-peer software, was able to successfully download various files containing child pornography from an IP address associated with Herrera. As a result of this information, HSI special agents were contacted to assist in the investigation.
In November 2014, agents executed a search warrant at Herrera’s residence, at which time they seized various electronic devices. A preliminary forensic analysis on those devices led to an initial discovery of 3,270 images of child pornography and 444 videos containing child pornography. Further investigation of additional media devices led to the total discovery of nearly four terabytes of images and video. Herrera admitted he downloaded and viewed videos of child pornography and that he knew that it was wrong.
The arrest of Herrera was a result of Operation Child Guardian, which was launched by the Webb County Sheriff’s Office in 2009. The success of these investigations have put dozens of suspected child predators behind bars.
This case, prosecuted by Assistant U.S. Attorney Christopher A. dos Santos, 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."
Kalamazoo Tax Preparer, Fontrice Lenee Charles, Guilty on Multiple Counts of Tax FraudRead the Press Release
"#1 Tax Lady" found guilty of filing multiple phony tax returns
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles announced today that Fontrice Lenee Charles, 39, of Kalamazoo, Michigan, was found guilty of 27 felony tax charges following a four-day jury trial. The charges stem from Charles’s Kalamazoo business, "#1 Tax Lady."
The jury found Charles guilty of 25 counts of filing false tax returns on behalf of clients between January 17, 2011 and February 4, 2014. Each of these counts carries a maximum possible sentence of five years in prison and other penalties. The evidence showed that Charles supplied false information designed to ensure hefty refunds. Further, the jury was advised that Charles prepared a total of 967 such tax returns during this period, resulting in improper tax refunds of approximately $4,000,000.
The jury also found Charles guilty of filing her own false tax returns for 2010 and 2011. These returns were false because they did not report the income that Charles earned as a result of her fraudulent tax preparation activity, and because she claimed a deceased person as a dependent. Each of these offenses carries a maximum penalty of three years in prison.
Charles will be sentenced before U.S. District Judge Paul Maloney at a future date. Prosecution of the matter was handled by Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the Grand Rapids office of the Internal Revenue Service Criminal Investigation.
END
KC Man Indicted for Meth Conspiracy, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury for his role in a conspiracy to distribute methamphetamine in Jasper County, Mo., and for illegally possessing a firearm.
Dustin S. Parrish, 29, of Kansas City, was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Parrish participated in a conspiracy to distribute 50 grams or more of methamphetamine in Jasper County between May 1 and Oct. 1, 2015. Parrish is also charged with possessing methamphetamine with the intent to distribute.
The federal indictment also charges Parrish with one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Parrish allegedly was in possession of a Taurus .40-caliber semi-automatic pistol on Oct. 1, 2015.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Parrish has prior felony convictions for possession of a controlled substance and possession of a precursor drug with the intent to manufacture methamphetamine.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Joplin, Mo., Police Department.
Justice Department Announces Aargauische Kantonalbank Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Aargauische Kantonalbank (AKB) reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, AKB agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
AKB was founded in 1912 and is headquartered in Aarau, Switzerland. The canton of Aargau owns 100 percent of AKB and guarantees its deposits.
AKB offered a variety of traditional Swiss banking services that it knew could assist, and did assist, U.S. taxpayers in concealing their identity from the Internal Revenue Service (IRS) by minimizing the paper trail associated with their undeclared assets and income. AKB offered to identify accounts only by number and agreed not to send any mail to U.S. resident clients, which ensured that documents acknowledging the existence of the accounts remained outside of the United States and beyond the reach of U.S. tax authorities. AKB accepted some former UBS clients following the U.S. investigation of untaxed assets and opened accounts for foundations and other entities that hid their U.S. ownership.
As early as 2008, AKB knew that some U.S.-related accounts held untaxed funds, which were described within AKB in one instance as “Schwarzgeld” or “black money.” AKB knew that U.S. persons had a duty under U.S. law to report their income to the IRS and to pay taxes on that income, including all income earned in accounts maintained by AKB in Switzerland. Despite this knowledge, AKB opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared to the IRS or the U.S. Department of the Treasury as U.S. law required.
AKB clients who lived in the United States engaged in a pattern of cash withdrawals. For instance, one client personally came to AKB and, over the counter, withdrew large amounts of cash from her account – over 100,000 Swiss francs in 2009 and over 180,000 Swiss francs in 2010. AKB also assisted its U.S. clients in sending money to themselves, relatives, business partners or other businesses in the United States by issuing checks drawn on one of AKB’s bank accounts. Because these checks listed only AKB as the accountholder, they did not reveal that the funds were ultimately paid out of the U.S. clients’ Swiss bank account. U.S. clients were thus able to utilize this technique to conceal their ownership of a Swiss account.
In 2009, responding to what AKB considered “astonishing and alarming” international pressure to lift Switzerland’s longstanding client-bank confidentiality for tax-offending foreign clients, AKB decided to start dealing with “openly declared black money and domiciliary companies.” The latter situation, where the domiciliary company was in truth a nominee or sham entity, was one AKB knew its employees either “knew or should expect” to involve tax evasion.
From at least 2008 through 2014, AKB maintained and serviced 454 U.S.-related accounts having a maximum aggregate value of more than $639 million. AKB will pay a penalty of $1.983 million.
In accordance with the terms of the Swiss Bank Program, AKB mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at AKB who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at AKB must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Brian D. Bailey, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Joplin Couple Indicted for Stolen Mail, Passing a Forged CheckRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced two Joplin, Mo., residents were indicted by a federal grand jury today, in separate but related cases, of possessing stolen mail and passing a forged check.
Larissa A. Brady, 32, and her boyfriend, Sheldon Michael Hunt, 32, both of Joplin, were charged in separate indictments returned by a federal grand jury in Springfield, Mo.
Today’s indictments allege that both Hunt and Brady possessed 66 different pieces of stolen mail containing checks, credit cards, Social Security cards and personal identification cards that had been taken from the mail boxes of 36 different individuals between March 1 and June 8, 2015.
Brady is also charged with passing a forged check at the Wal-Mart store in Joplin on June 8, 2015. Hunt is charged with aiding and abetting her in that criminal activity.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the U.S. Postal Inspection Service and the Joplin, Mo., Police Department.