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Friday 4 December 2015
California Woman and Company Charged with Clean Air Act ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHEERY WAY, INC., and ELAINE CHIU, age 60, a resident of San Francisco, California, were charged today in a one-count Bill of Information with a felony violation of the Clean Air Act.
According to the Bill of Information, on or about April 2, 2011, in the Eastern District of Louisiana, CHEERY WAY, INC., and CHIU did knowingly fail to notify and report to the Louisiana Department of Environmental Quality the demolition of the Mississippi Queen Riverboat, a facility, which contained regulated asbestos containing material, to wit: wall and ceiling tiles, at least ten days prior to the start of the demolition as required by the Clean Air Act, in violation of Title 42, United States Code, Section 7413(c)(2)(B) and Title 40, Code of Federal Regulations, Section 61.145(b).
If convicted, CHEERY WAY, INC., faces a maximum term of probation of five years and a fine of $500,000. If convicted, CHIU, faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Environmental Protection Agency-Criminal Investigation Division and the Louisiana Department of Environmental Quality-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
California Medical Device Maker Settles Allegations it Improperly Compensated VA PodiatristsRead the Press Release
A medical device manufacturer based in Sunnyvale, California has agreed to pay $3 million to settle allegations it improperly compensated podiatrists at four Veterans Affairs medical facilities to promote use of its product. Government investigators allege that Spiracur, Inc. improperly compensated VA podiatrists with gifts, gratuities and excessive speaking fees in order to increase sales of its product.
“The law is clear: Government employees are not allowed to accept gifts and gratuities for steering business to a particular company,” said U.S. Attorney Annette L. Hayes. “Care decisions should not be based on who has provided the biggest gift. Taxpayers need to know medical facilities are choosing the right product at the right price for our veterans and others who rely on publicly-funded medical programs.”
Spiracur manufactures and sells a negative pressure wound treatment product, known as “the SNaP system,” which is used primarily in the treatment of diabetic ulcers. Spiracur improperly compensated VA podiatrists who worked at VA facilities in Phoenix, Atlanta, San Francisco and Cleveland. Between 2010 and 2015, Spiracur sold those facilities just over $3.3 million in SNaP systems.
“The integrity of VA’s procurement process of healthcare devices is essential to providing effective care to our nation’s veterans,” said Michael E. Seitler, Special Agent in Charge for the U.S. Department of Veterans Affairs, Office of Inspector General, Northwest Field Office. “This case is one example of the OIG investigating allegations of undue influence into that process. The settlement of this case returns funds to VA that will be used to help care for veterans.”
Under the terms of the settlement agreement, Spiracur admits no wrongdoing and agrees to cooperate with any further investigation into the medical staff who accepted the improper compensation. As part of a separate transaction, Spiracur’s assets are in the process of being acquired by KCI USA, Inc.
The matter was investigated by the Veterans Affairs Office of Inspector General. The case was handled by Assistant United States Attorney Kayla Stahman.
Bronx Woman Sentenced for Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SUZANNE DIANNE BENT, 55, a resident of the Bronx, N.Y., was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation for passport fraud.
According to court documents and statements made in court, BENT is believed to be a native of Jamaica who was illegally brought to the U.S. by her grandmother in 1969. BENT has a criminal history that includes multiple convictions for theft-related crimes, and she has used multiple aliases and dates of birth during her life
On April 1, 2013, BENT applied for a U.S. passport at the Stamford, Connecticut Passport Agency. As proof of citizenship, she provided a fraudulent New York City birth certificate and other documentation.
The investigation further revealed that BENT had fraudulently obtained a Social Security number and, between August 2004 and March 2013, received approximately $76,365 in benefits from the Social Security Administration, Supplemental Security Income Program based on a claimed mental or physical disability.
BENT was ordered to pay restitution in the amount of $76,365.35.
BENT was arrested on December 5, 2014. On July 20, 2015, she pleaded guilty to one count of making a false statement in an application for a U.S. passport.
At the conclusion of the sentencing hearing, BENT was taken into custody by U.S. Immigration and Customs Enforcement.
This matter was investigated by the U.S. Department of State, Bureau of Diplomatic Security; the Social Security Administration, Office of Inspector General – Office of Investigations; and U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
8 Indicted for Violating Federal Drug and Money Laundering LawsRead the Press Release
PITTSBURGH - Four residents of Western Pennsylvania, three of Texas, and one of Florida, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Oct. 21 and unsealed yesterday, named:
- Dante Ivan Lozano, 40, of Olmito, Texas;
- Jeffrey Turner, 35, of McKeesport, Pennsylvania;
- April Racan, 37, of McKeesport, Pennsylvania;
- Joseph Borrelli, 49, of Glassport, Pennsylvania;
- Daniel Cosme, 35, of San Benito, Texas;
- Hugo Balboa, 48, of Texas;
- Brian Kettering, 29, of Charleroi, Pennsylvania; and
- William Coulson, 50, of St. Augustine, Florida.
According to the indictment, between 2011 and 2015, in the Western District of Pennsylvania and elsewhere, Lozano, Turner, Racan, Borrelli, and Kettering conspired to distribute five kilograms or more of cocaine. Lozano, Turner, Racan, Cosme, Balboa, Kettering and Coulson are charged with conspiracy to commit money laundering.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000 or both on the drug conspiracy count, and a sentence of not more than 20 years in prison, a fine of $500,000, or both on the money laundering conspiracy count.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Service in Pittsburgh and the Drug Enforcement Administration in Brownsville, Texas, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
8 Charged with Making False Statements in Connection with the Acquisition of FirearmsRead the Press Release
PITTSBURGH – Six men and two women have been indicted by a federal grand jury in Pittsburgh on charges of making false statements in connection with the acquisition of firearms, United States Attorney David J. Hickton announced today.
The 22-count superseding indictment, returned on Dec. 1, named eight defendants:
- Michael Bassier, 31, formerly of Brooklyn, NY;
- Robyn Brown, 29, of Pittsburgh, Pa;
- Christopher Buchanon, 23, of Pittsburgh, Pa;
- Brandon Goode, 25, of Pittsburgh, Pa.;
- Nathan Lawrence, 33, formerly of Brooklyn, NY;
- Mychael Scott, 31, of Pittsburgh, Pa;
- Talen Simmons, of Pittsburgh, Pa; and
- Brandon Williams, formerly of Pittsburgh, Pa.
According to the superseding indictment, between Sept. 7, 2014, and Aug. 12, 2015, Bassier caused another to make false statements in connection with the acquisition of 44 firearms from licensed dealers in the Western District of Pennsylvania. Bassier is the only defendant charged in each of the 22 counts of the indictment. The remaining defendants are charged in counts alleging that they made or caused the making of false statements with respect to particular firearms.
“This investigation highlights ATF’s commitment to interdict firearms trafficking throughout our region. ATF will continue to pursue criminal networks who funnel illegally obtained firearms into the pipeline that fuels black markets throughout our region, including New York City,” said ATF Special Agent in Charge Sam Rabadi. “ATF and our law enforcement partners will continue to work shoulder to shoulder to identify and arrest sources of illegal guns to prevent gun violence and make our neighborhoods a safe and peaceful place to live.”
At 21 of the 22 counts, the law provides for a maximum sentence of not more than ten years in prison, a fine of not more than $250,000, or both. At the remaining count, which charges only Bassier and Lawrence, the law provides for a maximum sentence of not more than five years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with detectives from the City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office, conducted the investigation leading to the superseding indictment in this case. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Thursday 3 December 2015
‘Pill Mill’ Employees Plead Guilty to Oxycodone ChargeRead the Press Release
COLUMBUS, Ohio – Dr. David Rath, 60, of Alexandria, Ohio, and Karen Climer, also known as Karen D. Muncey and Karen D. Long, 58, of Columbus, each pleaded guilty in U.S. District Court to one count of conspiracy to illegally distribute oxycodone.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and , announced the plea entered into today before U.S. Magistrate Judge Elizabeth Preston Deavers.
According to court documents, Rath was employed as a physician and Climer as an administrative employee at Columbus Southern Medical Clinic, which purported to be a “family medical practice.”
Rath supervised two physician assistants who were each seeing between 50-100 patients a day. Climer scheduled between 200 and 400 patients a day total, knowing that many of the patients were drug seekers addicted to oxycodone. The practice prescribed pain killers to these patients without properly examining, diagnosing and treating them. The clinic focused on a drug seeking patient population that was addicted to pain medications and other controlled substances.
It is estimated that half of the patients receiving controlled substances at the clinic were receiving them unlawfully. Climer also falsified drug tests for patients who tested positive for illegal drugs or who did not have the prescribed controlled substances in their system.
Each defendant faces a maximum prison sentence of 20 years in prison and a potential maximum fine of $1 million.
U.S. Attorney Stewart commended the cooperative investigation by the DEA Tactical Diversion Squad and Ohio Bureau of Workers Compensation, as well as Assistant United States Attorney Kenneth F. Affeldt and Department of Justice Trial Attorney Richard M. Rolwing, who are representing the United States in this case.
Wyoming U.S. Attorney's Office Collects $5,355,903 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Cheyenne – U.S. Attorney Christopher A. “Kip” Crofts announced today that the District of Wyoming U.S. Attorney’s Office collected $5,355,903 in criminal and civil actions in Fiscal Year 2015. Of this amount, $3,801,862 was collected in criminal actions and $1,554,041 was collected in civil actions.
Additionally, the District of Wyoming worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $272,780 in cases pursued jointly with these offices.
Attorney General Loretta Lynch announced on December 3rd 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 billion in collections in FY 2015 represents nearly seven and a half times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s 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 Loretta 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.”
“I am quite proud of the efforts of the Wyoming U.S. Attorney’s Office in collecting significantly more than the cost of operating the office and for once again providing tremendous value to the American taxpayers,” said U.S. Attorney Crofts.
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.
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.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
Virginia man convicted on child pornography charges, traveling to Ohio to engage in sex with minorRead the Press Release
A Virigina man was convicted of traveling across state lines to engage in sexual conduct with an underage girl, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
David W. Vickers, 42, of Leesburg, Virginia, was convicted on three counts: receiving and distributing visual depictions of minors engaged in sexually explicit conduct, enticement, and travel with intent to engage in illicit sexual conduct.
Vickers communicated online with what he believed to be a 29-year-old Ohio woman and her 13-year-old daughter. In fact, Vickers was communicating with law enforcement investigators. Vickers sent 20 child pornography videos, 11 bestiality videos and discussed how he liked to drug and tie up children. In January 2015, he travelled to Ohio for the purposes of having sex with what he believed to be a 13-year-old girl and was arrested, according to court documents.
He is scheduled to be sentenced on March 15. He faces a recommended sentencing guideline range of 30 years to life in prison.
The case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kevin Filiatraut following an investigation by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
Vermont U.S. Attorney’s Office Collects $1,295,116.75 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Burlington - U.S. Attorney Eric S. Miller announced today that the District of Vermont collected $1,295,116.75 in criminal and civil actions in Fiscal Year 2015. Of this amount, $787,749.50 was collected in criminal actions and $507,367.25 was collected in civil actions.
Additionally, the District of Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $620,882.19 in cases pursued jointly with these offices. Of this amount, $14,319.69 was collected in criminal actions and $606,562.50 was collected in civil actions.
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 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 Loretta 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 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.
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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Vermont, working with partner agencies and divisions, collected $1,129,535.00 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.
United States Attorney’s Office Recovers over $88,000,000 in Fiscal Year 2015; Record Amount Shared with Local Police DepartmentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that the Western District of New York Office recovered in Fiscal Year 2015, $88,246,428.15 as a result of wide-ranging efforts in criminal, civil and asset forfeiture cases. As a result, $9,089,436 was distributed to victims of crime in the past year and a record amount of the recovered monies were provided as aid to law enforcement agencies, and in large part, provided to taxpayers as a result of being transmitted to the United States Treasury.In making the announcement, U.S. Attorney Hochul praised the hard work and dedication of Office attorneys and support staff that sought not only to put convicted defendants in jail, but took the profit out of crime in a more literal sense. “This Office strives mightily to protect the public by prosecuting those who would cause our residents harm. At the same time, we believe in the well-known saying “crime doesn’t pay.” To help make this phrase a reality for Western New Yorkers, our Office uses asset forfeiture laws and civil lawsuits to recover money for taxpayers, victims of crime, and local police departments. In other words, we don’t just take the profit out of crime, we use it for the public good.
The $88,246,428.15 represents more than 8 ½ times the amount of money it took to operate the entire United States Attorney’s Office for the year. “Because our budget is approximately $10 million, the recovered money in reality means taxpayers spent nothing for the protection and safety provided by this Office, and while also obtaining an additional $78,000,000 million in money it did not budget receiving through other means,” said U.S. Attorney Hochul.
Specifically, the Office collected $76,130,788 in criminal and civil actions. Criminal actions, which include fines and restitution, totaled $9,809,269.57, most of which was returned to victims of crime. The Office collected $66,321,518.58 in civil actions, which include proceedings involving health care fraud, government fraud, foreclosures and more.
In addition, the Office collected $12,115,640 in criminal and civil forfeitures. Forfeitures generally involve proceeds of crime, as well as property used to commit crime. Of that amount, a record amount of $3,768,043 was shared with state and local law enforcement partners who work with the U.S. Attorney’s Office and the Department of Justice.Since Mr. Hochul became U.S. Attorney, the Office has recovered and returned to victims, taxpayers and police agencies more than $322,000,000:
Fiscal Year 2010: $31,800,000;
Fiscal Year 2011: $29,300,000;
Fiscal Year 2012: $53,600,000;
Fiscal Year 2013: $94,220,000;
Fiscal Year 2014: $25,000,000.In addition to recovering funds, in September 2015, Asset Forfeiture monies were used to demolish six forfeited drug houses on Buffalo’s East Side. This represented the first time such an undertaking was ever accomplished in the United States. A total of 98 dangerous firearms, along with ammunition, and 79 computers and media devices were also forfeited in FY 2015 as instrumentalities of criminal conduct, mostly related to child exploitation cases.
The following cases are an example of a successful forfeiture and affirmative civil enforcement cases concluded this past year in the Western District of New York:
United States v. Doran Feldman, et al.
Doran Feldman was an anesthesiologist for CGF Anesthesia Associates, P.C. in Buffalo. Co-defendant Debra Bulter, who worked in the Department of Anesthesiology for the University of Rochester, started DJA Solutions, LLC to provide administrative consulting services to CGF. In 2001, CGF contracted with the Department of Anesthesiology at the University of Rochester to provide anesthesiologists at medical facilities served by the Department of Anesthesiology. The 2001 Contract was renewed six times by addenda during the fiscal years 2004 through 2009. In September 2007, in the sixth addendum to the 2001 Contract, CGF agreed to provide the Department of Anesthesiology with five anesthesiologists and up to four additional anesthesiologists if requested by the Department of Anesthesiology. The defendant and Bulter fraudulently used the term in the addendum regarding the four additional anesthesiologists to fraudulently cause the Department of Anesthesiology to pay an annual fee to themselves under the terms of a purported option agreement. As a result of the offense, the Department of Anesthesiology at the University of Rochester sustained a loss of $1,460,000.00. Feldman was sentenced to 24 months in prison and ordered to pay $1,460,000.00 in restitution to the Department of Anesthesiology at the University of Rochester and forfeit a number of bank accounts.
United States v. Magness, et al.
A total of over $600,000 was forfeited from defendants Gregory Magness, Eldon Bott, Charles Wright and William Nehill in a case which involved the smuggling of magnesium into the United States from China that was used to produce counter measure flares for the U.S. Department of Defense. The defendants were also ordered to pay restitution totaling $6,246,605 to the U.S. Customs and Border Protection for the loss of duty to the United States. At the time of the importations, the U.S. had a 305.56% antidumping duty in place with respect to magnesium imported from China. In order to avoid the antidumping duty, the defendants falsely mislabeled the magnesium as a magnesium product only subject to a 5% duty, thereby defrauding the United States out of lawful duties. In addition to the over $600,000 forfeited, over $2,000,000 in restitution has already been collected from the defendants towards the restitution.
United States v. Cusimano
Eric Cusimano and other individuals participated in a scheme to commit securities fraud by registering internet websites to tout and promote publically traded stocks of companies with penny stock prices. Cusimano promoted the stocks on his websites and newsletters to boost the stock value and then sell their shares at the highest value. This is known as a “pump and dump” scheme. Cusimano, along with his wife, fled the United States for Panama upon learning of the investigation. The defendant was eventually arrested and brought back to the United States to face charges. Cusimano was convicted of conspiracy and tax evasion and sentenced to 46 months in prison and ordered to pay restitution to the Internal Revenue Service totaling $657,005.00 and a forfeiture money judgment in the sum of $1,218,783.00. In addition, the defendant forfeited an additional $336,522.86 that he had concealed in a number of bank accounts in Belize, various gold and silver jewelry items valued at $42,000.00 that he was found with in Panama, and a 30 foot pontoon boat that was forfeited early on in the investigation.
United States v. Aquilla
Frank Aquila served as the chief negotiator for the Buffalo Educational Support Team ("BEST"), a labor organization comprised of approximately nine hundred (900) City of Buffalo teacher's aides during 2008 collective bargaining negotiations with the City of Buffalo School District. Aquila refused to reach final agreement with the district on a collective bargaining agreement until and unless the district agreed to allow BEST to (1) select its own insurance broker; (2) make commission payments totaling $135,000 per year for four years to an insurance broker selected by BEST; and (3) agreed to make four payments to BEST of $65,000 each for costs and expenses associated with administering health insurance benefits for its members. The defendant failed to disclose to the district or BEST that he would share in commissions paid to the insurance broker selected by BEST, and in payments made to BEST to administer health insurance benefits for its members. Aquila was convicted and required to pay restitution in the amount of $332,500 to the City of Buffalo School District. The defendant also forfeited an additional $33,000 to the government.United States v. Fitzgerald
Charles Darwin Fitzgerald was convicted of possession with intent to distribute various synthetic controlled substances and synthetic controlled substance analogues at both his residence in Rochester and at one of his stores that he owned, the 420 Emporium located in Batavia, NY. The defendant was Fitzgerald was sentenced to 30 months in prison and ordered to forfeit $771,109 in U.S. currency that was seized during the execution of a search warrant at his residence.
United States v. Amedisys
Between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients. The settlement was for $150 million dollars. The majority was paid up from and $35 million paid this year.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at:
http://www.justice.gov/usao/reading_room/foiamanuals.html.\
United States Attorney for Western District of Oklahoma Involved in Collecting over $45.2 Million in Fiscal Year 2015Read the Press Release
Oklahoma City, Oklahoma -- The United States Attorney’s Office for the Western District of Oklahoma was involved in collecting a total of $45,210,641.42 in civil and criminal cases and through asset forfeiture in Fiscal Year 2015, announced Sanford C. Coats, United States Attorney.
The Western District of Oklahoma collected $12,277,349.50 in criminal and civil actions handled by the district. Of this amount, $3,374,634.80 was collected in criminal actions and $8,902,714.70 was collected in civil actions. Additionally, the Western District also worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $1,158,621.92 in civil cases pursued jointly with these offices.
Finally, the U.S. Attorney’s Office also worked with partner agencies and divisions to collect an additional $31,774,670 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.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 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 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 Loretta 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."
"My office was involved in recovering over $45.2 million in fiscal year 2015 – a 24% increase over the prior year," said U.S. Attorney Coats. "This total includes the recovery of tax dollars taken via fraud and restitution for victims of crime. As always, I am extremely proud of these tremendous results and of the exceptional work of the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit."
Significant Cases in the Western District of Oklahoma
In October of 2014, Ocean Dental, P.C, agreed to pay $5,050,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims for dental services that were either never performed or billed at a higher rate than allowed.
In January of 2015, Computer Sciences Corporation agreed to pay $380,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false claims to the United States Air Force in connection with a contract to provide aircraft maintenance services on hydraulic actuators in Air Force aircraft at Vance Air Force Base, Oklahoma. Hydraulic actuators power various systems and functions in the aircraft such as the landing gear, vertical/horizontal stabilizers and flaps.
In April of 2015, Wes Yui Chew and his company, Icon Telecom, Inc., both of Edmond, Oklahoma, were sentenced for money laundering and making a false statement to the Federal Communications Commission in connection with the federal Lifeline Program that provides wireless service for qualifying low-income customers. In addition to being required to serve 48 months in federal prison, Chew and Icon agreed not to contest the forfeiture of more than $27 million seized during the investigation. Oscar Enrique Perez-Zumaeta, of Cancun, Mexico, who owned and managed PSPS Sales LLC, a California entity that recruited low-income individuals to apply for Lifeline service through Icon, also pled guilty to money laundering and was sentenced to serve 42 months in prison.
In August of 2015, East Central Family Health Center, located in Wetumka, Oklahoma, agreed to pay $825,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims related to behavioral health services furnished to Medicaid patients of non-FQHC health care providers and who were not East Central patients.
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.
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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office/District of New Jersey Collects $102.5 Million in Civil and Criminal Actions in Fiscal Year 2015Read the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman announced today that the District of New Jersey collected $102,476,557 in criminal and civil actions in Fiscal Year 2015. Of this amount, $64,631,183 was collected in criminal actions and $37,845,373 was collected in civil actions.
The District of New Jersey worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $9.27 billion in cases pursued jointly with these offices. Of this amount, $279,806 was collected in criminal actions and $9,265,900,389 was collected in civil actions.
Attorney General Loretta E. Lynch announced today 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.
“Our office is responsible for keeping the public safe from all kinds of abuse, from violent crime to financial exploitation,” U.S. Attorney Fishman said. “As part of that mission, the public servants in our office continue collect far more in fines, penalties, asset forfeiture, restitution and settlements than our operating expenses. Using that money to make crime victims whole, invest in our law enforcement partners and help fund the general treasury is good economics and good for public safety.”
“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 Loretta 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.”
For example, in the District of New Jersey in December 2014, OtisMed Corp. and its former chief executive officer admitted intentionally distributing knee replacement surgery cutting guides after their application for marketing clearance had been rejected by the Food and Drug Administration (FDA), and the corporation agreed to pay more than $80 million to resolve its related criminal and civil liability. The company was fined $34.4 million and ordered to pay $5.16 million in criminal forfeiture. In a separate civil settlement, OtisMed agreed to pay $40 million plus interest to resolve its civil liability.
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.
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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in New Jersey, working with partner agencies and divisions, collected $18,808,153 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.
As a result of criminal and civil asset forfeiture actions prosecuted by the U.S. Attorney’s Office in New Jersey in conjunction with partner agencies and divisions, $18,808,153 was deposited into the Department of Justice and Department of Treasury asset forfeiture funds in FY 2015. Monies from the assets forfeiture funds are returned to victims of financial crimes and used for various law enforcement purposes.
In FY 2015 the U.S. Attorney’s Office in New Jersey also obtained final orders of forfeiture for property that is being held pending sale, including 2,251 pieces of artwork valued at more than $15 million that the government’s complaint alleged was purchased by Philip Rivkin with the proceeds of a fraudulent scheme that sold fake credits for renewable energy. In June, Rivkin pleaded guilty in the Southern District of Texas to mail fraud and a Clean Air Act violation. The forfeited artwork includes works by some of the country’s most influential photographers, including Alfred Stieglitz and Edward Weston. The numerous Stieglitz prints include a waxed palladium print titled “Georgia O’Keeffe,” which Rivkin purchased for $675,000, and numerous prints of Marilyn Monroe.
U.S. Attorney’s Office for the Southern District of Florida Collects $146,171,229.47 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
United State Attorney Ferrer announced today that the Southern District of Florida collected $146,171,229.47 in criminal and civil actions in Fiscal Year 2015. Of this amount, $56,256,636 was collected in criminal actions and $89,914,593.47 was collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $217,282,980.63 in cases pursued jointly with these offices. Of this amount, $15,169.93 was collected in criminal actions and $217,267,811 was collected in civil actions.
Attorney General Loretta E. Lynch announced today 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 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 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 program.
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.
Additionally, the U.S. Attorney’s office in the Southern District of Florida, working with partner agencies and divisions, collected $34,109,303 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.
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.
U.S. Attorney’s Office for the Northern District of Georgia Collects over $ 255 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
ATLANTA – U.S. Attorney John A. Horn announced today that the Northern District of Georgia collected $255,099,419 in criminal and civil actions in Fiscal Year 2015. Of this amount, $12,171,472 was collected in criminal actions and $242,927,947 was collected in civil actions.
Additionally, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $498,040,851 in cases pursued jointly with these offices. Of this amount, $12,708 was collected in criminal actions and $498,028,143 was collected in civil actions. The U.S. Attorney’s Office for the Northern District of Georgia ranks seventh among districts in the country for collections for which it was directly responsible and sixth in the country for overall collections-both direct and shared.
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. 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 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 Loretta 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.”
“As reflected in this year’s collection figures, financial enforcement is an integral part of our office’s efforts to combat fraud and other crimes from every angle,” said U. S. Attorney John Horn. “With the help of partner agencies, we continue to root out efforts to cheat the public and the government and to hold the perpetrators financially accountable.”
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.
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 health, safety, civil rights or environmental laws. For example, over $212 million dollars was recovered by the U.S. Attorney’s Office in a settlement with First Tennessee Bank, N.A. to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration that did not meet applicable requirements. In addition, civil debts were collected on behalf of other federal agencies, including the Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
One of the largest criminal collections for FY2015 was recovered in United States v. Rupert Morgan for theft of government funds from the Social Security Administration and Veterans Administration. Over $213,000 was recovered in the case through garnishment of the defendant’s investment accounts. The United States also recovered over $127,000 for DeKalb County and the World Congress Center in United States v. Cecil Clark, a case involving conspiracy to commit bribery.
Additionally, the Asset Forfeiture section of the U.S. Attorney’s Office, working with partner agencies and divisions, collected $16,979,004.00 in forfeited funds and restored to victims $1,362,679 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney’s Office collects nearly $3.5 million in civil and criminal actions for U.S. taxpayers in fiscal year 2015Read the Press Release
WHEELING, WEST VIRGINIA – Through a combination of civil and criminal actions, the United States Attorney’s Office for the Northern District of West Virginia collected more than $3 million during fiscal year 2015, United States Attorney William J. Ihlenfeld, II, announced.
The office collected $1,511,869.45 from criminal actions, $1,276,920.11 from civil actions, and $625,132 from civil and criminal asset forfeitures for a total of $3,413,921.56. Additionally, the office collaborated with other United States Attorney’s Offices and components of the Department of Justice to collect an additional $4,123,362.19 in civil cases pursued jointly with these offices.
“One critical aspect of enforcing the federal laws is to recover funds for victims of crimes and for taxpayers in our communities,” said Ihlenfeld. “Given its proximity to larger metropolitan areas and easy accessibility, the Northern District of West Virginia is particularly impacted by individuals seeking to operate criminal operations purely for financial gain. We remain committed to holding these individuals accountable.”
United States Attorney General Loretta Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. These collections represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 United States Attorney’s 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 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.
Nationally, 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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office for the Eastern District of Tennessee Collects $ 41,677,882.32 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney William C. Killian announced today that the Eastern District of Tennessee collected $41,677,882.32 in criminal and civil actions in Fiscal Year 2015. Of this amount, $2,268,837.64 was collected in criminal actions and $ 39,409,044.68 was collected in civil actions.
Additionally, the Eastern District of Tennessee worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $795,366.68 in cases pursued jointly with these offices. Of this amount, $531.00 was collected in criminal actions and $794,835.68 was collected in civil actions.
Attorney General Loretta E. Lynch announced on Dec. 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year 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 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
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.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
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,” said Attorney General Loretta 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.”
“Civil and criminal monetary penalties provide additional deterrence to those involved in violating federal laws. The U.S. Attorney’s Office works very hard to insure that taxpayers’ money is collected and returned to the federal coffers. Also, our stringent enforcement of civil and criminal monetary penalties, provide an additional level of punishment for the offenders,” said U.S. Attorney Bill Killian.
This past fiscal year, the Eastern District of Tennessee recovered $38,400,000 as part of a $92,000,000 settlement against Pilot Flying J for the company’s role in a complex rebate fraud scheme. As a civil collection, these funds go into the General Treasury Fund.
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.
Additionally, the U.S. Attorney’s office in the Eastern District of Tennessee, working with partner agencies and divisions, collected $2,493,887.00 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.
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U.S. Attorney’s Office Collects over $1.9 Billion for Taxpayers in 2015Read the Press Release
ALEXANDRIA, Va. – Dana J. Boente, U.S. Attorney for the Eastern District of Virginia (EDVA), announced today that EDVA, working together with other U.S. Attorney’s Offices and components of the Department of Justice, collected $1,941,532,490.62 in cases pursued jointly with these offices in Fiscal Year 2015. Of this amount, $1,803,813.635.20 was collected in criminal actions and $137,718,855.42 was collected in civil actions.
In cases pursued exclusively by EDVA, the office collected $129,711,740.67 in criminal and civil actions for U.S. taxpayers in Fiscal Year 2015. Of the total amount, $120,332,441.23 was collected in criminal actions, and $9,379,299.34 was collected in civil actions.
Attorney General Loretta E. Lynch announced today 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 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 Loretta 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 all of our criminal and civil prosecutions, where appropriate, we strive to collect restitution for the victims of the crime, be that private citizens or the federal government” said U.S. Attorney Boente. “Asset forfeiture, fines, restitution and other means of collections are the Justice Department’s most effective and efficient tools in restoring money to victims of crime and their families.”
In Fiscal Year 2015, EDVA recovered $1.8 billion as part of the settlement in the Credit Suisse case. As part of the plea agreement, Credit Suisse acknowledged that, for decades prior to and through 2009, it operated an illegal cross-border banking business that knowingly and willfully aided and assisted thousands of U.S. clients in opening and maintaining undeclared accounts and concealing their offshore assets and income from the IRS. Credit Suisse further agreed to cooperate in treaty requests for account information, provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed, and to close accounts of account holders who fail to come into compliance with U.S. reporting obligations. Credit Suisse has also agreed to implement programs to ensure its compliance with U.S. laws, including its reporting obligations under the Foreign Account Tax Compliance Act and relevant tax treaties, in all its current and future dealings with U.S. customers. Credit Suisse pleaded guilty on May 19, 2014, and will pay a total of $2.6 billion for their crimes.
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.
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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, EDVA working with partner agencies and divisions, collected $14,233,390 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.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
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U.S. Attorney’s Office Collects $9.2 Million for U.S. Taxpayers in FY 2015Read the Press Release
KANSAS CITY, KAN. – U.S. Attorney Barry Grissom announced today that the District of Kansas collected more than $9.2 million in criminal and civil actions in Fiscal Year 2015. Of this amount, more than $6.2 million was collected in criminal actions and $3 million was collected in civil actions.
Additionally, the District of Kansas worked with other U.S. Attorney’s Offices and components of the Justice Department to collect approximately an additional $402,000 in cases pursued jointly with these offices. Of this amount, approximately $12,000 was collected in criminal actions and $390,000 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year 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 main litigating divisions in that same period.
“Our job is to litigate vigorously and enforce the collection of debts due to the United States and to victims of federal crimes,” U.S. Attorney Barry Grissom said. “We’re working hard to carry out that responsibility.”
For instance, in FY 2015 the District of Kansas entered a settlement for a payment of $700,000 from Hawker Beechcraft Corporation (HBC) in a False Claims Act lawsuit. The payment was to settle allegations that a subcontractor, TECT Aerospace, improperly formed wing spars, including fracture critical parts, for use by HBC, the prime contractor in the manufacture of the Joint Primary Aircraft Trainers (T-6A) for the Air Force and Navy.
“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 Loretta 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 U.S. Attorney’s 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.
The Justice Department’s 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.
Additionally, the U.S. Attorney’s office in the District of Kansas, working with partner agencies and divisions, collected more than $3.7 million 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.
U.S. Attorney’s Office Collects $1,742,830 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that the U.S. Attorney’s Office for the District of Maine collected $1,742,830.04 in criminal and civil actions in Fiscal Year 2015. Of this amount, $880,662.93 was collected in criminal actions and $862,167.11 was collected in civil actions.
Additionally, the District of Maine worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $5,708,677.30 in cases pursued jointly with these offices. Of this amount, $600 was collected in criminal actions and $5,708,077.30 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. 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 Justice Department is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Loretta 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 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.
Nationally, 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 March 2015, the District of Maine recovered $484,744 from Dr. Daniel P. Schecter, a dentist who provided services in Rockport, Maine, to settle claims involving improper billing to MaineCare (Maine’s Medicaid program).The District of Maine, working with partner agencies and divisions, also collected $942,407 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.
U.S. Attorney's Office Collects over $25.5 Million in Criminal, Civil Actions in 2015Read the Press Release
KANSAS CITY, Mo. – United States Attorney Tammy Dickinson announced today that the Western District of Missouri collected more than $25.5 million in criminal and civil actions in Fiscal Year 2015. Of this amount, more than $8.8 million was collected in criminal actions, more than $6 million was collected in civil actions and more than $10.6 million was collected through the seizure of assets that were forfeited to the government from Oct. 1, 2014, to Sept. 30, 2015.
The Western District of Missouri also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $4 million in cases pursued jointly with these offices, primarily in civil actions.
“The pursuit of justice involves not only prosecuting criminals, but being diligent to collect the fines levied by the court and restitution payments on behalf of the victims of crime,” Dickinson said. “I am determined that criminals will not profit from their crimes, and that those involved in civil actions pay the government what they owe.”
Attorney General Loretta E. Lynch also announced today that the Justice Department collected a total of $23.1 billion in civil and criminal actions in FY 2015. The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
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 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 Loretta 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.”
Contraband Cigarette Trafficking
As an example of FY 2015 collections in the Western District of Missouri, TSNE, doing business as Jan’s Smoke Shop, in Bascom, N.Y., paid a total of more than $3.5 million in fine, forfeiture and restitution.
A number of defendants were convicted in a multi-million dollar, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations. Conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Approximately 620,600 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The benefit to those smoke shops was that they did not pay New York state cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers by over $40 per carton. The total state excise tax lost to the state of New York was more than $8 million, which has been paid in restitution to the state by the perpetrators of the scheme.
Jan’s Smoke Shop is a gas station and convenience store recognized by the Tonawanda Seneca Nation. TSNE paid a fine of $950,000 and restitution of $1,900,080 to the state of New York. TSNE also forfeited $700,650 to the government. As a result of this investigation, Keith Donald Stoldt of Cowlesville, N.Y., who operated the Totem Smoke Shop located on the Tonawanda Seneca Indian Reservation, also forfeited $247,080 to the government in FY 2014. Craig Sheffler of Independence, Mo., owner of Cheap Tobacco Wholesale, forfeited $599,206 to the government. Gholamreza Tadaiyon of Weston, Fla., forfeited $448,189 to the government.
Mercy Health Springfield Communities
Two southwest Missouri health care providers paid $5.5 million to settle allegations that they violated the False Claims Act by engaging in improper financial relationships with referring physicians. The two providers are Mercy Health Springfield Communities (formerly known as St. John’s Health System Inc.), which owns and operates a hospital in Springfield, Mo., and its affiliate, Mercy Clinic Springfield Communities (formerly known as St. John’s Clinic), which operates health care facilities in southwest Missouri.
The settlement resolved allegations that the providers submitted false claims to the Medicare program for services rendered to patients referred by physicians who received bonuses based on a formula that improperly took into account the value of the physicians’ referrals of patients to the clinic. Federal law restricts the financial relationships that hospitals and clinics may have with doctors who refer patients to them.
Joplin Oncologist Dispenses Foreign, Misbranded Drugs
Robert L. Carter, 74, of Carthage, Mo., an oncologist who operated a clinic in Joplin, Mo., paid more than $2.1 million in restitution and asset forfeiture after being convicted of dispensing foreign, misbranded drugs to his cancer patients.
Carter, who forfeited $971,854 to the government in FY2014, previously had paid $971,854 in restitution to Medicare, Tri-Care, Missouri Medicaid, Oklahoma Medicaid and Kansas Medicaid. Carter previously had paid $228,145 of the forfeiture judgment.
Carter was the president and medical practitioner of Robert L. Carter, M.D., in Joplin, from Oct. 23, 1991, to April 2, 2012. As a medical oncologist, Carter provided care and treatment for patients with cancer and blood diseases. The practice purchased prescription drugs, including chemotherapy drugs, which were prescribed by Carter and were administered and dispensed through the practice. Reimbursement for the drugs and their administration was sought from the Medicare and Medicaid programs, Tricare as well as other private health care benefit programs. In April 2010, Carter began ordering prescription cancer drugs from Quality Specialty Products (QSP) in Winnipeg, Manitoba, Canada. QSP sold drugs – which had been obtained from foreign sources and which had not been approved by the U.S. Food and Drug Administration for distribution or use in the United States – to physicians and other health care providers in the United States.
Employee Embezzlement
Donna M. Preszler, 61, formerly of Chillicothe, Mo., paid $420,017 in restitution in FY 2014 to her former employer, Burdg, Dunham & Associates Construction Corp. She and her husband, Terrance W. Preszler, 64, were convicted on charges involving her embezzlement of nearly $4 million from her employer and for the couple jointly filing a false income tax return not claiming the income from the wire fraud scheme.
Donna Preszler was sentenced to five years and 10 months in federal prison without parole. Terrance Preszler was sentenced to three years in federal prison without parole, which is the statutory maximum. The court also ordered the Preszlers to pay $4,049,121 in restitution to Burdg, Dunham & Associates Construction Corp. and $1,236,690 in restitution to the Internal Revenue Service, for a total restitution amount of $5,285,811. The court also ordered the Preszlers to forfeit to the government a money judgment of $3,912,000, two residential lots, two 14kt diamond rings, eight vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank and funeral trust accounts.
Elected Prosecutor Embezzlement
Richard F. Turner, 39, a Bethany, Mo., attorney paid $193,769 in restitution after stealing more than $540,000 from an elderly client. Turner is the former elected county prosecutor of Harrison County, Mo., and was re-elected to that office a few weeks before his guilty plea.
Turner admitted that from October 12, 2004 to May 29, 2014, he fraudulently attempted to obtain at least $728,147.18, and he did obtain at least $540,803.86, from an elderly client. He spent the money on personal expenses, including paying off his home mortgage, putting in a swimming pool, and spending heavily at retail establishments and restaurants in Bethany, St. Joseph, and Kansas City, Mo., including to support his clothing store, Richard’s / TD Clothiers, in Bethany. Turner further admitted that he failed to pay taxes on the embezzled income, causing additional loss to the state and federal government of at least approximately $154,453.
Consumer Fraud
Dataline Technologies, Inc., a Springfield telemarketing company that sold ink cartridges to customers across the United States over the telephone, paid $398,000 in restitution to hundreds of victims. Dataline, which was owned and operated by Richard Morsovillo, is no longer in business. Dataline pleaded guilty to defrauding its customers by inducing them to purchase ink cartridges through false representations and promises.
Collection Amounts
The Western District of Missouri collected $26,575,724 in criminal and civil actions in FY 2015. Of this amount, $14,823,396 was collected in criminal actions (such as fines and victim restitution), $6,283,214 was collected in civil actions, and $5,469,114 was collected in asset forfeiture actions.
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.
U.S. Attorney's Office Collects over $2.8 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
TULSA, Okla.—United States Attorney Danny C. Williams Sr. announced today that the Northern District of Oklahoma collected $2,836,307 in criminal and civil actions in fiscal year (FY) ending September 30, 2015. Of this amount, $1,260,991 was collected in criminal actions and $1,575,316 was collected in civil actions. Additionally, the Northern District of Oklahoma worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $500,599 in cases pursued jointly with these offices.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in FY 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 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 Loretta 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 Northern District has yielded over $2.8 million in litigated matters and $1.9 million in asset forfeitures,” said U.S. Attorney Williams. “The district’s dedicated staff in the Financial Litigation Unit and Asset Forfeiture division are committed to protecting Northern District citizens, and delivering a valuable return to the taxpayer and to victims of federal crime.”
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.
Additionally, the U.S. Attorney’s office in the Northern District working with partner agencies and divisions, collected $1,908,702 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.
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U.S. Attorney's Office Collects over $10 Million in Civil and Criminal Actions for U.S. TaxpayersRead the Press Release
HONOLULU –U.S. Attorney Florence T. Nakakuni announced today that the District of Hawaii collected over $7.8 million in criminal and civil actions in Fiscal Year 2015. Of this amount, approximately $7.7 million was collected in criminal actions. Additionally, her office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2.3 million in civil actions pursued jointly with these offices.
Attorney General Loretta E. Lynch previously announced today 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 January 2015, for example, the District of Hawaii recovered $1 million from Matson Terminals, Inc. as a result of convictions on two criminal charges relating to the unauthorized discharge of approximately 233,000 gallons of molasses into Honolulu Harbor in September 2013. The $1 million consisted of a $400,000 fine and $600,000 in restitution, the latter divided equally between the Waikiki Aquarium to support Coral Programs and Invasive Algae Clean-ups and Sustainable Coastlines Hawaii to inspire local communities to care for coastlines through beach clean-ups.
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.
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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney's Office Collects $24,148,463 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
St. Louis, MO – Assistant United States Attorney Nicholas Llewellyn, Chief of the Civil Division, announced today that the Eastern District of Missouri collected $16,191,458 in criminal and civil actions in fiscal year 2015. Of this amount, $6,027,224 was collected in criminal actions and $10,164,234 was collected in civil actions.
Additionally, the Eastern District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,957,005 in cases pursued jointly with these offices. Of this amount, $33,334 was collected in criminal actions and $7,923,670 was collected in civil actions.
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 September 30, 2015. The more than $23.1 billion in collections in FY 2015 represents nearly seven and a half times the approximately $2.93 billion of the Justice Department's combined appropriations for the 94 U.S. Attorney's 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 Loretta 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 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.
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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in the Eastern District of Missouri, working with partner agencies and divisions, collected $7,543,204 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.
U.S. Attorney Attends White House Summit Entitled “A Cycle of Incarceration” on the Disproportionate Impact on the Poor of High Fines and Fees in the Criminal Justice SystemRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner is pleased to be in attendance at a summit today hosted by the White House and the Department of Justice in Washington, D.C. called “A Cycle of Incarceration: Prison, Debt and Bail Practices.” This event was designed to bring public attention to the disproportionate impact that high fines and fees in the criminal justice system have on the poor. The White House Council of Economic Advisers also released an issue brief exploring the economic inefficiency of fines, fees and bail in particular situations as well as the disproportionate impact such sanctions can have on the poor.
U.S. Attorney Wagner stated, “The inability of many poor people to pay high fines, fees and bail for minor infractions can have disastrous consequences both for them and for society. For individuals, it can result in the loss of a driver's license, the loss of a job, increasing debt, incarceration and a criminal record. For society, it can lead to costly incarceration of many indigent persons for minor offenses. This conference is focused on identifying and reforming the complex web of practices within the criminal justice system that can trap the poor in a cycle of noncompliance and punishment, in order to create a fairer and more efficient justice system.”
Today’s event follows an event the Justice Department hosted on Wednesday that addressed the effect and fairness of fees and fines. The department convened judges, academics and practitioners to develop a research and policy agenda that will inform jurisdictions in their efforts to reform court practices.
Participants in the conference heard from judges, court administrators, academics, experts and others about the impact of excessive fines and fees in minor cases, and various efforts to reform justice systems, including in California. Three citizens described years of entanglement with the justice systems of Alabama, Michigan and Missouri, including suspended drivers licenses, lost jobs, incarceration and homelessness, all originating from unpaid fines for minor infractions.
Additional information about this issue can be found at http://go.usa.gov/cBahC.
U.S. Attorney Announces Office Collects over $7 MillionRead the Press Release
BOISE – United States Attorney Wendy J. Olson announced today that her office's Financial Litigation Unit collected more than $4.9 million in civil debts and in criminal fines, assessments, and restitution for the fiscal year that ended September 30, 2015. U.S. Attorney Olson stated that the Financial Litigation Unit collected $2,504,945 in criminal fines, assessments, and restitution, and $2,427,383 in civil debts. In addition, the Asset Forfeiture Unit collected approximately $2.3 million representing proceeds and instruments of crime in both criminal and civil forfeitures.
“The more than $7.2 million our staff collected through civil debts, asset forfeiture, fines, assessments and restitution exceeds the U.S. Attorney's Office's annual operational budget,” said Olson. “Our collection and asset forfeiture staffs of attorneys, paralegals, analysts and fiscal agents ensure that those who owe the federal government money as a result of litigation in this district or as a result of longtime debt, such as student loans, make appropriate payments. They also ensure that those who have profited from committing crimes in the District of Idaho are deprived of the proceeds and tools of their crimes. This year, all of these dedicated individuals have done outstanding work and served this office, taxpayers and the federal government well.”
The Financial Litigation Unit collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted student loans and defaulted federally financed mortgages, working with debtors to arrange viable payment plans. During fiscal year 2015, the office collected over $2.4 million in civil debt. Of that, the office collected $1.5 million from EPA violations concerning release of hazardous substances. This includes payments from Hecla Mining Company, P4 Production, and Clearwater Paper Corp.
In addition, the U.S. Attorney’s Office collected approximately $70,333 in defaulted student loans and $293,000 in fire suppression costs for human-caused fires.
From convicted criminals, the U.S. Attorney's Office collects fines, assessments, restitution, and asset forfeitures. Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2015, the U.S. Attorney's Office collected over $2.5 million in criminal restitution that was distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal fine collections include: the collection of Randal Watson’s criminal fine of $25,000 associated with a drug offense; the collection of $50,000 from Owyhee Construction related to a fine for EPA clean-up costs; and the collection of $100,000 from Jeremy DeLuca as payment of a criminal fine related to misbranding of products at bodybuilding.com in 2008-2009. In addition, funds were collected for crime victims, such as $25,500 from Melody Redondo related to mortgage fraud; $12,275 from Richard Zaranek related to embezzlement from a school district; and $17,452 from Robert Holloway related to bank robbery. Through the Treasury Offset program, the office collected $11,586 from Aaron Hymas related to mortgage fraud.
Notable recoveries of the proceeds of crime through asset forfeiture include two drug cases involving the illegal trafficking and sale of analogues (synthetic marijuana) and drug paraphernalia in Boise, Nampa, Twin Falls and Pocatello. Approximately $1.3 million in drug trafficking proceeds were recovered in these cases.
Two Cousins Collectively Sentenced to More Than 300 Months for Family Dollar RobberyRead the Press Release
Memphis, TN – Two cousins have been collectively sentenced to more than 300 months in federal prison for armed robbery of a Family Dollar Store in Cordova. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
According to information presented in court, on April 24, 2014, Cortez Strickland, 27, and his cousin, Corney Sanders, 28, both of Memphis, robbed a Family Dollar Store on North Germantown Parkway with a .45 caliber pistol. The defendants entered the store together; Strickland was armed with the handgun. Strickland reportedly pointed the gun at a store clerk, while Sanders made threats and demanded money from the safe and cash register. After placing money from the register in a bag, the two defendants fled the scene on foot.
Law enforcement officials were notified of the robbery and went to the scene. Witnesses told the officers that they recognized the defendants. Officers were able to determine the perpetrators’ identities and located them at a home near the Family Dollar. Officers also recovered proceeds from the robbery and the handgun used in the crime.
Both defendants pled guilty to one count of robbery affecting interstate commerce and one count of use of a firearm during a crime of violence.
On October 20, 2015, Sanders was sentenced by U.S. District Judge Sheryl H. Lipman to serve 105 months in federal prison.
On December 2, 2015, Judge Lipman sentenced Strickland to serve 212 months in federal prison.
This investigation was conducted by the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force, a collective comprised of federal, state, and local law enforcement personnel. The Memphis Police Department investigated this case on behalf of the Safe Streets Task Force.
Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.
Tribal Roads Branch Director Given over Three Years in Prison for Role in Rocky Boy's Corruption SchemeRead the Press Release
GREAT FALLS – The former Director of the Chippewa Cree Tribe Roads Branch was sentenced to 38 months in federal custody today for taking bribes from contractors. U.S. District Judge Brian Morris sentenced Timothy Warren Rosette, 52, of Box Elder, in connection with his earlier guilty pleas to two counts of bribery and one count of theft from an Indian tribal organization, to serve two years of supervised release and pay $600,000 in restitution to the Tribe.
At Rosette’s guilty plea in July 2015, the prosecution told the Court that Rosette served as the Director of the Roads Division, with the authority to select contractors, award contracts, and approve contract payments relating to the Roads Division’s operations. Rosette also served as the Director of the Rocky Boy Health Clinic’s Environmental Health Unit, and in this role had authority to select contractors, award contracts and approve contract payments relating to the tribe’s community water supply (lagoons, pipes, sewers, storm drains, etc.).
In October 2009 a contractor called Hunter Burns Construction, LLC, (HBC), which was a business owned and controlled by Rocky Boy’s area contractor Hunter Burns and Dr. James Eastlick, a clinical psychologist at the Rocky Boy Health Clinic, purchased $6,219.57 worth of furniture for Rosette which was delivered in November 2009. On October 14, 2009, HBC deposited $18,600 from the Clinic for a construction contract. The furniture purchase occurred five days after the deposit from the health clinic.
In November 2011, Rosette, Eastlick, and Tribal Vice-Chairman John Chance Houle agreed to inflate a contractual payment from the Clinic to HBC for a sum of $20,000. The HBC invoice dated November 28, 2011, indicated that the payment was an increase to an original invoice for transportation of “bio-hazard material.” On November 28, 2011, a Clinic requisition was signed by Rosette and a $20,000 check was issued. When interviewed, Rosette admitted the $20,000 given to HBC in this transaction was fraudulent. Rosette also admitted to receiving $2,000 in cash from Eastlick on behalf of HBC for completing this transaction.
Between August of 2009 and January of 2013, Eastlick and HBC made hundreds of cash payments to Rosette in relation to HBC construction and trucking contracts, many of them on a per truck load, per day basis. The last known gratuity made to Rosette by Eastlick and HBC took the form of an expense-paid trip to Las Vegas, Nevada, for Rosette and five of his family members in December 2011. Eastlick and HBC covered the cost of airfare and hotels for Rosette and his family members during this Las Vegas trip.
Between August 2009 and January 2013, payments from the Clinic to HBC totaled $831,475.50. Between August 2010 and July 2013, payments from the Chippewa Cree Tribe’s Roads Division to HBC totaled $690,798.59.
There came a time during this period when HBC was unable to handle all of the trucking work required by the Roads Branch, as the Tribe attempted to make infrastructure repairs after the 2010 floods and complete American Recovery and Reinvestment Act (ARRA) projects on the reservation. HBC was also a subcontractor on the Tiber Project, and therefore, had commitments of equipment and labor on that project as well.
Shad Huston, a Havre businessman, controlled, either exclusively or jointly, several companies that did business with the Chippewa Cree Tribe. In July 2010, Huston became the business manager for K Bar K Trucking (K-K Trucking). Eastlick enlisted Huston to assist in the trucking business with the Tribe and Huston then secured sole-source hauling contracts with the Roads Division. Like Eastlick, Huston paid Rosette cash kick-backs on a per truck per day basis. Investigators identified in excess of $111,000 in cash withdrawals from the K-K bank account. Between July 2010 and July 2012, K-K Trucking was paid approximately $833,000 from the Roads Division. Rosette admitted to investigators that he accepted cash payments and property from Huston. Huston advised an associate inquiring about the inflated amount of the trucking invoices that the increased amount was necessary to “pay a tax” to tribal officials.
In October 2011 Rosette approved for payment two false invoices from “KN Trucking,” totaling $120,000, knowing that KN Trucking had not performed the work itemized on the invoices. A tribal payment of $120,000 was actually issued to Huston’s company, K&N Consulting. The $120,000 payment was the first deposit into the newly created K&N Consulting bank account at Independence Bank. Rosette, Huston, and Eastlick all admitted to investigators that this claim was entirely fraudulent and designed only to extract money from the tribe. The investigation determined that K&N Consulting was providing claim service consultation to the Tribe with respect to their insurance claim from the 2010 floods, as well as the Tribe’s claims filed with FEMA. Investigators identified in excess of $99,000 in cash withdrawals from the K&N bank account.
The prosecutors told the Court that in March of 2012, Huston paid a $3,000 down payment at Tilleman Motor towards Rosette’s personal purchase of a new Suburban. Other property Rosette received from Huston consisted of a ring, a pair of diamond earrings, and a saddle, all merchandise provided through Leon’s Buy and Sell pawn shop in Havre.
TMP Services was another Huston business; this one established to obtain tribal contracts to provide storage for property after the flood (medical equipment, windows, furniture, etc.). Basically TMP Services was a collection of storage containers. TMP Services did business with the Chippewa Cree Construction Corporation (CCCC) and received over $372,000 in contract payments.
In the summer of 2012, TMP Services submitted a $30,000 invoice for “consulting services” to the CCCC for services provided to the Roads Branch. Investigators recognized the transaction as suspicious because the construction corporation would not, legitimately, be paying the expenses of the Roads Branch as they are entirely separate entities with separate financial interests. The investigation revealed that the invoice was indeed fraudulent and that no consulting services were provided. The invoice was designed to extract tribal monies for the personal benefit of Huston and Rosette. Rosette, as a member of the Board of Directors for the construction corporation, signed off on the check for $30,000. The check was also signed by Sunchild. Investigators also identified—and Rosette confirmed—that Rosette received two check payments from TMP Services totaling $7,500 and three check payments from Huston Leasing totaling $8,000. Investigators also identified in excess of $28,000 in cash withdrawals from the Huston Leasing bank account.
There is no parole in the federal system. Rosette will have to serve the entirety of the sentence less credit for good behavior which cannot exceed 15% of the sentence imposed.
The case was investigated by agents of the Guardians Project, including agents from the Offices of Inspector General for Departments of Interior and Health & Human Services, EPA, and the Criminal Investigations Division of the Internal Revenue Service.
Three Charged in Manhattan Federal Court with December 2014 Fatal Shooting in Manhattan and Eleven Charged with Firearms and Drug Charges from Drug Trade Between New York and VermontRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Delano A. Reid, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced charges against three individuals for the December 28, 2014, murder of Rashaun Nicholson, which occurred in Lower Manhattan. Specifically, CORY HARRIS, a/k/a “Hop,” a/k/a “P,” FRANK JENKINS, a/k/a “Frizz” and RAHEEM MALDONADO, were charged with participating in a conspiracy to commit murder for hire; murder for hire; and murder in connection with a narcotics trafficking conspiracy. In addition, HARRIS, JENKINS, and MALDONADO, along with eight others, were charged with participating in a conspiracy to transport large quantities of crack cocaine and heroin from locations in New York City, to Bennington, Vermont, for resale in Bennington. Eight of the defendants, including HARRIS, JENKINS and MALDONADO, were also charged with possessing and using firearms in connection with the narcotics trafficking offense. All 11 defendants were previously taken into custody on charges contained in a previous indictment. The 11 defendants charged in the Superseding Indictment will be arraigned in Manhattan federal court today at 4:30 p.m.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants not only fueled drug addiction and violence in Manhattan and the Bronx, but spread it to small towns and communities outside of New York, like Bennington, Vermont. The defendants did everything in their power, including allegedly using deadly violence, to protect their interests. Thanks to the dedicated investigators of the ATF and the NYPD, these alleged criminals are now off the street.”
ATF Special Agent in Charge Delano A. Reid said: “As has been evidenced in this case, an investigation – when conducted in a thorough and logical manner – can take a considerable amount of time and effort before all of its layers are ultimately revealed. The exhaustive pursuit for the truth by the investigators and prosecutors involved has uncovered yet another alleged crime perpetrated by Harris et al. I hope that this serves as a clear illustration to the criminal element that law enforcement will enthusiastically pursue all leads until all illegal activities are uncovered and all those responsible be deprived of their freedom.”
Police Commissioner William J. Bratton said: “The litany of charges alleged against these individuals demonstrates an ongoing and flagrant disregard for the law. I commend the NYPD investigators and our federal partners for disrupting this violent criminal operation; one that potentially extended well beyond New York and would have put countless innocent people in harm’s way.”
As alleged in the Superseding Indictment and in other documents previously filed in Manhattan federal court[1]:
On December 28, 2014, in connection with a narcotics trafficking offense, FRANK JENKINS, in exchange for a payment from CORY HARRIS and RAHEEM MALDONADO, shot and killed Rashaun Nicholson in the vicinity of 78 Catherine Street, New York, New York.
In addition, from at least in or about 2014, up to and including in or about 2015, CORY HARRIS, 31, DANIEL HERRING, 25, FRANK JENKINS, JR., 21, JARON LANGHORNE, 20, MITCHELL MALDONADO, 24, RAHEEM MALDONADO, 23, UNIQUE NEWELL, 22, ADAM PHILLIPS, 32, KRYSTAL PINSONNEAULT, 32, MIGUEL ROBLES, 31, and LUIS ZABALA, 31, conspired to sell controlled substances, including crack cocaine and heroin, in Vermont and elsewhere. Specifically, the Indictment charges (1) HARRIS, HERRING, JENKINS, LANGHORNE, MITCHELL MALDONADO, RAHEEM MALDONADO, NEWELL, and ZABALA with conspiring to distribute at least 280 grams of crack cocaine, and at least 100 grams of heroin; (2) MIGUEL ROBLES with conspiring to distribute at least 100 grams of heroin; (3) PHILLIPS with conspiring to distribute at least 280 grams of crack cocaine; and (4) PINSONNELAULT with conspiring to distribute mixtures and substances containing crack cocaine and heroin. HARRIS, HERRING, JENKINS, LANGHORNE, MITCHELL MALDONADO, RAHEEM MALDONADO, NEWELL, and ZABALA are charged with using and possessing firearms between 2014 and 2015, in furtherance of the narcotics trafficking conspiracy. HARRIS is also charged with using firearms in April 2012 in furtherance of a separate marijuana trafficking conspiracy.
During the time period charged in the Indictment, members of the conspiracy obtained crack and heroin from locations in New York City, including Manhattan and the Bronx, and then transported the crack and heroin to Vermont, for distribution in and around Bennington, Vermont. The members of the conspiracy sold crack and heroin from private apartments and certain motels in the Bennington area. Many of the members of the conspiracy used firearms in connection with their narcotics trafficking.
Members of the conspiracy also provided heroin, crack, and other controlled substances to certain women in and around Bennington, who were addicted, or became addicted, to those controlled substances. These women assisted members of the conspiracy with the transportation, storage, and distribution of crack and heroin in exchange for additional controlled substances, or in exchange for cash that the women used, in part, to purchase additional controlled substances.
* * *
Apart from PINSONNEAULT, all of the defendants face mandatory minimum prison terms ranging from five years to 35 years, and maximum prison terms ranging from 40 years to life. PINSONNEAULT faces a maximum term of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
A chart containing the names of the defendants, and the charges and maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York City Police Department, the United States Marshals, the Vermont State Police, and the Bennington Police Department. Mr. Bharara also thanked the United States Attorney’s Office for District of Vermont for assisting his Office at all stages of the investigation.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Michael Gerber and Hadassa Waxman 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.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Conspiracy to distribute and possess with intent to distribute 280 grams and more of crack cocaine, and 100 grams and more of heroin.
CORY HARRIS, DANIEL HERRING, FRANK JENKINS JR., JARON LANGHORNE, MITCHELL MADONADO, RAHEEM MALDONADO, UNIQUE NEWELL, and LUIS ZABALA
Life in prison
Mandatory minimum: 10 years in prison
Conspiracy to distribute and possess with intent to distribute 100 grams and more of heroin
MIGUEL ROBLES.
Life in prison
Mandatory minimum: 5 years in prison
Conspiracy to distribute and possess with intent to distribute 280 grams and more of crack cocaine
ADAM PHILLIPS
Life in prison
Mandatory minimum: 10 years in prison
Conspiracy to distribute and possess with intent to distribute crack cocaine and heroin
KRYSTAL PINSONNEAULT
20 years in prison
Possession of a firearm in furtherance of a narcotics trafficking offense
CORY HARRIS (2 counts), DANIEL HERRING, FRANK JENKINS JR., JARON LANGHORNE, MITCHELL MADONADO, RAHEEM MALDONADO, UNIQUE NEWELL, and LUIS ZABALA
Life in prison
Mandatory minimum: 5 years in prison, to be imposed consecutively to any other sentence
Conspiracy to commit murder for hire, and murder for hire
CORY HARRIS, FRANK JENKINS, and RAHEEM MALDONADO
Mandatory life in prison
Discharging a firearm in furtherance of a narcotics trafficking offense resulting in death
CORY HARRIS, FRANK JENKINS, and RAHEEM MALDONADO
Life in prison
Mandatory 25 years in prison
Murder in furtherance of a narcotics trafficking offense
CORY HARRIS, FRANK JENKINS, and RAHEEM MALDONADO
Life in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
The District of South Carolina U.S. Attorney’s Office Collects $7,089,479.89 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015 and another $41,807,765 in civil matters worked with other Justice Department ComponentsRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
Columbia, South Carolina- U.S. Attorney Bill Nettles announced today that the District of South Carolina collected $7,089,479.89 in criminal and civil actions in Fiscal Year 2015. Of this amount, $4,436,041.94 was collected in criminal actions and $2,653,437.95 was collected in civil actions.
Additionally, the District of South Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $41,807,765.09 in cases pursued jointly with these offices. This entire amount was collected in civil actions.
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 of 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 Loretta 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.”
United States Attorney Bill Nettles said, “Our office has made a substantial commitment to combatting fraud and collecting funds improperly procured. Our commitment, including 10 full time lawyers and investigators, has made this district one of the leaders in combatting government fraud. We hope that businesses and individuals who commit fraud recognize that the consequences of fraud are more than just the cost of doing business.”
An example of one of these cases, is a prime contractor at the Savannah River Site who paid the government $3.8 million to settle claims that it overcharged taxpayers for a project on the nuclear weapons complex near Aiken, South Carolina. The government contended Parsons Government Services committed a number of False Claims Act violations in its administration of per diem and relocation costs at the Savanah River Site. The allegations included knowingly allowing employees that were going to be relocated to collect per diem rather than relocate them immediately. This practice greatly increased the cost of per diem to the Government and the settlement will hopefully serve as a deterrent to other Department of Energy contractors.
A few weeks ago, the District of South Carolina recovered another $2,000,000 in the settlement of a whistleblower case brought against HCA, a large hospital chain. The whistleblower and United States contended that four hospitals, all located in Florida, submitted claims for lab tests that were not ordered and/or not medically necessary and also billed for fetal biophysical profiles with non-stress tests and also billed for standalone non-stress tests thereby double billing the non-stress tests.
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.
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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney's Office in the District of South Carolina, working with partner agencies and divisions, collected $24,776,354.00 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.
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The District of Nebraska U.S. Attorney’s Office Collects $2,133,876.67 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
U.S. Attorney Deborah R. Gilg announced today that the District of Nebraska collected $2,133,876.67 in criminal and civil actions in Fiscal Year 2015. Of this amount, $1,931,940.95 was collected in criminal actions and $201,935.72 was collected in civil actions.
Additionally, Nebraska worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $267,923.76 in cases pursued jointly with these offices. Of this amount, $19,525.76 was collected in criminal actions and $248,398.00 was collected in civil actions.
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.
U.S. Attorney Deb Gilg praised the efforts of the Assistant U.S. Attorney’s and contributing agencies for these successes. “It is our responsibility to enforce these collections and to assist in the restitution efforts of crime victims”, said Ms. Gilg.
For example, in fiscal year 2015, the District of Nebraska collected a single recovery of $205,428.80 in a case involving criminal fraud perpetrated against the Social Security Administration. It is the U.S. Attorneys’ Offices, along with the department’s litigating divisions, that 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 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 Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Nebraska, working with partner agencies and divisions, collected $1,282,010.00 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.
Texas man sentenced to 30 years in prison for attempting to make a sexually explicit video of a minorRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Texas man was sentenced Wednesday to 360 months in prison for attempting to use a child to make a sexually explicit video and attempting to persuade the child’s mother to allow him to sexually exploit the child.
Mark Anthony Thompson, 49, of Richmond, Texas, was sentenced by U.S District Judge Patricia Minaldi on one count of attempting to use a child to produce child pornography and one count of attempting to entice a minor to engage in criminal sexual activity. He was also sentenced to 10 years of supervised release, which includes sex offender monitoring and is required to register as a sex offender. Evidence presented during the four-day trial revealed that Thompson persuaded a Louisiana mother to use her child to produce a sexually explicit video. Thompson also tried to sexually exploit the child. In December of 2013, the victim’s father found disturbing messages, pictures and a video sent from the defendant to the wife’s phone. The father then reported the matter to the DeRidder Police Department.
Homeland Security Investigations, the DeRidder Police Department, Louisiana State Police and the Louisiana Department of Social Services conducted the investigation. Assistant U.S. Attorneys Myers P. Namie and John Luke Walker prosecuted the case.
“This case is disturbing in many ways, but it is also an example of how continued exploitation of children can be stopped,” Finley stated. “I want to encourage all victims of sexual abuse to speak up and know that there is help. We will continue to prosecute these cases and never take exploitation of children lightly. I want to thank the prosecutors and the state, local and federal law enforcement officers who worked diligently to ensure that justice was served in this case. ”
“Child sexual abuse is one of the most heinous crimes HSI investigates as it steals the innocence of children and leaves lasting scars on victims,” said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. “Criminals who prey on children will continue to be one of the agency’s highest priorities in order to protect the innocent from these terrible crimes.”
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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 U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application (http://www.ice.gov/predator/smartphone-app). Tips also may be submitted anonymously.
Ten Individuals Indicted for Conspiracy to Commit Federal Programs Bribery, Honest Services Wire Fraud and ExtortionRead the Press Release
Ten Puerto Rico businessmen and government officials have been indicted for their alleged participation in several schemes to corruptly give things of value to public officials within the government of the Commonwealth of Puerto Rico in exchange for favorable treatment and awarding of government contracts to various corporations. The 25-count indictment includes charges of conspiracy to commit federal programs bribery and honest services wire fraud, wire fraud, federal program bribery, extortion through fear of economic harm, money laundering, false declarations before a grand jury and obstruction of justice, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The FBI is in charge of the investigation.
A federal grand jury in the District of Puerto Rico returned the indictment on Dec. 2, 2015, which includes 25 charges against the following individuals:
- 1.Anaudi Hernández Pérez, businessman and political fund raiser. Although not named in official corporate records, he exercised de facto control over numerous companies doing business with agencies and public corporations of the Commonwealth of Puerto Rico.
- 2.Sally López Martínez, administrator of the Commonwealth of Puerto Rico’s Administración de Desarrollo Laboral (Workforce Development Administration, hereinafter ADL).
- 3.Sonia M. Barreto Colón, purchasing director of the Commonwealth of Puerto Rico’s Autoridad de Acueductos y Alcantarillados (Puerto Rico Aqueduct and Sewer Authority, hereinafter AAA).
- 4.Ivonne M. Falcón Nieves, vice president of AAA. Prior to her position as vice president, Ivonne M. Falcón Nieves served as treasurer of AAA.
- 5.Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic) & Training Group Inc. to secure contracts from the Commonwealth of Puerto Rico.
- Carlos F. Luna Cruz, businessman. Worked for JM Profesional (sic) & Training Group Inc.
- Xavier González Calderón, Administrator for the House of Representatives of the Commonwealth of Puerto Rico.
- Victor R. Burgos Cotto, Director of Technology for the House of Representatives.
- Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves.
10. Glenn O. Rivera Pizarro, special assistant for administration at the House of Representatives of Puerto Rico.
According to the indictment, Hernández Pérez utilized his political and personal connections with high ranking members of the current government in order to have “his people” appointed in critical government positions within the new administration which took over after the November 2012 elections. He also provided those individuals with things of value in exchange for government contracts, benefits and preferential treatment for several of his corporations. The indictment focuses on benefits Hernández Pérez, his co-conspirators and corporate entities, obtained from the Commonwealth of Puerto Rico’s ADL, the Commonwealth of Puerto Rico’s AAA and the Puerto Rico House of Representatives. The three schemes detailed in the indictment essentially followed the same modus operandi.
The indictment alleges that beginning in or about late 2012 and continuing in or about early 2013, Hernández Pérez and several unindicted co-conspirators formalized their plans to obtain government contracts with numerous governmental entities. Hernández Pérez utilized his personal friendship with Person B (brother of the governor of Puerto Rico, identified as Person A in the indictment), and the good will generated by his substantial fundraising activities during the 2012 election cycle, to position himself to successfully make recommendations on behalf of individuals seeking government appointments and employment after the election.
Hernández Pérez received numerous emails and resumes from individuals seeking his assistance in obtaining positions within the newly elected government. Hernández Pérez, in turn, forwarded many of those emails to government officials, and to the governor’s brother, Person B. Many of these individuals ultimately received government employment. Hernández Pérez and his co-conspirators then set out to form and make alliances with various corporations and limited liability companies that would be used to obtain government contracts, proposals and purchase orders. These companies included: 3 Comm Global Inc., Links Group LLC, EKO Technologies LLC, JM Profesional (sic) & Training Group Inc. and Waffler Avenue LLC. Some of these corporations were formed immediately prior to, or after, the general elections of November 2012.
Hernández Pérez and his co-conspirators were careful to ensure that his name did not appear on any official documentation regarding the formation of the corporations, or on any formal request for government contracts, proposals or purchase orders. Hernández Pérez, however, was present in numerous meetings where the proposals were discussed, was included in internal electronic and oral communications regarding these matters, and received payment from the contracts into corporate bank accounts and other suspicious transactions.
Many of the individuals recommended by Hernández Pérez whom obtained the jobs, ultimately had the authority to approve or authorize contracts, purchase orders, and other financial obligations on behalf of their respective agencies, departments or public corporations, and in return for the recommendations for employment, and/or other things of value, authorized contracts, purchase orders, proposals and payments on behalf of the co-conspirators and their corporations.
Hernández Pérez and his co-conspirators offered and gave, and the public officials solicited and accepted from Hernández Pérez and his co-conspirators, things of value, including expensive meals, personal gifts, expensive fountain pens, purses, bags, concert tickets and the payment of certain accrued debts. Hernández Pérez allegedly kept written electronic records regarding the purpose of his government related business meetings, and the things of value provided to each of these individuals.
Hernández Pérez and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, in that they: a) received preferred opportunities on certain government “request for proposals” (RFPs); b) received guidance from agency employees on the proper format and content of proposals and bids for government contracts; c) had access to speak and meet with critical employees in decision making positions within the agencies, departments and government corporations; d) received guidance on how to structure bids and proposals in order to avoid the formal bidding process required by law; e) demanded and were provided with explanations from agency employees when their proposals or bids were not selected.
Once awarded the government contracts, Hernández Pérez and his co-conspirators would utilize, often without proper contractual authority, subcontractors who would perform the work defined in the contracts. On many occasions, Hernández Pérez and his co-conspirators provided substandard work on their contractual obligations in that they: failed to make the required payments to suppliers, subcontractors and creditors; failed to abide by the terms of the contract regarding performance results/follow up as required under the contract; failed to competently provide the services they were contracted to perform.
Hernández Pérez is also charged, along with defendants Ivonne Falcón and Marielis Falcón, with Hobbs Act extortion under fear of economic harm. Hernández Pérez and unindicted co-conspirators would utilize their contacts and influence within at least one government dependency (the AAA) to secure, for a fee, the release of legitimate payments due to other corporations, which lacked the current connections within the government. In particular, Hernández Pérez and his associates, obtained property not due to them, specifically, $100,000.00 from Contractor A, in exchange for utilizing his connections within AAA in order to secure a portion of the money owed (approximately $1 million) to Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss. Moreover, the Falcón sisters aided and abetted each other to commit extortion. Defendant Ivonne M. Falcón Nieves utilized her position at AAA in order to enable her sister, defendant Marielis Falcón Nieves, to obtain property not due to her, specifically, cash payments, check payments, payments to contractors, and the performance of residential tree trimming, from Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss.
The 25 counts detailed in the indictment are as follows:
- Count 1: 18 U.S.C. § 371, Conspiracy to Commit Federal Programs Fraud and Honest Services Wire Fraud regarding contracts with ADL and AAA.
- Count 2: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for scheme with ADL.
- Counts 3-5: 18 U.S.C. § 343, substantive Wire Fraud counts for emails related to the scheme with ADL.
- Count 6: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for the scheme with AAA.
- Counts 7-9: 18 U.S.C. § 1343, substantive Wire Fraud counts for emails related to the scheme with AAA.
- Count 10: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with ADL (Sally López Martínez).
- Count 11: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with ADL.
- Count 12: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
- Count 13: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
- Count 14: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
- Count 15: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
- Count 16: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Hernandez Perez).
- Count 17: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Ivonne & Marielis Falcón Nieves).
- Count 18: 18 U.S.C. § 1956(h), Conspiracy to Commit Money Laundering (Hernandez Perez and Muñiz Alvarez).
- Count 19: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F. Luna Cruz).
- Count 20: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F. Luna Cruz).
- Count 21: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F. Luna Cruz).
- Count 22: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F. Luna Cruz).
- Count 23: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F. Luna Cruz and Javier A. Muñiz Álvarez (computer)).
- Count 24: 18 U.S.C. § 1346, Conspiracy to Commit Wire Fraud (money and property) for scheme with PR House of Representatives.
- Count 25: 18 U.S.C. § 666(a)(1)(A), Intentional misapplication of funds by an agent of an organization receiving federal funds for the scheme with House of Representatives (González Calderón, Burgos Cotto and Rivera Pizarro).
“For decades now, political cronyism, favoritism and corruption have robbed the people of Puerto Rico of the right to decent services and unbiased representation, including legally awarded government contracts,” said U.S. Attorney Rodríguez Vélez. “The people of Puerto Rico foot the bill for the underhanded dealings detailed in the indictment. The time for government cronyism that allows some to line their pockets with ill-gotten contracts at the expense of the many, is over. The time for public servants who trade their duty to represent the people of Puerto Rico in exchange for political appointments and gifts, is also over. The people of Puerto Rico deserve the honest services of, not only those in their government, but those who choose to do business with the government. Their violations of the public trust will be prosecuted to the full extent of the law.”
“Unfortunately, this is one more case of graft, greed and corruption that over the last 20 years have contributed to the government of Puerto Rico’s fragile financial condition and on the brink of bankruptcy,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division. “It is the responsibility of the leaders of the government of Puerto Rico to ensure this type of reprehensible and corrupt behavior does not occur. The FBI, along with the United States Attorney’s Office, District of Puerto Rico, will always remain vigilant and attack the corruption threat with undeniable and fervent passion. Let there be no doubt this is only the beginning and the investigation will continue. There will be no stone left unturned.”
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte of the District of Puerto Rico, Deputy Chief of the Financial Fraud and Corruption Unit. If found guilty, the defendants are facing possible sentences of up to five years for the conspiracy to commit federal programs fraud and wire fraud, up to 10 years for honest services fraud, up to 20 years for money laundering, Hobbs Act, obstruction of justice and conspiracy to commit honest services fraud.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Ten Individuals Indicted for Conspiracy to Commit Federal Programs Bribery, Honest Services Wire Fraud and ExtortionRead the Press Release
SAN JUAN, Puerto Rico– Ten Puerto Rico businessmen and government officials have been indicted for their alleged participation in several schemes to corruptly give things of value to public officials within the government of the Commonwealth of Puerto Rico in exchange for favorable treatment and awarding of government contracts to various corporations. The 25-count indictment includes charges of conspiracy to commit federal programs bribery and honest services wire fraud, wire fraud, federal program bribery, extortion through fear of economic harm, money laundering, false declarations before a grand jury, and obstruction of justice, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The Federal Bureau of Investigation is in charge of the investigation.
The indictment, returned on December 2, 2015, by a federal grand jury in the District of Puerto Rico, includes twenty-five charges against the following individuals:
- Anaudi Hernández Pérez, businessman and political fund raiser. Although not named in official corporate records, he exercised de facto control over numerous companies doing business with agencies and public corporations of the Commonwealth of Puerto Rico.
- Sally López Martínez, Administrator of the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”).
- Sonia M. Barreto Colón, Purchasing Director of the Commonwealth of Puerto Rico’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aqueduct and Sewer Authority) (hereinafter “AAA”).
- Ivonne M. Falcón Nieves, Vice President of AAA.Prior to her position as Vice President, Ivonne M. Falcón Nieves served as Treasurer of AAA.
- Javier A. Muñiz Álvarez, businessman. Utilized the Company JM Profesional (sic) & Training Group, Inc. to secure contracts from the Commonwealth of Puerto Rico.
- Carlos F. Luna Cruz, businessman. Worked for JM Profesional (sic) & Training Group, Inc.
- Xavier González Calderón, Administrator for the House of Representatives of the Commonwealth of Puerto Rico.
- Victor R. Burgos Cotto, Director of Technology for the House of Representatives.
- Marielis Falcón Nieves, sister of Ivonne M. Falcón Nieves.
- Glenn O. Rivera Pizarro, Special Assistant for Administration at the House of Representatives of Puerto Rico.
According to the indictment, Hernández Pérez utilized his political and personal connections with high ranking members of the current government in order to have “his people” appointed in critical government positions within the new administration which took over after the November 2012 elections. He also provided those individuals with things of value in exchange for government contracts, benefits and preferential treatment for several of his corporations. The indictment focuses on benefits Hernández Pérez, his co-conspirators, and corporate entities, obtained from the Commonwealth of Puerto Rico’s “Administración de Desarrollo Laboral” (Workforce Development Administration) (hereinafter “ADL”), the Commonwealth of Puerto Rico’s “Autoridad de Acueductos y Alcantarillados” (Puerto Rico Aqueduct and Sewer Authority) (hereinafter “AAA”), and the Puerto Rico House of Representatives. The three schemes detailed in the indictment essentially followed the same modus operandi.
The indictment alleges that beginning in or about late 2012, and continuing in or about early 2013, Hernández Pérez and several unindicted co-conspirators formalized their plans to obtain government contracts with numerous governmental entities. Hernández Pérez utilized his personal friendship with Person B (brother of the Governor of Puerto Rico, identified as Person A in the Indictment), and the good will generated by his substantial fundraising activities during the 2012 election cycle, to position himself to successfully make recommendations on behalf of individuals seeking government appointments and employment after the election.
Hernández Pérez received numerous emails and resumes from individuals seeking his assistance in obtaining positions within the newly elected government. Hernández Pérez, in turn, forwarded many of those emails to government officials, and to the governor’s brother, Person B. Many of these individuals ultimately received government employment. Hernández Pérez and his co-conspirators then set out to form and make alliances with various corporations and limited liability companies that would be used to obtain government contracts, proposals and purchase orders. These companies included: 3 Comm Global, Inc., Links Group, LLC, EKO Technologies, LLC, JM Profesional (sic) & Training Group, Inc., and Waffler Avenue, LLC. Some of these corporations were formed immediately prior to, or after, the general elections of November 2012.
Hernández Pérez and his co-conspirators were careful to ensure that his name did not appear on any official documentation regarding the formation of the corporations, or on any formal request for government contracts, proposals, or purchase orders. Hernández Pérez, however, was present in numerous meetings where the proposals were discussed, was included in internal electronic and oral communications regarding these matters, and received payment from the contracts into corporate bank accounts and other suspicious transactions.
Many of the individuals recommended by Hernández Pérez whom obtained the jobs, ultimately had the authority to approve or authorize contracts, purchase orders, and other financial obligations on behalf of their respective agencies, departments or public corporations, and in return for the recommendations for employment, and/or other things of value, authorized contracts, purchase orders, proposals and payments on behalf of the co-conspirators and their corporations.
Hernández Pérez and his co-conspirators offered and gave, and the public officials solicited and accepted from Hernández Pérez and his co-conspirators, things of value, including expensive meals, personal gifts, expensive fountain pens, purses, bags, concert tickets, and the payment of certain accrued debts. Hernandez Perez allegedly kept written electronic records regarding the purpose of his government related business meetings, and the things of value provided to each of these individuals.
Hernández Pérez and his co-conspirators utilized their government influence to receive an unfair competitive advantage over their competitors, in that they: a) received preferred opportunities on certain government “request for proposals” (“RFPs”); b) received guidance from agency employees on the proper format and content of proposals and bids for government contracts; c) had access to speak and meet with critical employees in decision making positions within the agencies, departments and government corporations; d) received guidance on how to structure bids and proposals in order to avoid the formal bidding process required by law; e) demanded and were provided with explanations from agency employees when their proposals or bids were not selected.
Once awarded the government contracts, Hernández Pérez and his co-conspirators would utilize, often without proper contractual authority, subcontractors who would perform the work defined in the contracts. On many occasions, Hernández Pérez and his co-conspirators provided substandard work on their contractual obligations in that they: a) failed to make the required payments to suppliers, subcontractors and creditors; b) failed to abide by the terms of the contract regarding performance results/follow up as required under the contract; c) failed to competently provide the services they were contracted to perform.
Hernández Pérez is also charged, along with defendants Ivonne Falcón and Marielis Falcón, with Hobbs Act extortion under fear of economic harm. Hernández Pérez and unindicted co-conspirators would utilize their contacts and influence within at least one government dependency (the AAA) to secure, for a fee, the release of legitimate payments due to other corporations, which lacked the current connections within the government. In particular, Hernández Pérez and his associates, obtained property not due to them, specifically, $100,000.00 from Contractor A, in exchange for utilizing his connections within AAA in order to secure a portion of the money owed (approximately $1,000,000) to Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss. Moreover, the Falcón sisters, aided and abetted each other to commit extortion. Defendant Ivonne M. Falcón Nieves utilized her position at AAA in order to enable her sister, defendant Marielis Falcón Nieves, to obtain property not due to her, specifically, cash payments, check payments, payments to contractors, and the performance of residential tree trimming, from Contractor A, with Contractor A’s consent, induced through the wrongful use of a fear of economic loss.
The 25 counts detailed in the Indictment are as follows:
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Count 1: 18 U.S.C. § 371, Conspiracy to Commit Federal Programs Fraud and Honest Services Wire Fraud regarding contracts with ADL and AAA.
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Count 2: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for scheme with ADL.
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Counts 3-5: 18 U.S.C. § 343, substantive Wire Fraud counts for emails related to the scheme with ADL.
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Count 6: 18 U.S.C. § 1349, Conspiracy to Commit Honest Services Wire Fraud for the scheme with AAA.
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Counts 7-9: 18 U.S.C. § 1343, substantive Wire Fraud counts for emails related to the scheme with AAA.
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Count 10: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with ADL (Sally López Martínez).
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Count 11: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with ADL.
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Count 12: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
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Count 13: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Ivonne Falcón).
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Count 14: 18 U.S.C. § 666(a)(2), paying a bribe to an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
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Count 15: 18 U.S.C. § 666(a)(1)(B), receipt of a bribe by an agent of an organization receiving federal funds for the scheme with AAA (Sonia Barreto).
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Count 16: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Hernandez Perez).
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Count 17: 18 U.S.C.§ 1951(a), Extortion Through Fear of Economic Harm (Ivonne & Marielis Falcón Nieves).
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Count 18: 18 U.S.C. § 1956(h), Conspiracy to Commit Money Laundering (Hernandez Perez and Muñiz Alvarez).
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Count 19: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F. Luna Cruz).
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Count 20: 18 U.S.C. § 1623(a), False Declarations Before Grand Jury (Carlos F.Luna Cruz).
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Count 21: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna Cruz).
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Count 22: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna Cruz).
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Count 23: 18 U.S.C. § 1512(c)(2), Obstruction of Justice (Carlos F.Luna Cruz and Javier A. Muñiz Álvarez (computer)).
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Count 24: 18 U.S.C. § 1346, Conspiracy to Commit Wire Fraud (money and property) for scheme with PR House of Representatives.
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Count 25: 18 U.S.C. § 666(a)(1)(A), Intentional misapplication of funds by an agent of an organization receiving federal funds for the scheme with House of Representatives (González Calderón, Burgos Cotto and Rivera Pizarro).
“For decades now, political cronyism, favoritism, and corruption have robbed the people of Puerto Rico of the right to decent services and unbiased representation, including legally awarded government contracts. The people of Puerto Rico foot the bill for the underhanded dealings detailed in the indictment. The time for government cronyism that allows some to line their pockets with ill-gotten contracts at the expense of the many, is over. The time for public servants who trade their duty to represent the people of Puerto Rico in exchange for political appointments and gifts, is also over. The people of Puerto Rico deserve the honest services of, not only those in their government, but those who choose to do business with the government. Their violations of the public trust will be prosecuted to the full extent of the law,” stated Rosa Emilia Rodríguez Vélez, US Attorney for the District of Puerto Rico.
“Unfortunately, this is one more case of graft, greed, and corruption that over the last 20 years have contributed to the Government of Puerto Rico’s fragile financial condition and on the brink of bankruptcy. It is the responsibility of the leaders of the Government of Puerto Rico to ensure this type of reprehensible and corrupt behavior does not occur. The FBI along with the United States Attorney’s Office, District of Puerto Rico will always remain vigilant and attack the corruption threat with undeniable and fervent passion. Let there be no doubt this is only the beginning and the investigation will continue. There will be no stone left unturned,” said Carlos Cases, Special Agent in Charge of the FBI, San Juan Division.
The case is being investigated by the FBI’s San Juan Division. The case is being prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Deputy Chief of the Financial Fraud and Corruption Unit. If found guilty, the defendants are facing possible sentences of up to five years for the conspiracy to commit federal programs fraud and wire fraud, up to 10 years for honest services fraud, up to 20 years for money laundering, Hobbs act, obstruction of justice, and conspiracy to commit honest services fraud.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Stony Creek Bank Robber Sentenced to More Than 12 Years in PrisonRead the Press Release
RICHMOND, Va. – Troy A. Clanton, Jr., 24, of Petersburg, was sentenced today to 147 months in prison for the robbery of the Bank of Southside Virginia (BSV) located in Stony Creek. Clanton was ordered by the Court to pay $20,278.29 to the victims of the crime.
Clanton plead guilty on May 18, 2015, to bank robbery and to brandishing a firearm in furtherance of a crime of violence. According to court documents, Clanton and an accomplice robbed the BSV on Dec. 29, 2014, entering the bank wearing a mask and armed with two handguns. Clanton and his co-conspirator stole $22,514 from BSV and fled from the scene. While making his getaway, Clanton dropped multiple personal documents with his name, date of birth, and phone number on the ground outside the bank. On Jan. 7, 2015, Clanton was arrested by police after a vehicular pursuit. At the time of arrest, Clanton was in possession of currency stolen from the BSV and the two handguns used in the robbery.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-61.
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Steroid Dealer SentencedRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Christopher Brit Beebe, has been sentenced in federal court in Columbia, South Carolina, for, Conspiracy to Distribute Steroids and Possession of a Firearm in Relation to a Drug Trafficking Crime, a violation of 21 U.S.C. § 846 and 18 U.S.C. 924. United States District Judge Cameron McGowan Currie sentenced Beebe to 97 months imprisonment; 5 years supervised release and a $200.00 special assessment.
Evidence presented at the change of plea hearing established that Beebe and others manufactured and then distributed steroids from 2004 to 2015 throughout the United States using the internet. The conspiracy was discovered when Kershaw County Sheriff Deputies responded to a report that Beebe’s girlfriend, Candace Altman, had been killed by a gunshot to the head at Beebe’s residence in Bethune, S.C. On arrival, officers discovered a large amount of steroids. The case was investigated by the Kershaw County Sheriff’s Office and agents of DEA Diversion. Assistant United States Attorney William E. Day, II, of the Columbia office prosecuted the case.
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Statesboro City Councilman Indicted for Attempted ExtortionRead the Press Release
STATESBORO, GA – Gary Lavon Lewis, 65, a City Councilman for the past 17 years in Statesboro, Georgia, was indicted today by a federal grand jury on a charge of attempted extortion. According to the Indictment, Lewis attempted to obtain $2,500 in cash from a local businessman in return for official acts, specifically, the passage of a local ordinance permitting drive-through alcohol sales.
Lewis faces a maximum sentence of 20 years in prison, a $250,000 fine, and three years of supervised release. The indictment is only an accusation and is not evidence of guilt. Lewis is entitled to a fair trial, during which it will be the Government’s burden to prove his guilt of the charge in the Indictment beyond a reasonable doubt.
The case was investigated by the Statesboro office of the FBI. Assistant United States Attorney R. Brian Tanner is prosecuting the case on behalf of the United States. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Spartanburg Man Sentenced to 60 Months on Child Porn ChargesRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Robert L. Bullard IIII, age 61, of Spartanburg, was sentenced today in federal court in Anderson, for possession of child pornography, a violation of Title 18, United States Code, Section 2255A. United States District Judge Timothy M. Cain of Anderson sentenced Bullard to 60 months imprisonment and ordered that he be on supervised release for life.
Evidence presented at the change of plea hearing established that in late 2012, an undercover law enforcement officer was conducting an investigation into individuals using file sharing software to trade child porn. The officer downloaded 39 child pornography files from an account that was later traced to Bullard.
Federal agents obtained a search warrant for Bullard’s home. When confronted with the search warrant, Defendant told agents they would find child pornography on this computer. He admitted that he downloaded child porn to his computer and that he searched for incest and hardcore pre-teen images and videos.
A forensic exam of the computers seized revealed 1035 videos and 4058 still images of children under the age of 18, some of whom were prepubescent minors, engaged in sexual acts and the lascivious display of the genitals.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
####Sixteen Additional FIFA Officials Indicted for Racketeering Conspiracy and CorruptionRead the Press Release
The New Defendants Include Five Current or Former FIFA Executive Committee Members and the Current Presidents of CONCACAF and CONMEBOL; Guilty Pleas for Eight Others, Including Jeffrey Webb and the Former Presidents of the Colombian and Chilean Soccer Federations, also Announced
A 92-count superseding indictment was unsealed earlier today in federal court in Brooklyn, New York, charging an additional 16 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with their participation in a 24-year scheme to enrich themselves through the corruption of international soccer. The superseding indictment also includes additional charges for seven of the defendants still pending extradition following the return of the original indictment last May. The guilty pleas of eight defendants – including Jeffrey Webb, Alejandro Burzaco and José Margulies, three of the defendants indicted last May – were also announced today.
The new defendants charged in the superseding indictment include high-ranking officials of FIFA, the organization responsible for the regulation and promotion of soccer worldwide, as well as high-ranking officials of other soccer governing bodies that operate under the FIFA umbrella. The defendants Alfredo Hawit and Juan Ángel Napout – the current presidents of CONCACAF and CONMEBOL, respectively, as well as current FIFA vice presidents and Executive Committee members – are among the 16 additional soccer officials charged with racketeering and bribery offenses. CONCACAF and CONMEBOL are two of FIFA’s six continental confederations. The new defendants also include Marco Polo del Nero and Ricardo Teixeira, the current and former presidents of the Brazilian soccer federation, both of whom are also former members of the FIFA Executive Committee, as well as José Luís Meiszner and Eduardo Deluca, the current and former general secretaries of CONMEBOL. Within UNCAF, the Central American regional soccer union operating within CONCACAF, the charges in the superseding indictment name the current and/or former presidents of nearly every country in the region: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. Taken together, the 27 defendants in the superseding indictment are alleged to have engaged in a number of schemes all designed to solicit and receive well over $200 million in bribes and kickbacks to sell lucrative media and marketing rights to international soccer tournaments and matches, among other valuable rights and properties.
The charges were announced by Attorney General Loretta E. Lynch, FBI Director James B. Comey, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Chief Richard Weber of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI Los Angeles Field Office.
Early this morning, Swiss authorities in Zurich arrested two of the defendants charged in the superseding indictment – Hawit and Napout – at the request of the United States. Also this morning, a search warrant was executed at Media World, a sports marketing company based in Miami.
The new charges unsealed today bring the total number of individuals and entities charged to date to 41. Of those, 12 individuals and two sports marketing companies have already been convicted as a result of the ongoing investigation. The convicted defendants have agreed to pay more than $190 million in forfeiture. In addition, more than $100 million has been restrained in the United States and abroad in connection with the alleged criminal activity. The United States has issued mutual legal assistance requests seeking the restraint of assets located in 13 countries around the world.
“The Department of Justice is committed to ending the rampant corruption we have alleged amidst the leadership of international soccer – not only because of the scale of the schemes, or the brazenness and breadth of the operation required to sustain such corruption, but also because of the affront to international principles that this behavior represents,” said Attorney General Lynch. “The message from this announcement should be clear to every culpable individual who remains in the shadows, hoping to evade our investigation: You will not wait us out. You will not escape our focus.” Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland for their continuing outstanding assistance and collaboration in this investigation, and to the authorities in a number of other countries, including Brazil and Colombia, for their assistance as well.
“For decades, these defendants used their power as the leaders of soccer federations throughout the world to create a web of corruption and greed that compromises the integrity of the beautiful game,” said Director Comey. “I want to thank all the agencies for their hard work and for showing the world that we do not tolerate this criminal activity.”
“The charges unsealed today send a clear message to those who corrupted a sport beloved by millions to satisfy their own greed: We are determined to put a stop to bribery and corruption in international soccer and to make room for a new era of integrity and reform,” said U.S. Attorney Capers. “This indictment is the latest step in that effort, but our work is not done. While our investigation continues at home, we also look forward to continuing our collaboration with our international partners, including in particular the Swiss authorities, because there is so much yet to be done.” Mr. Capers extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues in the United States and abroad, for their continuing tremendous effort in this case. Mr. Capers also thanked the U.S. Marshals Service for its continuing assistance.
“The brazenness with which the individuals indicted today breached the integrity of the U.S. financial system to promote and conceal their criminal schemes is quite alarming,” said Chief Weber. “While it is one of the most complex worldwide financial investigations ever conducted, it is also an eye opener to everyone that such greed and corruption could be hiding in plain sight within the world’s most popular sport. By conspiring to enrich themselves through bribery and kickback schemes relating to media and marketing rights, the defendants undermined the process of fair and open competition, corrupting the beautiful game for their own personal gain.”
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Overview of the Superseding Indictment
As alleged in the superseding indictment, FIFA and its six continental confederations – including CONCACAF, headquartered in the United States, and CONMEBOL, the confederation headquartered in South America – together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of violating the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.
Like the original indictment, the superseding indictment alleges that between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks. All told, the soccer officials are charged with conspiring to solicit and receive more than $200 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.
The schemes alleged in the original indictment related to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, as well as schemes related to the payment and receipt of bribes and kickbacks in connection with the sponsorship of the Brazilian soccer federation by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.
The new allegations in the superseding indictment relate to a series of bribery schemes in connection with multiple cycles of FIFA World Cup qualifiers and international friendly matches involving six Central American member associations within UNCAF; a bribery scheme implicating many top CONMEBOL officials relating to the sale of broadcasting rights to the CONMEBOL Copa Libertadores over an extended period; and a scheme by an Argentinian sports marketing company to obtain various rights properties from CONCACAF by paying bribes to three Central American soccer officials to cause them to exert their influence in favor of the company.
The 16 New Defendants
As set forth in the superseding indictment, the 16 newly-indicted defendants are all current or former soccer officials who acted at various times in a fiduciary capacity within FIFA and one or more of its constituent organizations:
CONCACAF Region Officials
- Alfredo Hawit: Current FIFA vice president and Executive Committee member and CONCACAF president. Former CONCACAF vice president and Honduran soccer federation president.
- Ariel Alvarado: Current member of the FIFA Disciplinary Committee. Former CONCACAF Executive Committee member and Panamanian soccer federation president.
- Rafael Callejas: Current member of the FIFA Television and Marketing Committee. Former Honduran soccer federation president and former president of the Republic of Honduras.
- Brayan Jiménez: Current Guatemalan soccer federation president and member of the FIFA Committee for Fair Play and Social Responsibility.
- Rafael Salguero: Former FIFA Executive Committee member and Guatemalan soccer federation president.
- Héctor Trujillo: Current Guatemalan soccer federation general secretary and judge on the Constitutional Court of Guatemala.
- Reynaldo Vasquez: Former Salvadoran soccer federation president.
CONMEBOL Region Officials
- Juan Ángel Napout: Current FIFA vice president and Executive Committee member and CONMEBOL president. Former Paraguayan soccer federation president.
- Manuel Burga: Current member of the FIFA Development Committee. Former Peruvian soccer federation president.
- Carlos Chávez: Current CONMEBOL treasurer. Former Bolivian soccer federation president.
- Luís Chiriboga: Current Ecuadorian soccer federation president and member of the CONMEBOL Executive Committee.
- Marco Polo del Nero: Current president of the Brazilian soccer federation. Announced resignation from FIFA Executive Committee on Nov. 26, 2015.
- Eduardo Deluca: Former CONMEBOL general secretary.
- José Luis Meiszner: Current CONMEBOL general secretary.
- Romer Osuna: Current member of the FIFA Audit and Compliance Committee. Former CONMEBOL treasurer.
- Ricardo Teixeira: Former Brazilian soccer federation president and FIFA Executive Committee member.
The Convicted Defendants
The following defendants previously pleaded guilty under seal and agreed to forfeit more than $40 million:
On May 26, 2015, Zorana Danis, the co-founder and owner of International Soccer Marketing Inc., a New Jersey-based sports marketing company, waived indictment and pleaded guilty to a two-count information charging her with wire fraud conspiracy and filing false tax returns. As part of her plea, Danis agreed to forfeit $2 million.
On Nov. 9, 2015, Fabio Tordin, the former CEO of Traffic Sports USA Inc. and currently an executive with Media World LLC, a Miami-based sports marketing company, waived indictment and pleaded guilty to a four-count information charging him with three counts of wire fraud conspiracy and one count of tax evasion. As part of his plea, Tordin agreed to forfeit more than $600,000.
On Nov. 12, 2015, Luis Bedoya, a member of the FIFA Executive Committee, a CONMEBOL vice president and, until last month, the president of the Federación Colombiana de Fútbol, the Colombian soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy. As part of his plea, Bedoya agreed to forfeit all funds on deposit in his Swiss bank account, among other funds.
On Nov. 16, 2015, Alejandro Burzaco, the former general manager and chairman of the board of Torneos y Competencias S.A., an Argentinian sports marketing company, pleaded guilty to racketeering conspiracy, wire fraud conspiracy and money laundering conspiracy. As part of his plea, Burzaco agreed to forfeit more than $21.6 million.
On Nov. 17, 2015, Roger Huguet, the CEO of Media World and its parent company, waived indictment and pleaded guilty to a three-count information charging him with two counts of wire fraud conspiracy and one count of money laundering conspiracy. As part of his plea, Huguet agreed to forfeit more than $600,000.
On Nov. 23, 2015, Jeffrey Webb, a former FIFA vice president and Executive Committee member, CONCACAF president, Caribbean Football Union Executive Committee member and Cayman Islands Football Association president, pleaded guilty to racketeering conspiracy, three counts of wire fraud conspiracy and three counts of money laundering conspiracy. As part of his plea, Webb agreed to forfeit more than $6.7 million.
On Nov. 23, 2015, Sergio Jadue, a vice president of CONMEBOL and, until last month, the president of the Asociación Nacional de Fútbol Profesional de Chile, the Chilean soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy. As part of his plea, Jadue agreed to forfeit all funds on deposit in his U.S. bank account, among other funds.
On Nov. 25, 2015, José Margulies, the controlling principal of Valente Corp. and Somerton Ltd, who served as an intermediary who facilitated illicit payments between sports marketing executives and soccer officials, pleaded guilty to racketeering conspiracy, wire fraud conspiracy, and two counts of money laundering conspiracy. As part of his plea, Margulies agreed to forfeit more than $9.2 million.
As previously announced last May, all money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.
* * * *
The indicted and convicted defendants face maximum terms of incarceration of 20 years for the Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges. In addition, Tordin and Danis face maximum terms of five and three years in prison, respectively, for the tax charges. Each defendant also faces mandatory restitution, forfeiture and a fine.
The superseding indictment and guilty pleas unsealed today are assigned to the U.S. District Judge Raymond J. Dearie of the Eastern District of New York.
The government’s investigation is ongoing.
The charges and guilty pleas announced today are part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’s New York Field Office and the IRS-CI Los Angeles Field Office. The work in the U.S. Attorney’s Office involves prosecutors from the National Security and Cybercrime Section, the Organized Crime and Gang Section, the Business and Securities Fraud Section and the Public Integrity Section. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section and the Fraud Section, as well as from INTERPOL Washington.
The charges and guilty pleas announced today are being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, M. Kristin Mace, Paul Tuchmann, Keith D. Edelman, Tanya Hajjar and Brian D. Morris of the Eastern District of New York.
The Newly-Indicted Defendants:
ARIEL ALVARADO
Age: 56
Nationality: Panama
MANUEL BURGA
Age: 58
Nationality: Peru
RAFAEL CALLEJAS
Age: 72
Nationality: Honduras
CARLOS CHÁVEZ
Age: 57
Nationality: Bolivia
LUÍS CHIRIBOGA
Age: 69
Nationality: Ecuador
MARCO POLO DEL NERO
Age: 74
Nationality: Brazil
EDUARDO DELUCA
Age: 75
Nationality: ARGENTINA
ALFREDO HAWIT
Age: 64
Nationality: Honduras
BRAYAN JIMÉNEZ
Age: 61
Nationality: Guatemala
JOSÉ LUÍS MEISZNER
Age: 69
Nationality: Argentina
JUAN ÁNGEL NAPOUT
Age: 57
Nationality: Paraguay
ROMER OSUNA
Age: 72
Nationality: Bolivia
RAFAEL SALGUERO
Age: 70
Nationality: Guatemala
RICARDO TEIXEIRA
Age: 68
Nationality: Brazil
HÉCTOR TRUJILLO
Age: 62
Nationality: Guatemala
REYNALDO VASQUEZ
Age: 59
Nationality: El Salvador
The Convicted Defendants:
LUIS BEDOYA
Age: 56
Nationality: Colombia
ALEJANDRO BURZACO
Age: 51
Nationality: Argentina
ZORANA DANIS
Age: 52
Nationality: Belgium
ROGER HUGUET
Age: 52
Nationality: USA, Spain
SERGIO JADUE
Age: 36
Nationality: Chile
JOSÉ MARGULIES
Age: 76
Nationality: Brazil
FABIO TORDIN
Age: 50
Nationality: Brazil
JEFFREY WEBB
Age: 51
Nationality: Cayman Islands
E.D.N.Y. Docket Numbers:
United States v. Zorana Danis, 15 Cr. 240 (RJD)
United States v. Jeffrey Webb et al., 15 Cr. 252 (RJD)
United States v. Fabio Tordin, 15 Cr. 564 (RJD)
United States v. Luis Bedoya, 15 Cr. 569 (RJD)
United States v. Sergio Jadue, 15 Cr. 570 (RJD)
United States v. Roger Huguet, 15 Cr. 585 (RJD)
Sixteen Additional FIFA Officials Indicted for Racketeering Conspiracy and CorruptionRead the Press Release
Guilty Pleas for Eight Others, Including Jeffrey Webb and the Former Presidents of the Colombian and Chilean Soccer Federations, also Announced
A 92-count superseding indictment was unsealed earlier today in federal court in Brooklyn, New York, charging an additional 16 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with their participation in a 24-year scheme to enrich themselves through the corruption of international soccer. The superseding indictment also includes additional charges for seven of the defendants still pending extradition following the return of the original indictment last May. The guilty pleas of eight defendants – including Jeffrey Webb, Alejandro Burzaco and José Margulies, three of the defendants indicted last May – were also announced today.
The new defendants charged in the superseding indictment include high-ranking officials of FIFA, the organization responsible for the regulation and promotion of soccer worldwide, as well as high-ranking officials of other soccer governing bodies that operate under the FIFA umbrella. The defendants Alfredo Hawit and Juan Ángel Napout – the current presidents of CONCACAF and CONMEBOL, respectively, as well as current FIFA vice presidents and Executive Committee members – are among the 16 additional soccer officials charged with racketeering and bribery offenses. CONCACAF and CONMEBOL are two of FIFA’s six continental confederations. The new defendants also include Marco Polo del Nero and Ricardo Teixeira, the current and former presidents of the Brazilian soccer federation, both of whom are also former members of the FIFA Executive Committee, as well as José Luís Meiszner and Eduardo Deluca, the current and former general secretaries of CONMEBOL. Within UNCAF, the Central American regional soccer union operating within CONCACAF, the charges in the superseding indictment name the current and/or former presidents of nearly every country in the region: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. Taken together, the 27 defendants in the superseding indictment are alleged to have engaged in a number of schemes all designed to solicit and receive well over $200 million in bribes and kickbacks to sell lucrative media and marketing rights to international soccer tournaments and matches, among other valuable rights and properties.
The charges were announced by Attorney General Loretta E. Lynch, FBI Director James B. Comey, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Chief Richard Weber of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI Los Angeles Field Office.
Early this morning, Swiss authorities in Zurich arrested two of the defendants charged in the superseding indictment – Hawit and Napout – at the request of the United States. Also this morning, a search warrant was executed at Media World, a sports marketing company based in Miami.
The new charges unsealed today bring the total number of individuals and entities charged to date to 41. Of those, 12 individuals and two sports marketing companies have already been convicted as a result of the ongoing investigation. The convicted defendants have agreed to pay more than $190 million in forfeiture. In addition, more than $100 million has been restrained in the United States and abroad in connection with the alleged criminal activity. The United States has issued mutual legal assistance requests seeking the restraint of assets located in 13 countries around the world.
“The Department of Justice is committed to ending the rampant corruption we have alleged amidst the leadership of international soccer – not only because of the scale of the schemes, or the brazenness and breadth of the operation required to sustain such corruption, but also because of the affront to international principles that this behavior represents,” said Attorney General Lynch. “The message from this announcement should be clear to every culpable individual who remains in the shadows, hoping to evade our investigation: You will not wait us out. You will not escape our focus.” Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland for their continuing outstanding assistance and collaboration in this investigation, and to the authorities in a number of other countries, including Brazil and Colombia, for their assistance as well.
“For decades, these defendants used their power as the leaders of soccer federations throughout the world to create a web of corruption and greed that compromises the integrity of the beautiful game,” said Director Comey. “I want to thank all the agencies for their hard work and for showing the world that we do not tolerate this criminal activity.”
“The charges unsealed today send a clear message to those who corrupted a sport beloved by millions to satisfy their own greed: We are determined to put a stop to bribery and corruption in international soccer and to make room for a new era of integrity and reform,” said U.S. Attorney Capers. “This indictment is the latest step in that effort, but our work is not done. While our investigation continues at home, we also look forward to continuing our collaboration with our international partners, including in particular the Swiss authorities, because there is so much yet to be done.” Mr. Capers extended his thanks to the agents, analysts and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues in the United States and abroad, for their continuing tremendous effort in this case. Mr. Capers also thanked the U.S. Marshals Service for its continuing assistance.
“The brazenness with which the individuals indicted today breached the integrity of the U.S. financial system to promote and conceal their criminal schemes is quite alarming,” said Chief Weber. “While it is one of the most complex worldwide financial investigations ever conducted, it is also an eye opener to everyone that such greed and corruption could be hiding in plain sight within the world’s most popular sport. By conspiring to enrich themselves through bribery and kickback schemes relating to media and marketing rights, the defendants undermined the process of fair and open competition, corrupting the beautiful game for their own personal gain.”
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Overview of the Superseding Indictment
As alleged in the superseding indictment, FIFA and its six continental confederations – including CONCACAF, headquartered in the United States, and CONMEBOL, the confederation headquartered in South America – together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of violating the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.
Like the original indictment, the superseding indictment alleges that between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks. All told, the soccer officials are charged with conspiring to solicit and receive more than $200 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.
The schemes alleged in the original indictment related to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, as well as schemes related to the payment and receipt of bribes and kickbacks in connection with the sponsorship of the Brazilian soccer federation by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.
The new allegations in the superseding indictment relate to a series of bribery schemes in connection with multiple cycles of FIFA World Cup qualifiers and international friendly matches involving six Central American member associations within UNCAF; a bribery scheme implicating many top CONMEBOL officials relating to the sale of broadcasting rights to the CONMEBOL Copa Libertadores over an extended period; and a scheme by an Argentinian sports marketing company to obtain various rights properties from CONCACAF by paying bribes to three Central American soccer officials to cause them to exert their influence in favor of the company.
The 16 New Defendants
As set forth in the superseding indictment, the 16 newly-indicted defendants are all current or former soccer officials who acted at various times in a fiduciary capacity within FIFA and one or more of its constituent organizations:
CONCACAF Region Officials
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Alfredo Hawit: Current FIFA vice president and Executive Committee member and CONCACAF president. Former CONCACAF vice president and Honduran soccer federation president.
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Ariel Alvarado: Current member of the FIFA Disciplinary Committee. Former CONCACAF Executive Committee member and Panamanian soccer federation president.
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Rafael Callejas: Current member of the FIFA Television and Marketing Committee. Former Honduran soccer federation president and former president of the Republic of Honduras.
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Brayan Jiménez: Current Guatemalan soccer federation president and member of the FIFA Committee for Fair Play and Social Responsibility.
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Rafael Salguero: Former FIFA Executive Committee member and Guatemalan soccer federation president.
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Héctor Trujillo: Current Guatemalan soccer federation general secretary and judge on the Constitutional Court of Guatemala.
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Reynaldo Vasquez: Former Salvadoran soccer federation president.
CONMEBOL Region Officials
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Juan Ángel Napout: Current FIFA vice president and Executive Committee member and CONMEBOL president. Former Paraguayan soccer federation president.
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Manuel Burga: Current member of the FIFA Development Committee. Former Peruvian soccer federation president.
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Carlos Chávez: Current CONMEBOL treasurer. Former Bolivian soccer federation president.
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Luís Chiriboga: Current Ecuadorian soccer federation president and member of the CONMEBOL Executive Committee.
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Marco Polo del Nero: Current president of the Brazilian soccer federation. Announced resignation from FIFA Executive Committee on Nov. 26, 2015.
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Eduardo Deluca: Former CONMEBOL general secretary.
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José Luis Meiszner: Current CONMEBOL general secretary.
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Romer Osuna: Current member of the FIFA Audit and Compliance Committee. Former CONMEBOL treasurer.
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Ricardo Teixeira: Former Brazilian soccer federation president and FIFA Executive Committee member.
The Convicted Defendants
The following defendants previously pleaded guilty under seal and agreed to forfeit more than $40 million:
On May 26, 2015, Zorana Danis, the co-founder and owner of International Soccer Marketing Inc., a New Jersey-based sports marketing company, waived indictment and pleaded guilty to a two-count information charging her with wire fraud conspiracy and filing false tax returns. As part of her plea, Danis agreed to forfeit $2 million.
On Nov. 9, 2015, Fabio Tordin, the former CEO of Traffic Sports USA Inc. and currently an executive with Media World LLC, a Miami-based sports marketing company, waived indictment and pleaded guilty to a four-count information charging him with three counts of wire fraud conspiracy and one count of tax evasion. As part of his plea, Tordin agreed to forfeit more than $600,000.
On Nov. 12, 2015, Luis Bedoya, a member of the FIFA Executive Committee, a CONMEBOL vice president and, until last month, the president of the Federación Colombiana de Fútbol, the Colombian soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy. As part of his plea, Bedoya agreed to forfeit all funds on deposit in his Swiss bank account, among other funds.
On Nov. 16, 2015, Alejandro Burzaco, the former general manager and chairman of the board of Torneos y Competencias S.A., an Argentinian sports marketing company, pleaded guilty to racketeering conspiracy, wire fraud conspiracy and money laundering conspiracy. As part of his plea, Burzaco agreed to forfeit more than $21.6 million.
On Nov. 17, 2015, Roger Huguet, the CEO of Media World and its parent company, waived indictment and pleaded guilty to a three-count information charging him with two counts of wire fraud conspiracy and one count of money laundering conspiracy. As part of his plea, Huguet agreed to forfeit more than $600,000.
On Nov. 23, 2015, Jeffrey Webb, a former FIFA vice president and Executive Committee member, CONCACAF president, Caribbean Football Union Executive Committee member and Cayman Islands Football Association president, pleaded guilty to racketeering conspiracy, three counts of wire fraud conspiracy and three counts of money laundering conspiracy. As part of his plea, Webb agreed to forfeit more than $6.7 million.
On Nov. 23, 2015, Sergio Jadue, a vice president of CONMEBOL and, until last month, the president of the Asociación Nacional de Fútbol Profesional de Chile, the Chilean soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy. As part of his plea, Jadue agreed to forfeit all funds on deposit in his U.S. bank account, among other funds.
On Nov. 25, 2015, José Margulies, the controlling principal of Valente Corp. and Somerton Ltd, who served as an intermediary who facilitated illicit payments between sports marketing executives and soccer officials, pleaded guilty to racketeering conspiracy, wire fraud conspiracy, and two counts of money laundering conspiracy. As part of his plea, Margulies agreed to forfeit more than $9.2 million.
As previously announced last May, all money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.
The indicted and convicted defendants face maximum terms of incarceration of 20 years for the Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges. In addition, Tordin and Danis face maximum terms of five and three years in prison, respectively, for the tax charges. Each defendant also faces mandatory restitution, forfeiture and a fine.
The superseding indictment and guilty pleas unsealed today are assigned to the U.S. District Judge Raymond J. Dearie of the Eastern District of New York.
The government’s investigation is ongoing.
The charges and guilty pleas announced today are part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’s New York Field Office and the IRS-CI Los Angeles Field Office. The work in the U.S. Attorney’s Office involves prosecutors from the National Security and Cybercrime Section, the Organized Crime and Gang Section, the Business and Securities Fraud Section and the Public Integrity Section. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section and the Fraud Section, as well as from INTERPOL Washington.
The charges and guilty pleas announced today are being prosecuted by Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, M. Kristin Mace, Paul Tuchmann, Keith D. Edelman, Tanya Hajjar and Brian D. Morris of the Eastern District of New York.
The Newly-Indicted Defendants:
ARIEL ALVARADO
Age: 56
Nationality: PanamaMANUEL BURGA
Age: 58
Nationality: PeruRAFAEL CALLEJAS
Age: 72
Nationality: HondurasCARLOS CHÁVEZ
Age: 57
Nationality: BoliviaLUÍS CHIRIBOGA
Age: 69
Nationality: EcuadorMARCO POLO DEL NERO
Age: 74
Nationality: BrazilEDUARDO DELUCA
Age: 75
Nationality: ARGENTINAALFREDO HAWIT
Age: 64
Nationality: HondurasBRAYAN JIMÉNEZ
Age: 61
Nationality: GuatemalaJOSÉ LUÍS MEISZNER
Age: 69
Nationality: ArgentinaJUAN ÁNGEL NAPOUT
Age: 57
Nationality: ParaguayROMER OSUNA
Age: 72
Nationality: BoliviaRAFAEL SALGUERO
Age: 70
Nationality: GuatemalaRICARDO TEIXEIRA
Age: 68
Nationality: BrazilHÉCTOR TRUJILLO
Age: 62
Nationality: GuatemalaREYNALDO VASQUEZ
Age: 59
Nationality: El SalvadorThe Convicted Defendants:
LUIS BEDOYA
Age: 56
Nationality: ColombiaALEJANDRO BURZACO
Age: 51
Nationality: ArgentinaZORANA DANIS
Age: 52
Nationality: BelgiumROGER HUGUET
Age: 52
Nationality: USA, SpainSERGIO JADUE
Age: 36
Nationality: ChileJOSÉ MARGULIES
Age: 76
Nationality: BrazilFABIO TORDIN
Age: 50
Nationality: BrazilJEFFREY WEBB
Age: 51
Nationality: Cayman IslandsE.D.N.Y. Docket Numbers:
United States v. Zorana Danis, 15 Cr. 240 (RJD)
United States v. Jeffrey Webb et al., 15 Cr. 252 (RJD)
United States v. Fabio Tordin, 15 Cr. 564 (RJD)
United States v. Luis Bedoya, 15 Cr. 569 (RJD)
United States v. Sergio Jadue, 15 Cr. 570 (RJD)
United States v. Roger Huguet, 15 Cr. 585 (RJD)
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Shreveport man sentenced to 105 months in prison for possessing a rifle after being convicted of a felonyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 105 months in prison for possessing a firearm and ammunition after being convicted of a felony.
Daranski M. Wynder, 33, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of a firearm and ammunition by a convicted felon. He was also sentenced to three years of supervised release. According to the August 10, 2015 guilty plea, Shreveport police officers responded to a 911 call on January 6, 2015 reporting that there was a man standing outside his residence with a rifle. Wynder was found at this residence with rifle bullets in his pocket. Police also found a 7.62 by 39 mm rifle and ammunition in his residence. Wynder was convicted in the 26th Judicial District Court in Webster Parish for monetary instrument abuse in 2011. He was also convicted in the First Judicial District Court in Caddo Parish for attempted felon in possession of a firearm in 2005 and for simple burglary in 2001.
This case is part of Project Safe Neighborhoods, a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Serial Armed Robbers Known as “Bulls Cap Bandits” Plead Guilty to Federal ChargesRead the Press Release
DALLAS — Three Dallas men have pleaded guilty to their roles in committing several violent armed robberies in Dallas last year, announced U.S. Attorney John Parker of the Northern District of Texas.
Today, Cedric Ray Jones, 26, pleaded guilty, before U.S. District Judge Jane J. Boyle, to one count of conspiracy to interfere with commerce by robbery, two counts of using, carry, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence, and three counts of interference with commerce by robbery. Last week, his brother, Damien Antoine Jones, 31, pleaded guilty to the same offenses. In mid-November, Savalas Christopher Love, 30, pleaded guilty to the conspiracy count and one firearm count.
The FBI dubbed the robbers the “Bulls Cap Bandits,” as Cedric and Damien Jones wore Chicago Bulls caps during the robberies.
According to documents filed in the case, from approximately March 7, 2014, through June 17, 2014, the defendants conspired together to commit these armed robberies:
March 7, 2014 Cash Plus Pawn
and 9103 East R.L. Thornton Freeway, Dallas
June 12, 2014May 28, 2014 AutoZone
10418 Garland Road, DallasJune 2, 2014 AutoZone
2842 South Buckner Blvd., DallasJune 17, 2014 AutoZone
9711 Plano Road, DallasDuring each of the robberies, Cedric and Damien Jones wore disguises and brandished firearms. In the March 7, 2014, robbery of Cash Plus Pawn, they stole cash and two semi-automatic rifles, and then fled on foot.
In the May 28, 2014, and June 2, 2014, AutoZone robberies, Cedric and Damien Jones entered the store, brandishing the semi-automatic rifles, while Love remained in the vehicle as the “getaway driver.” The three fled in Love’s vehicle.
On June 12, 2014, Cedric and Damien Jones, Love, and another individual traveled to the Cash Plus Pawn store on East R.L. Thornton Freeway in Dallas, in Love’s vehicle, with the specific intent to commit robbery. Upon arriving in the parking lot, Damien Jones and the other individual exited the vehicle and approached the store’s entrance with firearms, but abandoned the robbery when confronted by a store employee. They fled in Love’s vehicle.
In the June 17, 2014, AutoZone robbery, Cedric and Damien Jones traveled together in Love’s vehicle to the store with the intent to commit robbery. Love traveled separately to the location. Love “cased” the store and reported the absence of security personnel to Damien Jones. Cedric and Damien Jones then entered the store, brandishing semi-automatic rifles, and then fled the robbery in their vehicle. During a subsequent chase with law enforcement, Cedric Jones operated the vehicle in a manner to avoid apprehension and created a substantial risk to other motorists on the roads. During the pursuit, shots were fired in the direction of the pursuing officers to further avoid apprehension.
The conspiracy count and each of the interference with commerce by robbery counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The first firearm conviction carries a mandatory sentence of not less than seven years and up to life in federal prison, to be served consecutively to any other term of imprisonment. The subsequent firearm offense carries a mandatory term of not less than 25 years and up to life in federal prison, to be served consecutively to any other term of imprisonment. The defendants’ sentencing dates are scheduled in March 2016.
The case is being investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
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Sentencings for December 1 - December 2, 2015Read the Press Release
Starr Dana Miller, 22, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 2, 2015, for being a felon in possession of a firearm. Miller was arrested on the Wind River Indian Reservation. He received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Stormie Forrester, 38, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 2, 2015, for distribution of methamphetamine. Forrester was arrested in Riverton, Wyoming. She received 147 days of imprisonment, to be followed by three years of supervised release, including five months of home confinement, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation, the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Matthew Charles Cook, 42, of Evanston, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 2, 2015, for distribution of methamphetamine. Cook was arrested in Evanston, Wyoming. He received 87 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Oscar Calderon-Galeano, aka Jose Vasquez-Rodriguez, Jose Rodriguez-Vasquez and Jose Hernandez-Herrera, 33, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 1, 2015, for illegal re-entry of a previously deported alien into the United States. Calderon-Galeano was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Emilio Chavez-Alcantara, 35, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on December 1, 2015, for illegal re-entry of a previously deported alien into the United States. Chavez-Alcantara was arrested in Lander, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Second Individual Charged in Ongoing New York Power Authority Procurement Fraud InvestigationRead the Press Release
Construction Company Owner Pleads Guilty to Tax Violation
Law enforcement agencies conducting a joint federal and state investigation into bid-rigging, fraud and tax-related offenses in the award of contracts by the New York Power Authority announced today that a construction company owner from Orangeburg, New York, has pleaded guilty to filing a false tax return. This is the second guilty plea in the investigation, which was initiated by the New York State Inspector General.
According to the one-count felony charge filed in the U.S. District Court for the Southern District of New York, in White Plains, New York, Peter Shine filed a Form 1040 for the tax year 2013 that substantially understated his taxable income. Shine pleaded guilty to subscribing to a false tax return, which carries a maximum penalty of three years in prison and a $250,000 fine.
“Business owners who willfully do not report their true income and expenses potentially expose themselves to criminal investigation and the ensuing consequences,” said Special Agent in Charge Shantelle P. Kitchen of the IRS Criminal Investigation’s New York Field Office. “IRS Criminal Investigation is committed to ensuring that everyone pays his or her fair share.”
“Shine essentially siphoned funds he was not entitled to and sidestepped his responsibility to pay taxes on underreported income,” said Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office. “This guilty plea is proof of the FBI’s continued determination to work with our partners in rooting out those who engage in unlawful schemes for profit.”
“This guilty plea originates from a bid rigging investigation begun at the state level and clearly demonstrates the commitment of my office, and that of my federal law enforcement partners, to follow the evidence wherever it may lead,” said New York State Inspector General Catherine Leahy Scott.
“The division will continue to work with our law enforcement partners to ensure that any crimes uncovered during our investigations will be prosecuted,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division.
The investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FBI, IRS Criminal Investigation and the New York State Office of the Inspector General. NYPA is cooperating with the investigation. Anyone with information on bid rigging or other anticompetitive conducted related to the award or performance of municipal and state contracts should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/contact/newcase.html.
Ruston man sentenced to more than 12 years in prison for role in cocaine conspiracyRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced that a Ruston man was sentenced Wednesday to 147 months in prison for his role in a cocaine conspiracy that stretched across north Louisiana and led to the seizure of more than $517,000 in cash and resulted in charges for seven defendants.
Shannon D’Lario Jenkins, 34, of Ruston, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. to 87 months in prison on one count of conspiracy to distribute and possess with intent to distribute cocaine and 60 months in prison for possession of a firearm in furtherance of drug trafficking for a total of 147 months. He was also sentenced to four years of supervised release. According to the December 4, 2014 guilty plea, from June 2012 to July 2014, Jenkins along with Quincy D. Hoover, 40, and Quwanda L. Forest, 35, both of Natchez, La.; Jesse C. Thomas, 31, of Haynesville, La.; Rodney J. Raymond, 36, of Natchitoches, La.; Carlos C. Jenkins, 37, of Ruston, and Quincy J. Hobbs, 33, of Grand Prairie, Texas, conspired to distribute cocaine throughout Lincoln, Claiborne, Natchitoches, Sabine, DeSoto, Bossier and Caddo parishes with the source cities for the cocaine being Houston and Dallas. Controlled purchases by law enforcement of cocaine powder and crack cocaine were made from several dealers during the investigation. Federal and local law enforcement officials arrested five of the defendants on July 1, 2014, in the northwest Louisiana area, where more than $517,000 in cash, firearms, 16 pounds of marijuana and other items were seized.
Raymond was sentenced on March 26, 2015, to 97 months in prison and five years of supervised release for conspiracy and possession of a firearm in furtherance of drug trafficking; Forest was sentenced on May 12, 2015, to 47 months in prison and three years of supervised release for conspiracy; and Carlos C. Jenkins was sentenced on June 2, 2015, to 30 months in prison and one year of supervised release for one count of unlawful use of a communication facility. Hobbs, Thomas and Hoover were sentenced on June 29, 2015. Hobbs was sentenced to 87 months in prison and four years of supervised release for conspiracy; Thomas was sentenced to 24 months in prison and three years of supervised release for conspiracy; and Hoover was sentenced to 108 months in prison and five years of supervised release for conspiracy and possession of a firearm in furtherance of drug trafficking.
“The U.S. Attorney's Office, along with our federal, state and local partners, is committed to keeping our communities safe,” Finley stated. “Breaking up this drug distribution ring was a huge step in countering the flow of illegal substances into the community. I want to thank all the agencies who partnered with us on this case and who continue to work to enforce both federal and state narcotics laws.”
The defendants were prosecuted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Pit Stop. The DEA, U.S. Marshals Service, ICE, ATF, Louisiana State Police, Lincoln Parish Sheriff’s Office, Ruston Police Department, Claiborne Parish Sheriff’s Office, Natchitoches Parish Sheriff’s Office, Natchitoches Police Department, Sabine Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, Bossier City Police Department, Shreveport Police Department, Caddo Parish Sheriff’s Office, all participated in this OCDETF operation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations, coordinating the necessary law enforcement entities and resources, and disrupting and dismantling of major drug trafficking organizations.
Assistant U.S. Attorneys James G. Cowles Jr. and Cytheria D. Jernigan prosecuted the case.
Russian Taliban Fighter Sentenced to Life in Prison in Terrorism CaseRead the Press Release
Led Attack on U.S. and Afghan Forces in Afghanistan in 2009Led Attack on U.S. and Afghan Forces in Afghanistan in 2009
Irek Ilgiz Hamidullin, 55, a Russian national and former Russian army tank commander, was sentenced today to life plus 30 years in prison for conspiring to shoot down American helicopters and to kill U.S. and Afghan soldiers, conspiring to use a weapon of mass destruction and several other charges relating to an attack that he led against U.S. and Afghan forces in Afghanistan in November 2009.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul Abbate of the FBI’s Washington, D.C., Field Office made the announcement after sentencing by U.S. District Judge Henry E. Hudson of the Eastern District of Virginia.
“Irek Hamidullin has been sentenced to life in prison for his role in orchestrating and conducting a violent attack on Afghan and U.S. forces in Afghanistan in 2009, and conspiring to kill members of the U.S. military,” said Assistant Attorney General Carlin. “Hamidullin was captured and detained by the U.S. military in Afghanistan and brought to the United States for trial. This case once again demonstrates our resolve to find and bring to justice, using all available tools, those who target U.S. citizens and interests around the world.”
“Few crimes could be more serious than this one,” said U.S. Attorney Boente. “In a well-planned, deliberate, and premeditated attack, Hamidullin led an assault upon an Afghan outpost by a group of insurgents, many of whom he recruited and trained, with the intent to kill Afghan Border Police and responding American forces. Hamidullin is a charismatic proselytizer of the radical views that animate Islamist violence such as that perpetrated by the Taliban and the Haqqani Network upon Americans and Afghans – civilian and military targets alike – especially in 2009 when this attack took place. He not only has the will to do violence himself, but perhaps more dangerously, has the ability and the desire to enlist others to engage in violence. Today’s sentence of life in prison will fulfill our need to protect the public, and will hopefully serve as a deterrent to others contemplating engaging in such actions. I want to commend our trial team and investigating partners for their terrific work in this case.”
“The sentence imposed today on the defendant Hamidullin for masterminding an attack on U.S. military personnel in Afghanistan serves as a reminder of the global reach and determination of the FBI to exact justice through the American legal system,” said Assistant Director in Charge Abbate. “The FBI, together with our partners in the U.S. Attorney’s Office and the U.S. Department of Defense, will continue to relentlessly pursue any person who commits acts of terrorism or supports terrorist organizations targeting American troops, citizens, or interests.”
On Aug. 7, 2015, a federal jury convicted Hamidullin of all 15 counts of the second superseding indictment, which included charges of material support to terrorists, attempted murder of U.S. military personnel, conspiracy to use a weapon of mass destruction and possession of a firearm in connection with a crime of violence. According to court documents and evidence presented at trial, Hamidullin had contact with high-level Taliban and Haqqani Network personnel. On Nov. 28, 2009, Hamidullin led a group of fighters in an attack on a border outpost known as Camp Leyza, located in the Khost Province of Afghanistan, near the border with Pakistan. He had planned the attack for months; received approval from the Taliban and Haqqani Network; recruited other fighters; and acquired weapons for the attack, including IED’s, heavy machine guns and a shoulder-fired rocket, with the intent of shooting down U.S. helicopters responding to the attack.
According to evidence presented at trial, on the night of Nov. 28, 2009, Hamidullin and his fighters initiated their attack with an assault on Camp Leyza. Soon after the attack began, two U.S. Army helicopters responded to Camp Leyza, just as Hamidullin anticipated from his months of planning and reconnaissance. Military witnesses testified at trial that it was a common tactic for insurgents at the time to attack an Afghan position intending to draw in and ambush their real target, the responding U.S. forces.
Hamidullin positioned himself on a nearby hill, away from his fighters, where he had a clear view of the battlefield and could radio orders to his fighters. As the helicopters approached, he ordered his fighters to fire the anti-aircraft weapons he had strategically placed in the area. Both weapons malfunctioned and the helicopters were not fired upon. After the heavy weapons failed to fire, Hamidullin ordered his fighters to pack up their weapons and other gear and return to Pakistan. U.S. military helicopters in the area observed the insurgents “bounding back” in an organized military fashion. Thereafter, a U.S. aircraft spotted the insurgents attempting to set an ambush for the approaching U.S. and Afghan forces. Once the aircraft confirmed that the insurgents were carrying Kalashnikov machine guns and rocket propelled grenade launchers, the U.S. helicopters were given approval to engage the insurgents. U.S. forces ultimately identified and eliminated approximately 20 of Hamidullin’s fighters.
The next morning, as U.S. and Afghan forces were conducting a battle damage assessment, Hamidullin was found hiding on the battlefield. Hamidullin opened fire on the U.S. forces with a Kalashnikov machine gun, but was wounded and captured after a brief firefight. U.S. military personnel testified during the trial that the insurgents were remarkably well-equipped and in addition to the heavy weapons, they were also carrying, for example, GPS devices and $400 military-style watches. During the battle damage assessment, U.S. military personnel found, among other weapons carried by the insurgents, three 50 caliber anti-aircraft machine guns, 82 millimeter recoilless rifles and scores of smaller weapons and grenades. The insurgents were also carrying all the materials necessary to construct three different kinds of improvised explosive devices, which were all of the kind that had been used by insurgents against U.S. forces operating at that time in Khowst Province.
This case was investigated by the FBI’s Washington, D.C., Field Office. The case is being prosecuted by Assistant U.S. Attorney James P. Gillis and former U.S. Attorney Michael Gill of the Eastern District of Virginia and Trial Attorney Jennifer E. Levy of the National Security Division’s Counterterrorism Section.
Russian Taliban Fighter Sentenced to Life in PrisonRead the Press Release
RICHMOND, Va. – Irek Ilgiz Hamidullin, 55, a Russian national and former Russian army tank commander, was sentenced today to life plus 30 years in prison for conspiring to shoot down American helicopters and to kill U.S. and Afghan soldiers, conspiring to use a weapon of mass destruction, and several other charges relating to an attack he led on U.S. and Afghan forces in Afghanistan in November 2009.
“Few crimes could be more serious than this one,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “In a well-planned, deliberate, and premeditated attack, Hamidullin led an assault upon an Afghan outpost by a group of insurgents, many of whom he recruited and trained, with the intent to kill Afghan Border Police and responding American forces. Hamidullin is a charismatic proselytizer of the radical views that animate Islamist violence such as that perpetrated by the Taliban and the Haqqani Network upon Americans and Afghans – civilian and military targets alike – especially in 2009 when this attack took place. He not only has the will to do violence himself, but perhaps more dangerously, has the ability and the desire to enlist others to engage in violence. Today’s sentence of life in prison will fulfill our need to protect the public, and will hopefully serve as a deterrent to others contemplating engaging in such actions. I want to commend our trial team and investigating partners for their terrific work in this case.”
"Irek Hamidullin has been sentenced to life in prison for his role in orchestrating and conducting a violent attack on Afghan and U.S. forces in Afghanistan in 2009, and conspiring to kill members of the U.S. military,” said Assistant Attorney General Carlin. “Hamidullin was captured and detained by the U.S. military in Afghanistan and brought to the United States for trial. This case once again demonstrates our resolve to find and bring to justice, using all available tools, those who target U.S. citizens and interests around the world."
“The sentence imposed today on the defendant Hamidullin for masterminding an attack on U.S. military personnel in Afghanistan serves as a reminder of the global reach and determination of the FBI to exact justice through the American legal system,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “The FBI, together with our partners in the U.S. Attorney’s Office and the U.S. Department of Defense, will continue to relentlessly pursue any person who commits acts of terrorism or supports terrorist organizations targeting American troops, citizens, or interests.”
Hamidullin was convicted by a federal jury of all 15 counts of the second superseding indictment on Aug. 7, 2015, which included charges of material support to terrorists, attempted murder of U.S. military personnel, conspiracy to use a weapon of mass destruction and possession of a firearm in connection with a crime of violence. According to court documents and evidence presented at trial, Hamidullin had contact with high-level Taliban and Haqqani Network personnel. On Nov. 28, 2009, Hamidullin led a group of fighters in an attack on a border outpost known as Camp Leyza, located in the Khost Province of Afghanistan, near the border with Pakistan. He had planned the attack for months; received approval from the Taliban and Haqqani Network; recruited other fighters; and acquired weapons for the attack, including IED’s, heavy machine guns, and a shoulder-fired rocket with the intent of shooting down U.S. helicopters responding to the attack.
According to evidence presented at trial, on the night of Nov. 28, 2009, Hamidullin and his fighters initiated their attack with an assault on Camp Leyza. Soon after the attack began, two U.S. Army helicopters responded to Camp Leyza, just as Hamidullin anticipated from his months of planning and reconnaissance. Military witnesses testified at trial that it was a common tactic for insurgents at the time to attack an Afghan position intending to draw in and ambush their real target, the responding U.S. forces.
Hamidullin positioned himself on a nearby hill, away from his fighters, where he had a clear view of the battlefield and could radio orders to his fighters. As the helicopters approached, he ordered his fighters to fire the anti-aircraft weapons he had strategically placed in the area. Both weapons malfunctioned and the helicopters were not fired upon. After the heavy weapons failed to fir, Hamidullin ordered his fighters to pack up their weapons and other gear and return to Pakistan. U.S. military helicopters in the area observed the insurgents “bounding back” in an organized military fashion. Thereafter, U.S. aircraft spotted the insurgents attempting to set an ambush for the approaching U.S. and Afghan forces. Once the aircraft confirmed that the insurgents were carrying Kalashnikov machine guns and rocket propelled grenade launchers, the U.S. helicopters were given approval to engage the insurgents. U.S. forces ultimately identified and eliminated approximately 20 of Hamidullin’s fighters.
The next morning, as U.S. and Afghan forces were conducting a battle damage assessment, Hamidullin was found hiding on the battlefield. Hamidullin opened fire on the U.S. forces with a Kalashnikov machine gun, but was wounded and captured after a brief firefight. U.S. military personnel testified during the trial that the insurgents were remarkably well-equipped and in addition to the heavy weapons were carrying, for example, GPS devices and $400 military-style watches. During the battle damage assessment, U.S. military personnel found, among other weapons carried by the insurgents, three 50 caliber anti-aircraft machine guns, 82 millimeter recoilless rifles, and scores of smaller weapons and grenades. The insurgents were also carrying all the materials necessary to construct three different kinds of improvised explosive devices, which were all of the kind that had been used by insurgents against U.S. forces operating at that time in Khowst Province.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney James P. Gillis, and former Assistant U.S. Attorney Michael Gill of the Eastern District of Virginia, and Trial Attorney Jennifer E. Levy of the National Security Division’s Counterterrorism Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-00140.
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Romanian National Sentenced for Bank FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARINICA MIREL COTOI, age 37, of Romania, was sentenced today after previously pleading guilty to one count of bank fraud.
U.S. District Judge Nannette Jolivette Brown sentenced COTOI to 8 months of incarceration, followed by two years of supervised release. Additionally, COTOI was ordered to pay restitution to the victim banks and is subject to deportation following completion of his incarceration.
According to court documents, in January 2015, the U.S. Secret Service and the Louisiana Financial Crimes Task Force began investigating the unauthorized collection of debit card numbers through the installation of “skimming devices” on various ATM machines and the subsequent illegal use of fake debit cards. In March of this year, COTOI and another man rented a hotel room in Covington. Shortly thereafter, COTOI was captured on surveillance video using fake debit cards to withdraw funds from three local bank accounts. COTOI later admitted that he illegally entered the United States.
U.S. Attorney Polite praised the work of the U.S. Secret Service and the Louisiana Financial Crimes Task Force with the assistance of the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Edward Rivera and Carter Guice were in charge of the prosecution.
Ride or Die Gang Members Sentenced on Firearm and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PERRY WILSON, a/k/a “Yummy,” age 24, and TYRONE BURTON, a/k/a “Man Man,” age 21, both of New Orleans, were sentenced today after having previously pled guilty to federal firearm and drug violations.
U.S. District Judge Susie Morgan sentenced WILSON and BURTON to 108 months of imprisonment and 60 months of imprisonment, respectively. Additionally, both defendants will serve four years of supervised release following imprisonment.
WILSON and BURTON were two of twelve defendants charged with conspiring to distribute cocaine base in the St. Roch neighborhood. In addition, all twelve defendants were charged with conspiring to possess firearms in furtherance of their drug trafficking crimes. Three defendants were also charged with conspiring to violate the Racketeer Influenced Corrupt Organization Act, as well as substantive acts of violence.
To date, nine defendants charged in this case have pled guilty to various charges. Co-defendant ANDREALIE LEWIS was previously sentenced to 48 months of incarceration; ERVIN SPOONER was previously sentenced to 108 months of incarceration; TRE CLEMENTS was previously sentenced to 96 months; ROMALIS PARKER was previously sentenced to 70 months; TYONE BURTON was previously sentenced to 121 months of incarceration; and NYSON JONES was previously sentenced to 87 months of incarceration. MORRIS SUMMERS, age 25, will be sentenced on December 16, 2015. Three defendants were convicted following trial and pending sentencing as well: DELOYD JONES, a/k/a “Puggy,” age 23; BYRON JONES, a/k/a/ “Big Baby,” age 25; and SIDNEY PATTERSON, a/k/a “Duda Man,” age 24.
According to court documents and evidence presented at trial, the defendants were members and associates of the “Ride or Die” gang, which they also referred to as “R.O.D.” The Ride or Die gang was initially formed in or about 2007 and continued to exist through in or about 2013. During the course of the federal investigation into the gang, agents learned that the defendants used a house, located at 1632 Mandeville Street, among other locations, as a base of operations to package, sell, and store narcotics, as well as store firearms.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the
MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Nolan D. Paige, Marquest Meeks and Special Assistant United States Attorney Brian Ebarb were in charge of the prosecution.
R.I. U.S. Attorney’s Office Collects More Than $6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
PROVIDENCE - U.S. Attorney Peter F. Neronha announced today that the United States Attorney’s Office for the District of Rhode Island collected $6,130,353.07 in criminal and civil actions in Fiscal Year 2015. Of this amount, $2,626,122.75 was collected in criminal actions and $3,504,230.32 was collected in civil actions.
Additionally, Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $16,878,661.95 in cases pursued jointly with these offices. Of this amount $16,878,401.95 was collected in civil actions.
Attorney General Loretta E. Lynch announced today 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 Loretta 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.”
United States Attorney Peter Neronha commented, “The mission of this Office is broad in scope, and includes a commitment to protect the public’s financial and other resources. Public or private, those who harm the environment, engage in financial fraud, or take financial advantage of victims or the public generally, will continue to receive the full attention of both this Office’s Civil and Criminal Divisions, as will those who pose a threat to national security, who violate the public trust, who commit crimes of violence, or who engage in sex trafficking, particularly of minors.”
In 2015, collections included $2,605,661 from American Access Care in settlement to resolve allegations of violations of the False Claims Act; $8,000,000 collected in cooperation with the Eastern District of Wisconsin from PharMerica Corporation in settlement of allegations of violations on the Controlled Substances Act; collection of $450,000 from CVS Health in settlement for allegations of violations of the Controlled Substances Act; and, $127,500 from Wal-Mart, Inc. in settlement of False Claims Act violations for claims submitted to Medicaid.
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.
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 health, safety or environmental laws. In addition, civil debts were collected on behalf of several federal agencies such as the Internal Revenue Service and Health and Human Services.
Additionally, the U.S. Attorney’s Office in Rhode Island, working with partner agencies and divisions, collected $8,261,533 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.
In the District of Rhode Island, the Financial Litigation Unit, working closely with the Asset Forfeiture Unit, collected a total of $2,389,896.28 through its Asset Forfeiture Restoration Program. Included in the above amount is $2,339,210.22 that the District collected from Rocco DeSimone, a former Rhode Island art dealer convicted of defrauding investors. DeSimone was sentenced to 16 years in prison in July 2011, on eight counts of money laundering and mail fraud. The assets that were either sold or returned directly to victims include a 2006 Ford GT sports car which sold at auction for $189,000, a painting by French impressionist Pierre-Auguste Renoir known as "Paysage a Cagnes," which sold at auction for $551,500, and an assortment of Japanese swords.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Psychiatrist and Counselor Indicted for Falsifying Medical Reports to Help Applicants for U.S. Citizenship Bypass Testing RequirementsRead the Press Release
CHICAGO — A psychiatrist and counselor in a Chicago medical practice were arrested today on charges they falsely diagnosed individuals as disabled in order to help them bypass certain tests for U.S. citizenship.
Dr. MAREK WALCZYK and KATARZYNA FERGEMANN fraudulently declared the applicants as suffering from a physical or mental impairment that purportedly rendered them unable to demonstrate the required knowledge of United States history and the English language, according to an indictment returned last month in U.S. District Court in Chicago. A medical certification of impairment allows individuals to seek an exemption from the civics and English-language tests required for naturalized U.S. citizenship.
Federal authorities arrested Walczyk and Fergemann this morning. During an arraignment later in the morning before U.S. Magistrate Judge Maria Valdez, Walczyk and Fergemann pleaded not guilty and were released on $15,000 unsecured appearance bonds. A status hearing was scheduled for Jan. 7, 2016, at 9:45 a.m., before U.S. District Judge Andrea R. Wood.
Walczyk, 59, of Norridge, and Fergemann, 38, of Chicago, are each charged with one count of conspiracy to defraud the United States, and two counts of attempted unlawful procurement of citizenship or naturalization. The conspiracy count is punishable by a maximum sentence of five years in prison, while the attempted unlawful procurement counts each carry a maximum sentence of ten years.
Walczyk is a licensed psychiatrist who operates a medical practice on the Northwest Side of Chicago. Fergemann is employed by the practice as a licensed counselor. According to the indictment, Fergemann prepared a written report stating that she administered diagnostic testing procedures on an individual seeking to apply for U.S. citizenship, and that the tests revealed the individual suffered from a social anxiety disorder, panic disorder and major depressive disorder, as well as a learning impairment resulting from those conditions. Fergemann issued the report knowing that the individual did not suffer from a physical or mental impairment, the indictment states.
Walczyk fraudulently certified Fergemann’s results as true and correct in U.S. Citizenship and Immigration Services Form N-648, titled “Medical Certification for Disability Exceptions,” the indictment states. The false certification allowed the individual to request a physical or mental impairment exception to the civics and English-language tests required for U.S. citizenship, according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James Gibbons, Acting Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorney Philip Fluhr.
Indictment