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Friday 13 November 2015
Judge Sentences Two for Pretending to Be FBI AgentsRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Yamini Potter, 29, of St. Thomas and Alana Liburd, 34, of St. John for impersonating FBI agents, United States Attorney Ronald W. Sharpe announced. Judge Gomez sentenced Potter to 12 months in prison, one year of supervised release, and 200 hours of community service. He sentenced Liburd to 30 days of intermittent confinement to be served on weekends, five years of probation, and 200 hours of community service.
Judge Gomez also ordered Potter and Liburd to pay $6,010 in restitution, joint and several, and a special assessment of $100 each. Potter and Liburd were remanded to the custody of the U.S. Marshals Service to begin serving their sentences.
In July 2015, both Liburd and Potter pleaded guilty to impersonation of a federal officer. According to court records, Potter and Liburd devised a scheme wherein they pretended to be FBI agents, and then persuaded 11 individuals to pay them a total of $6,010 in fees to become FBI agents.
This case was investigated by the FBI and prosecuted by Assistant U.S Attorney Everard E. Potter.
Judge Sentences Former V.I. Army National Guard Major to PrisonRead the Press Release
St. Croix, USVI - District Court Judge Curtis V. Gomez on November 12, 2015 sentenced Sherrymae Morales, 54, of St. Croix, to 12 months and one day in prison, and three years of supervised release, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Morales to serve 200 hours of community service, repay $45,426 in restitution to the Virgin Islands National Guard, and pay a special assessment of $2,100.
On July 1, 2015, after a three-day trial in District Court on St. Croix, the jury found Morales guilty of 21 counts of wire fraud. According to evidence presented at trial, from 2010 until 2011, Morales was employed as a full-time employee with the Virgin Islands National Guard (VING) on St. Croix. At the same time she was employed as a full-time VING employee, Morales also held a full-time contract position with the Military Personnel Services Corporation (MPSC),
which provides employee support services to members of the VING. Evidence presented at trial demonstrated that Morales submitted time sheets to both the MPSC and VING for the same 40-hour work weeks over 14 months.This case was investigated by the United States Army Criminal Investigation Command-Major Procurement Fraud Unit, Defense Criminal Investigative Service, and the Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Everard E. Potter.
Jamestownman Pleads Guilty to Making False StatementsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tyrell Fuqua-Hayes, 38, of Jamestown, NY, pleaded guilty to making false statements and representations to the FBI before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in January 2015, Hayes alleged that he met a man who was arrested in another federal case while they were in custody together at the same jail. The defendant claimed that the man provided him with contact information and advised Hayes that he would be reaching out to him.
In May 2015, Hayes advised the Federal Bureau of Investigation that he was receiving text messages from the man he met in jail indicating that the man wanted to pay the defendant $5000 to kill witnesses in that man’s case. The defendant later admitted he created the text messages himself and that lied about the recent conversations between the man and himself.
The plea is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Rochester Police Department, the Monroe County Sheriff’s office and Immigration and Customs Enforcement, Homeland Security Investigations.
Sentencing is scheduled for February 16, at 9:30 a.m. before Judge Geraci.
Jacksonville Man Convicted of Illegal Possession of A Dozen Firearms and Crack CocaineRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has found Michael Holmes (51, Jacksonville) guilty of possessing multiple firearms as a convicted felon and possessing with the intent to distribute cocaine and crack cocaine. He faces a mandatory minimum penalty of 15 years, up to life, in federal prison for the firearms offense, and up to 20 years’ imprisonment for each of the two drug counts. Holmes elected to waive his right to a jury trial and the case proceeded directly before Judge Corrigan. A sentencing date has not yet been set.
According to court documents, on December 29, 2013, detectives from the Jacksonville Sheriff’s Office questioned Holmes, on the front porch of his home, about complaints related to drug sales occurring at the property. After detecting the smell of marijuana wafting from the front door and Holmes admitting to smoking marijuana, the detectives obtained a warrant to search the home. The detectives recovered 12 firearms, more than 1,100 rounds of ammunition, 20 grams of crack cocaine, 29 grams of powder cocaine, more than 49 grams of marijuana, three digital scales, a bulletproof vest, and approximately $3,600 in cash. Prior to this incident, Holmes had three prior drug felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys Cherie Krigsman and Michael J. Coolican.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Hobbs Man Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Carlos Chavez, 37, of Hobbs, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to being a felon in possession of a firearm under a plea agreement with the U.S. Attorney’s Office.
During today’s proceedings, Chavez pled guilty to a felony information charging him with being a felon in possession of a firearm and ammunition. In entering his guilty plea, Chavez admitted that on June 28, 2015, he unlawfully possessed a firearm and ammunition. At the time, Chavez was prohibited from possessing firearms and ammunition because he had previously been convicted of at least one felony.
At sentencing, Chavez faces a statutory maximum penalty of 10 years in federal prison followed by up to three years of supervised release. Chavez remains in custody pending a sentencing hearing which has yet to be scheduled.
Court records reflect that Chavez was arrested in Aug. 2015, on related state charges filed in the 5th Judicial District Court for the State of New Mexico (Lea County, N.M.).
This case was investigated by the Las Cruces office of the DEA, the Lea County Drug Task Force and the Hobbs Police Department with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hilton Head Man and Walterboro Woman Charged with Wire Fraud and Misprision of a FelonyRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Donald Christy, age 72, of Hilton Head, and Lisa Arnold, age 48, of Walterboro, were charged in a 6-count Information with Wire Fraud and Misprision of a Felony, a violation of Title 18, United States Code, Sections 1343 and 4. The maximum penalty that Christy and Arnold could receive is 20 years imprisonment. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
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Head of Stock Trading Operation Indicted in Cross-Country Scheme to Trade on Inside InformationRead the Press Release
Traded on Information in Violation of Confidentiality Agreements, Netting More Than $3.9 Million During Three-Year Scheme
NEWARK, N.J. – A federal grand jury today indicted the owner and operator of a stock trading operation for his alleged participation in a multi-year insider trading scheme that netted more than $3.9 million in illicit profits, U.S. Attorney Paul J. Fishman announced.
Steven Fishoff, 58, of Westlake Village, California, is charged by indictment with one count of conspiracy to commit securities fraud and four counts of securities fraud.
According to documents filed in this case and statements made in court:
On numerous occasions, Fishoff and his conspirators obtained material nonpublic information related to publicly traded companies and traded on that information before it became public. Between June 2010 and July 2013, Fishoff or one of his traders – conspirators Ronald Chernin, 66, of Oak Park, California; Steven Costantin, 54, of Farmingdale, New Jersey, or a business associate referred to in the indictment as “Trader A”– expressed interest in participating in numerous stock offerings by publicly traded companies. Before providing confidential information to these individuals concerning the companies or the terms of the proposed sales, however, the investment bankers first required that Fishoff, Chernin, Costantin, Trader A, and their associated trading entities, agree to be “brought over the wall,” or “wall-crossed,” standard industry terms that meant they were required to keep the information confidential and could not buy or sell the stock based on the information.
Fishoff, Chernin, Costantin, or Trader A agreed to these disclosure and trading restrictions, then flagrantly breached the agreements. In many instances where Fishoff was not personally wall-crossed in an offering, Chernin, Costantin, and Trader A tipped Fishoff by telephone or by email about the offering prior to the public announcement. Even where Fishoff ostensibly was a party to the confidentiality agreement, through his affiliation with the wall-crossed trading entity, Fishoff breached the agreement by trading on the confidential information and by providing the information to his friends, Paul Petrello, 53, of Boca Raton, Florida, and a conspirator referred to in the indictment as “CC-1,” so that Petrello and CC-1 could engage in parallel trading through their own respective trading entities. There were also instances where Fishoff’s traders, Chernin or Costantin, violated the terms of the confidentiality agreements by using Fishoff trading entities to execute trades themselves before the offering. Fishoff and his conspirators shared the illicit profits from their insider trading scheme.
The conspiracy count with which Fishoff is charged carries a maximum potential penalty of five years in prison and a fine of $250,000. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a fine of $5 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s indictment. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division and Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, as well as Unit Chief Barbara Ward and Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The charges and allegations contained in the indictment are merely accusations, and defendant is presumed innocent unless and until proven guilty.
Defense counsel: Steven D. Feldman Esq., New York
Harrisburg Ambulance Company Fined $250,000; Owner Sentenced to 2 Years Prison and $300,000 Fine for Medicare FraudRead the Press Release
HARRISBURG-The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the owner of a Harrisburg-based ambulance company has been sentenced to 24 months in prison and ordered to pay $494,378 in restitution and fines.
Serge Sivchuk, age 30, the owner of Advantage Medical Transport, Inc, formerly headquartered at 733 Fire House Lane, Harrisburg, was sentenced by US District Court Chief Judge Christopher C. Connor yesterday to the two year term and ordered to pay $194,378 restitution to Medicare. Judge Connor also fined Sivchuk $300,000.
Judge Connor also ordered Advantage to pay $194,378 restitution to Medicare (jointly and severally with Sivchuk), and further ordered the company to pay an additional $250,000 fine.
According to US Attorney Peter Smith, Sivchuk and Advantage were indicted in January 2012 by a Middle District of Pennsylvania grand jury and charged with multiple counts of false statements in health care matters and health care fraud. The charges stemmed from Advantage’s non-emergency, ambulance transport of Harrisburg area dialysis patients between 2009 and 2011. The Indictment alleged Sivchuk defrauded Medicare by submitting hundreds of claims for the nonemergency transport of Medicare beneficiaries because the patients were ambulatory and their ambulance transports were not medically necessary.
Sivchuk pleaded guilty to one count of false statements in health care matters on February 22, 2013; Advantage pleaded guilty to 14 counts of False Statements in Health Care Matters less than 3 months later on May 1, 2013. The Indictment focused on an August 2010 audit and a June 2, 2011 search of Advantage’s business premises by federal law enforcement officers. In response to the audit Sivchuk provided Medicare dozens of ambulance Trip Sheets, which are prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport. The Trip Sheets contain a narrative section that describes the patient’s physical condition and ability to ambulate,. The Trips Sheets serve as the primary support document for each Medicare billed, ambulance transport claim. The June 2, 2011, search by the FBI revealed Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies of other trip sheets that had been re-written and forged to conceal the fact the beneficiaries were ambulatory.
Medicare paid Advantage approximately $166 for each leg of a transport to and from a dialysis treatment center, plus $5.49 per mile. Many dialysis patients underwent 3 treatments per week. Thus, one week’s transport of just one dialysis patient yielded Advantage more than $1,000.
At the time the investigators executed the June 2, 2011, search warrant, the U.S. Attorney’s Office filed a civil action in federal court that froze more than $875,000 in Sivchuk controlled bank accounts. The government intends to recoup the restitution and fines imposed by Judge Connor today from these frozen bank accounts.
The case is part of a priority program within the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Pennsylvania focusing on health care fraud. The case was prosecuted by Assistant U.S. Attorneys Kim Douglas Daniel and Anthony Scicchitano, and was investigated by the Harrisburg Offices of the HHS Inspector General’s Office and the FBI.
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Gore Woman Sentenced to 21 Months, $146,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TAMMY JEAN McDANIELS, age 56, of Gore, Oklahoma, was sentenced to 21 months imprisonment and three years of supervised release for WIRE FRAUD, in violation of Title 18, United States Code, Section 1343. McDANIELS was also ordered to pay $146,004.80 in restitution.
The defendant entered a guilty plea in June 2015 a criminal Information alleging that from on or about October 1, 2012 to on or about December 19, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant, TAMMY JEAN McDANIELS, devised and intended to devise a scheme to defraud Bacone College, and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The investigation revealed that the defendant, while employed as the Human Resources Director at Bacone College, fraudulently reactivated the employment status of former adjunct professors and had the fraudulent salary paid directly into her bank account.
The Honorable James H. Payne presided over the sentencing hearing. The defendant was ordered to self-report to the United States Bureau of Prisons on February 15, 2016 to begin serving her non-paroleable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Glen Burnie Woman Admits to Stealing Prescription Slips from Her Employer-Doctor and Writing Fraudulent Prescriptions for OxycodoneRead the Press Release
Baltimore, Maryland – Robin McClosky Andrews, age 51, of Glen Burnie, Maryland pleaded guilty today to conspiring to distribute and possess with intent to distribute oxycodone.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to her plea agreement, from 2009 until 2012, Andrews stole prescription slips from a doctor she worked for, and wrote fraudulent prescriptions for oxycodone in a number of different names. Her husband had individuals fill the prescriptions at pharmacies and provide him with the pills. The individuals were generally paid $100 for each prescription they filled. The oxycodone pills were then sold to co-defendant Michael Cudnik and others.
The investigation identified more than 350 fraudulent prescriptions were written. Most of the prescriptions were for 90 Percocet 10 milligram pills, totaling 300,000 milligrams of oxycodone. Accordingly, Robin Andrews was found to be responsible for the distribution of at least 300,000 milligrams of oxycodone.
Robin Andrews faces a maximum sentence of 20 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for February 2, 2016 at 9:30 a.m.
Michael Joseph Cudnik, age 57, of Baltimore, has pleaded guilty to his role in the conspiracy and is scheduled to be sentenced. Robin Andrews’ husband passed away on October 21, 2015.
United States Attorney Rod J. Rosenstein commended the HHS Office of Inspector General, DEA and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who is prosecuting the case.
Gahanna Woman Pleads Guilty to Illegally Receiving VA BenefitsRead the Press Release
COLUMBUS, Ohio – Rita Green, 55, of Gahanna, Ohio, pleaded guilty in U.S. District Court to theft of public money by illegally receiving Department of Veterans Affairs Dependency Indemnity Compensation benefits.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs Office of Inspector General (VA-OIG), Cleveland, Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, Green kept $89,646.22 of Department of Veterans Affairs Dependency Indemnity Compensation benefits to which she knew she was not entitled. Green’s mother was a recipient of the benefits, which are paid to surviving spouses of veterans who died in the line of duty or died from a disease or injury incurred or aggravated while on active duty. Those benefits were paid monthly to a bank account in the mother’s name.
Green’s mother died in 2009 but the VA, unaware of her death, continued depositing money into her account. Green kept the account open and converted this money to her own use by withdrawing funds and making purchases using a debit card in her mother’s name. Green also failed to disclose these VA payments on a Free Application for Federal Student Aid (FAFSA) submitted in 2012.
Theft of public money is a crime punishable by up to 10 years in prison and a $250,000 fine.
U.S. Attorney Stewart commended the investigation of this case by the VA-OIG and the FBI, and Assistant U.S. Attorney Peter Glenn-Applegate, who is prosecuting the case.
Franklinville, New Jersey, Man Sentenced to 57 Months in Prison for Using Fraudulent Invoices to Steal More Than $600,000 from Elementary Schools Across the U.S.Read the Press Release
CAMDEN, N.J. – A Franklinville, New Jersey, man was sentenced today to 57 months in prison for mailing fraudulent invoices for non-existent workbooks to more than 73,000 schools throughout the United States, U.S. Attorney Paul J. Fishman announced.
Robert S. Armstrong, 45, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count Two of a superseding indictment charging him with mail fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Armstrong admitted that from July 2014 through September 2014, he sent more than 73,000 fraudulent invoices to schools throughout the United States seeking payment for non-existent workbooks. Armstrong opened mail boxes in Sewell, New Jersey, and Las Vegas, Nevada, under the name of his business, Scholastic School Supply LLC. Armstrong then drafted fraudulent invoices typically seeking payments of $647.50 for batches of math or language workbooks that the schools never ordered or received. In order to make the invoices appear legitimate, Armstrong included phony International Standard Book Numbers (ISBN), which are unique identifying numbers assigned to each book published in the United States.
Armstrong used a bulk mailing company to mail the phony invoices to more than 73,000 schools. Each invoice included a payment envelope preaddressed to Scholastic School Supply’s Sewell or Las Vegas address.
In response to the phony invoices, hundreds of schools throughout the United States sent payments to Scholastic School Supply. Armstrong deposited the checks from the victim schools into at least seven accounts that he had opened at various banks in the name of Scholastic School Supply. As of March 12, 2015, 938 schools sent a total of $612,774 in checks to Scholastic School Supply.
Armstrong originally pleaded guilty to Count One of the superseding indictment on June 12, 2015 and agreed to serve a stipulated sentence of 44 months in prison. According to the Federal Rules of Criminal Procedure, when the parties agree to a stipulated sentence, the judge has the opportunity to accept or reject the plea agreement. Judge Hillman rejected the agreement, and Armstrong entered a new plea agreement on Sept. 15, 2015 in which he pleaded guilty to Count Two of the superseding indictment and agreed to a stipulated sentence of 51 to 63 months in prison.
In addition to prison term, Judge Hillman sentenced Armstrong to serve three years of supervised release. A restitution hearing will be held on Dec. 22, 2015.
U.S. Attorney Fishman credited law enforcement officers of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch in Philadelphia; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; the Gloucester County Office of Consumer Protection, under the direction of Harold H. Spence Jr., Director of Consumer Affairs; the Washington Township Police Department, under the direction of Raphael Muniz, Chief of Police; and the Franklin Township Police Department, under the direction of Lawrence W. Roberts, Chief of Police.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office Criminal Division in Camden and Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey.
Former TSA Officer Sentenced for Stealing Items from Passengers’ LuggageRead the Press Release
ALEXANDRIA, Va. – Douglas Wayne DeWeese, 55, of Damascus, Maryland, was sentenced today to 10 months in prison for theft of property in interstate commerce, along with two years of supervised release and restitution.
DeWeese pleaded guilty on Aug. 20, 2015. According to court documents, from 2008 through 2012, DeWeese was employed by the Transportation Security Administration (TSA) as a Transportation Security Officer responsible for inspecting checked bags at Washington-Dulles International Airport. While on duty, DeWeese stole items and valuables from passengers’ luggage, including electronics, jewelry and currency. The defendant transported the stolen items from the airport to his home in Maryland. DeWeese is no longer a TSA employee.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Peter Neffenger, Administrator of the Transportation Security Administration; 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 Anthony J. Trenga. The case was investigated by the Internal Affairs Division of TSA’s Office of Inspection, FBI’s Washington Field Office, and the Metropolitan Washington Airports Authority. Assistant U.S. Attorney Kimberly R. Pedersen and Special Assistant U.S. Attorney William Glaser are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-145.
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Former Executive with Screen Actors Guild Pension Plan Pleads Guilty to Tax Charge Stemming for Failing to Report IncomeRead the Press Release
LOS ANGELES – The former chief information officer for the Screen Actors Guild’s Producers Pension and Health Plan (PPHP) has pleaded guilty to filing a false tax return in which he failed to report income he received from contractors hired to upgrade the PPHP computer system.
Nader Karimi, 51, of Los Angeles, pleaded guilty Thursday afternoon to one felony count of subscribing to a false tax return.
When he pleaded guilty before United States District Judge Fernando M. Olguin, Karimi admitted lying on his 2008 federal tax return that failed to report $454,666 in income. Over the course of the years 2005 through 2008, Karimi failed to report a total of approximately $711,000 in taxable income, according to his plea agreement.
Karimi was responsible for modernizing PPHP’s computer systems, and in that capacity he had the authority to enter into contracts on behalf of PPHP. Over a four-year period, Karimi entered into agreements with vendors that agreed to pay a portion of the money they received from PPHP to a company affiliated with Karimi, Enterprise Technology and Management Services. The payments to ETMS totaled $711,000, and Karimi used the sums for personal expenses while not declaring them as income on his tax returns.
“Individuals entrusted with the pension and health care funds of others must be held to the highest standard of conduct,” said United States Attorney Eileen M. Decker. “The Department of Justice will do everything within its power to bring to justice those who abuse a position of trust for personal gain.”
Judge Olguin is scheduled to sentence Karimi on March 11, 2016, at which time he faces a statutory maximum of three years in federal prison.
Karimi has agreed to file amended tax returns, pay back taxes, and make an additional restitution payment of at least $100,000 to PPHP.
This case is the result of an investigation by the United States Department of Labor – Office of Inspector General, the Labor Department’s Employee Benefits Security Administration, IRS Criminal Investigation, and the FBI.
Former East Carolina University Pharmacy Adminstrator Pleads Guilty to Filing Fraudulent Documents to Stock Pharmacy InventoryRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that Tuesday in federal court, LEIGH LANGLEY COBB, 43, of Winterville, North Carolina, pleaded guilty to Making Materially False, Fictitious, and Fraudulent Statements and Entries Concerning Health Care Matters.
According to the Criminal Information to which COBB pleaded guilty, between the years 2000 and 2012, COBB worked for one of several clinics and pharmacies operated by the Brody School of Medicine, within East Carolina University (ECU) in Greenville, North Carolina. COBB had responsibilities pertaining to the receipt and dissemination of drugs to ECU patients. COBB also assisted patients at one of the Brody School of Medicine’s various clinics to apply to participating drug companies to receive medicine at a reduced rate, through what are known as Patient Assistance Programs (PAPs).
Between January of 2010 and October of 2012, COBB falsified numerous PAP applications and transmitted them to various victim drug companies. The applications were false because many of the prescriptions contained within them were fraudulent and forged. While in many instances patients at ECU’s clinics genuinely sought medicine from the drug companies pursuant to the PAP programs, COBB added numerous additional drugs to the applications for which the patient did not have a prescription, and which were not medically necessary for the patient. In many instances, the patient at issue had not been prescribed any of the medications listed on the application, and the physicians identified were not the physicians of record for the patients listed on the application. To cause the drug companies to supply these drugs, COBB forged signatures of both physicians and patients. One such false application occurred on March 27, 2012.
After receiving the false applications transmitted by COBB on behalf of ECU patients, the drug companies relied upon them and shipped medicines to The Bernstein Center Pharmacy, within the ECU system, that were not covered by a doctor’s prescription. COBB received the Unauthorized Drugs and placed them into The Bernstein Center Pharmacy’s drug inventory for later dissemination and sale to other patients.
The total losses from the offense are unknown, but the parties are in agreement that the losses are between $550,000 and $1.5 Million.
At sentencing, COBB faces up to 5 years in prison and 3 years of supervise release. The defendant also faces a fine of up to $250,000 and restitution if ordered by the court.
The investigation of this case was conducted by the East Carolina University Police Department and the United States Food and Drug Administration – Office of Criminal Investigations. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represents the United States.
Former CEO of Baltimore Behavioral Health Sentenced to 30 MonthsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced the former chief executive officer (CEO) of Baltimore Behavioral Health (BBH), William Kristen Hathaway, age 52, of Ellicott City, Maryland, today to 24 months in prison and six months of home detention, followed by three years of supervised release, for failing to pay to the IRS more than $2.4 million in payroll taxes deducted from the paychecks of BBH employees, and for stealing more than $53,000 from the BBH employee benefit plan. Judge Bennett also entered an order requiring Hathaway to pay restitution of $2,495,799 to the IRS and $915,576 to the Comptroller of the State of Maryland.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“As chief executive officer of a primary ‘charitable’ organization funded by the government to treat Baltimore drug addicts, William Kristen Hathaway paid lucrative salaries to his family members while cheating the IRS and the employee pension plan,” said U.S. Attorney Rod J. Rosenstein. “This case highlights the need for close oversight of organizations that receive public funds.”
“Hathaway abused his position of trust at Baltimore Behavioral Health,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through manipulation and theft, Hathaway’s scheme left the American taxpayers and the employees of Baltimore Behavioral Health with the tab for his greed.”
“Hathaway’s fraudulent actions hurt the livelihood of BBH employees. Today’s sentencing sends a clear message that this type of fraudulent activity is reprehensible and individuals committing these types of acts will be held accountable.” stated Special Agent in Charge Steven D. Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to Hathaway’s plea agreement, he was the CEO for BBH, a tax-exempt organization that provided treatment to people with drug addictions and mental disorders. Hathaway exercised significant control over many aspects of BBH’s business affairs, including managing the company’s financial accounts and overseeing the employee payroll process, which included calculating the withholding of taxes and contributing to and maintaining employee benefit plans. The Board of Directors for BBH was primarily comprised of Hathaway’s relatives, including his wife, his sister, and his mother. Board members were paid a salary.
Hathaway admitted that from March 2009 through December 2011, he regularly deducted payroll taxes from all employees’ wages without forwarding the money to the IRS. For example in the second quarter of 2009, Hathaway caused $344,112.26 in federal payroll taxes to be withheld from employees’ wages, but he elected not to pay that amount over to the IRS. Hathaway admitted withholding a total of $2,495,779 in payroll taxes from March 2009 through December 2011, but instead of forwarding those funds to the IRS, he spent the money on company expenses. For example, during the same period, Hathaway authorized a total of $2,730,752 in salaries to BBH officers, including himself, and contractual payments to an entity owned and operated by his mother and stepfather.
Hathaway also served as a fiduciary for the employee pension plan and was responsible for transferring employee contributions to the retirement plan, as well as any matching company contributions to the custodian of assets for the BBH employee pension plan. Hathaway admitted that from September 2009 through April 2010, Hathaway diverted $53,530.07 in employee contributions to the BBH employee pension plan to pay company expenses, instead of transferring those funds to the custodian of assets.
United States Attorney Rod J. Rosenstein commended the IRS – CI and the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation and the Employee Benefits Security Administration for its assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who prosecuted the case.
Former Assistant Manager of the Wilkes-Barre City Employees Federal Credit Union Receives A Sentence of Two Years Supervised Release for Bank FraudRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Assistant Manager of the Wilkes-Barre City Employees Federal Credit Union was sentenced yesterday by United States District Judge A. Richard Caputo to a sentence of time served followed by two years of supervised release.
According to United States Attorney Peter Smith, Amanda Magda, age 29, of Wilkes-Barre, pleaded guilty to aiding and abetting bank fraud in January 2015. Magda was charged in a superseding indictment with codefendant, Leo Glodzik. The charges stem from a scheme involving a former Wilkes-Barre police officer, Tino Ninotti, and Glodzik, a contractor for the city, involving Ninotti allegedly conspired with Glodzik to secure a loan from the credit union by using false and fraudulent collateral. Magda falsely witnessed the signature of another person to the loan agreement which was actually forged by Ninotti. Magda no longer is employed at the credit union, which is under new management and has instituted new policies and procedures to address the problems and eliminate the abuses that led to the fraud prosecutions.
The charges against Leo Glodzik are still pending. Tino Ninotti pleaded guilty to conspiracy to commit bank fraud in April 2015 and sentencing is scheduled for December 1, 2015.
The investigation was conducted jointly by the Federal Bureau of Investigation and the Pennsylvania State Police.
Prosecution is assigned to Assistant United States Attorney Michelle L. Olshefski.
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Former Amtrak Police Department Officer Sentenced in Manhattan Federal Court for Embezzling Union FundsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that ERIC GIVENS, a former police officer with the National Railroad Passenger Corporation (“Amtrak”), and the former treasurer of the national union for Amtrak police officers, was sentenced in Manhattan federal court late yesterday to 16 months in prison for embezzling union funds. GIVENS previously pled guilty before U.S. District Judge Analisa Torres, who imposed yesterday’s sentence.
According to the Complaint, Indictment, public filings, and statements made during the sentencing proceeding:
GIVENS was employed as a police officer with Amtrak since May 1997, and was most recently assigned to Penn Station, in New York, New York. GIVENS served as the elected treasurer of the Amtrak Police Lodge 189 Labor Committee (the “Labor Committee”), the national union for Amtrak police officers, from 2003 through January 2010. During the same period, and continuing until November 2013, GIVENS also served as the elected treasurer of Amtrak Police Lodge 189 Inc. (the “Lodge”), a fraternal organization affiliated with the Labor Committee.
Starting in 2008, GIVENS stole more than $120,000 in total from the Labor Committee and Lodge by fraudulently charging personal expenses to the Labor Committee and Lodge and by withdrawing cash for his own purposes, and took steps to hide what he had done. During this period, GIVENS used the debit card of the Labor Committee to pay for, among other things, gasoline and food, and used the debit card of the Lodge to pay for, among other things, travel, hotels in multiple cities, and entertainment in New York and New Jersey. GIVENS also withdrew thousands of dollars in cash from Labor Committee and Lodge bank accounts.
* * *
GIVENS, 53, of East Stroudsburg, Pennsylvania, pled guilty to one count of embezzlement of union funds. In addition to the prison term, GIVENS was sentenced to three years of supervised release, and was ordered to pay approximately $127,000 in restitution, and to forfeit approximately $12,000.
Mr. Bharara praised the outstanding work of the U.S. Department of Labor’s Office of Labor-Management Standards and its Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations. Mr. Bharara also thanked the Amtrak Police Department’s Office of Internal Affairs for its assistance.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.
Former Accounting Manager Pleads Guilty to Embezzling Nearly $400,000 from Huntersville-Area EmployerRead the Press Release
CHARLOTTE, N.C. – Amy Hilty, 38, formerly of Stanley, N.C. and now residing in Dalton, Ohio, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to stealing nearly $400,000 from her former employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Hilty pleaded to one count of wire fraud and one count of tax evasion.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed documents and today’s court proceedings, from 2008 to 2012, Hilty was employed as accounting manager for a company located in Huntersville, N.C. As the company’s accounting manager, Hilty’s responsibilities included preparing the company’s financial statements, maintaining QuickBooks, preparing payroll and making bank deposits. According to court records, Hitly used her access to the company’s accounting system to divert company funds to bank accounts she controlled. According to court records, Hilty covered her fraud by falsely recording the stolen funds in the company’s books and records as supplies, owner withdrawals and travel expenses, among others. In this manner, court records show that Hilty embezzled $390,156.73 from the company during the relevant time period and used the money to purchase a new home and a BMW vehicle. Court records also show that for tax years 2008 through 2011, Hilty did not file federal income tax returns, and failed to report the diverted income and her salary from the victim company, totaling $520,976.17.
Hilty was released on bond after her plea hearing. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. The tax fraud charge carries a maximum prison term of five years and a $250,000 fine. As part of her plea agreement, Hilty has agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
The investigation was handled by the IRS-CI. The prosecution for the government is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Financial Customer Service Specialist Sentenced for Bilking Deceased Sisters’ Estate of $1.2 Million DollarsRead the Press Release
PROVIDENCE, R.I. – Ronald Hunt, 45, of Collinsville, Ill., a former financial customer service specialist for Columbia Management Investment Services (CMIS), a subsidiary of Ameriprise Financial, was sentenced today to 18 months in federal prison for defrauding the estate of two deceased sisters from Galway, Ireland, of more than $1.2 million dollars, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the United States Secret Service.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Hunt, formerly of Bristol, R.I., to serve two years supervised release and 100 hours of community service upon completion of his prison sentence. Hunt pleaded guilty on July 16, 2015, to wire fraud.
According to court documents, in March 2013, while working at a CMIS call center in Providence, Hunt used his position to research deceased clients who had unredeemed Ameriprise Financial accounts and no listed beneficiaries. Hunt identified two such accounts belonging to deceased sisters in Galway, Ireland.
According to court documents, in May 2013, Hunt submitted redemption paperwork for the two sisters’ accounts, using the alias “Sean Kane,” as the executor for the accounts. On May 20, 2013, using the alias, Hunt transferred $769,242.24 from one sister’s account and $459,531.91 from the second sister’s account into a CMIS account he created. Two days later he transferred the entire amount, $1,228,774.15, to a fictitious business bank account he created. On May 23, 2013, and again on August 29, 2013, Hunt withdrew funds totaling $750,000 from the business account.
Amerprise Financial recovered nearly all of the stolen funds. At sentencing, U.S. District Court Chief Judge Smith ordered Hunt to pay restitution in the amount of nearly $21,000, which represents the balance of the amount of money stolen from the sisters’ estates which was not previously recovered.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Assistant U.S Attorney John P. McAdams.
The matter was investigated by the United States Secret Service, with the assistance of the Securities and Exchange Commission, Division of Enforcement.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Felon Sentenced to Eight Months Prison for Illegally Re-Entering the United States from MexicoRead the Press Release
A man who illegally re-entered the country was sentenced on November 9, 2015, to eight months in federal prison.
Baudilio Perez-Ramirez, age 34, from Guatemala, received the prison term after a September 14, 2015, guilty plea to one count of felon found after illegal re-entry.
At the guilty plea, Perez-Ramirez admitted he illegally re-entered the United States after being deported on December 15, 2011. Perez-Ramirez came to the attention of Immigration and Customs Enforcement (ICE) officials on August 19, 2015, when he was arrested in Sioux City after fleeing from officers attempting to establish his identity. Perez-Ramirez had previously been deported after being convicted of fraud and misuse of documents to obtain employment and re-entry of a removed alien in the United States District Court for the Northern District of Iowa on November 10, 2011.
Perez-Ramirez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Perez-Ramirez was sentenced to eight months imprisonment. He must serve a 1-year term of supervised release. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Immigration and Customs Enforcement (ICE) and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-4056.
Follow us on Twitter @USAO_NDIA.
Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Jeremiah Pashuta, 36, pled guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Aug. 6, 2013, Pashuta possessed a sawed-off shotgun and two semi-automatic pistols on the day Pittsburgh Police Officers executed a search warrant at his residence. Police also located approximately 649 stamp bags containing a total of approximately 13 grams of heroin, thousands of dollars in cash, a drug scale and records of drug debts.
Pashuta has had multiple state court convictions for drug dealing, illegal gun possession and threats in the past. Federal law makes it illegal for a person to possess a firearm or ammunition after a state court conviction for an offense carrying a maximum penalty of more than 2 years in prison.
Judge Hornak scheduled sentencing for June 15, 2016, at 9:30 a.m. The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Cindy K. Chung and Ross E. Lenhardt are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the prosecution of Pashuta. 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.
Federal Murder Charges Unveiled in 73-Count Indictment Against Gang MembersRead the Press Release
SAN JOSE – A 73-count superseding indictment was unsealed today charging nine defendants with racketeering, murder, attempted murder, armed bank robbery, robbery affecting interstate commerce, and the use of firearms, announced Acting United States Attorney Brian J. Stretch. The arrests followed an investigation referred to as “Operation Daybreak,” so named for the early morning attacks that characterized the alleged criminal activity in this case.
Eight of the defendants- Daniel Chavez, AKA Youngster (age 33); Victor Skates, AKA Demon (age 26); Eduardo Lebron, AKA Warlord (age 36); Eder Torres, AKA Flaco (age 29); Julian Ruiz, AKA JJ (age 26); Antonio Cruz (age 28); Terrell Golden, AKA G (age 24); and Anthony Lek (age 28) are alleged to be Salinas-based Norteño gang members, while the ninth defendant, Robert Loera (age 35), is alleged to be an associate of the gang. According to the superseding indictment, all nine defendants conspired to commit murder and other violent crimes as part of a criminal RICO enterprise tied to their Norteño gang activity. The superseding indictment alleges that, over a two year time period, the defendants committed 12 murders, seven attempted murders, and seven bank robberies.
With respect to the murders and attempted murders, the superseding indictment alleges that the defendants hunted for rival gang members and other enemies, and shot and killed them and others suspected of being rival gang members. One of the homicides charged in the superseding indictment occurred on the campus of Alisal High School in Salinas, California.
“We greatly appreciate the tireless efforts of the Salinas Police Department in reducing violent crime in the Salinas Valley,” said U.S. Attorney Brian J. Stretch. “Operation Daybreak has been a critical part of exposing crime in the area. While there remains more work to be done, today’s indictment is the result of collective leadership of the Salinas Police Department, and the FBI.”
"This years-long investigation involved thousands of investigative hours by Salinas police detectives with the assistance of the Federal Bureau of Investigation,” said Chief Kelly J. McMillin of the Salinas Police Department. “This case demonstrates what we have known for many years; that very few individuals drive the majority of violence in Salinas. It should also serve to remind us all that the role of prevention and intervention efforts cannot be overlooked and in fact must be strengthened further to ensure other young men never think it's okay to shoot another. The Salinas Police Department would like to thank the people of the Office of the United States Attorney, Northern District of California, for their incredible dedication to bringing these individuals to justice."
As alleged in the superseding indictment, the armed bank robberies occurred in the cities of Salinas, Watsonville, and San Jose. In addition, there was an armed robbery of a Zales jewelry store in Gilroy.
All nine defendants have been charged with the crimes set forth in the first four counts of the superseding indictment:
- racketeering conspiracy, in violation of 18 U.S.C. § 1962(d);
- conspiracy to commit murder and assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959;
- use of firearms in furtherance of crimes of violence, in violation of 18 U.S.C. § 924(c); and
- robbery and conspiracy to commit robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a).
In addition, the following defendants have been charged with the following counts and additional crimes under the indictment:
Defendant
Charges
Counts in the Indictment
Daniel Chavez a/k/a Youngster
Murder in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(1) and 2
Use of Firearm Causing Murder, in violation of 18 U.S.C. § 924(j)
Assault with a Dangerous Weapon in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Attempted Murder in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(5) and 2
Conspiracy to Commit Robbery Affecting Interstate Commerce, in violation of 18 U.S.C. §§ 1951(a) and 2
Robbery and Conspiracy to Commit Robbery of Banks and Credit Unions, in violation of 18 U.S.C. §§ 2113(a) and (d), and 371
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
5-14, 21- 33,
46-48, 65-67,
71-73
Victor Skates a/k/a Demon
Murder in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(1) and 2
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3), (5) and 2
Conspiracy to Commit Robbery Affecting Interstate Commerce, in violation of 18 U.S.C. § 1951(a) and 2
Robbery and Conspiracy to Commit Robbery of Banks and Credit Unions, in violation of 18 U.S.C. §§ 2113(a) and (d), and 2
Use of Firearm Causing Murder, in violation of 18 U.S.C. § 924(j)
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
5-17, 21-25, 29-34, 38-44, 46-55, 59-64, 68-70
Eduardo Lebron a/k/a Warlord
Murder in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(1)
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3), (5) and 2
Use of Firearm Causing Murder, in violation of 18 U.S.C. § 924(j)
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
35-37, 49-58
Eder Torres a/k/a Flaco
Murder in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(1)
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3), (5) and 2
Use of Firearm Causing Murder, in violation of 18 U.S.C. § 924(j)
Assault with a Dangerous Weapon in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Conspiracy to Commit Robbery Affecting Interstate Commerce, in violation of 18 U.S.C. § 1951(a) and 2
Robbery and Conspiracy to Commit Robbery of Banks and Credit Unions, in violation of 18 U.S.C. §§ 2113(a) and (d), and 371
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
5-7, 29-31,
65-67, 71-73
Julian Ruiz a/k/a JJ
Only charges in counts 1-4
Only counts 1-4
Antonio Cruz
Murder in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(1)
Use of Firearm Causing Murder, in violation of 18 U.S.C. § 924(j)
Conspiracy to Commit Robbery Affecting Interstate Commerce, in violation of 18 U.S.C. § 1951(a) and 2
Robbery and Conspiracy to Commit Robbery of Banks and Credit Unions, in violation of 18 U.S.C. §§ 2113(a) and (d), and 371
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
5-7, 18-20,
24-28, 59-64,
68-70
Terrell Golden a/k/a G
Murder in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(1)
Use of Firearm Causing Murder, in violation of 18 U.S.C. § 924(j)
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
15-17
Anthony Lek
Conspiracy to Commit Robbery Affecting Interstate Commerce, in violation of 18 U.S.C. § 1951(a)
Robbery and Conspiracy to Commit Robbery of Banks and Credit Unions, in violation of 18 U.S.C. §§ 2113(a) and (d), and 371
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
5-7, 24, 25
Robert Loera
Conspiracy to Commit Robbery Affecting Interstate Commerce, in violation of 18 U.S.C. § 1951(a)
Robbery and Conspiracy to Commit Robbery of Banks and Credit Unions, in violation of 18 U.S.C. §§ 2113(a) and (d), and 371
Use of Firearm in Furtherance of Crime of Violence, in violation of 18 U.S.C. §§ 924(c)(1)(A) and 2
Accessory After the Fact to Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(5) and 3
5-7, 45
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum penalty each defendant faces upon conviction is life imprisonment. Chavez, Skates, Golden, Cruz, Torres, and Lebron are charged with death-eligible offenses. The decision whether to seek the death penalty against any or all of these defendants is pending. Additionally, periods of supervised release, fines, forfeitures, and special assessments also could be imposed. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants are all currently in law enforcement custody in various jurisdictions, including in the custody of the United States Marshals Service. Defendants are scheduled to appear before the Honorable Lucy Koh, United States District Judge, on Wednesday, November 18, 2015, at 9:30 a.m.
Assistant U.S. Attorney Stephen Meyer is prosecuting the case with the assistance of Nina Burney and Susan Kreider. The prosecution is the result of an investigation by the Salinas Police Department.
Federal Jury Convicts Brothers in Visa Fraud CaseRead the Press Release
DALLAS — Following a six-day trial before U.S. District Judge Barbara M. G. Lynn, a federal jury has convicted two brothers on felony offenses stemming from a conspiracy they ran, from approximately March 2005 to February 2011, to commit visa fraud to secure a low-cost workforce at their information technology consulting company headquartered in Carrollton, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Atul Nanda, 46, and his brother, Jiten “Jay” Nanda, 44, were each convicted on one count of conspiracy to commit visa fraud, one count of conspiracy to harbor illegal aliens, and four counts of wire fraud. The conspiracy to commit visa fraud count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. The conspiracy to harbor illegal aliens count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each wire fraud count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Both men were allowed to remain on bond, pending a detention hearing on Friday, November 13, 2015. A sentencing date was not set.
Dibon Solutions is an information technology consulting company located on Chenault Drive in Carrollton; it is a family operation created by the Nanda family. Atul and Jiten Nanda created, established and ran the corporation that they used to commit fraud through the H1-B visa program.
The H-1B visa program allows businesses in the U.S., such as Dibon, to temporarily employ foreign workers with specialized or technical expertise in a particular field such as accounting, engineering or computer science.
The government presented evidence at trial that as part of their scheme, the Nanda brothers recruited foreign workers with expertise who wanted to work in the U.S. They sponsored the workers’ H-1B visa with the stated purpose of working at Dibon headquarters in Carrolton, but, in fact, did not have an actual position at the time they were recruited and knew the workers would ultimately provide consulting services to third-party companies located throughout the U.S. Contrary to representations made by the conspirators to the workers (and the government), Jay and Atul Nanda directed that the workers only be paid for time spent working at a third-party company and only if the third-party company actually first paid Dibon for the workers’ services. Additionally, in Dibon’s visa paperwork, the conspirators falsely represented that the workers had full-time positions and were paid an annual salary, as required by regulation to secure the visas.
This scheme, according to evidence presented at trial, provided the conspirators with a labor pool of inexpensive, skilled foreign workers who could be used on an “as needed” basis. The scheme was profitable because it required minimal overhead and Dibon could charge significant hourly rates for a computer consultant’s services. Thus, the Nandas, as Dibon’s owners, earned a substantial profit margin when a consultant was assigned to a project and incurred few costs when a worker was without billable work. This scheme is known as “benching.” Dibon actively recruited H-1B workers for the “bench.”
The government presented further evidence that the Nandas required the H-1B visa candidates to pay the processing fees that the law requires to be paid by the company. The evidence at trial showed that the Nandas attempted to hide this by having the H-1B candidates pay the fees directly to Dibon either with cash or a check written to “Dibon Training Center.”
The case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations and the U.S. Department of State.
Special Assistant U.S. Attorney Danial Gividen and Assistant U.S. Attorney Paul Yanowitch prosecuted.
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El Salvadorian Man Sentenced to Ten Years in Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Timothy Colhour, age 24, of Otis, Oregon, was sentenced today to a total of 170 months in federal prison followed by three years of supervised release and ordered to pay a $4,800.00 fine on one count of Distribution of Methamphetamine and one count of Use of a Firearm During and in Relation to a Drug Trafficking Offense. The Honorable Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
According to court records, in December, 2014, as part of an investigation into the trafficking of methamphetamine in the region, a confidential source indicated to officers that he or she could purchase methamphetamine from the defendant, Timothy Colhour. On December 21, 2014, Colhour distributed methamphetamine, and later arranged to conduct a second transaction on December 23, 2014. When investigating officers arrived at the location where Colhour was to distribute the methamphetamine, they made contact with Colhour, and found him to be in possession of approximately 26.16 grams of pure methamphetamine hydrochloride and a loaded 9 mm handgun.
This case was investigated by the Rogers Police Department, the 4th Judicial Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA). Assistant United States Attorney Kimberly Davis prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
District Man Sentenced to over 11 Years in Prison for Sexually Abusing Child RelativeRead the Press Release
WASHINGTON – A 30-year-old man from Washington, D.C. was sentenced today to a prison term of 11 years and three months on a felony charge stemming from the sexual abuse of a child who is a relative, U.S. Attorney Channing D. Phillips announced
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in September 2015, in the Superior Court of the District of Columbia, to one count of first-degree child sexual abuse. The plea, which was contingent upon the Court’s approval, called for a prison sentence of 11 years and three months. It also called for him to register for life as a sex offender. The Honorable Michael Ryan accepted the plea today and sentenced the defendant accordingly. Following the prison term, the defendant will be placed on five years of supervised release.
The charge stems from the man’s sexual abuse of a female relative when she was 10 to 11 years old. According to the government’s evidence, the defendant, on multiple occasions, went to the child’s home in Northwest Washington, where he engaged in various sexual acts with her. In May of this year, the girl disclosed vaginal discomfort to her mother, and was taken to Children’s National Medical Center. There, doctors diagnosed the child with Trichomonas, a sexually transmitted disease (STD). Afterwards, the child disclosed that the defendant had been sexually abusing her for the past one and a half to two years.
After the defendant’s arrest in July, the government obtained a urine sample from him, which was sent to the Johns Hopkins University’s STD Laboratory. The lab results showed that he possessed Trichomonas, the same STD he transferred to the child. The defendant has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division. He acknowledged the critical services provided to the complainant at the District of Columbia Children’s Advocacy Center, and the specialized medical treatment provided at the Children’s National Medical Center. He further commended the vital assistance provided by Dr. Jonathan Zenilman, Dr. Charlotte Gaydos, and Laboratory Manager Laura Dize from the Infectious Diseases Department at Johns Hopkins University. Finally, he commended the efforts of staff from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias; Victim/Witness Advocate Veronica Vaughn; Paralegal Specialist Joyce Arthur; Legal Intern Allison Denton, and Assistant U.S. Attorney John L. Hill, who prosecuted the case.
District Man Pleads Guilty to Sexual Abuse of 13-Year-Old DaughterRead the Press Release
WASHINGTON – A 34-year-old man from Washington, D.C. pled guilty today to a charge of first-degree child sexual abuse with aggravating circumstances for sexually abusing his 13-year-old daughter, U.S. Attorney Channing D. Phillips announced.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence between 9 ½ and 23 years. It also requires the defendant to register as a sex offender for 10 years upon his release. The Honorable Jennifer Anderson scheduled sentencing for Jan. 29, 2016.
According to the government’s evidence, the abuse occurred between July 19 and July 27, 2014 in Southeast Washington. The defendant, who is the victim’s father, was watching television with her in the defendant’s room. The defendant removed the victim’s pants and underwear, and sexually assaulted her. Afterwards, he apologized to the victim, promising that he wouldn’t sexually abuse her again.
The defendant, who left the Washington, D.C. area, was arrested by the U.S. Marshals Service in New York City on Sept. 10, 2015. He admitted having had sex with the victim. He also wrote the victim an apology letter, asking her to forgive him.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division and of the Deputy U.S. Marshals based in New York. He also commended the efforts of staff from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialist Joyce Arthur, and Assistant U.S. Attorney John L. Hill, who is prosecuting the case.
Delta Crossroads Leader Sentenced to 20 Years in PrisonRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI); Colonel William J. Bryant, of the Arkansas State Police; and Donald Oakes, Chief of the West Memphis Police Department; announced today that Rafael McDaniel, age 33, of West Memphis, Arkansas, was sentenced to 20 years imprisonment following his convictions before Chief U.S. District Judge Brian S. Miller.
On March 20, 2015, McDaniel was convicted of drug trafficking and firearms offenses following a jury trial in Case No. 13CR329-1 BSM before Chief Judge Miller. At today’s sentencing hearing Chief Judge Miller determined that McDaniel was responsible for the distribution of between 840 grams and 2.8 kilograms of crack cocaine in West Memphis between January 2012 through November 2013. Chief Judge Miller further enhanced McDaniel’s sentence because McDaniel obstructed justice by lying about his drug and gun activities during his testimony at trial. Chief Judge Miller sentenced McDaniel to 15 years imprisonment on the drug trafficking offenses (Counts One, Two, and Twenty-Five), and a consecutive five years on the firearm offense (Count Twenty-Six), for a total of 20 years. There is no parole in the federal system. McDaniel will serve a term of four years of supervised release following his release from imprisonment, and must pay a $400 special assessment.
"We are committed to working together in this district to dismantle drug trafficking organizations operating in our communities," stated Thyer. "When local law enforcement asks for assistance from federal partners as the West Memphis Police Department did in this case, everyone benefits. Law enforcement, at all levels, is able to take advantage of increased manpower and resources to bring a case to a successful close.
"Our commitment to eradicating drug trafficking and violent crime has never been stronger. With this conviction, another violent drug dealer has been removed from the streets for a very long time."
"Today’s sentencing is a reflection of our continued commitment to addressing crime in Northeast Arkansas," SAC Resch said. "We appreciate the efforts of our partners, the United States Attorney’s Office, Arkansas State Police, and the West Memphis Police Department."
At trial, Rafael McDaniel was convicted of the following offenses:
• Count One: conspiracy to distribute and to possess with intent to distribute more than 28 grams of crack cocaine, in violation of 21 U.S.C. 846. This count carries a potential punishment of not less than five years and up to 40 years imprisonment, a fine of up to $5 million, and not less than four years and up to life supervised release.
• Count Two and Count Twenty-Five: Possession with intent to distribute cocaine base, commonly known as crack cocaine, in violation of 21 U.S.C. 841(a)(1). Each count carries a punishment of up to 20 years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
• Count Twenty-Six: Possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. 924(c). This count carries a punishment of not less than five years and up to life imprisonment, which must be served consecutive to Counts One, Two, and Twenty-Five, up to a $250,000 fine, and up to five years supervised release.
McDaniel was acquitted of Count Eighteen (use of a telephone in furtherance of a drug trafficking crime, in violation of 21 U.S.C. § 843), and Count Three (possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. 924(c)).
Count Two stemmed from a search warrant executed by the West Memphis Police Department at McDaniel’s residence in West Memphis on February 19, 2012. Officers recovered crack cocaine, a kilogram press with cocaine residue, more than $12,000 in cash, and 14 firearms, many of which were loaded, among other items. Counts Twenty-Five and Twenty-Six stemmed from a search warrant executed by the FBI at McDaniel’s residence in West Memphis on November 18, 2013. Agents recovered cocaine, crack cocaine, scales with cocaine residue, more than $7,000 in cash, and five firearms, among other items.
The charges are the result of a state and federal Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed "Delta Crossroads." The investigation, which primarily focused on drug trafficking in West Memphis, was initiated by the FBI at the request of the West Memphis Police Department, which tasked several narcotics detectives to assist with the investigation. During the course of the investigation, law enforcement utilized three court-authorized wiretaps, during which hundreds of calls pertaining to cocaine and crack cocaine trafficking and firearms offenses were intercepted. On July 2, 2014, a federal grand jury returned a 26-count Superseding Indictment charging 18 individuals in Crittenden County with participating in the drug conspiracy and with firearms offenses. Rafael McDaniel was the sole defendant to go to trial. Sixteen defendants pleaded guilty in the Eastern District of Arkansas to drug trafficking offenses; one defendant resolved his charges as part of a related indictment in the Western District of Tennessee. Two defendants charged in the original indictment on November 6, 2013 were not included in the Superseding Indictment: one defendant resolved his charges as part of a related indictment in the Western District of Tennessee, and one defendant is deceased.
McDaniel’s co-defendants were previously sentenced before Chief Judge Miller, and received the following terms of incarceration:
- Demetrius Barrett, age 32, of West Memphis, 72 months imprisonment.
- Brandon Bohannon, age 31, of Marion, 168 months imprisonment.
- Brent Bohannon, age 23, of Jonesboro, 48 months imprisonment.
- Willie Brown, age 37, of West Memphis, 48 months imprisonment.
- Willie Cooper, age 52, of West Memphis, 60 months imprisonment.
- David Edwards, age 30, of Olive Branch, MS, 60 months imprisonment.
- Wendell Glenn, age 29, of West Memphis, 84 months imprisonment.
- David Green, age 27, of West Memphis, 120 months imprisonment.
- Delvin Green, age 25, of West Memphis, 121 months imprisonment.
- Courtney Hamilton, age 25, of West Memphis, 60 months imprisonment.
- John Hayes, age 50, of Houston, Texas, 96 months imprisonment.
- Michael McDonald, age 29, of West Memphis, 188 months imprisonment.
- Deloricko Prewitt, age 34, of West Memphis, 120 months imprisonment.
- Jessie Robinson, age 25, of West Memphis, 81 months imprisonment.
- Detarious Robinson, age 23, of West Memphis, 63 months imprisonment.
- Ronnie Sanes, age 35, of West Memphis, 96 months imprisonment.
"Operation Delta Crossroads made a tremendous impact on our community," West Memphis Police Chief Oakes said. "Many of the subjects arrested in Operation Delta Crossroads were extremely violent while they funneled drugs into our neighborhoods. This case is an example of the positive influence that we can have on a community when local, state, and federal agencies cooperate with each other."
The investigation was conducted by the United States Attorney’s Office, FBI, ASP, and West Memphis Police Department. It was prosecuted by Assistant United States Attorneys Julie Peters and Benecia Moore.
Criminal Defense Attorney Ramón Negrón-Colón Sentenced to 71 Months in Prison for Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico – Today, Ramón M. Negrón-Colón, aka “Monchito,” was sentenced to 71 months (five years and eleven months) in prison for conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. On April 4, 2014, the defendant pled guilty before United States District Court Senior Judge Juan Pérez-Giménez.
Ramón M. Negrón-Colón is an attorney licensed to practice law in Puerto Rico. Negrón-Colón represented José D. Figueroa-Agosto, aka “Junior Cápsula,” in judicial proceedings in Commonwealth courts. During the Fall of 1995, Figueroa-Agosto was convicted and sentenced to a prison term of 208 years in the Court of First Instance, San Juan, Puerto Rico. On November of 1999, Figueroa-Agosto utilized false documents to escape from a Commonwealth of Puerto Rico correctional facility. He remained a fugitive for over a decade until he was arrested on federal drug trafficking charges on July 18, 2010.
The indictment alleged that the object of the conspiracy was to nullify Figueroa-Agosto’s 208-year Commonwealth of Puerto Rico imprisonment term through illegal payments made with the proceeds of Figueroa-Agosto’s narcotics trafficking.
The indictment further alleged that beginning on a date unknown, but not later than 2007, until August 2013, Negrón-Colón and co-defendant Barreto-Ortiz, knowingly conducted and attempted to conduct financial transactions affecting interstate commerce, which transactions involved the proceeds of drug trafficking.
In late 2007, defendant Negrón-Colón indicated that the total cost of obtaining the nullification of Figueroa Agosto’s conviction and sentence would be between $2,500,000.00 and $3,000,000.00 in order to funnel illegal payments to public officials of the Commonwealth of Puerto Rico. Negrón-Colón received a few payments from individuals on different occasions in order to further the goals of the conspiracy.
The case was investigated by the Federal Bureau of Investigations (FBI) and Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). The case was prosecuted by First Assistant U.S. Attorney Timothy Henwood.
Couple Sentenced in Mortgage Fraud SchemeRead 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 Timothy McCabe, 50, and Theresa Morales, 51, of Boynton, Florida (formerly of Buffalo), who were convicted of bank fraud, were sentenced by U.S. District Judge Richard J. Arcara. McCabe was sentenced to 27 months in prison and Morales was sentenced to two years of supervised release. The husband and wife were also ordered to pay over $1,000,000 in restitution to various banks and mortgage lenders.Assistant U.S. Attorney Kathleen A. Lynch, who handled the case, stated that the defendants executed a scheme to obtain mortgages, re-financing, and home equity credit lines, totaling $2,580,000, from various financial institutions. In furtherance of the scheme, McCabe and Morales put together loan applications, which contained materially false information as to defendant Morales’ employment and income, and as to the couple’s intent to reside at the properties as owner/occupants. The loan applications were then submitted to the financial institutions, either directly by the defendants, or through Nickel City Funding, a Western New York mortgage broker.
Relying on the representations in the loan applications, as well as false verifications provided by defendant McCabe, the financial institutions granted the loans, which totaled $2,580,000. The defendants made only minimal payments on the loans, causing the properties to go into foreclosure, and resulting in a loss to the financial institutions in excess of $1,000,000.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and Special Agents of the United States Secret Service , under the direction of Special Agent in Charge C. Todd Laster.
Clay County man pleads guilty in Federal court to illegally possessing handgunRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Lloyd Ellis Rapp, 44, of Ivydale, West Virginia, entered a guilty plea in federal court in Charleston to being a felon in possession of a firearm. On June 15, 2015, Rapp was fleeing from the West Virginia State Police on his motorcycle. The pursuit ended with Rapp wrecking his motorcycle and being arrested. After the wreck, the West Virginia State Police found that Rapp was in possession of a Hi-Point Model C-9, 9mm semiautomatic handgun. Rapp was prohibited from possessing any firearm under federal law because of a 2008 felony conviction in United States District Court, Southern District of West Virginia, for distribution of methamphetamine.
Rapp faces up to ten years in federal prison and a fine of up to $250,000 when he is sentenced on February 16, 2016.
This case was investigated by the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution.
The prosecution is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Chief Judge Diane P. Wood Receives the Justice Department's 2015 John S. Sherman AwardRead the Press Release
Judge Wood Recognized for Her Lifetime Contributions to the Development of Antitrust Law and Policy
Assistant Attorney General Bill Baer presented the 2015 John S. Sherman Award – the department’s highest antitrust honor – to Chief Judge Diane P. Wood of the U.S. Court of Appeals for the Seventh Circuit. Judge Wood is a leading antitrust scholar and served as a Deputy Assistant Attorney General in the department’s Antitrust Division between 1993 and 1995.
The John Sherman Award is named after Senator John Sherman, who authored our nation’s first antitrust law – the Sherman Act – in 1890. Established in 1994, the Sherman Award recognizes individuals whose commitment to sound antitrust enforcement and policy have made “substantial contributions to the protection of American consumers and the preservation of economic liberty.”
The award was presented to Judge Wood during a ceremony in the Great Hall of the Robert F. Kennedy Department of Justice building. “I cannot think of a more deserving recipient of the department’s highest antitrust honor,” said Deputy Attorney General Sally Quillian Yates. “Chief Judge Wood has consistently demonstrated her commitment to the legal profession and she has been a trailblazer throughout her career for those who aspire to protect economic freedom and opportunity by promoting free and fair competition in the marketplace.”
In presenting the award, Assistant Attorney General Baer said: “Judge Wood has deepened our understanding of antitrust law and competition policy – from the bench, from the halls of academia and here, as part of the Antitrust Division.” He also said that Judge Wood “is the author of a number of influential antitrust opinions,” a “noted scholar” who co-authors “one of the seminal casebooks in antitrust,” and, while at the Antitrust Division, “was the predominate force” behind the revised Enforcement Guidelines for International Operations that to this day “serve as a central tool for [the Division’s] international enforcement efforts.”
Judge Wood is the eleventh person to receive the Sherman Award and the first female recipient. Judge Wood was also one of the first women to clerk on the U.S. Supreme Court when she clerked for Justice Harry Blackman in 1976, and in 1990 she was the first woman to be honored with an endowed chair at the University of Chicago Law School.
This year’s ceremony marked the 125th anniversary of the passage of the Sherman Act, which, as the Supreme Court has observed, is the “Magna Carta of free enterprise” and “as important to the preservation of economic freedom and our free-enterprise system as the Bill of Rights is to the protection of our fundamental personal freedom.”
Previous recipients of the Sherman Award include James F. Rill (2012), Robert Pitofsky (2010), Herbert Hovenkamp (2008), Robert H. Bork (2005), Richard A. Posner (2003), Milton Handler (1998), Thomas Kauper and William Baxter (1996), Phillip Areeda (1995), and Howard Metzenbaum (1994).
Cape Coral Woman Sentenced for Making False Workers’ Compensation ClaimRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell sentenced Theresa A. Aley (52, Cape Coral) on October 30, 2015, to three years of probation, including a 60-day period of house arrest, for making a false statement regarding federal workers’ compensation benefits. The court also ordered her to pay $83,465 in restitution to the federal government, which amount was paid in full on November 10, 2015. Aley pleaded guilty on June 16, 2015.
According to court documents, in April 1998, Aley, while employed as a Customer Survey Program Manager at Bolling Air Force Base in Maryland, reported that she had fallen in the ladies’ restroom and had injured her lower spine. As a result, she was listed as completely disabled by July 1999. Following that alleged injury, Aley made application for and was approved to receive federal employee’s compensation benefits.
Each year, Aley was required to submit a form to the Department of Labor indicating that she was not self-employed or involved in any business enterprise, and that she did not perform any volunteer work. Following her submission of this form in April 2014, an investigation revealed that her statement was false. Specifically, videotaped surveillance, interviews, and business records amassed during the investigation revealed that Aley, along with her husband, was involved in and worked for Aley Enterprises, a magazine distribution business in Cape Coral. Aley presented herself as the owner of Aley Enterprises. She was listed on the business checking account and endorsed most of the checks deposited into that account. She also handled most of the business operations, including routinely interacting with customers and managing customer accounts. Records show that money was transferred from the business checking account to Aley’s personal savings account. In addition, on multiple occasions, Aley was observed at the business climbing into the bed of a pickup truck; removing plastic wrapping from pallets of boxes; lifting, carrying, and loading boxes into the back of vehicles; moving pallets around the warehouse; and delivering magazines to several businesses in the Cape Coral area.
This case was investigated by the Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Josie Thomas.
Buffalo Man Pleads Guilty to Tax Fraud SchemeRead 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 James Chatmon, 36, of Buffalo, NY, who was convicted of conspiracy to defraud the Internal Revenue Service by making false claims for income tax refunds, was sentenced to 18 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $102,149.00 in restitution to the Internal Revenue Service and $2,939 to the NYS Department of Finance.Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Chatmon gathered biographical information from more than a dozen individuals which he then used to generate false W-2 forms. The individuals then used the forms to file false Federal and New York State income tax returns. Claims for refunds and credits were made on 17 tax returns, even though the persons filing the returns were not entitled to any refunds.
Proceeds totaling $105,088 were divided between Chatmon and the tax-return filers during the scheme, which took place between January 2010 and April 2013. The total attempted loss figure exceeds $120,000, as some of the false returns did not result in refunds.
The sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Belleville Man Charged for Armed Robbery of Domino’sRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Sterling D. Gould, thirty-seven years old, from Belleville, Illinois, was charged by complaint on November 10, 2015, in federal court in East St. Louis, Illinois, for one count of Interference with Commerce by Robbery, which is a violation of the Hobbs Act; one count of Brandishing a Firearm During a Crime of Violence, and one count of Unlawful Possession of a Firearm by a Previously Convicted Felon, in connection with the armed robbery of the Belleville, Illinois, Domino’s Pizza that occurred on July 12, 2015.
The case is being investigated by the Federal Bureau of Investigation as part of the Metro East Armed Robbery Initiative announced by United States Attorney Wigginton. Assistant U.S. Attorney Daniel T. Kapsak is prosecuting the case.
Baltimore Man Sentenced to 11 Years in Prison for Bank RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kurtis Kelvin McGill, age 55, of Baltimore today to 11 years in prison followed by three years of supervised release for bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, on August 27, 2014, McGill told a teller at the Wells Fargo Bank on Fort Avenue in Baltimore City that he had a weapon and demanded “two straps of 50s and two straps of 100s.” McGill took approximately $8,000 from the teller and drove away. McGill was subsequently identified as the robber from the bank’s surveillance video, a surveillance video at a nearby store and by a bank employee.
At the time of the robbery, McGill was on supervised release for a previous federal bank robbery conviction.
United States Attorney Rod J. Rosenstein praised FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.
Attorney General Loretta E. Lynch Statement on the Attacks in ParisRead the Press Release
Attorney General Loretta E. Lynch released the following statement on today’s attacks in Paris:
“We stand in solidarity with France, as it has stood with us so often in the past. This is a devastating attack on our shared values and we at the Department of Justice will do everything within our power to assist and work in partnership with our French law enforcement colleagues.”
Ashburn Man Sentenced for Identity Theft and Filing False Tax ReturnsRead the Press Release
ALEXANDRIA, Va. – Kouame Innocent Tanoh, 53, of Ashburn, was sentenced today to 54 months in prison for wire fraud and aggravated identity theft, followed by three years of supervised release. The defendant also was ordered to pay $671,760 in restitution and $651,769 in a forfeiture money judgment.
Tanoh pleaded guilty on April 24, 2015. According to court documents, from around April 2008 through February 2015, Tanoh obtained individuals’ names and personal identifying information, including their Social Security numbers and dates of birth. Tanoh acquired some of this information by holding himself out as being a legitimate tax return preparer, through a Virginia company called Alpha and Omega Financial Services. Some of the individuals who provided their personal information to Tanoh were clients of this business. Tanoh would then use their names and personal identifying information for several different purposes, including the preparation and filing of fraudulent federal and state tax returns that made false claims for tax refunds. To increase the amount of the refund requested by the fraudulent returns, Tanoh would add items to the returns, including false dependents, false businesses on the taxpayer’s Schedule C, false education expenses, and false moving expenses. The actual loss to the IRS and state departments of revenue as a result of the returns prepared and filed by Tanoh was over $650,000.
In addition to filing false tax returns, Tanoh also used other people’s identities, in part because he had no legal status to work or remain in the United States. From at least 2009 through 2015, Tanoh used the names and personal identifying information of at least eight individuals to seek and obtain employment, housing, and other items of value, such as bank accounts. To facilitate his use of these stolen identities, Tanoh would obtain false means of identification in the victims’ names, including driver’s licenses and Social Security cards.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; John Phillips, Assistant Inspector General for Investigations, Department of the Treasury, Office of the Inspector General; and Michael McGill, Special Agent in Charge, Philadelphia Field Division of the Inspector General’s Office of the Social Security Administration, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-99.
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Arizona Woman Pleads Guilty to Federal Heroin Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Fabiola Soriano-Tlapanco, 26, of Phoenix, Ariz., pleaded guilty today to heroin trafficking charges in federal court in Albuquerque, N.M., under a plea agreement with the U.S. Attorney’s Office.
Soriano Tlapanco and co-defendant Annais Moreno, 34, also of Phoenix, were arrested in May 2015, on a criminal complaint charging them with conspiracy and possession of heroin with intent to distribute after DEA agents allegedly found almost four kilograms of heroin concealed in their baggage during an interdiction investigation at the Greyhound Bus Station in Albuquerque, on May 16, 2015. The duo were indicted on the same charges on June 9, 2015.
During today’s proceedings, Soriano-Tlapanco pled guilty to a felony information charging her with possession of heroin with intent to distribute. Soriano-Tlapanco admitted that on May 16, 2015, she and Moreno were to be paid to transport approximately 3.95 kilograms of heroin from Glendale, Ariz. to Denver, Colo., when they were stopped by law enforcement officers while traveling through Albuquerque on the Greyhound Bus.
On Oct. 26, 2015, Moreno pled guilty to a felony information charging her with possession of heroin with intent to distribute. Moreno admitted that on May 16, 2015, she and Soriano-Tlapanco transported 3.95 kilograms of heroin while traveling through Albuquerque on the Greyhound Bus. Moreno further admitted that she was transporting the heroin from Glendale, Ariz. to Denver, Colo.
At sentencing, Soriano-Tlapanco and Moreno each face a statutory maximum of 20 years in federal prison. Both women remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Antiques Dealer Sentenced in Manhattan to Two Years in Prison for Smuggling Cups Made from Rhinoceros HornsRead the Press Release
Linxun Liao, 35, a citizen of Canada, was sentenced yesterday in Manhattan federal court to two years in prison for his role in a wildlife trafficking scheme in which he purchased and smuggled 16 “libation cups” carved from rhinoceros horns and worth more than $1 million from the United States to China, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Preet Bharara of the Southern District of New York and Director Dan Ashe of the U.S. Fish and Wildlife Service. Liao pleaded guilty on June 30, 2015, to a two-count information, admitting to illegally smuggling rhinoceros horn objects from the United States.
“This prosecution is the result of a vigorous and ongoing investigation into traffickers profiting from endangered and precious wildlife species,” said Assistant Attorney General Cruden. “We must ensure that the market for antiques and alleged antiques does not also contribute to the extinction of these iconic animals, which could disappear in our lifetimes if we do not act now to stop this illegal trade.”
“This defendant flouted the laws established to protect endangered wildlife,” said U.S. Attorney Bharara. “Willfully failing to declare the nature of the shipments or obtain required permits, Liao broke laws that protect rhinoceros and other magnificent species threatened with extinction. He has learned the cost of his illegal conduct.”
“Each of the ceremonial cups that Liao trafficked represents one step closer to extinction for the rhinoceros, which are steadily being wiped out by poachers for the illegal rhino horn market,” said Director Ashe. “The seriousness of this crime and others like it and their consequences for the world’s most imperiled species are what drives our efforts to root out and shut down illegal operators like Mr. Liao. This sentence will serve as a strong warning that we are going to find, arrest and prosecute anyone engaged in this sort of activity and make sure they are no longer able to deprive our children and grandchildren of their wildlife inheritance.”
According to the information, other documents filed in federal court in Manhattan and statements made at various proceedings in this case, including today’s sentencing:
Liao was arrested in February 2015 as part of “Operation Crash,” a nationwide crackdown on illegal trafficking in rhinoceros horns. Liao was a partner in an Asian art and antiques business located in China. Liao’s role was to purchase items, including wildlife items, in the United States and arrange for their export to China. Between in or about March 2012 and May 2013, Liao made online purchases of 16 rhinoceros horn products, more specifically libation cups, from auction houses in the United States, including in Manhattan, which he then smuggled to China without the required declarations and permits. In order to make these purchases, Liao used an address of his family members in New Jersey, the New Jersey location, because he knew that absent a domestic address, the auction houses would not ship him the rhinoceros horn as well as ivory that Liao had acquired. Liao then utilized a Manhattan-based courier service to illegally export the merchandise to China. Liao did not declare the rhinoceros exports to the U.S. Fish and Wildlife Service or obtain the required permits despite his knowledge of the need to do so. Liao closely coordinated his efforts with co-conspirators who sold the items for a profit at their antique business in China. The market value of the rhinoceros libation cups in this case is more than $1 million.
The rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act, which further regulates trade and transport.
In addition to his prison term, Liao was also ordered two years of supervised release, to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey location. Liao was also banned from future involvement in the wildlife trade.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Assistant Attorney General Cruden and U.S. Attorney Bharara thanked the U.S. Fish and Wildlife Service for its outstanding work in this investigation. This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jennifer Gachiri and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
In addition to his prison term, Liao was also ordered two years of supervised release, to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey location. Liao was also banned from future involvement in the wildlife trade.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Assistant Attorney General Cruden and U.S. Attorney Bharara thanked the U.S. Fish and Wildlife Service for its outstanding work in this investigation. This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jennifer Gachiri and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
Antiques Dealer Sentenced in Manhattan Federal Court to Two Years in Prison for Smuggling Cups Made from Rhinoceros Horns to ChinaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John C. Cruden, the Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, the U.S. Fish and Wildlife Service Director, announced that LINXUN LIAO was sentenced yesterday in Manhattan federal court to two years in prison for his role in a wildlife trafficking scheme in which he purchased and smuggled 16 “libation cups” carved from rhinoceros horns and worth more than $1 million from the United States to China. LIAO previously pled guilty to two counts of illegally smuggling rhinoceros horn objects from the United States. U.S. District Judge Lorna G. Schofield imposed yesterday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “This defendant flouted the laws established to protect endangered wildlife. Willfully failing to declare the nature of the shipments or obtain required permits, Liao broke laws that protect rhinoceros and other magnificent species threatened with extinction. He has learned the cost of his illegal conduct.”
Assistant Attorney General John C. Cruden said: “This prosecution is the result of a vigorous and ongoing investigation into traffickers profiting from endangered and precious wildlife species. We must ensure that the market for antiques and alleged antiques does not also contribute to the extinction of these iconic animals, which could disappear in our lifetimes if we do not act now to stop this illegal trade.”
U.S. Fish and Wildlife Service Director Dan Ashe said: “Each of the ceremonial cups that Liao trafficked represents one step closer to extinction for the rhinoceros, which are steadily being wiped out by poachers for the illegal rhino horn market. The seriousness of this crime and others like it and their consequences for the world’s most imperiled species are what drives our efforts to root out and shut down illegal operators like Mr. Liao. This sentence will serve as a strong warning that we are going to find, arrest and prosecute anyone engaged in this sort of activity and make sure they are no longer able to deprive our children and grandchildren of their wildlife inheritance.”
According to the Information, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
LIAO was arrested in February 2015 as part of “Operation Crash,” a nationwide crackdown on illegal trafficking in rhinoceros horns. LIAO, a Canadian citizen, was a partner in an Asian art and antiques business located in China. LIAO’s role was to purchase items, including wildlife items, in the United States and arrange for their export to China. Between in or about March 2012 and May 2013, LIAO made online purchases of 16 rhinoceros horn products, more specifically libation cups, from auction houses in the United States, including in Manhattan, which he then smuggled to China without the required declarations and permits. In order to make these purchases, LIAO used an address of his family members in New Jersey (the “New Jersey Location”) because he knew that absent a domestic address, the auction houses would not ship him rhinoceros horn or ivory products that LIAO had purchased. Liao then used a Manhattan-based courier service to illegally export the merchandise to China. LIAO did not declare the rhinoceros exports to the U.S. Fish and Wildlife Service or obtain the required permits despite his knowledge of the need to do so. LIAO closely coordinated his efforts with co-conspirators who sold the items for a profit at their antique business in China. The market value of the rhinoceros libation cups in this case is more than $1,000,000.
The rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act, which further regulates trade and transport.
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In addition to his prison term, LIAO, 35, a Chinese citizen who resides in Canada, was sentenced to two years of supervised release and ordered to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey Location.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
U.S. Attorney Preet Bharara thanked the U.S. Fish and Wildlife Service for its outstanding work in this investigation. This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jennifer Gachiri and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
Alstom Sentenced to Pay $772 Million Criminal Fine to Resolve Foreign Bribery ChargesRead the Press Release
Represents Largest-Ever Criminal Foreign Bribery Fine
Alstom S.A., a French power and transportation company, was sentenced today to pay a $772,290,000 fine to resolve criminal charges related to a widespread corruption scheme involving at least $75 million in secret bribes paid to government officials in countries around the world, including Indonesia, Saudi Arabia, Egypt, the Bahamas and Taiwan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Michael J. Gustafson the District of Connecticut and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Alstom was sentenced by U.S. District Judge Janet Bond Arterton of the District of Connecticut. Alstom pleaded guilty on Dec. 22, 2014, to a two-count criminal information charging the company with violating the Foreign Corrupt Practices Act (FCPA) by falsifying its books and records and failing to implement adequate internal controls.
In addition, Alstom Network Schweiz AG, formerly Alstom Prom AG (Alstom Prom), Alstom’s Swiss subsidiary, which pleaded guilty on Dec. 22, 2014, to a criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA, was also sentenced today pursuant to its plea agreement. Alstom Power Inc. and Alstom Grid Inc., formerly Alstom T&D Inc., two U.S. subsidiaries, both entered into deferred prosecution agreements on Dec. 22, 2014, admitting that they conspired to violate the anti-bribery provisions of the FCPA.
According to the companies’ admissions, Alstom, Alstom Prom, Alstom Power and Alstom T&D, through various executives and employees, paid bribes to government officials and falsified books and records in connection with power, grid and transportation projects for state-owned entities around the world, including in Indonesia, Egypt, Saudi Arabia, the Bahamas and Taiwan. In Indonesia, for example, Alstom, Alstom Prom and Alstom Power paid bribes to government officials—including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara, the state-owned electricity company in Indonesia—in exchange for assistance in securing several contracts to provide power-related services valued at approximately $375 million. In total, Alstom paid more than $75 million to secure more than $4 billion in projects around the world, with a profit to the company of approximately $300 million.
Alstom and its subsidiaries also attempted to conceal the bribery scheme by retaining consultants who purportedly provided consulting services on behalf of the companies, but who actually served as conduits for corrupt payments to the government officials. Internal Alstom documents refer to some of the consultants in code, including “Mr. Geneva,” “Mr. Paris,” “London,” “Quiet Man” and “Old Friend.”
The sentence, which is the largest criminal fine ever imposed in an FCPA case, reflects a number of factors, including: Alstom’s failure to voluntarily disclose the misconduct, even though it was aware of related misconduct at a U.S. subsidiary that previously resolved corruption charges with the department in connection with a power project in Italy; Alstom’s refusal to fully cooperate with the department’s investigation for several years; the breadth of the companies’ misconduct, which spanned many years, occurred in countries around the globe and in several business lines, and involved sophisticated schemes to bribe high-level government officials; Alstom’s lack of an effective compliance and ethics program at the time of the conduct; and Alstom’s prior criminal misconduct, including conduct that led to resolutions with various other governments and the World Bank.
After the department publicly charged several Alstom executives, however, Alstom began providing thorough cooperation, including assisting the department’s prosecution of other companies and individuals.
To date, the department has announced charges against five corporate executives for alleged corrupt conduct involving Alstom. Frederic Pierucci, Alstom’s former vice president of global boiler sales, pleaded guilty on July 29, 2013, to conspiring to violate the FCPA and a charge of violating the FCPA for his role in the Indonesia bribery scheme. David Rothschild, Alstom Power’s former vice president of regional sales, pleaded guilty on Nov. 2, 2012, to conspiracy to violate the FCPA. William Pomponi, Alstom Power’s former vice president of regional sales, pleaded guilty on July 17, 2014, to conspiracy to violate the FCPA. Lawrence Hoskins, Alstom’s former senior vice president for the Asia region, was charged in an indictment in connection with the Indonesia bribery scheme, and is pending trial in the District of Connecticut in April 2016. The charges against Hoskins are merely allegations, and he is presumed innocent unless and until proven guilty. The high-ranking member of Indonesian Parliament was also convicted in Indonesia of accepting bribes from Alstom, and is currently serving a three-year prison term. In addition, Marubeni Corporation, which partnered with Alstom on the Indonesia project, pleaded guilty on March 19, 2014 to a criminal information charging conspiracy to violate the FCPA and seven counts of violating the FCPA, and was sentenced on May 15, 2014, to pay an $88 million criminal fine.
In connection with a corrupt scheme in Egypt, Asem Elgawhary, the general manager of an entity working on behalf of the Egyptian Electricity Holding Company, a state-owned electricity company, was the fifth individual charge and pleaded guilty on Dec. 4, 2014, in the District of Maryland to mail fraud, conspiring to launder money and tax fraud for accepting kickbacks from Alstom and other companies, and was sentenced on March 23, 2015, to serve 42 months in prison and forfeit approximately $5.2 million in proceeds.
This case is being investigated by the FBI’s Washington Field Office, with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission), the Switzerland Office of the Attorney General and the United Kingdom’s Serious Fraud Office, as well as authorities in France, Germany, Italy, Singapore and Taiwan.
The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut, together with Assistant U.S. Attorney Zach Intrater of the District of New Jersey on the investigation of Alstom T&D, and Assistant U.S. Attorney David I. Salem of the District of Maryland on the investigation of Asem Elgawhary. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Albuquerque Man Arrested for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Grant Hykes, 34, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with being a felon in possession of a firearm. Hykes remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled on Nov. 16, 2015.
The criminal complaint, filed earlier today by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), charges Hykes with unlawfully possessing a firearm and ammunition in Bernalillo County, N.M., on Nov. 12, 2015. Hykes was prohibited from possessing firearms or ammunition because he previously has been convicted of aggravated assault with a deadly weapon, receiving stolen property, and possession of a controlled substance.
According to the criminal complaint, the investigation leading to Hykes’ arrest began yesterday afternoon when the Bernalillo County Sheriff’s Office (BCSO) received a report that Hykes was allegedly threatening a BCSO detective. The complaint alleges that, when BCSO officers located Hykes in a parking lot in northeast Albuquerque, they observed him reach into his waistband and put his hands into the bed of a truck. When the officers approached Hykes and the truck, they allegedly observed a semi-automatic pistol in the truck’s bed; the pistol was loaded with 14-rounds of ammunition. Knowing that Hykes was a convicted felon, the BCSO officers arrested him for being a felon in possession of a firearm. While searching Hykes incident to arrest, the officers allegedly found a holster containing a magazine with 14-rounds inside Hykes’ waistband. The pistol found in the truck’s bed allegedly fit into the holster.
If convicted on the charge alleged in the criminal complaint, Hykes faces a statutory maximum sentence of ten years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and the BCSO. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Abington Man Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – An Abington man pleaded guilty today in U.S. District Court in Boston to stealing $65,311 in Social Security benefits.
Mark Gardner, 57, pleaded guilty to theft of public money. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 5, 2016.
Gardner’s mother died in 2009, but her monthly Social Security benefits continued to be directly deposited into a bank account held jointly in her name and Gardner’s name. Although Gardner was not entitled to this money, he routinely withdrew the Social Security money for his own use. In total, from 2009 to 2014, Gardner took $65,311 in Social Security funds to which he was not entitled.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office, in partnership with the Social Security Administration, to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. Since October 2014, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money:
In November 2015, Brian Sandiford, of Milton, pleaded guilty to stealing $70,811 from Social Security from 2010 to 2014. Sentencing is scheduled for March 3, 2016.
In September 2015, Patricia Kwiatkowski, of Upton, was sentenced for stealing $128,101 from Social Security from 2006 to 2014.
In April 2015, Graeme Griffith, of Andover, was sentenced for stealing $149,285 from Social Security from 2003 to 2014.
Also in April 2015, Frances Kenney Moseley, of Boston, was sentenced for stealing $222,172 from Social Security from 2003 to 2010.
The charging statute provides a sentence of no greater than ten years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations, Boston Field Division, made the announcement today. The Gardner case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
22 Individuals Charged with Drug Trafficking in the Municipality of PeñuelasRead the Press Release
SAN JUAN, Puerto Rico – On November 5, 2015, a federal grand jury in the District of Puerto Rico returned two separate indictments against thirteen and nine defendants respectively charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations and the Puerto Rico Police Department (PRPD), Ponce Strike Force, are in charge of the investigation.
The first indictment alleges that beginning in 2009, the organization distributed cocaine, heroin, crack, and marihuana at the Caracoles III Ward, located in the Municipality of Peñuelas, Puerto Rico, all for financial gain and profit.
The 13 defendants are: Victor A. Serna-González, aka “Bebe;” Victor Daniel Serna-González, aka “Danny;” Rubén Figueroa-Santiago; José L. Ríos-Martínez, aka “Olivo;” Fred Bernard Rodríguez, aka “Gordo;” Victor Ramos-González, aka “Burrin;” Luis M. Ramos-González, aka “Chino;” José Pérez-Santiago, aka “Orejas;” Carlos Ramos-González, aka “Colorao;” Rafael J. Quiros-Morales, aka “Menor;” Erick Tomás García-Ramos, aka “Tito;” Julio Araud-Figueroa, aka “Julito;” and FNU LNU, aka “Wilfred”.
The second indictment alleges that beginning in 2007, the organization distributed cocaine and heroin at the Caracoles II Ward, located in Peñuelas, PR, for significant financial gain and profit. The nine defendants are: Victor Candelario-Santiago, aka “El Loco;” Elliot Lucca-Nieves, aka “Luquita;” Luis Rosario-Tellado, aka “Javier Tellado;” Aixsa L. Morales-Figueroa; Juan Ramos-Rodríguez, aka “Flaco;” Miguel Rivera-Galarza, aka “Valdo;” Ángel L. Alvarado-Pérez, aka “Cacu;” Julio E. Feliciano-Quiñonez, aka “Caballito;” and José Figueroa-Segarra, aka “El Menor”.
The 22 defendants acted in different roles in order to further the goals of their organizations, to wit: leader, drug point owners, runners, drug processors, sellers, and facilitators. Some defendants possessed firearms to protect the members of the drug trafficking organizations, the narcotics, the proceeds derived from the sales, and to further accomplish the goals of the conspiracies.
Assistant U.S. Attorney Myriam Fernández, supervisor of the Narcotics Unit, and Assistant U.S. Attorney John Mathews are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Thursday 12 November 2015
Wilkes-Barre Man Indicted for Heroin Trafficking and Firearm OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on November 10, 2015 by a federal grand jury in Scranton on heroin trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Louis Angel Soto, age 26, with distributing and possessing with intent to distribute heroin in Wilkes-Barre on four occasions between August and November of 2015. The indictment also charges Soto with possessing a firearm in furtherance of his heroin trafficking activities.
The charges stem from an investigation in which the Drug Enforcement Administration (DEA) allegedly made purchases of heroin from Soto on three occasions between August and October of 2015. The DEA then obtained a search warrant for a residence located on Sambourne Street in Wilkes-Barre, where Soto was residing. From the residence, the DEA and the Wilkes-Barre Police Department seized 180 bags of heroin and a .40 caliber Smith and Wesson semi-automatic pistol.
The investigation of these cases was conducted by the Drug Enforcement Administration, working in conjunction with the Wilkes-Barre Police Department. Prosecution is assigned to Assistant United States Attorney Evan Gotlob.
Soto faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $4,250,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wichita Attorney Sentenced on Federal Tax Evasion ChargeRead the Press Release
WICHITA, KAN. – A Wichita attorney was sentenced Thursday to 30 months in federal prison for evading federal taxes, U.S. Attorney Barry Grissom said.
In July, U.S. District Judge Eric Melgren found Eldon L. Boisseau, 67, Wichita, Kan., guilty on one count of tax evasion.
In a written decision, the court found that during 1998 through 2000, 2002 through 2005 and 2007 through 2008 Boisseau attempted to evade paying federal income taxes, as well as a trust fund recovery penalty from 1999. He interfered with the government’s efforts to collect the taxes he owned by putting his law firm in the name of a nominee, terminating his own pay agreement with the law firm and then having the firm pay for his personal expenses.
Grissom commended the Internal Revenue Service, Assistant U.S. Attorney Alan Metzger and Sean Green, Trial Attorney with Justice Department’s Tax Division, for their work on the case.
Verona Island Man Sentenced to Almost Seven Years on Firearms ChargeRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Oscar Nunez, 28, of Verona Island, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 82 months in prison and three years of supervised release for being a felon in possession of a firearm. Nunez pleaded guilty on January 20, 2015.
Court records reveal that on July 23, 2012, investigators found a High Point .380 caliber semi-automatic handgun during the execution of a search warrant at the defendant’s Verona Island residence. A Maine State Police Crime Lab forensic analyst found the defendant’s DNA on the handgun. The defendant was prohibited from possessing the handgun because of a prior felony conviction in New York for the criminal sale of a controlled substance. Nunez’s sentence was longer because he used the handgun in connection with other crimes and he had a history of drug trafficking and possessing explosive devices.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Fire Marshal’s Office; the Maine Drug Enforcement Agency; the Maine State Police; and the Hancock and Penobscot County Sheriffs’ Departments.
Two More Arrests as Result of USDA Feeding Program FraudRead the Press Release
LITTLE ROCK—Two more people have been indicted for their roles in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Anthony Waits, age 37, of England, Arkansas, and Dorothy Harper, age 50, of England, Arkansas, were arrested after the filing of an 89-count indictment.
The second superseding indictment, returned by a federal Grand Jury on November 4, 2015, charges Waits and Harper with conspiracy as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Harper is also charged with 16 counts of wire fraud.
According to the indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Harper operated as a sponsor for a feeding program through an organization called Kingdom Land Youth Outreach Ministries. She had feeding sites in England, Keo, Allport, Tucker, Toltec, Coy, and Altheimer, Arkansas.
Harper made unauthorized cash payments to Waits, whose wife worked at DHS. In exchange for these payments, Waits’ wife approved Harper’s applications, knowing that inflated claims would be submitted and helping Harper avoid DHS detection of the fraud. The indictment states that Harper falsely represented her average daily attendance and the number of meals provided. This fraud exceeded $1.3 million.
The indictment alleges that Waits recruited additional sponsors who also submitted inflated claims. Those sponsors gave Waits a percentage of the federal money they received in exchange for Waits’ wife, the DHS employee, approving the inflated claims.
Waits and Harper join the three other individuals who were already named as defendants: Gladys King, who was Waits’ wife and DHS employee who approved fraudulent claims; Tonique Hatton, another DHS employee who approved fraudulent claims; and Jacqueline Mills, another feeding program sponsor.
Also named in the indictment is co-conspirator Kattie Jordan, a program sponsor who has already pleaded guilty to conspiring to commit wire fraud. Jordan stole $3.6 million in federal funds. Investigation is ongoing but indicates that Mills stole $2.5 million.
The statutory penalty for conspiring to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is being conducted by the United States Department of Agriculture—Office of the Inspector General, Federal Bureau of Investigation, Internal Revenue Service—Criminal Investigations and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information [email protected].
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Two Miami Residents Plead Guilty Involvement in Stolen Identity Tax Refund Fraud RingRead the Press Release
Two Miami residents pleaded guilty for their role in a stolen identity tax refund fraud conspiracy, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Jim Joseph and Roland Alexis pleaded guilty to one count of a multi-object conspiracy to defraud the Internal Revenue Service (IRS), commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft. Joseph pleaded guilty on Nov. 9 and Alexis pleaded guilty Nov. 5. According to court documents, between 2007 and July 2014, Joseph, Alexis and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. The stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to put Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed.
In late 2009, Alexis formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida, and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file more than 860 fraudulent tax returns. Alexis’s conduct resulted in a tax loss of $1.8 million and Joseph’s conduct resulted in a tax loss of $1.2 million.
Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge and a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge. Joseph and Alexis must serve the two-year sentence for aggravated identity theft in addition to any sentence the court imposes on the conspiracy charge. Both charges carry a statutory maximum fine of $250,000.
U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of the IRS-Criminal Investigation and Homeland Security Investigations, who investigated the case, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Gregory E. Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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.