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8 January 2016
Former Tyson Employee Sentenced to 28 Months in Federal Prison for Stealing over $550,000 from CompanyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Brenda Blair age 48 of Gentry, Arkansas was sentenced to 28 months in federal prison followed by two years of supervised release on one count of Wire Fraud. She was also ordered to pay restitution in the amount of $551,343.52. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the plea agreement, Blair was an employee of Tyson Inc. in Springdale, Arkansas for over twenty five years. As the Special Benefits Plan Manager, Blair managed contributions into and handled administrative duties related to the Tyson Foods Inc. Pre-65 Retiree Health Insurance Benefit Plan. From June 2005 to September 2014, Blair devised and implemented a scheme to defraud money from Tyson Inc. by generating fraudulent payments in the name of actual participants in the Pre-65 Retiree Health Insurance Benefits Plan and directing these payments to her own bank accounts. The scheme resulted in defrauding Tyson Inc. of over $550,000.00.
This case was investigated by the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) - Criminal Investigation Division, and the Department of Labor. Assistant United States Attorney Kimberly N. 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
Former State Representative’s Cash Stash GrowsRead the Press Release
BOSTON – The U.S. Attorney’s Office, working with the U.S. Marshals Service and the Internal Revenue Service, have recovered more than an additional $1 million in cash as well as jewelry and luxury watches as a result of seizures yesterday and in late December 2015. In total, more than $2.5 million in concealed cash and other valuables have been recovered from safe deposit boxes controlled by John George, a former Dartmouth Selectman and State Representative. George was convicted and sentenced in 2015 on federal charges related to his embezzlement from a taxpayer-subsidized bus company which he controlled.
Yesterday, special agents with the IRS seized over $800,000 in cash, as well as four Rolex watches and jewelry from three safe deposit boxes controlled by George. In several related seizures in December, U.S. Marshals discovered over $1.6 million in cash.
The money was recovered from seven safe deposit boxes filled with cash tied up in rolls of $100s, $50s, and other denominations. The safe deposit boxes were located at three banks in New Bedford and Fairhaven. Yesterday’s actions followed court authorization to recover the additional funds discovered while executing the original search and seizure warrants in December.
George, 68, was sentenced to 70 months in prison in July 2015 for embezzling hundreds of thousands of dollars from the Southeastern Regional Transit Authority (SRTA).
George owned Union Street Bus Company (USBC), a New Bedford-based company that operated public buses. During the same period, George operated John George Farms (JG Farm), a large produce farm based in Dartmouth. From approximately 1991 to 2011, USBC was awarded the Southeastern Regional Transit Authority (SRTA) contract to operate the SRTA public bus system that served a region that included New Bedford, Fall River, and several other neighboring towns.
While USBC had the SRTA contract, George conspired to have USBC employees work at JG Farm during their assigned USBC work hours. Such farm work included plowing, loading produce, and operating a produce stand at JG Farm, all during USBC business hours. As part of the conspiracy, George deployed USBC workers to JG Farm to repair farm equipment and used USBC equipment and labor to provide personal out-of-state roadside assistance. George also inflated his final yearly salary from $75,000 to $275,000 in an attempt to fraudulently boost his SRTA pension.
From 2007 to 2011, George deposited only $5,000 in cash into his JG Farm business checking account despite the fact that JG Farm was the largest retail produce farm in Southeastern Massachusetts and did most of its business in cash.
Prior to his July 2015 sentencing, George was required to disclose his financial status to the Court. At that time, he stated that his liquid assets only consisted of about $160,000 in bank accounts and approximately $28,000 in cash.
United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the IRS-Criminal Investigation and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. The criminal forfeiture was handled by Assistant U.S. Attorney Doreen Rachal of Ortiz’s Asset Forfeiture Unit working in conjunction with the U.S. Marshal’s Asset Forfeiture Unit. The criminal case was investigated by the U.S. Department of Transportation, Office of the Inspector General, and was prosecuted by Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Former St. Louis Cardinals Official Pleads Guilty to Houston Astros Computer IntrusionsRead the Press Release
HOUSTON – The former director of Baseball Development for the St. Louis Cardinals made an initial appearance in Houston federal court today on charges of accessing the Houston Astros’ computers without authorization, announced U.S. Attorney Kenneth Magidson and Special Agent in Charge Perrye K. Turner of the FBI. Later this afternoon, the former Cardinals official then entered a guilty plea to all counts as charged.
Christopher Correa, 35, of St. Louis, was charged in a criminal information with five counts of unauthorized access of a protected computer. No other personnel associated with the Cardinals organization have been charged.
“We have secured an appropriate conviction in this case as a result of a very detailed, thorough and complete investigation,” said Magidson. “Unauthorized computer intrusion is not to be taken lightly. Whether it’s preserving the sanctity of America’s pastime or protecting trade secrets, those that unlawfully gain proprietary information by accessing computers without authorization must be held accountable for their illegal actions.”
From 2009 to July 2015, Correa was employed by the St. Louis Cardinals and became the director of Baseball Development in 2013. In this role, he provided analytical support to all areas of the Cardinals’ baseball operations. Correa is no longer employed by the Cardinals organization.
The Astros and the Cardinals, like many teams, measured and analyzed in-game activities to look for advantages that may not have been apparent to their competitors. To assist their efforts, the Astros operated a private online database called Ground Control to house a wide variety of confidential data, including scouting reports, statistics and contract information. The Astros also provided e-mail accounts to their employees. Ground Control and Astros e‑mails could be accessed online via password-protected accounts.
As part of his plea agreement, Correa admitted that from March 2013 through at least March 2014, he illicitly accessed the Ground Control and/or e-mail accounts of others in order to gain access to Astros proprietary information.
“The theft of intellectual property by computer intrusion is a serious federal crime,” said Turner. “The Houston Cyber Task Force stands ready to identify, pursue and defeat cyber criminals who gain unauthorized access to proprietary data. In each and every case, we will seek to hold those accountable to the fullest extent of the law.”
In one instance, Correa was able to obtain an Astros employee’s password because that employee has previously been employed by the Cardinals. When he left the Cardinals organization, the employee had to turn over his Cardinals-owned laptop to Correa – along with the laptop’s password. Having that information, Correa was able to access the now-Astros employee’s Ground Control and e-mail accounts using a variation of the password he used while with the Cardinals.
The plea agreement details a selection of instances in which Correa unlawfully accessed the Astros’ computers. For example, during 2013, he was able to access scout rankings of every player eligible for the draft. He also viewed, among other things, an Astros weekly digest page which described the performance and injuries of prospects who the Astros were considering, and a regional scout’s estimates of prospects’ peak rise and the bonus he proposed be offered. He also viewed the team’s scouting crosscheck page, which listed prospects seen by higher level scouts. During the June 2013 amateur draft, he intruded into that account again and viewed information on players who had not yet been drafted as well as several players drafted by the Astros and other teams.
Correa later intruded into that account during the July 31, 2013, trade deadline and viewed notes of Astros’ trade discussions with other teams.
Another set of intrusions occurred in March 2014. The Astros reacted by implementing security precautions to include the actual Ground Control website address (URL) and required all users to change their passwords to more complex passwords. The team also reset all Ground Control passwords to a more complex default password and quickly e‑mailed the new default password and the new URL to all Ground Control users.
Shortly thereafter, Correa illegally accessed the aforementioned person’s e‑mail account and found the e‑mails that contained Ground Control’s new URL and the newly-reset password for all users. A few minutes later, Correa used this information to access another person’s Ground Control account without authorization. There, he viewed a total of 118 webpages including lists ranking the players whom Astros scouts desired in the upcoming draft, summaries of scouting evaluations and summaries of college players identified by the Astros’ analytics department as top performers.
On two more occasions, he again illicitly accessed that account and viewed confidential information such as projects the analytics department was researching, notes of Astros’ trade discussions with other Major League Baseball teams and reports of players in the Astros’ system and their development.
The parties agreed that Correa masked his identity, his location and the type of device that he used, and that the total intended loss for all of the intrusions is approximately $1.7 million.
Each conviction of unauthorized access of a protected computer carries a maximum possible sentence of five years in federal prison and a possible $250,000 fine. U.S. District Judge Lynn N. Hughes accepted the plea today and has set sentencing for April 11, 2016. He was permitted to remain on bond pending that hearing.
The charges and conviction are the result of an investigation conducted by the FBI. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Former St. Louis Cardinals Official Pleads Guilty to Houston Astros Computer IntrusionsRead the Press Release
The former director of Baseball Development for the St. Louis Cardinals made an initial appearance in Houston federal court today on charges of accessing the Houston Astros’ computers without authorization, announced U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI Houston Division. Later this afternoon, the former Cardinals official then entered a guilty plea to all counts as charged.
Christopher Correa, 35, of St. Louis, was charged in a criminal information with five counts of unauthorized access of a protected computer. No other personnel associated with the Cardinals organization have been charged.
“We have secured an appropriate conviction in this case as a result of a very detailed, thorough and complete investigation,” said U.S. Attorney Magidson. “Unauthorized computer intrusion is not to be taken lightly. Whether it’s preserving the sanctity of America’s pastime or protecting trade secrets, those that unlawfully gain proprietary information by accessing computers without authorization must be held accountable for their illegal actions.”
From 2009 to July 2015, Correa was employed by the St. Louis Cardinals and became the director of Baseball Development in 2013. In this role, he provided analytical support to all areas of the Cardinals’ baseball operations. Correa is no longer employed by the Cardinals organization.
The Astros and the Cardinals, like many teams, measured and analyzed in-game activities to look for advantages that may not have been apparent to their competitors. To assist their efforts, the Astros operated a private online database called Ground Control to house a wide variety of confidential data, including scouting reports, statistics and contract information. The Astros also provided e-mail accounts to their employees. Ground Control and Astros e‑mails could be accessed online via password-protected accounts.
As part of his plea agreement, Correa admitted that from March 2013 through at least March 2014, he illicitly accessed the Ground Control and/or e-mail accounts of others in order to gain access to Astros proprietary information.
“The theft of intellectual property by computer intrusion is a serious federal crime,” said Special Agent in Charge Turner. “The Houston Cyber Task Force stands ready to identify, pursue and defeat cyber criminals who gain unauthorized access to proprietary data. In each and every case, we will seek to hold those accountable to the fullest extent of the law.”
In one instance, Correa was able to obtain an Astros employee’s password because that employee has previously been employed by the Cardinals. When he left the Cardinals organization, the employee had to turn over his Cardinals-owned laptop to Correa along with the laptop’s password. Having that information, Correa was able to access the now-Astros employee’s Ground Control and e-mail accounts using a variation of the password he used while with the Cardinals.
The plea agreement details a selection of instances in which Correa unlawfully accessed the Astros’ computers. For example, during 2013, he was able to access scout rankings of every player eligible for the draft. He also viewed, among other things, an Astros weekly digest page which described the performance and injuries of prospects who the Astros were considering, and a regional scout’s estimates of prospects’ peak rise and the bonus he proposed be offered. He also viewed the team’s scouting crosscheck page, which listed prospects who were seen by higher level scouts. During the June 2013 amateur draft, Correa intruded into that account again and viewed information on players who had not yet been drafted as well as several players drafted by the Astros and other teams.
Correa later intruded into that account during the July 31, 2013, trade deadline and viewed notes of the Astros’ trade discussions with other teams.
Another set of intrusions occurred in March 2014. The Astros reacted by implementing security precautions to include the actual Ground Control website address (URL) and required all users to change their passwords to more complex passwords. The team also reset all Ground Control passwords to a more complex default password and quickly e‑mailed the new default password and the new URL to all Ground Control users.
Shortly thereafter, Correa illegally accessed the aforementioned person’s e‑mail account and found the e‑mails that contained Ground Control’s new URL and the newly-reset password for all users. A few minutes later, Correa used this information to access another person’s Ground Control account without authorization. There, he viewed a total of 118 webpages including lists ranking the players whom Astros scouts desired in the upcoming draft, summaries of scouting evaluations and summaries of college players identified by the Astros’ analytics department as top performers.
On two more occasions, he again illicitly accessed that account and viewed confidential information, such as projects the analytics department was researching, notes of the Astros’ trade discussions with other Major League Baseball teams and reports of players in the Astros’ system and their development.
The parties agreed that Correa masked his identity, his location and the type of device that he used, and that the total intended loss for all of the intrusions is approximately $1.7 million.
Each conviction of unauthorized access of a protected computer carries a maximum possible sentence of five years in federal prison and a possible $250,000 fine.
The charges and conviction are the result of an investigation conducted by the FBI. Assistant U.S. Attorney Michael Chu of the Southern District of Texas is prosecuting the case.
Former Owner of Bostwick Laboratories Agrees to Pay up to $3.75 Million to Resolve Allegations of Unnecessary Testing and Illegal Remuneration to PhysiciansRead the Press Release
Dr. David G. Bostwick has agreed to pay the United States up to $3.75 million to resolve alleged violations of the False Claims Act for billing Medicare and Medicaid for medically unnecessary cancer detection tests and offering incentives to physicians to obtain Medicare and Medicaid business, the Department of Justice announced today. Dr. Bostwick was the founder, owner and chief executive officer of Bostwick Laboratories Inc. from 1999 to 2011. Bostwick Laboratories is a pathology laboratory headquartered in Glen Allen, Virginia.
“The Department of Justice is committed to ensuring that every laboratory test ordered is based on the medical needs of the patient and not just to increase physician and laboratory profits,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This case shows that the Department will not hesitate to hold accountable both the companies and the individuals who order or perform excessive, non-patient specific tests and provide inducements to physicians that lead to unnecessary costs being imposed upon our nation’s health care programs.”
The settlement announced today resolves claims that, from 2006 to 2011, Dr. Bostwick allegedly directed Bostwick Laboratories to bill Medicare and Medicaid for expensive cancer detection tests known as Fluorescent In Situ Hybridization (FISH) tests, as well as other tests, that were not medically necessary and were performed without the treating physicians’ consent or order. FISH tests are used to detect bladder cancer. During the time period covered by the settlement, Medicare reimbursement for FISH tests ranged from $456 to $966 per test.
The settlement also resolves allegations that Dr. Bostwick, through Bostwick Laboratories, offered various discounts and billing arrangements to treating physicians to induce physicians to refer business to Bostwick Laboratories in violation of the federal Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“We will continue to combat fraud against federal health care programs through actions against health care providers and by seeking accountability from responsible individuals,” said U.S. Attorney Carter M. Stewart for the Southern District of Ohio. “We are dedicated to holding accountable those who manipulate the health care system to collect money to which they are not entitled.”
Under the settlement announced today, Dr. Bostwick has agreed to pay over $2.6 million plus an additional $1.125 million if certain financial contingencies occur within the next five years - for a total potential payment of up to $3.75 million. On Aug. 28, 2014, Bostwick Laboratories previously agreed to pay over $6.5 million to resolve the allegations in this lawsuit.
The allegations resolved by these settlements were originally brought by whistleblower Michael Daugherty, who works in the industry, under the qui tam provisions of the False Claims Act. The act permits private citizens to sue on behalf of the government those who falsely claim federal funds. The act allows the whistleblower to receive a share of any funds recovered through the lawsuit. Daugherty will receive over $2.5 million from the government’s settlements with Dr. Bostwick and Bostwick Laboratories.
The government’s pursuit of the claims resolved by the settlements illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.1 billion through False Claims Act cases, with more than $17.1 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Ohio, and the U.S. Department of Health and Human Services, Office of Inspector General.
The case is captioned, United States ex rel. Daugherty v. Bostwick Laboratories, Inc. and David Bostwick, Civil Action No. 1:08-cv-354 (S.D. Ohio). The claims resolved by the government are allegations only; there has been no determination of liability.
Former Nist Police Officer Sentenced for Attempting to Manufacture Methamphetamine, Causing an ExplosionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced former National Institute of Standards and Technology (NIST) police officer Christopher Bartley, age 41, of Gaithersburg, Maryland, late yesterday to 41 months in prison followed by two years of supervised release for attempting to manufacture methamphetamine in a laboratory room on the NIST campus which resulted in an explosion.
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; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
"Methamphetamine is unsafe to produce and unsafe to use," said U.S. Attorney Rod J. Rosenstein. "Mr. Bartley damaged government property and jeopardized the health and safety of NIST employees by mixing dangerous chemicals."
According to his plea agreement, on Saturday, July 18, 2015, Bartley reported to work at NIST where he worked as a lieutenant with the NIST police force. That evening, Bartley entered a room inside a NIST building in order to use equipment to manufacture methamphetamine under a chemical fume hood. While attempting to manufacture methamphetamine, Bartley caused an explosion that blew four of the room’s windows out of their frames. The shatterproof windows were found at distances ranging from 22 to 33 feet from the building. Bartley suffered burns on his head and arm.
The explosion caused the temperature in the room to rise to 180 degrees, activating a silent heat alarm. When firefighters entered the building shortly thereafter, they saw Bartley next to the room with a burn on his arm, as well as singed ears and hair. The Court found that Bartley lied to the first responders and to his boss about the cause of the explosion, and thereby put them at risk of harm when they entered the location.
Before leaving the building, Bartley collected remnants of items from the scene of the explosion and later threw the items in a dumpster near the building. He then drove to another NIST building where he discarded additional items in the trash related to his attempt to manufacture methamphetamine.
Law enforcement later searched the trash near those two buildings and seized a coffee grinder with white powder residue, rubber gloves, a funnel, a soda bottle containing white powder with a rubber tube coming out the top, coffee filters, burnt and melted plastic, a bottle of Drano crystals, a gas mask and protective safety glasses.
Law enforcement agents searched Bartley’s vehicle and recovered a book that contained Bartley’s handwritten notes of ingredients and equipment needed to manufacture methamphetamine, including tubing, a funnel, coffee filters, Coleman camp fuel and lye.
At 1:27 a.m. on July 19, 2015, Bartley sent an email to his supervisor titled “tonight’s explosion” in which he admitted he had attempted to manufacture methamphetamine. A few hours later, Bartley also admitted to a law enforcement agent that he had been trying to manufacture methamphetamine at the time the explosion occurred.
The total amount of methamphetamine involved in the offense was less than five grams.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein praised the Department of Commerce – Office of Inspector General and NIST for their assistance in the investigation, and thanked Assistant U.S. Attorneys Leah Jo Bressack and Mara Zusman Greenberg, who prosecuted the case.
Former FPC-Greenville Inmate Pleads Guilty to EscapeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on January 7, 2016, Shelia B. Hatfield, 52, formerly an inmate at the Federal Prison Camp in Greenville, Illinois (FPC-Greenville), pled guilty to an Indictment charging her with Escape. Hatfield faces a term of imprisonment of not more than five (5) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. Hatfield’s sentencing is scheduled for May 3, 2016, in Benton, Illinois. She has been detained (held without bond) since her arraignment on the Indictment on May 12, 2015.
The charged offense occurred on March 9, 2015, when Hatfield, who was an inmate at FPC-Greenville at the time, was found at a convenience store outside the prison camp’s grounds in Greenville, Illinois. The investigation determined that Hatfield had not received authorization to leave the grounds of FPC-Greenville.
The case was investigated by the Bureau of Prisons. The case is assigned to Assistant United States Attorney Angela ScottFormer DoD Contracting Official Sentenced to Prison for BriberyRead the Press Release
ALEXANDRIA, Va. – James Edward Addas, 55, of Stafford, was sentenced today to 30 months in prison for his role in a bribery scheme involving U.S. government contracts in Iraq.
Addas pleaded guilty on Feb. 20, 2015. According to court documents, in August 2004, Addas was a contracting official at the Iraq/Afghanistan Joint Contracting Command in the U.S. Embassy in Baghdad when the owner and CEO of a contracting company based in Jordan offered to pay him a total of $1 million in return for assistance in obtaining U.S. government contracts for major electrical construction projects and related services in Iraq. The contractor made an initial cash payment of $50,000 in a paper sack, which was handed to Addas inside the “Green Zone” of the U.S. Embassy compound. With Addas’s assistance, the contractor’s companies subsequently received at least 15 contracts, with a total value of more than $28 million awarded to the companies. In addition to the initial payment, the contractor later sent funds to Addas via wire transfers that totaled more than $455,000 and paid for other items valued at more than $70,000. Addas did not declare any of this income on his filed federal tax returns.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit; Robert E. Craig Jr., Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office; Darrell Gilliard, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Washington D.C. Field Office; and John F. Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR), made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Uzo Asonye and Trial Attorney Wade Weems of the Criminal Division’s Fraud Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-33.
Former Contracting Official Sentenced to 30 Months for Bribery in Relation to U.S. Government Contracts in IraqRead the Press Release
A former U.S. Department of Defense contracting official was sentenced today to 30 months in prison for his role in a bribery scheme involving U.S. government contracts in Iraq.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS) Washington, D.C., Field Office and the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
James Edward Addas, 55, of Stafford, Virginia, previously pleaded guilty to charges of bribery and tax evasion. Senior U.S. District Judge Claude M. Hilton of the Eastern District of Virginia handed down Addas’ sentence today.
According to admissions made in the plea agreement, in August 2004, Addas was a contracting official at the Iraq/Afghanistan Joint Contracting Command in the U.S. Embassy in Baghdad when the owner and CEO of a contracting company based in Jordan offered to pay him a total of $1 million in return for assistance in obtaining U.S. government contracts for major electrical construction projects and related services in Iraq. The contractor made an initial cash payment of $50,000 in a paper sack, which was handed to Addas inside the “Green Zone” of the U.S. Embassy compound. With Addas’ assistance, the contractor’s companies subsequently received at least 15 contracts, with a total value of more than $28 million awarded to the companies. In addition to the initial payment, the contractor later sent funds to Addas via wire transfers that totaled more than $455,000 and paid for other items valued at more than $70,000. Addas did not declare any of this income on his filed federal tax returns.
Special Agents of CID, DCIS, NCIS, SIGAR and the Internal Revenue Service investigated the case. Trial Attorney Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia prosecuted the case.
Federal Jury Convicts Member of International Child Exploitation ConspiracyRead the Press Release
ALEXANDRIA, Va. – Brian K. Hendrix, 42, of Mt. Juliet, Tennessee, was convicted today by a federal jury on child pornography charges relating to his participation in two websites that were operated for the purpose of coercing and enticing minors, as young as eight years old, to engage in sexually explicit conduct on web camera.
An estimated 1,600 minors were lured to the websites. During the investigation, named Operation Subterfuge, the FBI identified more than 300 minor victims in the United States, and the RCMP National Child Exploitation Coordination Centre identified 43 minor victims in Canada.
Hendrix was charged by superseding indictment on July 23, 2015. Eight co-conspirators were charged in the Eastern District of Virginia, while two other co-conspirators were charged in foreign countries.
According to court records and evidence at trial, co-conspirators created false profiles on social networking sites, such as YouTube, that portrayed them as young teenagers. They used these profiles to lure children to the websites they controlled. Once on the conspirators’ websites, the conspirators played pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Using these videos, conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras which the website automatically recorded. Based on their contribution to the success of website objectives, conspirators earned points, which allowed them access to the sexually exploitative videos of children. Law enforcement agencies have disabled both websites.
In addition to Hendrix, the conspirators have been convicted and sentenced as follows:
Name, Age, Hometown
Status
Anthony Evans, 54, Grahamstown, South Africa
Pleaded guilty in South Africa and was sentenced to 10 years in prison on May 29, 2015. An extradition request remains pending.
William J. Morgan, 36, Essex, New York
Pleaded guilty June 26, 2015. Sentenced to 21 years in prison on Sept. 18, 2015.
Milton Smith, Jr., 34, Lorton, Virginia
Pleaded guilty Aug. 14, 2015. Sentencing scheduled for Jan. 22, 2016.
James E. Hancock, 45, Thomasville, Georgia
Pleaded guilty Dec. 29, 2015. Sentencing scheduled for April 1, 2016.
Christopher McNevin, 37, Carlisle, Ohio
Pleaded guilty Aug. 21, 2015. Sentenced to 19 years in prison on Dec. 4, 2015.
Brian K. Hendrix, 42, Mt. Juliet, Tennessee
Convicted by jury on Jan. 8, 2016. Sentencing scheduled for April 8, 2016.
Carl Zwengel, 51, Princeton, Illinois
Pleaded guilty on July 10, 2015. Sentenced to 18 years in prison on Oct. 2, 2015.
Karlo Hitosis, 32, Bronx, New York
Pleaded guilty on October 30, 2015. Sentencing scheduled for Feb. 5, 2016.
Stephen Funk, 35, Milwaukee, Wisconsin
Pleaded guilty on Dec. 18, 2015. Sentencing scheduled for March 25, 2016.
Hendrix faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when sentenced on April 8, 2016. The maximum statutory sentence is prescribed by Congress and is provided for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Calvin Shivers, Section Chief, FBI Violent Crimes Against Children Section, made the announcement after the verdict was accepted by U.S. District Judge T.S. Ellis. Assistant U.S. Attorney Tracy Doherty-McCormick and Trial Attorney Lauren Britsch with the Child Exploitation and Obscenity Section of the U.S. Department of Justice prosecuted the case. Trial Attorney Ravi Sinha, with the Child Exploitation and Obscenity Section, assisted with the prosecution. The Criminal Division’s Office of International Affairs also provided assistance.
Violent Crimes Against Children Section special agents led the investigation with the assistance of other VCACS special agents, the FBI’s Operation Rescue Me, the Digital Analysis and Research Center, and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection, and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD, and the Australian Federal Police, Child Protection Operations, Sydney all worked closely with VCACS and were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. The Royal Canadian Mounted Police, National Child Exploitation Coordination Centre, identified 43 victims as part of the operation. The U.S. Attorney’s Offices and FBI offices in the Middle District of Georgia, Southern District of New York, Northern District of New York, Eastern District of Wisconsin, Middle District of Tennessee, Central District of Illinois and Southern District of Ohio, and the National Center for Missing and Exploited Children also contributed to the investigation and prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-172; 1:15-cr-42.
Federal Jury Convicts Member of International Child Exploitation ConspiracyRead the Press Release
A Mt. Juliet, Tennessee, man was convicted today by a federal jury on child pornography charges relating to his participation in two websites that were operated for the purpose of coercing and enticing minors to engage in sexually explicit conduct on web camera.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Section Chief Calvin Shivers of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Brain K. Hendrix, 42, was charged by superseding indictment on July 23, 2015. Eight co-conspirators were charged in the Eastern District of Virginia and two co-conspirators have been charged in foreign countries. The investigation, Operation Subterfuge, identified more than 300 minor victims and an estimated 1,600 minors were lured to the websites. U.S. District Judge T.S. Ellis of the Eastern District of Virginia presided over the trial.
According to court records and evidence at trial, co-conspirators created false profiles on social networking sites, such as YouTube, that portrayed them as young teenagers. They used these profiles to lure children to the websites they controlled. Once on the conspirators’ websites, the conspirators played pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Using these videos, conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras which the website automatically recorded. Based on their contribution to the success of website objectives, conspirators earned points, which allowed them access to the sexually exploitative videos of children. Law enforcement agencies have disabled both websites.
In addition to Hendrix, the conspirators have been convicted and sentenced as follows:
Name, Age, Hometown
Status
Anthony Evans, 54, of Grahamstown, South Africa
Pleaded guilty in South Africa and was sentenced to 10 years in prison on May 29, 2015. An extradition request remains pending.
William J. Morgan, 36, of Essex, New York
Pleaded guilty on June 26, 2015. Sentenced to 21 years in prison on Sept. 18, 2015.
Milton Smith Jr., 34, of Lorton, Virginia
Pleaded guilty on Aug. 14, 2015. Sentencing is scheduled for Jan. 22, 2016.
James E. Hancock, 45, of Thomasville, Georgia
Pleaded guilty on Dec. 29, 2015. Sentencing is scheduled for April 1, 2016.
Christopher McNevin, 37, of Carlisle, Ohio
Pleaded guilty on Aug. 21, 2015. Sentenced to 19 years in prison on Dec. 4, 2015
Carl Zwengel, 51, of Princeton, Illinois
Pleaded guilty on July 10, 2015. Sentenced to 18 years in prison on Oct. 2, 2015.
Karlo Hitosis, 32, of Bronx, New York
Pleaded guilty on Oct. 30, 2015. Sentencing is scheduled for Feb. 5, 2016.
Stephen Funk, 35, Milwaukee
Pleaded guilty on Dec. 18, 2015. Sentencing is scheduled for March 25, 2016.
VCACS special agents led the investigation with the assistance of FBI’s Operation Rescue Me, the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection, and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD, and the Australian Federal Police, Child Protection Operations, Sydney all worked closely with VCACS and were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. The Royal Canadian Mounted Police, National Child Exploitation Coordination Centre, identified 43 victims as part of the operation. The U.S. Attorney’s Offices and FBI offices in the Middle District of Georgia, Southern District of New York, Northern District of New York, Eastern District of Wisconsin, Middle District of Tennessee, Central District of Illinois and Southern District of Ohio, and the National Center for Missing and Exploited Children also contributed to the investigation and prosecution. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Tracy Doherty-McCormick prosecuted the case. CEOS Trial Attorney Ravi Sinha assisted with the prosecution. The Criminal Division’s Office of International Affairs also provided assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ex-UPMC Employee Sentenced to Prison for Health Care FraudRead the Press Release
PITTSBURGH - A resident of Rural Valley, Pennsylvania, has been sentenced in federal court to 21 months’ imprisonment followed by two years of supervised release and ordered to pay $184,835.09 in restitution on her conviction of mail fraud and health care fraud offenses, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Francine Ann Priestas 48.
According to information presented to the court, Priestas was employed as a supervisor in the UPMC Health Plan Claims Department. Priestas generated billing statements which falsely represented that she and others received medical services. She submitted 156 false statements on the UPMC system and received payments totaling $184,835.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Priestas.
Elyria man sentenced to more than 10 years in prison for drug and firearms convictionsRead the Press Release
An Elyria man was sentenced to more than a decade in prison for federal narcotics and firearms violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jerry L. Wells, Jr., 34, was sentenced to 125 months in prison after previously being found guilty of distribution of heroin, possession with intent to distribute marijuana and MDMA, and being a felon in possession of a firearm.
Wells distributed heroin on four occasions in February. He also possessed 30 grams of MDMA and 60 marijuana plants on Feb. 21, according to court documents.
On that same date, Wells possessed a Taurus 9 mm pistol despite several previous convictions in Lorain County Common Pleas Court, including heroin trafficking, cocaine trafficking and burglary, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Robert F. Corts following an investigation by the Elyria Police Department, the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives.
District Man Sentenced to 40 Years in Prison for Two Home Invasions in Northeast WashingtonRead the Press Release
WASHINGTON – Tavon Barber, 20, of Washington, D.C., was sentenced today to 40 years in prison on charges stemming from a pair of home invasions he committed within a roughly 20-hour period in Northeast Washington, including one in which he sexually assaulted a woman, U.S. Attorney Channing D. Phillips announced.
Barber was found guilty in November 2014, following a trial in the Superior Court of the District of Columbia, of 21 counts, including first-degree burglary, first-degree burglary while armed, assault with intent to commit first-degree sexual abuse while armed, three counts of third-degree sexual abuse while armed, three counts of assault with a dangerous weapon, and related offenses. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Barber will be placed on five years of supervised release. He also will be required to register as a sex offender for the rest of his life once he is released from prison.
According to the government’s evidence at trial, on June 4, 2013, between 9:30 a.m. and 11:30 a.m., Barber broke into a home in the 1100 block of 6th Street NE through an unlocked kitchen window. At the time, two people were inside the house asleep. Once inside, Barber stole two laptops, a book bag full of various items and car keys. He then used the car keys to steal the car, which belonged to one of the residents.
Approximately 20 hours later, at approximately 4:30 a.m., Barber and an accomplice broke into a home in the 2400 block of Second Street NE, armed with a loaded .40-caliber, semi-automatic pistol. Wearing something to conceal their faces, they went upstairs to the bedroom where the owners of the home, a husband and wife, were sleeping.
Barber turned on the lights and woke the homeowners from sleep. He demanded money, and told them to put their heads under their pillows. Barber then sexually assaulted the wife, while holding the husband hostage at gunpoint. As Barber sexually assaulted the wife, the husband lunged at him, enabling his wife to escape. Barber and the husband struggled from the second floor, down the stairs, and to the back of the house. Once there, Barber fired a shot at the husband’s head. The bullet missed the husband and entered the wall above his head.
Barber then fled, with his accomplice, out the back of the house. The intruders left with two iPhones, a MacBook, a laptop and the husband’s wallet.
Barber was arrested on June 29, 2013 and has been in custody ever since. The second man earlier pled guilty to charges in the case.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists Jason Manuel and Benjamin Kagan-Guthrie; Victim/Witness Advocate Veronica Vaughan; Victim/Witness Security Specialists Katina Adams-Washington, David Foster, and Wanda Queen, and Litigation Technology Specialist Thomas R. Royal. Finally, he commended the work of Assistant U.S. Attorneys Sharon Donovan and Lindsay Suttenberg, who investigated and prosecuted the case.
Countering Violent Extremism Task Force Fact SheetRead the Press Release
Since the White House Summit on Countering Violent Extremism (CVE) last February, the U.S. government has focused on strengthening our effort to prevent extremists from radicalizing and mobilizing recruits, especially here at home. Advancing this effort means working as effectively as possible across the U.S. government, which is why we are forming the CVE Task Force.
“The federal government’s top priority is protecting the American people from all forms of violent extremism,” said Attorney General Loretta E. Lynch. “By bringing together agencies from across the Executive Branch, this innovative task force will allow us to more efficiently and effectively support local efforts to counter violent extremism. The Department of Justice looks forward to joining the Department of Homeland Security in leading this new initiative, which represents an important step in our ongoing work to keep our communities safe and our country strong.”
“Countering violent extremism has become a homeland security imperative, and it is a mission to which I am personally committed,” said Secretary of Homeland Security Jeh Johnson. “At the Department of Homeland Security, our Office of Community Partnerships – which I established last year to take the Department’s CVE efforts to the next level – has been working to build relationships and promote trust with communities across the country, and to find innovative ways to support those who seek to discourage violent extremism and undercut terrorist narratives. The interagency CVE Task Force that we are announcing today, and which will be hosted by the Department of Homeland Security, will bring together the best resources and personnel from across the executive branch to ensure that we face the challenge of violent extremism in a unified and coordinated way.”
Since the Strategy to Empower Local Partners to Prevent Violent Extremism in the United States was issued in 2011, many federal, state, local and tribal governments have contributed meaningfully to the CVE effort. However, the efforts of ISIL and other groups to radicalize American citizens has required the U.S. government to update the efforts that began five years ago. Beginning in the summer of 2015, representatives from 11 departments and agencies reviewed our current structure, strategy and programs and made concrete recommendations for improvement. The review validated the objectives of the 2011 strategy but identified gaps in its implementation. The new task force will coordinate government efforts and partnerships to prevent violent extremism in the United States.
The review team identified four key needs:
- An infrastructure to coordinate and prioritize CVE activities;
- Clear responsibility, accountability and communication across government and with the public;
- Participation of relevant departments and agencies outside of national security lanes; and
- A process to assess, prioritize and allocate resources to maximize impact.
The CVE Task Force will be a permanent interagency task force hosted by the Department of Homeland Security (DHS) with overall leadership provided by DHS and the Department of Justice, with additional staffing provided by representatives from the FBI, National Counterterrorism Center and other supporting departments and agencies. The task force will be administratively housed at DHS. The CVE Task Force will address the gaps identified in the review by (1) synchronizing and integrating whole-of-government CVE programs and activities; (2) leveraging new CVE efforts, for example those of the DHS Office for Community Partnerships; (3) conducting ongoing strategic planning; and (4) assessing and evaluating CVE programs and activities.
The CVE Task Force will organize federal efforts into several areas, including:
- Research and Analysis. The Task Force will coordinate federal support for ongoing and future CVE research and establish feedback mechanisms for CVE findings, thus cultivating CVE programming that incorporates sound results.
- Engagements and Technical Assistance. The Task Force will synchronize Federal Government outreach to and engagement with CVE stakeholders and will coordinate technical assistance to CVE practitioners.
- Communications. The Task Force will manage CVE communications, including media inquiries, and leverage digital technologies to engage, empower and connect CVE stakeholders.
- Interventions. The Task Force will work with CVE stakeholders to develop multidisciplinary intervention programs.
Convicted Sex Offender from Albuquerque Pleads Guilty to Possession of Child PornographyRead the Press Release
ALBUQUERQUE – Michael Lippke, 71, a previously convicted sex offender from Albuquerque, N.M., pleaded guilty today in federal court to possessing child pornography. Under the terms of his plea agreement, Lippke will be sentenced to ten years in federal prison followed by five years of supervised release. He will be required to register as a sex offender following his term of incarceration.
Lippke was arrested on July 16, 2015, on an indictment charging him with two counts of distribution of visual depictions of minors engaged in sexually explicit conduct and seven counts of possession of visual depictions of minors engaged in sexually explicit conduct. The indictment alleged that Lippke distributed child pornography on July 20, 2014 and July 22, 2014. It also alleged that Lippke possessed child pornography between Aug. 21, 2010 and Dec. 10, 2014, on several computers and computer-related media. According to the indictment, the nine offenses were committed in Bernalillo County, N.M.
During today’s change of plea hearing, Lippke pled guilty to the seven possession of child pornography charges, and admitted that he possessed child pornography from Aug. 21, 2010 through Dec. 10, 2014. Lippke remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Homeland Security Investigations and the Office of the New Mexico Attorney General, with assistance from the 2nd Judicial District Attorney’s Office. All are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement. This case was investigated by the ATF office in Albuquerque and APD.
The case also is brought as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Centralia Woman Sentenced for Meth ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Rachel L. Reeve, 24, of Centralia, Illinois, was sentenced today to 46 months in federal prison, 5 years’ supervised release to follow imprisonment, a $400 fine and a $200 special assessment. There is no parole in the federal system. Sentencing followed Reeve’s September 18, 2015, guilty plea to Conspiracy to Manufacture and Distribute Methamphetamine, and Possession of Pseudoephedrine Knowing It Would Be Used to Manufacture Methamphetamine.
According to court documents, from approximately December 2012, to February 21, 2014, in Marion, Clinton and Jefferson Counties, Reeve agreed to, and did, provide pills containing pseudoephedrine to others in exchange for cash, knowing they would be used to manufacture methamphetamine. Reeve wanted the cash to support her own drug habit.
Information leading to the conviction of Reeve was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.Berlin Man Pleads Guilty to Armed Bank Robbery and to Brandishing a FirearmRead the Press Release
Baltimore, Maryland – Jeff V. Hare, age 53, of Berlin, Maryland, pleaded guilty today to armed bank robbery and brandishing a firearm during a crime of violence.
The guilty plea 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; Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According his plea agreement, on March 13, 2015, Hare entered the BB&T branch located at 11000 block of Racetrack Road in Berlin, wearing a ski mask and brandishing a handgun.
Hare told the bank tellers present in the bank’s lobby that he had a gun and he was robbing the bank, demanding that the tellers give him only fifty and one hundred dollar bills, and that they not give him any dye packs. Hare moved through the lobby from employee to employee pointing the handgun at each employee and demanding money. Hare also demanded each teller give him their car keys and purse, but the tellers told Hare they did not have them available. Hare stole approximately $2,850 in cash from the bank.
Hare admitted that after robbing the tellers in the lobby, Hare found a bank employee who had locked herself in a back room of the bank. Hare forced open the locked door and demanded her car keys and her purse. The employee gave Hare her purse, which contained cash and personal effects, and the keys to her car, a 2007 Kia Spectra, which was parked in the bank’s parking lot. Hare exited the bank and fled in the stolen 2007 Kia Spectra, which he abandoned at a nearby business.
Hare was arrested later that evening at a residence in Ocean Pines, Maryland. At the time of his arrest, Hare was still in possession of the money stolen from the bank
Hare has been detained since his arrest. During that time, Hare attempted to impede the investigation of the armed bank robbery and carjacking by seeking to arrange for the disposal of evidence of the crimes. On May 1, 2015, an associate of Hare visited him at the Worcester County Detention Center in Snow Hill, Maryland. During that visit, Hare told his associate that he was being framed and that unidentified persons had a box of garbage that would incriminate him. Hare asked the person to retrieve the box from an address in Ocean Pines, which was Hare’s former residence. On May 6, 2015, Hare called his associate and asked him, “By going to that address, did you get rid of the trash,” referring to the box Hare had asked the associate to retrieve. The box contained the ski mask Hare wore during the robbery and carjacking, a .38 caliber revolver believed to have been used during the robbery, and the purse Hare stole from the bank employee, including her driver’s license.
Hare faces a maximum sentence of 25 years in prison for armed bank robbery; and a mandatory minimum of seven years and up to life in prison for brandishing a firearm during a crime of violence. U.S. District Judge James K. Bredar has scheduled sentencing for April 12, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Worcester County Sheriff’s Office, Maryland State Police and the Worcester County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Zachary A. Myers and Matthew J. Maddox, who are prosecuting the case.
Attorney General Loretta E. Lynch Statement on Capture of Joaquin ‘Chapo’ Guzman LoeraRead the Press Release
Today, Attorney General Loretta E. Lynch released the following statement on the capture of Joaquin ‘Chapo’ Guzman Loera:
“Today’s capture of Joaquin ‘Chapo’ Guzman Loera by Mexican authorities is a blow to the international drug-trafficking syndicate he is alleged to have led, a victory for the citizens of both Mexico and the United States, and a vindication of the rule of law in our countries. Guzman’s latest attempt to escape has failed, and he will now have to answer for his alleged crimes, which have resulted in significant violence, suffering and corruption on multiple continents. I commend the Government of Mexico for this arrest, and I salute the Mexican law enforcement and military personnel who have worked tirelessly in recent months to bring Guzman to justice. The U.S. Department of Justice is proud to maintain a close and effective relationship with our Mexican counterparts, and we look forward to continuing our work together to ensure the safety and security of all our people.”
2nd Former Postal Employee Sentenced in Mail Theft ConspiracyRead the Press Release
PROVIDENCE, R.I. – Joan Manuel Mustafa, 28, of Providence, was sentenced today to 24 months in federal prison for his role in a conspiracy to steal U.S. Treasury checks from the U.S. mail, and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The bank funds were then withdrawn or used to make retail purchases with the use of debit cards.
At sentencing, Mustafa was also ordered to serve 2 years supervised release upon completion of his prison term, and to perform 100 hours of community service. Mustafa pleaded guilty on October 21, 2015, to one count each of conspiracy, theft of mail and theft of public money or property.
Mustafa’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Eileen Neff, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office.
A co-defendant in this matter, Erick Vera-Garzon, 36, of Providence, was sentenced last month to 36 months in federal prison. Vera-Garzon pleaded guilty on September 23, 2015, to conspiracy, theft of mail and theft of public money or property.
An investigation by the Providence Police Department Intelligence and Organized Crime Unit and the United States Postal Service (USPS) Office of Inspector General (OIG) resulted in the seizure of approximately $1.6 million dollars worth of stolen U.S. Treasury checks, several dozen stolen gift cards, and more than $165,000 in cash gained as a result of the sale of stolen checks and gift cards.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the disappearance of U.S. Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The missing checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center. At the same time, independent of the USPS-OIG investigation, a Providence Police Department detective developed information that Vera-Garzon was selling stolen U.S. Treasury checks at 20% of face value to buyers on the streets of Rhode Island and New York. The investigation determined that many of the stolen checks were deposited in bank accounts that had been opened in Rhode Island, Massachusetts and New York in the names of some of the individuals whose checks had gone missing. The funds were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, and the purchase of money orders.
Based on the information developed by the Providence Police Department Intelligence and Organized Crime Unit, court authorized search warrants were obtained and executed at Mustafa and Vera-Garzon’s residences on April 16, 2015. Law enforcement seized more than 900 stolen U.S. Treasury checks valued at approximately $1.6 million dollars, several dozen gift cards and more than $53,000 in cash. Vera-Garzon and Mustafa were arrested on April 16, 2015.
The cases were prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Richard W. Rose.
Agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
7 January 2016
‘Dirty Block’ Gang Leader Sentenced to Life in Prison for Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – The leader of a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, New Jersey, was sentenced today to life in prison for drug conspiracy and weapons charges, U.S. Attorney Paul J. Fishman announced.
Mykal Derry, a/k/a “Koose,” 35, of Atlantic City, was previously convicted of conspiracy to distribute one kilogram or more of heroin, distributing heroin, maintaining a place for the purposes of storing and distributing heroin, possessing, brandishing and discharging firearms in furtherance of the drug conspiracy and using a communications device in furtherance of a drug trafficking crime. Mykal Derry was convicted following a six-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Mykal Derry was the leader of the gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City and controlled the lucrative drug trafficking area of the Stanley Holmes public housing complex, Brown’s Park and the surrounding area.
The evidence showed that Derry and other members of the group routinely carried loaded handguns and engaged in at least eight drug related shootings between October 2010 and February 2013, including the shooting of a teenager on April 17, 2011, which left the teenager paralyzed. The trial testimony of a cooperating witness established that Derry had his cousin shoot the teenager because he was cooperating with police in an earlier case involving Derry and other drug associates’ assault of the teenager in October 2010.
Additional testimony established that Mykal Derry and his brother, Malik Derry, a/k/a “Lik,” 24, also of Atlantic City, planned and carried out the shooting murder of a rival drug dealer in Atlantic City on the evening of Feb. 10, 2013. Mykal Derry told members of his gang that he wanted them to “put him down” (referring to an order to shoot the rival dealer) when they saw him. Malik Derry shot the victim in the head from close range while riding a bicycle past him as the victim stood in front of an Atlantic City restaurant.
The murder weapon, a stolen .380 caliber semi-automatic handgun, was later recovered from the drop ceiling in an apartment located on Green Street in Atlantic City, which, at the time, was shared by Mykal Derry and his girlfriend, Kimberly Spellman, 34, of Egg Harbor Township, New Jersey. Atlantic City police detectives also found 18 “bricks” of heroin (approximately 900 individual packets of heroin) and drug packaging materials inside the apartment.
The evidence presented by the government at trial consisted of recordings of hundreds of telephone calls and text messages between Mykal Derry and over twenty other members of the drug gang, physical evidence including the recovery of twenty firearms, ballistics evidence from shooting scenes, crime scene evidence from eight different shooting scenes in Atlantic City, recovery of substantial quantities of heroin and drug packaging materials, approximately $40,000 in drug proceeds, the testimony of dozens of FBI agents and Atlantic City police detectives, the testimony of ballistics experts, a narcotics expert, and the testimony of two cooperating witnesses who had previously pleaded guilty to federal drug trafficking offenses.
Malik Derry still awaits sentencing after being convicted at trial of conspiracy to distribute one kilogram or more of heroin, possessing and discharging firearms in furtherance of the conspiracy and using a communications device in furtherance of a drug trafficking crime. Spellman previously pleaded guilty to a superseding information charging her with conspiracy to distribute heroin and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police, the Atlantic County Sheriff’s Office, the Northfield Police Department, the Vineland Police Department, the Brigantine Police Department, and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense Counsel: Emmett Madden Esq., Philadelphia
Zuni Pueblo Man Pleads Guilty to Federal Murder ChargeRead the Press Release
ALBUQUERQUE – Douglas Burt, 19, a member and resident of Zuni Pueblo, pled guilty today in federal court in Albuquerque, N.M., to a second degree murder charge. Under the terms of his plea agreement, Burt he will be sentenced within the range of 204 to 264 months in federal prison followed by a term of supervised release to be determined by the court.
Burt and his co-defendant Dusty Chavez, 23, also a member and resident of Zuni Pueblo, were arrested in Nov. 2014, on a criminal complaint charging them with murdering a man on Oct. 28, 2014, in the Zuni Indian Reservation in McKinley County, N.M. Burt and Chavez were subsequently indicted on a murder charge on Nov. 19, 2014.
During today’s change of plea hearing, Burt pled guilty to a felony information charging him with second degree murder. According to the plea agreement, Burt and Chavez instigated a fight with the victim during which Chavez threw the victim to the ground and started kicking and punching the victim. Burt also kicked the victim; Chavez hit the victim in the head with a rock, and Burt stabbed the victim in the chest. The autopsy report revealed that the victim died as a result of blunt force trauma to the head and stab wounds to the chest.
Chavez has entered a not guilty plea to the indictment. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Burt has been in federal custody since his arrest. He remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorneys Elaine Y. Ramirez and Kyle T. Nayback are prosecuting the case.
White Horse Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a White Horse, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 5, 2016, by U.S. District Judge Roberto A. Lange.
Sage Miner, age 32, was sentenced to 12 months and 1 day in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Miner was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on May 15, 2015. He pled guilty to Assault Resulting in Serious Bodily Injury on October 22, 2015.
The conviction arose from a March 21, 2015, incident at White Horse. Miner was at his cousin’s house, as was the victim. Miner began yelling at the victim and he and the victim began pushing each other. Miner threw the victim towards the door and the victim fell. Miner went over and started hitting the victim with his fists at least ten times. He also kicked the victim’s head or body with the steel-toed boots he was wearing at least three times. Miner continued yelling at the victim and had to be pulled off. Miner left the house, but ran back through the front door and starting hitting the victim again, at least ten times on this occasion. He was again pulled off the victim and his cousin told him to leave. Miner then began fighting with his cousin. Miner left the house a second time, and his cousin locked the door and returned to tend to the victim, who was sitting up on the kitchen floor. Miner ran in the back door, jumped on top of the victim, and hit him at least seven times on this occasion. Miner said if anyone tried to help the victim, he would come after them next. Miner’s cousin could not pull him off the victim, so he left to get help. When he returned to his home, the victim was unconscious on the floor and Miner was gone. The victim suffered multiple facial injuries and fractures, including a blowout fracture of the orbital eye socket. After he was released from the hospital, the victim continued to have problems, including ongoing balance problems, dizziness, and headaches.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Miner was immediately turned over to the custody of the U.S. Marshals Service.
West Suburban Doctor Sentenced to Two Years in Federal Prison for Falsely Approving Unnecessary TreatmentRead the Press Release
CHICAGO — A west suburban physician was sentenced today to two years in prison for fraudulently certifying patients as confined to the home, allowing healthcare agencies to bill Medicare for millions of dollars in unnecessary in-home treatment.
As an employee and part-owner of Bloomingdale-based Home Care Physicians Inc., DR. ARTHUR DAVIDA received referrals from home-health agencies asking him to certify the patients as confined to the home. Although he knew that at least 20 percent of the patients were not confined to the home, Davida nonetheless provided the certification – allowing the agencies to bill Medicare for treatment that Davida knew was not medically necessary. Davida acknowledged in a plea agreement that he provided the certifications because he feared that, if he didn’t, the home-health agencies would stop sending him the referrals.
In imposing the 24-month sentence, U.S. District Judge John J. Tharp Jr. described the crime as a “very serious offense,” and one that involved “stealing money” from the Medicare program.
Davida, 62, of Bloomingdale, pleaded guilty last year to a health care fraud charge contained in a criminal information. According to the plea agreement, Davida began working at Home Care Physicians in 2009, and started conducting in-home visits in 2010. From 2010 and continuing through August 2013, Davida certified numerous patients as confined to the home and in need of skilled nursing services, when, in fact, they were able to leave their homes and did not need such services. The certifications caused the home-health agencies to submit claims to Medicare for payment of bills pertaining to medically unnecessary services.
Home-health agencies were paid more than $20 million by Medicare based on orders signed by Davida. Given his admission that 20 percent of these patients were not confined to the home, Davida acknowledged in the plea agreement that he caused losses of at least $4 million to the Medicare program.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General. The government is represented by Assistant United States Attorney Stephen Chahn Lee.
The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the FBI and HHS, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Department of Justice and HHS to prevent fraud and enforce anti-fraud laws around the country.
To report health care fraud or to learn more about HEAT, logon to: StopMedicareFraud.gov.
Uzbek National Sentenced to 25 Years in Prison on Terrorism ChargesRead the Press Release
Fazliddin Kurbanov, 33, an Uzbek national, was sentenced today to 25 years in federal prison by Senior U.S. District Judge Edward J. Lodge of the District of Idaho for conspiring and attempting to provide material support to a designated foreign terrorist organization and possessing an unregistered destructive device.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wendy J. Olson of the District of Idaho and Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division made the announcement.
Judge Lodge also sentenced Kurbanov to a term of supervised release of three years and imposed a fine of $250,000. Kurbanov, who was convicted in August 2015 after a 20-day trial, will also face deportation proceedings at the end of his prison sentence.
“Fazliddin Kurbanov was sentenced for conspiring and attempting to provide material support to the Islamic Movement of Uzbekistan and procuring bomb-making materials in the interest of executing a terrorist attack on American soil,” said Assistant Attorney General Carlin. “Thankfully, the threat posed by Kurbanov was disrupted by the tireless efforts of the law enforcement community and its partners. Defending our nation from the threat of terrorism, whether at home or abroad, remains the highest priority of the National Security Division, and we will continue to hold accountable those who seek to harm to our country and our citizens.”
“The lengthy term of imprisonment imposed by the Court ensures that this defendant, who by his words and acts was intent on taking American lives, does not and will not pose any further threat to the safety and security of our community,” said U.S. Attorney Olson. “The investigation, prosecution, and now sentence in this case demonstrate the cooperative law enforcement effort by federal, state and local agencies to protect our national security and prevent acts of terrorism. I commend the men and women at every level of law enforcement and prosecution, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“The worst of intentions on the part of Mr. Kurbanov, that is the mass killing of Americans, were thwarted by the best of collaboration on the part of the entire law enforcement community,” said Special Agent in Charge Barnhart.
According to evidence presented at trial:
Between the summer of 2012 and his arrest in May 2013, Kurbanov, who was living in Boise, Idaho, communicated by email and Skype with a person or persons operating a website for the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization. Kurbanov discussed with the website administrator his animosity toward Americans, particularly the military; his desire to build a bomb; possible targets in the United States, including military bases in Idaho and Texas; and his need for instruction on how to construct and remotely detonate a bomb. Additionally, Kurbanov searched for and later discussed with an FBI confidential human source targets including military bases in the United States, specifically West Point Military Academy in New York. The website administrator instructed the defendant to obtain a specific anti-virus software to protect the IMU’s website and to obtain and provide any amount of money. The defendant contacted his brother, who lived overseas, about obtaining the anti-virus software and he sent the software to Kurbanov. Shortly before his arrest, the defendant caused an Idaho corporation to open, through which he intended to funnel money to the IMU.
Between at least Nov. 15, 2012, and May 16, 2013, Kurbanov possessed bomb-making components at his Boise apartment, including a hollow hand grenade, a hobby fuse, ammunition containing smokeless powder, tannerite, aluminum powder, potassium nitrate, charcoal, yellow sulfur powder and fertilizer. He purchased these items during the summer and fall of 2012. FBI special agents observed the bomb-making components during a court-authorized search of Kurbanov’s apartment in November 2012 and seized many of the same items during a second court-authorized search in May 2013.
Kurbanov’s activities were closely monitored by federal agents during the investigation and no terrorist attack occurred.
During the sentencing hearing, an explosives expert provided evidence that the bomb-making components Kurbanov possessed were capable of causing significant harm. Prosecutors argued that these capabilities, coupled with Kurbanov’s many statements of hatred toward Americans and desire to kill them, warranted the lengthy sentence.
Kurbanov still faces a separate one-count indictment returned in May 2013 in federal court in Utah alleging that from about Jan. 14, 2013, continuing through Jan. 24, 2013, he taught and demonstrated how to make explosive devices, and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction. His alleged intent was that the teaching, demonstration and information be used for and in furtherance of an activity that would constitute a federal crime of violence. The Utah indictment was returned in May 2013, at the same time as the Idaho indictment.
The Idaho case was investigated by the FBI’s Joint Terrorism Task Force with assistance from the Boise Police Department, the Immigration and Customs Enforcement’s Homeland Security Investigations, the Ada County, Idaho, Sheriff’s Office and the Canyon County, Idaho, Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco of the District of Idaho and Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Union County, New Jersey, Man Arrested, Charged with Aiming Laser Pointer at WABC-TV HelicopterRead the Press Release
NEWARK, N.J. - A Union County, New Jersey, man was arrested today and charged with aiming a laser pointer at a WABC-TV helicopter, U.S. Attorney Paul J. Fishman announced.
Stiven Lopez-Bender, 26, of Elizabeth, New Jersey, was charged by complaint with one count of aiming a laser pointer at an aircraft. Lopez-Bender is scheduled to make his initial appearance today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
On Nov. 11, 2015, a reporter working for WABC-TV, Channel 7, New York, an affiliate of ABC Inc., requested a helicopter operator, also working on behalf of WABC, to fly the helicopter to a location in Elizabeth to cover a story on a house fire. At approximately 5:20 pm, while facing south at an altitude of approximately 1,000 feet, a green laser was aimed at and struck the flight deck of the helicopter through the main windshield.
The reporter and the helicopter operator saw Lopez-Bender emerge from a sports utility vehicle, reach into the passenger side, and then point a green laser at the helicopter, causing a second laser strike to the helicopter.
The helicopter operator lowered the helicopter to approximately 500 feet. As Lopez-Bender walked towards an apartment building, Lopez-Bender turned and again pointed the green laser towards the helicopter before entering the apartment building.
The helicopter operator then circled the area at an altitude of approximately 800 feet.
Within approximately 10 minutes, the helicopter was again lasered from a window in the apartment building Lopez-Bender had just entered.
The count with which Lopez-Bender is charged carries a maximum punishment of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force, under the direction of FBI Special Agent in Charge Richard M. Frankel, and members of the Elizabeth Police Department, under the direction of Police Director James Cosgrove, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the National Security Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Two heroin dealers plead guilty to Federal drug chargesRead the Press Release
CHARLESTON, W.Va. – Two drug dealers pleaded guilty today in federal court to heroin charges, announced Acting United States Attorney Carol Casto.
Keon Terrell Ross, 24, of Detroit, pleaded guilty to possession of heroin with intent to distribute. Ross admitted that on October 20, 2015, he traveled from Detroit to Charleston with approximately a kilogram of heroin that he intended to distribute. Law enforcement found Ross with the heroin in his hotel room at the Best Western on Washington Street East in Charleston. Ross faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 7, 2016.
Antoine Joshua Broner, 37, of Charleston, pleaded guilty to distribution of heroin. Broner admitted that on August 4, 2015, he sold heroin to a confidential informant working with law enforcement. Following the drug deal, officers seized $615 from Broner’s house in Charleston, $75 of which was pre-recorded buy money used in the controlled purchase with the confidential informant. Broner further admitted to possessing additional heroin at his residence that he intended to distribute. Broner faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 4, 2016.
The investigation of Ross was conducted by the Charleston Police Department and the Metropolitan Drug Enforcement Network Team (MDENT). The investigation of Broner was conducted by MDENT. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. The defendants entered their guilty pleas before United States District Judge Thomas E. Johnston.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Two Public Employees Who Evaded Paying Taxes Are SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that two public employees who previously pleaded guilty to tax evasion offenses have been sentenced in Hartford federal court. Yesterday, U.S. District Judge Alvin W. Thompson sentenced TROY HESTER, 43, of Hartford, to 10 months of imprisonment, followed by three years of supervised release. Today, Judge Thompson sentenced MICHAEL CARTER, 52, of New Haven, to four years of probation, the first six months of which CARTER must serve in home confinement under electronic monitoring.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had little or no money withheld from their wages.
According to court documents and statements made in court, during the 2008 through 2013 tax years, HESTER, while employed by the Metropolitan District Commission in Hartford, paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480. HESTER had submitted a Form W-4 claiming that he was “exempt” from federal withholding.
HESTER was ordered to pay more than $79,000 in back taxes and interest.
The investigation also revealed that HESTER failed to pay more than $24,000 in state taxes from 2007 through 2012.
CARTER, who was employed by the Connecticut Department of Mental Health and Addiction Services and worked as a nurse at the Connecticut Valley Hospital in Middletown, submitted a false Form W-4 to the state indicating that he had 99 exemptions and was exempt from tax withholding. As a result, no money was withheld from his wages. During the 2010 through 2012 tax years, CARTER paid no federal income taxes on more than $282,000 in income he received, resulting in a federal tax loss of $53,344.
CARTER was ordered to pay more than $56,000 in back taxes and interest.
This ongoing investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
Three Men Sentenced to a Total of over 17 Years for Theft of Firearms from Berryville, Arkansas Gun StoreRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that three men were sentenced today on one count each of Aiding and Abetting the Theft of Firearms from a Federal Firearms Licensee. Taz Bibey, age 19, of Tillamook, Oregon was sentenced to 40 months in federal prison and two years of supervised release; Timothy Brown, age 50, of Eureka Springs, Arkansas was sentenced to 120 months in federal prison and three years of supervised release; Andrew Davis, age 26, of Eureka Springs, Arkansas was sentenced to 46 months in federal prison and two years of supervised release. The three defendants were also ordered to pay restitution in the amount of $17,734 jointly and severally. The Honorable P.K. Holmes, III handed down the sentences in the United States District Court in Fort Smith.
According to court records, on May 8, 2015, Kings River New and Used Guns located in Berryville, Arkansas was burglarized, and 55 guns were stolen. On May 11, it was determined by the ATF that all of the firearms had traveled in interstate commerce. On May 13, officers from the Branson, Missouri Police Department responded to the Four Seasons Inn regarding two individuals that would not leave the business. The two individuals, Andrew Davis and Taz Bibey, agreed to leave the inn after police arrived. Officers then received a second phone call from the hotel that one of the individuals was trying to get back into the room to retrieve a gun. Hotel Management entered the room and retrieved a Glock .45 caliber model 21 handgun. Subsequent investigation revealed the handgun was stolen from Kings River on May 8 and that the serial number had been defaced. Officers learned that Davis and Bibey had been associating with Timothy Brown who was also staying at the Inn. Brown was located and stated that Davis and Bibey had come to his room and were showing off some guns they had. Officers located some ammunition, several syringes with methamphetamine residue, and a smoking pipe in Brown’s room. Brown was arrested and taken into custody for the drugs. Davis and Bibey were interviewed and both admitted their role in the offense and implicated Brown by stating that the idea to burglarize the gun shop was his. They admitted to entering the business and loading the guns into boxes and transferring them to Brown’s van where he was waiting. The guns were then transported to Missouri for distribution. An individual in Missouri admitted to purchasing three guns from Brown. In his interview, Brown admitted to being with Davis and Bibey on the day in question and to disposing of at least one of the firearms in exchange for methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Branson Police Department, and the Arkansas State Police. Assistant U.S. Attorney David Harris prosecuted the cases 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
Three Bronx Men, Including A Corrections Officer, Charged in Manhattan Federal Court with Armored Car Robbery ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced that MICHAEL SANTIAGO, a corrections officer at Downstate Correctional Facility in Fishkill, New York, KENNETH SMITH, and BRUCE COLLAZO, a/k/a “Tonz,” were arrested this morning for participating in a conspiracy to rob a series of armored cars in the Bronx, New York. SANTIAGO, SMITH, and COLLAZO were presented today in Manhattan federal court before United States Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “Michael Santiago, a corrections officer entrusted with the safekeeping of the community, Kenneth Smith, and Bruce Collazo are charged with conspiring to conduct a series of brazen daytime armed robberies, provoking gun violence on busy streets, and putting lives at risk. Together with our partners at the FBI and the NYPD, we are committed to keeping our neighborhoods safe by taking violent criminals off the streets.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, over several months, the defendants conspired to brazenly hold up armored car operators at gunpoint for cash. This vicious activity put everyday citizens in the forefront of violence, and the FBI-NYPD Violent Crimes Task Force stands with our law enforcement partners to investigate and bring all those involved to justice.”
NYPD Commissioner William J. Bratton said: “This is the type of collaboration we rely on to keep our city safe. This operation, taken down earlier this morning in raids across the Bronx, is the most significant case since the re-formation of the oldest task force in law enforcement history. Together, NYPD detectives and FBI agents arrested these defendants who, among other things, engaged in a massive midday shoot-out on a busy Bronx street, as alleged. Tonight, our city – because of the hard work of agents, detectives, and prosecutors – is a little bit safer.”
According to the Complaint[1]:
Between August and December 2015, SANTIAGO, SMITH, and COLLAZO, along with other members of the robbery crew who remain at large, participated in gunpoint robberies of armored car operators. Specifically, on August 24, 2015, December 4, 2015, and December 15, 2015, members of the crew robbed armored car operators of thousands of dollars in cash at gunpoint. During the December 15, 2015, robbery, a member of the crew exchanged gunfire with the operator of the armored vehicle before escaping on foot.
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SANTIAGO, 29, SMITH, 34, and COLLAZO, 20, all of the Bronx, New York, are each charged with one count of conspiracy to commit Hobbs Act robbery, which carries a maximum sentence of 20 years in prison; and one count of using or carrying firearms during and in relation to, or possessing firearms in furtherance of, a crime of violence, which firearms were discharged, which carries a maximum sentence of life in prison, and a mandatory consecutive minimum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the efforts of the FBI, the NYPD, the New York State Department of Corrections and Community Supervision, and the Office of Special Investigation in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Matthew Podolsky is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Texas Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
HOUSTON – Omar Faraj Saeed Al Hardan, 24, a Palestinian born in Iraq, has been charged in a three-count indictment alleging that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
U.S. Attorney Kenneth Magidson, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Brian M. Moskowitz of Homeland Investigations (HSI) in Houston made the announcement.
The three-count indictment was returned Jan. 6, 2016 and unsealed tonight. He will have his initial appearance tomorrow at 10:00 a.m CST in Houston before U.S. Magistrate Judge John R. Froeschner.
Al Hardan entered the United States as an Iraqi refugee on or about Nov. 2, 2009. He was granted legal permanent residence status on or about Aug. 22, 2011, and resides in Houston.
He is charged with one count each of attempting to provide material support to ISIL, procurement of citizenship or naturalization unlawfully and making false statements.
The indictment alleges that Al Hardan attempted to provide material support and resources, including training, expert advice and assistance, and personnel – specifically himself – to a known foreign terrorist organization. According to the allegations, he also knowingly responded, certified and swore untruthfully on his formal application when applying to become a naturalized U.S. citizen. He allegedly represented that he was not associated with a terrorist organization when, in fact, he associated with members and sympathizers of ISIL throughout 2014, according to the charges. The indictment further alleges that during an interview in October 2015, Al Hardan falsely represented that he had never received any type of weapons training, when he allegedly received automatic machine gun training.
The charge of attempting to provide material support to terrorists carries a maximum sentence of 20 years in federal prison and a maximum fine of $250,000. The charge of false citizenship procurement carries a maximum sentence of 25 years in prison (if the offense was committed to facilitate an act of international terrorism). The charge of making false statements carries a maximum sentence of eight years in prison. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
The charges are the result of an investigation conducted by the FBI’s Joint Terrorism Task Force and HSI with the assistance of the Houston Police Department. Assistant U.S. Attorney Ralph Imperato is prosecuting the case along with Trial Attorney Kashyap Patel of the National Security Division’s Counterterrorism Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Omar Faraj Saeed Al Hardan, 24, a Palestinian born in Iraq, has been charged in a three-count indictment alleging that he attempted to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Division and Special Agent in Charge Brian M. Moskowitz of Immigration and Customs Enforcement's Homeland Security Investigations (HSI) in Houston made the announcement.
The three-count indictment was returned on Jan. 6, 2016, and was unsealed today. He will have his initial appearance tomorrow at 10:00 a.m CST in Houston.
Al Hardan entered the United States as an Iraqi refugee on or about Nov. 2, 2009. He was granted legal permanent residence status on or about Aug. 22, 2011, and resides in Houston.
He is charged with one count each of attempting to provide material support to ISIL, procurement of citizenship or naturalization unlawfully and making false statements.
The indictment alleges that Al Hardan attempted to provide material support and resources, including training, expert advice and assistance, and personnel – specifically himself – to a known foreign terrorist organization. According to the allegations, he also knowingly responded, certified and swore untruthfully on his formal application when applying to become a naturalized U.S. citizen. He allegedly represented that he was not associated with a terrorist organization when, in fact, he associated with members and sympathizers of ISIL throughout 2014, according to the charges. The indictment further alleges that during an interview in October 2015, Al Hardan falsely represented that he had never received any type of weapons training, when he allegedly received automatic machine gun training.
The charge of attempting to provide material support to terrorists carries a maximum sentence of 20 years in federal prison and a maximum fine of $250,000. The charge of false citizenship procurement carries a maximum sentence of 25 years in prison (if the offense was committed to facilitate an act of international terrorism). The charge of making false statements carries a maximum sentence of eight years in prison. If convicted, any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.
An indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The charges are the result of an investigation conducted by the FBI’s Joint Terrorism Task Force and HSI with the assistance of the Houston Police Department. Trial Attorney Kashyap Patel of the National Security Division’s Counterterrorism Section is prosecuting the case along with Assistant U.S. Attorney Ralph Imperato of the Southern District of Texas.
Al Hardan Indictment
Sex Offender Sentenced to Life Imprisonment Plus Additional Ten Years in Federal Child Exploitation CaseRead the Press Release
Fort Smith - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Jack Lambeth, age 58 of Midwest City, Oklahoma, was sentenced today to Life In Prison without the possibility of parole on charge of Interstate Travel with Intent to Engage in Aggravated Sexual Abuse of a Minor in violation of 18 U.S.C. 2241(c). An additional ten (10) years was imposed per statute due to the defendant’s status as a sex offender. The sentencing took place before the Honorable P.K. Holmes, III in the United States District Court in Fort Smith.
Court records reflect that in March of 2015, the Fort Smith Police Department began an undercover investigation directed at individuals who were using the internet to target minors for sexual activity. During the operation, an undercover officer entered an internet chat room utilizing an online persona of an adult mother offering her 8 and 9 year old children for sexual exploitation. Lambeth, a registered sex offender from Oklahoma, began chatting with the undercover officer about the possibility of having a sexual encounter with the children. During the month of March, Lambeth made specific plans to travel to Arkansas to engage in such sexual acts, and also sent the undercover officer sexual devices to be used on the minors. On or about March 28th, Lambeth was arrested by the Fort Smith Police Department after he contacted the undercover officer stating he was at a local motel. In August, Lambeth pleaded guilty to crossing a state line with the intent to engage in a sexual act with a minor under 12 years of age. At sentencing, the Government presented the Court with evidence that Lambeth had previously been convicted of raping a minor and, in a subsequent case, a federal child pornography offense.
This case was investigated by Fort Smith Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Schenectady Couple Indicted for Mail FraudRead the Press Release
ALBANY, NEW YORK – Jeragh Powell, age 25, and Kimberly Powell, age 37, both of Schenectady, New York, were arraigned today on an indictment charging them with mail fraud in connection with a lottery scheme that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division.
The indictment alleges that the Powells mailed documents that falsely informed elderly victims that they had won lottery prizes and were required to pay fees and taxes in order to claim their prizes. Members of the conspiracy also called elderly victims with instructions on mailing the payments for sham taxes and fees. Elderly victims sent tens of thousands of dollars to the defendants and their co-conspirators, and the defendants then sent a portion of the payments they received to co-conspirators in Jamaica, Jeragh Powell’s country of citizenship.
The Powells were indicted on January 6, 2016. They face up to 20 years of imprisonment and a $250,000 fine, if convicted. They were arraigned today before Magistrate Judge Christian F. Hummel and detained pending their satisfaction of a Court-ordered bond. Their trial is scheduled to take place before District Judge Mae A. D’Agostino.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
San Felipe Pueblo Man Sentenced for Assaulting a Kewa Pueblo ChildRead the Press Release
ALBUQUERQUE – Gregory Kyle Chavez, Jr., 29, a resident and member of San Felipe Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 14 months in prison for his assault conviction. Chavez will be on supervised release for three years following his incarceration.
Chavez was arrested on July 6, 2015, on a criminal complaint charging him with assault resulting in substantial bodily injury. According to the complaint, on June 13, 2015, in Kewa Pueblo in Sandoval County, N.M., Chavez assaulted a two-year Kewa Pueblo child. The child victim suffered injuries to the left facial and forehead area including dark bruising and swelling to the left eye, left cheek, right jaw and bruising on the neck as a result of the assault.
On Sept. 29, 2015, Chavez pled guilty to a felony information charging him with assault resulting in substantial bodily injury, and admitted assaulting the child on June 13, 2015, causing the child serious bodily injury.
This case was investigated by the Southern Pueblos Agency of the BIA Office of Justice Services and was prosecuted by Assistant U.S. Attorney Sarah Mease.
Sacramento Man Arrested for Terrorism OffenseRead the Press Release
SACRAMENTO, Calif. — A Sacramento resident was arrested today on a federal charge of making a false statement involving international terrorism. Aws Mohammed Younis Al-Jayab, 23, is charged in a criminal complaint that was unsealed today in the U.S. District Court for the Eastern District of California following his arrest. He is in custody and will be making an initial appearance Friday in federal court in Sacramento at 2:00 PM.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, United States Attorney Benjamin B. Wagner of the Eastern District of California, and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.
“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”
“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner. “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”
“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento Field Office. “The public plays an equal, if not more important, role in protecting the community. We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group—whether in person or online—to voice their concerns to law enforcement.”
According to the complaint, Al-Jayab is a Palestinian born in Iraq, who emigrated from Syria to the United States as a refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations. In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria. On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria. Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004. He returned to the United States on Jan. 23, 2014, and settled in Sacramento.
The complaint alleges that on October 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The complaint alleges that all of those answers were materially false.
If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Joint Terrorism Task Force (JTTF), a team of federal, state, and local law enforcement agents and officers investigating domestic and international terrorism. Assistant United States Attorney Jill Thomas and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is ongoing.
Rochester Man Is Sentenced for Mail Fraud ConspiracyRead 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 Hoeub Chan, of Rochester, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to one year in prison and ordered to pay restitution to Rochester Gas & Electric Company totaling $72,151 the Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant conspired with Phally Suong who worked as a customer service representative for Rochester Gas & Electric Company. Suong used her position to access RG&E billing systems and alter the customer information for inactive accounts awaiting refunds. Suong changed the information in the system from the names of actual customers to the names of herself, family and friends, including Chan. This resulted in fraudulent refund checks being mailed to these individuals. Chan received a number of fraudulent refund checks totaling over $72,000.
Charges are pending against Suong. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Rapid City Man Convicted of Possession of Firearm and Ammunition by a Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that Clayton M. High Wolf, age 53, of Rapid City, South Dakota, was found guilty of Possession of Firearm and Ammunition by a Prohibited Person as a result of a federal jury trial in Rapid City, South Dakota. The jury returned the guilty verdict on January 7, 2016.
The charge carries a maximum penalty of 10 years in custody and/or a $250,000 fine, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from High Wolf being in possession of a Smith & Wesson .22 caliber pistol and Remington .22 caliber ammunition when he was stopped by police officers on July 17, 2014, at Rapid City. He had previous felony convictions with prison time exceeding a year, which prohibits him from possessing a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Rapid City Police Department. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Providence Landlord Sentenced in Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – Rony Metellus, 52, of Providence, was sentenced on Wednesday to 42 months in federal prison for setting fire to an occupied three family tenement building he owned, in an arson-for profit scheme and insurance fraud scheme, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Metellus to serve 3 years supervised release upon completion of his prison term. Metellus pleaded guilty on August 3, 2015, to one count of defrauding an insurance company – wire fraud.
According to court records and information presented to the court, an investigation by the Providence Fire Department Arson Squad, the Providence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Rhode Island Attorney General’s Office, determined that an early morning fire on July 23, 2014, to an occupied three family tenement at 346 Admiral Street in Providence was intentionally set. The investigation determined that the building’s owner, Rony Metellus, intentionally set fire to the building in a scheme to collect insurance payments.
At the time of the fire, three adults and three children were living in a first floor apartment. The second and third floors, including the apartment where the fire was intentionally set, were vacant. The building sustained significant damage.
At the time of his guilty plea, Metellus admitted to the court that he drove from his Providence home at approximately 3:30 a.m. on the morning on July 23, 2014, set fire to the Admiral Street building, and quickly returned home as Providence fire apparatus were responding to the fire. Metellus admitted that he hired a public adjuster to represent him in filing an insurance claim for damages to the burned building. Records indicate a claim was filed with the insurer, Lloyd’s of London.
Metellus has been detained in federal custody since his arrest on August 8, 2014.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Milind M. Shah.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Property Manager Sentenced to 15 Months in Prison for Role in Multimillion-Dollar Mortgage FraudRead the Press Release
CAMDEN, N.J. – A property manager was sentenced today to 15 months in prison for his role in a scheme to defraud financial institutions as part of a multimillion-dollar mortgage fraud that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood, New Jersey, area, U.S. Attorney Paul J. Fishman announced.
Paul Watterson, 55, of Mountainside, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Watterson and his conspirators identified homes in Wildwood and Wildwood Crest and recruited straw buyers to purchase those properties at the inflated rates. The straw buyers had good credit scores, but lacked the financial resources to qualify for mortgage loans. Watterson created fraudulent loan applications that contained false information about the straw buyers’ employment, income, assets and intended use of the properties. Watterson also obtained on behalf of his conspirators false documents to support the phony loan applications for certain straw purchasers. Watterson’s actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Watterson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Watterson’s conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. Watterson received $273,600 from five separate real estate transactions.
In addition to the prison term, Judge Simandle sentenced Watterson to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Thomas R. Ashley Esq., Newark
Prominent Bend Plumber Sentenced for Filing False Tax ReturnsRead the Press Release
PORTLAND, Ore. – On Tuesday, January 5, 2015, U.S. District Court Chief Judge Ann Aiken sentenced Gary L. Ford, 55, of Bend, Oregon, today to 18 months in prison for filing false tax returns in 2007, 2008, and 2009. Judge Aiken also sentenced Ford to serve one year of supervised release and ordered him to pay $580,454 in restitution, representing the amount Ford failed to report to the IRS.
According to court documents, since 1992 Gary Ford has been the sole proprietor of Summit Plumbing in Bend, Oregon, specializing in new residential construction in Central Oregon. Ford’s company routinely undercut competitor’s bids. This imbalance in the marketplace greatly benefitted Ford’s business. In 2007, on a loan application for a new $1.2 million vacation home in the PGA West golf club and resort in La Quinta, CA, Ford claimed he earned $26,500 per month. Ford’s spending habits supported this claim. In 2009 alone, he spent more than $900,000 on personal expenses, $355,000 on real estate, and $280,000 on other investments. These were Ford’s personal expenses in excess of his business expenses.
Meanwhile, Ford filed tax returns claiming he lived at or below the poverty line, even going so far as to claim refunds for the years in question. In reality, between 2006 and 2009, Ford failed to report almost $1.7 million in income and to pay more than $580,000 in federal income taxes. In fact, in most years, Ford paid more in interest on his three properties than he claimed as income. Ford evaded his full tax obligation by simply failing to include as income monies received from customers who did not issue him a Form 1099. In other words, the only income Ford reported was the payments that his customers independently reported to the IRS.
“Mr. Ford’s case is an example of what happens when someone selfishly puts their own unfettered wants above the common good and the law,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “Mr. Ford accumulated properties and spent lavishly while utterly shirking his civic duty to pay an honest tax. Not only that, but he left many competitors in the lurch as he undercut their bids due to the simple fact that knowing he would not be paying his taxes allowed him to recklessly offer lower bids. That’s not fair, that’s not just, and IRS CI will always fight to ensure everyone on the playing field is playing by the same rules.”
This case was investigated by Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Prison Guard Convicted of Having Sex with InmatesRead the Press Release
HOUSTON – A former prison guard at the federal prison camp in Bryan has entered a guilty plea to two counts of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson.
Marshall Thomas, 35, of College Station, was charged with engaging in a sexual relationship in July 2014 with two different inmates while he was employed as a correctional officer.
Beginning in March 2014, Thomas began supervising a female inmate at federal prison camp. Soon after, he began making inappropriate comments to her and began to hug, kiss and touch her inappropriately whenever they would be alone. On or about July 19, 2014, Thomas directed her to go into the back of the dry storage room behind several boxes. At that time, Thomas began to kiss her, unzipped his pants and pulled down her pants. She resisted his efforts to have intercourse, but he did it anyway.
Thomas told her that if she reported any of the inappropriate conduct he would “flag” her and that “it was his career and her good time.”
On the same day, Thomas was also supervising another inmate. While she was in the kitchen getting something to eat, Thomas told her to go to the salad room, where he began to kiss her and attempted to engage in sexual intercourse. She resisted. He then used his fingers to vaginally penetrate her.
U.S. District Judge Gray Miller accepted the guilty plea today and has set sentencing for April 1, 2016. At that time, he faces up to 15 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The charges are the result of an investigation conducted by the Office of the Inspector General. Assistant United States Attorneys Ruben R. Perez and Jill Stotts are prosecuting the case.
Pittsburgh Man Pleads Guilty in Counterfeit Currency SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and making counterfeit currency, United States Attorney David J. Hickton announced today.
William Perry Bagley, 32, pleaded guilty to two counts before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that from in and around May 2013 to June 20, 2013, Bagley made counterfeit currency and Bagley and others conspired to make and pass counterfeit currency.
Judge Diamond scheduled sentencing for May 3, 2016 at 10 a.m. The law provides for a total sentence of 25 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Bagley.
Pittsburgh Man Pleads Guilty in California to PA Drug Trafficking SchemeRead the Press Release
PITTSBURGH -A local resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of crack cocaine, United States Attorney David J. Hickton announced today.
Harold Neal, 54, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Harold Neal was intercepted over the wire conspiring with others to possess with intent to distribute and distribute crack cocaine, which was shipped, in powder form, from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for May 4, 2016. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued Neal’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Harold Neal.
Patriarch of Family Drug Trafficking Ring Pleads Guilty, Faces 35 Year Sentence for Distribution of Fentanyl, Cocaine, Meth and HeroinRead the Press Release
Assistant U.S. Attorneys Joseph S. Green (619) 546-6955 and Lara W. Worm (619) 546-9697
NEWS RELEASE SUMMARY – January 7, 2016
SAN DIEGO – Hugo Adalberto Adrian Ramirez pleaded guilty this afternoon to conspiracy to distribute methamphetamine, cocaine, heroin and fentanyl in connection with a family drug trafficking ring that Ramirez directed.
Ramirez entered his guilty plea before U.S. Magistrate Judge Karen S. Crawford and remains in custody pending a sentencing hearing on March 7, 2016 at 9 a.m. before U.S. District Judge William Q. Hayes.
According to admissions in court and in his plea agreement, Ramirez conspired with family members, including his wife, sister, two adult children, and nephew, to distribute controlled substances within Southern California and to various locations throughout the United States, including the New York/New Jersey area and North Carolina.
According to his plea agreement, the government will recommend a sentence of no more than 35 years.
Ramirez directed and participated in all aspects of the conspiracy, including acquiring and negotiating the sale of controlled substances, conducting and directing counter-surveillance of law enforcement, and collecting drug proceeds. As a part of the conspiracy, Ramirez frequently changed his cellular telephone in a failed attempt to thwart law enforcement.
Ramirez also used his minor children to promote the conspiracy, including directing minor children to run errands, pass messages, and conduct counter-surveillance of law enforcement officers investigating Ramirez’s activities.
Ramirez admitted to organizing numerous shipments of methamphetamine, cocaine and heroin to sub-distributors in North Carolina, including approximately 6.6 kilograms of methamphetamine and 57.4 grams of heroin seized by law enforcement agents on August 22, 2014. Ramirez also admitted to the distribution of multi-kilogram quantities of cocaine and fentanyl to sub-distributors in New Jersey, including approximately 3 kilograms of cocaine and 1 kilogram of fentanyl seized by law enforcement agents on May 23, 2014.
Fentanyl is a synthetic opiate considered 50 to 100 times more powerful than morphine. It is typically administered to people in chronic pain, including end-stage cancer patients, and is also used as an anesthetic during surgery. Just a small amount – even a few grains - can be fatal. Authorities across the country have noted an increase in fatal overdoses of heroin that is spiked with fentanyl.
“This family operated a cross-country drug network that supplied users with dangerous and potentially deadly drugs like fentanyl,” said U.S. Attorney Laura Duffy. “With this final plea out of 12 arrested defendants, we have interrupted the supply and hopefully kept users from making a tragic mistake.”
“It is important that the residents of San Diego are aware of the danger of this powerful and potentially lethal drug,” says DEA San Diego Special Agent in Charge William R. Sherman. “DEA will continue to investigate and arrest distributors and manufacturers of this poison. It is marketed as a better high than heroin, but this clandestinely manufactured fentanyl is hundreds of times more potent than heroin.”
Kynan Barrios, Special Agent-In-Charge with the Bureau of Land Management in California stated, “Collaboration among law enforcement is vital to combating complex transnational criminal organizations that use America's public lands to smuggle dangerous drugs across international borders. These actions cause environmental degradation and threats to public safety throughout California as well as other states. The BLM is committed to ensuring these lands are safe to visit and remain healthy for the use and enjoyment of present and future generations.”
Ramirez’s guilty plea marks the 12th guilty plea in this case. Ramirez’s family members who participated in the conspiracy have received sentences ranging from 14 months to 10 years. Ramirez’s wife, Maria Ayala, received a sentence of 70 months following her guilty plea to laundering money in furtherance of the family’s drug trafficking operation. His son, Hugo Norberto-Adrian, Jr., received a sentence of 10 years in prison for conspiracy to distribute controlled substances.
Co-defendant Sonja Shenelle Holder, a New York rapper known as “Sonja Blade,” who pled guilty to money laundering charges in connection with this case on October 27, 2015, is scheduled to be sentenced on Monday, January 11, 2016. In her plea agreement, Holder admitted to laundering approximately $326,545 in cash to promote the acquisition of narcotics.
This investigation was conducted under the federal Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against major drug trafficking.
DEFENDANTS Criminal Case No: 14-CR-3057 Sentence
Hugo Adalberto Adrian Ramirez 42 Corona, CA Pending
Hugo Norberto-Adrian Jr. 21 Corona, CA 120 months
*Paul Dwight Doyley 49 Ashbury Park, NJ Fugitive
Sonja Shenelle Holder 37 Brooklyn, NY Pending
*Victor Jesus Gastelum 44 Unknown Fugitive
Sandra Bustos Juarez 32 Charlotte, NC 87 months
Alberto Mina 38 Charlotte, NC 87 months
Noe Mina 26 Charlotte, NC 87 months
Ricardo Mendoza 36 Ontario, CA Pending
Crystal Adrian 19 Corona, CA 15 months
Ghazi Catalan 22 Unknown Pending
Marvin Ventura Soto 25 Huntington Park, CA 120 months
Maria Ayala 44 Corona, CA 70 months
Sara Gricelda Adrian 41 Corona, CA 14 months
*Fugitives
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances in violation of Title 21, U.S.C. 841(a)(1) and 846; Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million dollar fine.
AGENCIES
Drug Enforcement Administration
Bureau of Land Management
Internal Revenue Service
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego Police Department
Immigration and Customs Enforcement, Homeland Security Investigations
Fontana Police Department
Riverside County Sheriff’s Department
ICE Enforcement and Removal Operations
San Diego County Sheriff’s Department
*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
North Miami Beach Resident Pleads Guilty for his Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
A North Miami Beach resident pled guilty for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity (DEO), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Daiman Williams, 23, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, Williams faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, on or about January 18, 2013, a state probation compliance check was performed on Williams at his residence in North Miami Beach, FL. During the compliance check of Williams’ residence, officers found a Toshiba laptop that contained a list of personal identifying information (PII). A forensic examination of the laptop revealed a series of documents containing over two thousand (2,000) pieces of PII, which included the names, Social Security numbers, and dates of birth for hundreds of school teachers and medical patients. In addition, credit reports, tax returns, and other miscellaneous PII were found in the laptop. Further investigation revealed that several of the individuals identified from the laptop had been victims of identity theft related to the fraudulent filing of their federal income tax returns.
On or about August 26, 2014, another state probation compliance check was performed on Williams at his residence. In connection with the compliance check, law enforcement searched Williams’ phone and found a video of the defendant holding a firearm and then storing the firearm in the trunk of a white Lexus vehicle. The vehicle was found in the driveway of Williams’ residence. Officers opened the trunk of the vehicle and discovered the firearm, ammunition and PII for more than 50 individuals, including names, dates of birth and Social Security numbers of homeowners’ insurance applications and completed income tax forms.
The intended loss to the government was $643,205.
Williams is scheduled to be sentenced on March 17, 2016 at 9:30 a.m. before United States District Judge Federico A. Moreno.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, DEO, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
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.
North Hampton Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE - James Bednarcyk, 28, of Claremont, New Hampshire, pled guilty on Thursday in United States District Court for the District of New Hampshire to possessing child pornography, announced Acting United States Attorney Donald Feith.
In April 2014, an undercover investigation led by the Vermont Attorney General’s Office resulted in the identification of Bednarcyk’s residence in Claremont, New Hampshire as a potential location from which images of child pornography were being shared through the internet. A search warrant was obtained and executed for Bednarcyk’s Claremont residence in September 2014, and a computer was seized which contained a substantial number of images and videos of child pornography.
Bednarcyk is scheduled for sentencing in April 2016, and faces a maximum prison term of 10 years, to be followed by term of at least 5 years of supervised release and a fine of up to $250,000.
The case was investigated by the Vermont Attorney General’s Office and the Hampton, New Hampshire Police Department, in conjunction with Homeland Security Investigations (HSI) Manchester, the New Hampshire Crimes Against Children Task Force (NH ICAC), and the police departments of Claremont and Portsmouth, New Hampshire. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Tazewell Resident Jerisen Amundsen Sentenced to 127 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On Jan. 7, 2016, Jerisen Lee Amundsen, 20, of New Tazewell, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 127 months in prison as a result of his conviction for distribution of child pornography. Following his release from prison, Amundsen will be supervised by the U.S. Probation Office for life and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Amundsen pleaded guilty in May 2015 to federal charges stemming from an international undercover investigation into trading child pornography on the Internet. A federal search warrant was executed at Amundsen’s residence and a forensic examination of Amundsen's computer revealed that he had collected 1009 still images and 187 videos of child pornography, in addition to posting child pornography on the Internet.
Nancy Stallard Harr, Acting U.S. Attorney, emphasized the importance of pursuing child pornography offenders. “The successful collaborative efforts of federal, state and law enforcement agencies in this investigation have resulted in this defendant no longer being able to circulate images and videos of the sexual abuse of children to others. This sentence should send a message that the United States will aggressively investigate and prosecute those who choose to participate in the continued victimization of children, our most vulnerable members of society, through the circulation of child pornography on the Internet.”
This investigation was conducted locally by U.S. Homeland Security Investigations, Knoxville Police Department’s Internet Crimes Against Children Task Force, and the Tennessee Highway Patrol. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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New Orleans Man Sentenced to 10 Years in Prison on Narcotics and Firearm ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TYRONE TAYLOR, age 47, of New Orleans, was sentenced today after having previously pled guilty to possession with intent to distribute 100 grams or more of heroin and a quantity of cocaine hydrochloride, as well as possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Eldon E. Fallon sentenced TAYLOR to serve 120 months in prison, followed by four years of supervised release, and a $200 special assessment
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones was in charge of the prosecution
Mississippi Woman Sentenced for Making False Statements to New Orleans Immigration CourtRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARINA ARNEDO ROJAS-ZAYED, age 34, a resident of Ocean Springs, Mississippi, was sentenced today after previously pleading guilty to one count of making false statements to an agency of the United States.
U.S. District Judge Jane Triche Milazzo sentenced ROJAS-ZAYED to three years probation, a $500 fine, a $100 special assessment, and 200 hours of community service.
According to court records, from on or about July 2012 until on or about August 2013, ROJAS-ZAYED represented before the New Orleans Immigration Court that she was a licensed attorney in the state of Alabama, when in truth she knew she was not a licensed attorney. During hearings before the New Orleans Immigration Court, she appeared and assumed the role of attorney for aliens, albeit fraudulently. When Immigration Judges referred to ROJAS-ZAYED as “counsel,” she did not dispel the judges of this notion or attempt to correct the record. Additionally, ROJAS-ZAYED entered her notice of appearance on behalf of aliens in approximately 42 immigration cases before at least five different Immigration Courts in the United States. Specifically, she submitted numerous documents to the Immigration Courts indicating she was a licensed attorney, although she is not.
U.S. Attorney Polite praised the work of Homeland Security Investigations (HSI) in investigating this matter. Assistant United States Attorney Julia K. Evans was in charge of this prosecution.