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Thursday 29 October 2015
Government Intervenes in Lawsuits Alleging That Skilled Nursing Chain SavaSeniorCare Provided Medically Unnecessary TherapyRead the Press Release
The government has intervened in three False Claims Act lawsuits and filed a consolidated complaint against SavaSeniorCare, LLC and related entities, (Sava) alleging that Sava knowingly and routinely submitted false claims to Medicare for rehabilitation therapy services that were not medically reasonable and necessary, the Department of Justice announced today.
Sava is one of the nation’s largest healthcare providers, operating approximately 200 skilled nursing facilities (SNFs) in 23 states, including four in Tennessee: Greenhills Health and Rehabilitation Center in Nashville; Lebanon Health and Rehabilitation Center in Lebanon; Newport Health and Rehabilitation Center in Newport; and Norris Health and Rehabilitation Center in Andersonville, Tennessee.
“Enforcing the False Claims Act and combating healthcare fraud remains a top priority of the U.S. Attorney’s Office,” said U.S. Attorney David Rivera of the Middle District of Tennessee. “When healthcare providers subject patients to unnecessary treatment, we will intervene and hold them accountable.”
“The provision of Medicare benefits must be dictated by patient need, not by Medicare providers’ efforts to maximize profits by pressuring their employees to provide medically unnecessary services,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will continue to aggressively pursue companies that seek to engage in this kind of fraudulent scheme.”
The government’s complaint alleges that Sava exerted significant pressure on its SNFs to meet unrealistic financial goals that resulted in the provision of medically unreasonable, unnecessary and unskilled services to Medicare patients. Sava allegedly set these aggressive, prospective corporate targets for the highest Medicare reimbursement rates to significantly increase Sava’s revenues without regard for its patients’ actual clinical needs and then pressured its staff to meet those goals. Sava also allegedly delayed discharging patients from its facilities, even though the patients were medically ready to be discharged, in order to increase its Medicare payments.
The three consolidated lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in these cases. Under the Act, a defendant that is found liable is subject to damages equal to three times the government’s loss plus applicable penalties. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, including the conduct described in the United States’ complaint, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The lawsuits are being handled by the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Christopher C. Sabis of the Middle District of Tennessee. Investigative support is being provided by the U.S. Attorneys’ Offices of the Southern District of Texas and the Western District of Texas; the Offices of Inspector General for the Department of Health and Human Services and the Office of Personnel Management and the National Association of Medicaid Fraud Control Units.
The cases are captioned United States ex rel. Hayward v. SavaSeniorCare, LLC, et al., No. 3:11-0821 (M.D. Tenn.); United States ex rel. Scott v. SavaSeniorCare Administrative Services, LLC, 3:15-0404 (M.D. Tenn.); and United States ex rel. Kukoyi v. Sava Senior Care, L.L.C., et al., No. 3:15-1102 (M.D. Tenn.).
The claims asserted in the government’s complaint against Sava are allegations only and there has been no determination of liability.
Four Men Indicted for Marijuana Cultivation Operation at “the Needles” Within Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Armando Arnoldo Martinez-Tinoco, 36; his brother, Juan Carlos Martinez-Tinoco, 41; and Luis Enrique Flores, 23, all of Mexico; and Ivan De Jesus Jimenez, 30, of La Puente, California, charging them with a conspiracy to cultivate marijuana on public land, cultivating and possessing marijuana with intent to distribute, and damaging public land and natural resources, United States Attorney Benjamin B. Wagner announced.
According to court documents, on October 17, 2015, law enforcement officers entered the marijuana cultivation site that was near The Needles, a series of massive granite spires atop a ridge in the Sequoia National Forest in Tulare County. The defendants fled the grow site, but were later found in the Kernville and Weldon areas. Agents removed 2,608 marijuana plants from the site and found highly toxic chemicals, fertilizer, and trash strewn throughout. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down to make room for the marijuana. Water was diverted from a spring that supports a dwindling breed of indigenous trout, the Kern River Rainbow Trout.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife, the Tulare County Sheriff’s Office, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
The defendants are scheduled for arraignment on November 2, 2015, in Fresno. If convicted of the drug offenses, the defendants face a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of the environmental crime, the defendants face a maximum statutory penalty of 10 years in prison, a $250,000 fine, and restitution. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort Thompson Man Acquitted of Robbery and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man was acquitted of Robbery, Assault Resulting in Serious Bodily Injury, and Assault by Strangulation and Suffocation as a result of a federal jury trial in Pierre, South Dakota, on October 28, 2015.
Jami Walking Bull, age 35, was indicted by a federal grand jury on August 11, 2015
The charges stemmed from an alleged incident that occurred on May 12, 2015, when Walking Bull allegedly robbed and assaulted a man on the Crow Creek Indian Reservation.
The investigation was conducted by the Bureau of Indian Affairs, Crow Creek Agency and the U.S. Attorney's Office prosecuted the case.
Fort Hall Man Indicted for Meth DistributionRead the Press Release
POCATELLO – Charles Eugene Allhands, 52, of Fort Hall, Idaho, was indicted by a federal grand jury this week on charges of distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
The indictment alleges that on March 5, May 20, and June 9, 2015, Allhands distributed methamphetamine in violation of Title 21, United States Code, Section 841(a)(1) and (b(1)(C). Allhands appeared today in United States District Court in Pocatello and entered not guilty pleas to the charges. A jury trial is scheduled before Chief District Judge B. Lynn Winmill on December 7, 2015.
The charge of distribution of methamphetamine is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and at least three years of supervised release.
The case was investigated by the Fort Hall Police Department, the Bingham County Sheriff’s Office, and the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Tate County, Mississippi, Sheriff’s Deputy Pleads Guilty to Unlawful TasingRead the Press Release
Former Tate County, Mississippi, Lieutenant Randy T. Doss pleaded guilty in federal court today to unlawfully tasing an inmate at the Tate County Jail. The tasing, which occurred in 2012, caused J.W., a pre-trial detainee, to fall to the concrete floor and fracture his skull.
On Jan. 27, 2012, a jail-wide search was ordered after an inmate was reportedly assaulted with a razor. When corrections officers entered J.W.’s pod to conduct their search, he and his fellow inmates were ordered to stand facing the wall. At the time of the incident, the victim was standing against a wall with his hands over his head, not posing a physical threat to anyone. Doss tased the victim from 11 feet away. The victim fell backward and hit his head on the concrete floor, necessitating brain surgery. The incident was captured on video.
“The defendant was an experienced law-enforcement officer who abused the authority entrusted to him,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The right to be free from excessive force is a Constitutional guarantee for all citizens, including those in custody. The U.S. Department of Justice and the Civil Rights Division will vigorously enforce this right.”
“The actions of the defendant are reprehensible and inexcusable,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “He abused his authority, violated the law and the public trust. While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U. S. Attorney's Office is committed to aggressively prosecuting those officers who break the law and violate the public trust.”
“Officers who abuse their power further undermine the public's trust in law enforcement,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “These types of cases are some of the FBI's most important work and help ensure and maintain a healthy democracy."
Doss, 63, had more than 20 years of experience in law enforcement. He had been certified to train other officers on the proper use of force, including how to use a taser.
The defendant was indicted on March 30, 2015, by a grand jury sitting in Oxford, Mississippi. He was charged with a single count of violating the victim’s right not to be deprived of liberty without due process of law. Doss was charged with both using a dangerous weapon – a taser electronic control device – and causing bodily injury to the victim.
The defendant will be sentenced by U.S. District Court Judge Michael P. Mills of the Northern District of Mississippi on Feb. 18, 2016.
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Tate County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorneys Dana Mulhauser and Andres Palacio of the Civil Rights Division.
Doss Plea Agreement
Former Tate County, Mississippi, Sheriff’s DeputyRead the Press Release
WASHINGTON – Former Tate County, Mississippi, Lieutenant Randy T. Doss pleaded guilty in federal court today to unlawfully tasing an inmate at the Tate County Jail. The tasing, which occurred in 2012, caused J.W., a pre-trial detainee, to fall to the concrete floor and fracture his skull.
On Jan. 27, 2012, a jail-wide search was ordered after an inmate was reportedly assaulted with a razor. When corrections officers entered J.W.’s pod to conduct their search, he and his fellow inmates were ordered to stand facing the wall. At the time of the incident, the victim was standing against a wall with his hands over his head, not posing a physical threat to anyone. Doss tased the victim from 11 feet away. The victim fell backward and hit his head on the concrete floor, necessitating brain surgery. The incident was captured on video.
“The defendant was an experienced law-enforcement officer who abused the authority entrusted to him,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The right to be free from excessive force is a Constitutional guarantee for all citizens, including those in custody. The U.S. Department of Justice and the Civil Rights Division will vigorously enforce this right.”
“The actions of the defendant are reprehensible and inexcusable,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “He abused his authority, violated the law and the public trust. While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U. S. Attorney's Office is committed to aggressively prosecuting those officers who break the law and violate the public trust.”
“Officers who abuse their power further undermine the public's trust in law enforcement,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “These types of cases are some of the FBI's most important work and help ensure and maintain a healthy democracy."
Doss, 63, had more than 20 years of experience in law enforcement. He had been certified to train other officers on the proper use of force, including how to use a taser.
The defendant was indicted on March 30, 2015, by a grand jury sitting in Oxford, Mississippi. He was charged with a single count of violating the victim’s right not to be deprived of liberty without due process of law. Doss was charged with both using a dangerous weapon – a taser electronic control device – and causing bodily injury to the victim.
The defendant will be sentenced by U.S. District Court Judge Michael P. Mills of the Northern District of Mississippi on Feb. 18, 2016.
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Tate County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorneys Dana Mulhauser and Andres Palacio of the Civil Rights Division.
Former Roseville Resident Sentenced for Loan Modification and Foreclosure Rescue Scam That Targeted Spanish-Speaking CommunityRead the Press Release
SACRAMENTO, Calif. —Martin Wayne Flanders, 51, formerly of Roseville, was sentenced today by United States District Judge Troy L. Nunley to six years and five months in prison for a scheme that targeted distressed homeowners, United States Attorney Benjamin B. Wagner announced.
In February 2015, Flanders and his wife Ligia Sandoval Spafford (Sandoval), 48, of Roseville, pleaded guilty to mail fraud for their participation in the fraud scheme.
According to court documents, between 2008 and 2010, Flanders charged clients advance fees in exchange for a number of financial services, including loan modifications, mortgage loan audits, credit repair, debt relief, bankruptcy filings, and a program to sell homes to “investors” with a rent-to-own option. Flanders and Sandoval marketed these services to economically distressed homeowners with particular emphasis on those who were Spanish speakers. During a radio program aired twice weekly by a Bay Area Spanish‑language Christian radio station, Radio Luz, Sandoval promoted the services she and Flanders offered. Flanders also advertised on a Spanish-language television station, Univision, and in Spanish-language magazines. About 98 percent of the defendants’ clients were of Hispanic descent, some of whom spoke little to no English. Sandoval speaks Spanish, Flanders does not.
Flanders and Sandoval made numerous false statements to investors as to the success of the programs being offered or refunds that would be available if the programs were not successful. “Ghost offers” – i.e., fictitious offers to purchase the victim’s property through short sale – and “skeleton bankruptcies” – i.e., sham bankruptcy petitions that were quickly dismissed by the bankruptcy court – were also used by Flanders or Sandoval to try to stall the foreclosure process. At least 25 to 30 individuals paid for services and did not receive them or did not receive refunds when the programs failed to deliver as promised. The total loss to the victims is at least $125,000. Some homeowners who were not able to obtain relief were foreclosed upon by their lenders.
“By targeting people in financial distress with limited English proficiency, Flanders sought to enrich himself on the backs of those who could least afford it,” said United States Attorney Wagner. “We are gratified by the sentence imposed by the Court, and we will continue to focus our efforts on the prosecution of such predatory fraud schemes.”
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Todd A. Pickles and Shelley Weger are prosecuting the case.
Flanders has been detained since his arrest in October 2012. Sandoval is currently out of custody. Sandoval is scheduled to be sentenced by Judge Nunley on March 3, 2016. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will 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.
Former Las Vegas Couple Sentenced to Prison for Defrauding over 400 Vulnerable Homeowners in $3.8 Million Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Kristen Michelle Ayala, aka Amber Lynch, aka Olivia Benet, aka Grace Williams, 30, and Joshua Manuel Sanchez, aka Nelson Cruz, aka Chris Ward, aka Daniel Mora, 34, both formerly of Las Vegas, were sentenced today for conspiracy to commit wire fraud for their role in a $3.8 million dollar mortgage modification scam.
Ayala was sentenced to 135 months in prison, while Sanchez was sentenced to 151 months in prison. Both defendants were also sentenced to three years of supervised release and ordered to pay full restitution to the victims of their crime.
“This nefarious crime, rooted in dishonesty and greed, ruined the lives of the victims while simultaneously enriching the lives of Ayala and Sanchez,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Their deceitful actions targeted extremely vulnerable individuals, causing trauma and stress in their lives which led to divorce, severe health issues, and extreme despair to children, parents, combat veterans, and people who were already struggling to make it. I want to thank our prosecutors and the investigative team at SIGTARP for their outstanding work on this case.”
In a statement of facts filed with the plea agreement, from in and around October 2012 through September 2014, Ayala, Sanchez, and others, executed a scheme that deliberately targeted extremely vulnerable individuals who were in dire financial straits, desperate and literally on the verge of losing their homes. Ayala and Sanchez developed fraudulent documents, telephone scripts, and aliases in an effort to defraud the victim homeowners. Their scheme lulled victim homeowners into believing that the defendants were part of the legitimate U.S. Government “Home Affordable Modification Program” (HAMP) by using the Department of Treasury’s seal and other government markings. During the execution of the ruse, Ayala and Sanchez used documents containing fraudulent government seals, made statements regarding modification of the victims’ mortgages through the HAMP program, and the victims’ mortgage payments to their own accounts rather than to the victims’ lenders. The scheme defrauded more than 400 victims and caused losses of over $3.8 million dollars and resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.
"SIGTARP special agents initiation and investigation of this TARP fraud scheme resulted in the arrest and convictions of Joshua Sanchez and Kristen Ayala for stealing money from over 400 desperate homeowners seeking to modify their mortgage by posing as US government representatives for TARP's housing program HAMP” " said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). "Sanchez and Ayala targeted struggling homeowners, used business names such as “Neighborhood Counseling Services of America” and “Residential Community Outreach Services”, and told victims to send three alleged trial modification payments to them, even going so far as using the Treasury Seal on some of the mortgage payment coupons to convince the homeowners that their scheme was legitimate. Sadly, they scammed hundreds of homeowners into believing they were getting help. They made no homeowner’ payments to mortgage lenders and instead stole over $3.8 million from homeowners who were trying to do the right thing to modify their mortgages causing many to lose their homes and devastating their lives. SIGTARP commends U.S. Attorney Boente and the prosecution team for standing united with SIGTARP against crimes related to TARP.”
Ayala and Sanchez were indicted by a federal grand jury on May 1, 2015, and pleaded guilty on Aug. 3, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), made the announcement after sentencing by U.S. District Judge James C. Cacheris.
This case was investigated by SIGTARP. Assistant U.S. Attorneys Zach Terwilliger and James P. Gillis 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-147.
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Former Burlington Coat Factory Employee Admits Tax Evasion on Income Generated from Shell Recruitment CompanyRead the Press Release
CAMDEN, N.J. - A Mt. Laurel, New Jersey, woman today admitted evading taxes on income she generated by using her position as a Burlington Coat Factory vice president to approve payments to her shell recruitment company, U.S. Attorney Paul J. Fishman announced.
Barbara Ames, 53, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging her with one count of tax evasion.
According to documents filed in this case and statements made in court:
In 2007, Barbara Ames was hired by Burlington Coat Factory as Vice President of Talent Acquisition. Ames was responsible for recruiting and hiring all executive management positions within Burlington Coat Factory, including store management, corporate management and field management. As part of her job duties, Ames was responsible for working with vendors and suppliers associated with her position. Burlington Coat Factory used outside companies, or “headhunters,” to identify and recruit qualified applicants for open positions. Ames had sole authority to approve payments to headhunters working on behalf of Burlington Coat Factory.
In 2008, Ames established L. Castillo LLC using her mother’s name and Social Security number. Ames admitted that between 2008 and 2012, she performed headhunting services under the name of L. Castillo on behalf of Burlington Coat Factory. Afterwards, Ames generated invoices from L. Castillo and submitted those invoices to Burlington Coat Factory for payment.
Ames admitted she used her authority at Burlington Coat Factory to approve the L. Castillo invoices. From Aug. 4, 2008 through Nov. 2, 2012, Ames caused Burlington Coat Factory to issue approximately 46 checks, totaling $466,290, to pay L. Castillo invoices. Ames later used these funds for personal expenditures.
Ames admitted that, from 2009 through 2012, she failed to include her income from L. Castillo, which caused a tax loss of $143,877.
The charge to which Ames pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 1, 2016.
U.S. Attorney Fishman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: John O. Poindexter III Esq., Moorestown
Florida Man Pleads Guilty to Fraud Charge Involving Tax SchemeRead the Press Release
St. Louis, MO – ALEXSANDR RABIKOV, a native of Belarus and permanent resident of the United States living in the Ft. Lauderdale, Florida area, pled guilty to charges involving a conspiracy to file false tax returns, which called for refunds, in the name of individuals, which he collected and deposited into accounts he controlled.
According to court documents, the conspiracy hacked into the computer system of a financial institution in the St. Louis area and obtained personal identifying information of individuals employed by that financial institution, including names, social security account information, addresses and wage information. This information was used to prepare false tax returns. All of the false tax returns had refunds due, which he collected and deposited into accounts that Rabikov controlled, either personally or through a network of other individuals throughout Florida, including his girlfriend and co-defendant YULIA BELOMYTTSEVA. Belomyttseva, a Russian national, also pleaded guilty to being part of the conspiracy.
"These defendants thought they figured out a clever scheme to thwart the IRS and steal from American taxpayers," said Andrew M. Thornton, Acting Special Agent in Charge of IRS-Criminal Investigation. "The IRS has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system."
Rabikov pled guilty to one felony count of conspiracy to file fraudulent federal income tax returns before United States District Judge Catherine D. Perry. Sentencing for both Rabikov and Belomyttseva has been set for January 26, 2016. Rabikov and Belomyttseva remain in federal custody, where they have been since their arrest earlier this year.
Rabikov now faces a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Five Individuals Indicted on Federal Drug Charges in Spirit Lake ConspiracyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced on Oct. 29, 2015, that five individuals from Devils Lake and Fort Totten, North Dakota, face charges of Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance:
Nestor Lopez Jr., 26, Devils Lake
Theresa Rose Lopez, 29, Devils Lake
Winterhawk Leonard Oldrock, 37, Fort Totten
Janet Joyce Oldrock, 34, Fort Totten
Fernando Lopez, 19, Devils Lake
The Indictment alleges that beginning around April 1, 2015, the above individuals knowingly and intentionally possessed with intent to distribute and distributed methamphetamine, a Schedule II controlled substance, in Devils Lake as well as within the Spirit Lake Reservation located in North Dakota.
This case was investigated by the Bureau of Indian Affairs - Fort Totten, the Lake Region Narcotics Task Force, and the North Dakota Bureau of Criminal Investigation.
Assistant U. S. Attorney Brett Shasky is prosecuting the case.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
Federal Jury Convicts Shoshone Man of Producing Child PornographyRead the Press Release
BOISE – A federal jury in the District of Idaho returned guilty verdicts today against William Roger Wilkinson, 54, on charges that he sexually exploited an eight-year-old child on three occasions by using her to produce sexually explicit images, U.S. Attorney Wendy Olson announced. The jury also found Wilkinson guilty of possessing child pornography and accessing child pornography with intent to view.
According to the evidence presented at trial, the investigation began in May 2013 after an eight-year-old child disclosed that Wilkinson had taken sexually explicit pictures of her. Lincoln County Sheriff’s deputies arrested Wilkinson in May 2013, and searched his home in Shoshone, Idaho. During the investigation, Wilkinson was released on bond, but a warrant was issued for his arrest after the investigation revealed child pornography on a desktop computer taken from his residence. Wilkinson fled his place of work in Twin Falls, Idaho, when deputies attempted to arrest him on November 2, 2013. The United States Marshal’s Service Fugitive Task Force in Salt Lake City, Utah, arrested Wilkinson on November 12, 2013. The FBI obtained a warrant to search the truck Wilkinson had driven to Utah and found a laptop computer and other evidence.
A forensic examiner from the FBI’s Intermountain West Regional Computer Forensics Lab located images on both the desktop computer and the laptop computer depicting Wilkinson and the eight-year-old child engaging in sexually explicit conduct. That evidence showed that on November 3, 2012, on December 9, 2012, and on March 3, 2013, Wilkinson knowingly used, persuaded, or coerced an eight-year-old child to take part in sexually explicit conduct and produced visual depictions of that conduct. Data imbedded in the digital photos showed that they were taken at Wilkinson’s home in Shoshone, Idaho. The evidence further showed that Wilkinson searched for, and viewed, websites containing child pornography on his desktop computer.
“This defendant engaged in horrific conduct with a young child, all for his own sexual gratification,” said Olson. “The jury’s verdict sends the clear message that Idaho citizens will strongly protect our most vulnerable members, children. I commend the outstanding work of Assistant United States Attorneys Justin Whatcott and Josh Hurwitt, FBI Special Agent Mary Martin and the other FBI agents and Lincoln County deputies for their work on this case.”
Sentencing is set for February 8, 2016. Each of the three counts of sexual exploitation of a minor is punishable by at least 15 and up to 30 years imprisonment, a fine of up to $250,000.00, and at least five years up to lifetime of supervised release. The charges of possession of child pornography, and access with intent to view child pornography, each are punishable by up to 20 years imprisonment, a fine of up to $250,000.00, and at least five years up to lifetime of supervised release.
As a result of the convictions, the United States will seek to forfeit $179,000, which represents Wilkinson’s interest in his former home and real property where the child pornography was produced. Proceeds from the forfeiture will be used to provide restitution to the eight-year-old child.
The case was investigated by agents from the Federal Bureau of Investigation in Idaho and Utah, and deputies from the Lincoln County, Idaho, Sheriff’s Department and the United States Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Farmington Woman Sentenced to Prison for Committing Wire Fraud to Facilitate Scheme to Defraud Insurance CompaniesRead the Press Release
ALBUQUERQUE – Michelle Smith, 33, of Farmington, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 18 months in prison followed by three years of supervised release for committing wire fraud in furtherance of a scheme to defraud insurance companies. Smith also was ordered to pay restitution in the amount of $324,239.00, which represents a portion of the profit she derived from her criminal activity.
Smith was charged in Feb. 2014, in an indictment that included 14 counts of wire fraud and four counts of aggravated identity theft. The charges arose out of Smith’s scheme to defraud Allstate Workplace Division and American Heritage Life Insurance (Allstate) of approximately $324,239.00 in advance commissions by submitting fraudulent policy enrollments. At the time of the offenses charged in the indictment, Smith was employed by Wells Insurance Agencies (Wells), exclusive brokers for Allstate with offices in Farmington, as an insurance agent to sell Allstate insurance policies.
According to the indictment, Allstate paid its brokers a commission for each Allstate insurance policy the broker sold. When Allstate received a new policy enrollment, Allstate paid the broker an advance commission amounting to a percentage of six months’ work of premiums on the policy. If the enrollee canceled the policy or fails to pay premiums for six months, the broker was required to return the advance commission to Allstate. When Smith was employed by Wells, Wells paid Smith 70% of the advance commissions she generated by submitting Allstate insurance policy enrollments.
The indictment alleged that from Aug. 2009 through May 2010, Smith devised and engaged in a scheme to defraud Allstate and Wells by submitting fraudulent policy enrollments and obtaining advance commissions to which she was not entitled. During the ten month period, Smith submitted enrollments in the names of approximately 150 different enrollees for a total of approximately 505 Allstate insurance policy enrollments. The enrollment forms transmitted electronically to Allstate by Smith were in the names of individuals who had not purchased insurance from Allstate and had forged signatures.
On April 23, 2015, Smith pled guilty to Count 13, a wire fraud charge, of the Indictment and admitted that between Nov. 2009 and April 2010, she devised a scheme to fraudulently obtain advance commission payments from Allstate and Wells. She further admitted facilitating the scheme by submitting 505 insurance policy enrollments to Allstate, all of which were fraudulent because none of the persons listed on the enrollment forms had agreed to purchase insurance policies from Allstate. Smith acknowledged that as a result of her fraudulent scheme, Allstate issued approximately $324,239.00 in advance commission payments and that she personally received at least $128,371.00 of those payments.
This case was investigated by the Farmington office of the FBI and was prosecuted by Assistant U.S. Attorney Jeremy Peña.
Farmer Sentenced for Poisoning Bald EaglesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kirk Canfield, 54, of Wilson, NY, who was convicted of a violation of violation of the Bald and Gold Eagle Protection Act, was sentenced to six months probation and a $1,000 criminal fine by U.S. Magistrate Judge Hugh B. Scott. The defendant was also ordered to pay $3,000 in restitution to the New York State Department of Environmental Conservation, Bald Eagle Program.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that the defendant operated a produce farm in the Town of Wilson. In August 2014, Canfield placed a meat pile that had been mixed with Golden Malrin fly bait at the edge of a cornfield on his farm in an attempt to kill coyotes. The fly bait contained Methomyl, which is an insecticide that is not to be used in a manner in which animals can eat it.
Three juvenile bald eagles died after eating the contaminated meat pile, and on August 22, 2014, the three dead bald eagles were found and photographed in the immediate vicinity of the contaminated meat pile by an individual riding an ATV. Subsequently, Canfield removed the three dead bald eagles from the field and removed the contaminated meat pile. By placing the contaminated meat pile on his field, the defendant acted with wanton disregard for the consequences of his act.
As part of the sentence in this case, Canfield has been ordered to pay restitution to the New York State Department of Environmental Conservation (NYS-DEC), Bald Eagle Program. The program is responsible for returning bald eagles to New York State and establishing a successful agenda to restore and protect New York State’s bald eagles. In the early 1900’s, New York State was home to more than 70 nesting pairs of bald eagles, and was a wintering ground for several hundred more. However, by 1960, New York State had only one known active bald eagle nest remaining. Beginning in 1976, and continuing until 1988, the NYS-DEC Bald Eagle Program collected 198 nestling bald eagles from other parts of the United States, brought them to New York State, and then hand-reared them to independence. Today, there are more than 170 nesting pairs of bald eagles in the state.
The sentencing is the result of an investigation by Special Agents of the U.S. Fish & Wildlife Service, under the direction of Special Agent in Charge Honora Gordon and Environmental Conservation Officers with the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.Elm City Man Sentenced to 17 Years for Drug Trafficking & Weapon OffensesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced TERRANCE LAMAR CARR, a/k/a Lil Bud, 23, of Elm City, North Carolina to 204 months imprisonment, followed by 5 years of supervised release.
CARR was named in a three-count Indictment filed on March 24, 2015 charging him with conspiracy to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack); possession with the intent to distribute a quantity of marijuana and a quantity of cocaine base (crack); and possession of a firearm in furtherance of a drug trafficking crime.
On June 2, 2015, CARR pleaded guilty to conspiracy to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack) and possession of a firearm in furtherance of a drug trafficking crime.
CARR was associated with a narcotics distribution organization led by Tavaris Delino Battle, previously sentenced to life imprisonment. According to the investigation, CARR was involved with drug trafficking in Wilson, Edgecombe, and Nash counties from 2008 until his federal arrest on March 27, 2015. Throughout the investigation, a number of controlled purchases from CARR were conducted. Additionally, a number of traffic stops were affected on CARR during the investigation, which resulted in the seizure of controlled substances and large quantities of U.S. currency. Based on the investigation, CARR is accountable for the distribution of over 730 grams of cocaine base (crack). CARR also possessed and distributed powder cocaine and marijuana throughout the conspiracy. CARR possessed a firearm, which had a scratched serial number, in furtherance of his drug trafficking activities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Rocky Mount Police Department, Sharpsburg Police Department, Edgecombe County Sheriff’s Office, Nash County Sheriff’s Office, Wilson County Sheriff’s Office, and Wilson Police Department. Assistant United States Attorney Dena J. King represented the government.
Dunstable Real Estate Attorney Convicted in Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A real estate attorney pleaded guilty today to participating in a far-reaching scheme to defraud banks and mortgage companies as part of a conspiracy involving sham “short” sales of numerous residential properties in the Merrimack Valley of Massachusetts.
Hyacinth Bellerose, 50, of Dunstable, Mass., pleaded guilty to one count of conspiracy to commit bank fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for Feb. 4, 2016.
Bellerose colluded with others – including a Methuen loan officer and a Haverhill real estate agent who were not identified in the charging document – to defraud various banks through the use of bogus short sales of homes in Haverhill, Lawrence and Methuen. A short sale is a sale of real estate for less than the value of any mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender, and that generally result in the lender absorbing a loss on the loan and releasing the borrower from the unpaid balance. By nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt. In this case, Bellerose colluded with others to feign a short sale and thereby defraud banks of the full value of the mortgage.
The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater,” with their homes worth less than the mortgage debt they owed. As part of the scheme, Bellerose and her co-conspirators submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales – and thereby to release the purported sellers from their unpaid mortgage debts – while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in the homes with their debt substantially reduced while Bellerose and others made money from the transactions fees associated with the fake sales. In some cases, the conspirators then re-sold the properties in genuine arms-length transactions for a profit.
As part of the conspiracy:
- The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties, when in fact, the transactions were not arms-length, and the sellers retained control of (and frequently continued to live in) the properties after the sale. In some cases, the purported third-party buyers were actually the spouses, parents or children of the purported sellers.
- The conspirators submitted phony earnings statements in support of numerous loan applications that they submitted to banks on behalf of purported buyers, in order to obtain financing for the purported sales.
- The conspirators submitted phony HUD-1 Settlement Statements to banks, as well as to the Federal Housing Administration, that did not accurately reflect the disbursement of funds in the transactions. (A HUD-1 Settlement Statement is a standard form, developed by the U.S. Department of Housing and Urban Development, that is used to document the flow of funds in real estate transactions. HUD-1 Settlement Statements are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
For example, in one transaction, the unnamed loan officer and the loan officer’s spouse signed two purchase and sale agreements, dated five days apart, in which they purported to agree to the sale of their Methuen home to a third party. In the first agreement, they purported to sell the property for $299,000. In the second, they purported to sell the property for $289,000.
The first agreement was provided to Chase Home Finance LLC, a subsidiary of J.P. Morgan Chase Bank, N.A., which held the first mortgage on the home, and also affirmed that they were unrelated and that there was no agreement that would allow the sellers to remain in the property after the sale. In fact, the purported buyer was the mother of one of the purported sellers, who intended to remain in the property after the purported sale.
To facilitate the transaction, the conspirators submitted to Bank of America a loan application on behalf of the purported buyer that falsely represented her employment status, and was accompanied by phony earnings statements. The conspirators also submitted to Bank of America the second purchase and sale agreement, reflecting the higher purported sale price of $299,000.
In connection with the purported sale, Bellerose prepared two HUD-1 Settlement Statements. One Settlement Statement was provided to Chase as the short-selling bank, and reflected a purported sale price of $289,000, and a purported buyer deposit of $15,216. The other Settlement Statement, which was provided to Bank of America and the FHA, reflected a purported sale price of $299,000, and a purported buyer deposit of $14,916. In fact, the purported buyer did not make any down payment toward the sale, which was financed entirely by the mortgage loan from Bank of America.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development , Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, the Special Inspector General for the Troubled Asset Relief Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
Dulce Man Sentenced to Prison for Failing to Update His Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – McQuade Quintana, 29, of Dulce, N.M., was sentenced today in federal court in Albuquerque, N.M., to 22 months in prison followed by three years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Quintana will also be required to register as a sex offender following his term of incarceration. The sentence was announced by U.S. Attorney Damon P. Martinez and U.S. Marshall Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Quintana was arrested on Nov. 25, 2014, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On Dec. 16, 2014, Quintana was indicted for failing to update his registration between Oct. 10, 2014 and Nov. 25, 2014, in Bernalillo County, N.M.
According to court filings, Quintana was convicted of aggravated sexual abuse of a child in Jan. 2006. On Sept 30, 2010, Quintana registered as a sex offender in Bernalillo County and agreed to notify the sheriff of the county to which he moved if he relocated outside of the county. Quintana last registered as a sex offender on March 16, 2011, in Rio Arriba County, and subsequently failed to notify the New Mexico Department of Public Safety or the Bernalillo County Sheriff’s Office that he had moved or to update his sex offender registration as required by SORNA.
On June 18, 2015, Quintana pled guilty to a felony information and admitted that between Oct. 10, 2014 and Nov. 25, 2014, he failed to register as a sex offender in Bernalillo County. Quintana also admitted that on Sept. 5, 2014, he was approved to reside at a residential reentry program in Albuquerque by the U.S. Probation Office and that he left the program without permission on Oct. 10, 2014.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Defendant Sentenced on Multiple Federal Charges in Connection with Purchase and Export of Luxury Vehicles to ChinaRead the Press Release
Acting United States Attorney Gregory J. Haanstad of the United States Attorney’s Office for the Eastern District of Wisconsin announced that, on October 27, 2015, Defendant Mao Peng (age: 26) of Shorewood, Wisconsin, was sentenced to 27 months in federal prison and ordered to pay $517,265.72 in restitution by United States District Court Judge J.P. Stadtmueller.
Peng had previously been charged by criminal information with, and had pleaded guilty to, three federal felony offenses: conspiracy to engage in wire fraud, conspiracy to engage in identity theft, and conspiracy to misuse of the United States’ Automated Export System to further criminal activity.
According to the information and plea agreement, Peng had conspired to defraud the State of Wisconsin of state and local sales tax revenue in connection with the purchase of luxury vehicles, which Peng and his company Longen Trading intended to export to China, by fraudulently using Native American straw buyers to make those purchases in a tax-exempt manner. Specifically, Peng and Longen Trading used straw buyers in connection with the purchase of approximately 154 luxury vehicle purchase transactions, having a total purchase price of approximately $9,132,106.94, and thereby evaded Longen Trading’s payment of a total of approximately $515,964.04 in state and local sales taxes that Longen Trading was legally obligated to pay in connection with the purchase of those vehicles.
According to the information and a plea agreement, Peng and Longen Trading also conspired to cause luxury vehicles to be purchased for export, via identity theft, that is, by using means of identification that belonged to a past or prospective straw buyer, without that person’s permission to purchase the vehicle using his or her identity. Specifically, between in or about June 2012 and June 2014, Peng and Longen Trading conspired with others to purchase approximately 71 luxury vehicles, having a total purchase price of approximately $4,212,945.06, using a means of identification belonging to another person, without that person’s knowledge or permission.
According to the information and a plea agreement, between approximately June 2012 and June 2014, Peng and Longen Trading also conspired with others to use the Department of Commerce’s Automated Export System (“AES”) to further these illegal activities, in violation of 13 U.S.C. § 305(a)(2).
As a part of his plea agreement, Peng also agreed to the civil forfeiture of approximately $1.2 million in funds seized from various bank accounts he controlled as well as 29 new luxury vehicles, including new Porsche, Mercedes Benz, and BMW vehicles.
Following the sentencing, Acting United States Attorney Gregory J. Haanstad stated: “As this case reflects, the United States Attorney’s Office and the United States Department of Justice are committed to aggressively combatting both identity theft and tax evasion, in whatever form that tax evasion conduct might take. We are also committed to taking the profit out of crime and to obtaining just financial outcomes in our criminal cases through the judicious use of both asset forfeiture and restitution remedies.”
Haanstad commended the investigative work that the United States Secret Service and United States Department of Commerce, Bureau of Industry & Security, Office of Export Enforcement conducted in this matter, along with the investigative assistance provided by the following state and local law enforcement agencies: the Wisconsin Department of Criminal Investigations, the Wisconsin Department of Transportation Investigations, the Milwaukee Police Department, the Oneida Police Department, the Menomonee Police Department, the Stockbridge-Munsee Police Department, the Kenosha Police Department, the Wauwatosa Police Department, the Waukesha Police Department, the Glendale Police Department, the Green Bay Police Department, the Milwaukee Secret Service Financial Crimes Task Force, and the Native American Drug and Gun Initiative Task Force.
Dan Clutch, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry & Security, Office of Export Enforcement, Chicago Field Office, stated: “This sentencing sends a strong message to those who criminally misuse the Automated Export System to further illegal activity. This case is the result of outstanding collaborative investigative work between federal, state, local, and tribal law enforcement agencies.”
This case was prosecuted by Assistant United States Attorney Scott J. Campbell.
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Defendant Gets 84 Months in Federal Prison for Using Personal Identifiers of Deceased Individuals to File Fraudulent Tax ReturnsRead the Press Release
SALT LAKE CITY – Moussa Sleiman Bitar, aka Justizego, age 36, a naturalized U.S. citizen who is also a citizen of Lebanon, will serve 84 months in federal prison after pleading guilty to wire fraud, aggravated identity theft, and false claims as a part of a scheme to use the personal identifiers of deceased individuals to file fraudulent tax returns.
U.S. District Court Judge David Nuffer also ordered Bitar to pay $843,561 in restitution and placed him on supervised release for 60 months following his prison sentence. The case against Bitar, investigated by special agents of IRS Criminal Investigation, the FBI, the U.S. Marshal’s Service, and the West Valley City Police Department, was unsealed at sentencing in U.S. District Court in Salt Lake City last week.
Bitar admitted that from about January 2013 until about July 2013, he obtained the names, addresses, social security numbers, and other personal identifiers of deceased individuals and used the information to file false and fraudulent tax returns. Based on these fraudulent tax returns, the IRS sent refunds to bank accounts under Bitar’s control and the control of other individuals working with him. Once the funds arrived, Bitar would withdraw the funds or have others working with him withdraw the funds or transfer the funds to him. Funds were moved through banks in Utah. Prosecutors believe Bitar operated the scheme from Lebanon and other countries using individuals in Utah and other locations.
According to court documents, on Jan. 22, 2013, Bitar transmitted an email with attachments containing personal identifiers of deceased individuals to be used to file a fraudulent tax return, including personal identifiers of L.T., a deceased individual. On about April 4, 2013, he caused a fraudulent 1040 tax return, in the name of L.T., to be filed with the IRS claiming a tax return in the amount of $1,004, which he received. The scheme was in violation of federal wire fraud, aggravated identity theft, and false claims laws.
“This significant federal prison sentence is appropriate for the egregious conduct committed by Mr. Bitar. Using the personal identifiers of deceased individuals to steal money from American taxpayers is graphic example of the continued willingness of identity thieves to do whatever they can to obtain money or property that doesn’t belong to them,” U.S. Attorney John W. Huber said today. “We recognize the outstanding work of the law enforcement agencies involved in this complex investigation.”
"Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation," said John G. Collins, Special Agent in Charge of IRS Criminal Investigation in Utah. "Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers and their families, especially those who have lost loved ones. This sentence should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating these crimes and holding those who defraud the government accountable."
Bitar was charged in a federal indictment returned in June 18, 2014. He was arrested in the Canary Islands on June 26, 2014, on a request from the United States for a provisional arrest. A superseding indictment was returned on July 2, 2014. Bitar was turned over to U.S. Marshals custody after extradition proceedings, which he waived, and he was transported to the United States.
As a part of the plea agreement reached with Bitar in Utah, the U.S. Attorney’s Office for the District of Colorado will move to dismiss its indictment against Bitar as well as a supervised release violation. The U.S. Attorney’s Office in the Eastern District of Michigan also has agreed not to seek an indictment against Bitar for a similar fraud scheme, however, Bitar was ordered to pay restitution for claims made in Michigan.
Date Rape Drug Distributor Pleads GuiltyRead the Press Release
Montgomery, Alabama - Stephen K. Howard, 64 of Auburn, Alabama, pleaded guilty today to three counts of possession with intent to distribute a controlled substance analogue (1-4 butanediol) and one count of possession of methamphetamine, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. When ingested, 1-4 butanediol has the same effect on the body as gamma-hydroxybutric acid (GHB), commonly known as the “date rape” drug.
Evidence uncovered during the investigation indicated that Howard unlawfully used his position as a lab technician at Auburn University to order the butanediol, or date rape drug, from the manufacturer. Howard then sold the date rape drug to an undercover officer on two occasions and stored large amounts of the drug in his Auburn residence. Howard denies that he personally distributed any butanediol to Auburn University students.
"Those who take advantage of young girls by doping them unconscious are disgusting and repulsive,” stated U.S. Attorney George L. Beck, Jr. “Rape by force or mental incapacity is a serious crime that warrants harsh prosecution. Those who make or sell drugs used to rape by mental incapacity are equally as guilty."
Auburn Police Captain Will Mathews praised the efforts of the coordination of local, state, and federal law enforcement agencies to bring this case to conclusion. “This was a case in which a person was poisoning our community with illicit chemicals. The Auburn Police Division solicited assistance from ALEA, FBI, DEA, and the U.S. Attorney’s Office to bring this criminal to answer for his crime. It was very successful.”
“State Bureau of Investigation Narcotics Agents worked closely with our federal and local partners during the course of this investigation,” said Secretary of Law Enforcement Spencer Collier. “We will continue to collaborate with these law enforcement agencies as we combat the unlawful production and distribution of illegal drugs in Alabama.”
“Those who profit from the victimization of innocent people should take notice of this case and know that law enforcement will not tolerate or sit idly while they engage in cowardly conduct and predatory behavior,” stated Robert F. Lasky, Special Agent in Charge of FBI, Mobile Field Division.
“The cooperation experienced in this case was extraordinary and shows what can be accomplished through teamwork,” stated Assistant Special Agent in Charge, Clay Morris. “This teamwork took a seller of a date rape drug, a predator, off the street. We at DEA are committed to continuing the efforts to keep our streets safe from this type predator.”
For the date rape drug, Howard could be imprisoned for up to 20 years, receive a fine of $1,000,000, and serve a term of supervised release at least 3 years. For the methamphetamine, Howard could face imprisonment of up to 1 year and a minimum fine of $1,000.00.
This case is being investigated by the Auburn Police Department, the Alabama Law Enforcement Agency, the Federal Bureau of Investigation and the Drug Enforcement Administration. This case is being prosecuted by Assistant United States Attorneys Verne Speirs and Jonathan Ross.
Convicted Sex Offender Charged with Distribution and Possession of Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging ANTHONY T. KURTZ, age 40, of Livingston, Louisiana, with distribution of child pornography, possession of child pornography, and forfeiture.
According to the Indictment, KURTZ possessed child pornography which contained images of pre-pubescent minors and minors who were under 12 years of age. Both the child pornography that KURTZ distributed and possessed had been transported using means and facility of interstate and foreign commerce. The indictment further alleges that offenses were committed after KURTZ had previously been convicted of sexual assault and indecent assault in the State of Pennsylvania.
U.S. Attorney Walt Green stated: “Children victimized during the production of child pornography are re-victimized every time these images are distributed and viewed on the internet. This office will continue to protect society’s most vulnerable citizens by vigorously prosecuting any individuals who distribute and possess images of children being sexually abused.”
“Individuals who distribute child pornography further injure innocent victims each time these illegal images are distributed more widely online,” said Raymond R. Parmer Jr., Special Agent-in-Charge of the U.S. Department of Homeland Security, Homeland Security Investigations (HIS) New Orleans. “Child sex abuse is one of the most serious crimes HSI investigates due to the lasting psychological and physical damage it can inflict on victims, and as such it will continue to be one of the agency’s highest priorities.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana Attorney General’s Office – Cyber Crime Unit.
This matter is being prosecuted by Assistant U.S. Attorney Ryan R. Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Chelsea Man Sentenced for Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Chelsea resident was sentenced today in U.S. District Court in Boston in connection with stealing the identity of an American armed services veteran.
Noe Arturo Castillo, 43, of Chelsea, was sentenced today by U.S. District Court Judge William G. Young to 24 months in prison and ordered to pay $21,082 to the federal government. In July 2015, Castillo pleaded guilty to aggravated identity theft, wire fraud, passport fraud, theft of public money, and misuse of a Social Security number.
Castillo, who is presently a legal permanent resident of the United States but originally from Guatemala, unlawfully entered the United States in 1994, at which time he obtained a driver’s license and Social Security card in the identity of an American citizen who served in the armed forces. In 2005, Castillo applied for a U.S. passport in the victim’s identity. Castillo then secured a job using the victim’s identity and had his paycheck directly deposited into a bank account using the victim’s identity. Castillo was later terminated from the job and began collecting unemployment benefits in the victim’s identity, to which he was not entitled.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was investigated by the Homeland Security Investigations Document and Benefit Fraud Task Force. The case was prosecuted by Assistant U.S. Attorney Carlos A. López and Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Criminal Division.
Cheektowaga Man Pleads Guilty to ExtortionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Eric Battistoni, 72, of Cheektowaga, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to use and using extortionate means to collect an extension of credit. The charges each carry a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that Battistoni was hired by his co-defendant, Thi Nguyen, to help Nguyen collect a $24,000 bookmaking debt. The debt belonged to an individual who placed bets with Nguyen during the 2012 NFL season. During the course of several meetings with Nguyen’s bookmaking customer in April and May of 2013, Battistoni threatened to harm the customer if the customer failed to make timely payments on the $24,000 debt.
Nguyen has been convicted and will be sentenced on December 4, 2015.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Sentencing is scheduled for February 16, 2106 at 1:00 pm before Judge Arcara
Charleston man sentenced by Federal court for distribution of heroinRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Matthew Watts, II, 31, of Charleston, West Virginia, was sentenced in federal court in Charleston to three years of supervised probation for distribution of heroin. As a condition of the probation, Watts is required to serve eight months on home confinement, perform 400 hours of public service, and participate in an AA program.
Watts pleaded guilty to distributing heroin on July 30, 2015, in federal court in Charleston. Watts admitted that on September 17, 2014, he sold heroin to a confidential informant working with law enforcement authorities. The drug deal took place in Charleston at the 7-Eleven parking lot located on Washington Street, West.
The investigation was conducted by the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
This case was prosecuted as 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 opiate painkillers and heroin in communities across the Southern District.
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Carrollton, Texas, Man Sentenced to 84 Months in Federal Prison on Child Porn ConvictionRead the Press Release
DALLAS — A Carrollton, Texas, man, Jordan Michael Porter, 29, was sentenced this week by U.S. District Judge Sam A. Lindsay to 84 months in federal prison, following his guilty plea in February 2015 to one count of receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Porter has been in custody since his arrest in July 2014 on a related federal indictment.
According to documents filed in the case, the investigation began when a parent found a photo of their 15-year-old minor female child kissing what looked to be a much older man. When questioned by the parent, the minor admitted she had met then 28-year-old Porter online a few weeks earlier. The parent notified the Garland Police Department.
The investigation revealed that the minor female had communicated with Porter via text, email and phone calls. They had video-chatted and had met on previous occasions and engaged in sexual activity.
An undercover officer took over the minor’s online account and in subsequent chats with Porter, they agreed to meet, at the usual place, on July 2, 2014. Porter was arrested when he arrived at the location.
Porter admitted he knew the girl was age 15. He admitted she sent lewd and lascivious photos of her partially clothed in a bathrobe, and that on three of the four occasions they met, they had engaged in sexual activity.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted the case.
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Carlsbad Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Gary Nicholas Allen, 30, of Carlsbad, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Allen was arrested on June 23, 2015, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute in Eddy County, N.M., on April 8, 2015. According to the complaint, Pecos Valley Drug Task Force agents executed a search warrant at a residence in Carlsbad where they seized $3,284.00 in cash, approximately 40 gross grams of methamphetamine, a loaded semi-automatic firearm, and drug paraphernalia.
Allen was subsequently indicted on Sept. 16, 2015, and charged with possession of methamphetamine with intent to distribute on April 8, 2015, in Eddy County.
During today’s proceedings, Allen pled guilty to the indictment and admitted that on April 8, 2015, he possessed approximately 33 grams of methamphetamine which he planned to distribute to others. Allen further admitted that a loaded semi-automatic firearm was also found in his residence.
At sentencing, Allen faces a statutory maximum of 20 years in federal prison followed by not less than three years of supervised release. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting this case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Carlisle Man Federally Indicted for Bank Robberies and Firearms ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Turns, age 32, of Carlisle, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg, Pennsylvania. The indictment charges Turns with bank robbery and use of a firearm during a crime of violence.
According to United States Attorney Peter Smith, the Indictment alleges that Turns robbed two banks in August 2015, one in Mechanicsburg, PA and one in Dillsburg, PA, using a firearm. Turns was apprehended after the second bank robbery through a cooperative effort by the Upper Allen Township, Camp Hill and Lower Allen Township Police Departments, and the Pennsylvania State Police. When taken into custody, Turns was allegedly fleeing in a stolen car with one firearm in his waistband, and nine additional stolen firearms in the back of the car.
This case is being investigated by the Federal Bureau of Investigation, the Mechanicsburg and Carroll Township Police Departments and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Buffalo Man Convicted of Conspiracy to Distribute Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Tommy Eugene Clark, aka Boo, 28, of Buffalo NY, who was convicted of conspiracy to possess with intent to distribute and to distribute crack cocaine, was sentenced to 58 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that the charge stems from an investigation into the trafficking of cocaine base and cocaine from the Cleveland, Ohio area into Western New York, and the distribution of those drugs in North Tonawanda, Niagara Falls, Lockport, and Buffalo.
Co-defendants Nathaniel Clark and Raysean Clark have been convicted and are awaiting sentencing. Co-defendant Kayla Combs was sentenced to 30 months in prison.
The sentencing is the culmination of an investigation on the part of Task Force Agents and Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, in conjunction with the Niagara County Sheriff's Department and Niagara County Drug Task Force, under the direction of Sheriff James Voutour, and the North Tonawanda Police Department, under the direction of Chief William Hall.
Brockton Armed Career Criminal Receives 15 Years in Federal Firearms CaseRead the Press Release
BOSTON – A Brockton man was sentenced in U.S. District Court in Boston yesterday in connection with his possession of a firearm and ammunition.
Foster L. Starks, Jr., 54, was sentenced by U.S. District Court Judge Leo T. Sorokin to 15 years in prison and three years of supervised release. The sentence imposed was largely a product of Starks’s lengthy criminal history. Beginning in 1989, Starks has been convicted of nine armed robberies, two unarmed robberies, one armed robbery while masked, and two armed robberies with intent to rob. Based on this history, Starks qualified as an armed career criminal and therefore is subject to a minimum mandatory sentence of 15 years in prison.
In September 2015, Starks was convicted of being a felon in possession of a firearm and ammunition following a week-long jury trial. Trial evidence revealed that on May 24, 2009, at 11:05 p.m., Starks was stopped by a Massachusetts State Police Trooper for a marked lanes violation while driving on Route 24 North in Raynham. Starks was arrested after the Trooper discovered that he was driving with a suspended license. While performing a search of the car, the Trooper found a shopping bag on the front passenger seat containing a .45 caliber handgun loaded with seven bullets. The shopping bag also contained two boxes of additional ammunition and four bottles containing prescription medications. Starks’s prior convictions prohibited him from possessing a firearm or ammunition.
United States Attorney Carmen M. Ortiz and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement. The case was prosecuted by Assistant United States Attorneys David G. Tobin and Jordi de Llano of Ortiz’s Major Crimes Unit.
Bozeman Man Sentenced in Missoula to Seven Years in Prison for Receipt of Child PornRead the Press Release
MISSOULA – Anthony Dane Roberty, 54, of Bozeman, Montana, was sentenced today to 84 months incarceration followed by 15 years supervised release, for receipt of child pornography. Chief U.S. District Court Judge Dana Christensen sentenced Roberty following a July 16, 2015, hearing held before U.S. Magistrate Jeremiah Lynch, in which Roberty pleaded guilty to the offense. The sentence will run concurrently with state sentences Roberty is serving for felony DUI.
In an Offer of Proof filed by Montana Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have proven that in March 2014, an FBI agent downloaded files depicting child pornography as part of an online investigation to identify individuals trafficking in child pornography using BitTorrent. The IP address for the downloaded files was connected to Roberty’s residence. The agent obtained a search warrant and conducted a search of Roberty’s residence in September of 2014. Roberty was interviewed on the day of the search and admitted he used BitTorrent and that agents would find child pornography on his computer and an external hard drive.
A computer and portable hard drive seized from Roberty’s residence were found to contain child pornography. A forensic examiner determined that the computer contained BitTorrent client software and had been used to send and receive files using BitTorrent. The examiner discovered numerous graphics depicting children engaged in sexually explicit conduct, including sexual conduct between children and adults. The examiner also found video files that depicted child pornography. The files were created between February and April of 2014.
“Once again, our partnerships with state and federal law enforcement agencies have given us the resources to track down consumers and distributors of child porn,” said Montana U.S. Attorney Mike Cotter. “By working together under the Department’s Project Safe Childhood Initiative, we help keep children from being victimized by these types of predatory criminals.” David A. Thompson, Special Agent in Charge of Homeland Security Investigations in Denver stated: “this significant prison sentence reflects the serious criminal nature of child exploitation, and the resulting permanent trauma inflicted on its young and helpless victims. Our HSI special agents are trained to identify, investigate and pursue prosecution against these child predators, and rescue their victims – and we take that responsibility very seriously.”
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children. Investigative agencies involved in the case included the FBI, Homeland Security Investigations, the Montana Division of Criminal Investigation and the Bozeman Police Department. Assistant United States Attorney Cyndee Peterson prosecuted this case.
Bolingbrook Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
CHICAGO — A Bolingbrook man pleaded guilty today to a federal charge that he attempted to travel overseas to join a foreign terrorist organization in Syria.
MOHAMMED HAMZAH KHAN, 20, pleaded guilty to one count of attempting to provide material support to a foreign terrorist organization. The organization is identified in a written plea agreement as the Islamic State of Iraq and the Levant (“ISIL”).
Khan, a U.S. citizen from southwest suburban Bolingbrook, faces a maximum sentence of 15 years in prison. U.S. District Judge John J. Tharp Jr. did not immediately schedule a sentencing hearing. A status hearing was set for Dec. 3, 2015, at 11:30 a.m.
Khan has been detained in federal custody since he was arrested on Oct. 4, 2014, at O’Hare International Airport by members of the Chicago Joint Terrorism Task Force.
Beginning no later than approximately February 2014, Khan used the Internet to obtain introductions to ISIL members in Syria and to assist him with traveling there to join the terrorist group, according to the plea agreement. Khan spoke with ISIL members to coordinate the logistics of his admission into ISIL-controlled territory, the plea agreement states.
Khan admitted in the plea agreement that he knew ISIL had been designated by the United States as a foreign terrorist organization. Upon arriving in Syria, according to the plea agreement, Khan intended to work under the direction and control of ISIL, and be required to take any assignment ISIL gave him.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The Joint Terrorism Task Force is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance in the investigation.
The government is represented by Assistant United States Attorneys Matt Hiller, Angel Krull and Sean Driscoll; and U.S. Department of Justice Trial Attorney Michael Dittoe of the National Security Division.
Plea Agreement
Behavioral Health Services Provider Agrees to Pay $1 Million for Allegedly Submitting False Claims to Federal Health Care ProgramsRead the Press Release
NEWARK, N.J. – Vericare Management Inc., a behavioral health services provider, agreed today to pay more than $1 million to resolve allegations that it violated the False Claims Act by falsely billing federal health care programs for services that were not medically necessary, U.S. Attorney Paul J. Fishman announced.
Vericare, which is headquartered in San Diego, California, provides psychiatric and psychological services focused on geriatric patients in long-term care and skilled nursing facilities in New Jersey, California, and Texas, among other states.
According to the contentions of the United States contained in the settlement agreement:
From Jan. 1, 2012, through Dec. 31, 2014, Vericare sought and obtained “standing orders” or other agreements with 128 facilities under which Vericare’s clinicians performed evaluations on all new admissions to the facility. These evaluations were conducted regardless of whether a physician provided a patient-specific order indicating that such an evaluation was medically necessary. Vericare improperly submitted claims to the United States pursuant to these standing orders or other agreements for diagnostic interviews, evaluations, and examinations.
These allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
The settlement also resolves allegations that Vericare incorrectly submitted claims to Medicare for certain nursing facility evaluation and management services which were not supported by the patient’s medical record. This component of the settlement resulted from Vericare’s self-disclosure of this issue to the U.S. Attorney’s Office. As a result of Vericare’s decision to self-disclose this issue, the company was required to pay significantly less than the treble damages and penalties that the United States may seek under the False Claims Act.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The qui tam case is captioned United States ex rel. Bart Rossi v. Vericare, Civil Action No. 13-6884 (D.N.J.).
Defense counsel for Vericare:
Michael Kendall Esq., Boston, Massachusetts
Counsel for relator:
Lisa M. Fittipaldi Esq., Warren, New Jersey
Bangor Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Joshua Dunston, 37, of Bangor, Maine, pled guilty today in U.S. District Court to possessing child pornography.
According to court records, from about March 17 to about May 5, 2015, Dunston uploaded multiple images of child pornography to online accounts he controlled, and kept scores of additional images depicting the sexual exploitation of young children on his cell phone. At the time of these acts, Dunston was on supervised release for a 2006 child pornography conviction.
Dunston faces between 10 and 20 years in prison, a $250,000 fine and between five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit, the Penobscot County Sheriff’s Office, and the Bangor Police Department.
Albuquerque Woman Sentenced to Federal Probation for Embezzling Social Security Administration FundsRead the Press Release
ALBUQUERQUE – Judith Ann Sanchez, 60, of Albuquerque, N.M., was sentenced today in federal court to three years of probation for her theft of government property conviction. Sanchez was also ordered to pay $384,579.11 in restitution to the Social Security Administration (SSA) which represents the money she fraudulently obtained from the SSA.
Sanchez pled guilty on May 5, 2015, to a felony information charging her with theft of government property. In entering the guilty plea, Sanchez admitted that from Oct. 1, 1990 through April 2012, she embezzled money from SSA in the form of Supplemental Security Income Program benefits, Supplemental Nutrition Assistance Program benefits and Medicaid benefits. Sanchez admitted she received payments from these programs in the total amount of $384,579.11 to which she was not entitled.
This case was investigated by the Social Security Administration and was prosecuted by Assistant U.S Attorney Paul Mysliwiec.
*****media Advisory*****Read the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Chairman Harvey Pratt of the Indian Arts and Crafts Board and Special Agent in Charge Nicholas E. Chavez of the U.S. Fish and Wildlife Service, Office of Law Enforcement for the Southwest Region, will hold a press conference at 1:00 P.M. on THURSDAY, OCTOBER 29, 2015, to announce a significant law enforcement action relating to an Indian Arts and Crafts Act investigation.
WHO: U.S. Attorney Damon P. Martinez, Chairman Harvey Pratt of the Indian Arts and Crafts Board, Special Agent in Charge Nicholas E. Chavez, U.S. Fish and Wildlife Service, Office of Law Enforcement for the Southwest Region
WHEN: THURSDAY, OCTOBER 29, 2015, 1:00 p.m. MDT
WHERE: U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials (which must be worn around the neck or pinned to clothing at all times). Media may begin to arrive at 12:45 p.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Wednesday 28 October 2015
“Ceasefire Columbia” – Offender notification meeting set for Thursday, October 29, 2015Read the Press Release
Contact Person: Bill Nettles (803) 929-3000
Columbia, SC-------United States Attorney Bill Nettles, in collaboration with other federal, state and local law enforcement agencies announce the launch of initiative “Ceasefire Columbia!” This initiative is aimed at reducing gun violence in the 29203 neighborhoods of North Columbia.
Columbia Police Chief Skip Holbrook stated, “Last year the Columbia Police Department received over 1400 calls of shots fired of which there were 118 confirmed victims shot. A high and disproportionate number of these calls were located in the 29203 neighborhoods of North Columbia. Therefore, our focused goal is to address individuals most prone to commit violent crimes or be victim to violent crime, all while improving the quality of life in our neighborhoods.”
Operation “Ceasefire” was first introduced in Boston in the mid 90’s. This strategy has proven successful in reducing gun violence, reducing arrests and imprisonment, and strengthening disadvantaged communities. Similar focused deterrent strategies have proven successful around the state in cities such as Greenville, Aiken, North Charleston and Conway.
On Thursday, October 29, 2015 at 6:30 p.m., approximately 50 individuals who are currently on probation or parole will convene at the Eau Claire Print Building, 3907 Ensor Avenue, Columbia, SC 29203, where they will face law enforcement representatives, as well as members of their own community, who will let them know that “enough is enough.” The message will be clear: If any of these individuals are caught with a firearm or ammunition, they will immediately be taken into custody and charged in federal and/or state court, where they will face substantial prison sentences.
In addition to law enforcement, service providers will be present to discuss services which will help make it less likely for the attendees to reoffend. They will be offered assistance with issues they face, such as drug and alcohol dependency, housing issues, anger management, and employment.
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Woonsocket Resident Pleads Guilty to Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Miguel Colon, 55, of Woonsocket, pleaded guilty in federal court in Providence today to charges of trafficking heroin and cocaine, and to carrying a firearm in furtherance of his drug trafficking activities. Colon was arrested in April 2015 by federal, state and local law enforcement upon his return to New England from Texas and Florida with three kilos of cocaine and a loaded firearm found stashed inside a sophisticated hydraulically-controlled hidden compartment inside his vehicle. A subsequent court authorized search of self-storage units rented by Colon resulted in the seizure of nearly 900 grams of heroin.
Appearing before U.S. District Court Chief Judge William E. Smith, Colon pleaded guilty to possession with the intent to distribute 100 grams of more of heroin, possession with the intent to distribute 500 grams or more of cocaine, being a felon in possession of a firearm and carrying a firearm during a drug trafficking crime.
Colon’s guilty plea is announced by United States Attorney Peter F. Neronha; Woonsocket Police Chief Thomas S. Carey; Providence Police Chief Colonel Hugh T. Clements, Jr.; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
According to court documents and information presented to the court, Woonsocket and Providence Police detectives, independent of one another, developed information this past winter that approximately once a month Miguel Colon traveled by vehicle to Texas and/or Florida to obtain large amounts of cocaine and/or heroin, which he then transported back to Rhode Island to distribute. In late April, detectives and officers from the Providence and Woonsocket Police Departments developed information that Colon was on a drug run to Texas and Florida. The investigation determined that Colon and a female companion would be arriving back into Rhode Island in the early morning hours of April 27, 2015.
According to court documents and information presented to the court, in the early morning hours of April 27, numerous local, state and federal unmarked law enforcement vehicles were posted along Route 95 N from the Connecticut border and northward. Law enforcement spotted Colon’s vehicle at about 4:00AM, and followed the vehicle until it came to a stop in a parking lot of a motel in North Attleboro, Mass. Law enforcement quickly surrounded the vehicle and removed Colon. A Rhode Island State Police K-9 indicated the presence of narcotics inside the vehicle.
With the assistance of North Attleboro and Massachusetts State Police, the vehicle was removed to the North Attleboro Police Department where a Massachusetts court authorized search of the vehicle resulted in the discovery of three kilos of cocaine, approximately one pound of marijuana and a loaded semi-automatic firearm inside a sophisticated hydraulically-controlled hidden compartment.
Also located in the vehicle were keys to self-storage units at a Woonsocket storage facility. A Rhode Island court authorized search of two storage units rented by Colon at the Woonsocket storage facility resulted in the seizure of approximately 895 grams of heroin, and various items used in the packaging and distribution of drugs.
A court authorized search of Colon’s residence resulted in the seizure of .380 caliber live ammunition, drug ledgers with amounts of money listed next to names - some of the names on the ledgers were known to Woonsocket Police narcotics detectives as drug dealers in the City of Woonsocket, several small seedling sized marijuana plants and a State of Rhode Island marijuana caregiver card issued to Colon.
Colon, who has been detained in federal custody since his arrest, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Wheatland father, son charged with illegal firearmsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Wheatland, Mo., father and son were charged in separate cases today with illegally possessing firearms.
William “Bill” Harlan Parker, 40, and his son, Devlin Quanah Parker, 20, both of Wheatland, were charged in separate criminal complaints filed in the U.S. District Court in Jefferson City, Mo. Bill and Devlin Parker, who were arrested today, remain in federal custody pending a detention hearing on Monday.
Today’s complaint charges Bill Parker with possessing firearms after being convicted of a crime of domestic violence, and with possessing an unregistered firearm. Today’s complaint charges Devlin Parker with possessing unregistered firearms.
According to an affidavit filed in support of the federal criminal complaints, an investigator with the Hickory County, Mo., Sheriff’s Department was following up on a report of sounds of gunfire on July 14, 2015. Bill and Devlin Parker were identified as the individuals conducting the shooting. Several witnesses reported that the Parkers always carried firearms on their sides. Cooperating sources also told law enforcement officers that there were firearms at their residence and that Bill Parker had made statements about shooting and killing law enforcement officers.
A federal search warrant was executed today at the Parker residence. Law enforcement officers seized an AR-15-style rifle that Bill Parker was holding when they entered the residence, a .223-caliber rifle with no markings or serial number. There were several other firearms located in the residence, including a Springfield .40-caliber pistol, a Stevens 12-gauge shotgun, an Archangel .22-caliber rifle and a Para .45-caliber pistol with no visible serial number.
It was determined that Devlin Parker was sleeping on a cot in a Chevrolet van parked outside the residence. Officers searched the van and found a Smith & Wesson .40-caliber handgun with no visible serial number inside the sleeping bag Devlin Parker was using. There was also a 12-gauge shotgun with no markings in the van. In a box behind the driver’s seat officers found two AR-15-style rifles, with short barrels and no visible identifying markings. The rifles were field-tested and determined to be “machine guns.” There was also a large amount of various ammunition found in the van.
Dickinson cautioned that the charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. They were investigated by the Hickory County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Volo, Illinois Woman Pleads Guilty to Robbing Two Chase Bank Branches and Attempting to Rob A ThirdRead the Press Release
ROCKFORD — A Lake County woman pleaded guilty today in federal court to two counts of bank robbery and one count of attempted bank robbery. TERESA M. KNOWLES, 39, of Volo, Ill., pleaded guilty before U.S. District Judge Frederick J. Kapala to robbing the Chase Bank, in Crystal Lake, Ill. on March 21, 2015, and the Chase Bank, in Grayslake, Ill. on March 24, 2015, as well as attempting to rob the Chase Bank in Johnsburg, Ill., on March 24, 2015.
According to the written plea agreement, on March 21, 2015, Knowles drove a Nissan SUV to a branch of Chase Bank located in Crystal Lake, Ill. She entered the bank, approached a teller window and passed the teller a note that demanded $10,000. The teller first handed Knowles $400. When Knowles said that was not enough money, the teller then handed Knowles another $2450. Knowles then left the bank and drove away.
Knowles also admitted in the plea agreement that on March 24, 2015, she drove to a branch of Chase Bank located in Grayslake, Ill. She entered the bank and handed a teller a note similar to the note Knowles used in robbing the Chase Bank branch in Crystal Lake. The teller handed Knowles $1,000. Knowles walked out of the Chase Bank with the note and drove away.
In addition, Knowles admitted that on March 24, 2015, she drove to a branch of Chase Bank located in Johnsburg, Ill. There, she entered the bank and handed a teller a note demanding money. When the teller refused to hand over any money, Knowles walked out of the Chase Bank and drove away.
Each count of bank robbery and attempted bank robbery carries a maximum potential penalty of up to 20 years in prison, up to 3 years of supervised release following imprisonment, a fine of up to $250,000, and full restitution. The court must impose a reasonable sentence guided by the advisory United States Sentencing Guidelines. Sentencing for Knowles is set for February 4, 2016, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The Johnsburg Police Department, McHenry Police Department, Grayslake Police Department, and Crystal Lake Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
U.S. Attorney's Office, District of Oregon, Hosts Training on Identifying and Investigating Hate CrimesRead the Press Release
PORTLAND, Ore. - On Wednesday, October 28, the United States Attorney’s Office, in partnership with the United States Department of Justice, and the Department of Public Safety Standards and Training, held a day-long training for local, state, tribal, and federal law enforcement, as well as advocacy organizations and community leaders on the topic of Identifying and Investigating Hate Crimes. The training was held on the anniversary date of the passage of the landmark Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, signed into law by President Obama on October 28, 2009.
The training brought nearly 100 people together, representing law enforcement, as well as state, regional, and national community representatives covering the range of interests of the protected classes under the Act. The training featured information on federal and state hate crimes statutes, with particular emphasis on the importance of accurate reporting of hate crimes, as well as a community panel on how law enforcement and the community can work together to bring awareness and prevention of hate crimes. Several special guest speakers presented throughout the day, including Judy Shepard, mother of Matthew Shepard (after whom the statute was named), U.S. Attorney Billy J. Williams, and Marion County Sheriff Jason Myers. Also, Representatives from the Civil Rights Division of the U.S. Department of Justice and the Federal Bureau of Investigation provided case studies to help provide context for the legal complexities of prosecuting such cases. The training is part of the Department’s nationwide effort to provide training on the Hate Crimes Prevention Act to local law enforcement entities, and to increase awareness on the importance of reporting such crimes.
Acting United States Attorney Billy J. Williams notes that the involvement of the community in such training is key to successful enforcement of hate crimes. “Being able to live safely in one’s community is one of the most basic civil rights. In a diverse nation like ours, every one of us must be able to live, go to school, and work without fear of being attacked because of how we look, what we believe, where we come from, or whom we love,” Williams stated. “My office is committed to working with the Civil Rights Division, Law Enforcement, and the community to properly investigate and prosecute those who commit hate crimes.”
Mrs. Shepard, who spoke to the victim’s perspective on hate crimes, said: “On the long road to passing this law, Dennis and I always kept in mind the true purpose, which was to not only see that justice is done for hate crime victims and their loved ones, but more importantly to educate the public about the sheer size of this problem and the community about the exact ways it can protect them. Trainings like these are vital to ensure the Act delivers its full potential.”
The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the victim was engaged in a federally protected activity. The Shepard-Byrd Act also empowers the Department to prosecute hate crimes committed because of the actual or perceived sexual orientation, gender identity, gender or disability of the individual targeted.
In late 2014, the FBI released its annual Hate Crime Statistics report for 2013. The report can be accessed at http://www.fbi.gov/about-us/cjis/ucr/hate-crime/2013. According to the report, 5,928 hate crime incidents involving 6,933 offenses were reported by state and local law enforcement partners to the FBI’s Uniform Crime Reporting (UCR) program in 2013. These hate crime incidents impacted a total of 7,242 victims – defined as individuals, businesses, institutions, or society as a whole. Of note, this report was the first UCR publication to contain data collected under the Matthew Shepard and James Byrd, Jr. Hate Crime Prevention Act of 2009.
Underreporting of such crimes remains a significant concern. According to data provided in the report, thousands of police departments did not report data to the FBI, and of those that did, only about 12 percent reported one or more hate crimes. Further, more than 80 cities with populations over 100,000 either did not participate in the reporting program, or affirmatively reported zero hate crimes to the FBI. In his opening remarks, Acting U.S. Attorney Bill Williams stated that, “We must seize this time as an opportunity to redouble our efforts to work together to improve reporting of hate crime data in order to understand, to the fullest extent, the issues facing our communities today.”
Two Former Tampa Police Department Officers Indicted on Tax Fraud and Money Laundering ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging LaJoyce Caldwell Houston (49) and Eric Houston (54) with conspiracy, theft of government property, and money laundering conspiracy. LaJoyce Houston is also charged with obtaining information from a protected computer with the intent to defraud and aggravated identity theft. If convicted, each faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 10 years in federal prison for each of the theft of government property counts, and up to 20 years’ imprisonment for the money laundering conspiracy count. LaJoyce Houston also faces a maximum penalty of 10 years in federal prison for the computer intrusion count and 2 years’ imprisonment for the aggravated identity theft count, to be served consecutive to any term of imprisonment imposed for the theft of government property and computer intrusion counts. The indictment notifies the couple that the United States intends to seek a forfeiture money judgment in an amount to be determined, but at least $239,116.91, which is traceable to the proceeds of the offenses.
According to the indictment, LaJoyce Houston was a sworn law enforcement officer with the Tampa Police Department (TPD). As part of her authorized duties, she had access to local, state, and federal law enforcement databases, including the State of Florida’s Driver and Vehicle Information Database (DAVID), but her use was restricted to the performance of her authorized duties. Her husband, TPD homicide detective Eric Houston, also had access to the databases for the performance of his authorized duties.
The indictment alleges that beginning in approximately 2010, the Houstons conspired to, among other things, access the personally identifiable information (PII) of individuals using a variety of sources, including law enforcement databases, and transmit it to Rita Girven and others, whom they knew were using that information to commit crimes, including the filing of false federal income tax returns, the receipt of fraudulently obtained tax refunds, establishing and using bank accounts in others’ names, and identity theft. Girven was a TPD informant and a friend of the couple.
The conspirators directed that the fraudulently obtained tax refunds be deposited onto reloadable debit cards or deposited directly into bank accounts opened and maintained in the names of the conspirators and others, including identities that had been stolen. The conspirators then used the debit cards and bank accounts to conduct financial transactions, including making purchases, paying off lines of credit, purchasing money orders, and withdrawing cash from ATMs.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Rita Girven was charged separately with conspiracy to commit wire fraud in the filing of fraudulent federal income taxes. She pleaded guilty on March 16, 2015, and is scheduled to be sentenced on November 20, 2015.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Tampa Police Department, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Twice Convicted Turtle Egg Thief Sentenced to 21 Months in PrisonRead the Press Release
BRUNSWICK, GEORGIA- Lewis Jackson, 61, of Brunswick, Georgia was sentenced today by Chief United States District Judge Lisa Godbey Wood to serve 21 months in prison on his second conviction for violating the Lacey Act by stealing viable sea turtle eggs from Sapelo Island, Georgia. The Lacey Act forbids the stealing and transporting of endangered species, including loggerhead sea turtle eggs. Back in 2013, Jackson was sentenced to 6 months in prison for his first Lacey Act conviction.
According to evidence presented during the guilty plea and sentencing hearings, on July 6, 2015, a Wildlife Technician with the Georgia Department of Natural Resources Sea Turtle Program discovered that 84 loggerhead sea turtle eggs from a nest on Sapelo Island, Georgia were missing. Law enforcement determined that one of the visitors to the island that day was Jackson, who had stolen over 150 loggerhead turtle eggs in 2012. The next day, on July 7, Jackson was arrested trying to leave the island with a cooler full of sea turtle eggs. Jackson appeared to have wrapped the eggs with the intent to sell them. Loggerhead eggs now fetch as much as $25 per egg on the black market. Because of Jackson’s handling of the turtle eggs, they were no longer viable and were therefore destroyed. Sea turtles are long-lived and slow to reach maturity. Pressures from the illegal harvesting of eggs and the poaching of adults worsen the extinction risk faced by these animals. In Georgia, the loggerhead sea turtle is listed as “threatened” under the Endangered Species Act and is the most common sea turtle which nests on Sapelo Island.
United States Attorney Edward Tarver said, “After a prison sentence 3 ½ times longer than his first, this defendant should finally get the message that when you seek to profit by unlawfully exploiting our endangered species and national treasures, your next stop will be a federal prison.”
“This multi-agency investigation highlights the importance the U.S. Fish and Wildlife Service and the Georgia Department of Natural Resources place on protecting our nation's most imperiled species from unlawful harvest and illegal commercialization, and the effectiveness of the Lacey Act in implementing those protections," said Luis Santiago, Special Agent in Charge, Southeast Region, U.S. Fish and Wildlife Service’s Office of Law Enforcement. "This case and today’s sentencing demonstrate that those seeking financial gain at the expense of our protected wildlife resources will be caught and held accountable.”
“We appreciate the cooperation from the other agencies in bringing this case to a successful close,” said Colonel Eddie Henderson, director of Georgia DNR’s Law Enforcement Division. “I hope this sends a message that crimes that negatively impact wildlife, or any of our natural resources, won’t be tolerated in Georgia.”
This case was investigated by the United States Fish and Wildlife Service, the Georgia Department of Natural Resources, and the United States Probation Office. Assistant United States Attorney E. Greg Gilluly, Jr. prosecuted the case on behalf of the United States. Please direct any additional questions to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Tuscaloosa Man Gets 10 Years in Prison for Coercing and Inducing Child to Engage in Sexual ActivityRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Tuscaloosa man to 10 years in prison for sending cell phone texts to a minor child over nearly two years to coerce or induce her to engage in sexual activity, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Tuscaloosa County Sheriff Ron Abernathy.
U.S. District Judge Virginia Emerson Hopkins sentenced EARL WAYNE BABIN, 49, on one count of coercion and enticement. Babin pleaded guilty to the charge in July. As part of a plea agreement, government prosecutors recommended a 10-year prison sentence. Babin already is in custody. Once he completes his prison sentence, he must remain on supervised release for 15 years, according to the judge's order.
Babin admitted in his guilty plea that he had used hidden cameras and provided provocative lingerie for the child, then sent text messages urging her to try on the inappropriate undergarments so he could produce visual images. He conducted the exploitation between July 2012 and March 2014, when the child was less than 16 years old.
Babin admitted that he engaged in illegal sexual activity with the child and produced images of child pornography that involved her, according court documents.
The FBI and the Tuscaloosa County Sheriff's Office investigated the case, which Assistant U.S. Attorney Jacquelyn M. Hutzell prosecuted.
Tuna Fleet Companies to Pay over $1 Million in Civil Penalties and Perform Fleet-Wide Compliance Review to Settle U.S. Claims for American Samoa Oil SpillRead the Press Release
Tri-Marine Management Co., Tri-Marine Fishing Management and Cape Mendocino Fishing (Tri-Marine) have agreed to pay $1.05 million in civil penalties and to perform fleet-wide inspections and other corrective measures to resolve claims stemming from an October 2014 oil spill in American Samoa and related violations of spill prevention regulations, the Department of Justice and the Coast Guard announced today.
In its complaint, filed today along with the lodging of a consent decree in the U.S. District Court for the District of Hawaii, the United States alleges that the Tri-Marine companies are liable for the October 2014 oil spill from their 230-foot commercial tuna fishing vessel, the Capt. Vincent Gann, into Pago Pago Harbor in American Samoa and related violations of the Coast Guard’s spill prevention regulations. After the Capt. Vincent Gann returned to Pago Pago Harbor from a two-month fishing voyage, it struck two moored fishing vessels while maneuvering in the harbor on Oct. 16, 2014. The hull of the Capt. Vincent Gann was breached during the crash and at least 35 barrels of marine fuel oil flowed out of the bulbous bow into the water. It is illegal to store fuel in the bulbous bow.
The complaint further alleges the illegal oil storage was done to extend the duration of the fishing voyage and allow storage of a larger catch of fish. The extra fuel oil had been stored in two of the fish holds, but the oil was transferred out of the fish holds to the bulbous bow to make room for storage of tuna in those fish holds.
The complaint also alleges the vessel was equipped with unlawful piping configurations that tied the bilge water system into the fuel system and that the extra fuel originally was loaded into the vessel using an unauthorized method of pumping fuel oil with hoses over the top of the deck into open fish holds.
In addition to payment of the civil penalties, the consent decree requires Tri-Marine to perform inspections and corrective measures across its entire fleet of ten American Samoa-based vessels, including a top-to-bottom review and overhaul of all of the vessels’ oil handling practices, operator certifications, independent audits, increased reporting, and the engagement of a full-time consultant or in-house personnel focused on environmental and maritime compliance.
“This settlement sends a clear message to vessel owners and operators that they cannot put profits ahead of protection of the marine environment or compliance with the law,” said Assistant Attorney General John C. Cruden, for the Justice Department’s Environment and Natural Resources Division. “Tri-Marine will pay a significant penalty and conduct meaningful fleet-wide corrective measures for its release of oil into Pago Pago Harbor, a sensitive and valuable marine environment. We are grateful to our partner at the U.S. Coast Guard for their swift and diligent investigation of these violations.”
“Storage of oil in the bulbous bow has long been prohibited and poses obvious and serious risks to a vessel’s crew and the marine environment,” said Captain Shannon Gilreath, Sector Commander of the Coast Guard’s Sector Honolulu, which covers both American Samoa and Hawaii. “This enforcement action reinforces this point and emphasizes safety and pollution prevention measures within this fleet of vessels.”
Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. In addition, the Coast Guard has promulgated spill prevention regulations for vessels and other facilities under Section 311(j) of the Act. The penalty paid for this spill and the related spill prevention violations will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the District of Hawaii, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Texas Man Indicted for Distributing Methamphetamine in Greene CountyRead the Press Release
BIRMINGHAM -- A federal grand jury on Tuesday indicted a Texas man in connection with the illegal distribution of methamphetamine in Greene County, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
A two-count indictment filed in U.S. District Court charges ISACC PINEDO, 22, with conspiracy to distribute 500 grams or more of methamphetamine in Greene County between May 2015 and June 24, 2015. It also charges Pinedo with possessing with intent to distribute 500 grams or more of the illegal drug in Greene County on June 24.
The maximum penalty for both the conspiracy and the possession with intent to distribute charge is life in prison and a $10 million fine.
DEA and the 17th Judicial Circuit Drug Task Force investigated the case, which Assistant U.S. Attorney John B. Felton is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Tax Preparers Convicted of Preparing and Filing False Tax ReturnsRead the Press Release
ATLANTA - Frederick Jenkins and Willie Jenkins were convicted by a federal jury Monday, October 26, 2015, on charges that they conspired to prepare and file false federal tax returns that claimed over $1 million in tax refunds.
“The actions of these defendants reflected a willful disregard for our tax system,” said U.S. Attorney John Horn. “Our citizens will not tolerate tax preparers who abuse the system for their own financial gain, and tax cheats will be investigated by the Internal Revenue Service and, where appropriate, criminally prosecuted.”
“This verdict exemplifies IRS Criminal Investigation’s intense focus on the rigorous pursuit of tax refund fraud,” stated Special Agent in Charge, Veronica F. Hyman-Pillot. “These unscrupulous defendants thought they had devised a clever scheme which preyed on unsuspecting victims and benefited them financially. Return preparers cannot fraudulently steal public money and enrich their bank accounts at the expense of the United States Treasury and other taxpayers and not expect to go unpunished.”
“The Jenkins’ did a disservice to legitimate tax preparers who comply with Georgia Tax Law. We will continue to find and track others who seek to defraud the taxpayers of our state.” said Lynne Riley, State Revenue Commissioner, Georgia Department of Revenue.
According to U.S. Attorney Horn, the charges, and other information presented in court: Since 2006, brothers Frederick and Willie Jenkins owned and operated Global Tax Service LLC (GTS), a tax preparation business with multiple locations throughout the metropolitan Atlanta area, and in other states, including Alabama. During the tax years under investigation, 2008 through 2011, the Jenkins brothers prepared and filed false income tax returns for clients. The false items primarily consisted of fraudulent and fictitious business income and losses in order to inflate tax refunds.
For some clients, the Defendants made up a business that did not exist, and then falsified business expenses to make it appear that the business had lost money. For other clients with established businesses, the Defendants fraudulently added false business expenses. The fraudulent business and business expenses were added by the Defendants without the clients’ knowledge.
The end result was the same: The refunds were inflated. Higher refunds led to more money for the Defendants, who often took a percentage of the refund as their fee. Subsequently, when clients sought copies of their tax returns, Jenkins provided them with altered copies, or refused to give copies all together.
After a 5-day jury trial, the jury found Frederick Jenkins guilty on 11 counts and Willie Jenkins guilty on 7 counts. Both were indicted by a federal grand jury on May 20, 2014.
Sentencing for Frederick Jenkins and Willie Jenkins of Fairburn, Georgia, will be scheduled before United States District Judge Orinda D. Evans at a date to be determined.
This case is being investigated by the Internal Revenue Service Criminal Investigation, and the Georgia Department of Revenue.
Assistant United States Attorneys Bernita B. Malloy and Chris Bly are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Suffolk Heroin Dealer Pleads Guilty to Drug and Gun ChargesRead the Press Release
NORFOLK, Va. – Christopher Salkey, 31, of Suffolk, pleaded guilty today to charges of conspiracy to distribute heroin and possessing a firearm as a convicted felon.
In a statement of facts filed with the plea agreement, in the summer of 2012 up to May 2015, Salkey conspired with his father and two others to distribute heroin in Suffolk and Portsmouth. Each week Salkey (who has a previous conviction for selling narcotics) and his father would receive a significant quantity of heroin to which they would add a cutting agent and then cap it up for distribution. During the course of the conspiracy it is estimated they distributed at least eight kilograms of heroin. On May 20, 2015, the Suffolk Police Department and federal agents from the Drug Enforcement Administration (DEA) executed a search warrant at Salkey’s residence in Suffolk where they recovered a quantity of heroin and packaging material used for distribution. Additionally, agents also discovered a marijuana grow operation with 129 marijuana plants. Law enforcement later learned Salkey had hidden two firearms in the residence, which agents later recovered.
Salkey was charged by criminal complaint on Sept. 18, 2015. He faces a maximum penalty of life in prison and a mandatory minimum sentence of 10 years in prison when sentenced on Feb. 18, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr135.
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Statement by the U.S. Attorney's Office Following the Guilty Plea of Former U.S. House Speaker John Dennis HastertRead the Press Release
CHICAGO — This morning, JOHN DENNIS HASTERT, 73, of Plano, pleaded guilty in federal court to one count of illegally structuring cash withdrawals in order to evade financial reporting requirements. The Honorable U.S. District Judge Thomas M. Durkin scheduled a sentencing hearing for February 29, 2016, at 10:00 a.m.
The United States Attorney’s Office for the Northern District of Illinois issued this statement following the guilty plea:
“Now that Mr. Hastert has pled guilty, and the Court has accepted his guilty plea, the case will proceed to sentencing. As part of the sentencing process in this case, as in all cases, we will provide the Court with relevant information about the defendant’s background and the charged offenses, and the defendant will have an opportunity to do the same, so that the Court can impose an appropriate sentence taking into account all relevant factors in the case. We have no further comment about the matter at this time.”
Plea Agreement
St. Thomas Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
St. Thomas, USVI – On Wednesday, October 28, 2015, Michael A. Lewis, 36, pleaded guilty in District Court on St. Thomas to Possession of a Firearm by a Convicted Felon, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for March 3, 2016.
According to the plea agreement filed with the court, on June 23, 2015, Virgin Islands Police Department (VIPD) Officers attempted to conduct a field interview with Lewis who took off running from the officers. As Lewis was running from VIPD officers, a butt of a firearm was seen protruding from his front right pants’ pocket. Lewis was later apprehended in a residence where he discarded three firearms. VIPD officers recovered the firearms. Lewis is a convicted felon and not authorized to possess a firearm. He faces a maximum sentence of 10 years in prison and a $250,000 fine.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the VIPD. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Slidell Man Sentenced for over $355,000 in False Claims to the Deepwater Horizon Economic Claims CenterRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CASEY THONN, age 35, of Slidell, was sentenced today after previously pleading guilty to a two-count Bill of Information charging him with wire fraud in connection with fraudulent claims filed with the Deepwater Horizon Economic Claims Center (“DHECC”).
U.S. District Judge Stanwood R. Duval, Jr. sentenced THONN to serve 24 months in prison, to be followed by 3 years of supervised release. In addition to the term of imprisonment, THONN was ordered to pay restitution in the amount of $355,251, as well as a $200 special assessment.
According to court documents, THONN submitted multiple claims with the Seafood Compensation Program administered by the DHECC based on losses he allegedly sustained as result of the April 2010 oil spill. Subsequently, in early November 2012, the DHECC notified THONN that he was eligible to receive approximately $1,750.36 for these claims.
In turn, on December 3, 2012, THONN submitted Requests for Reconsideration of his original eligibility notices requesting his compensation be recalculated based on a false Federal tax return THONN provided to the DHECC. In that false submission, THONN claimed he received $156,000 of gross revenue from commercial shrimping sales in 2009. This fraudulent submission increased the defendant’s compensation from $1,750.36 to a total of $357,002.35 for these claims. Finally, in March 2013, THONN received a total of $357,002.35 from the DHECC which was caused by his fraudulent submissions.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. was in charge of the prosecution