Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 December 2015
Niagara Falls Man Charged with Assaulting A Probation OfficerRead 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 Monsuru Giwa, 24, of Niagara Falls, NY, was arrested and charged by criminal complaint with assaulting a federal officer. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on November 24, 2015, U.S. Probation Officers attempted to search the defendant’s Niagara Falls residence. An officer approached Giwa on the porch and directed the defendant to put his hands behind his back. As the officer attempted to place handcuffs on Giwa, he attempted to break free causing the officer to be pulled off the porch and onto the ground suffering leg lacerations Giwa then fled the scene.
The defendant made an initial appearance before U.S. Magistrate Judge Hugh B. Scott and is being detained.
The criminal complaint is the culmination of an investigation on the part of the United States Probation Department, under the direction of Anthony SanGiacomo and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.New Federal Veterans Treatment Court Program Begins Next Month on Fort HoodRead the Press Release
Beginning next month, qualified veterans charged with committing misdemeanors while on Fort Hood will be eligible to participate in a pilot program designed to provide an alternative to a federal conviction announced United States Attorney Richard L. Durbin, Jr.
The Fort Hood Federal Veterans Treatment Court, "Veterans Endeavor for Treatment and Support" or "VETS," will work to divert veterans with service-connected mental health or substance abuse disorders out of the court system and into enduring treatment solutions with the Department of Veterans Affairs.
This initiative will be supervised by the United States District Court for the Western District of Texas and run by United States Magistrate Judge Jeffrey C. Manske with the support of United States Attorney Durbin.
This new program at Fort Hood is believed to be the first of its kind on a U.S. Army installation. It will provide a defendant-veteran whose deployments led to a diagnosis of post-traumatic stress manifesting in substance abuse which results in a DWI/DUI the opportunity to avoid a federal conviction for that offense if he or she completes a 12-18 month treatment and supervision program with the Veterans Affairs and the Court.
VETS requires enrollees to engage in intensive multi-stage professional counseling and treatment for issues involving substance abuse, mental health, disability, finances, and other difficulties, including those related to their military service. They must also abide by strict rules of conduct, follow rigorous treatment plans, and attend mandatory scheduled hearings before Judge Manske.
The treatment court model also builds upon the Department of Justice 'Smart on Crime' initiative to bolster prevention and reentry efforts to deter crime and reduce recidivism
“This initiative, directed at veterans, will serve justice by directing them to available resources. We especially hope to provide alternatives for criminal conviction for veterans whose military service may have contributed to their current conditions and conduct,” stated United States Attorney Richard L. Durbin, Jr. “We hope this program will lead the way for similar initiatives to develop in other federal jurisdictions near major military bases where veterans congregate.”
VETS is a joint partnership carried out by the United States District Court, United States Attorney's Office, and Pretrial Services Office for the Western District of Texas, the Department of Veterans Affairs, U.S. Army III Corps and Fort Hood, and the Military Veteran Peer Network operating with "Bring Everyone in the Zone."
The initiative was inspired by examples of similar programs in state jurisdictions and the Department of Justice. More than 160 of these courts exist in state and federal jurisdictions nationwide.
Navajo Man Pleads Guilty to Federal Arson ChargeRead the Press Release
ALBUQUERQUE – Derek C. Toledo, 28, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an arson charge under a plea agreement with the U.S. Attorney’s Office.
Toledo was arrested in May 2015, on a criminal complaint charging him with arson and was indicted on that same charge on June 9, 2015. According to court filings, Toledo set fire to the residence of a Navajo woman and her three children on May 9, 2015, on the Navajo Indian Reservation in San Juan County, N.M., following an argument.
During today’s proceedings, Toledo pled guilty to the indictment and admitted that on May 9, 2015, he maliciously set fire to the residence of his former girlfriend and her two children. Toledo admitted using a hand lighter to ignite charcoal lighter fluid he had sprayed inside the home and onto flammable items he had thrown on the floor.
At sentencing, Toledo faces a statutory maximum penalty of life in federal prison. Toledo is in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Milton Man Convicted of Child Exploitation CrimesRead the Press Release
PENSACOLA, FLORIDA – Yesterday afternoon, a federal jury convicted Milton resident Robert F. Matlack, 79, of attempted commercial sex trafficking and attempted enticement of a minor for sex. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in July 2015, Matlack communicated online with someone who turned out to be an undercover law enforcement officer. The purpose of Matlack’s contact was to meet a 12-year-old child for sexual activity. During trial, the jury heard evidence of Matlack e-mailing and text messaging his desires for a 12-year-old child. Matlack was arrested when he arrived at the arranged meeting location in Milton, Florida, where he thought he would meet a 12-year-old child. He possessed $180 to pay for the illicit sex acts. Also seized from his vehicle were blister packs of Viagra.
For the attempted commercial sex trafficking charge, Matlack faces a minimum of 15 years in prison and a maximum of life in prison. For the attempted enticement of a minor charge, Matlack faces a minimum of 10 years in prison and a maximum of life in prison. The sentencing hearing is scheduled for February 23, 2016, at 12:30 p.m.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, Pensacola Police Department, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Middlesex County, New Jersey, Man Convicted of Trying to Import More Than 500 Grams of Heroin into the United StatesRead the Press Release
NEWARK, N.J. – A Sayreville, New Jersey, man was convicted today by a federal jury for his role in a conspiracy to import heroin from India into the United States, U.S. Attorney Paul J. Fishman announced.
Adolphus Nwokedi, 47, was convicted of an indictment charging him with one count of conspiring with others to import 100 grams or more of heroin. He was convicted following a three-day trial before U.S. District Judge Esther Salas in Newark federal court. The jury deliberated for about three hours before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
From Oct. 2013 through Dec. 2013, Nwokedi conspired with an individual in India to ship a parcel containing heroin into the United States. In return for $3,000, Nwokedi agreed to accept the package at his business address in Newark and then deliver it to another conspirator living in Bronx, New York. On Dec. 11, 2013, customs officers at the John F. Kennedy International Airport mail facility intercepted the parcel and found 524 grams of heroin. On Jan. 2, 2014, agents with Homeland Security Investigations conducted a controlled delivery of the parcel. Nwokedi personally accepted the parcel in Newark and was subsequently arrested.
The conspiracy count carries a mandatory minimum of five years in prison and a maximum potential penalty of 40 years in prison. Sentencing is set for March 21, 2016.
U .S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark
Mexican National Sentenced for Meth DistributionRead the Press Release
POCATELLO – Carlos Beltran-Vega, 58, a Mexican national most currently living in Rigby, Idaho, was sentenced yesterday by Chief U.S. District Judge B. Lynn Winmill to 135 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Beltran-Vega pleaded guilty to the charge on August 26, 2015.
According to the plea agreement and sentencing hearing, On February 16, 2015, law enforcement received information that Beltran-Vega , along with co-Defendants, had a large amount of methamphetamine in a cooler at a hotel in Idaho Falls, Idaho. Officers conducted surveillance on the hotel room and observed Beltran-Vega, along with another man exit the hotel room and get into a vehicle. The two men had possession of a red cooler when they went from the hotel room into the vehicle. A short time later the vehicle was stopped, and a canine alerted to the presence of drugs in the cooler. Methamphetamine was found in the cooler. A subsequent search of the hotel room revealed a larger amount of methamphetamine.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with, the Bonneville Country Sheriff’s Office, the Idaho Falls Police Department, and the Nampa Police Department. The case was prosecuted jointly by the attorneys from the United States Attorney’s Office and the Bonneville County Prosecutor’s Office. The remaining defendants are scheduled to be sentenced on December 21.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Man Sentenced to 20 Months in Prison for Conspiracy to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Kurt Reovan, 37, of Georgia, to 20 months in prison and three years of supervised release for conspiracy to distribute marijuana, United States Attorney Ronald W. Sharpe announced.
On June 8, 2015, Reovan pleaded guilty to conspiracy to distribute marijuana. Court records show that on February 13, 2015, Reovan and Amari Stroy, 23, of Union City, Georgia, were apprehended at the Cyril E. King Airport on St. Thomas with approximately 9.9 kilograms of marijuana in a checked suitcase. Reovan brought the marijuana to St. Thomas on a flight that originated in Atlanta, Georgia. On September 17, 2015, Stroy was sentenced to eight months in prison and one year of supervised release for possession of marijuana.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted by Assistant United States Attorney David White.
Lynn Man Pleads Guilty to Charges of Naturalization, Passport, and Social Security FraudRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in U.S. District Court in Boston in connection with his attempts, following an illegal entry to the United States approximately 25 years ago, to gain citizenship and remain in the country.
Princehakeem Awolesi, 48, pleaded guilty to illegally obtaining United States citizenship and a U.S. passport, and using a false Social Security number. Awolesi was arrested in August 2015 and charged with violating various federal immigration and social security laws. U.S. District Court Judge Indira Talwani scheduled sentencing for March 17, 2016.
In 2005, as part of his application for naturalization, Awolesi submitted a false birth certificate and made numerous false statements to the officials deciding whether he qualified for citizenship, including his use of a prior identity. Awolesi was granted citizenship in 2005 and applied for a passport the same year, again concealing his use of another identity. Later, when applying for a replacement passport, Awolesi used a social security number he had obtained by making false statements to the Social Security Administration.
As a result of the conviction on the citizenship charge, Awolesi’s United States citizenship will be revoked.
The charges of naturalization and passport fraud each provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of falsely obtaining a social security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Criminal Division.
Johnson County Man Sentenced to 17+ Years for Child PornRead the Press Release
KANSAS CITY, KAN. – A Johnson County man was sentenced Thursday to 210 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
Jacob N. Hilton, 29, Gardner, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he traded child pornography over the Internet with a man in Australia who was arrested by the Queensland Police during a child pornography investigation. The man’s records showed he had been in contact with Hilton and the Australian police passed the information on to investigators in Kansas. Investigators obtained a warrant and found evidence in Hilton’s Gmail account that he sent child pornography to the Australian man.
Grissom commended the Queensland Police, the FBI and Assistant U.S. Attorney for their work on the case.
Jackson Man Sentenced to Prison for Bankruptcy FraudRead the Press Release
Jackson, Miss - William David Dickson, aka Butch Dickson, 59, of Jackson, was sentenced on Thursday, December 10, 2015, by U.S. District Court Judge Tom S. Lee, to 57 months in federal prison followed by three years of supervised release for the fraudulent receipt of over $9 million and concealment of a bank account containing funds belonging to the bankruptcy estate of Community Home Financial Services, Inc., announced U.S. Attorney Gregory K. Davis, Acting U.S. Trustee Henry G. Hobbs, Jr. of Region 5, and FBI Special Agent in Charge Donald Alway.
Dickson placed Community Home Financial Services, Inc. in bankruptcy on May 23, 2012 in the Southern District of Mississippi. Dickson devised a scheme and artifice to defraud the bankruptcy court and the Chapter 11 trustee by fraudulently causing funds of the debtor’s bankruptcy estate to be transferred to multiple accounts outside of the country.
The Chapter 11 Trustee, Kristina M. Johnson, along with the U.S. Trustee’s Jackson, MS office referred this matter to the U.S. Attorney’s office. The investigation was conducted by the FBI, with assistance from the Chapter 11 Trustee. The case was prosecuted by Assistant U.S. Attorney Scott Gilbert.
Illinois Man Pleads Guilty to Defrauding Foreign Investor of $500,000Read the Press Release
ALEXANDRIA, Va. – Thomas A. Kopec, 48, of New Lenox, Illinois, pleaded guilty today to wire fraud for cheating a Panamanian investor out of $500,000.
In a statement of facts filed with the plea agreement, Kopec admitted to soliciting $500,000 from the victim for a purported investment vehicle for purchasing securities and acquiring a bank. Kopec took steps in pursuing the purported investment in order to lull the victim into thinking the investment was proceeding as planned. In truth, Kopec misappropriated the moneys and spent them on personal and other expenses at retail establishments including Best Buy, Wal-Mart, and the Apple Store. Kopec started the scheme in Illinois, but relocated it to the Eastern District of Virginia, and caused the issuance of interstate wires originating in the Eastern District of Virginia in order to obtain and misappropriate the victim’s money.
Kopec was indicted by a federal grand jury on June 5, 2014. The indictment was placed under seal until Kopec’s arrest earlier this year. Kopec faces a maximum penalty of 20 years in prison when sentenced on March 4, 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 Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Kosta S. Stojilkovic is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-204.
Idaho Falls Man Pleads Guilty to Sexual Exploitation of Minor ChildRead the Press Release
POCATELLO - Justin Dixson, 42, of Idaho Falls, Idaho, pleaded guilty yesterday to sexual exploitation of a minor child, U.S. Attorney Wendy J. Olson announced. Dixson was indicted by a federal grand jury in Pocatello on May 27, 2015.
According to the plea agreement, Dixson admitted that between July 2014, and February 2015, law enforcement agents were able to download 27 files of child pornography from his computer. Additional images of child pornography were located on Dixson’s computer hardware when his residence was searched pursuant to a search warrant in April 2015. Among those images were images of a minor child being sexually abused by Dixson, and Dixson admitted to taking pictures of the abuse. In total, law enforcement discovered approximately 1,712 suspected images and videos of child pornography on the defendant’s computer. The National Center for Missing and Exploited Children reported that of these, 438 images and 29 videos depicted children previously identified to law enforcement as victims of sexual abuse and exploitation.
The charge of sexual exploitation of a minor child is punishable by up to 30 years in prison, a maximum fine of $250,000.00, and up to life supervised release.
Sentencing is set for March 2, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Idaho Internet Crimes Against Children Task Force (ICAC), Idaho Falls Police, U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Marshals Service (USMS).
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.”
Husband and Wife Sentenced in Witness Tampering CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Mindy Konopski, 34, who was convicted of obstruction of a court order, and her husband, Andrej Konopski, 29, both of Savona, NY, who was convicted of witness tampering, were each sentenced to six months in prison and six months home detention by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the couple harassed and intimidated witnesses in the federal prosecution of Mindy Konopski’s brother Jonathan Fernandes. He was convicted after a jury trial in August 2015 of multiple drug charges relating to the manufacture and distribution of methamphetamine, as well as witness tampering. Mindy and Andrej Konopski confronted an individual they believed was cooperating against Fernandes in a threatening and intimidating matter and obtained a false statement from that individual that was later used in court documents filed by Fernandes. Jonathan Fernandes will be sentenced on January 8, 2016.
Today’s sentencings are the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, and the Steuben County Sheriff’s Department, under the direction of Sheriff David Cole.
Gun Charge Filed Against Allentown ManRead the Press Release
PHILADELPHIA – Victor Morales, 30, of Allentown, PA, was charged yesterday by indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on June 12, 2015, Morales was in possession of a Smith & Wesson, Model SW40GVE, .40 caliber semi-automatic pistol, with a live round of .40 caliber ammunition in the chamber, and a magazine loaded with 13 live rounds of .40 caliber ammunition.
If convicted, Morales faces a maximum term of ten years in prison, up to three years of supervised release, a maximum fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Eric A. Boden.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gila River Woman Sentenced to Federal Prison for Selling MethamphetamineRead the Press Release
PHOENIX – On Dec. 10, 2015, Delphine Corrine Morgan, 37, of Blackwater, Ariz. and a member of the Gila River Indian Community, was sentenced by U.S. District Judge Steven P. Logan to 92 months in prison, followed by a term of three years of supervised release. Morgan previously pleaded guilty to possession with intent to distribute less than 50 grams of a mixture or substance containing methamphetamine.
According to court documents, on March 13, 2015, Morgan sold less than 50 grams of a mixture or substance containing a detectable amount of methamphetamine to an undercover officer at her residence located on the Gila River Indian Community. Morgan had sold methamphetamine to this same undercover officer on one prior occasion.
The investigation in this case was conducted by the Gila River Police Department and the Bureau of Indian Affairs. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-2015-0330-PHX-SPL
RELEASE NUMBER: 2015-121_Morgan
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Property Manager Sentenced to 41 Months in Prison for Stealing over $380,000 from Employer and ClientsRead the Press Release
WASHINGTON – Lorraine Cyr, 58, was sentenced today to 41 months in prison for embezzling over $380,000 from her employer and properties that she managed, announced U.S. Attorney Channing D. Phillips, Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Cyr, of Palm Bay, Fla., pled guilty in July 2015 in the U.S. District Court for the District of Columbia to one count each of wire fraud and income tax evasion. She was sentenced by the Honorable Senior Judge Royce C. Lamberth. Following her prison sentence, Cyr will be placed on three years of supervised release. She also must pay $380,537 in restitution to a property management company and various other victims of her scheme, as well as $96,112 to the IRS. She also must pay a forfeiture money judgment in the amount of $342,917.
According to a statement of offense submitted at the plea hearing, Cyr worked from 2001 until 2009 for a property management company, referred to in court documents as “Property Management Company A,” in Washington, D.C. She was vice president of operations during her last four years of employment, handling duties such as management of payroll, bank accounts, budgeting, invoicing, and tax preparation for the company and its clients. The clients consisted largely of cooperative and condominium apartment buildings in the District of Columbia.
In 2009, Cyr started her own property management company, Lorraine Cyr Management Group, Inc., also in Washington, D.C., in which she performed similar duties for various clients, including some who transitioned to her new firm. In her new role, she had virtually unfettered discretion to manage the business affairs of her clients, who granted her access to bank accounts to manage their operations and expenses.
Between July and November of 2009, prior to resigning from “Property Management Company A,” Cyr embezzled $37,620, which she used for personal purposes, including spending at casinos and various retailers. Then, between March 2010 and April 2011, while at her own firm, she stole $342,917 in funds from eight clients. She used the money for expenses such as spending at casinos, hotels, amusement parks, clothing stores, restaurants, and other retailers.
The tax charge stems from Cyr’s evasion of income taxes on the money that she was stealing, as well as the legitimate income that she was earning, during the course of her scheme.
In announcing the sentence, U.S. Attorney Phillips, Special Agent in Charge Jankowski and Chief Lanier commended the work of those who investigated the case from IRS-CI and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Thomas Swanton and Anthony Saler, who handled forfeiture issues; former Assistant U.S. Attorney Mary Chris Dobbie; Paralegal Specialist Tasha Harris; Legal Assistant Angela Lawrence, and former Paralegal Specialists Heather Sales and Nicole Wattelet. Finally, they expressed appreciation for the work of Trial Attorney Jeffrey McLellan, of the Department of Justice’s Tax Division, who assisted on the tax matter, and Assistant U.S. Attorney David A. Last, who investigated and prosecuted the case.
Former President of Investment Services Company Indicted on Charges That He Stole over $1 Million from ClientsRead the Press Release
WASHINGTON – Brian J. Ourand, 54, the former president of a company that provides financial services and investment advice, has been indicted by a federal grand jury on charges that he embezzled more than $1 million from his clients’ bank and credit card accounts.
The indictment was announced today by U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Ourand, formerly of Washington, D.C. and Chicago, was arrested on Dec. 8, 2015, by the FBI in Chicago. He made his first appearance later that day in the U.S. District Court for the U.S. District Court for the Northern District of Illinois and was released pending further proceedings. The indictment, which was unsealed today, was returned on Dec. 3, 2015, in the U.S. District Court for the District of Columbia, where Ourand is to appear on Dec. 21, 2015.
The indictment charges Ourand with two counts of mail fraud, nine counts of wire fraud, two counts of aggravated identity theft, and four counts of first-degree theft. It also includes a forfeiture allegation seeking all proceeds from the crimes.
According to the indictment, Ourand began working for the Washington D.C.-based financial services company in 1986, and later became a vice president and eventually president of the firm. The company terminated his employment in August of 2011.
As alleged in the indictment, Ourand and the company provided advisory and financial management services to high net-worth individuals, most of whom were current and former professional athletes. Among the services they provided were paying invoices and bills, coordinating tax preparation, and providing estate planning on behalf of individual clients. The charges involve Ourand’s activities involving four clients, all of whom were current or former professional athletes. According to the indictment, beginning as early as May of 2003, and continuing through July of 2011, Ourand schemed to embezzle money from these clients.
The indictment alleges that Ourand diverted at least $1 million in total funds from the clients’ bank accounts and credit card accounts to himself and for the benefit of those close to him. It also alleges that Ourand sought to conceal his embezzlement by generating false documentation in support of purported business-related and other authorized expenses.
Among other things, the indictment alleges, Ourand used the stolen money to pay for hotel stays, meals at restaurants, retail purchases, gym memberships, and other expenses.
The Securities and Exchange Commission has a separate case pending against Ourand that is awaiting administrative proceedings. The SEC charged Ourand with fraud.
Charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
In announcing the indictment, U.S. Attorney Phillips and Assistant Director in Charge Abbate commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorney Kevin Lowell, also of the Asset Forfeiture and Money Laundering Section; Paralegal Specialist Tasha Harris; Legal Assistant Angela Lawrence, and former Paralegal Specialist Heather Sales. Finally, they commended the work of Assistant U.S. Attorney David A. Last, who is prosecuting the case.
Former New York City Corrections Officer Pleads Guilty to Multimillion Dollar Tax Refund ConspiracyRead the Press Release
A Middle Island, New York resident pleaded guilty today in the U.S. District Court for the Eastern District of New York to one count of conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Rodney Chestnut, a retired corrections officer for the New York City Department of Corrections, pleaded guilty to count one of the pending indictment, which alleged that between 2008 and 2012, he participated in a scheme to submit false tax returns seeking fraudulent income tax refunds in excess of $3.4 million to the Internal Revenue Service (IRS). According to the indictment, Chestnut worked with Clive Henry, a former IRS employee in the business of preparing tax returns, and another individual, to recruit clients to this scheme, which involved using fraudulent IRS Forms 1099-OID to falsely claim refunds of taxes that never paid over to the IRS. The indictment alleged that Chestnut, Henry and the other individual collected fees from clients based on a percentage of the refunds received, and supplied the clients with correspondence containing false and frivolous claims to send to the IRS in response to IRS warning letters regarding the false tax returns.
In 2013, a federal court permanently enjoined Chestnut from promoting a tax fraud scheme involving fraudulent Forms 1099-OID and from preparing tax returns for anyone other than himself.
U.S. District Judge Kiyo A. Matsumoto scheduled sentencing for May 12, 2016. Chestnut faces a statutory maximum sentence of five years in prison and a fine of up to $250,000, or twice the loss from the offense. Henry pleaded guilty to conspiracy to defraud the United States on Nov. 17. His sentencing is set for March 23, 2016.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Erin Pulice, Mark Kotila and Jeffrey A. McLellan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Lakewood Body Shop Owner Sentenced to 10 Years in Prison for Leadership Role in Meth Distribution ConspiracyRead the Press Release
A 45-year-old Lakewood, Washington body shop owner was sentenced today in U.S. District Court in Tacoma to ten years in prison for his leadership role in a Mexico based drug trafficking organization. JAMES E. ROBERTS, who owned ‘Restore and More’ body shop, distributed methamphetamine for a drug trafficking organization operated by Enrique Palomera, an extremely dangerous Mexican-based drug dealer. Palomera remains in Mexico awaiting extradition. At sentencing U.S. District Judge Robert J. Bryan imposed five years of supervised release to follow the prison term.
According to filings in the case, ROBERTS not only sold methamphetamine for the group, he supervised some of his employees who also sold meth. Highlighting the danger of the meth ring, prosecutors noted that one of the co-conspirators is missing and presumed dead after a load was seized by law enforcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Lakewood Police Department, with assistance from the Drug Enforcement Administration and the FBI. The case was prosecuted by Assistant United States Attorneys Michael Dion and Amy Jaquette.
Former Fultonville, New York Resident Pleads Guilty to Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK - David L. Frisby, 65, of Kiln, Mississippi, pled guilty yesterday to one count of conspiracy to commit wire fraud in connection with a scheme to defraud scrap metal brokerage firms. The guilty plea included his admission to soliciting contracts for the disposal of batteries and other metal waste under false pretenses, announced United States Attorney Richard S. Hartunian and Environmental Protection Agency (EPA) Criminal Investigations Division Special Agent in Charge Vernesa Jones-Allen.
Frisby, formerly of Fultonville, New York, admitted that he and his co-conspirators falsely held themselves out to be representatives of a scrap metal recycling firm that was authorized by the Environmental Protection Agency to dispose of metal waste by shipping it to Korea, and that they defrauded business and individuals by charging them for recycling services that were never provided. In reality, Frisby and his co-conspirators were not authorized by the EPA to provide scrap metal recycling services and never intended to provide such services to the victims.
To further the scheme, Frisby, who formerly served as the Chief Executive Officer of D & L Heritage Enterprises, Inc. (D & L Heritage), a New York State domestic business corporation, until its dissolution in 2009, provided his co-conspirators with D & L Heritage incorporation documents that were fraudulently altered and e-mailed to victims during the solicitation process. Victims of the fraud scheme transferred at least $154,206.00 in fraud proceeds to bank accounts maintained by Frisby, who retained a portion of the funds for his personal benefit and transferred the remainder to his co-conspirators.
At sentencing on April 27, 2016 at 10:00 a.m. in Syracuse, Frisby faces a maximum term of incarceration of 20 years and a maximum fine of $250,000. Additionally, the plea agreement requires Frisby to pay $144,216.00 in restitution to victims of the fraud scheme, if approved by the Judge.
The case was investigated by the U.S. Environmental Protection Agency, Criminal Investigations Division. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd.Former Cay Clubs Chief Executive Officer Convicted After 5-Week Trial of Multiple Counts of Bank Fraud and Obstruction of the U.S. Securities and Exchange CommissionRead the Press Release
The former Cay Clubs Chief Executive Officer was convicted today after a five week trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
Fred Davis Clark, Jr., a/k/a Dave Clark, 57, formerly of Monroe County, was convicted of three counts of bank fraud, and three counts of making a false statement to a financial institution, all in connection with a $300 million fraud scheme involving the sale of vacation rental units involving Cay Clubs Resorts and Marinas (Cay Clubs), to approximately 1,400 investors in the Florida Keys and elsewhere. Clark also was convicted of obstruction of the U.S. Securities and Exchange Commission (SEC), in connection with the SEC’s efforts to investigate his conduct related to Cay Clubs.
U.S. Attorney Wifredo A. Ferrer stated, “We will not stand on the sidelines and allow individuals to defraud investors and financial institutions. As this case demonstrates, the U.S. Attorney’s Office will work with its law enforcement partners to hold those accountable who use deceptive practices to satisfy their personal desires for wealth.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “Today’s conviction is a victory for the victims who were caught up in Mr. Clark’s tangled financial web of lies. The defendant preyed upon trusting investors and then stole their hard earned money. This case is another example of our commitment to pursue individuals who make fraudulent representations with the intent of deceiving others.”
According to evidence submitted in court, Clark was the Chief Executive Officer of Cay Clubs, which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs raised more than $300 million from investors by promising to develop dilapidated properties into luxury resorts, and promising investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Evidence at trial showed that, in reality, Cay Clubs never developed the properties it had promised to investors and that they remained in a dilapidated condition.
Evidence showed that by at least September 2006, Cay Clubs experienced serious financial difficulties and was unable to meet its commitments. In order to attempt to meet Cay Clubs’ financial obligations and to obtain funds for himself, evidence at trial showed that Clark engaged in a serious of fraudulent mortgage transactions totalling more than $20 million worth of bank loans. According to documents and testimony introduced at trial, during these sham transactions, Clark sold on paper units that Cay Clubs had acquired at a lower price, to himself, but at a dramatically higher price, while causing various lending institutions to fund the transactions. Clark directed his administrative assistant and his bookkeeper to forge signatures on loan documents and falsely notarize mortgage paperwork to make it appear that family members, his significant other, and other insiders listed on paperwork, were in fact executing the documents. In reality, Clark was providing the deposits and down payments, directing his subordinates to execute the loan documents, and then using the proceeds of the transactions to fund Cay Club’s operations and for his own personal benefit. The financial institutions that funded the fraudulently obtained loans were insured by the FDIC.
Evidence at trial showed that while Cay Clubs continued to experience significant financial difficulties, Clark lived a lavish lifestyle, extracting more than $22 million from the operations of Cay Clubs between 2005 and 2007, including the use of multiple waterfront homes, yachts and aircraft for his personal benefit.
After the collapse of Cay Clubs, the SEC began an investigation into alleged securities fraud at Cay Clubs. According to evidence and transcripts presented in court, Clark thereafter engaged in conduct aimed at concealing the location of assets under his control, including by providing false sworn testimony before the SEC in May 2011. In March 2013, after the SEC filed a civil fraud action against him, Clark transferred more than $2 million to a corporate account he controlled in Honduras. After this transfer, U.S. law enforcement and authorities in Honduras were able to obtain a court order freezing these funds.
Clark was expelled from Panama in June 2014, and returned to the United States by Panamanian authorities at the request of U.S. law enforcement in connection with the charges set forth in the indictment.
In related cases, former Cay Clubs executives Barry J. Graham, 59, and Ricky Lynn Stokes, 54, both of Ft. Myers, Florida pleaded guilty to conspiracy to commit bank fraud, in connection with the scheme to defraud Cay Clubs investors. Graham, who was Director of Sales, was sentenced on March 30, 2015, and Stokes, who was the Director of Investor Relations, was sentenced on March 24, 2015. Each was sentenced to 60 months’ imprisonment, and was ordered to pay restitution of $163,530,377.21 to numerous individual and financial institution victims.
Sentencing in this matter is set for February 25, 2016 before United States District Judge Jose E. Martinez in Key West at the Sidney L. Aronovitz Federal Courthouse.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance of the SEC’s Miami Regional Office. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy, Thomas A. Watts-FitzGerald and Alison Lehr, and Special Assistant U.S. Attorney Michael Padula. Mr. Ferrer also commended the efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Key West Regional Office, for its assistance with this matter.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Former 36th District Court Officer Sentenced to Prison for Theft of FundsRead the Press Release
A 34 year old Detroit man was sentenced yesterday to three years in prison for stealing tens of thousands of dollars in funds that had been collected on civil judgments, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Marlon Cleveland, a former Court Officer for the 36th District Court in Detroit, Michigan was sentenced by U.S. District Judge Gershwin A. Drain.
Cleveland pleaded guilty in June to theft from a program receiving federal funds and mail fraud. The convictions arose from a pattern of thefts committed by Cleveland in 2013 and 2014. During that time Cleveland victimized more than 30 different individuals and businesses by demanding that they make payments on outstanding court judgments and then keeping those funds for himself.
U.S. Attorney McQuade stated, “Anyone who abuses a position of trust to steal from our courts or to victimize members of the public should expect to face serious penalties under the law.”
Special Agent in Charge Gelios stated, "Mr. Cleveland used his position with the court to defraud both Wayne County, and its residents, all while enriching himself. Individuals who attempt to corrupt a system like this will not be tolerated."
Chief Judge Nancy M. Blount of the 36th District Court stated, “The Court cooperated fully with the investigation and prosecution because this behavior will not be tolerated. We support Judge Drain’s sentence and hope that it will serve as a deterrent to this type of conduct.”
The underlying case was investigated by the Federal Bureau of Investigation in collaboration with the Michigan Attorney General's Public Integrity Unit.
Fairfax Station Man Sentenced to 12 Years for Heroin and Oxycodone CrimesRead the Press Release
ALEXANDRIA, Va. – Michael Ryan Martin, 32, of Fairfax Station, was sentenced today to 144 months in prison, followed by three years of supervised release, for conspiracy to distribute heroin and oxycodone.
According to court documents, from approximately Aug. 14, 2014, until June 1, 2015, Martin illegally distributed oxycodone tablets and utilized the proceeds from these sales to purchase heroin, a portion of which he sold to other individuals. On Dec. 3, 2014, Martin distributed heroin to Christopher Ritchie, a 30-year old resident of Aldie. Ritchie injected himself with a portion of the heroin that Martin provided and subsequently died the same day. The cause of Ritchie’s death was later determined to be heroin poisoning.
Martin pleaded guilty on Sept. 17, 2015. Today the court determined Martin significantly impeded law enforcement officials’ investigation of Ritchie’s death by providing false statements to detectives from the Loudoun County Sherriff’s Office. The court also ordered Martin to forfeit $71,840, which represented the illegal proceeds that Martin obtained from the offense.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Michael L. Chapman, Loudoun County Sheriff; and Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Special Assistant U.S. Attorneys Neal Christiansen and Joshua Champagne, and Assistant U.S. Attorney Kosta Stojilkovic 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-257.
FBI Arrests O.C. Man who Allegedly Took over $1.2 Million from Distressed Homeowners in Bogus Loan Modification SchemeRead the Press Release
SANTA ANA, California – An Orange County man who allegedly bilked distressed homeowners with false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages – or even completely eliminating their loans – was arrested this morning on federal fraud charges by Special Agents with the FBI.
Antonio Marquette, 56, was arrested without incident at his residence in the community of Midway City. Marquette is expected to be arraigned on a 12-count indictment this afternoon in United States District Court in Los Angeles.
According to the 12-count indictment, which was returned on Wednesday by a federal grand jury in Santa Ana and was unsealed upon this morning’s arrest, Marquette operated Bolsa Marketing Group in Garden Grove in 2010 and 2011 and allegedly charged homeowners up to $70,000 in cash for services that simply were not rendered.
Through Bolsa Marketing, Marquette allegedly ran a scheme that targeted distressed homeowners and induced them to pay up-front fees to obtain mortgage relief services. The indictment alleges that Marquette operated the scheme by “falsely promising homeowners mortgage loan modifications that would substantially reduce their mortgage payments, avoid foreclosure, or eliminate their mortgage loans entirely.”
As part of the scheme, Marquette allegedly made various promises to homeowners, including making guarantees that he could reduce their outstanding debt to 25 percent of the loan balance in only four months. Marquette also sent fraudulent checks to “pay off” mortgages and filed bogus documents county recorders offices, according to the indictment.
“Mr. Marquette is charged with preying on vulnerable homeowners who seemingly would do anything to avoid foreclosure,” said United States Attorney Eileen M. Decker. “While Marquette took steps to make it appear he working on behalf of homeowners, he in fact did nothing to help them, and many victims lost their homes.”
The indictment alleges that Marquette took in more than $1.2 million from victim-homeowners, most of whom were members of Vietnamese communities in Southern California, the Bay Area and Houston. However, investigators believe there may be additional victims who have not yet been identified. Members of the public who have information about Marquette’s scheme or believe they may be a victim of the scheme are encouraged to call the FBI’s Los Angeles Field office at (310) 477-6565.
The indictment charges Marquette with 10 counts of mail fraud, one count of wire fraud and one count of money laundering. These charges each carry a statutory maximum penalty of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The case against Marquette is the product of an ongoing investigation by the Federal Bureau of Investigation.
Ephrata, Washington Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kenneth Brown, age 31, of Ephrata, Washington, was sentenced today after having previously pled guilty on September 3, 2015 to Distribution of Child Pornography. United States District Court Judge Thomas O. Rice sentenced Brown to a five year term of imprisonment, to be followed by a fifteen year term of court supervision after he is released from Federal prison. In addition, Judge Rice ordered Brown to forfeit to the United States numerous digital items that he used to store and distribute child pornography and to pay $500 in restitution to one of the victims of his crime. Brown will also be required to register as a sex offender.
According to information disclosed during the court proceedings, Brown was using a Peer to Peer file sharing account to share and distribute child pornography images over the Internet. Undercover law enforcement agents located child pornography files Brown was making available for download and later obtained a federal search warrant for Browns’ residence. On March 11, 2014, Homeland Security Investigation agents, along with officers from the Ephrata Police Department, executed a federal search warrant at Browns’ residence and seized Browns’ digital devices that he used to store and distribute child pornography. A forensic examination of Browns’ personal computer revealed 1,298 child pornography images and numerous videos of child pornography.
Michael C. Ormsby stated, “I commend the Ephrata Police Department and Homeland Security Investigations for their efforts in successfully investigating this case. Prosecuting offenders who distribute child pornography is one of the top priorities of the United States Attorney’s Office for in the Eastern District of Washington. This Office, together with its law enforcement partners, Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations and the Ephrata Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Enginerring Officers Charged in Scheme to Cover up Oil Discharges from Cargo VesselRead the Press Release
GREENVILLE - A federal grand jury in Greenville, North Carolina has returned a nine-count indictment charging two engineering officers employed by Oceanfleet Shipping Limited with crimes relating to the illegal discharge of oily wastes directly into the sea, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and United States Attorney Thomas G. Walker for the Eastern District of North Carolina. Oceanfleet Shipping Limited is a Greek shipping company that operates the cargo carrier M/V Ocean Hope. The two engineering officers indicted are the vessel’s Chief Engineer, Rustico Yabut Ignacio, 65, of the Philippines; and the Second Engineer, Cassius Flores Samson, 51, of the Philippines.
According to the indictment, in 2015, Samson bypassed pollution prevention equipment with an unauthorized hose connection, or “magic pipe,” to discharge oil sludge generated by the M/V Ocean Hope directly into the sea. Samson also ordered crewmembers on numerous other occasions to pump oily mixtures from the vessel’s bilges into the sea using the ship’s General Service Pump rather than processing these mixtures through the vessel’s pollution prevention equipment.
The operation of marine vessels like the M/V Ocean Hope generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. To hide the illegal discharges, Ignacio and Samson allegedly maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel. The oil record book also contained false entries stating that pollution prevention equipment had been used when it had not.
The indictment further alleges Ignacio and Samson ordered subordinate crewmembers to lie to the U.S. Coast Guard during an inspection in Wilmington, North Carolina. The crewmembers were allegedly instructed to deny knowledge of the connection of a magic pipe to discharge sludge and to tell the Coast Guard that Oily Water Separator was being used as required under international law to process oily mixtures before discharge.
Both engineering officers were charged with violating the federal Act to Prevent Pollution from Ships for failing to record overboard discharges in the vessel’s oil record book, conspiracy for their agreement to violate federal law, obstruction of justice for presenting false documents intended to deceive the Coast Guard, and witness tampering for ordering subordinate crewmembers to mislead and lie to the Coast Guard. Samson was also charged with false statements and obstruction of justice for lying to Coast Guard inspectors about the discharges. If convicted, they face a maximum penalty of 20 years in prison for the obstruction of justice charges (this statement may need to be rephrased – given the 5 year stat max on the 1505 count, in addition to other possible penalties. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent unless and until proven guilty.
The case was investigated by the U.S. Coast Guard, Sector North Carolina. Assistant United States Attorney Banumathi Rangarajan with the U.S. Attorney's Office for the Eastern District of North Carolina, and Trial Attorneys Shane N. Waller and Brendan Selby for the Environmental Crimes Section are prosecuting the case.
Engineering Officers Charged in Scheme to Cover up Oil Discharges from Cargo VesselRead the Press Release
A federal grand jury in Greenville, North Carolina, has returned a nine-count indictment charging two engineering officers employed by Oceanfleet Shipping Limited with crimes relating to the illegal discharge of oily wastes directly into the sea, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina.
Oceanfleet Shipping Limited is a Greek shipping company that operates the cargo carrier M/V Ocean Hope. The two engineering officers indicted are the vessel’s Chief Engineer, Rustico Yabut Ignacio, 65, of the Philippines; and the Second Engineer, Cassius Flores Samson, 51, of the Philippines.
According to the indictment, in 2015 Samson bypassed pollution prevention equipment with an unauthorized hose connection, or “magic pipe,” to discharge oil sludge generated by the M/V Ocean Hope directly into the sea. Samson also ordered crewmembers on numerous other occasions to pump oily mixtures from the vessel’s bilges into the sea using the ship’s General Service Pump rather than processing these mixtures through the vessel’s pollution prevention equipment.
The operation of marine vessels like the M/V Ocean Hope generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. To hide the illegal discharges, Ignacio and Samson allegedly maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel. The oil record book also contained false entries stating that pollution prevention equipment had been used when it had not.
The indictment further alleges Ignacio and Samson ordered subordinate crewmembers to lie to the U.S. Coast Guard during an inspection in Wilmington, North Carolina. The crewmembers were allegedly instructed to deny knowledge of the connection of the pipe used discharge sludge and to tell the Coast Guard that Oily Water Separator had been used as required under international law to process oily mixtures before discharge when they knew it had not.
Both engineering officers were charged with violating the federal Act to Prevent Pollution from Ships for failing to record overboard discharges in the vessel’s oil record book, conspiracy for their agreement to violate federal law, obstruction of justice for presenting false documents intended to deceive the Coast Guard and witness tampering for ordering subordinate crewmembers to mislead and lie to the Coast Guard. Samson was also charged with false statements and obstruction of justice for lying to Coast Guard inspectors about the discharges. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until and unless proven guilty.
The U.S. Coast Guard, Sector North Carolina, investigated the case. Assistant U.S. Attorney Banumathi Rangarajan with the U.S. Attorney's Office for the Eastern District of North Carolina and Trial Attorneys Shane N. Waller and Brendan Selby with the Department of Justice’s Environmental Crimes Section are prosecuting the case.
District Man Sentenced to over 19 Years in Prison for Shooting Friend and Setting His Body on FireRead the Press Release
WASHINGTON – Zacchaeus “Zack” Blanding, 19, of Washington, D.C., was sentenced today to 19 years and four months in prison on charges stemming from the shooting death of his friend, Heineken McNeil, U.S. Attorney Channing D. Phillips announced.
Blanding pled guilty in October 2015, in the Superior Court of the District of Columbia, to second-degree murder while armed. The plea, which was contingent on the Court’s approval, called for a sentencing range of 18 to 26 years in prison, the exact amount of time to be determined by the judge. The Honorable Rhonda Reid Winston accepted the plea today and sentenced Blanding accordingly. Following his prison term, Blanding will be placed on five years of supervised release.
According to the government’s evidence, on Tuesday, June 23, 2015, at approximately 5:25 a.m., the District of Columbia Department of Fire and Emergency Medical Services was sent to the alley behind the 1200 block of Holbrook Terrace NE. The fire department was dispatched due to a fire involving brush, a melting trash can, and a dead human body. There were small flames approximately one to two feet high around the body and brush. The body of Mr. McNeil, 19, was later transported to the District of Columbia Office of the Chief Medical Examiner, where an autopsy was performed. Two bullets that were removed from the head appeared to be from a small caliber firearm. The cause of death was determined to be gunshot wounds to the head and the manner of death was by homicide.
During the course of the investigation, Blanding was interviewed by homicide detectives from the Metropolitan Police Department (MPD). During these interviews, he admitted to shooting Mr. McNeil and then setting his body on fire.
The investigation revealed that in June 2015, Mr. McNeil lived with Blanding in Blanding’s apartment in the 1200 block of Meigs Place NE. On or about June 21, 2015, Blanding decided to kill Mr. McNeil. He video-recorded himself with his cell phone on June 21, 2015, at approximately 9:17 a.m., saying, “This is going to be the last video I’ll ever make. I plan on killing three people – my best friend, my mother and her girlfriend . . .” After the murder, Blanding told detectives multiple times that Mr. McNeil was his best friend.
Approximately 24 hours after the video was recorded, on or about the morning of June 22, 2015, Blanding shot Mr. McNeil twice in the head with a .22-caliber firearm inside Blanding’s bedroom. He then wrapped the body in a blue blanket. Blanding then made multiple trips throughout the day on June 22 to conceal the murder he just committed. He went to a nearby store and bought duct tape to secure the body. On his way back to his apartment, he found a large garbage can, which he dragged into his apartment. He placed Mr. McNeil’s body in the garbage can and dragged the can into the back alley of his apartment building. The body remained in the garbage can most of the day.
Later that same day, Blanding made another trip to another store to buy shoes and returned to his apartment. He also went outside for a while in an attempt to “play off” that he had just committed a murder. On another trip from his apartment, he went to an Auto Zone and purchased a gas canister. He then returned to his apartment again and took a nap. Later that evening, he went to a neighboring gas station and filled the gas canister with gas.
At approximately 5:23 a.m. on June 23, 2015, almost 24 hours after he killed Mr. McNeil, Blanding went into the alley, where the body was still concealed in the garbage can. He doused the body in gasoline and then set it on fire. He left the body to burn where the Fire and Emergency Medical Services located it. Blanding was arrested on July 8, 2015, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation for the work of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the D.C. Department of Fire and Emergency Medical Services and the D.C. Office of the Chief Medical Examiner. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Jennifer Clark and Jennifer Allen of the Victim/Witness Assistance Unit; Paralegal Specialist Vanessa Trent-Valentine, and Investigative Analyst Zachary McMenamin. Finally, he praised the work of Assistant U.S. Attorneys Shana Fulton and Christine Macey, who investigated and prosecuted the case.
District Man Sentenced to 37 Years in Prison for 2010 Murder in Northeast WashingtonRead the Press Release
WASHINGTON - Emanuel “Manny” Guzeh, 29, of Washington, D.C., was sentenced today to 37 years in prison for a 2010 murder in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Guzeh was found guilty by a jury on Sept. 29, 2015, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed and possession of a firearm during a crime of violence. He was sentenced by the Honorable Jennifer Anderson. Following his prison term, Guzeh will be placed on eight years of supervised release.
At trial, the government’s evidence showed that on Feb. 15, 2010, at approximately 11:30 p.m., officers with the Metropolitan Police Department (MPD) were called to an apartment in the 900 block of 48th Street NE, and discovered the body of Michaeldeon Talley, 33, who was dead on the hallway floor of the apartment, having been shot several times.
MPD homicide detectives learned, and the subsequent investigation revealed, that on the night of the murder, Mr. Talley was inside the apartment with his male friend, a girlfriend, and (later) two prostitutes who had advertised on “Backpage.com.” The two prostitutes knew Mr. Talley and were invited over to “party” with the group. One of the prostitutes had recently begun dating the defendant, who accompanied the prostitutes to the apartment, but remained outside. The prostitutes went over to the apartment, socialized with the group, and looked around the apartment for money or valuables to later take with them. They did not find anything of value at first but, while the prostitutes were still inside, Guzeh decided to bust inside the apartment. He then went to the back bedroom, kicked open the bedroom door, and shot Mr. Talley in the torso. Mr. Talley, after pushing his girlfriend out of harm’s way, lunged for the gun and the two men fought. During the struggle, Guzeh shot Mr. Talley three more times. Guzeh and the prostitutes then fled the apartment.
In announcing the sentence, U.S. Attorney Phillips expressed his appreciation for the work of the Metropolitan Police Department. He also commended the efforts of Paralegal Specialists Debra Joyner, Meridith McGarrity, and Zekiah Wright; Paralegal Supervisor Sharon Newman; Victim/Witness Advocate Marcey Rinker; Information Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin; Victim/Witness Specialists Wanda Queen and M. LaVerne Forrest; Supervisory Victim/Witness Specialist Michael Hailey; Victim/Witness Services Coordinator Katina Adams-Washington; Supervisory Victim/Witness Services Coordinator David Foster, and Homicide Section Law Clerk Adam Bereston. Finally, U.S. Attorney Phillips commended former Assistant U.S. Attorney Holly Shick, who assisted in the investigation of this case, and Assistant U.S. Attorneys David Gorman and Robert Eckert, who investigated and prosecuted the case at trial.
California Attorney Indicted and New Jersey Stock Promoter Convicted in Stock Manipulation SchemeRead the Press Release
BOSTON – A California-licensed attorney was indicted in U.S. District Court in Boston yesterday on charges arising out of his participation in a scheme to manipulate the shares of a publicly-traded microcap company. Earlier this week, a New Jersey man pleaded guilty to charges related to his participation in the same scheme.
Jehu Hand, 59, was indicted on charges of conspiracy to commit securities fraud and wire fraud, securities fraud and wire fraud based on his involvement in a pump-and-dump scheme to manipulate the market and to sell unregistered shares of the stock of Greenway Technology. Greenway was a microcap or “penny stock” company that claimed to be on the verge of acquiring hotels that would cater to gay travelers in several major cities.
On Tuesday, Dec. 8, 2015, Mitchell Brown, 50, pleaded guilty to one count of conspiracy and one count of securities fraud for his participation in the Greenway pump-and-dump scheme. U.S. District Court Judge William G. Young scheduled sentencing for Jan. 21, 2016.
According to court documents, in 2012, Hand, Brown and their co-conspirators engaged in a scheme to obtain and conceal their control over the majority of Greenway’s stock so that they could “pump” up the company’s share price and then secretly “dump” their shares into the market by selling at the inflated price. Hand issued false legal opinion letters to Greenway’s transfer agent and to stock brokers. The opinion letters, which intentionally disguised the conspirators’ control over Greenway’s stock, enabled Hand, Brown and their co-conspirators to obtain and sell Greenway’s stock in the open market in violation of federal securities laws. Hand also created and backdated convertible promissory notes. Hand then relied on the false date on the convertible promissory notes when providing his legal opinion that federal securities laws had been followed and that the notes could be converted into seven million shares of Greenway stock, which were then issued to entities controlled by Brown.
With millions of shares of Greenway stock at the conspirators’ disposal, Brown and another co-conspirator, proceeded to hire stock promoters to send blast e-mails that reached many potential investors, including those in Massachusetts, and contained misleading information touting Greenway’s stock. As a result of the hype created by the false and misleading promotional campaign, Hand, Brown and their co-conspirators were able to sell their Greenway stock to unwitting investors at artificially high prices.
These charges arise out of a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities and Exchange Commission (SEC).
The charges and conviction follow a series of cases filed by the U.S. Attorney for the District of Massachusetts and the SEC in which more than 30 individuals have been criminally charged and convicted for using kickbacks and other schemes to trigger investment in, or manipulate the stock of, thinly-traded stocks.
The charge of conspiracy to commit securities fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss to the victim. The charge of securities fraud and wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Chargeof the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis and SEC attorneys Andrew Palid and Eric Forni, who were appointed as Special Assistant U.S. Attorneys.
The details contained in the charging document are allegations. Hand is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man Arrested on Cocaine ChargeRead 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 Pethrod Dunnigan, 37, of Buffalo, NY, was arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine. The charge carries a mandatory minimum 10 years in prison, a maximum of life, a $10,000,000 or both.Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, in May 2014, the Drug Enforcement Administration began receiving information that multiple individuals were making multiple deposits of cash at a Bank of America branch in Buffalo. A majority of the deposits were just under $10,000. Deposits of $10,000 or more would require the bank to report the transaction.
Further investigation revealed that individuals with ties to a Mexican drug cartel were traveling from California to Buffalo to traffic cocaine. These individuals stayed at Buffalo area hotels. They also received packages of cocaine which they then distributed to local drug dealers. The proceeds from the cocaine sales were deposited at local branches in amounts just under $10,000. According to the complaint, between April and December 2014, 108 structured deposits were made totaling $1,049,270,00.
In December 2014, four individuals were arrested after another 10-15 deposits of $9,900 were made into local bank accounts. Further investigation determined that a phone number subscribed to the defendant made 257 calls to one of the defendants arrested between November 29 and December 11, 2014.
On March 4, 2015, law enforcement officers seized approximately $500,000 in suspected drug proceeds in California. According to the complaint, the defendant helped to package the money in the refrigerator that it was shipped in from Buffalo to California.
The defendant made an initial appearance today before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on December 16, 2015.
The criminal complaint is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bloomington Man Convicted of Trafficking 12 and 16-year-old Girls for Commercial SexRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced the trial conviction of LEE ANDREW PAUL, a/k/a “Black,” 35, who was originally indicted on February 17, 2015, in the District of Minnesota, for sex trafficking two minor girls. A superseding indictment subsequently charged PAUL with three counts of sex trafficking. The jury returned a guilty verdict in less than two hours after a five-day trial before U.S. District Judge Ann D. Montgomery. A sentencing date has not yet been set.
“Lee Paul is a predator,” said Assistant United States Attorney Melinda A. Williams. “He hunted down vulnerable girls, including a sixth grader, to traffic for commercial sex. He controlled these women and girls through physical, sexual, and psychological abuse. The stories of these girls are difficult to hear and were even more difficult for these victims to recount. We thank the victims who courageously testified at trial and the jury who rendered this just verdict.”
“While no jail sentence is long enough to erase the damage he has done to his victims, today’s verdict will ensure Lee Paul will have years to reflect on the pain and suffering he has caused,” said William Lowder, acting special agent in charge of HSI St. Paul. “Our communities are safer today, as a result of the excellent cooperative efforts in this case of the Anoka County Sheriff’s Office, the Rochester Police Department, the U.S. Marshals Service and Homeland Security Investigations.”
As proven at trial, LEE PAUL is a self-proclaimed “pimp.” During Memorial Day weekend of 2013, PAUL sought out a 12-year-old sixth grader to join his sex trafficking “family.” He lured a 12-year-old and 16-year-old girl to a party at a motel in Rochester, Minn., where he gave them marijuana and alcohol. After the victims became inebriated, PAUL told them he was a pimp and that they would be working for him. PAUL then took the girls to the Twin Cities where they know no one. PAUL sexually assaulted the 16-year-old victim and brutally raped the 12-year-old.
As proven at trial, while at a motel in Maple Grove, Minn., that same weekend, the 16-year-old victim escaped PAUL and found a police officer and reported what had happened to her. However, PAUL had been tipped off that the 16-year-old victim was trying to find the police and PAUL fled the scene. He then directed another victim, this one 19-years-old, to take the 12-year-old victim to Alexandria, Minn., to “show her the ropes.” The 12-year-old was sold two times that that night for sex with men. Law enforcement arrested PAUL on the morning of May 27, 2013, and was in jail pending state charges in Olmsted and Anoka Counties until he made bail on August 26, 2013. PAUL fled in July 2014 on the eve of his Olmsted County trial.
As proven at trial, while on the run, PAUL got rid of his cell phone and shut down his Facebook page to avoid being tracked by law enforcement. He fled first to Chicago, Ill., and then Atlanta, Ga., where he lived under two different assumed identities and used “burner” phones to avoid being tracked by law enforcement. He was arrested on January 14, 2015 by the U.S. Marshals Service and brought back to Minnesota to face federal charges.
This case is the result of an investigation conducted by Homeland Security Investigations, the United States Marshal Service, Rochester Police Department, Alexandria Police Department, Douglas County Sheriff’s Office, Anoka County Sheriff’s Office, Pope County Sheriff’s Office and the Maple Grove Police Department.
This case is being prosecuted by Assistant U.S. Attorney Melinda A. Williams, Special Assistant U.S. Attorney Erin Gustafson and U.S. Attorney Andrew M. Luger. The United States Attorney’s Office thanks the Olmsted County Attorney’s Office for its substantial assistance in the prosecution of this case.
Defendant Information:LEE ANDREW PAUL, a/k/a “Black,” 35
Bloomington, Minn.Convicted:
- Sex trafficking of a minor, two counts
- Sex trafficking by use of force, fraud and coercion, one count
Blackstone Man Sentenced for Tax CrimeRead the Press Release
BOSTON – A Blackstone, Mass. man was sentenced today in U.S. District Court in Boston to charges that he impeded the IRS by cashing nearly $3 million in checks from his masonry business at check cashing services to evade the IRS.
John W. Lippolis, 56, was sentenced by U.S. District Judge Richard G. Stearns to one year and one day in prison, one year of supervised release and restitution of $172,759 to the IRS. In June 2015, he pleaded guilty to one count of corruptly endeavoring to impede the IRS.
From 2005 to 2011, Lippolis was the sole proprietor of JW Masonry, a masonry company which operated in Rhode Island and Massachusetts. At various times, he also worked for his son’s business, JM Masonry Inc. When Lippolis was paid by check for work performed, he used check cashing services to cash the checks instead of depositing the funds into a bank account in an effort to avoid IRS scrutiny. Lippolis operated his business in cash, paid workers in cash, and requested that customers not write checks to him for amounts exceeding $10,000, which would trigger a reporting requirement for financial institutions that cashed the checks. Lippolis also failed to file tax returns for many years.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Bank Employee Sentenced for Fraudulently Withdrawing Customer FundsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Regan Christopher Tsoi-A-Sue, age 29, of Washington, D.C., today to 30 months in prison followed by five years of supervised release for bank fraud and aggravated identity theft arising from a scheme to fraudulently obtain money from customer bank accounts. Judge Grimm also entered an order that Tsoi-A-Sue pay restitution of $87,350.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, Tsoi-A-Sue worked at Capital One as a relationship banker, at a branch on Wisconsin Avenue in Washington, D.C. He was assigned a unique user ID and password which allowed him to access and change customer accounts on Capital One’s computer system.
From September 9, 2011 to April 22, 2013, Tsoi-A-Sue fraudulently linked four temporary debit cards and one debit card of a closed bank account (the Debit Cards) in Capital One’s computer system to open bank accounts belonging to other persons. He also changed the pin number or increased the daily withdrawal limit, or both, of the Debit Cards. Tsoi-A-Sue then made and attempted to make transactions with the Debit Cards to withdraw funds from ATMs.
For example, on October 27, 2012, Tsoi-A-Sue fraudulently linked a Capital One Debit Card belonging to a closed bank account, to another Capital One savings account. On December 9, 2012, he used the Capital One Debit Card to withdraw $500 from the savings account at an ATM.
During the course of the scheme, Tsoi-A-Sue fraudulently withdrew $87,350.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore for its work in the investigation and thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case
Anderson Indiana police officer faces drug distribution chargesRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, today announced the arrest of an Anderson, Indiana police officer for allegedly selling narcotics to an undercover FBI agent while on duty. Donald Jordan, 52, Anderson, was charged with possession with intent to distribute hydrocodone and Xanax.
“The citizens of Anderson deserve better from their public servants,” said Minkler. “When a police officer betrays the trust of the community he serves by dealing drugs, he will be targeted, investigated and prosecuted like any other drug dealer. That being said, I know Mr. Jordan’s criminal choices do not represent the Anderson Police Department or law enforcement in general in Indiana.”
According to the criminal complaint affidavit, in June 2015, a citizen contacted law enforcement with information about criminal activity involving Officer Jordan. Jordan allegedly provided the citizen three hydrocodone pills and asked the citizen to touch him in a sexual manner after Jordan exposed himself. The citizen objected but Jordan grabbed her hand and placed it on his exposed genitals.
On December 9, 2015, an undercover FBI agent met Jordan at a convenience store on West 38th Street in Anderson. They engaged in a conversation and Jordan acknowledged that he had marijuana and Xanax that he could sell. During the conversation, Jordan said he is “a better criminal than he is a cop.”
The undercover agent agreed on a price of $45 for 15 Xanax pills. The agent gave Jordan $60 in cash and Jordan returned $15 in change. He then instructed the agent to go to a local Anderson business and wait for his return. Jordan left the convenient store in his marked police car and met the agent a short while later and transferred the 15 pills. During the transaction,Jordan was on official duty and was dressed in full police uniform, including his police department issued weapon. “Of the more than 300 federal criminal violations investigated by the FBI, few are more important than police officers who harm the communities they serve,” said FBI Special Agent in Charge Jay Abbott. “The FBI worked closely with senior Anderson Police Department officials on this matter. It should be clear, if you violate the public trust, the FBI will find you, will investigate you, and through the USAO, prosecute you to the fullest extent of the law.”
“Allegations of wrongdoing by police officers undermine the public’s trust and confidence in law enforcement,” said Anderson Police Chief Larry Crenshaw. “As law enforcement officers who are sworn to defend and uphold the law, we must maintain a higher level of public trust. The men and women of the Anderson Police Department are dedicated to serving this community and any charge of misconduct against one of our officers is not a reflection of the entire force.”
Jordan had his initial appearance before a magistrate judge in Indianapolis this afternoon and was released on home detention with GPS monitoring.
According to Assistant United States Attorney Cynthia J. Ridgeway who is prosecuting this case for the government, Jordan could face up 15 years if convicted on both counts.
A criminal complaint is only a charge and not an indication of guilt. All defendants are presumed innocent until proven guilty in federal court.
Allentown Teens Charged in Armed RobberiesRead the Press Release
PHILADELPHIA - Jacob Pabon, 19, and Lytic Fauntleroy, 19, both of Allentown, PA, were charged yesterday by indictment with robbery which interferes with interstate commerce, and using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. The indictment charges that on May 7, 2015, Pabon committed a gun-point robbery of Sun’s Deli, located at 1341 Union Street, in Allentown, Pennsylvania; and that on May 29, 2015, Pabon and Fauntleroy committed a gun-point robbery of Speedway, located at 1043 Lehigh Street, in Allentown, Pennsylvania. Pabon and Fauntleroy are also charged with using and carrying firearms during the robberies charged in the indictment.
If convicted of all counts, Pabon faces a mandatory minimum sentence of 32 years in prison with a maximum sentence of life, a fine, five years of supervised release, and a $400 special assessment; Fauntleroy faces a mandatory minimum sentence of seven years in prison with a maximum sentence of life, a fine, five years of supervised release, and a $200 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allentown Police Department and the Lehigh County District Attorney’s Office. The case has been assigned to Assistant United States Attorney Eric A. Boden.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Pleads Guilty to Submitting Fraudulent Claims to Veterans Affairs Medical CenterRead the Press Release
ALBUQUERQUE – Tomas Jaramillo, 55, of Albuquerque, N.M., pleaded guilty today in federal court to submitting false and fraudulent claims to the Veterans Affairs Medical Center (VAMC) in Albuquerque. Under the terms of his plea agreement, Jaramillo will be sentenced to five years of probation and will be ordered to pay $11,439.90 in restitution to the VAMC as the victim of his crimes.
Jaramillo was charged by information on Aug. 18, 2015, with submitting fraudulent vouchers to collect payments for roundtrip travel to attend medical appointment. He was subsequently charged by indictment on Sept. 22, 2015, with submitting 173 fraudulent claims to the VAMC for travel beneficiary payments from June 2009 through July 2010.
During today’s change of plea hearing, Jaramillo admitted that from June 2009 through July 2010, he travelled to the VAMC in Bernalillo County, N.M., to obtain medical treatment and falsely claimed that he traveled from Socorro, N.M., to do so. Jaramillo admitted that he submitted fraudulent vouchers to VAMC to receive payment for roundtrip travel which he did not actually make to attend his medical appointments. Jaramillo acknowledged receiving $11,439.90 in travel reimbursements to which he was not entitled.
This case was investigated by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Samuel A. Hurtado.
Albion Man Pleads Guilty to Importing Α-PvpRead 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 Donald Stirk, 36, of Albion, NY, pleaded guilty to importing α-PVP into the United States before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on March 5, 2015, Customs and Border Protection officers in Memphis, Tennessee conducted a routine inspection of a package mailed from China and addressed to the defendant in Albion. The inspection revealed that the package contained α-PVP (sometimes known as “flakka”), a Schedule I controlled substance. On March 13, 2015, law enforcement officers inspected another package from China addressed to the defendant, this time at the Albion Post Office, which again revealed α-PVP. Subsequent investigation revealed more such packages at the Albion Post Office. On April 15, 2015, officers performed a controlled delivery of several of the packages to the defendant at his Albion residence and then executed a search warrant at the residence revealing an additional quantity of α-PVP.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for March 23, 2016 at 11:00 a.m. before Judge Wolford.
Alabama Man Found Guilty of Aggravated Sexual Abuse of a ChildRead the Press Release
A federal jury convicted Rick Lee Evans, 43, of Anniston, Alabama, today of aggravated sexual abuse of a child after a five-day trial, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama announced.
According to evidence introduced at trial, Evans, a former U.S. Army soldier, and his then-wife, a Department of Defense employee, were residing in Germany when they were asked to take temporary custody of a five-year-old child whose parents were deployed to Iraq with the U.S. Army. Evans sexually abused the child on multiple occasions during the 18 months that the child lived with him from May 2007 to December 2008.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama are prosecuting the case. U.S. Army Criminal Investigations Division and the FBI’s Birmingham, Alabama, Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
10 December 2015
Williamsport Man Indicted Federally for Heroin and Firearms ViolationsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Williamsport man was indicted today by a federal grand jury for heroin trafficking and possession of firearms in furtherance of drug distribution.
According to United States Attorney Peter Smith, the grand jury alleges that Michael Wright, age 22, by himself and acting with others, engaged in deliveries of heroin in Williamsport in 2015. A search of Wright’s apartment in July 2015, allegedly uncovered over 400 packets of heroin packaged for sale, as well as a revolver and a semi-automatic handgun. A third handgun with an obliterated serial number was allegedly recovered from Wright at the time of his arrest.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Geoffrey MacArthur.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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 up to life imprisonment, a term of 3 years supervised release following imprisonment, and a $250,000 dollar 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.
# # #
Verona Man Pleads Guilty to Producing Sexually Explicit Videos of MinorsRead the Press Release
PITTSBURGH - A former Allegheny County resident pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
David Hudak, 46, of Verona, Pennsylvania, pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on Feb. 3, 2013, Hudak employed, used, and coerced a minor, approximately five years of age, to engage in sexually explicit conduct for the purpose of producing a video depicting her sexual exploitation. The court was further informed that the video was taken in Hudak’s Verona residence, while the child victim was in his custody and care. The video was discovered on a computer seized from Hudak’s residence during the execution of search warrant. The search warrant was issued following an undercover investigation during which Hudak distributed videos depicting the sexual exploitation of minors to an undercover officer.
Judge Conti scheduled sentencing for March 24, 2016, at 3 p.m. The law provides for a total sentence of not less than 15 years nor more than 30 years in prison, a fine of $250,000.00, supervised release for any term of years not less than five, and up to life, or any and all. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court ordered that Hudak remain detained.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and other members of the Western Pennsylvania Violent Crimes Against Children Task Force conducted the investigation leading to the prosecution of Hudak.
United States Reaches Settlement with Western Slope Pharmacy for Violations of the Controlled Substance ActRead the Press Release
DENVER — John Walsh, U.S. Attorney for the District of Colorado, today announced that Palisade Pharmacy has entered into a civil settlement with the United States and have paid $60,000 in civil penalties to resolve allegations that it violated certain provisions of the Controlled Substances Act and the Combat Methamphetamine Epidemic Act of 2005 (CMEA).
The United States alleges that Palisade Pharmacy, a pharmacy located in Palisade, Colorado, committed over 480 violations of the Controlled Substances Act and the CMEA related to the distribution of controlled substances, including: shipping controlled substances to unregistered locations; failing to verify addresses on DEA order forms to the corresponding addresses registered with the DEA; filling prescriptions for controlled substances despite missing required information on the face of the prescription; failing to maintain, record, and retain complete and accurate records relating to distribution of controlled substances; and selling List I chemical products without a valid self-certification certificate.
With the passage of the Controlled Substances Act, Congress took steps to attempt to create “a closed system” of distribution for controlled substances that is intended to regulate the movement of prescription medications from importation/manufacture through delivery to the ultimate user via the lawful dispensing, administering, or prescribing by a practitioner. A closed system of manufacture and distribution requires that each registrant maintain accounting and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed to abusers or street dealers. This can only be accomplished through complete compliance with the Controlled Substance Act and its accompanying regulations, which are designed to require pharmacies to account for controlled substances.
“Prescription drugs are controlled by federal law to protect the public; violations of the law by a pharmacy can put public health at risk,” said U.S. Attorney John Walsh. “Palisade Pharmacy’s agreement to pay a civil penalty not only addresses the issues in this case, but sends a message to all pharmacies to follow the rules to protect the public.”
“The diversion of pharmaceuticals and chemicals for illicit gain and profit is nothing more than drug trafficking,” stated Barbra Roach, Special Agent in Charge of the Drug Enforcement Administration’s Denver Field Division. “Those occupying positions of trust and responsibility, such as medical practitioners and pharmacists, have to be held accountable when they chose to operate illegally and threaten the safety of our communities.”
In addition to paying the civil penalty, Palisade Pharmacy has also signed an administrative settlement agreement. Under the terms of the administrative settlement agreement, Palisade Pharmacy has agreed to enhanced reporting and training requirements, as well as to a three-year surrender of its CMEA certification that allows it to sell List 1 chemicals.
In entering into a civil settlement, Palisade Pharmacy did not admit to liability, and the agreement indicates that the parties entered into the settlement to avoid the uncertainty and expense of further litigation.
The investigation was conducted by the Drug Enforcement Administration. The United States was represented in this matter by Assistant United States Attorney Amanda Rocque of the U.S. Attorney’s Office in Denver, Colorado.
U.S. Attorney's Office collects more than $10 million in civil, criminal, asset forfeiture actions in FY2015Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. - United States Attorney Stephanie A. Finley announced today that the U.S. Attorney’s Office for the Western District of Louisiana collected $10,649,919 through civil, criminal and asset forfeiture actions in Fiscal Year 2015.
The U.S. Attorney’s Office collected $6,575,973 in criminal actions and $1,171,467 was collected in civil actions. Working with various other offices and components of the Department of Justice, the Western District of Louisiana collected an additional $1,352,659.The U.S. Attorney’s Office also worked with its partner agencies and divisions to collect $1,549,819 in asset forfeiture actions in FY2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced last week that the Justice Department collected $22.9 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $22.9 billion in collections in FY2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorney’s offices and the main litigating division in that same period.
Included in the FY2015 criminal collections for the U.S. Attorney’s Office, Western District of Louisiana, is $1.5 million collected from Gulfport Energy Corporation. Gulfport Energy was charged with violating the Clean Water Act by discharging polluted water into Cote Blanche Bay from June 2011 until March 2012. The company pleaded guilty to one count of negligent discharge of pollutants into navigable waterways. Gulfport paid $1.125 million fine for violating the Clean Water Act and $375,000 in community service projects.
Also included in the FY2015 collections is $1.25 million paid by Arkla Disposal Services. The United States and the State of Louisiana filed suit against Arkla Disposal and related entities alleging violations of the Clean Water Act, the Resource Conservation and Recovery Act, the Clean Air Act’s National Emissions Standard for Benzene Waste Operations and the Louisiana Environmental Quality Act at the Arkla’s facility in Shreveport. Arkla paid a total of $2.5 million to the United States and the State of Louisiana to settle the lawsuit.
One of the significant civil recoveries for the Western District of Louisiana in FY2015 was $650,000 collected from Dr. Mehmood Patel and his entities, Acadiana Cardiology LLC and Acadiana Cardiovascular Center LLC. This collection resulted from the settlement of a qui tam action that alleged Mehmood Patel, a cardiologist, performed unnecessary cardiovascular and other endovascular interventional procedures at two hospitals and at a cardiac catheterization lab located in his private medical office.
Of the total amount collected by the District in FY15, $1,177,576.29 was collected through garnishment proceedings commenced by the district’s Financial Litigation Unit (FLU). The significant increase collected through garnishment proceedings is due in part to the garnishment of various financial interests of debtors including retirement accounts, life insurance policies, wages and other financial accounts as well as the aggressive collection activity handled by the FLU. The largest recovery resulting from a garnishment proceeding in FY15 occurred in United States v. Bunnie Morris. In August 2014, Morris pleaded guilty to one count of bank fraud in violation of 18 U.S.C. § 1344 and was sentenced to 29 months in prison and were ordered to pay $337,050.32 in restitution. After the district instituted garnishment proceedings, $266,957.70 was recovered in garnished assets owned by the defendant and payments from Morris which satisfied the balance of the restitution debt.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from Affirmative Civil Enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“We remain dedicated to protecting the public and vigorously pursuing funds that rightfully belong to the U.S. taxpayers,” stated U.S. Attorney Stephanie A. Finley. “Our office will continue to hold people accountable and seek compensation for victims of federal crimes. I congratulate my staff for their hard work.”
U.S. Attorney Vance says State of Alabama and ALEA Receive Money from Department of Transportation and are Subject to Title VI Nondiscrimination ProhibitionRead the Press Release
Following widespread closures and reduction in services at driver license offices across Alabama, the U.S. Department of Transportation announced today that it is investigating whether these actions by the State and the Alabama Law Enforcement Agency (ALEA) violate Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin in programs and activities receiving federal assistance, said Northern District of Alabama U.S. Attorney Joyce White Vance.
DOT has sent a letter to the state informing officials that it is opening a Title VI investigation following the DMV closures.
The State of Alabama and the Alabama Law Enforcement Agency, in particular, receive substantial federal assistance from the Department of Transportation and, therefore, are subject to Title VI's nondiscrimination prohibition, Vance said.
As this is an investigation conducted by the Department of Transportation, any inquiries about the matter should be directed to that department, she said.
Two Women Arrested on Federal Drug Trafficking Charges for Allegedly Transporting Fifteen Pounds of HeroinRead the Press Release
ALBUQUERQUE – Two women made their initial appearances this morning in federal court in Albuquerque, N.M., on a criminal complaint charging them with possession of approximately 15 pounds of heroin with intent to distribute. Vicenta Ramona Garcia, 28, a U.S. citizen, and Guadalupe Ofelia Lopez-Vasquez, 59, a Mexican national, both of whom reside in San Luis Rio Colorado, Sonora, Mexico, remain in federal custody pending a preliminary hearing and a detention hearing which are scheduled for Dec. 14, 2015.
Garcia and Lopez-Vasquez were arrested yesterday after DEA agents allegedly seized approximately 15 pounds of heroin from them during consensual searches at the Greyhound Bus Station in Albuquerque. According to the criminal complaint, both women allegedly had heat-sealed bundles of substances that tested positive for heroin strapped to their backs and waists.
If convicted on the charges in the criminal complaint, Garcia and Lopez-Vasquez each face a statutory penalty of a mandatory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Two More Individuals Indicted in “Operation Denial”Read the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Dec. 10, 2015, Ronnie Lee Helms 30, Acworth, Georgia, and Braden James Foley 28, Olympia Wash., have been indicted in the District of North Dakota, charging them with conspiracy to possess with intent to distribute and distribution of a controlled substance and controlled substance analogues resulting in serious bodily injury and death. Both defendants have been arrested and detained, and are being transported to North Dakota to face the Indictment.
The arrests come as part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, which was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington, D.C., as part of “Operation Deadly Merchant.” The investigation started in North Dakota on January 3, 2015, with the overdose death of 18-year-old Bailey Henke in Grand Forks.
To date, a total of 12 defendants have been indicted in connection with this investigation. The four related Indictments in this case have identified and alleged 12 victims of the distribution of controlled or analogue controlled substances – of those 12, four victims died and eight were overdoses resulting in serious bodily injury. “This remains a very active national and international investigation,” stated U.S. Attorney Myers. “Our multi-national investigative team is committed to identifying the full scope of harm caused by this international conspiracy. Those individuals responsible, whether in the United States or other countries, will be brought to North Dakota to face charges.”
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations, Drug Enforcement Administration, United States Postal Inspection Service, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police, and the Grand Forks Police Department.
U. S. Attorney Christopher C. Myers, AUSA Scott Schneider, and SAUSA Scott Kerin are prosecuting the cases.
An Indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Tucson Man Sentenced to 65 Years for Murder, Assault of Pascua Yaqui MembersRead the Press Release
TUCSON, Ariz. – Today, Joseph Edward Camargo, 30, of Tucson, Ariz., a non-tribal member, was sentenced by U.S. Chief District Judge Raner C. Collins to 65 years’ imprisonment. Camargo was found guilty of second degree murder, aggravated assault, and weapons offenses, by a federal jury on March 17, 2015.
“This sentencing demonstrates that this type of violent, malicious crime will not be tolerated in our communities,” said U.S. Attorney John S. Leonardo. “Our office, along with our law enforcement partner agencies, will continue to prosecute these cases to the full extent of the law.”
The evidence at trial showed that on Sept. 30, 2011, Camargo went to a residence on the Pascua Yaqui Indian Reservation, armed with a handgun. Camargo provoked a fight with a male victim in the front yard of the residence. After the victim fled into the home, Camargo pursued him, firing four shots into the house. Three bullets struck the victim, killing him. The final bullet struck another male at the house, who was treated at a local hospital. Both victims were members of the Pascua Yaqui Tribe.
The investigation in this case was conducted by the Federal Bureau of Investigation and Pascua Yaqui Police Department, with assistance provided by the Arizona Department of Public Safety and Office of the Medical Examiner. The prosecution was handled by Jesse J. Figueroa and Matthew C. Cassell, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-11-4021-TUC-RCC-DTF
RELEASE NUMBER: 2015-120_Camargo
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tishman Construction Charged with Fraud; To Pay More Than $20 Million in Restitution and Penalties for Defrauding Clients in A Ten-Year Overbilling SchemeRead the Press Release
Earlier today, the U.S. Attorney’s Office for the Eastern District of New York (“the Office”) filed fraud charges in Brooklyn federal court against Tishman Construction Corporation (“Tishman Construction”), one of the largest construction companies in New York City. Tishman Construction is charged with mail and wire fraud conspiracy for improperly billing its clients more than $5 million over a ten-year period for hours not worked and at rates that were in excess of the agreed upon contract rate. Also, Tishman Construction entered into a deferred prosecution agreement with the Office in which Tishman Construction admitted to fraudulently overbilling clients and agreed to pay more than $20 million in restitution to victims and penalties to the federal government. The company has additionally instituted far-reaching corporate reforms designed to eliminate future problems and enforce best industry practices.
Today’s deferred prosecution agreement marks the third resolution by the Office aimed at rooting out fraud in the construction industry. In April 2012, Lend Lease (US) Construction LMB Inc. (formerly Bovis Lend Lease LMB Inc.) was charged with defrauding its clients, entered into a deferred prosecution agreement, and paid $56 million in restitution and penalties for engaging in a ten-year overbilling scheme. More recently, in May 2015, Hunter Roberts Construction Group, LLC entered into a non-prosecution agreement and agreed to pay more than $7 million in restitution and penalties for engaging in an eight-year fraudulent overbilling scheme.
The charge and disposition were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Michael Nestor, Inspector General, Port Authority of New York and New Jersey; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; Carol Fortine Ochoa, Inspector General, General Services Administration, Office of the Inspector General; Cheryl Garcia, Special Agent-in-Charge, Department of Labor, Office of Inspector General; and Mark G. Peters, Commissioner, New York City Department of Investigation.
“Through a systemic practice, Tishman Construction bilked its clients by charging them for unworked time and at rates higher than those bargained for by their clients. By doing so, Tishman Construction defrauded its clients and abused the trust placed in it to provide construction services on some of New York’s most storied buildings. Today’s criminal action and resolution is another example of our steadfast efforts in combating and eliminating fraud in New York City’s construction industry,” stated U.S. Attorney Capers. Mr. Capers thanked the investigative agencies for their outstanding commitment and dedication over the course of this multi-year industry investigation.
“Tishman’s conduct that perpetuated an industry-wide fraud for more than a decade has come to an end. Government contracting agencies, and private clients alike, deserve to be billed strictly for what they bargained for, not duped into overpaying for gratuitous or phantom services. Responsible for overseeing one of the largest government contracting agencies in the region, the Port Authority Office of Inspector General will continue to uproot fraud and corruption within the area’s construction industry,” stated Inspector General Nestor. Mr. Nestor thanked his law enforcement partners for their dedication and professionalism in investigating these practices.
“Over ten years, Tishman Construction improperly billed millions from its clients representing both public and private projects across the New York City area. Today’s restitution settlement of more than $20 million should help make right on a practice so wrong. The FBI is committed to working with our law enforcement partners to investigate and bring justice to those who seek to profit from fraudulent schemes, especially those in the city’s construction industry,” stated Assistant Director-in-Charge Rodriguez.
“Tishman Construction is being held responsible for defrauding the United States and others,” said Inspector General Ochoa. “I appreciate the hard work of our GSA OIG agents and law enforcement partners on this important construction fraud case that uncovered deceitful billing practices.”
“Fraudulent billing practices threaten to stymie the growth and development of New York City’s construction industry. Integrity in public and private contracting ensures a level playing field for employment opportunities. We will continue to work with our investigative partners to identify corrupt practices affecting the American workforce,” stated Special Agent-in-Charge Garcia of the New York Regional Office, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“This overbilling scheme padded daily work logs and falsified overtime - all at a cost to taxpayers and the public. This type of fraud needlessly drives up construction costs and undermines integrity at these sites. DOI thanks the hard work of our law enforcement partners on this investigation, and we will continue to work together to root out and stop this type of corruption,” stated Commissioner Peters.
The Overbilling Scheme
As alleged in the felony information filed today, Tishman Construction, a New York based construction firm, engaged in a fraudulent overbilling scheme that impacted its projects for at least a ten-year period. These projects included the World Trade Center Towers One (the “Freedom Tower”), Three, Four and Seven; the World Trade Center PATH Transportation Hub; the Plaza Hotel renovation; the Javits Convention Center Expansion and Renovation Project; the Aqueduct Casino in Queens, and scores of other projects.
Tishman Construction’s role on construction projects was typically that of a construction manager, which often required it to supervise the work done by subcontractors or trade contractors. From at least 1999 through approximately October 2009, Tishman Construction billed clients, including government contracting and funding agencies, for hours that were not worked by labor foremen from Local 79 Mason Tenders’ District Council of Greater New York. Tishman Construction carried out this fraudulent overbilling by: (a) adding one to two hours of unworked or unnecessary “guaranteed” overtime per day to the time sheets for the labor foremen; (b) providing five hours of guaranteed overtime per day, whether worked or not, for a particular senior labor foreman; and (c) allowing labor foremen to be absent from work for sick days, major holidays, and one or two weeks of vacation per year. In furtherance of this overbilling scheme, Tishman Construction completed and submitted time sheets to its clients as though the labor foremen had worked those days. Additionally, from approximately 2005 through 2009, without seeking advance approval from its clients, Tishman Construction paid a particularly senior labor foreman, and billed its clients, at wage rates that exceeded those specified in Tishman Construction’s contracts with its clients.
The Deferred Prosecution Agreement
Pursuant to the deferred prosecution agreement filed today, Tishman Construction accepted responsibility for its fraudulent billing practices and agreed to offer restitution to its clients in the amount of $5,650,917.97 and pay a penalty of $14,580,000.00 to the government over a two-year period. In consideration of Tishman Construction’s remedial actions to date and its commitment to, among others: (a) accept and acknowledge responsibility for its conduct; (b) continue its cooperation; (c) make restitution available to victims; and (d) make the payment of a financial penalty to the government; the government agreed to defer the prosecution for a period of 24 months and to obtain an exclusion of time to allow Tishman Construction to demonstrate good conduct and compliance with the terms of this agreement.[1] Tishman’s remedial measures include the creation of the position of Compliance Director at the company, the adoption of a new Code of Conduct, and the revision of time sheet recording and client billing policies.
* * *
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Whitman Knapp and Special Assistant United States Attorney Jonathan P. Lax are in charge of the prosecution.
The Defendant:
TISHMAN CONSTRUCTION CORPORATION
New York, New YorkEDNY Docket No.: 15-CR-617 (CBA)
[1] The request for the exclusion of time is pending before the Honorable Carol B. Amon.
Three codefendants sentenced on Federal heroin chargesRead the Press Release
CHARLESTON, W.Va. – Three codefendants were sentenced in federal court today in Charleston, West Virginia, for federal heroin charges, announced United States Attorney Booth Goodwin. Michael Richard, 32, of Charleston, was sentenced to five months in federal prison and five months to be served on home confinement for distribution of heroin. Cassandra Washington, 26, of Charleston, was sentenced to credit for time served for aiding and abetting to possession with intent to distribute heroin. Washington had spent approximately one year and four months incarcerated prior to her sentencing. James Christopher Harris, 25, of Detroit, was sentenced to three years of probation with the conditions of five months of home confinement and 200 hours of community service for aiding and abetting to possession with intent to distribute heroin. All three defendants previously pleaded guilty to the federal drug charges in September of 2015.
Richard admitted that on April 10, 2014, he sold a half gram of heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT). The drug deal took place in a house that Richard shared with Washington at 7 Cherry Lane in Elkview. On the same day as the drug deal, MDENT executed a search warrant of the residence and found Richard, Washington, and Harris in the house. As part of the search, law enforcement seized heroin, digital scales, and sandwich bags used to package heroin. Harris admitted that he had transported the heroin from Detroit to the Elkview residence for Richard and Washington to sell. Washington admitted that she planned to sell the heroin provided by Harris.
The successful prosecution of Richard, Washington, and Harris was the result of an investigation conducted by the Metropolitan Drug Enforcement Network Team.
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.
-
Follow us on Twitter: SDWVNews
-
Three Milwaukee Persons Convicted for Sending Fraudulently Obtained Funds to the UkraineRead the Press Release
Today, Gregory J. Haanstad, Acting United States Attorney for the Eastern District of Wisconsin, announced that Vladimir Sonin (age 50) of Bayside, Wisconsin; Natalya Sonina (age 47) of Bayside, Wisconsin; and Irina Tinney (age 47) of Milwaukee, Wisconsin entered guilty pleas in federal court. According to court documents, on June 9, 2015, all three individuals were indicted on various offenses related to a scheme to fraudulently obtain more than $1.1 million in federal and state tax refunds from 2013 through 2015.
Vladimir Sonin and his wife Natalya Sonin pled guilty to counts five and fifteen of the indictment which alleged mail fraud in violation of Title 18, United States Code, Section 1341 and aggravated identity theft in violation of Title 18, United States Code, Section 1028A. The Sonins face a maximum penalty of 20 years imprisonment, a $250,000 fine, and 3 years of supervised release for the mail fraud convictions, plus a two year consecutive sentence and a $250,000 fine for aggravated identity theft. According to their plea agreements, the scheme involved the filing of fraudulent tax returns in the names of identity theft victims. Funds from fraudulently-obtained tax returns were loaded onto access devices, such as bank cards, and the money was then withdrawn from ATMs. Most of the money was then sent to the Ukraine, much of it to the brother of Natalya Sonin and Irina Tinney. More than $1.1 million was sent to the Ukraine using cash wire transfers. The Internal Revenue Service identified more than 1500 unauthorized tax returns filed using stolen identities from Southeastern Wisconsin
Irina Tinney pled guilty to one count of structuring to evade reporting requirements in violation of Title 31, United States Code, Section 5324. Tinney faces a maximum penalty of five years imprisonment, $250,000 fine, and 3 years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigation, the Postal Inspection Service and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Stephen A. Ingraham.
# # # # #