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7 December 2015
Eight sentenced in multi-state heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eight individuals were sentenced in federal court today after they admitted to participating in a multi-state heroin trafficking scheme, United States Attorney William J. Ihlenfeld, II, announced.
In June 2015, authorities announced a 163-count federal indictment encompassing 41 defendants, including the eight individuals sentenced today. The indictment targeted an extensive heroin trafficking network led by Brian Alexander Hall, 27, of Baltimore Maryland. Customers from locations in Maryland, Pennsylvania, Virginia, and West Virginia traveled to the Baltimore area to purchase heroin from Hall.
Shawn Blain Bowers, 27, of Braddock Heights, Maryland, pled guilty in August 2015 to one count of “Conspiracy to Distribute Heroin.” He was sentenced today to 51 months in prison.
Javier Lewis Howard, 33, of Martinsburg, pled guilty in August 2015 to one count of “Use of a Telephone to Facilitate the Distribution of Heroin” and one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” He was sentenced today to 46 months in prison on each count. The sentences imposed today will run concurrently for a total of 46 months in prison.
Harmony Hahn, 32, of Martinsburg, pled guilty in August 2015 to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering,” and one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” She was sentenced today to 37 months in prison on each count. The sentences imposed today will run concurrently for a total of 37 months in prison.
Bonnie Hanna, 34, and James Michael Ross, 32, both of Martinsburg, each pled guilty in August 2015 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Hanna was sentenced today to 24 months in prison. Ross was sentenced today to 15 months in prison.
Darla Kinser, 30, James Wesley Faircloth, 35, both of Martinsburg, and Teddy Edward Threadgill, 47, of Harpers Ferry, West Virginia, each previously pled guilty to one count of “Interstate Travel in Aid of Racketeering.” Faircloth was sentenced today to 30 months in prison. Threadgill was sentenced today to 18 months in prison. Kinser was sentenced today to 10 months in prison.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
Chief U.S. District Judge Gina M. Groh presided.
Defendant Convicted of Perjury Sentenced to 46 MonthsRead the Press Release
SAIPAN, CNMI – ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on Friday, December 4, 2015, the NMI U.S. District Court Chief Judge Ramona V. Manglona sentenced Randy A. Igisomar, age 23, to 46 months in prison followed by three years of supervised release for perjury. Igisomar pleaded guilty on November 26, 2014.
During his sentencing hearing, Igisomar addressed Judge Manglona in open court and admitted he had lied during his testimony at the trial of Raymond Borja Roberto, who had been charged with three counts of enticement of a minor and one count of witness tampering, and was acquitted on all counts by a jury on September 29, 2014.
Following the sentencing, United States Attorney for the Districts of Guam and the Northern Mariana Islands, Alicia A.G. Limtiaco, stated, “The Defendant's perjured testimony was an affront to our system of justice. The United States Attorney’s Office, together with its federal law enforcement partners, will continue in its efforts to ensure that those who obstruct justice are held accountable and prosecuted for their crimes.”
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Ross K. Naughton and Garth R. Backe.
Corona Woman Who Ran High-End Denim Jean Company Sentenced to nearly Seven Years in Prison in $15 Million Bank Fraud SchemeRead the Press Release
LOS ANGELES – A Corona woman who was the chief executive officer of a high-end jean company that outfitted Hollywood celebrities was sentenced today to 79 months in federal prison for running what prosecutors called “two fraud schemes of epic proportions.”
Carolyn Marie Jones, 52, was sentenced this afternoon by United States District Judge Michael W. Fitzgerald, who also ordered the defendant to pay $15,124,100 in restitution to individual investors and Union Bank of California.
At today’s sentencing hearing, Judge Fitzgerald said the defendant was “truly a greedy, awful person.”
Jones pleaded guilty in February to one count of bank fraud and one count of concealing assets in a bankruptcy proceeding.
Jones “executed not one, but two, fraud schemes of epic proportions resulting in a loss to Union Bank and numerous investors of $15,124,100,” prosecutors wrote in a sentencing memorandum that outlined one scheme involving bank loans and bankruptcy fraud and a second one targeting individual investors that Jones perpetrated while free on bond after being indicted in the bank fraud case.
According to court documents, Jones defrauded Union Bank of California in a scheme related to her company, DDI (sometimes known as Diamond Decisions, Inc.), which sold jeans under the labels Privacywear and PRVCY Premium. Union Bank issued an $8.5 million line of credit – which was later increased to $15 million – to Jones in late 2008, but Jones had filed a fraudulent loan application that used another person’s social security number, bogus tax returns that had never been filed with the Internal Revenue Service and false financial statements for DDI that grossly overstated the company’s profits.
“For years, defendant [Jones] knowingly submitted false and fabricated tax returns, income statements, accounts receivable reports, and other financial documents to Union Bank,” according to the sentencing memo. “She lied to numerous bank employees about her company’s success and sales, among other things. She fabricated fake customers and retail stores purportedly buying her products.”
Jones also admitted in court that the accounting firm she claimed had audited her financial statements was a sham company. Jones confessed she lied to Union Bank employees, including the loan officer.
Jones soon defaulted on the $15 million loan, and Union Bank filed a civil lawsuit against DDI in state court. When the court issued an order authorizing Union Bank to seize the company’s assets, Jones filed a Chapter 11 bankruptcy petition in February 2010 that listed the bank as the sole creditor. In the following months, Jones lied to the bankruptcy trustee, concealed DDI assets, specifically about $120,000 that she had received from DDI customers, and spent some of the money on herself.
“Jones operated a sophisticated and devious scheme that spanned many years and caused significant financial and personal harm,” said United States Attorney Eileen M. Decker. “Jones actions were driven by greed, caused losses to both a financial institution and individuals, and has now resulted in a significant prison sentence.”
As part of a plea agreement in this case, Jones apologized to the identity theft victim in the bank fraud case, and she agreed to pay $15 million in restitution to Union Bank and $124,100 in restitution to victims whom she admitted defrauding in the second scheme.
Jones pleaded guilty in relation to two cases that were the result of an investigation conducted by the United States Secret Service and IRS - Criminal Investigation. The United States Trustee’s Office provided valuable assistance during the investigation.
Colorado U.S. Attorney's Office Efforts Result in the Collection of over Half a Billion Dollars in Fiscal Year 2015Read the Press Release
DENVER – U.S. Attorney John Walsh today announced that the District of Colorado, working on its own and with other U.S. Attorney’s Offices and components of the Department of Justice collected $539,446,849.97. These collections come from key cases such as those against DaVita, Inc., MetLife, First RF Corporation and others. Of this amount, $15,844.38 was collected in criminal actions and $539,431,005.59 was collected in civil actions.
Of the total, the U.S. Attorney’s Office in Colorado itself collected $6,590,196.05 in Colorado-specific criminal and civil actions. Of this amount, $5,257,087.32 was collected in criminal actions and $1,333,108.73 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department's combined appropriations for the 94 U.S. Attorney's Offices and the main litigating divisions in that same time period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“Each year the United States Attorney’s Office for the District of Colorado helps recover huge sums on behalf of the taxpayers. This year that amount was over half a billion dollars,” said U.S. Attorney John Walsh. “The extraordinary skill and dedication of our civil attorneys and staff, as well as our financial litigation unit staff, are to thank for the vast majority of these recoveries, and those amounts exceed the total budget of the U.S. Attorney’s Office each year not just by multiples, but by factors of ten and more.”
Included in this year’s collection are three high-level civil cases, some of which the Colorado U.S. Attorney’s Office worked with other U.S. Attorney’s Offices or with litigating divisions within the Department of Justice. They include:
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A $350 million settlement with DaVita, Inc. to resolve allegations that DaVita, a dialysis company, used bogus economic manipulations to artificially reduce the apparent value of its dialysis centers. The United States alleged that DaVita reduced these values to induce doctors to enter into joint ventures with DaVita, so that those doctors would then refer all their patients to DaVita clinics. The United States alleged that these economic manipulations violated the Anti-Kickback Statute and the False Claims Act.
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A $123.5 million settlement to resolve allegations that MetLife Bank N.A. violated the False Claims Act when it underwrote mortgage loans to be insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration (FHA).The United States alleged that MetLife knowingly failed to follow FHA’s rules and sought insurance for loans that did not meet the applicable requirements, leaving the government on the hook as the insurer when the loans defaulted.
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A $10 million settlement with First RF Corporation to settle allegations that First RF defrauded the United States when it supplied antennas for use in fighting improvised explosive devices in Iraq and Afghanistan.The United States alleged that First RF improperly overcharged the government for the equipment by making misrepresentations during contract negotiations.
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A $550,000 settlement with Esri, Inc. involving alleged overcharging of the Bureau of Land Management in contracts for time and materials.The Federal Acquisition Regulations for T&M contracts set rules for government contractors, and prevent them from submitting bills that include certain kinds of fees, such as travel and the cost of subcontractors. The United States alleged that Esri added prohibited profit and fees to invoices for payment in T&M contracts without BLM’s knowledge or approval.
The 2015 collections related to criminal cases include two tax fraud related cases, U.S. v. Gregory Laurence and U.S. v. Matthew Zuckerman. Additional money was collected following a trial in U.S. v. Michael Griggs, an executive with Disaster Restoration, Inc. who conspired with subcontractors to inflate their bids for restoration costs.
The largest civil collections in 2015 were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney's Office in Colorado, working with partner agencies and divisions, collected $45,938,911.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
In addition to the substantial 2015 collections, the U.S. Attorney’s Office, working with other Department of Justice components, continues to recover large amounts of money for the taxpayers. One example that will be applied to the FY 2016 collection, is the recent settlement with Franklin American Mortgage, who agreed to pay the United States $70 million to resolve allegations it violated the False Claims Act by knowingly originating and underwriting bad mortgage loans insured by the U.S. Department of Housing and Urban Development.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
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Area Man Sentenced for Cyber-Attack of the St. Louis County Police Union WebsiteRead the Press Release
St. Louis, MO – JUSTIN PAYNE was sentenced to 18 months imprisonment for possession of an unregistered destructive device and an additional 12 months for destroying the St. Louis County Police Association website through a distributed denial of service attack.
According to court documents, on December 2, 2014, the group “Rebel But Gangster Black Rebels” aka RBG Black Rebels promoted a cyber-attack against the St. Louis County Police Association (SLCPA) website on Twitter. An investigation by the FBI determined that the RBG Black Rebels’s Twitter account is solely operated and held by the defendant, Justin Payne. His cyber-attack was in conjunction with the group Operation Ferguson, which claimed affiliation with the group Anonymous.
On December 2, 2014, messages were sent out on Twitter by the Defendant. These messages contained a link for a Distributed Denial of Service (DDoS) attack on the SLCPA website. A distributed denial-of-service attack is an attempt to make a machine or network resource unavailable to its intended users. All networks have a limited amount of connections that they can have at any one time. The program distributed by the defendant exploited this limit by initiating as many connections with SLCPA website as possible to fill up the bandwidth. This attack on the SLCPA website actually shut down the website. On December 3, 2014, the St. Louis Division of the FBI confirmed a DDoS attack on SLCPA.org website and began an investigation. The SLCPA provided FBI agents with web logs detailing the IP addresses used in the attack. A review of the logs determined the times of the attack coincided with the Twitter messages sent by Justin Payne via his RBG Black Rebels Twitter account.
On January 27, 2014, a review of Payne’s Twitter account revealed messages associated with killing law enforcement officers. Through investigation, FBI agents determined that Justin Payne worked at the V.A. facility located at One Archives Way, St. Louis, Missouri. After Payne was arrested for the DDoS attack, the FBI received a search warrant for Payne’s car. During the search of Payne’s trunk, agents located a glass container containing a flammable liquid mix of gasoline, water and ethanol, which was later determined to be an improvised incendiary device, commonly known as a Molotov cocktail.
Payne, address unknown, pled guilty in September to one felony count of possession of an unregistered firearm and one count of damage to a protected computer. He appeared today for sentencing before United States District Judge Henry Autrey.
The case was investigated by the Federal Bureau of Investigation and the Federal Protective Service. Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney’s Office.
Appellate Court Denies Estate Planner’s Attempt to Vacate Guilty Plea; Leaves Prison Term, Restitution Order IntactRead the Press Release
PROVIDENCE, R.I. – The First Circuit Court of Appeals today let stand a District Court ruling denying motions by Joseph A. Caramadre to withdraw his guilty plea to conspiring to steal and use the identities of terminally-ill patients to obtain millions of dollars in illicit profits from insurance companies and bond issuers, and left intact a sentence of 6-years in federal prison imposed by U.S. District Court Chief Judge William E. Smith.
Joseph A. Caramadre, president, CEO and majority owner of Estate Planning Resources in Cranston, R.I., was sentenced on December 16, 2013, to 72 months in federal prison to be followed by 3 years supervised release, during which time he is required to perform 3,000 hours of community service to the elderly and terminally-ill individuals. Caramadre was also ordered to pay restitution in the amount of $46 million dollars.
Caramadre pleaded guilty on November 19, 2012, to conspiracy to commit identity theft and wire fraud, as the second week of testimony in his federal court jury trial was scheduled to begin. Prior to sentencing, Caramadre attempted to withdraw his guilty plea, however his motion to withdraw the guilty plea was denied by Chief Judge William E. Smith.
At the time of his guilty plea, Caramadre admitted to the court that he, and a co-defendant, Raymour Radhakrishnan, an employee of Caramadre, made misrepresentations to terminally-ill and elderly patients and their family members in order to obtain their personal identity information. They used the information, including names; dates of birth; and social security numbers, to obtain more than 200 variable annuities and to open more than 75 brokerage accounts in order to purchase “death-put" bonds in the victims’ names without their knowledge and consent. Caramadre and Radhakrishnan either forged the signatures of terminally-ill people on account documents, or obtained by means of misrepresentations. When the terminally- ill person died, Caramadre and others reaped substantial profits by exercising death benefits associated with the investments.
“The road has been a long one, but the defendant’s quixotic and seemingly inexhaustible attempts to escape the consequences of his reprehensible criminal conduct are finally at an end,” commented United States Attorney Peter F. Neronha. “Perhaps he can spend the remainder of his six year prison sentence reflecting on his greed and his victimization of the most vulnerable, instead of dreaming up Hail Mary legal arguments.”
The matter was argued before the First Circuit Court of Appeals by Assistant U.S. Attorney Donald C. Lockhart. The criminal case was prosecuted in U.S. District Court by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams.
The matter was investigated by the United States Attorney’s Office and the FBI, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Alexandria Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Richard Robinson, 58, of Alexandria, pleaded guilty today to receipt of child pornography.
In a statement of facts filed with the plea agreement, from October 2010 to May 2015, Robinson used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including videos of children as young as five years old being sexually abused. In total, Robinson’s child pornography collection included 326 images and 202 videos of children being sexually exploited, including images and videos depicting sadistic or masochistic conduct.
Robinson faces a mandatory minimum penalty of five years in prison, and a maximum 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 Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington D.C. office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. This case was investigated by HSI with assistance from the Northern Virginia Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kellen S. Dwyer is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-CR-329.
2015 Pacific Region OCDETF Advisory Council Meeting in San FranciscoRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), together with Michael Puralewski, Resident Agent in Charge of the Drug Enforcement Administration (DEA), and Assistant U.S. Attorney (AUSA) Clyde Lemons, attended the 2015 Pacific Region OCDETF Advisory Council Meeting on December 3, 2015, in San Francisco, California.
OCDETF (Organized Crime Drug Enforcement Task Force) is a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. The participants of the OCDETF Program include the 94 U.S. Attorneys’ Offices, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the DEA, the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), the U.S. Coast Guard, the U.S. Immigration and Customs Enforcement (ICE), the U.S. Marshals Service, the Criminal and Tax Divisions of the U.S. Department of Justice and numerous state and local agencies.
The 2015 Pacific Region OCDETF Advisory Council Meeting was attended by United States Attorneys, Lead OCDETF AUSAs, Special Agents in Charge of DEA, and U.S. Marshals in the Pacific Region. The Pacific Region encompasses Guam, the Commonwealth of the Northern Mariana Islands, Hawaii, California, Washington, Nevada, Oregon, Idaho and Alaska. The meeting covered the state of the OCDETF Program, Pacific Region district updates and a review of the Pacific Region Drug Threat Assessment.
"Operation Pongo" Leads to Arrest of Two Malaysian Men on Federal Charges of Smuggling Wildlife into the U.S.Read the Press Release
PORTLAND, Ore. – Two Malaysian nationals have been arrested on federal wildlife smuggling charges after they allegedly used mail parcels to illegally smuggle orangutan skulls and parts of other protected wildlife into the United States.
Eoin Ling Churn Yeng, 35, and Galvin Yeo Siang Ann, 33, both Malaysian citizens, were arrested without incident, on Friday afternoon, December 4, by special agents with the U.S. Fish and Wildlife Service and National Oceanic and Atmospheric Administration. Ling and Yeo were arrested soon after arriving in Portland to meet with an associate.
Ling and Yeo are charged in a criminal complaint that alleges multiple counts of illegally importing wildlife into the United States, an offense that carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
According to the criminal complaint, the investigation into Ling and Yeo began in 2013, when a routine search of an international package revealed a helmeted hornbill mandible that was being shipped to a residence in Forest Grove, Oregon. Helmeted hornbills are listed as endangered under the Endangered Species Act (ESA) and protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
U.S. Fish and Wildlife agents initiated an undercover operation named “Operation Pongo,” which was inspired by the orangutan’s genus Pongo. The investigation revealed that Ling and Yeo were co-owners of an online business that regularly smuggled endangered wildlife into the United States from 2004 to 2015. The criminal complaint states that U.S. Fish and Wildlife reviewed records that indicate Ling and Yeo have sold wildlife items to multiple individuals and businesses in the United States. Undercover U.S. Fish and Wildlife agents communicated with Ling and Yeo and purchased three orangutan skulls, four helmeted hornbill skulls, one CITES-protected rhino hornbill head, one ESA-protected babirusa (wild pig) skull, one CITES-protected langur skull, and one ESA-protected dugong (marine mammal) rib.
Ling and Yeo are expected to make their initial court appearance in U.S. Magistrate Court today at 1:30 p.m.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Operation Pongo was conducted by the U.S. Fish and Wildlife Service, which received assistance from the Office of International Affairs, Environmental Crimes Section of the Environment and Natural Resources Division, U.S. State Department, FBI Legal Attaché in Kuala Lumpur, National Oceanic and Atmospheric Administration, Bureau of Land Management, and the Multnomah County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Ryan W. Bounds.
4 December 2015
Zimmerman Man Sentenced to 252 Months in Prison After Trial Conviction for Distribution of Child PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of LEVI WAYNE BURNS, 40, for distribution and possession of child pornography. BURNS pleaded on guilty on June 5, 2015, to possession of child pornography and was convicted on June 10, 2015, after a jury trial, of one count of distribution of child pornography. The defendant was charged by indictment on November 20, 2014, with one count each of possession and distribution of child pornography. BURNS was convicted in 2005 in Sherburne County, Minn., for criminal sexual conduct in the third degree for engaging in sexual acts with a 15-year-old female child. He was sentenced yesterday in U.S. District Court in Minneapolis, Minn., before U.S. District Judge Patrick J. Schiltz.
According to the defendant’s guilty plea and as proven at trial, in January 2014, BURNS shared via a peer-to-peer computer network several files containing videos of child pornography, including a video depicting two female children between the ages of 10 and 14 engaged in sexual acts. BURNS, who lived in the basement of his parents’ home in Sherburne County, operated an extensive computer system and related equipment. In fact, BURNS was using so much computer power that he and his parents were using the heat generated by the defendant’s computers to heat their house that winter, which was one of the coldest in recent Minnesota history.
According to the defendant’s guilty plea and as proven at trial, BURNS was operating a specially built computer with several hard drives, at least one of which was dedicated to a file sharing program that allowed him to download and share child pornography over the internet. The defendant also saved thousands of files of child pornography on a separate external hard drive.
This was the result of an investigation conducted by the Federal Bureau of Investigation, Sherburne County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorneys Katharine T. Buzicky and Sarah E. Hudleston prosecuted the case.
Defendant Information:
LEVI WAYNE BURNS, 40
Zimmerman, Minn.
Convicted:
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Distribution of child pornography, 1 count
- Possession of child pornography, 1 count
Sentenced:
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252 months in prison
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10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Woman Arrested and Charged with Sex Trafficking of MinorRead the Press Release
St. Thomas, USVI – Jennifer Bowen-Dodoo, 51, made her initial appearance in District Court today before District Court Judge Curtis V. Gomez after her arrest on St. Thomas Thursday for sex trafficking of a 13-year-old female minor, United States Attorney Ronald W. Sharpe announced. Judge Gomez remanded Bowen-Dodoo to the custody of the U.S. Marshals Service pending a detention hearing scheduled for December 7, 2015.
According to a criminal complaint filed in the District Court, Bowen-Dodoo directed a 13-year-old female to become involved in a sexual relationship with a 58-year-old adult male, and demanded that the male make monthly deposits into Bowen-Dodoo’s bank account. In addition to the monthly deposits, Bowen-Dodoo periodically demanded other cash payments in exchange for facilitating the male’s continued access to the minor. If convicted, Bowen-Dodoo faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. She would also face a fine of up to $250,000.
“Adults who target children for sexual exploitation, regardless of their age, should consider themselves targets by HSI and our law enforcement partners,” said Angel M. Melendez, special agent in charge of HSI in Puerto Rico and the Virgin Islands. “Child exploitation, in all its forms, is a very serious crime and its investigation is a priority for HSI.”
United States Attorney Sharpe reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Suspected child exploitation or missing children cases may be reported to the National Center for Missing and Exploited Children via its toll-free 24–hour hotline at 202-514-5678, or to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at (340) 693-2250.
This case is being investigated by HSI, with the assistance of the Virgin Islands Police Department and Human Services. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Western Washington U.S. Attorney’s Office Collects more than $21 Million for U.S. Taxpayers and Crime Victims in Fiscal Year 2015Read the Press Release
Seattle - U.S. Attorney Annette L. Hayes announced today that the U.S. Attorney’s Office for the Western District of Washington collected more than $21 million between October 1, 2014 and September 30, 2015. The office collected $12,195,918 in criminal and civil actions. Criminal cases accounted for $4,108,596 of the collections and $8,087,322 was collected in civil actions. In addition the office collected $8.9 million in asset forfeitures. 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.
The Western District of Washington also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $8,571,092 in cases pursued jointly with these offices. Of this amount, $10,625 was collected in criminal actions and $8,560,467 was collected in civil actions.
These collections are part of the $23 billion that Attorney General Loretta E. Lynch announced yesterday in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department's combined appropriations for the 94 U.S. Attorney's offices and the main litigating divisions in that same period.
“Every day this office goes to work to protect the public and that includes safeguarding taxpayer resources,” said U.S. Attorney Annette L. Hayes. “During this past fiscal year, this has meant returning a total of $21 million to victims of crime and other taxpayer funded programs. This office will continue to work hard to ensure criminals do not profit from their crimes and those who defraud the government do not get to keep their ill-gotten gains.”
The more than $21 million collected in the Western District of Washington are made up of a wide variety of civil and criminal actions brought on behalf of the United States. The largest civil collection in the Western District of Washington was $6.4 million from cardiac monitoring company Bio-Telemetry Inc. The company paid $6.4 million to resolve allegations that its subsidiary, CardioNet, improperly billed the Medicare Program for Mobile Cardiac Outpatient Telemetry (MCOT) services when those services were not reasonable or medically necessary. More on the case here.
On the criminal side, the U.S. Attorney’s Office collected more than $231,000 from Gino Turrella, who committed identity theft while making threats against Boeing and other companies. Elsa Kwong, convicted of widespread food stamp fraud paid $147,967 towards her $1.5 million restitution obligation. Jennifer Kolar, convicted in connection with the 2001 arson at the University of Washington Center for Urban Horticulture paid $77,000 toward restitution for the $7 million in damage caused by the fire. And Colton Harris Moore, known in the media as the ‘Barefoot Bandit’ paid $90,000 towards his restitution obligation of more than $1.1 million.
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.
Wanda C. Shorter Found Guilty by Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Wanda C. Shorter, 43, of Elkhart, Indiana, was found guilty, yesterday, after a four-day jury trial of all four counts charged by indictment in a health care billing fraud/aggravated identity theft case.
According to documents in this case, Empowerment Non-Emergency Medical Transportation, Inc. (hereafter "Empowerment") was an enrolled Medicaid provider. The provider agreement for Empowerment showed that it was a commercial ambulatory service provider and that its business address was in Elkhart, Indiana. Defendant Wanda C. Shorter founded Empowerment and submitted Empowerment's billings to Medicaid for payment and reimbursement of claims. Ms. Shorter was the sole owner of Empowerment Non-Emergency Medical Transportation, Inc. Indiana Medicaid reimburses enrolled health care providers, including commercial ambulatory service providers, for covered services that are provided to patients who are Medicaid eligible on the date of the provided service. Providers enrolled in the Indiana Medicaid program agree to submit claims for only medically and reasonably necessary services that are covered under the program that are actually provided and to only seek compensation to which the provider is legally entitled. Under the Indiana Medicaid Provider Agreement the State of Indiana entered into with all Medicaid providers, Medicaid providers are prohibited from submitting claims for services that are not medically necessary or are not actually provided or for which the provider is otherwise not legally entitled to receive payment. From 2011 to 2014, in the Northern District of Indiana, the defendant knowingly engaged in a scheme to defraud Indiana Medicaid and knowingly misused the means of identification of Medicaid clients. As part of the fraud scheme, the defendant caused billings and claims for reimbursement to be sent to Indiana Medicaid for transportation services that were never in fact provided. Defendant Wanda Shorter caused billings and claims for reimbursement to be sent to Indiana Medicaid as well for the payment of inflated mileage claims and for medical transportation trips that had been cancelled and never occurred. Further, the defendant caused billings to be sent to Medicaid that were up-coded, that is, the defendants caused billings to be sent that were submitted for higher reimbursement amounts than were justified based on the actual transportation services provided. As part of the fraud scheme, the defendant knowingly used without lawful authority a means of identification of other persons during and in relation to her health care fraud scheme, including specifically that of multiple Medicaid beneficiaries. The loss caused by the fraud here was in excess of $1 million dollars.
“This case is an example of a brazen misuse of taxpayer funds by fraudulently overbilling the Medicaid program for reimbursements. It also demonstrates how state and federal government can partner to investigate and bring a perpetrator to justice. I want to once again personally thank David Capp and his team for their extraordinary efforts in serving justice and the people of Indiana,” said Indiana Attorney General Greg Zoeller, who also thanked the investigators and attorneys who worked on the case.
This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation and the Indiana Attorney General’s Office Medicaid Fraud Control Unit. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
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U.S. Attorney’s Office Collects Nearly $55 Million for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
COLUMBUS, Ohio – U.S. Attorney Carter M. Stewart announced today that the Southern District of Ohio collected nearly $55 million in criminal and civil actions in Fiscal Year 2015. Of this amount, nearly $46 million was collected in criminal actions and approximately $9 million was collected in civil actions.
Additionally, the Southern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $49.7 million in cases pursued jointly with these offices. Of this amount, approximately $7 million was collected in criminal actions and $42.5 million was collected in civil actions.
Attorney General Loretta E. Lynch announced yesterday 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 FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The collection figures in our district and across the country highlight the Justice Department’s work to protect our citizens and safeguard taxpayer resources,” U.S. Attorney Stewart said. “We are dedicated to providing a valuable return on investment to the American people.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Southern Ohio, working with partner agencies and divisions, collected nearly $18 million in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects More Than $136 Million for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Tampa, FL - U.S. Attorney A. Lee Bentley, III announced today that the Middle District of Florida collected more than $136 million for taxpayers this fiscal year (FY). In FY 2015, which ended on September 30, the Office’s Civil, Criminal, and Asset Forfeiture Divisions collected these monies through civil and criminal actions.
The Office’s Civil Division, led by Randy Harwell, recovered $101,247,920 from affirmative civil enforcement cases, most alleging health care fraud. Our civil Assistant United States Attorneys recovered $47,593,934 as a result of investigations conducted in this district. An additional $53,653,986 was recovered as a result of joint investigations with the Department of Justice’s Civil Division and other United States Attorneys’ offices. This latter figure includes an installment payment of $21,651,246 from an earlier settlement of a large health care fraud case, United States ex rel. Hellein v. Wellcare Health Plans, Inc.
The Office’s Asset Recovery and Victims’ Rights Division, led by Anita M. Cream, recovered more than $34.9 million. Of this amount, the Division’s Financial Litigation Unit recovered $11,498,617 in criminal cases, most of which was in the form of criminal fines, special assessments, and restitution. Providing restitution for the victims of crime is a top priority of our office. Working with partner agencies, the Division’s Asset Forfeiture Section recovered more than $23.4 million in criminal and civil forfeitures. Depending on the type of case, forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund or the Department of Treasury’s Assets Forfeiture Fund. Consistent with Departmental policy, in cases where a defendant lacks the means to pay restitution, assets can be forfeited from that defendant and restored to crime victims. In addition, approximately $5.6 million in forfeited funds was shared with state and local law enforcement agencies.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions this fiscal year. This total represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
Middle District of Florida Affirmative Case Highlights
The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government contracts, including national security and defense contracts, as well as under government programs as varied as Medicare, veterans’ benefits, federally insured loans and mortgages, highway funds, research grants, agricultural supports, school lunches, and disaster assistance. In 1986, Congress strengthened the Act by amending it to increase incentives for whistleblowers to file lawsuits on behalf of the government. Most false claims actions are filed under the Act’s whistleblower, or qui tam, provisions that allow individuals to file lawsuits alleging false claims on behalf of the government. If the government prevails in the action, the whistleblower, also known as the relator, receives up to 30 percent of the recovery.
Compounding Pharmacy Fraud Initiative
Our district has taken the lead in a nationwide effort to pursue recovery, under the False Claims Act, against compounding pharmacies that have engaged in a systemic fraud against TRICARE, the military’s healthcare program. The most persistent fraud scheme identified involves improper relationships between marketing firms, physicians, and compounding pharmacies to induce the referral of prescriptions for medically unnecessary compounded pain and scar creams to the pharmacies.
In July 2015, the U.S. Attorney’s Office settled claims against Blanding Health Mart Pharmacy. Between February and April, Blanding sought reimbursement for compounding pharmaceutical prescriptions that were not medically necessary and had been written by physicians that had never actually seen the patients. These claims were resolved for $8,441,107.
Kevin Powers, former Chief Executive Officer of QMedRX, a compounding pharmacy in Maitland, paid $6,529,077 to satisfy his responsibility arising from bills submitted to federal healthcare programs for services that were not reimbursable. Between January 1, 2013, and January 22, 2014, QMedRX submitted claims for compounded prescriptions that violated the Anti‐Kickback Statute because the marketers who obtained the prescriptions from physicians were paid through improper and illegal incentive compensation arrangements.
Another compounding pharmacy, Med Match Pharmacy, LLC, paid $4,736,133.63 to resolve concerns that it had paid kickbacks to marketers, that it had filled prescriptions it knew or should have known were not legitimate, and that it had sent prescriptions to states in which it did not have a valid license.
MediMix, a Jacksonville-based compounding pharmacy, resolved claims that it had an improper referral relationship with its top-referring physician – Dr. Ankit Desai. TRICARE alleged that between January 2009 and December 2014, Dr. Desai sent hundreds of prescriptions to MediMix that were not reimbursable because he was married to a Senior Vice President at MediMix. Healthcare providers are generally prohibited from referring business to entities where they have a financial interest. The government agreed to accept $3,775,458 to resolve these allegations.
Shortly after the close of FY15, the MDFL reached settlements with a host of other compounding pharmacies, bringing the total recovery on behalf of the TRICARE program to more than $35 million.
United States ex rel. Yandell v. Advanced Homecare, Inc.
A former employee of a Jacksonville home health company filed a qui tam case against her employer, Advanced Homecare, contending that, from April 2009 until April 2012, the company had created a set of “neurocare protocols” wherein the company accepted home health referrals from two neurologists. The government alleged that through these protocols, Advanced Homecare had accepted and treated patients who were not actually homebound and did not have a valid physician certification of home health need, as required by Medicare. Further, the government alleged that Advanced Homecare recklessly had allowed its employees to aggressively market its home health services to this neurology practice, and that those marketing employees had gained direct access to the practice’s patient files, completed referral forms, and used the doctors’ signature stamps to sign orders, in order to circumvent the physician certification requirement. The government resolved these allegations for $1,293,169.
United States ex rel. Doe v. Recovery Home Care
The relator in this case is a former sales representative for a home health care provider who alleges that the defendant entered into consulting agreements with physicians. These physicians agreed to refer at least 10 patients a month to the defendant in exchange for compensation ranging from $2,000 to $2,500 per month. The consulting agreements referred to the physicians as either “medical directors” or “medical consultants.” Prior to October 2009, Recovery Home Care employed two medical directors. By January 2012, the defendant had contracts with 18 medical directors, and had “consulting agreements” with 32 physicians during the course of the scheme. The relator alleged that these agreements violated the federal Anti-Kickback Statutes and Stark Statute. Following a lengthy investigation, the United States intervened in the case. Claims against Recovery Home Care have been resolved for $1 million. A settlement of the claims against the individual defendant is still being finalized.
United States ex rel. Wells v. Baptist Health System, et al.
This qui tam case was filed by a former administrator of the Baptist Health hospital chain who alleged that a neurologist employed by the hospital intentionally had misdiagnosed his patients with various neurological disorders and then had billed government healthcare programs for medically unnecessary services, tests, and treatments. In addition, she alleged that the defendant hospital chain did not return overpayments it had received as a result of the misdiagnoses, after discovering the neurologist’s scheme. In FY2014, we settled our claims against the hospital for $2.5 million. This fiscal year, we reached an ability to pay settlement for $150,000 with the physician defendant.
United States ex rel. Yerger et al. v. IND-MAR Services, Inc., et al.
The relator filed this case in May 2011, alleging that North Florida Shipyards created a sham corporation, IND-MAR Services, Inc., falsely claiming that IND-MAR was a Service Disabled Veteran Owned Business (SDVOB). North Florida Shipyards did so in order to appear qualified to bid on certain solicitations issued by the Coast Guard, which were set aside contracts for SDVOBs. After a lengthy investigation, we opened settlement discussions that led the defendant to invoke its ability to pay. In FY2015, the Department of Justice approved the defendant’s offer to pay $1,000,000 to settle these claims.
United States ex rel. Macdonald v. Walter Investment Mgmt. Corp., et al.
The former Chief Financial Officer of a loan servicing company, RMS, filed a qui tam complaint against his former employer and its parent, Walter Investments. The complaint alleged that the defendants had defrauded the Department of Housing and Urban Development’s (HUD) reverse mortgage insurance program by failing to take certain actions required by HUD regulations, after HUD insured loans became due and payable. Specifically, the relator alleged that RMS had failed to disclose to HUD on numerous occasions that it did not obtain an appraisal within the required 30 days after the loan became due, and that it did not take “first legal action” within six months of the due date. By not self-disclosing on the HUD insurance claim that these event-specific deadlines were missed, the relator alleged that RMS filed false claims with HUD that resulted in HUD paying additional interest on claims that it should not have paid. These claims were settled for $29.63 million.
CVS
This case was a civil penalty referral by the Drug Enforcement Administration arising from the conduct of two CVS pharmacies in Sanford, Florida. The two pharmacies were accused of distributing controlled substances based on prescriptions that had not been issued for legitimate medical purposes by a health care provider in the usual course of professional practice. When confronted with the investigative findings, CVS acknowledged that its retail pharmacies had dispensed certain controlled substances in a manner not fully consistent with their compliance obligations under the Controlled Substances Act and the related regulations. CVS ultimately agreed to pay a civil penalty of $22 million. At the time of settlement, this was the highest penalty of its kind ever paid by a nationwide pharmacy chain.
United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products, Inc.
This qui tam was filed by the CEO of an exporter that competes with the defendant in the aluminum extrusion industry. He alleged that the defendant had avoided paying anti-dumping and countervailing duties owed on aluminum extrusions by misrepresenting the country of origin for the products as Malaysia, rather than the Peoples Republic of China. The investigation confirmed these allegations, as well as other deceptive practices. In FY2014, a settlement was reached with the defendant, Basco, for $1.1 million. In FY2015, settlements were negotiated with defendants C.R. Laurence Co. Inc., Southeastern Aluminum Products Inc., and Waterfall Group LLC for $2.3 million, $650,000 and $100,000, respectively, as well as for $385,000 and $50,000, on an ability to pay basis with individual defendants Robert Wingfeld and William Ma. The aggregate settlement recovery for this case was $4.585 million.
United States ex rel. Pelletier v. Liberty Ambulance Service, Inc., et al. and United States ex rel. Pelletier v. Century Ambulance Service, Inc., et al.
A former employee of two Jacksonville area ambulance companies filed two qui tam lawsuits in federal court against his former employers, alleging that the companies had submitted false claims to Medicare and other federally subsidized health programs for services that were “upcoded” and/or were medically unnecessary. Specifically, the whistleblower alleged that the companies had sought reimbursement for transportation of patients who did not qualify for basic life support transportation. In addition, the whistleblower alleged that several Jacksonville area hospitals had furthered the scheme by providing false certificates of medical necessity to justify the services. These allegations were investigated over a three and a half year period, which corroborated the relator’s core allegations. Ultimately claims were settled against one ambulance company (Century Ambulance) for $1.25 million and against three Jacksonville area hospital chains (Baptist Hospital, HCA, and Shands Healthcare) for $2.88 million, $2.4 million, and $1 million, respectively, for a total recovery of $7.53 million. The U.S. Attorney’s Office has intervened in the qui tam case against Liberty Ambulance and is currently litigating the claims against that defendant.
United States ex rel. Milstein v. Family Dermatology, et al.
Family Dermatology P.C. owns and operates a dermatopathology laboratory in Georgia and a number of dermatology practices throughout the Eastern United States. The relator, a board certified dermatologist and an independent contractor for Family Dermatology, claimed that the defendants had defrauded the United States by knowingly billing Medicare for lab work that violated the Stark Statute. The Stark Statute restricts the financial relationships that health care providers may have with doctors who refer patients to them. Family Dermatology employs a number of dermatologists as independent contractors and it routinely required them to use Family Dermatology’s in-house pathology lab, which operated under the name Nelson Dermatopathology, for their pathology services. The relator alleged that Family Dermatology’s financial relationships with a number of these physicians did not comply with the requirements of the Stark Statute, and that company had improperly billed Medicare for dermatopathology analyses performed by Nelson Dermatopathology on specimens that had been sent to the laboratory by these employed physicians. This case overlapped with another previously filed case in the Northern District of Georgia and was subsequently transferred there. Our district continued to assist in the investigation that resulted in a settlement of all claims for $3,247,935.
United States ex rel. Montejo v. Adventist Health System, et al.
A physician formerly employed by Florida Oncology Network alleged that his former employer, the exclusive provider of radiation oncology services for Adventist Health System’s Florida Hospital chain, had provided radiation therapy services to patients without the proper physician supervision required by Medicare reimbursement regulations. He further alleged that the defendants had submitted false claims for evaluation and management services that were required to be performed by radiation oncologists, but were instead performed by non-physician providers. After investigating these claims, the U.S. Attorney’s Office negotiated a settlement of the claims against the defendant hospital chain for $5.5 million.
U.S. Attorney’s Office Collected More Than $50 Million in Civil, Criminal and Asset Forfeiture Actions in Fiscal Year 2015Read the Press Release
CHICAGO — The United States Attorney’s Office for the Northern District of Illinois collected more than $50 million in criminal, civil and asset forfeiture actions in Fiscal Year 2015, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today.
The 2015 collections included $19,468,802 in criminal actions, $11,584,602 in civil actions, and $19,136,036 in asset forfeiture actions. The Office also collected $314,659 in criminal and civil cases pursued jointly with other U.S. Attorneys’ Offices and components of the U.S. Department of Justice.
Attorney General Loretta E. Lynch announced yesterday that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. This figure represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections 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.”
“Our attorneys and staff are thoroughly committed to recovering funds for the federal treasury and for victims of federal crimes,” said Mr. Fardon. “The Office continues to provide a significant net financial benefit to the taxpayers of our district.”
The collections in the Northern District of Illinois included more than $2 million from the criminal fraud prosecution of insurance agent Michael Ward, and more than $1.9 million in a civil forfeiture action arising from healthcare fraud at the now-defunct Sacred Heart Hospital in Chicago.
The 94 U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States, and criminal debts owed to crime victims. Federal 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 money to state victim compensation and victim assistance programs.
Nationally, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Two Massachusetts Men Indicted in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A federal grand jury sitting in Boston returned an indictment yesterday, which was unsealed today, charging two Massachusetts residents with conspiracy to defraud the United States, theft of government property, access device fraud and aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Carmen M. Ortiz for the District of Massachusetts, and Special Agent in Charge William Offord of Internal Revenue Service-Criminal Investigation (IRS-CI), Boston Field Office.
Furvio Flete-Garcia, 42, and Juan Santiago, 36, both of Lawrence, Massachusetts and nationals of the Dominican Republic, are alleged to have participated in a scheme to prepare and file fraudulent federal income tax returns using stolen identities for the purpose of obtaining U.S. Treasury tax refund checks. According to the indictment, during 2013 and 2014, Flete-Garcia and Santiago possessed more than 800 names and social security numbers of U.S. citizens including Puerto Rican residents, which Santiago sold to another individual for the purpose of using those identities to prepare and file fraudulent federal income tax returns. The indictment further alleges that Flete-Garcia and Santiago sold more than 16 U.S. Treasury tax refund checks with a total face value of more than $100,000 to the same individual. These tax refund checks were issued by the IRS as a result of the fraudulent income tax returns that were filed using the stolen identities.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Ortiz and Special Agent in Charge Offord thanked agents of IRS-CI, Homeland Security Investigations, U.S. Secret Service and the Social Security Administration’s Office of the Inspector General, who investigated the case and Senior Litigation Counsel Corey J. Smith of the Tax Division, who is prosecuting the case.
Two Lawrence Men Charged in Stolen Identity Fraud SchemeRead the Press Release
BOSTON – Two Lawrence men were charged today in U.S. District Court in Boston in connection with a scheme to file fraudulent federal income tax returns using stolen identities.
Furvio Flete-Garcia, 42, and Juan Santiago, 36, nationals of the Dominican Republic, were indicted on conspiracy to defraud the United States, theft of government property, access device fraud and aggravated identity theft.
According to court documents, in 2013 and 2014, Flete-Garcia and Santiago allegedly possessed more than 800 names and social security numbers of U.S. citizens, including Puerto Rican residents, which Santiago allegedly sold to another individual for the purpose of using those identities to prepare and file fraudulent federal income tax returns. The indictment further alleges that Flete-Garcia and Santiago sold more than 16 U.S. Treasury tax refund checks with a total face value of more than $100,000 to the same individual. These tax refund checks were issued by the IRS as a result of the fraudulent income tax returns that were filed using the stolen identities.
The charge of conspiracy to defraud the United States provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charges of theft of government property and access device fraud each provides a sentence of no greater than 10 years in prison, five years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides a mandatory minimum sentence of two years in prison, one year 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; Acting Assistant Attorney General Ciraolo of the Justice Department’s Tax Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Boston Field Division, made the announcement. The case is being prosecuted by Senior Litigation Counsel Corey J. Smith of the Department of Justice’s Tax Division.
Two Austinites Sentenced to Ten Years in Federal Prison for Role in Synthetic Marijuana Distribution SchemeRead the Press Release
In Austin, two brothers were both sentenced to ten years in federal prison for their roles in an Austin-based synthetic cannabinoid distribution operation announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit and FBI Special Agent in Charge Christopher H. Combs.
During yesterday’s sentencing hearing, United States District Judge Lee Yeakel also ordered that 48–year-old Hussain Sohani and 40-year-old Hasan Sohani be placed on supervised release for a period of three years after completing their prison terms.
The Sohani brothers were among 21 defendants convicted as part of Operation Synergy. The defendants all entered guilty pleas to federal charges related to the distribution of synthetic cannabinoids. During this investigation, authorities seized over 1,000 pounds of synthetic cannabinoids. Evidence gathered during the investigation revealed that they distributed at least that amount of synthetic cannabinoids from 2011 until June 2013.
Synthetic cannabinoids, also known as synthetic marijuana, “Spice,” “K2,” or “Kush,” comprise a large family of chemically unrelated structures functionally similar to THC, the primary psychoactive ingredient in organic marijuana. When ingested, synthetic cannabinoids produce psychoactive effects that are similar to the effects of THC, but often with pronounced and dangerous side-effects.
Synthetic cannabinoid products consist of organic plant matter that is sprayed with a mixture of acetone and synthetic cannabinoid chemical compounds. These chemicals are unregulated, often produced in China, and imported to the United States where they are then applied to organic plant matter to render them ingestible by smoking. Generally, the product is packaged in foil baggies which falsely state that the product is “herbal incense” and “not for human consumption” in an attempt to avoid prosecution. The product may be sold in brick and mortar “smoke shops,” convenience stores, adult book stores, as well as, over the Internet. Synthetic cannabinoid products are marketed under many different brand names, including those mentioned above, as well as, “Scooby Snax,” “Paradise,” “Mad Monkey,” “Sexy Monkey,” and “Devil Eye,” These are chemical substances that are, to the user, completely unknown and that pose potentially serious health risks.
“The use and devastating effects of synthetic cannabinoids is a growing problem. It is draining medical resources; occupying the police departments; and having devastating physical and psychological effects on those who use the drugs,” stated United States Attorney Richard Durbin.
Zikar R. Ali, owner of three locations of Kash Tobacco & Novelties in Austin, and 15 co-defendants have been sentenced for their roles in this synthetic cannabinoid distribution operation. Those sentences handed down range from five years imprisonment to probation. Two co-defendants—Syed Ali and Ram Sapkota--are awaiting sentencing dates.
This case resulted from an investigation by the Drug Enforcement Administration and the Federal Bureau of Investigation together with the Internal Revenue Service-Criminal Investigation, Immigration and Customs Enforcement - Homeland Security Investigations, U.S. Border Patrol, Austin Police Department, the Texas Department of Public Safety, Texas Attorney General’s Office, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Williamson County Constables Office-Precinct 2, Bastrop County Sheriff’s Office and the Texas Alcoholic Beverage Commission. Assistant United States Attorneys Mark Marshall and Daniel Castillo prosecuted this case on behalf of the Government.
Three sentenced in Maryland to West Virginia heroin trafficking networkRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three individuals were sentenced in federal court today for their role in a multi-state heroin trafficking operation based in Baltimore, Maryland, United States Attorney William J. Ihlenfeld, II, announced.
The defendants sentenced today participated in a drug trafficking network in which a large group of individuals repeatedly traveled across state lines to the Baltimore area to procure heroin. The individuals then returned to various locations in Maryland, West Virginia, Virginia, and Pennsylvania to redistribute and sell the drug. The operation was interrupted in June 2015 by a 163-count federal indictment targeting 41 defendants.
Steward Eugene Whitehead, 29, of Inwood, West Virginia, pled guilty in September 2015 to one count of “Use of a Telephone to Facilitate the Distribution of Heroin” and one count of “Interstate Travel in Aid of Racketeering.” He was sentenced today to 30 months in prison on each count. The sentences will run consecutively for a total of 60 months in prison.
James Francis Hansen, Jr., 48, of Berkeley Springs, West Virginia, was sentenced today to 24 months in prison. He pled guilty in September 2015 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.”
Michelle Lynn Warnick, 33, of Kearneysville, West Virginia, pled guilty in September 2015 to one count of “Use of a Telephone to Facilitate the Distribution of Heroin” and one count of “Interstate Travel in Aid of Racketeering.” She was sentenced today to 15 months in prison on each count. The sentences will run concurrently for a total of 15 months in prison.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
Chief U.S. District Judge Gina M. Groh presided.
Tampa Man Sentenced to More Than Five Years for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday today sentenced Moises Linares-Pantaleon (62, Tampa) to five years and five months in federal prison for credit card fraud and identity theft. The Court also ordered him to pay $174,336.22 in restitution to the victims of his crimes. He pleaded guilty on September 10, 2015.
According to court documents, Pantaleon used stolen credit and debit card account numbers to manufacture counterfeit credit cards. He then used those counterfeit credit cards at various retailers throughout Hernando, Pasco, and Hillsborough counties to purchase gift cards and other items. Pantaleon was captured by surveillance cameras making purchases with counterfeit credit cards more than 40 times between 2012-2014.
In April 2013, investigators learned of a debit card breach at the Tyndall Federal Credit Union (FCU) in Bay County. According to Bay County Sheriff’s deputies, 12 account holders from FCU suffered fraudulent charges on their debit cards. These charges were made at Target stores in Pasco County. Tyndall FCU sustained a loss of more than $168,000 as a result of its customers’ debit card information being stolen. Deputies from the Pasco County Sherriff’s Office obtained video and still images from the locations where the Tyndall FCU debit cards had been used. In those images, Pantaleon can be seen using cloned credit cards with the stolen account numbers from five of the compromised Tyndall FCU accounts.
On December 20, 2013, agents executed a federal search warrant at Pantaleon’s residence. Among other things, the agents seized 25 gift cards, a counterfeit driver’s license, 6 counterfeit credit cards, and a thumb drive containing 15 unauthorized credit and/or debit card numbers. The software for running a magnetic card/writer, a square credit card reader, and approximately $2,045 in cash were also seized from the home.
This case was investigated by the United States Secret Service (USSS), the Florida Department of Law Enforcement, the Tampa Police Department, the Pasco County Sherriff’s Office, and the Hernando County Sheriff’s Office as part of the USSS’s Financial Investigative Strike Team (FIST). It was prosecuted by Assistant United States Attorney Mandy Riedel.
Tampa Coin Dealer Sentenced for Conspiracy to Commit Bank FraudRead the Press Release
Tampa, Florida – United States District Judge Charlene Edwards Honeywell has sentenced Mark Yaffe (55, Tampa) to 20 months in federal prison for conspiracy to commit bank fraud. As part of the sentence, the Court also ordered Yaffe to pay $3,049,581 in restitution to the bank he had defrauded.
According to court documents, Yaffe was vice-president and principal of National Gold, Exchange, Inc. (NGE), a Tampa-based company in the business of warehousing, retailing, and trading rare coins. NGE entered into a series of loan agreements with Sovereign Bank in which Sovereign agreed to lend up to approximately $35 million to NGE, secured by NGE’s assets. Yaffe signed the loan agreements in his capacity as vice-president of NGE.
The loan agreements put a limit on how much of the $35 million NGE could borrow at any given time, using a formula that considered the value of NGE’s assets. To make the calculation of the formula possible, NGE was required to submit a monthly borrowing base report, along with back-up documents, regarding the value of its assets. The loan agreements also gave Sovereign the right to perform unannounced audits of NGE to verify that NGE had sufficient collateral.
On July 10, 2009, Sovereign began an unannounced audit at NGE. In connection with the audit, on July 11, 2009, Yaffe provided members of Sovereign’s audit team with a false and fraudulent borrowing base report, falsely inflating the value of NGE’s assets. Yaffe included in this report fictitious sales to entities that he knew did not exist, including $2,221,975 in false sales to Rifkin Management, Inc., and $2,623,308 in false sales to Tudor Trust. Yaffe also submitted false invoices to Sovereign purporting to evidence these fictitious sales, and provided contact information for Rifkin and Tudor Trust that was false. An NGE employee reported that Yaffe had instructed the employee to lie to Sovereign officials about the fictitious customers and sales. Yaffe then caused approximately $3,049,581 to be transferred out of two NGE bank accounts that were part of Sovereign’s collateral for the loan agreements, and could have been used to repay NGE’s debts.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Trial Attorney Timothy Loper and Assistant United States Attorney Rachelle DesVaux Bedke.
Suspended APS Kindergarten Teacher Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE –Albuquerque, N.M., resident Joshua Weitz, 39, was arraigned this morning in federal court on a six-count indictment charging him with distribution and possession of visual depictions of minors engaged in sexually explicit conduct. During this morning’s proceedings, Weitz entered a not guilty plea to the indictment. Weitz remains on conditions of release which include the condition that he reside at a halfway house under pretrial supervision pending trial.
The federal indictment filed on Dec. 2, 2015, charges Weitz with four counts of distribution of child pornography from Oct. 11, 2015 through Oct. 22, 2015, and two counts of possession child pornography from Dec. 14, 2014 through Nov. 4, 2015 and Feb. 4, 2013 through Nov. 4, 2015. The indictment alleges that Weitz committed the crimes in Bernalillo County, N.M.
Weitz was arrested Nov. 11, 2015, on a criminal complaint alleging that he distributed, received and possessed child pornography between Oct. 11, 2015 and Oct. 22, 2015, in Bernalillo County. At the time, Weitz allegedly committed these offenses while he was employed as a kindergarten teacher by the Albuquerque Pubic Schools (APS). APS suspended Weitz’s employment following his arrest in early Nov. 2015, on related state charges.
According to the criminal complaint, the investigation into Weitz began on Oct. 11, 2015, when an agent of the New Mexico Internet Crimes Against Children (ICAC) Task Force identified a computer with a specific IP address that was being used to share child pornography files. The criminal complaint alleges that between Oct. 11, 2015 and Oct. 22, 2015, the investigators were able to download a number of child pornography files from the computer at the IP address.
The criminal complaint alleges that further investigation revealed that the aforementioned IP address was subscribed to Weitz. On Nov. 4, 2015, a state court search warrant was executed at Weitz’ residence, and ICAC Task Force agents found Weitz allegedly in possession of a computer containing 40 files of child pornography. Weitz was arrested that day on related state charges, which have since been dismissed in favor of federal prosecution.
If convicted of the federal distribution or receipt of child pornography charges, Weitz faces a mandatory minimum of five years and a maximum of 20 years in prison. If convicted of the federal possession of child pornography, he faces a maximum of 20 years in prison. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the New Mexico ICAC Task Force, the Bernalillo County Sheriff’s Office, the Albuquerque office of the FBI and the New Mexico Regional Computer Forensics Laboratory with assistance from the New Mexico Office of the Attorney General. Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Sovereign Citizen Sentenced to Ten Years in Federal Prison for Retaliating Against a Federal Judge and ProsecutorRead the Press Release
In Houston today, a federal judge sentenced 45–year-old Tyrone Eugene Jordan, a sovereign citizen residing in Houston, to ten years in federal prison for retaliating against a federal judge and prosecutor by filing false liens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Perrye K. Turner, Houston Division.
In addition to the prison term, United States District Judge Gray H. Miller ordered that Jordan be placed on supervised release for a period of three years after completing his prison term.
On July 15, 2015, a federal jury convicted Jordan of three counts of retaliation against a federal officer or employee by false claim. Evidence and trial testimony revealed that in October 2014, Jordan filed a fraudulent lien--a Uniform Commercial Code (UCC) Financial Statement--with the Texas Secretary of State which claimed that a federal prosecutor in the Southern District of Texas owed the defendant $6,534,500. Furthermore, in January 2015, the defendant knowingly filed two separate fraudulent documents (Affidavit of Obligation Commercial Lien) with the Harris County Clerk’s Office—Real Property Department claiming that the federal prosecutor mentioned above and a U.S. District Judge in the Southern District of Texas were Lien Debtors to the defendant. Testimony also revealed that the defendant filed the fraudulent documents against the victims in retaliation for their roles as prosecutor and sitting judge in a prior criminal case involving the defendant.
“Jordan’s sole purpose was to harass these public servants for having done their jobs. Such malicious harassment of public officials is unacceptable. Public officials should not have to suffer such harassment simply because they work to uphold the law,” stated United States Attorney Richard L. Durbin, Jr.
In April 2010, Jordan was convicted of conspiracy to commit money laundering and conspiracy to commit alien smuggling following a jury trial in Corpus Christi. He was subsequently sentenced to 63 months in federal prison followed by three years of supervised release. On March 9, 2015, Jordan was arrested by federal authorities for violating terms of his supervised release, namely, filing two false liens. In addition to the prison term assessed for retaliating against a federal judge and prosecutor, Judge Miller ordered that Jordan serve ten months in federal prison for violating his supervised release conditions stemming from his April 2010 federal conviction.
This case was investigated by the FBI together with the United States Marshals Service for the Southern District of Texas. Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Sixteen Additional FIFA Officials Indicted for Racketeering Conspiracy and CorruptionRead the Press Release
A 92-count superseding indictment was unsealed earlier today in federal court in Brooklyn, New York, charging an additional 16 defendants with racketeering, wire fraud and money laundering conspiracies, among other offenses, in connection with their participation in a 24-year scheme to enrich themselves through the corruption of international soccer. The superseding indictment also includes additional charges for seven of the defendants still pending extradition following the return of the original indictment last May. The guilty pleas of eight defendants – including Jeffrey Webb, Alejandro Burzaco and José Margulies, three of the defendants indicted last May – were also announced today.
The new defendants charged in the superseding indictment include high-ranking officials of FIFA, the organization responsible for the regulation and promotion of soccer worldwide, as well as high-ranking officials of other soccer governing bodies that operate under the FIFA umbrella. Alfredo Hawit and Juan Ángel Napout – the current presidents of CONCACAF and CONMEBOL, as well as current FIFA vice presidents and executive committee members – are among the 16 additional soccer officials charged with racketeering and bribery offenses. CONCACAF and CONMEBOL are two of FIFA’s six continental confederations. The new defendants also include Marco Polo del Nero and Ricardo Teixeira, the current and former presidents of the Brazilian soccer federation, both of whom are also former members of the FIFA executive committee, as well as José Luís Meiszner and Eduardo Deluca, the current and former general secretaries of CONMEBOL. Within UNCAF, the Central American regional soccer union operating within CONCACAF, the charges in the superseding indictment name the current and/or former presidents of nearly every country in the region: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. Taken together, the 27 defendants in the superseding indictment are alleged to have engaged in a number of schemes all designed to solicit and receive well over $200 million in bribes and kickbacks to sell lucrative media and marketing rights to international soccer tournaments and matches, among other valuable rights and properties.
The charges were announced by Attorney General Loretta E. Lynch, FBI Director James B. Comey, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Chief Richard Weber of Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Erick Martinez of the IRS-CI Los Angeles Field Office.
Early this morning, Swiss authorities in Zurich arrested two of the defendants charged in the superseding indictment – Hawit and Napout – at the request of the United States. Also this morning, a search warrant was executed at Media World, a sports marketing company based in Miami.
The new charges unsealed today bring the total number of individuals and entities charged to date to 41. Of those, 12 individuals and two sports marketing companies have already been convicted as a result of the ongoing investigation. The convicted defendants have agreed to pay more than $190 million in forfeiture. In addition, more than $100 million has been restrained in the United States and abroad in connection with the alleged criminal activity. The United States has issued mutual legal assistance requests seeking the restraint of assets located in 13 countries around the world.
“The Department of Justice is committed to ending the rampant corruption we have alleged amidst the leadership of international soccer – not only because of the scale of the schemes, or the brazenness and breadth of the operation required to sustain such corruption, but also because of the affront to international principles that this behavior represents,” said Attorney General Lynch. “The message from this announcement should be clear to every culpable individual who remains in the shadows, hoping to evade our investigation: You will not wait us out. You will not escape our focus.” Attorney General Lynch extended her grateful appreciation to the authorities of the government of Switzerland for their continuing outstanding assistance and collaboration in this investigation, and to the authorities in a number of other countries, including Brazil and Colombia, for their assistance as well.
“For decades, these defendants used their power as the leaders of soccer federations throughout the world to create a web of corruption and greed that compromises the integrity of the beautiful game,” said Director Comey. “I want to thank all the agencies for their hard work and for showing the world that we do not tolerate this criminal activity.”
“The charges unsealed today send a clear message to those who corrupted a sport beloved by millions to satisfy their own greed: We are determined to put a stop to bribery and corruption in international soccer and to make room for a new era of integrity and reform,” said U.S. Attorney Capers. “This indictment is the latest step in that effort, but our work is not done. While our investigation continues at home, we also look forward to continuing our collaboration with our international partners, including in particular the Swiss authorities, because there is so much yet to be done.” Mr. Capers extended his thanks to the agents, analysts, and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS-CI Los Angeles Field Office, as well as their colleagues in the United States and abroad, for their continuing tremendous effort in this case. Mr. Capers also thanked the U.S. Marshals Service for its continuing assistance.
“The brazenness with which the individuals indicted today breached the integrity of the U.S. financial system to promote and conceal their criminal schemes is quite alarming,” said Chief Weber. “While it is one of the most complex worldwide financial investigations ever conducted, it is also an eye opener to everyone that such greed and corruption could be hiding in plain sight within the world’s most popular sport. By conspiring to enrich themselves through bribery and kickback schemes relating to media and marketing rights, the defendants undermined the process of fair and open competition, corrupting the beautiful game for their own personal gain.”
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Overview of the Superseding Indictment
As alleged in the superseding indictment, FIFA and its six continental confederations – including CONCACAF, headquartered in the United States, and CONMEBOL, the confederation headquartered in South America – together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide.
As in the original indictment, the superseding indictment alleges that, between 1991 and the present, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering. Two generations of soccer officials abused their positions of trust for personal gain, frequently through an alliance with unscrupulous sports marketing executives who shut out competitors and kept highly lucrative contracts for themselves through the systematic payment of bribes and kickbacks. All told, the soccer officials are charged with conspiring to solicit and receive more than $200 million in bribes and kickbacks in exchange for their official support of the sports marketing executives who agreed to make the unlawful payments.
The schemes alleged in the original indictment related to the solicitation and receipt of bribes and kickbacks by soccer officials from sports marketing executives in connection with the commercialization of the media and marketing rights associated with various soccer matches and tournaments, as well as schemes related to the payment and receipt of bribes and kickbacks in connection with the sponsorship of the Brazilian soccer federation by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.
The new allegations in the superseding indictment relate to a series of bribery schemes in connection with multiple cycles of FIFA World Cup qualifiers and international friendly matches involving six Central American member associations within UNCAF; a bribery scheme implicating many top CONMEBOL officials relating to the sale of broadcasting rights to the CONMEBOL Copa Libertadores over an extended period; and a scheme by an Argentinian sports marketing company to obtain various rights properties from CONCACAF by paying bribes to three Central American soccer officials to cause them to exert their influence in favor of the company.
The 16 New Defendants
As set forth in the superseding indictment, the 16 newly indicted defendants are all current or former soccer officials who acted at various times in a fiduciary capacity within FIFA and one or more of its constituent organizations:
CONCACAF Region Officials
- Alfredo Hawit: Current FIFA vice president and Executive Committee member and CONCACAF president. Former CONCACAF vice president and Honduran soccer federation president.
- Ariel Alvarado: Current member of the FIFA Disciplinary Committee. Former CONCACAF Executive Committee member and Panamanian soccer federation president.
- Rafael Callejas: Current member of the FIFA Television and Marketing Committee. Former Honduran soccer federation president and President of the Republic of Honduras.
- Brayan Jiménez: Current Guatemalan soccer federation president and member of the FIFA Committee for Fair Play and Social Responsibility.
- Rafael Salguero: Former FIFA Executive Committee member and Guatemalan soccer federation president.
- Héctor Trujillo: Current Guatemalan soccer federation general secretary and judge on the Constitutional Court of Guatemala.
- Reynaldo Vasquez: Former Salvadoran soccer federation president.
CONMEBOL Region Officials
- Juan Ángel Napout: Current FIFA vice president and Executive Committee member and CONCACAF president. Former Paraguayan soccer federation president.
- Manuel Burga: Current member of the FIFA Development Committee. Former Peruvian soccer federation president.
- Carlos Chávez: Current CONMEBOL treasurer. Former Bolivian soccer federation president.
- Luís Chiriboga: Current Ecuadorian soccer federation president and member of the CONMEBOL executive committee.
- Marco Polo del Nero: Current president of the Brazilian soccer federation. Announced resignation from FIFA Executive Committee on Nov. 26, 2015.
- Eduardo Deluca: Former CONMEBOL general secretary.
- José Luis Meiszner: Current CONMEBOL general secretary.
- Romer Osuna: Current member of the FIFA Audit and Compliance Committee. Former CONMEBOL treasurer.
- Ricardo Teixeira: Former Brazilian soccer federation president and FIFA Executive Committee member.
The Convicted Defendants
The following defendants pleaded guilty under seal and agreed to forfeit more than $40 million:
On May 26, 2015, Zorana Danis, the co-founder and owner of International Soccer Marketing Inc., a New Jersey-based sports marketing company, waived indictment and pleaded guilty to a two-count information charging her with wire fraud conspiracy and filing false tax returns. As part of her plea, Danis agreed to forfeit $2 million.
On Nov. 9, 2015, Fabio Tordin, the former CEO of Traffic Sports USA Inc. and currently an executive with Media World LLC, a Miami-based sports marketing company, waived indictment and pleaded guilty to a four-count information charging him with three counts of wire fraud conspiracy and tax evasion. As part of his plea, Tordin agreed to forfeit more than $600,000.
On Nov. 12, 2015, Luis Bedoya, a member of the FIFA Executive Committee, a CONMEBOL vice president and, until last month, the president of the Federación Colombiana de Fútbol, the Colombian soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy. As part of his plea, Bedoya agreed to forfeit all funds on deposit in his Swiss bank account, among other funds.
On Nov. 16, 2015, Alejandro Burzaco, the former general manager and chairman of the board of Torneos y Competencias S.A., an Argentinian sports marketing company, pleaded guilty to racketeering conspiracy, wire fraud conspiracy, and money laundering conspiracy. As part of his plea, Burzaco agreed to forfeit more than $21.6 million.
On Nov. 17, 2015, Roger Huguet, the CEO of Media World and its parent company, waived indictment and pleaded guilty to two counts of wire fraud conspiracy and one count of money laundering conspiracy. As part of his plea, Huguet agreed to forfeit over $600,000.
On Nov. 23, 2015, Jeffrey Webb, a former FIFA vice president and Executive Committee member, CONCACAF president, Caribbean Football Union Executive Committee member and Cayman Islands Football Association president, pleaded guilty to racketeering conspiracy, three counts of wire fraud conspiracy and three counts of money laundering conspiracy. As part of his plea, Webb agreed to forfeit more than $6.7 million.
On Nov. 23, 2015, Sergio Jadue, a vice president of CONMEBOL and, until last month, the president of the Asociación Nacional de Fútbol Profesional de Chile, the Chilean soccer federation, waived indictment and pleaded guilty to a two-count information charging him with racketeering conspiracy and wire fraud conspiracy. As part of his plea, Jadue agreed to forfeit all funds on deposit in his U.S. bank account, among other funds.
On Nov. 25, 2015, José Margulies, the controlling principal of Valente Corp. and Somerton Ltd, who served as an intermediary who facilitated illicit payments between sports marketing executives and soccer officials, pleaded guilty to racketeering conspiracy, wire fraud conspiracy and two counts of money laundering conspiracy. As part of his plea, Margulies agreed to forfeit more than $9.2 million.
As announced last May, all money forfeited by the defendants is being held in reserve to ensure its availability to satisfy any order of restitution entered at sentencing for the benefit of any individuals or entities that qualify as victims of the defendants’ crimes under federal law.
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The indicted and convicted defendants face maximum terms of incarceration of 20 years for the Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges. In addition, Tordin and Danis face maximum terms of five and three years in prison, respectively, for the tax charges. Each defendant also faces mandatory restitution, forfeiture and a fine.
The superseding indictment and guilty pleas unsealed today are assigned to the U.S. District Judge Raymond J. Dearie of the Eastern District of New York.
The government’s investigation is ongoing.
The charges and guilty pleas announced today are part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’s New York Field Office and the IRS-CI Los Angeles Field Office. The work in the U.S. Attorney’s Office involves prosecutors from the National Security and Cybercrime Section, the Organized Crime and Gang Section, the Business and Securities Fraud Section and the Public Integrity Section. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section and the Fraud Section, as well as from INTERPOL Washington.
The charges and guilty pleas announced today are being prosecuted by Assistant United States Attorneys Evan M. Norris, Amanda Hector, Darren A. LaVerne, Samuel P. Nitze, M. Kristin Mace, Paul Tuchmann, Keith D. Edelman, Tanya Hajjar and Brian D. Morris of the Eastern District of New York.
The Newly-Indicted Defendants:
ARIEL ALVARADO
Age: 56
Nationality: Panama
MANUEL BURGA
Age: 58
Nationality: Peru
RAFAEL CALLEJAS
Age: 72
Nationality: Honduras
CARLOS CHÁVEZ
Age: 57
Nationality: Bolivia
LUÍS CHIRIBOGA
Age: 69
Nationality: Ecuador
MARCO POLO DEL NERO
Age: 74
Nationality: Brazil
EDUARDO DELUCA
Age: 75
Nationality: ARGENTINA
ALFREDO HAWIT
Age: 64
Nationality: Honduras
BRAYAN JIMÉNEZ
Age: 61
Nationality: Guatemala
JOSÉ LUÍS MEISZNER
Age: 69
Nationality: Argentina
JUAN ÁNGEL NAPOUT
Age: 57
Nationality: Paraguay
ROMER OSUNA
Age: 72
Nationality: Bolivia
RAFAEL SALGUERO
Age: 70
Nationality: Guatemala
RICARDO TEIXEIRA
Age: 68
Nationality: Brazil
HÉCTOR TRUJILLO
Age: 62
Nationality: Guatemala
REYNALDO VASQUEZ
Age: 59
Nationality: El Salvador
The Convicted Defendants:
LUIS BEDOYA
Age: 56
Nationality: Colombia
ALEJANDRO BURZACO
Age: 51
Nationality: Argentina
ZORANA DANIS
Age: 52
Nationality: Belgium
ROGER HUGUET
Age: 52
Nationality: USA, Spain
SERGIO JADUE
Age: 36
Nationality: Chile
JOSÉ MARGULIES
Age: 76
Nationality: Brazil
FABIO TORDIN
Age: 50
Nationality: Brazil
JEFFREY WEBB
Age: 51
Nationality: Cayman Islands
E.D.N.Y. Docket Numbers:
United States v. Zorana Danis, 15 Cr. 240 (RJD)
United States v. Jeffrey Webb et al., 15 Cr. 252 (RJD)
United States v. Fabio Tordin, 15 Cr. 564 (RJD)
United States v. Luis Bedoya, 15 Cr. 569 (RJD)
United States v. Sergio Jadue, 15 Cr. 570 (RJD)
United States v. Roger Huguet, 15 Cr. 585 (RJD)
Sex Trafficker Gets 30 Years in PrisonRead the Press Release
HOUSTON – Five people have been sentenced for their respective roles in a sex trafficking of minors conspiracy in which young females were forced and/or coerced to engaged in commercial sex acts, announced U.S. Attorney Kenneth Magidson. Emanuel Dandre Wade, 26, Charmaine Henderson, 27, Ashley Shawntel Williams, 22, and Darquesha Perry, 28, all pleaded guilty to varying offenses on March 23, 2015, while a fifth defendant - Denzell Parrish, 24, of Houston, entered his plea in August 2015.
Today, U.S. District Judge Gray Miller sentenced Wade, of Houston, to a total of 360 months in prison for his two convictions of sex trafficking of minors. The sentence will be immediately followed by 10 years of supervised release. In handing down the sentence, Judge Miller noted that the sentence of 360 months reflected the seriousness of the crimes committed by Wade. Parrish was also sentenced today. He received 72 months in prison for his conviction of conspiracy to commit sex trafficking of minors to be followed by 10 years of supervised release.
The others have already been sentenced. Henderson, previously of Houston and now of Metarie, Louisiana, and Williams, of Houston, both entered guilty pleas to conspiracy to commit sex trafficking. Henderson also pleaded to one count of sex trafficking of minors. Henderson was previously sentenced to 48 months in federal prison, while Williams received a 60-month-term of imprisonment. Perry, of Houston, admitted to misprision of a felony and received eight months of home confinement.
Wade and Henderson claimed to own a modeling agency, which, in reality, was a front for prostitution. Wade admitted he coerced minor females to engage in prostitution under the initial guise of “modeling.” He took pictures of the minors and advertised their services on websites.
One of the girls was continually beaten by Wade and forced to continue to prostitute. She indicated that on one occasion, she was beaten for simply giving Wade the wrong number of cigarettes. She was eventually recovered by law enforcement.
After the victim’s rescue, Williams contacted her and lied to her, stating she was no longer associating with Wade and to come “hang out” with her. She then took her to a hotel room where Wade was waiting. The victim claimed Wade beat her again, but was eventually able to contact her mother who took her to a hospital to receive treatment.
Wade had also reached out to another victim via a social networking site under the guise of looking for a model. He eventually coerced her into prostitution and kept all of the monies she earned.
Williams admitted to transporting victims to “dates” in her vehicle and had rented motel rooms for the commercial sex acts. She knew the women were minors.
Perry had also provided transportation and allowed Wade to move into her apartment while running his criminal enterprise.
Parrish admitted to running Wade’s enterprise with Henderson for 17 days while Wade was incarcerated. He also knew the particular female recovered on Feb. 27, 2014, was a minor. Parrish was aware that Wade perpetrated acts of violence upon some of the victims caused to engage in commercial sex on his behalf.
Collectively, these individuals were responsible for 5 minors being caused to engage in commercial sex. The criminal enterprise lasted from May/June 2013 until Feb. 27, 2014, when Henderson was arrested and one of the minor victims was recovered.
Perry and Williams were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Wade, Parrish and Henderson will remain in custody.
The charges are the result of an investigation conducted by the Houston FBI Innocence Lost Task Force, which includes personnel from the FBI, Houston Police Department and the Harris County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
Scranton Woman Pleads Guilty in Federal Court to Acting as Getaway Driver for Two Area Bank RobberiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Stephanie Ann Ware, age 25, of Scranton, pleaded guilty yesterday to aiding and abetting the robbery of two banks by acting as a getaway driver.
According to U.S. Attorney Peter Smith, Ware pleaded guilty before United States District Court Judge Robert D. Mariani in Scranton. Ware admitted to charges contained in a Criminal Information alleging that she aided in the commission of the following:
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the robbery of the NBT Bank, Dickson City, Pennsylvania, on July 25, 2014;
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the robbery of the Mauch Chunk Trust Bank, Tamaqua, Pennsylvania, on August 26, 2014;
The case against Lee Sokalsky, who was also charged with the robberies, is pending trial.
The case was investigated by the Federal Bureau of Investigation, the Hazleton, Rush Township, and Dickson City Police Departments, the Pennsylvania State Police, and the Scranton Police Department. Prosecution is assigned to Assistant United States Attorney John Gurganus.
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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty for each robbery is 20 years’ imprisonment. Ware faces a term of supervised release following imprisonment, and a fine if convicted. 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 defendants, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Savannah Woman Charged in Health Care Fraud SchemeRead the Press Release
SAVANNAH, GA -- BARBARA J. WALLACE, 50, whose business, MBA Diabetic Footwear Solutions (MBA), was located in Savannah, Georgia, and enrolled in the Georgia Medicaid program as a provider, was charged with eight counts of health care fraud in an indictment returned by a federal grand jury sitting in Savannah, Georgia.
The indictment alleges that WALLACE operated MBA, and submitted and caused to be submitted, false and fraudulent claims to Medicaid between April 2010 and June 2014 by representing that a physician had actually authorized and approved patients to receive orthotic equipment when such items had not been ordered by a physician. It also alleged that WALLACE submitted and caused to be submitted, false and fraudulent claims to Medicaid for orthotic equipment that was never delivered to Medicaid patients.
United States Attorney Edward J. Tarver said, “Prosecuting health care fraud remains a top priority in the Southern District of Georgia. We will vigorously investigate and prosecute those who seek to enrich themselves through fraudulent healthcare schemes.”
“This indictment should act as a reminder that the Office of Inspector General is committed to pursuing all allegations of health care fraud,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Health care providers who choose to bill for services that were never provided will soon find themselves the subject of an investigation.”
Georgia Attorney General Sam Olens said, “My office has and will continue to aggressively prosecute Medicaid fraud here in Georgia. We will continue to protect Georgia taxpayers’ resources to the fullest possible extent from those who seek to defraud the Medicaid system.”
J. Britt Johnson, Special Agent on Charge, FBI Atlanta Field Office, stated: "The investigation and resulting federal indictment of Ms. Wallace alleges various health care fraud violations spanning a four-year period. These cases call for combined agency resources and efforts and the FBI is committed toward partnering with those agencies in identifying and presenting for prosecution those who would engage in this type of criminal activity.”
If convicted, WALLACE faces a maximum penalty of ten years in prison for each of the eight counts of health care fraud. Each of these charges also carries a fine of up to $250,000. Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by The United States Health and Human Services Office of Inspector General, the FBI, the Georgia Medicaid Fraud Control Unit, and the South Carolina Medicaid Fraud Control Unit. Assistant United States Attorney Scarlett S. Nokes, and Georgia Assistant Attorney General Steven Lee are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Santa Fe Man Arraigned on Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Darryl J. Gutierrez, 60, of Santa Fe, N.M., was arraigned yesterday on an eleven-count indictment alleging federal tax charges, announced U.S. Attorney Damon P. Martinez and Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Gutierrez was arrested on Dec. 2, 2015, on the indictment which was filed on Nov. 5, 2015. Gutierrez made his initial appearance in federal court in Albuquerque, N.M., yesterday. During those proceedings, Gutierrez entered a not guilty plea and was released on conditions of release and under pretrial supervision pending trial.
Count 1 of the indictment charges Gutierrez with evading his federal tax obligations during tax years 2000 through 2009 by falsely claiming tax refunds totaling $173,526.00, when he was not entitled any tax refunds but instead owed approximately $125,624.00 in income taxes. According to the indictment, Gutierrez’s alleged tax liability increased the amount of his false claims to approximately $299,150.00, exclusive of interest and penalties. Counts 2 through 11 of the indictment allege that Gutierrez subscribed and filed individual tax returns for calendar years 2000 through 2009 that were materially false. Each of the charges alleges that Gutierrez’s tax returns falsely reported wages earned and other income during those calendar years.
If convicted, Gutierrez faces a statutory maximum penalty of five years in federal prison on the tax evasion charge and a statutory maximum penalty of three years in federal prison on the subscribing false tax returns charges. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Reeve L. Swainston.
Ringleader Sentenced in $7.4 Million Mortgage Fraud Conspiracy that Targeted Northern Virginia Hispanic CommunityRead the Press Release
ALEXANDRIA, Va. – Rosita Vilchez, 41, who was a fugitive in Lima, Peru, until she was extradited to the United States in June 2015, was sentenced today to 66 months in prison for leading a wide-ranging mortgage fraud conspiracy that targeted hundreds of victims in the northern Virginia Hispanic community. Vilchez was also ordered to serve a five-year term of supervised release after her prison term. A forfeiture money judgment of more than $5 million was previously entered against Vilchez.
The mortgage fraud scheme, which operated between August 2005 and August 2007, generated nearly $7.4 million in fraudulent proceeds and caused losses of more than $15 million to lenders, most of which were federally insured.
Vilchez, who was described in court as the kingpin of the conspiracy, pleaded guilty on Aug 18, 2015. According to court documents, Vilchez operated a real estate firm (Vilchez & Associates), a title insurance company (Pino Title), and the branch of a loan brokerage business (Mount Vernon Capital Corporation) in Manassas, Va., all of which she used to carry out the fraud scheme. Vilchez and her co-conspirators submitted fraudulent loan documents that falsified their real estate clients’ income, employment, and assets so that they could obtain loans to buy property through Vilchez & Associates, which received commissions of as much as six percent of the selling price of every home.
The Vilchez conspiracy targeted Hispanic clients who were not proficient in spoken or written English, and the borrowers often were unable to read their loan documents and were unaware of the false statements submitted to the lenders on their behalf. According to court filings, the fraudulent loan applications made it possible for the borrowers to qualify for loans they could not afford to repay. Most of these borrowers later lost their homes to foreclosure. To date, thirteen defendants have been convicted in connection with this conspiracy. Vilchez’s brother, Armando Pino, who was also charged in the conspiracy, is set for trial on Feb. 8, 2016.
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 Matthew Alessandrino, FDIC Assistant Inspector General for Investigations, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys James P. Gillis and Julia K. Martinez 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. 1:12-cr-394.
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Portsmouth Man Sentenced for Role in Heroin Distribution OperationRead the Press Release
NORFOLK, Va. – Eddie K. Mazell, II, 30, of Portsmouth, was sentenced today to 48 months in prison for possession with intent to distribute heroin.
Mazell pleaded guilty on Sept. 4, 2015. According to court documents, a canine unit from the Norfolk Police Department alerted on a Federal Express package for the presence of narcotics in April 2015. The package, which originated from southern California and was addressed to a residence in Portsmouth, was inspected and inside was a bulk size protein powder container with a package of approximately 500 grams of heroin. Norfolk Police Officers working with agents from the DEA coordinated a controlled delivery of the package to the recipient listed on the address label. Shortly after Mazell arrived at the address and took custody of the package he was arrested.
The investigation that followed revealed that over the six months preceding Mazell’s arrest, he made $292,000 in cash deposits to 22 different accounts. The account holders are from Arizona and California; Metamoros, Mexico, and Nogales, Mexico.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen.
This case was investigated by the DEA and the Norfolk Police Department. Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler 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. 2:15-cr-91.
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Port St. Lucie Man Sentenced for Dealing in Firearms Without A LicenseRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Colin Campbell Joseph Knight (25, Port St. Lucie) to two years and six months in federal prison for dealing in firearms without a license. He pleaded guilty on September 14, 2015.
According to court documents, between June 23, 2013, and August 22, 2014, Knight and his father, who is also named Colin Knight, collectively sold 113 firearms and made approximately $63,137 from these sales. During this period, neither Knight nor his father had a Federal Firearms License (FFL) authorizing them to lawfully engage in the business of dealing in firearms. In April 2014, law enforcement agents visited the Knights at their home in Kissimmee and informed them that their firearms activity appeared to be in violation of federal law. Both men also signed written notices advising them to cease and desist in the business of dealing in firearms until they obtained the appropriate FFL. Despite these warnings, they continued selling firearms.
On August 22, 2014, agents executed a federal search warrant at the Knights’ Kissimmee residence and recovered 26 firearms, along with records and bills of sale confirming that they were engaging in the ongoing sale of firearms without licenses.
On October 30, 2015, Judge Mendoza sentenced Knight’s father to one year in federal prison for dealing in firearms without a license.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Palm Bay Man Sentenced to 10 Years for Attempted Sexual Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Charles Martin Eberlen (61, Palm Bay) to 10 years in federal prison for attempted sexual enticement of a minor. In addition, the Court ordered him to serve a five-year term of supervision, and to register as a sex offender upon his release from prison. Eberlen pleaded guilty on September 14, 2015.
According to court documents, in February 2015, Eberlen communicated online with an individual he believed was a 14-year-old boy, but who was actually an undercover law enforcement officer. During one of the exchanges, Eberlen asked for a nude photograph of the “child.” On February 12, 2015, Eberlen agreed to meet the “child” in a convenience store parking lot in Brevard County so that he could have oral sex with him. When Eberlen arrived at the meeting place, he was arrested by agents.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.justice.gov/psc.
Northern District of Mississippi U.S. Attorney’s Office Collects $1,735,405.72 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
(OXFORD) - U.S. Attorney Felicia C. Adams announced today that the Northern District of Mississippi collected $1,735.405.72 in criminal and civil actions in Fiscal Year 2015. Of this amount, $1,527,555.12 was collected in criminal actions and $207,850.60 was collected in civil actions.
Additionally, the Northern District of Mississippi worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $18,242.56 in cases pursued jointly with these offices.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. The more than $23.1 billion in collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U. S. Attorney’s offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“During this time of economic recovery, these collections are more important than ever,” said U.S. Attorney Felicia C. Adams. “The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the federal treasury and for victims of federal crime. We will continue to hold accountable those who seek to profit from their illegal activities.”
This past December, the Northern District of Mississippi recovered $700,000.00 as part of a plea agreement in a criminal case brought against the defendant Leading Edge Aviation Services, Inc., an aircraft maintenance and repair company. The defendant pleaded guilty to improper storage of hazardous waste. As part of the plea agreement, the defendant also paid $275,000.00 to the Mississippi Department of Environmental Quality and $25,000 to the Association of State and Territorial Solid Waste Management Officials.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Additionally, the U.S. Attorney’s office in the Northern District of Mississippi, working with partner agencies and divisions, collected $335,365.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Northampton County Man Gets 50 Years in Prison for Child ExploitationRead the Press Release
ALLENTOWN - Brent S. Galletta, 43, of Nazareth, PA, was sentenced today to 50 years in prison, followed by a lifetime of supervised release, for using a facility and means of interstate commerce to attempt to entice an individual, whom he believed was seven-years old, to engage in illegal sexual activity. The jury found Galletta guilty on September 2, 2015 of that charge plus one count of transportation of child pornography and one count of possession of child pornography. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered Galletta to pay a $10,000 fine, and a $300 special assessment.
Galletta posted several advertisements on the website Craigslist.com seeking to find “pervy dads.” Galletta was attempting to find another man who had access to young children that he could abuse sexually. Galletta communicated with at least five separate individuals attempting to find such a target. The craigslist posting was brought to the attention of Agent Justin Leri of the Office of the Pennsylvania Attorney General. Agent Leri responded to Galletta’s Craigslist post in an undercover capacity and stated he had a seven-year old daughter. Galletta communicated with Agent Leri, believing him to be a father of a seven-year-old that would allow Galletta access to the child for sexual purposes. A meeting was arranged and Galletta showed up in a parking lot in South Whitehall Township, Pennsylvania in order to meet the seven-year old and her father. When he arrived he was arrested by Agent Leri. Galletta had over two dozen images of prepubescent girls in bathing suits on his mobile phone as well as three images depicting the sexual abuse of minors that he had deleted. Galletta also sent an image of child pornography to another man through the internet.
The case was investigated by the Federal Bureau of Investigation, and the Pennsylvania Attorney General's Office. It was prosecuted by Assistant United States Attorney Sherri A. Stephan.
Middle District of North Carolina U.S. Attorney’s Office Collects More Than $9.0 Million for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Greensboro, NC - U.S. Attorney Ripley Rand announced today that the United States Attorney’s Office for the Middle District of North Carolina collected $9,082,850.56 in criminal and civil actions during Fiscal Year 2015. Of this amount, $1,338,633.11 was collected in criminal actions and $7,744,217.45 was collected in civil actions.
The Middle District of North Carolina also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $58,749,483.17 in cases pursued jointly with these offices. Of this amount, $58,724,483.17 was collected in criminal actions and $25,000.00 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23 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. Attorneys’ offices and the main litigating divisions in that same period."The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“Our office is dedicated to recovering ill-gotten gains from fraud, drug offenses, and other crimes, and returning these funds and assets to victims and to the treasury,” said United States Attorney Rand. “In FY2015, our office collected more than three times its annual budget through criminal and civil actions and forfeiture, which is a significant benefit to taxpayers.”
As examples, this past year the Middle District of North Carolina reached settlements in the following cases:
USA v. Duke Energy Carolinas, LLC: Under a plea agreement with the United States (through the Department of Justice Environmental Crimes Section and USAOs for the Eastern, Middle and Western Districts of North Carolina) Duke Energy was ordered to pay $102,000,000.00 as a result of the February 2014 coal ash spill into the Dan River near Eden, NC. On May 14, 2015, $58.7 million of the total was paid to the Middle District of NC.
USA v. Renegade Holdings and Alternative Brands, Inc.: Settlement of USDA’s claim in bankruptcy netted $4,670,194.92.
Civil Health Care Fraud Recovery: The United States alleged that Dr. John Shen, owner of Albemarle Women’s Clinic, submitted claims for unnecessary ultrasounds. Shen paid $975,000 to settle the case in January 2015.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Middle District of North Carolina working with partner agencies and divisions, collected $4,705,670 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
###Middle District of Georgia U.S. Attorney's Office Collects $14,874,864.54 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
MACON – Acting U.S. Attorney G.F. Peterman, III announced today that the Middle District of Georgia collected $14,874,864.54 in criminal and civil actions in Fiscal Year 2015.
“I am proud of the fact that this is the largest sum ever collected by the United States Attorney’s Office for the Middle District of Georgia. While this is the result of hard work by our entire Civil and Criminal Divisions staffs, it is due especially to fine work by our Health Care Fraud attorneys in several major cases and by the overall work of our Financial Litigation Unit, who is responsible for collections in all cases in our seventy county district.”
Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year (FY) ending Sept. 30, 2015. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients.
In measuring collections recovered in FY 2015, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2015.
Among the top 20 debt collections, the largest came from financial institutions whose risky practices led up to the 2008 financial crisis and collapse of the U.S. housing market, including $8.2 billion of the settlement in August 2014 with Bank of America Corporation, which included $5 billion in penalties for claims under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) – the largest FIRREA penalty ever - and $687 million from the February 2015 settlement with McGraw Hill Financial Inc. and Standard & Poor’s Financial Services LLC.
The department continued to make polluters pay to safeguard the environment and the taxpayer, collecting $1.8 billion of the total $5.1 billion settlement of the Tronox Inc. bankruptcy in January 2015, the majority of which is being used for cleanups of Kerr-McGee sites, including on tribal lands and in low-income communities across the United States. From the November 2014 settlement with Hyundai and Kia, the automakers paid $93.6 million to the United States, of a $100 million civil penalty owed to the United States and the California Air Resources Board, to resolve violations concerning the testing and certification of vehicles sold in America.
As in previous years, recoveries for health care fraud were among the largest, including $807 million from DaVita Healthcare Partners to settle two False Claims Act cases which involved kickback schemes and fraudulent billing of the federal government.
Growing out of the international scheme to manipulate the London Interbank Offer Rate (LIBOR), the department obtained resolutions from several banks. Notably, Deutsche Bank entered into a deferred prosecution agreement in which it admitted its role in fraud and price-fixing conspiracies by rigging Yen LIBOR contributions with other banks and paid $625 million in penalties, in addition to regulatory penalties and disgorgements imposed by other agencies. A Deutsche Bank subsidiary in the United Kingdom also pleaded guilty for its role in the rate manipulation.
Additionally, in March, Commerzbank AG, agreed to pay a $79 million fine to the department, in addition to a $563 million forfeiture, as part of a global settlement of charges for violating the International Emergency Economic Powers Act and the Bank Secrecy Act. For six years Commerzbank knowingly and willfully moved approximately $263 million through the U.S. financial system on behalf of sanctioned entities in Iran and Sudan.
The Swiss Bank Program yielded more than $350 million in penalties from dozens of Swiss banks that reached non-prosecution agreements with the department in FY 2015.
The Department collected hundreds of millions of dollars in criminal fines and penalties from companies involved in conspiracies to subvert competitive markets. Over the last year, the Department collected fines greater than $10 million from nine companies involved in price-fixing conspiracies, including more than $200 million from auto parts suppliers and over $100 million from ocean freight companies. The department has also brought civil suits to stop anticompetitive behavior and collected civil penalties and disgorgement that deprived companies of the proceeds of illegal pre-merger coordination.
Meth Smuggler Heads to Federal PrisonRead the Press Release
LAREDO, Texas – A 23-year-old legal permanent resident from Mexico who resided in Laredo has been ordered to prison following his conviction of for possession of nearly nine kilograms of crystal methamphetamine, announced U.S. Attorney Kenneth Magidson. Wilivaldo Sanchez-Mende, 23, pleaded guilty April 30, 2015.
Today, Senior U.S. District Judge George P. Kazen ordered Sanchez-Mende to serve 96 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the defense had asked for a low sentence because he was only a courier. Judge Kazen denied the request and imposed the higher sentence for the first-time offender.
Sanchez-Mendez was apprehended on the evening of Feb. 13, 2015, at the Border Patrol checkpoint north of Laredo after a canine alerted to the possibility of drugs hidden within the gas tank. He soon admitted he thought he was smuggling cocaine.
Agents removed nine PVC pipes concealed within the vehicle’s gasoline tank that contained a crystalline material which field-tested positive for crystal methamphetamine. The net weight was measured at 8.861 kilograms - 19.5 pounds - and had an estimated street value of $950,400.
Sanchez-Mende stated that he was working for persons in Mexico and moving narcotics to Dallas. He further claimed to have made at least three similar trips in the past, receiving payment of approximately $4,000 for each trip.
Sanchez-Mendez has been in custody since his arrest on Feb. 13, 2015, where he will remain pending transfer to a Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by the Drug Enforcement Administration and Border Patrol. Assistant U.S. Attorney Jose Homero Ramirez prosecuted the case.
Manhattan U.S. Attorney Announces Arrest and Unsealing of Charges Against Senior Adviser to the Operator of the “Silk Road” WebsiteRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James M. Gibbons, Acting Special Agent-in-Charge of Homeland Security Investigations Chicago (“HSI”), James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and Shantelle P. Kitchen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of a complaint charging ROGER THOMAS CLARK, a senior adviser to Ross Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” the owner and operator of the “Silk Road” website, an online illicit black market that operated from January 2011 until October 2, 2013. CLARK is alleged to have been a close confidante of Ulbricht’s who advised him on all aspects of Silk Road’s operations and helped him grow the site into an extensive criminal enterprise. CLARK was arrested in Thailand on December 3, 2015, and is pending extradition to the United States.
Manhattan U.S. Attorney Preet Bharara said: “Silk Road was a secret online marketplace for illegal drugs, hacking services, and a whole host of other criminal activity. Like a consigliere, Roger Thomas Clark allegedly served as a trusted confidante to Silk Road founder and operator Ross Ulbricht, advising him on all aspects of this illegal business, including how to maximize profits and use threats of violence to thwart law enforcement. Thanks to the investigative work of our fellow law enforcement agencies and our international partners, Clark is in custody and awaits American justice.”
FBI Assistant Director Diego Rodriguez said: “The arrest of Roger Thomas Clark shows again that conducting criminal activities on the Dark Web does not keep a criminal out of law enforcement’s reach. As alleged, Clark was paid at least hundreds of thousands of dollars to act as a counselor to Ross Ulbricht’s black-market bazaar, Silk Road. Clark may have thought residing in Thailand would keep him out of reach of U.S authorities, but our international partnerships have proven him wrong. We thank our law enforcement partners who have worked with the FBI on this case.”
HSI Chicago Acting Special Agent-in-Charge James M. Gibbons said: “Roger Clark, a high-ranking Silk Road operator, served as Ross Ulbricht’s closest adviser and confidante as together they facilitated an anonymous global black market for all things illegal. As this arrest proves, the ‘long arm of the law’ has a great reach – even in cyberspace. Our HSI special agents continue to work closely with our federal and international law enforcement partners around the world to patrol the darknet and protect public safety.”
DEA Special Agent in Charge James J. Hunt said: “Anonymity is what Roger Thomas Clark believed he attained posing as ‘Variety Jones’ while allegedly committing crimes; but handcuffed and pending extradition is not anonymity. I command and thank law enforcement's tenacious investigative skills and coordination throughout this investigation.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Although the conviction of Ross Ulbricht effectively brought an end to the operation of the Silk Road site, this complaint represents another step in bringing full closure to the investigation of this criminal enterprise. IRS Criminal Investigation remains committed to bringing our expertise in conducting complex financial investigations to the investigation of narcotics organizations of all types, including those operating in the anonymity of cyberspace.”
According to the allegations contained in the criminal complaint[1] unsealed today in Manhattan federal court, and evidence submitted at trial and in court filings during the prosecution of Ross Ulbricht:
Ulbricht created Silk Road in approximately January 2011, and owned and operated the underground website until it was shut down by law enforcement authorities in October 2013. During that time, Silk Road emerged as the most sophisticated and extensive criminal marketplace on the Internet, serving as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually all kinds, were bought and sold regularly by the site’s users. While in operation, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over a hundred thousand buyers, and to launder hundreds of millions of dollars deriving from these unlawful transactions.
Silk Road enabled its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. Silk Road was operated on what is known as “The Onion Router” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses of the computers on the network and thereby the identities of the networks’ users. Silk Road also included a Bitcoin-based payment system that served to facilitate the illegal commerce conducted on the site, including by concealing the identities and locations of the users transmitting and receiving funds through the site.
CLARK, who went by the online nicknames “Variety Jones,” “VJ,” “Cimon,” and “Plural of Mongoose,” was described by Ulbricht as a trusted “mentor,” who regularly advised him on the management of the Silk Road enterprise. Among other things, CLARK counseled Ulbricht on the improvement and expansion of Silk Road’s technical infrastructure, including helping Ulbricht hire and manage a computer programmer to assist with these projects. CLARK also helped Ulbricht develop and enforce the rules governing how Silk Road vendors and users could do business on the site, which were designed to maximize the commissions that Ulbricht received from Silk Road sales. CLARK further advised Ulbricht on how to conceal his involvement in, and hide his profits from, the operation of Silk Road, including helping Ulbricht devise cover stories to tell others and make plans to obtain foreign citizenship and offshore bank accounts. Finally, CLARK also advised Ulbricht on tactics to thwart efforts by law enforcement to investigate Silk Road. In that vein, CLARK repeatedly advocated the use of intimidation and violence to keep members of the Silk Road support staff from cooperating with law enforcement. In one such conversation, in which CLARK and Ulbricht discussed “track[ing] down” a certain Silk Road employee to ensure that he had not gone “[o]ff the rails,” CLARK commented, “[D]ude, we’re criminal drug dealers – what line shouldn’t we cross?”
CLARK was paid at least hundreds of thousands of dollars for his assistance in operating Silk Road.
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CLARK, 54, a citizen of Canada, is charged with one count of narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years, and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the Court.
Mr. Bharara praised the outstanding joint efforts of the FBI and its New York Special Operations and Cyber Division, HSI Chicago-O’Hare, the DEA’s New York Field Division, and IRS-CI’s New York Field Office. Mr. Bharara also thanked the HSI Attache Bangkok, Thailand, for its assistance and support. Mr. Bharara also thanked the Royal Thai Police and the U.S. Department of Justice’s Office of International Affairs for their support and assistance.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Timothy Howard and Richard Cooper are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the complaint, and the description of the complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Previously Convicted of Federal Firearms Offense Sentenced to 44 Months in Prison for Assaulting Two Deputy U.S. MarshalsRead the Press Release
CHARLOTTE, N.C. – On Thursday, December 3, 2015, Chief U.S. District Judge Frank D. Whitney sentenced Reginald Lashawn Lockhart, 31, of Charlotte to serve to 44 months in prison and three years of supervised release in connection with the 2014 assault of two Deputy U.S. Marshals, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Whitney ordered Lockhart’s sentence to be served consecutive to the 15 year prison term Lockhart is serving for a firearms offense.
U.S. Attorney Rose is joined in making today’s announcement by Kelly M. Nesbit, United States Marshal of the United States Marshals Service for the Western District of North Carolina and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and court proceedings, on September 3, 2015, Lockhart appeared in federal court for his sentencing proceedings relating to a firearms violation charge. According to court records, after Lockhart was handed down the 180 month prison term for that conviction, the defendant assaulted two Deputy U.S. Marshals who were escorting him from the courtroom. Court records show that Lockhart made physical contact with the two deputies and inflicted bodily injury upon them. According to statements made during the sentencing hearing, Lockhart had threatened and assaulted other deputy marshals on other occasions. Lockhart also assaulted a Mecklenburg County detention officer in June 2013, and was even making threats to assault guards within the past week. Lockhart pleaded guilty to two counts of assaulting an officer in April 2015.
Lockhart has been in federal custody since November 2012 for his previous federal offense. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Marshals Service and the FBI. The case was prosecuted by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Charlotte.
Man Indicted for Filing False Tax ReturnsRead the Press Release
CONCORD, N.H. – Okello Odongo, 36, of Snellville, Georgia, was indicted in United States District Court for the District of New Hampshire on 19 counts of filing false tax returns and fraudulently obtaining tax refunds reports Acting United States Attorney Donald Feith.
Odongo is a former resident of Manchester, New Hampshire, where he operated a tax return preparation business called Tax Smart Solutions Co. As a tax preparer, Odongo was authorized by the IRS to file tax returns electronically for his customers. One of the forms he filed electronically was an Allocation of Refund Form that instructed the IRS to directly deposit refunds into specified bank accounts. The form allowed a refund to be allocated to two or more bank accounts.
The indictment alleges that in 2011 and 2012 Odongo filed false tax returns on behalf of some of his customers that overstated the amounts of the tax refunds they were entitled to claim. The indictment also alleges that Odongo filed Allocation of Refund Forms that directed the IRS to electronically deposit the fraudulent portions of the refunds to bank accounts Odongo held or had access to. None of Odongo’s customers knew that he used their doctored tax returns as a vehicle to defraud the IRS.
An initial appearance hearing was held on December 3, 2015, at which Odongo pleaded not guilty to the pending charges.
A trial has been scheduled for January 5, 2016. If convicted, Odongo is facing a maximum of five years in prison on each of the 19 counts of the indictment.
This case was investigated by the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty.
Man Arrested on Charges of Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – Edridge Clyne, 45, was arrested today after a federal grand jury returned a one-count indictment against him Thursday charging him with possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. After his arrest, Clyne made his initial appearance before District Court Judge Curtis V. Gomez, who ordered that he be released on a $25,000 unsecured bond with GPS monitoring. Arraignment is scheduled for December 9, 2015.
If convicted of possession with intent to distribute marijuana, Clyne faces a maximum sentence of five years in prison and a $250,000 fine.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
The indictment is the result of investigative work by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI. The case is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Livingston Man Sentenced to Five Years in Prison for Child PornRead the Press Release
MISSOULA – Blaine Garrett Reposa, 47, of Livingston, Montana, was sentenced today in Missoula federal court for distribution of child pornography. Reposa pleaded guilty to the charge in August. Chief U.S. District Court Judge Dana Christensen Sentenced Reposa to 60 months incarceration. Following his release, Reposa will be subject to 20 years supervised release.
In an offer of proof filed by Assistant U.S. Attorney Cyndee Peterson, the government stated that if the case had proceeded to trial, the government would have introduced evidence that in January 2014, an Internet Crimes Against Children Task Force detective received a cyber-tip that images of child pornography had been uploaded to a Tumblr account. The IP logs for the upload were associated with Reposa’s residence. A search of the residence produced numerous digital devices, which, on examination, provided evidence that Reposa uploaded images of child pornography to the Tumblr account in question between October 2013 and January 2014.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Internet Crimes against Children Task Force. Reposa will have to serve at least 85% of his sentence before he will be eligible for parole.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on December 4, 2015, Miguel Angel Alvarez, 47, was sentenced to 14 years (168 months) in prison for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine in the Lincoln area between January of 2013 and April of 2014. Following the prison term, Alvarez will serve five years on supervised release.
In November of 2013, Alvarez sold methamphetamine on two occasions to an undercover officer for a total of approximately nine grams. Information provided to law enforcement indicated that over the course of the conspiracy, Alvarez was responsible for the distribution of at least 15 kilograms, (33 pounds), of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Riverdale Drug Distribution Conspiracy Sentenced to over 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Don Juan Campbell, a/k/a “Flav,” “Flava Flav,” and “Flay,” age 32, of Laurel, Maryland, today to 130 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), cocaine, crack cocaine, and heroin, and for possession of a firearm in furtherance of a drug trafficking crime. Judge Titus also entered an order requiring Campbell to forfeit $117,632, seized during a search of his residence and storage unit, as proceeds of the drug conspiracy, as well as four firearms and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from 2005 until at least June 2013, Campbell conspired with others to distribute cocaine, crack cocaine and PCP in the Riverdale area of Prince George’s County, Maryland. Campbell and other conspirators used apartments in Riverdale as a base of operations for storing and distributing narcotics. In addition to selling PCP, heroin, cocaine and crack cocaine to drug customers, Campbell also supplied drugs to co-conspirators, including Lorenzo Jackson, Dwayne Haywood, Andre Lyons, Michael McCree, and Marcus Moss, who would re-distribute the drugs to their own customers.
On June 11, 2013, law enforcement agents executed a search warrant at Campbell’s residence in Laurel. During the search, agents recovered approximately 237 grams of crack cocaine, 173 grams of powder cocaine, and 54 grams of heroin. Also found in Campbell’s residence was a 9 millimeter handgun, $22,052 in cash, and drug paraphernalia including cooking and cutting agents used to manufacture narcotics. That same day, a search warrant was executed on a storage unit in Suitland, Maryland, that was used by Campbell. Law enforcement agents recovered $95,580 in cash, $300 of which turned out to be counterfeit.
On June 11, 2013, law enforcement agents executed search warrants at Lyons’ and Moss’ residences in Riverdale, Maryland. At Lyons’ residence agents recovered approximately 460 grams of heroin, 318 grams of cocaine base, and 1,200 grams of PCP. Also found in Lyons’s residence was a loaded .40 caliber semiautomatic pistol; a loaded .380 caliber semiautomatic pistol; and $15,310 in cash. At Moss’s residence agents recovered digital scales, PCP, and a loaded .40 caliber semiautomatic pistol that belonged to Campbell.
All eight defendants charged in the conspiracy have pleaded guilty to the roles in the drug distribution organization. Lorenzo Jackson, Dwayne Haywood, Michael McCree, and Marcus Moss all pleaded guilty and have been sentenced to up to 57 months in prison. Andre Lyons is scheduled to be sentenced on January 21, 2016, at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised ATF, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.
Lake City Man Sentenced to Federal Prison for Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced James Steven Hall (47, Lake City) to 24 months in federal prison for manufacturing and passing counterfeit Federal Reserve notes. As part of the sentence, the Court ordered Hall to pay restitution to the various businesses he had defrauded.
According to court documents, in March 2015, law enforcement received information that Hall had possessed counterfeit currency in his hotel room in Columbia County. On March 25, 2015, officers from the Columbia County Sheriff’s Office and the United States Secret Service went to the hotel and made contact with Hall, who allowed the officers to search his room. The search revealed counterfeit $10 and $20 bills that had been hidden between the mattress and box spring. Supplies for manufacturing counterfeit Federal Reserve notes, including a paper cutter, an ink jet printer, blank paper, a laptop computer, and used ink cartridges, were also found in the room. Hall later admitted to manufacturing a few thousand dollars in counterfeit notes, and to passing some of them at local businesses in the Lake City area.
This case was investigated by the Columbia County Sheriff’s Office and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Justice Department Partners with Republic of Ecuador to Combat Employment DiscriminationRead the Press Release
Today, the Justice Department and the Republic of Ecuador established a formal partnership to fight employment discrimination based on citizenship, immigration status and national origin. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Ecuadorean Ambassador Francisco Borja Cevallos signed a Memorandum of Understanding (MOU) creating a partnership between the embassy and its consulates, and the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC). The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers in the United States from discriminating in hiring, firing, recruiting or verifying a worker’s employment eligibility because of citizenship, immigration status or national origin.
The MOU seeks to empower work-authorized Ecuadorians in the United States by educating them about their rights and providing them with the resources needed to protect those rights. The MOU will also promote training for employers on their responsibilities under the anti-discrimination provision of the INA, which prohibits employment discrimination because of citizenship, immigration status and national origin. Specifically, the MOU provides that:
• OSC will help train Ecuadorean consular staff on the anti-discrimination provision of the INA, participate in events organized by Ecuadorean consulates to educate workers and employers and distribute educational materials to the embassy and its consulates.
• The embassy will establish a system for referring discrimination claims from the embassy and consulates to OSC.
“The signing of today’s historic MOU marks a critical stride of progress in the dynamic partnership between our countries,” said Principal Deputy Assistant Attorney General Gupta. “Together, we will continue to advance our shared commitment to empowering workers, combating unlawful discrimination and protecting the rights of our people.”
“These agreements are vital to ensure that the Ecuadorian community in the United States is informed of its rights and the different resources that the Department of Justice provides through its offices and phone support lines,” said Ambassador Borja Cevallos. “Our goal is to make sure that the rights of Ecuadorian immigrants are respected.”
Today’s agreement builds on the joint outreach to immigrant communities already underway between OSC and Ecuador’s embassy and consulates.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits discrimination based on citizenship status and or national origin discrimination in hiring, firing or recruitment or referral for a fee; discrimination in the employment eligibility verification process; retaliation; and intimidation. In addition to its enforcement work, OSC educates the public on rights and responsibilities under the INA’s anti-discrimination provision. More information on OSC is available at www.justice.gov/crt/about/osc.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Ecuador MOU
Iowa Man Sentenced for Making Threats Targeting Boston-Based Islamic Cultural CenterRead the Press Release
BOSTON – An Iowa man was sentenced today for threatening to shoot and kill Muslims by posting threats on the Facebook page of an Islamic organization in Boston.
Gerald Wayne Ledford, 57, of Clinton, Iowa, was sentenced in the Southern District of Iowa to four years of probation with the first six months to be served in home confinement. In August 2015, Ledford pleaded guilty to one count of transmitting in interstate commerce a communication containing a threat to injure after being charged in the District of Massachusetts. He was initially arrested in Iowa and his case was transferred to the Southern District of Iowa for his guilty plea and sentencing.
“Now more than ever it is essential to protect Muslims in our communities from misguided notions of their faith and traditions,” said United States Attorney Carmen M. Ortiz. “Islamophobia has no place in this Commonwealth or this county, and those who threaten Muslims must be held to account.”
“The FBI takes our duty to protect the civil rights of all Americans seriously, regardless of one’s race, religion or sexual orientation,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “We ask that anyone who feels their civil rights have been violated to come forward and report it.”
On Oct. 19, 2014, Ledford threatened the Islamic Society of Boston Cultural Center (ISBCC), a cultural center that offers a mosque and a variety of educational, spiritual, and social services to Muslims in New England. Ledford posted two threats on the ISBCC’s Facebook page. One post threatened, “Mohamed was a child rapist .a murderer and molester.you all will go to hell with you’re father satan..we will destroy you here and in your’re s**t hole countrys.” The second post consisted of a photograph of a man bearing a long gun with the caption, “This is for you.followers of the piece of s**t Mohamed …” Ledford admitted that he knew that these messages would be viewed as threats.
U.S. Attorney Ortiz; United States Attorney for the Southern District of Iowa Nicholas A. Klinefeldt; FBI SAC Shaw, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Scott L. Garland of Ortiz’s Civil Rights Enforcement Team and Richard D. Westphal of the U.S. Attorney’s Office for the Southern District of Iowa.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings, on December 3, 2015 and entering pleas of Not Guilty were:
- ROSS DUANE BRESHEARS, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm and possession of a firearm by a person convicted of a misdemeanor crime of domestic violence. If convicted of the most serious charge contained in the indictment, BRESHEARS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-140
- RICHARD EDGAR YOUNGBLOOD, a 28-year-old resident of Miles City, appeared on charges of felon in possession of a firearm and possession of a firearm with an obliterated serial number. If convicted of the most serious charge contained in the indictment, YOUNGBLOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-146
Appearing before U.S. Magistrate Lynch in Missoula, on December 2, 2015 and entering pleas of Not Guilty were:
- LUKE ALDON HAYES, a 33-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of firearms, possession of unregistered silencers, and possession of silencers with no serial numbers. If convicted of the most serious charges contained in the indictment, HAYES faces life in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Montana Regional Violent Crime Task Force. PACER Case Reference. 15-35
Appearing before U.S. Magistrate Johnston in Great Falls, on December 1, 2015 and entering pleas of Not Guilty were:
- JAMES DEBERRY, a 21-year-old resident of Box Elder, appeared on charges of sexual abuse of a minor and abusive sexual contact. If convicted of the most serious charges contained in the indictment, DEBERRY faces 15 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-73
Appearing before U.S. Magistrate Johnston in Great Falls, on November 30, 2015 and entering pleas of Not Guilty were:
- ROBERT LEE KETCHUM, a 32-year-old resident of Big Sandy, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, KETCHUM faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Russell Country Drug Task Force. PACER Case Reference. 15-49
Appearing before U.S. Magistrate Ostby in Billings, on November 24, 2015 and entering pleas of Not Guilty were:
- JEFFERY JOHN BROWN, a 29-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, BROWN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-126
- KIMBERLEE DUNN, a 64-year-old resident of Billings, appeared on charges of wire fraud and tax evasion. If convicted of the most serious charges contained in the indictment, DUNN faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-129
- THOMAS WILFRED MEURET, a 38-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and to possess methamphetamine with intent to distribute, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MEURET faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. PACER Case Reference. 15-132
- JUSTIN DAVID RIDDLE, a 34-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, RIDDLE faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 15-116
Appearing before U.S. Magistrate Johnston in Great Falls, on November 24, 2015 and entering pleas of Not Guilty were:
- MARCUS GERALD FAST HORSE, a 24-year-old resident of Poplar, appeared on charges of assault resulting in serious bodily injury, assault with a dangerous weapon, and kidnapping. If convicted of the most serious charges contained in the indictment, FAST HORSE faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 15-80
Appearing before U.S. Magistrate Lynch in Missoula, on November 24, 2015 and entering pleas of Not Guilty were:
- ALAN J. COOK, a 38-year-old resident of Grand Junction, Colorado, appeared on charges of interstate communication of a threat. If convicted of the most serious charges contained in the indictment, COOK faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-34
Appearing before U.S. Magistrate Johnston in Great Falls, on November 23, 2015 and entering pleas of Not Guilty were:
- MONICA VERNETTE CAMPBELL, a 52-year-old resident of Wolf Point, appeared on charges of theft from an Indian tribal organization. If convicted of the charge contained in the indictment, CAMPBELL faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Department of Interior Office of Inspector General and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 15-72
Appearing before U.S. Magistrate Ostby in Billings, on November 23, 2015 and entering pleas of Not Guilty were:
- CODY PEYTON BROWN, a 22-year-old resident of Wilson, North Carolina, appeared on charges of receipt of child pornography and transfer of obscene matter to a minor. If convicted of the most serious charge contained in the indictment, BROWN faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-125
- LUTHER GEROME DAVIS, a 43-year-old resident of Madera, California, appeared on charges of transportation of a person with intent to engage in criminal sexual activity. If convicted of the charge contained in the indictment, DAVIS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-114
- ELMER HOUSTIN ESTILL, a 54-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, ESTILL faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Homeland Security Investigations, the Drug Enforcement Administration and the Eastern Montana HIDTA. PACER Case Reference. 15-142
- RAYMOND LEE TOULOUSE, JR., a 30-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, TOULOUSE faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Homeland Security Investigations, the Drug Enforcement Administration and the Eastern Montana HIDTA. PACER Case Reference. 15-145
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Gloucester County, New Jersey, Man Charged with Receiving Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – A Williamstown, New Jersey, man who was found with 41 computer disks containing images and videos of child sexual abuse was arrested this morning by FBI agents, U.S. Attorney Paul J. Fishman announced.
Eric Ziegler, 37, of Williamstown, New Jersey, is charged by criminal complaint with receiving child pornography. He is scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case:
Beginning in February 2015, law enforcement officers learned that a user of an Internet account registered to a Williamstown residence was linked to an online community of individuals who regularly sent and received child pornography via a website that operated on an anonymous online network. Further investigation revealed that Ziegler, who works from home providing technological support to computer users who work for financial institutions, was utilizing the anonymous network to view and receive images of child sexual abuse.
On Dec. 3, 2015, law enforcement officers executed a search warrant at Ziegler’s residence. An initial review of the evidence recovered revealed dozens of computer discs containing images of child sexual abuse, including images and video files of adult men engaged in intercourse with prepubescent girls.
The count of receiving child pornography is punishable by a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years in prison. The charge also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge William F. Sweeney in Philadelphia, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Steven D’Aguanno of the New Jersey U.S. Attorney’s Office Camden Office.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.