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4 December 2015
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.
* * *
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.
French National Sentenced to 24 Months in Prison for Alien SmugglingRead the Press Release
St. Thomas, USVI- District Court Judge Curtis V. Gomez today sentenced Alain Rene Leichtnam, 71, a French national, to 24 months in prison for alien smuggling, United States Attorney Ronald W. Sharpe announced. Leichtnam also was ordered to serve two years of supervised release, 200 hours of community service and pay a $3,800 special assessment.
On August 12, 2015, Leichtnam pleaded guilty to encouraging and inducing aliens to enter the United States in violation of law. As part of his plea, Leichtnam admitted that on April 29, 2015, the sailing vessel Mazurka, operating with no lights, entered United States waters heading towards Coral Bay on the East End of St. John, Virgin Islands. The vessel was intercepted by Customs and Border Protection (CBP) agents who observed Leichtnam operating the vessel and identified 38 Cuban nationals and one St. Lucian national onboard. CBP agents observed that the vessel was grossly overloaded and did not have a sufficient number of life jackets and life rafts for the number of people onboard. Leichtnam admitted that he transports people to the United States for financial gain knowing that such conduct is unlawful.
“Those responsible for encouraging and inducing immigrants to enter the United States illegally are placing personal profit ahead of public safety and the lives of the immigrants,” U.S. Attorney Sharpe said. “This conviction should warn those involved in this dangerous and illegal activity that it comes with a high price.”
Angel M. Melendez, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Puerto Rico and the U.S. Virgin Islands said: “ICE continues to be committed to putting an end to the practice of profiting from the illegal transportation of aliens across our borders and throughout our country. We will continue to vigorously enforce the federal laws which punish the many manifestations of the complex problem of smuggling, trafficking and harboring illegal aliens. Tragically, many have lost their lives while attempting this illegal and treacherous trip. Human smugglers have a callous disregard for the value of human life and are only concerned about making a profit. ICE will continue to aggressively work with our U.S. Department of Homeland Security (DHS) partners to identify and arrest those involved in this illicit and dangerous activity.”
The case was investigated by ICE with the assistance of CBP and the United States Coast Guard. It was prosecuted by Assistant United States Attorney Kim L. Chisholm.
Former Tifton Banking Company CEO and President Enters Plea to FraudRead the Press Release
A former bank president entered a guilty plea today for his role in a bank fraud scheme in which he hid underperforming and at-risk loans from the bank and the Federal Deposit Insurance Corporation (FDIC), among others, announced Acting U.S. Attorney G.F. Peterman, III of the Middle District of Georgia.
Gary Patton Hall Jr., 49, of Tifton, Georgia, pled guilty before Senior U.S. District Court Judge Hugh Lawson in Macon, Georgia to one count of conspiracy to commit bank fraud and one count of conspiracy to commit fraud against the United States.
According to facts stipulated in the plea agreement, Mr. Hall was the president and Chief Executive Officer of Tifton Banking Company (TBC) from August 2005 until June 2010. During that time, Mr. Hall was engaged in an ongoing scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses. As part of the scheme, Mr. Hall hid past due loans from the FDIC and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking. Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others.
Mr. Hall admitted that in certain transactions in which he exercised approval authority, Mr. Hall hid his personal and business interests. In one instance, Mr. Hall approved loans to the buyer of a condominium in Panama City Beach, Florida, owned by Mr. Hall himself. In doing so, he made false representations about the loans to TBC's loan committee and failed to disclose his personal interest in the transaction. When the buyer's loan payments became delinquent, Mr. Hall hid the loans from both the FDIC and state regulators. Mr. Hall received $50,000 profit from the sale of his condominium in this transaction, the entire purchase price being funded by an unsecured loan to the buyer approved by him. The buyer eventually declared bankruptcy resulting in a loss of more than $400,000 to TBC.
Mr. Hall also admitted to making fraudulent representations which led to commercial loan guarantees being issued by the United States Small Business Administration and the United States Department of Agriculture on two other loan transactions. The loans were made by TBC, and guaranteed by the government agencies, to refinance earlier non-performing commercial loans made by TBC as part of the scheme to mislead bank regulators and hide the bank's true financial condition. Those guaranteed loans resulted in losses to the bank and the agencies of more than $2 million.
TBC was closed by the Georgia Department of Banking and Finance in November 2010 due to its poor financial condition. At that time, TBC had not repaid the $3.8 million it received from the Department of Treasury's Troubled Asset Relief Program.
Mr. Hall faces a potential statutory penalty often (10) years imprisonment and a potential fine of up to twice the loss amount, or both. Hall agreed in entering the plea that he owes restitution to the bank and federal agencies in the amount of $3,931,018 for losses suffered.
Acting United States Attorney G.F. Peterman, III said, "The greed of Mr. Hall and the abuse of the trust placed in him by the Tifton Banking Company and its depositors, investors, and employees, as well as the taxpayers of the United States, has had a deleterious effect on his community and its faith in the banking industry. Others have paid a high price for his misdeeds. Hopefully today's plea of guilty to his crimes can facilitate some degree of healing for those he has harmed."
"While the taxpayer entrusted Hall, the President and CEO of Tifton Banking Company, with 3.8 million of TARP funds, Hall abused that trust to deceive the banking regulators, the public and the bank's loan committee," said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). "Hall covered up past due loans to mask the poor financial condition of the bank and hid his personal and business interests in loans. His crime directly caused over 3.9 million in losses to the bank and federal agencies. Tifton Banking Company failed in 2010 causing a total loss to the taxpayer of the 3.8 million in TARP funds plus over 50 thousand dollars in missed dividends. SIGTARP and its law enforcement partners will continue to investigate vigorously the financial industry and bankers to bring accountability and justice for TARP-related crime."
Jason T. Moran, Special Agent in Charge, FDIC Office of lnspector General, stated: "The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the United States Attorney's Office and our law enforcement colleagues in investigating the fraud that led to the conviction of Mr. Hall. It is particularly troubling when bank insiders violate the public trust and engage in activities that impact the safety and soundness of our nation's banks."
The case was investigated by the FBI, the Special Inspector General for the Troubled Asset Relief Program, the Small Business Administration's Office of the Inspector General, the Federal Deposit Insurance Corporation's Office of the Inspector General, the Department of Agriculture's Office of Inspector General and the Tift County Sheriff’s Office. The case is being prosecuted by Senior Trial Attorney N. Nathan Dimock of the Criminal Division's Fraud Section and Assistant U.S. Attorney Robert McCullers of the Middle District of Georgia.
"The SBA Office of Inspector General will aggressively investigate and seek criminal prosecution or civil remedies when fraud is perpetrated against the SBA by corrupt lenders," said Inspector General Peggy E. Gustafson. "SBA's loan programs are designed to provide eligible small businesses access to capital to finance and grow their businesses, not those engaged in illegal activity. I would like to thank the U.S. Attorney's Office for its dedicated leadership and professionalism throughout this investigation."
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney's Office, at (478) 621-2603.
Former Telemarketing Manager Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II has sentenced Mark Gardner (29, Osteen) to seven years and three months in federal prison for his role in the operation of a boiler room. He was also ordered to pay more than $1.2 million in restitution to his victims. Gardner pleaded guilty on August 17, 2015.
According to court documents, Gardner and his codefendant, Tammie Lynn Cline (33, Leominster, MA), operated a boiler room in Central Florida. Along with the telemarketers who worked at their call center, they would make unsolicited calls to owners of timeshare properties located throughout the United States. During those calls, they claimed that they worked for Universal Timeshare Sales Associates (UTSA) out of Beaverton, Oregon; that UTSA had a purchaser who was interested in buying a timeshare; and that the timeshare owner just needed to pay a fee between $1,600 and $2,200 for the sale to proceed.
In order to convince timeshare owners to pay the fee, the conspirators would sometimes claim that an interested purchaser was present in the showroom ready to buy a timeshare, that a buyer had already deposited money into an escrow account for the sale, or that the sale would take place in about 90 days. Those representations were false. The timeshares were not sold as had been promised, and members of the conspiracy would deny or ignore requests for refunds, and would dispute chargebacks with the credit card companies.
In total, victims lost more than $1.2 million as a result of the scheme.
In May 2013, the Federal Trade Commission and the Florida Attorney General’s Office filed a civil action against Gardner, Cline, and others in federal court. In June 2014, the district court entered a permanent injunction against them related to certain telemarketing practices.
Cline was also prosecuted for her role in the conspiracy. On October 30, 2015, she was sentenced to 30 months in federal prison. She was also ordered to pay $1.2 million in restitution to her victims.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Corrections Officer Pleads Guilty to Smuggling Marijuana and Alcohol into Cook County JailRead the Press Release
CHICAGO — A former Cook County Corrections Officer admitted in federal court today that he smuggled marijuana, tobacco and alcohol into the Cook County Jail.
JASON MAREK delivered the contraband to a jail inmate after tucking it into sandwiches and sneaking it past security, according to a written plea agreement. In exchange for his efforts, Marek received cash payments from the inmate’s wife, the plea agreement states.
Marek, 30, pleaded guilty to one count of federal program bribery. The conviction carries a maximum sentence of ten years in prison. U.S. District Judge Charles R. Norgle will schedule a sentencing hearing at a later date.
Marek was assigned to a maximum-security tier of the jail when he smuggled in the goods in May and June 2013. After initially selling used chewing tobacco to the inmate for $200, Marek and the inmate agreed to deal the marijuana and alcohol, according to the plea agreement. The inmate arranged for his wife to meet Marek at a location outside of the jail in order for Marek to receive payment for his services, the plea agreement states.
Marek admitted knowing that the inmate planned to sell the contraband to other inmates within the jail, according to the plea agreement.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Cook County Sheriff Thomas J. Dart; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorneys Megan Cunniff Church and Michelle Nasser.
Plea Agreement
Former Bergen County, New Jersey, Democratic Chairman Sentenced to 35 Months in Prison on Racketeering ChargesRead the Press Release
NEWARK, N.J. – The former chairman of the Bergen County Democratic Organization (BCDO), was sentenced today to 35 months in prison for his role in a racketeering scheme involving fraud and soliciting and accepting bribes as a party official, U.S. Attorney Paul J. Fishman announced.
Joseph A. Ferriero, 58, was found guilty in April 2015 following an eight-week trial before U.S. District Judge Esther B. Salas in Newark federal court. The jury deliberated four days before finding Ferriero guilty of conducting the BCDO’s affairs through a pattern of racketeering activity (Count One), using the mail and facilities in interstate commerce to promote bribery and distribute bribe proceeds (Count Three) and wire fraud (Count Five).
“The sentence handed down today to Joseph Ferriero is the final result of his running a local political organization as a criminal enterprise,” U.S. Attorney Fishman said. “He used his power and position to enrich himself through a racketeering operation fueled by influence peddling, bribes and kickbacks. Punishing this kind of political corruption has been – and continues to be – a priority for this office.”
“Today’s sentencing of Joseph A. Ferriero reaffirms the FBI’s commitment to combat public corruption in New Jersey and serves as a reminder that those individuals who violate the public’s trust will be held accountable,” Richard M. Frankel, FBI Special Agent in Charge, of the Newark Division, said.
According to documents filed in this case and the evidence at trial:
Ferriero served as the chairman of the BCDO from 1998 until January 2009 and was the sole member of SJC Consulting LLC. The jury found Ferriero accepted bribes in his capacity as BCDO chairman in the course of a scheme involving SJC. Ferriero agreed with John Carrino, a Nutley, New Jersey-based attorney and software developer, that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
In addition to the prison term, Judge Salas sentenced Ferriero to three years of supervised release, ordered him to pay restitution of $11,875 and entered an order of forfeiture for $11,875.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Frankel, and investigators from the U.S. Attorney’s Office, under the direction of Supervisory Criminal Investigator Thomas Mahoney, with the investigation leading to today’s sentencing.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig and Assistant U.S. Attorney Barbara Llanes of the Special Prosecutions Division in Newark.
Defense counsel: Michael Baldassare, Jennifer Mara and Dillon Malar Esqs., Newark
Former Army Energy Program Manager at Fort Knox Guilty of Violating Conflict of Interest LawsRead the Press Release
LOUISVILLE, Ky. - Gary Thomas Meredith, age 68, of Leitchfield, Kentucky, pleaded guilty yesterday in Federal District Court in Louisville, Kentucky, to violating conflict of interest laws. After one day of trial, Meredith, a retired federal employee, admitted that while he was a federal employee he was personally and substantially involved in the creation of a contract in which he had a direct financial interest announced United States Attorney John E. Kuhn, Jr.
For over 20 years Meredith was the Energy Manager at Fort Knox. As the Energy Manager, Meredith was responsible for developing and implementing energy savings measures at Fort Knox. As part of those duties, Meredith had worked closely Nolin Rural Electric Cooperative Corporation (Nolin) on nearly 100 energy conservation projects, worth over $250 million.
Due to an increasing work load, in 2005 Fort Knox began to consider developing a contractor position, called a Resource Efficiency Manager (REM), to perform the same duties as the Energy Manager, and to work in tandem with the Energy Manager. The REM was going to be hired through Nolin. Gary Meredith was interested in retiring and becoming the REM after his retirement, and in April 2005 he sent emails to Nolin and another company in which he discussed working for them as the REM at Fort Knox. In one email, Meredith, discussing the REM position, stated “have considered doing it myself . . . retire (and I can), and come back on Monday as a REM, IN THE SAME CHAIR, probably same office and be off the Government rolls.” In a subsequent emails Meredith stated “It’s about money.”
While he was still a federal employee, Meredith reached an agreement with Nolin that he would work for Nolin as a REM contractor when he retired. Fort Knox officials were unaware of Meredith’s arrangements with Nolin and Meredith’s interest in the REM position. In October 2005 Meredith began drafting the documents necessary to create the REM position, and in September 2006 Meredith secretly misappropriated over $582,000 to provide future funding for the REM position. In December 2006, while still a federal employee, Meredith completed all of the Fort Knox documents necessary to create the REM position, and he also created Nolin’s proposal for the REM position. Meredith also negotiated the pricing of the REM position with Nolin on behalf of Fort Knox, even though he already had an arrangement with Nolin that he was going to be the REM when he retired.
In July 2007 Meredith obtained an ethics opinion from a Fort Knox ethics advisor which stated that Meredith could work for Nolin as a REM contractor. The ethics advisor was unaware that Meredith had a personal financial interest in the REM position dating back to April 2005, that Meredith had misappropriated over $582,000 to fund the REM position, and that Meredith had prepared Nolin’s proposal. Meredith retired from the Army on August 31, 2007, and became Nolin’s REM on October 1, 2007. Meredith was earning over $80,000 per year when he retired, but earned over $165,000 per year as the REM.
After Meredith became the REM, he instructed Nolin to intentionally overbill Fort Knox for natural gas, even though the contract between Nolin and Fort Knox set the contract price and did not permit any additional billings. Nolin billed Fort Knox as instructed, and Meredith approved Nolin’s invoices for payment, resulting in over $900,000 in overbillings to Fort Knox.
After Meredith became the REM he also began invoicing in advance for his REM salary. For example, in October 2009 he invoiced Nolin for one year of salary in advance, over $177,000. Nolin paid Meredith’s salary in advance, even though Nolin employees were unaware of any other Nolin employee or contractor who was paid in advance. Nolin then immediately charged those costs to Fort Knox and Meredith approved Nolin’s invoices for payment, even though Meredith knew that Nolin could not legally require Fort Knox to pay for services in advance. As a result of these advance payments, Fort Knox lost thousands of dollars of interest.
Meredith’s guilty plea brought to a close a five and a half year criminal investigation of the Fort Knox Energy Program. On September 8, 2014, the Department of Defense, Office of the Inspector General (OIG), published the results of an audit of the Fort Knox Energy Program Meredith oversaw prior to his retirement. In the audit, the OIG found that Fort Knox had improperly awarded and administered over $250 million in energy-savings projects with Nolin. The report found that Fort Knox failed to establish internal controls, failed to determine whether the government paid fair and reasonable prices, and “spent millions on projects that may not have achieved sufficient energy savings.” http://www.dodig.mil/reports.html/Article/1119054/fort-knox-and-the-army-need-to-improve-internal-controls-for-utility-energy-ser/
On October 1, 2014, Matthew Bowman, a former Ft. Knox ethics attorney and procurement fraud advisor, pleaded guilty to providing a false document to Defense Criminal Investigations Service (DCIS) Special Agent Jared Camper in 2010 in a failed attempt to shut down the investigation into Meredith. Bowman was sentenced to one year of probation, and was subsequently debarred from working on any government contracts.
On April 9, 2015, Nolin and the United States entered into a Non-Prosecution Agreement in which Nolin agreed to pay over $7.6 million in civil penalties and forfeitures resulting from its business dealings with Meredith and Fort Knox.
The case was investigated by the Defense Criminal Investigative Service, Dayton Resident Agency. The Army Criminal Investigations Command, Columbus Resident Agency, the Defense Contract Audit Agency, also assisted with the investigation. The case was prosecuted by Assistant United States Attorneys David Weiser and Marisa Ford. Meredith is scheduled for sentencing on March 9, 2016.
Federal Jury Finds Placer County Women Guilty in Multimillion Dollar Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. -- After a 16-day trial, a federal jury today found Vera Kuzmenko, 45, of Loomis, and Rachel Siders, 40, of Roseville, guilty of multiple counts of mail and wire fraud associated with their involvement in a mortgage fraud scheme that cost financial institutions over $16 million, United States Attorney Benjamin B. Wagner announced.
Vera Kuzmenko was also found guilty of witness tampering and money laundering associated with the scheme.
According to evidence presented at trial, from late 2006 through early 2008, the defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. The defendants were responsible for securing more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. Records introduced at trial showed Vera Kuzmenko received millions of dollars and Rachel Siders received hundreds of thousands of dollars.
Vera Kuzmenko, who had been a licensed real estate agent for part of the scheme, created fraudulent loan applications on behalf of the straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. The loan paperwork also hid from lenders millions of dollars of payments that went to the defendants. Vera Kuzmenko also served as a straw-buyer herself. With respect to the witness tampering count, the evidence showed that after Kuzmenko learned the FBI was investigating her, she told various witnesses to lie to the FBI and blame a dead woman for the fraud.
Rachel Siders ran the Rocklin office of the escrow company used on the majority of the transactions. She helped funnel millions of dollars to the defendants, which was not disclosed to the lenders.
“Vera Kuzmenko was a major figure in a network of fraudsters responsible for a wave of mortgage fraud that hit the Sacramento area,” said U.S. Attorney Benjamin B. Wagner. “As the guilty verdicts in this case demonstrate, mortgage fraudsters who believe they can escape accountability for their crime by blaming others and offering false alibis are mistaken.”
“Vera Kuzmenko and her associates intentionally victimized their community, abusing trust to significantly damage the financial wellbeing of victims and negatively impact regional economy. This greed-fueled, multimillion dollar fraud scheme had a lasting, negative effect on the regional real estate market,” said Assistant Special Agent in Charge Manuel Alvarez of the FBI’s Sacramento field office. “We hope today’s verdict serves as a warning to would-be fraudsters that the FBI will aggressively pursue perpetrators of large, complex financial fraud to protect regional economies and ensure justice for their victims.”
“Mortgage fraud is an incredibly destructive crime that leaves many victims in its wake,” said IRS-Criminal Investigation Acting Special Agent in Charge, Andrew Toth. “The impact on homeowners and communities is devastating. While this verdict cannot reverse the damage caused by these defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Lee S. Bickley and Michael D. Anderson and Special U.S. Attorney David J. Ward are prosecuting the case.
The defendants are scheduled to be sentenced by United States District Judge John A. Mendez on March 15, 2016. Each defendant faces a maximum statutory penalty of 20 years in prison on each of their counts of conviction for wire and mail fraud. Vera Kuzmenko faces an additional 20 years for each count of conviction for witness tampering and money laundering. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
On October 20, 2015, Judge Mendez sentenced co-defendants Peter Kuzmenko, 37, of West Sacramento, to 19 years in prison; Aaron New, 41, of Sacramento, to 11 years and three months in prison; Nadia Kuzmenko, 36, formerly of Loomis, to eight years in prison; and Edward Shevtsov, 51, of North Highlands, to eight years in prison. They were found guilty on February 13, 2015, after a 21-day trial, of multiple counts of mail and wire fraud associated with the mortgage fraud scheme. In addition, Peter Kuzmenko, Edward Shevtsov, and Aaron New were found guilty of money laundering associated with the scheme, and Nadia Kuzmenko was found guilty of witness tampering.
Federal Indictments Charge 25 Alleged Members of Syndicato De Nuevo Mexico (SNM) Prison Gang with Participation in Violent Racketeering EnterpriseRead the Press Release
ALBUQUERQUE – A federal grand jury has returned two indictments charging a total of 25 defendants with participating in a violent racketeering enterprise known as the Syndicato de Nuevo Mexico (SNM) Prison Gang. The racketeering indictments, which were filed on Dec. 1, 2015, and were unsealed yesterday, allege that the defendants conspired to violate federal racketeering laws by conspiring to commit violent crimes, including murder, attempted murder and assault, in aid of their racketeering enterprise. The indictments are the result of a multi-agency investigation led by the Albuquerque Division of the FBI that culminated yesterday with a law enforcement operation during which all but two of the defendants charged were arrested.
The racketeering indictments and the results of yesterday’s law enforcement operation were announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Acting Special Agent in Charge Bryan Finnegan of the FBI’s Albuquerque Division, Director Jerry Roark of the Adult Prison Division of the New Mexico Corrections Department, U.S. Marshal Conrad E. Candelaria, New Mexico State Police Chief Pete N. Kassetas, Bernalillo County Sheriff Manuel Gonzales, III, and Albuquerque Police Chief Gorden Eden, Jr.
In announcing the indictments, U.S. Attorney Damon P. Martinez said “The results of this investigation demonstrate the resolve of the law enforcement community in New Mexico to work together to make our communities safer and better places to live, work and raise families.” The U.S. Attorney noted that the two cases are being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates are amongst the highest in the nation, New Mexico’s law enforcement community has been collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
“Our office has worked in close conjunction with the U.S. Attorney’s Office with tremendous success, and this matter is an excellent example of that relationship,” said 2nd Judicial District Attorney Kari E. Brandenburg. “Our community is best served by this type of collaboration amongst law enforcement agencies, and we are pleased to be a part of that process. Federal prosecution of those involved will ensure they are held accountable at the strongest and most stringent level, and put our community another step ahead of the criminal element trying to underscore public safety on our streets and in our neighborhoods.”
“Nothing is more important to the FBI than protecting the American people. That's why we teamed up with our partners and set our sights on a large, violent prison gang that for more than 30 years used murder, kidnapping and assault to intimidate their fellow inmates as well as our communities,” said Acting Special Agent in Charge Bryan Finnegan. “The FBI will continue to strengthen our partnerships, share intelligence, and look for ways to pool our resources to get violent criminals off our streets – and keep them from operating in our prisons when we put them there. I want to thank not only the Albuquerque FBI Special Agents and support staff who worked on this investigation, but also the U.S. Attorney's Office, the El Paso, Phoenix, Denver, Las Vegas and Knoxville FBI Divisions, U.S. Marshal's Service, New Mexico Corrections Department, New Mexico State Police, Bernalillo County Sheriff's Department and Metropolitan Detention Center, and the Albuquerque Police Department.”
“Today is a realization towards true public safety and the New Mexico Corrections Department is proud to contribute,” said Jerry Roark, Director of the Adult Prison Division of the New Mexico Corrections Department. “These arrests help us in our mission is to provide safer prisons for those in our care.”
The two racketeering indictments allege that the 25 defendants charged were members and associates of the SNM Prison Gang, a state-wide gang operating in New Mexico prisons and in communities throughout the state. According to the racketeering indictments, the SNM Prison Gang was formed in the early 1980s at the Penitentiary of New Mexico after the prison riot in Feb. 1980, and expanded throughout the New Mexico penal system. Gang members and associates allegedly are expected to remain loyal to the Gang and work to further its objectives after they have completed their prison sentences and those who do not are allegedly subject to violent forms of discipline. The racketeering indictments allege that significant goals of the SNM Prison Gang include controlling and profiting from drug trafficking both within and outside the penal system; intimidating and influencing other gangs for the purpose of expanding the network for its illegal activities; and engaging in violence to assert its gang identity and protect its territory.
The first of the racketeering indictments charges 24 alleged SNM Prison Gang members and associates with committing four murders, conspiring to commit three murders and conspiring to commit a violent assault for the purpose of gaining entrance to and maintaining and increasing their positons within the SNM Prison Gang, an enterprise engaged in racketeering activity. The indictment includes Notices of Special Findings against the 12 defendants alleged to have committed murder in aid of the Gang’s racketeering affairs. The decision whether or not to seek the death penalty will be made by the Attorney General of the United States based on the recommendations of the U.S. Attorney and after carefully considering each defendant’s background and the circumstances of his crimes.
The second racketeering indictment charges four alleged SNM Prison Gang members and associates, including three charged in the first racketeering indictment, with conspiring to commit two murders and committing two violent assaults for the purpose of gaining entrance to and maintaining and increasing their positons within the SNM Prison Gang.
Twenty-three defendants, including 13 who were in state custody, were arrested during yesterday’s law enforcement operation; one of the defendants was arrested in Tennessee. Two defendants have yet to be apprehended and are considered fugitives. The defendants arrested in New Mexico made their initial appearances in federal court earlier today. All remain in federal custody pending arraignment and detention hearings which will be scheduled for next week.
More than 500 federal, state, county and local law enforcement and corrections officers were involved in yesterday’s law enforcement operation. In addition to the arrests, the law enforcement operation included the execution of 12 federal search warrants in New Mexico and one in Tennessee; a lockdown of three prison facilities in the state for the purpose of conducting cell searches; and more than 50 probation and parole searches throughout the state. The following agencies were involved in the law enforcement operation: Albuquerque Division of the FBI, New Mexico Corrections Department, New Mexico State Police, Bernalillo County Sheriff’s Office, Metropolitan Correctional Center, Albuquerque Police Department, U.S. Marshals Service, and the El Paso, Phoenix, Denver, Las Vegas and Knoxville FBI Divisions.
“Deputy U.S. Marshals and Special Deputized Marshals enhance the safety of our citizens and communities by regularly contributing their expertise in apprehending violent offenders to operations like the one the U.S. Marshals Service participated in yesterday,” said U.S. Marshal Conrad E. Candelaria. “The U.S. Marshals Service will continue to support the prosecution of these racketeering cases as they proceed through the criminal justice system in front of a federal judge.”
“The citizens of New Mexico are safer today because of the collaborative effort between law enforcement agencies. When law enforcement agencies combine resources and assets, we are able to prevent violent crimes,” said New Mexico State Police Chief, Pete Kassetas. “These cases are great examples of how local, county, state and federal agencies are working with State District Attorneys and the U.S. Attorney to prevent violent crimes. This operation reinforces that there are consequences to those that choose to conspire to commit violent crimes in our state.”
“The collaboration between law enforcement and corrections has proven to be highly effective in proactively preventing crime and making our community a safer place to live, work, and visit,” said Bernalillo County Sheriff Manuel Gonzales, III. “This operation has created the opportunity to partner with our state and federal partners to remove and prosecute those who continually participate in criminal activity and sends a clear message that we have a strategy to keep our community safer by holding criminals accountable.”
“This is a monumental accomplishment for our agencies. These arrests will help rid our streets of systematic, organized crime and violent, illegal activities perpetuated by accused repeat offenders,” said Chief Gorden Eden, Jr., of the Albuquerque Police Department. “We are extremely thankful for the collaborative efforts of our law enforcement partners which ensure cases like this have a powerful impact – one that will positively affect our community for years to come.”
INDICTMENT IN UNITED STATES v. DELEON et al., 15-CR-4268 KG
Summary of the Charges
Indictment 15-CR-4268 KG charges 24 defendants with participating in a racketeering enterprise, the SNM Prison Gang, and committing violent acts to achieve the objectives of their enterprise.
Counts 1, 2, 3 and 5 charge certain defendants with committing four murders in Doña Ana County, N.M. Counts 1 and 2 charge the murders of persons identified as F.C. and R.G. on March 26, 2001. Count 3 charges the murder of a person identified as F.S. on June 17, 2007, and Count 5 charges the murder of a person identified as J.M. on March 7, 2014. If convicted, the defendants each face a statutory penalty of life imprisonment and are eligible for the death penalty.
Counts 4, 7 and 8 charge certain defendants with conspiring to murder three persons in Doña Ana County, N.M. Count 4 charges a conspiracy to murder a person identified as J.M. on March 7, 2014, and Counts 7 and 8 charge conspiracies to murder persons identified as D.S and G.M. from 2013 until Dec. 1, 2015. If convicted, the defendants each face a statutory maximum penalty of ten years in prison.
Count 6 charges certain defendants with conspiring to commit assault resulting in serious bodily injury to a person identified as J.R. in Dona Ana County, N.M., from 2003 until July 13, 2015. If convicted, the defendants each face a statutory maximum penalty of 20 years in prison.
Defendants Charged in Indictment
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Angel DeLeon, 38, a Mexican national, is charged in Count 1.DeLeon has yet to be arrested and is considered a fugitive.
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Joe Gallegos, 46, of Albuquerque, N.M., is charged in Count 1.
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Edward Troup, 41, of Albuquerque, N.M., is charged in Counts 1 and 3.
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Leonard Lujan, 49, of Albuquerque, N.M., who was in state custody, is charged in Counts 1 and 2.
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Billy Garcia, 61, of Albuquerque, N.M., who was in state custody, is charged in Counts 1 and 2.
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Eugene Martinez, 36, of Albuquerque, N.M., is charged in Count 2.
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Allen Patterson, 45, of Silver City, N.M., is charged in Count 2.
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Christopher Chavez, 39, of Albuquerque, N.M., is charged in Count 2.
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Javier Alonso, 36, of Roswell, N.M., who was in state custody, is charged in Count 3.
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Arturo Arnulfo Garcia, 48, of Denver, Colo., is charged in Count 3.Garcia has yet to be arrested and is considered a fugitive.
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Benjamin Clark, 37, of Las Cruces, N.M., who was in state custody, is charged in Count 3.
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Ruben Hernandez, 42, of Clovis, N.M., is charged in Count 3.
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Jerry Armenta, 35, of Merced, Calif., who was in state custody, is charged in Counts 4 and 5.
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Jerry Montoya, 35, of Albuquerque, N.M., who was in state custody, is charged in Counts 4 and 5.
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Mario Rodriguez, 31, of Silver City, N.M., who was in state custody, is charged in Counts 4 and 5.Rodriguez also is charged in Indictment 15-CR-4269 KG.
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Timothy Martinez, 32, of Santa Fe, N.M., who was in state custody, is charged in Counts 4 and 5.
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Mauricio Varela, 45, of Albuquerque, N.M., who was in state custody, is charged in Counts 4 and 5. Varela also is charged in Indictment 15-CR-4269 KG.
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Daniel Sanchez, 43, of Albuquerque, N.M., who was in state custody, is charged in Counts 4 and 5.
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Gerald Archuleta, 49, of McMinnville, Tenn., is charged in Count 6.Archuleta was arrested in Tennessee and will be transferred to the District of New Mexico to face the charges against him.
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Conrad Villegas, 31, of Deming, N.M., who was in state custody, is charged in Count 6.
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Anthony Ray Baca, 52, of Albuquerque, N.M., who was in state custody, is charged in Counts 4, 6, 7 and 8.
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Robert Martinez, 51, of Santa Fe, N.M., who was in state custody, is charged in Counts 7 and 8.Martinez also is charged in Indictment 15-CR-4269 KG.
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Roy Paul Martinez 43 of Albuquerque, N.M., who was in state custody, is charged in Counts 7 and 8.Martinez,
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Christopher Garcia, 40, of Albuquerque, N.M., is charged in Count 8.
This case was investigated by the Albuquerque Division of the FBI, New Mexico Corrections Department, New Mexico State Police and the New Mexico Office of the Medical Investigator, and is being prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Las Cruces Branch Office.
INDICTMENT IN UNITED STATES v. VARELA, et al., 15-CR-4269 KG
Summary of the Charges
Indictment 15-CR-4269 KG charges four defendants with participating in a racketeering enterprise, SNM, and committing violent acts to achieve the objectives of their enterprise.
Counts 1 and 3 charge the four defendants with conspiring to murder two persons in Santa Fe County, N.M. Count 1 charges a conspiracy to murder a person identified as P.S. in March 2011, and Count 3 charges a conspiracy to murder a person identified as A.S. in June 2011. If convicted, the defendants each face a statutory maximum penalty of ten years in prison.
Counts 2 and 4 charge the four defendants with committing violent assaults in aid of racketeering in Santa Fe County, N.M. Count 2 charges an assault with a dangerous weapon on a person identified as P.S. on March 14, 2011, and Count 4 charges an assault resulting in serious bodily injury on a person identified as A.S. on June 24, 2011. If convicted, the defendants each face a statutory maximum penalty of 20 years in prison.
Defendants Charged in Indictment
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Mauricio Varela, 45, of Albuquerque, N.M., who was in state custody, also is charged in Indictment 15-CR-4268 KG.
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David Calbert, 39, of Clovis, N.M., was in state custody.
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Robert Martinez, 51, of Santa Fe, N.M., who was in state custody, also is charged in Indictment 15-CR-4268 KG.
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Mario Rodriguez, 31, of Silver City, N.M., who was in state custody, also is charged in Indictment 15-CR-4269 KG.
This case was investigated by the Albuquerque Division of the FBI, New Mexico Corrections Department and New Mexico State Police, and it is being prosecuted by Assistant U.S. Attorneys in the U.S. Attorney’s Las Cruces Branch Office.
The public is reminded that charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Photographs of the two fugitives, Angel DeLeon and Arturo Arnulfo Garcia, are attached to this press release. Anyone with information on the whereabouts of this/these fugitive(s) is asked to contact the Albuquerque FBI (24 hours) at (505) 889-1300. Tips also can be submitted online at https://tips.fbi.gov.
SNM- DeLeon Indictment SNM- Varela Indictment
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Federal Indictment for Interfering with Efforts to Fight CVS Fire During Baltimore RiotsRead the Press Release
Baltimore, Maryland – Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, was arrested on federal charges today for obstruction of firefighters during a civil disorder and for aiding and abetting arson, in connection with a fire at CVS during the civil disturbance in Baltimore on April 27, 2015. The federal indictment was returned on December 1, 2015 and unsealed late on December 3, 2015.
“Anyone who considers harming people or property during a riot should know that we can track them down and send them to prison,” U.S. Attorney Rod J. Rosenstein said. "Federal law enforcement agencies are working closely with local police and prosecutors to investigate crimes committed during the Baltimore riots."
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the two count indictment, on April 27, 2015, riots erupted in Baltimore and at approximately 6:30 p.m. the Baltimore City Fire Department (BCFD) was notified of a fire at the CVS Pharmacy located at 2509 Pennsylvania Avenue, which is adjacent to the intersection of Pennsylvania Avenue and West North Avenue in Baltimore. Several BCFD engines were dispatched to suppress and extinguish the fire at the CVS. Firefighters deployed fire hoses to provide water in those efforts and to protect firefighters inside and near the building. Throughout the course of BCFD’s fire suppression and extinguishment efforts, rioting continued in the vicinity of CVS Pharmacy.
One hose was attached to a hydrant near the intersection of Pennsylvania and West North Avenues. As the firefighters deployed the hose, the indictment alleges that Butler stood on top of the hose. Once the hose was attached to the hydrant and the water was flowing into the hose, Butler allegedly punctured the hose twice using a sharp object - first near its attachment to the fire hydrant and then on a section of the hose that extended along the ground across Pennsylvania Avenue. Both punctures released a high-pressure stream of water from the hose and rendered the hose inoperable. As a result, the efforts to put out the fire at the CVS were impeded and delayed.
Butler faces a maximum sentence of five years in prison for obstruction of firefighters during a civil disorder, and a maximum of 20 years in prison for arson. An initial appearance is expected to be held on Monday, December 7, 2015, in U.S. District Court in Baltimore, but no time has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Federal prosecutors previously have charged three other defendants for arson crimes committed during the Baltimore riot on April 27, 2015. Donta Betts, age 19, of Baltimore, is charged with attempted arson of a police cruiser, civil disorder and unlawful making of a destructive device. Darius Raymond Stewart, age 21, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 24, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
The investigation into this and other arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Philip A. Selden and Matthew J. Maddox, who are prosecuting the case.
El Departamento de Justicia Colabora con la República del Ecuador para Combatir la Discriminación en el EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia de los Estados Unidos y la República del Ecuador firmaron hoy un acuerdo de asociación formal para combatir la discriminación en el empleo por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, Jefa de la División de Derechos Civiles, y el embajador ecuatoriano Francisco Borja Cevallos firmaron un memorándum de entendimiento (MOU, por sus siglas en inglés) que establece una asociación entre la embajada y sus consulados y la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés), de la División de Derechos Civiles. La disposición antidiscriminatoria de la INA prohíbe que empleadores en los Estados Unidos discriminen durante la contratación, el despido, el reclutamiento o la verificación de la elegibilidad de empleo de un trabajador por motivos de ciudadanía, estatus migratorio o nacionalidad de origen.
El propósito del MOU es habilitar a los ecuatorianos con autorización para trabajar en los Estados Unidos al educarles en cuanto a sus derechos y brindarles los recursos que necesitan para proteger dichos derechos. Asimismo, el MOU promoverá la capacitación de empleadores con respecto a sus responsabilidades en virtud de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), la cual prohíbe la discriminación en el empleo por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. En concreto, el MOU dispone que:
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La OSC ayudará a capacitar al personal consular ecuatoriano en cuanto a la disposición antidiscriminatoria de la INA, participará en eventos organizados por los consulados ecuatorianos para educar a los trabajadores y empleadores y distribuirá materiales educativos a la embajada y sus consulados.
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La embajada establecerá un sistema para transferir denuncias de discriminación de la embajada y sus consulados a la OSC.
“La ratificación hoy de este MOU histórico representa un avance crítico en la asociación dinámica entre nuestro dos países,” declaró Secretaria de Justicia Auxiliar Adjunta Principal Gupta. “Juntos, seguiremos promoviendo nuestro compromiso compartido de habilitar a los trabajadores, combatir la discriminación ilegal y proteger los derechos de nuestra gente.”
“Estos acuerdos son vitales para asegurar que la comunidad ecuatoriana en los Estados Unidos esté informada de sus derechos y los diferentes recursos que el Departamento de Justicia ofrece a través de sus oficinas y líneas de ayudas, así como de la ayuda que la Embajada ecuatoriana y sus consulados pueden proveer para asegurar que los derechos de los inmigrantes ecuatorianos sean respetados,” dijo el Embajador Borja Cevallos.
El acuerdo de hoy aprovecha el trabajo conjunto de educación de la comunidad ya en curso entre la OSC y la Embajada del Ecuador y sus consulados.
La OSC es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en la contratación, el despido o el reclutamiento o la recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias y la intimidación. Además de sus esfuerzos por aplicar la ley, la OSC se dedica a educar al público acerca de sus derechos y responsabilidades de acuerdo con la disposición antidiscriminatoria de la INA. Más información sobre la OSC se encuentra disponible en www.justice.gov/crt/about/osc.
Para más información sobre las protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Ecuador Memorandum de Entendimiento
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E-Commerce Exec and Online Retailer Charged with Price Fixing Wall PostersRead the Press Release
A one-count indictment was unsealed yesterday in the U.S. District Court for the Northern District of California in San Francisco against Daniel William Aston and his company, Trod Ltd. (doing business as Buy 4 Less, Buy For Less, and Buy-For-Less-Online), a U.K. company headquartered in Birmingham, England. According to the felony charges, Aston, a director and part owner of Trod, and his co-conspirators fixed the price of certain posters sold online through Amazon Marketplace from as early as September 2013 to in or about January 2014. Today’s announcement comes after U.K. law enforcement and the FBI successfully conducted searches of Trod Ltd.’s headquarters and Aston’s residence in West Midlands, U.K.
“U.S. consumers deserve competitive markets when they shop online.” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “This company and its owner conspired to fix the prices for poster art and consumers unknowingly suffered the consequences. It doesn’t matter whether price-fixers operate from an office in California or a warehouse in England. We will continue to prosecute conspiracies that subvert online competition.”
According to the charge, Aston and his co-conspirators discussed the prices of certain posters sold in the United States through Amazon Marketplace and agreed to adopt specific pricing algorithms for the sale of certain posters, with the goal of offering online shoppers the same price for the same product and coordinating changes to their respective prices.
Aston is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years and a fine of $1 million. Trod Ltd. is charged with one count of price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and the United Kingdom.
This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online wall décor industry, which is being conducted by the Antitrust Division’s San Francisco Office with the assistance of the FBI’s San Francisco Division. Anyone with information on price fixing or other anticompetitive conduct related to other products in the wall décor industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Defendant in land bank scheme sentencedRead the Press Release
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that David Johnson, 49, of Indianapolis, Indiana was sentenced to prison today by U.S. District Judge William T. Lawrence for his role in the City of Indianapolis’ Land Bank scandal.
Johnson, the Executive Director of the Indianapolis Minority AIDS Coalition (“IMAC”) was sentenced to 66 months= imprisonment following his conviction at trial for three counts of wire fraud and one count of money laundering. Johnson was also sentenced to serve three years of supervised release following his release from prison.
Johnson and co-defendant Reginald Walton, the former Director of the Indianapolis Land Bank, were convicted at trial of participating in scheme to defraud the City of Indianapolis. Under this scheme, for-profit purchasers of the properties paid bribes and kickbacks to Walton to bypass the legal procedure under which for-profit businesses may acquire foreclosed properties held by the Land Bank. After receiving the bribes and kickbacks, Walton diverted the properties from the City to IMAC, which then transferred the properties to the for-profit purchaser. Johnson participated in this scheme to defraud by making his charity available for the scheme and funneling bribes and kickbacks from the for-profit entity to Walton.
In addition, Johnson and Walton participated in a scheme where they fleeced individuals who had previously been victimized by a separate fraudulent real estate scheme in Indianapolis. Initially, Walton promised to transfer City-owned real estate to the victims of the separate real estate scam for $1,000. Walton, however, subsequently increased the price of the properties to $4,000. Walton and Johnson then pocketed the additional $3,000 that they collected from each victim. In all, Walton and Johnson defrauded fourteen victims in this manner. United States Attorney Josh J. Minkler stated “Abandoned properties are a blight on this community and a threat to public safety. The Land Bank was created as a public service to eliminate that problem. Instead, Reggie Walton and David Johnson used the Land Bank to serve themselves through insider deals involving bribes and kickbacks. The clear message that was sent today is that a federal prison cell awaits those who engage in a scheme of public corruption.”
Minkler further stated, “To be clear a federal sentence of 66 months in prison means just that. You go to prison. There is no parole. There is no half-way house. This is no suspended sentence. There is no home detention or community corrections. At a minimum, Mr. Johnson will be required to serve 85% of the 5 and ½ year sentence in a federal prison.”
Assistant United States Attorneys Bradley A. Blackington and Cynthia J. Ridgeway prosecuted the case for the government. The investigation was conducted by the Federal Bureau of Investigation and the Indiana State Police.
Defendant Pleads Guilty in Tallahassee Cyberstalking CaseRead the Press Release
Michael Daniel Rubens, 31, formerly of Tallahassee, Florida, pleaded guilty yesterday to cyberstalking, unauthorized access to a protected computer and aggravated identity theft. The guilty plea was announced by Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida.
During his guilty plea, Rubens admitted that between January 2012 and January 2015, he publicly humiliated dozens of young women by hacking into their online accounts, including e-mail and social media; stealing photographs and other personal information; using the photographs to create pornography; and posting the pornographic images on social media websites and on a revenge pornography website that was recently shut down by the FBI. Rubens engaged in most of the conduct from his residence in Tallahassee. He used software to conceal his Internet Protocol (IP) address.
Rubens’ victims included an employee of a local restaurant he frequented, an out-of-town colleague, an acquaintance in his office building, clients of the defendant’s employer, a former girlfriend and her colleagues, high school classmates and the victims’ relatives or friends. For one particular woman, Rubens’ laptop contained 470 files with more than 5,000 references to the victim. Rubens’ computer searches focused on finding the victims’ personal identifying information, such as past addresses, family information and other personal data that could be used to answer security questions. As a result of Rubens’ conduct, the victims became afraid to conduct any online activities and often deleted their social media presence entirely. In some instances, the conduct also affected the victims’ personal relationships.
The sentencing hearing is scheduled for Feb. 25, 2016, at 11:00 a.m. at the U.S. Courthouse in Tallahassee. For each of the 12 counts of cyberstalking and unauthorized access to a protected computer, Rubens faces a maximum of five years in prison. For the aggravated identity theft charge, he faces a mandatory two years in prison to be served consecutively to any other sentence.
This case resulted from investigations by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Florida State University Police Department and the Leon County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Jason S. Beaton of the Northern District of Florida.
The U.S. Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Defendant Pleads Guilty in Tallahassee Cyberstalking CaseRead the Press Release
TALLAHASSEE, FLORIDA – Michael Daniel Rubens, 31, formerly of Tallahassee, pled guilty yesterday to cyberstalking, unauthorized access to a protected computer, and aggravated identity theft. The guilty plea was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea, Rubens admitted that, between January 2012 and January 2015, he publicly humiliated dozens of young women by hacking into their online accounts, including e-mail and social media, stealing photographs and other personal information, using the photographs to create pornography, and posting the pornographic images on social media websites and on a revenge pornography website that was recently shut down by the FBI. Rubens engaged in most of the conduct from his residence in Tallahassee. He used software to conceal his IP address.
Rubens’ victims included an employee of a local restaurant he frequented, an out-of-town colleague, an acquaintance in his office building, clients of the defendant’s employer, a former girlfriend and her colleagues, high school classmates, and the victims’ relatives or friends. For one particular woman, Rubens’ laptop contained 470 files with more than 5,000 references to the victim. Rubens’ computer searches focused on finding the victims’ personal identifying information, such as past addresses, family information, and other personal data that could be used to answer security questions. As a result of Rubens’ conduct, the victims became afraid to conduct any online activities and often deleted their social media presence entirely. In some instances, the conduct also affected the victims’ personal relationships.
The sentencing hearing is scheduled for February 25, 2016, at 11:00 a.m. at the United States Courthouse in Tallahassee, Florida. For each of the 12 counts of cyberstalking and unauthorized access to a protected computer, Rubens faces a maximum of five years in prison. For the aggravated identity theft charge, he faces a mandatory two years in prison to be served consecutively to any other sentence.
This case resulted from investigations by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida State University Police Department, and the Leon County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jason S. Beaton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Connecticut U.S. Attorney’s Office Collects More Than $14 Million for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
New Haven - U.S. Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office for the District of Connecticut collected $14,215,633.55 in criminal and civil actions in Fiscal Year 2015. Of this amount, $4,729,959.08 was collected in criminal actions and $9,485,674.47 was collected in civil actions.
Additionally, the District of Connecticut collected $27,311,898.49 in cases pursued jointly with other U.S. Attorney’s Offices and components of the Department of Justice. Of this amount $320,954.29 was collected in criminal actions and $26,990,944.29 was collected in civil actions.
Attorney General Loretta E. Lynch announced on Thursday 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 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.
“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.”
“This past fiscal year, our Office’s dedicated and talented attorneys and staff helped to recover over $41 million,” said U.S. Attorney Daly. “We are gratified that these funds are returned directly to victims of crime, provide needed services for these victims and fund ongoing federal, state and local law enforcement efforts. One of our primary missions is to seek justice for victims, remove ill-gotten gains from wrongdoers and protect the integrity of important government programs.”
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.
In addition, the U.S. Attorney’s office in Connecticut, working with partner agencies and divisions, collected $4,443,273 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.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 65 Assistant U.S. Attorneys and approximately 50 staff members at offices in New Haven, Hartford and Bridgeport.
Connecticut Construction Company Fined $200K for Underfunding Retirement Plan, Filing False Tax ReturnRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHERRY HILL CONSTRUCTION, INC., a company based in North Branford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation and a fine of $200,000 for underfunding its retirement plan and filing a false tax return.
On January 13, 2015, CHERRY HILL CONSTRUCTION, INC., (“CHERRY HILL”) pleaded guilty to one count of filing a false tax return, and one count of making a false statement in relation to documents required by the Employee Retirement Income Security Act of 1974 (“ERISA”). ERISA is a federal law that sets minimum standards for retirement plans in private industry, including a requirement that plan sponsors provide adequate funding for a plan.
According to court documents and statements made in court, CHERRY HILL provides statewide service in site development, on-site crushing, trucking, demolition, as well as roll-off dumpsters, top soil, aggregates and landscaping. CHERRY HILL was awarded and completed prevailing wage construction projects requiring payment of the prevailing wage rate plus the fringe rate. The fringe rate is the cost of benefits to the employee.
When a company is awarded a prevailing wage project, the company must submit certified payrolls that list the hours, prevailing wage rate and fringe they are paying each employee. The company can either pay the employee the fringe directly or open a benefit plan with the fringe payment being deposited into an account for the benefit of that employee. The company is then paid by the federal, state or municipal governments the amount of payroll, including the fringe, after receiving the certified payrolls. The government entity for which the project is being worked pays these funds only because the employer certifies that the prevailing wage and fringe is being paid to an employee directly or being deposited into a benefit plan.
CHERRY HILL opened a profit sharing/401(k) plan that was covered under ERISA. CHERRY HILL has admitted that, in 2010 and 2011, it underfunded its retirement plan by approximately $950,000. CHERRY HILL further admitted that it filed a corporate tax return for the 2010 tax year that inflated its actual contribution to the plan, which resulted in an increased employee benefit deduction.
CHERRY HILL has fully funded its retirement plan and paid $193,000 in back taxes, interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division; U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Labor – Employee Benefits Security Administration, and U.S. Department of Transportation – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Cleveland Woman Sentenced for Hospice FraudRead the Press Release
OXFORD, Miss. - Felicia C. Adams, United States Attorney for the Northern District of Mississippi; Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General; Donald Alway, Special Agent in Charge at the Federal Bureau of Investigation, and Mississippi Attorney General Jim Hood announced that:
Sandra Livingston, 64, of Cleveland, Mississippi, was sentenced on December 3, 2015 by United States District Judge Sharion Aycock in Aberdeen, Mississippi to thirty-six (36) months imprisonment to be followed by three (3) years of supervised release. She was also ordered to pay
$1,098,639 in restitution to the Medicare program. Livingston will report to the Federal Bureau of Prisons on January 25, 2016.
Livingston previously pled guilty on July 30, 2015 to conspiracy to commit healthcare fraud in violation of 18 U.S.C. §§ 1347 & 1349. Livingston owned and operated Milestone Hospice, located in Grenada, Mississippi, and admitted to using patient recruiters to solicit patients that were not hospice appropriate. Through Milestone Hospice, Livingston submitting fraudulent charges to Medicare and received over one million dollars in Medicare funds based on alleged hospice services for patients that were not eligible for hospice services; or for services that were never provided.
Felicia C. Adams, United States Attorney, said, “The United Sates Attorney’s Office for the Northern District of Mississippi is working aggressively to pursue unscrupulous hospice care providers who commit fraudulent acts and bring them to justice. Yesterday’s sentence insures that these illegal practices will not be tolerated and fraudsters will be punished. Our office appreciates the hard work of all of the federal, state, and local agencies that participated in the investigation.”
"Working with our law enforcement partners, we have pooled our resources and taken a team approach to tackling the hospice fraud problem in Northern Mississippi," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "The message I would send to those who have stolen over a million of dollars from Medicare and Medicaid is this: You will eventually end up in federal prison just like the defendant in this case."
“This scheme is particularly sickening because the defendant charged Medicare over a million dollars in services for "treating" folks who have no idea they were on hospice because they weren't at the end of the lives,” said Donald Alway, Special Agent in Charge of the FBI in Mississippi. “The FBI and our partners are fully committed to finding and arresting those who commit such crimes.”
“Healthcare fraud, while directly affecting Mississippi’s most vulnerable citizens, also steals
tax-payer money from the Medicaid and Medicare programs. The Attorney General’s Office will continue to participate, with other State and Federal agencies, in this successful multi-agency approach to fight healthcare fraud in our State," said Attorney General Jim Hood.
This is the third conviction as part of a joint effort by the United States Attorney’s Office, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the Mississippi Attorney General's Medicaid Fraud Control Unit and targeting fraudulent hospice providers who have billed Medicare and Medicaid for medically unnecessary services.
Canadian Woman Sentenced for Smuggling MethyloneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Erika Ruby-Lynn Foss, 27, of Toronto, Ontario, Canada, who was convicted of conspiracy to distribute methylone, was sentenced to time-served and one year of supervised release by Chief U.S. District Judge Frank P. Geraci.Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on February 22, 2014, the defendant attempted to enter the United States at the Rainbow Bridge Port of Entry. After being referred for secondary inspection, Foss was found in possession of four ounces of methylone that she was intending to deliver a person on Niagara Falls Boulevard in Amherst.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and U.S. Customs and Border Protection officers, under the direction of Rose Hilmey, Acting Director of Field Operations.
California Woman and Company Charged with Clean Air Act ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHEERY WAY, INC., and ELAINE CHIU, age 60, a resident of San Francisco, California, were charged today in a one-count Bill of Information with a felony violation of the Clean Air Act.
According to the Bill of Information, on or about April 2, 2011, in the Eastern District of Louisiana, CHEERY WAY, INC., and CHIU did knowingly fail to notify and report to the Louisiana Department of Environmental Quality the demolition of the Mississippi Queen Riverboat, a facility, which contained regulated asbestos containing material, to wit: wall and ceiling tiles, at least ten days prior to the start of the demolition as required by the Clean Air Act, in violation of Title 42, United States Code, Section 7413(c)(2)(B) and Title 40, Code of Federal Regulations, Section 61.145(b).
If convicted, CHEERY WAY, INC., faces a maximum term of probation of five years and a fine of $500,000. If convicted, CHIU, faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Environmental Protection Agency-Criminal Investigation Division and the Louisiana Department of Environmental Quality-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
California Medical Device Maker Settles Allegations it Improperly Compensated VA PodiatristsRead the Press Release
A medical device manufacturer based in Sunnyvale, California has agreed to pay $3 million to settle allegations it improperly compensated podiatrists at four Veterans Affairs medical facilities to promote use of its product. Government investigators allege that Spiracur, Inc. improperly compensated VA podiatrists with gifts, gratuities and excessive speaking fees in order to increase sales of its product.
“The law is clear: Government employees are not allowed to accept gifts and gratuities for steering business to a particular company,” said U.S. Attorney Annette L. Hayes. “Care decisions should not be based on who has provided the biggest gift. Taxpayers need to know medical facilities are choosing the right product at the right price for our veterans and others who rely on publicly-funded medical programs.”
Spiracur manufactures and sells a negative pressure wound treatment product, known as “the SNaP system,” which is used primarily in the treatment of diabetic ulcers. Spiracur improperly compensated VA podiatrists who worked at VA facilities in Phoenix, Atlanta, San Francisco and Cleveland. Between 2010 and 2015, Spiracur sold those facilities just over $3.3 million in SNaP systems.
“The integrity of VA’s procurement process of healthcare devices is essential to providing effective care to our nation’s veterans,” said Michael E. Seitler, Special Agent in Charge for the U.S. Department of Veterans Affairs, Office of Inspector General, Northwest Field Office. “This case is one example of the OIG investigating allegations of undue influence into that process. The settlement of this case returns funds to VA that will be used to help care for veterans.”
Under the terms of the settlement agreement, Spiracur admits no wrongdoing and agrees to cooperate with any further investigation into the medical staff who accepted the improper compensation. As part of a separate transaction, Spiracur’s assets are in the process of being acquired by KCI USA, Inc.
The matter was investigated by the Veterans Affairs Office of Inspector General. The case was handled by Assistant United States Attorney Kayla Stahman.
Bronx Woman Sentenced for Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SUZANNE DIANNE BENT, 55, a resident of the Bronx, N.Y., was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation for passport fraud.
According to court documents and statements made in court, BENT is believed to be a native of Jamaica who was illegally brought to the U.S. by her grandmother in 1969. BENT has a criminal history that includes multiple convictions for theft-related crimes, and she has used multiple aliases and dates of birth during her life
On April 1, 2013, BENT applied for a U.S. passport at the Stamford, Connecticut Passport Agency. As proof of citizenship, she provided a fraudulent New York City birth certificate and other documentation.
The investigation further revealed that BENT had fraudulently obtained a Social Security number and, between August 2004 and March 2013, received approximately $76,365 in benefits from the Social Security Administration, Supplemental Security Income Program based on a claimed mental or physical disability.
BENT was ordered to pay restitution in the amount of $76,365.35.
BENT was arrested on December 5, 2014. On July 20, 2015, she pleaded guilty to one count of making a false statement in an application for a U.S. passport.
At the conclusion of the sentencing hearing, BENT was taken into custody by U.S. Immigration and Customs Enforcement.
This matter was investigated by the U.S. Department of State, Bureau of Diplomatic Security; the Social Security Administration, Office of Inspector General – Office of Investigations; and U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
8 Indicted for Violating Federal Drug and Money Laundering LawsRead the Press Release
PITTSBURGH - Four residents of Western Pennsylvania, three of Texas, and one of Florida, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Oct. 21 and unsealed yesterday, named:
- Dante Ivan Lozano, 40, of Olmito, Texas;
- Jeffrey Turner, 35, of McKeesport, Pennsylvania;
- April Racan, 37, of McKeesport, Pennsylvania;
- Joseph Borrelli, 49, of Glassport, Pennsylvania;
- Daniel Cosme, 35, of San Benito, Texas;
- Hugo Balboa, 48, of Texas;
- Brian Kettering, 29, of Charleroi, Pennsylvania; and
- William Coulson, 50, of St. Augustine, Florida.
According to the indictment, between 2011 and 2015, in the Western District of Pennsylvania and elsewhere, Lozano, Turner, Racan, Borrelli, and Kettering conspired to distribute five kilograms or more of cocaine. Lozano, Turner, Racan, Cosme, Balboa, Kettering and Coulson are charged with conspiracy to commit money laundering.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000 or both on the drug conspiracy count, and a sentence of not more than 20 years in prison, a fine of $500,000, or both on the money laundering conspiracy count.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Service in Pittsburgh and the Drug Enforcement Administration in Brownsville, Texas, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
8 Charged with Making False Statements in Connection with the Acquisition of FirearmsRead the Press Release
PITTSBURGH – Six men and two women have been indicted by a federal grand jury in Pittsburgh on charges of making false statements in connection with the acquisition of firearms, United States Attorney David J. Hickton announced today.
The 22-count superseding indictment, returned on Dec. 1, named eight defendants:
- Michael Bassier, 31, formerly of Brooklyn, NY;
- Robyn Brown, 29, of Pittsburgh, Pa;
- Christopher Buchanon, 23, of Pittsburgh, Pa;
- Brandon Goode, 25, of Pittsburgh, Pa.;
- Nathan Lawrence, 33, formerly of Brooklyn, NY;
- Mychael Scott, 31, of Pittsburgh, Pa;
- Talen Simmons, of Pittsburgh, Pa; and
- Brandon Williams, formerly of Pittsburgh, Pa.
According to the superseding indictment, between Sept. 7, 2014, and Aug. 12, 2015, Bassier caused another to make false statements in connection with the acquisition of 44 firearms from licensed dealers in the Western District of Pennsylvania. Bassier is the only defendant charged in each of the 22 counts of the indictment. The remaining defendants are charged in counts alleging that they made or caused the making of false statements with respect to particular firearms.
“This investigation highlights ATF’s commitment to interdict firearms trafficking throughout our region. ATF will continue to pursue criminal networks who funnel illegally obtained firearms into the pipeline that fuels black markets throughout our region, including New York City,” said ATF Special Agent in Charge Sam Rabadi. “ATF and our law enforcement partners will continue to work shoulder to shoulder to identify and arrest sources of illegal guns to prevent gun violence and make our neighborhoods a safe and peaceful place to live.”
At 21 of the 22 counts, the law provides for a maximum sentence of not more than ten years in prison, a fine of not more than $250,000, or both. At the remaining count, which charges only Bassier and Lawrence, the law provides for a maximum sentence of not more than five years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with detectives from the City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office, conducted the investigation leading to the superseding indictment in this case. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
3 December 2015
‘Pill Mill’ Employees Plead Guilty to Oxycodone ChargeRead the Press Release
COLUMBUS, Ohio – Dr. David Rath, 60, of Alexandria, Ohio, and Karen Climer, also known as Karen D. Muncey and Karen D. Long, 58, of Columbus, each pleaded guilty in U.S. District Court to one count of conspiracy to illegally distribute oxycodone.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and , announced the plea entered into today before U.S. Magistrate Judge Elizabeth Preston Deavers.
According to court documents, Rath was employed as a physician and Climer as an administrative employee at Columbus Southern Medical Clinic, which purported to be a “family medical practice.”
Rath supervised two physician assistants who were each seeing between 50-100 patients a day. Climer scheduled between 200 and 400 patients a day total, knowing that many of the patients were drug seekers addicted to oxycodone. The practice prescribed pain killers to these patients without properly examining, diagnosing and treating them. The clinic focused on a drug seeking patient population that was addicted to pain medications and other controlled substances.
It is estimated that half of the patients receiving controlled substances at the clinic were receiving them unlawfully. Climer also falsified drug tests for patients who tested positive for illegal drugs or who did not have the prescribed controlled substances in their system.
Each defendant faces a maximum prison sentence of 20 years in prison and a potential maximum fine of $1 million.
U.S. Attorney Stewart commended the cooperative investigation by the DEA Tactical Diversion Squad and Ohio Bureau of Workers Compensation, as well as Assistant United States Attorney Kenneth F. Affeldt and Department of Justice Trial Attorney Richard M. Rolwing, who are representing the United States in this case.
Wyoming U.S. Attorney's Office Collects $5,355,903 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Cheyenne – U.S. Attorney Christopher A. “Kip” Crofts announced today that the District of Wyoming U.S. Attorney’s Office collected $5,355,903 in criminal and civil actions in Fiscal Year 2015. Of this amount, $3,801,862 was collected in criminal actions and $1,554,041 was collected in civil actions.
Additionally, the District of Wyoming worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $272,780 in cases pursued jointly with these offices.
Attorney General Loretta Lynch announced on December 3rd 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 FY 2015 represents nearly seven and a half times the appropriated $2.93 billion budget 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.”
“I am quite proud of the efforts of the Wyoming U.S. Attorney’s Office in collecting significantly more than the cost of operating the office and for once again providing tremendous value to the American taxpayers,” said U.S. Attorney Crofts.
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.
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.
Virginia man convicted on child pornography charges, traveling to Ohio to engage in sex with minorRead the Press Release
A Virigina man was convicted of traveling across state lines to engage in sexual conduct with an underage girl, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
David W. Vickers, 42, of Leesburg, Virginia, was convicted on three counts: receiving and distributing visual depictions of minors engaged in sexually explicit conduct, enticement, and travel with intent to engage in illicit sexual conduct.
Vickers communicated online with what he believed to be a 29-year-old Ohio woman and her 13-year-old daughter. In fact, Vickers was communicating with law enforcement investigators. Vickers sent 20 child pornography videos, 11 bestiality videos and discussed how he liked to drug and tie up children. In January 2015, he travelled to Ohio for the purposes of having sex with what he believed to be a 13-year-old girl and was arrested, according to court documents.
He is scheduled to be sentenced on March 15. He faces a recommended sentencing guideline range of 30 years to life in prison.
The case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kevin Filiatraut following an investigation by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
Vermont U.S. Attorney’s Office Collects $1,295,116.75 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
Burlington - U.S. Attorney Eric S. Miller announced today that the District of Vermont collected $1,295,116.75 in criminal and civil actions in Fiscal Year 2015. Of this amount, $787,749.50 was collected in criminal actions and $507,367.25 was collected in civil actions.
Additionally, the District of Vermont worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $620,882.19 in cases pursued jointly with these offices. Of this amount, $14,319.69 was collected in criminal actions and $606,562.50 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 $23.1 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 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 Vermont, working with partner agencies and divisions, collected $1,129,535.00 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.
United States Attorney’s Office Recovers over $88,000,000 in Fiscal Year 2015; Record Amount Shared with Local Police DepartmentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that the Western District of New York Office recovered in Fiscal Year 2015, $88,246,428.15 as a result of wide-ranging efforts in criminal, civil and asset forfeiture cases. As a result, $9,089,436 was distributed to victims of crime in the past year and a record amount of the recovered monies were provided as aid to law enforcement agencies, and in large part, provided to taxpayers as a result of being transmitted to the United States Treasury.In making the announcement, U.S. Attorney Hochul praised the hard work and dedication of Office attorneys and support staff that sought not only to put convicted defendants in jail, but took the profit out of crime in a more literal sense. “This Office strives mightily to protect the public by prosecuting those who would cause our residents harm. At the same time, we believe in the well-known saying “crime doesn’t pay.” To help make this phrase a reality for Western New Yorkers, our Office uses asset forfeiture laws and civil lawsuits to recover money for taxpayers, victims of crime, and local police departments. In other words, we don’t just take the profit out of crime, we use it for the public good.
The $88,246,428.15 represents more than 8 ½ times the amount of money it took to operate the entire United States Attorney’s Office for the year. “Because our budget is approximately $10 million, the recovered money in reality means taxpayers spent nothing for the protection and safety provided by this Office, and while also obtaining an additional $78,000,000 million in money it did not budget receiving through other means,” said U.S. Attorney Hochul.
Specifically, the Office collected $76,130,788 in criminal and civil actions. Criminal actions, which include fines and restitution, totaled $9,809,269.57, most of which was returned to victims of crime. The Office collected $66,321,518.58 in civil actions, which include proceedings involving health care fraud, government fraud, foreclosures and more.
In addition, the Office collected $12,115,640 in criminal and civil forfeitures. Forfeitures generally involve proceeds of crime, as well as property used to commit crime. Of that amount, a record amount of $3,768,043 was shared with state and local law enforcement partners who work with the U.S. Attorney’s Office and the Department of Justice.Since Mr. Hochul became U.S. Attorney, the Office has recovered and returned to victims, taxpayers and police agencies more than $322,000,000:
Fiscal Year 2010: $31,800,000; Fiscal Year 2011: $29,300,000; Fiscal Year 2012: $53,600,000; Fiscal Year 2013: $94,220,000; Fiscal Year 2014: $25,000,000.
In addition to recovering funds, in September 2015, Asset Forfeiture monies were used to demolish six forfeited drug houses on Buffalo’s East Side. This represented the first time such an undertaking was ever accomplished in the United States. A total of 98 dangerous firearms, along with ammunition, and 79 computers and media devices were also forfeited in FY 2015 as instrumentalities of criminal conduct, mostly related to child exploitation cases.
The following cases are an example of a successful forfeiture and affirmative civil enforcement cases concluded this past year in the Western District of New York:
United States v. Doran Feldman, et al.
Doran Feldman was an anesthesiologist for CGF Anesthesia Associates, P.C. in Buffalo. Co-defendant Debra Bulter, who worked in the Department of Anesthesiology for the University of Rochester, started DJA Solutions, LLC to provide administrative consulting services to CGF. In 2001, CGF contracted with the Department of Anesthesiology at the University of Rochester to provide anesthesiologists at medical facilities served by the Department of Anesthesiology. The 2001 Contract was renewed six times by addenda during the fiscal years 2004 through 2009. In September 2007, in the sixth addendum to the 2001 Contract, CGF agreed to provide the Department of Anesthesiology with five anesthesiologists and up to four additional anesthesiologists if requested by the Department of Anesthesiology. The defendant and Bulter fraudulently used the term in the addendum regarding the four additional anesthesiologists to fraudulently cause the Department of Anesthesiology to pay an annual fee to themselves under the terms of a purported option agreement. As a result of the offense, the Department of Anesthesiology at the University of Rochester sustained a loss of $1,460,000.00. Feldman was sentenced to 24 months in prison and ordered to pay $1,460,000.00 in restitution to the Department of Anesthesiology at the University of Rochester and forfeit a number of bank accounts.
United States v. Magness, et al.
A total of over $600,000 was forfeited from defendants Gregory Magness, Eldon Bott, Charles Wright and William Nehill in a case which involved the smuggling of magnesium into the United States from China that was used to produce counter measure flares for the U.S. Department of Defense. The defendants were also ordered to pay restitution totaling $6,246,605 to the U.S. Customs and Border Protection for the loss of duty to the United States. At the time of the importations, the U.S. had a 305.56% antidumping duty in place with respect to magnesium imported from China. In order to avoid the antidumping duty, the defendants falsely mislabeled the magnesium as a magnesium product only subject to a 5% duty, thereby defrauding the United States out of lawful duties. In addition to the over $600,000 forfeited, over $2,000,000 in restitution has already been collected from the defendants towards the restitution.
United States v. Cusimano
Eric Cusimano and other individuals participated in a scheme to commit securities fraud by registering internet websites to tout and promote publically traded stocks of companies with penny stock prices. Cusimano promoted the stocks on his websites and newsletters to boost the stock value and then sell their shares at the highest value. This is known as a “pump and dump” scheme. Cusimano, along with his wife, fled the United States for Panama upon learning of the investigation. The defendant was eventually arrested and brought back to the United States to face charges. Cusimano was convicted of conspiracy and tax evasion and sentenced to 46 months in prison and ordered to pay restitution to the Internal Revenue Service totaling $657,005.00 and a forfeiture money judgment in the sum of $1,218,783.00. In addition, the defendant forfeited an additional $336,522.86 that he had concealed in a number of bank accounts in Belize, various gold and silver jewelry items valued at $42,000.00 that he was found with in Panama, and a 30 foot pontoon boat that was forfeited early on in the investigation.
United States v. Aquilla
Frank Aquila served as the chief negotiator for the Buffalo Educational Support Team ("BEST"), a labor organization comprised of approximately nine hundred (900) City of Buffalo teacher's aides during 2008 collective bargaining negotiations with the City of Buffalo School District. Aquila refused to reach final agreement with the district on a collective bargaining agreement until and unless the district agreed to allow BEST to (1) select its own insurance broker; (2) make commission payments totaling $135,000 per year for four years to an insurance broker selected by BEST; and (3) agreed to make four payments to BEST of $65,000 each for costs and expenses associated with administering health insurance benefits for its members. The defendant failed to disclose to the district or BEST that he would share in commissions paid to the insurance broker selected by BEST, and in payments made to BEST to administer health insurance benefits for its members. Aquila was convicted and required to pay restitution in the amount of $332,500 to the City of Buffalo School District. The defendant also forfeited an additional $33,000 to the government.United States v. Fitzgerald
Charles Darwin Fitzgerald was convicted of possession with intent to distribute various synthetic controlled substances and synthetic controlled substance analogues at both his residence in Rochester and at one of his stores that he owned, the 420 Emporium located in Batavia, NY. The defendant was Fitzgerald was sentenced to 30 months in prison and ordered to forfeit $771,109 in U.S. currency that was seized during the execution of a search warrant at his residence.
United States v. Amedisys
Between 2008 and 2010, certain Amedisys offices improperly billed Medicare for ineligible patients and services. Amedisys allegedly billed Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase its Medicare payments. These billing violations were the alleged result of management pressure on nurses and therapists to provide care based on the financial benefits to Amedisys, rather than the needs of patients. The settlement was for $150 million dollars. The majority was paid up from and $35 million paid this year.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at:
http://www.justice.gov/usao/reading_room/foiamanuals.html.\
United States Attorney for Western District of Oklahoma Involved in Collecting over $45.2 Million in Fiscal Year 2015Read the Press Release
Oklahoma City, Oklahoma -- The United States Attorney’s Office for the Western District of Oklahoma was involved in collecting a total of $45,210,641.42 in civil and criminal cases and through asset forfeiture in Fiscal Year 2015, announced Sanford C. Coats, United States Attorney.
The Western District of Oklahoma collected $12,277,349.50 in criminal and civil actions handled by the district. Of this amount, $3,374,634.80 was collected in criminal actions and $8,902,714.70 was collected in civil actions. Additionally, the Western District also worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $1,158,621.92 in civil cases pursued jointly with these offices.
Finally, the U.S. Attorney’s Office also worked with partner agencies and divisions to collect an additional $31,774,670 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.
Attorney General Loretta E. Lynch announced today 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 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."
"My office was involved in recovering over $45.2 million in fiscal year 2015 – a 24% increase over the prior year," said U.S. Attorney Coats. "This total includes the recovery of tax dollars taken via fraud and restitution for victims of crime. As always, I am extremely proud of these tremendous results and of the exceptional work of the talented women and men in the U.S. Attorney’s Office, particularly in our Asset Recovery Unit."
Significant Cases in the Western District of Oklahoma
In October of 2014, Ocean Dental, P.C, agreed to pay $5,050,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims for dental services that were either never performed or billed at a higher rate than allowed.
In January of 2015, Computer Sciences Corporation agreed to pay $380,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false claims to the United States Air Force in connection with a contract to provide aircraft maintenance services on hydraulic actuators in Air Force aircraft at Vance Air Force Base, Oklahoma. Hydraulic actuators power various systems and functions in the aircraft such as the landing gear, vertical/horizontal stabilizers and flaps.
In April of 2015, Wes Yui Chew and his company, Icon Telecom, Inc., both of Edmond, Oklahoma, were sentenced for money laundering and making a false statement to the Federal Communications Commission in connection with the federal Lifeline Program that provides wireless service for qualifying low-income customers. In addition to being required to serve 48 months in federal prison, Chew and Icon agreed not to contest the forfeiture of more than $27 million seized during the investigation. Oscar Enrique Perez-Zumaeta, of Cancun, Mexico, who owned and managed PSPS Sales LLC, a California entity that recruited low-income individuals to apply for Lifeline service through Icon, also pled guilty to money laundering and was sentenced to serve 42 months in prison.
In August of 2015, East Central Family Health Center, located in Wetumka, Oklahoma, agreed to pay $825,000 to settle civil claims stemming from allegations that it violated the False Claims Act by submitting false Medicaid claims related to behavioral health services furnished to Medicaid patients of non-FQHC health care providers and who were not East Central patients.
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.
U.S. Attorney’s Office/District of New Jersey Collects $102.5 Million in Civil and Criminal Actions in Fiscal Year 2015Read the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman announced today that the District of New Jersey collected $102,476,557 in criminal and civil actions in Fiscal Year 2015. Of this amount, $64,631,183 was collected in criminal actions and $37,845,373 was collected in civil actions.
The District of New Jersey worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $9.27 billion in cases pursued jointly with these offices. Of this amount, $279,806 was collected in criminal actions and $9,265,900,389 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 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 93 U.S. Attorneys’ Offices and the main litigating divisions in that same period.
“Our office is responsible for keeping the public safe from all kinds of abuse, from violent crime to financial exploitation,” U.S. Attorney Fishman said. “As part of that mission, the public servants in our office continue collect far more in fines, penalties, asset forfeiture, restitution and settlements than our operating expenses. Using that money to make crime victims whole, invest in our law enforcement partners and help fund the general treasury is good economics and good for public safety.”
“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.”
For example, in the District of New Jersey in December 2014, OtisMed Corp. and its former chief executive officer admitted intentionally distributing knee replacement surgery cutting guides after their application for marketing clearance had been rejected by the Food and Drug Administration (FDA), and the corporation agreed to pay more than $80 million to resolve its related criminal and civil liability. The company was fined $34.4 million and ordered to pay $5.16 million in criminal forfeiture. In a separate civil settlement, OtisMed agreed to pay $40 million plus interest to resolve its civil liability.
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 New Jersey, working with partner agencies and divisions, collected $18,808,153 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.
As a result of criminal and civil asset forfeiture actions prosecuted by the U.S. Attorney’s Office in New Jersey in conjunction with partner agencies and divisions, $18,808,153 was deposited into the Department of Justice and Department of Treasury asset forfeiture funds in FY 2015. Monies from the assets forfeiture funds are returned to victims of financial crimes and used for various law enforcement purposes.
In FY 2015 the U.S. Attorney’s Office in New Jersey also obtained final orders of forfeiture for property that is being held pending sale, including 2,251 pieces of artwork valued at more than $15 million that the government’s complaint alleged was purchased by Philip Rivkin with the proceeds of a fraudulent scheme that sold fake credits for renewable energy. In June, Rivkin pleaded guilty in the Southern District of Texas to mail fraud and a Clean Air Act violation. The forfeited artwork includes works by some of the country’s most influential photographers, including Alfred Stieglitz and Edward Weston. The numerous Stieglitz prints include a waxed palladium print titled “Georgia O’Keeffe,” which Rivkin purchased for $675,000, and numerous prints of Marilyn Monroe.
U.S. Attorney’s Office for the Southern District of Florida Collects $146,171,229.47 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
United State Attorney Ferrer announced today that the Southern District of Florida collected $146,171,229.47 in criminal and civil actions in Fiscal Year 2015. Of this amount, $56,256,636 was collected in criminal actions and $89,914,593.47 was collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $217,282,980.63 in cases pursued jointly with these offices. Of this amount, $15,169.93 was collected in criminal actions and $217,267,811 was collected in civil actions.
Attorney General Loretta E. Lynch announced today 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 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 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 program.
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 the Southern District of Florida, working with partner agencies and divisions, collected $34,109,303 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney’s Office for the Northern District of Georgia Collects over $ 255 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
ATLANTA – U.S. Attorney John A. Horn announced today that the Northern District of Georgia collected $255,099,419 in criminal and civil actions in Fiscal Year 2015. Of this amount, $12,171,472 was collected in criminal actions and $242,927,947 was collected in civil actions.
Additionally, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $498,040,851 in cases pursued jointly with these offices. Of this amount, $12,708 was collected in criminal actions and $498,028,143 was collected in civil actions. The U.S. Attorney’s Office for the Northern District of Georgia ranks seventh among districts in the country for collections for which it was directly responsible and sixth in the country for overall collections-both direct and shared.
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. 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. 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.”
“As reflected in this year’s collection figures, financial enforcement is an integral part of our office’s efforts to combat fraud and other crimes from every angle,” said U. S. Attorney John Horn. “With the help of partner agencies, we continue to root out efforts to cheat the public and the government and to hold the perpetrators financially accountable.”
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. For example, over $212 million dollars was recovered by the U.S. Attorney’s Office in a settlement with First Tennessee Bank, N.A. to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s Federal Housing Administration that did not meet applicable requirements. In addition, civil debts were collected on behalf of other federal agencies, including the Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
One of the largest criminal collections for FY2015 was recovered in United States v. Rupert Morgan for theft of government funds from the Social Security Administration and Veterans Administration. Over $213,000 was recovered in the case through garnishment of the defendant’s investment accounts. The United States also recovered over $127,000 for DeKalb County and the World Congress Center in United States v. Cecil Clark, a case involving conspiracy to commit bribery.
Additionally, the Asset Forfeiture section of the U.S. Attorney’s Office, working with partner agencies and divisions, collected $16,979,004.00 in forfeited funds and restored to victims $1,362,679 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.