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Friday 16 October 2015
Kellogg Brown & Root Ordered to Pay for Accepting KickbacksRead the Press Release
BEAUMONT, Texas – A military contractor has been levied with a monetary judgment for accepting gifts and gratuities from sub-contractors, announced Eastern District of Texas U.S. Attorney John M. Bales today.
On Oct. 15, 2015, Kellogg Brown & Root, Inc. (KBR) was ordered to pay a final judgment of $108,342.10 to the United States by U.S. District Judge Marcia Crone.
According to court documents, KBR, a Delaware corporation with its principal place of business in Houston, violated provisions of the Anti-Kickback Act, 41 U.S.C. § 8706, when KBR employees improperly accepted gifts and gratuities, including expensive dinners, golf outings and event tickets from various sub-contractors while KBR was providing logistic services to the United States Army Operations Support Command contract known as LOGCAP III. LOGCAP III was awarded to KBR for the provision of logistical support to the Army in Iraq and Afghanistan. Final judgment was ordered following a four-day bench trial in June 2015.
The kickbacks first came to light during an investigation of fraudulent billings in another case. At that time it was revealed that from 2003 to 2005, several managers in the KBR traffic department had accepted illegal benefits from two subcontractors, Eagle Global Logistics EGL and Panalpina, Inc. Both subcontractors previously settled claims for kickback violations without admitting liability.
“The business of paying and accepting kickbacks to gain or keep government business is an age-old practice, but it is an obnoxious one and a violation of the trust that companies and individuals should be held to when doing business on behalf of the nation,” said U.S. Attorney Bales. “The Court’s verdict underscores that principal and we commend and celebrate its judgment. The United States Attorney’s office will remain vigilant to detect and to prosecute future violations – there will be zero tolerance for any kickbacks.”
The case was investigated by the Federal Bureau of Investigation and Defense Criminal Investigative Services. The case was prosecuted by Samuel Buffone, Kelley Hauser and Glenn Harris from the Department of Justice, Civil Division, and Michael Lockhart, Assistant U.S. Attorney for the Eastern District of Texas.
Katy Man Sentenced for Hate Crime Involving the Assault of Elderly African-American ManRead the Press Release
HOUSTON – A man from Katy has been ordered to federal prison to serve a 71-month sentence following his conviction of a federal hate crime related to the racially-motivated assault of an 81-year-old African-American man, announced U.S. Attorney Kenneth Magidson and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, along with Special Agent in Charge Perrye K. Turner of the FBI – Houston Division.
Conrad Alvin Barrett, 29, was charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. He pleaded guilty Jun. 30, 2015, admitting that on Nov. 24, 2013, he attacked the elderly African-American man because of the man’s race and color in what Barrett called a “knockout.”
Today, U.S. District Judge Gray Miller sentenced Barrett to 71 months in prison to be immediately followed by three years of supervised release. Barrett was further ordered to pay $2,000 in restitution.
“The sentencing of the defendant today represents our office’s continuing commitment to enforce senseless acts that violate our federal civil rights laws,” said Magidson. “Every citizen is entitled to this protection.”
“The defendant committed this shocking and violent assault against this vulnerable elderly man simply because he was African American,” said Gupta. “The Department of Justice will continue to work tirelessly to ensure that the rights of victims of violent crimes are vindicated.”
At the time of his plea, evidence revealed that Barrett recorded himself on his cell phone attacking the African-American man. In the recording, Barrett questions whether there would be national attention if he attacked a person of color. Barrett also claimed he would not hit “defenseless people” just moments before punching the elderly man in the face and with such force that the victim immediately fell to the ground. Barrett then laughed and said “knockout” as he ran to his vehicle and fled. The victim suffered two jaw fractures and was hospitalized for several days as a result of the attack.
The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act was passed on Oct. 22, 2009, and signed into law by President Barack Obama six days later. Shepard was a gay student who was tortured and murdered in 1998 near Laramie, Wyoming. Byrd was an African American man who was tied to a truck by two white supremacists, dragged behind it and decapitated in Jasper in 1998.
Barrett will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the FBI in cooperation with the Fulshear and Katy Police Departments as well as the Drug Enforcement Administration. Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo are prosecuting the case along Trial Attorneys Saeed Mody and Olimpia Michel of the Civil Rights Division in cooperation with District Attorney John Healey of Fort Bend County.
Justice Department Announces BBVA Suiza S.A. Reaches Resolution under Swiss Bank ProgramRead the Press Release
Bank Will Pay Penalty of More than $10 Million and Continue to Cooperate with Department
The Department of Justice announced today that BBVA Suiza S.A. has reached a resolution under the department’s Swiss Bank Program.
“Swiss banks such as BBVA Suiza S.A. are providing detailed information regarding their efforts to conceal U.S.-related accounts, and are turning over the names of individuals and entities that facilitated this criminal conduct,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “With each agreement, we are lifting the veil of secrecy shrouding those that assist accountholders in the evasion of their U.S. tax obligations.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
- Make a complete disclosure of their cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, BBVA Suiza agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
BBVA Suiza is a Swiss private bank with one office in Zurich, where it provided private banking and asset management services through private bankers. BBVA Suiza is wholly owned by Banco Bilbao Vizcaya Argentaria S.A. and is part of the BBVA Group. BBVA, the flagship of the BBVA Group, is a major global financial institution based in Spain. In 1984, a predecessor of BBVA entered the Swiss market by purchasing a Swiss bank that later became BBVA Suiza.
BBVA Suiza was aware that U.S. taxpayers had a legal duty to report their assets and income to the Internal Revenue Service (IRS) and to pay taxes on the basis of all their income, including income earned from accounts that BBVA Suiza maintained on their behalf. Despite being aware of this legal duty, BBVA Suiza maintained undeclared accounts for clients that it knew, or should have known, were U.S. taxpayers.
BBVA Suiza offered a variety of traditional Swiss banking services that assisted and enabled certain of its U.S. taxpayer clients to conceal their account assets and income, file false federal tax returns with the IRS and evade their U.S. tax obligations. These services included opening and maintaining undeclared accounts for U.S. taxpayers, offering the option to hold mail at BBVA Suiza and providing Swiss travel-cash cards, which enabled one U.S. client to access funds from undeclared accounts to spend in the United States.
BBVA Suiza permitted four groups of U.S. taxpayers to maintain six accounts, which held U.S. securities in the name of six offshore structures, specifically Panama corporations and British Virgin Islands companies. The U.S. taxpayer’s interest in each of these accounts was not reported to the IRS even though BBVA Suiza knew, or had reason to know, that such offshore-structure accounts were operated without strict adherence to corporate formalities and, in effect, were operated by the U.S. taxpayer beneficial owners as sham, conduit or nominee entities. BBVA Suiza relationship managers associated with these six accounts:
- met with or took instructions from the U.S. taxpayer beneficial owners of these offshore-structure accounts, instead of the directors or other authorized parties of the account;
- acted on instructions to transfer funds to a U.S. beneficial owner, including to accounts located within the United States or to a third-party designated by the U.S. beneficial owner; and/or
- effected transfers from certain of the offshore-structure accounts to pay for personal expenses incurred in connection with the use of credit cards issued in favor of the U.S. beneficial owners of the structures.
BBVA Suiza accepted certifications from the directors of these entities that falsely declared that the entity was the beneficial owner of the assets deposited in the accounts. In these instances, BBVA Suiza was in violation of the terms of its Qualified Intermediary Agreement with the IRS by failing to obtain IRS Forms W-9 from the U.S. beneficial owners of accounts that held U.S. securities, undertake IRS Form 1099 reporting or impose backup tax withholding when it had knew, or had reason to know, that an offshore structure was acting as a nominee for its U.S. beneficial owners.
BBVA Suiza also transferred the assets of U.S.-related accounts belonging to certain U.S. taxpayer clients in ways that concealed the U.S. nature of those accounts, such as through cash or check withdrawals, wire transfers and sham transfers to non-U.S. relatives or their nominal accountholders. In addition, BBVA Suiza removed some of its U.S. taxpayer clients’ names as joint-accountholders, leaving only non-U.S. persons as accountholders, or moved their assets into new accounts that were held in the names of non-U.S. persons, including non-U.S. relatives. BBVA Suiza thereafter treated such accounts as non-U.S.-related accounts, despite some relationship managers continuing to take and execute instructions given directly from the U.S. taxpayers formerly associated with the accounts, or the U.S. taxpayer clients retaining effective beneficial ownership of the accounts. BBVA Suiza followed instructions from U.S. beneficial owners, or their external asset managers, to transfer undeclared assets from U.S.-related accounts to locations throughout the world without knowing or first confirming whether the U.S. beneficial owners were compliant with their U.S. tax obligations.
Since Aug. 1, 2008, BBVA Suiza maintained 138 U.S.-related accounts with a maximum aggregate dollar value of more than $157 million. BBVA Suiza will pay a penalty of $10.390 million.
While U.S. accountholders at BBVA Suiza who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at BBVA Suiza must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s resolution with BBVA Suiza S.A. marks another step forward in DOJ’s Swiss Bank Program,” said Acting Deputy Commissioner International David Horton of the IRS Large Business & International Division (LB&I). “U.S. taxpayers who hid their money in this and other Swiss banks need to come forward to report their foreign accounts and pay taxes on the income they earned. Working with DOJ, we continue to uncover both those who hid offshore accounts and those who aided this illegal activity.”
“The multiplier effect that these agreements have on tax compliance cannot be underestimated,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “The magnitude of the data provided by each of these agreements leads us to more—more banks, more countries and more individuals. IRS-CI will continue to use all of the information we gather from these agreements to vigorously pursue individual U.S. taxpayers who illegally conceal assets offshore and to develop innovative strategies to combat international tax evasion worldwide.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and IRS LB&I for their substantial assistance. Ciraolo also thanked Paul G. Galindo, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Huntsville, Tuscaloosa Among Sites for DOJ-Funded Expansion of Intensive Probation Supervision ProgramRead the Press Release
HUNTSVILLE – The Department of Justice has awarded the Alabama Board of Pardons and Paroles $600,000 through a Bureau of Justice Assistance grant to expand the Alabama Certain Enforcement Supervision program to four additional intensive supervision pilot sites across Alabama.
Through the grant, ACES will expand to local Pardons and Paroles offices in Huntsville, Tuscaloosa, Dothan and Andalusia. Those cities, respectively, are in counties that collectively send more than 15 percent of the inmates annually admitted to the Department of Corrections. This funding follows $370,000 from the Department of Justice that established the state’s first four ACES pilot sites early this year.
Within ACES, individuals deemed moderate- to high-risk to reoffend will receive intensive supervision by local Pardons and Paroles officers and will be subject to swift, certain and fair sanctions if they violate the terms and conditions of release. Swift and certain sanction programs are an evidenced-based practice that has been validated to reduce recidivism and improve outcomes for individuals under supervision, while enhancing offenders’ perception that the supervision decisions are fair, consistently applied, and consequences are transparent. Such programs have been proven especially effective at reducing periods of incarceration for technical violations of supervision.
ACES is based upon Hawaii’s Opportunity Probation and Enforcement program. Within three months of its implementation, the HOPE program led to an 83 percent reduction in failed drug tests, 71 percent reduction in missed appointments with probation officers, and a 70 percent reduction in the revocation rate for participating probationers.
“ACES implements the best current evidence-based practices for supervision of ex-offenders," said U.S. Attorney Joyce White Vance. "Programs like ACES that follow the HOPE model have led to lower recidivism rates around the country by not waiting to take action until a probationer becomes a repeat offender. For Alabama to be successful in reducing recidivism and improving public safety, the highest risk ex-offenders within our communities must receive heightened supervision and services so as to improve their likelihood for successful reentry, and additional ACES sites are a step toward that goal,” she said.
"Pardons and Paroles is eager to expand the work it has been doing for the past year in Mobile, Greenville, Montgomery and Decatur, and which it hopes to eventually carry statewide," said Pardons and Paroles Executive Director Phil Bryant. "We hope to see measurable improvement of recidivism rates and decreases in technical violations. Probation and parole officers participating in the ACES pilot sites have gone above and beyond to supervise intensive caseloads in the manner prescribed by ACES, and we sincerely appreciate the cooperation from the judges and local officials who are making the pilots possible."
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Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE ALEXANDER LOPEZ-LOPEZ, age 34, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, LOPEZ-LOPEZ reentered the United States after having been previously deported on April 2, 2014. If convicted, LOPEZ-LOPEZ 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 an Indictment 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 United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hiawatha Man Pleads Guilty to Distributing Heroin and Fentanyl that Resulted in Convenience Store OverdoseRead the Press Release
A man who distributed a mixture of heroin and fentanyl to another individual who then overdosed in a convenience store pled guilty on October 15, 2015, in federal court in Cedar Rapids.
David Joseph Hudson, age 31, from Hiawatha, Iowa, was convicted of one count of distribution of heroin and fentanyl.
In a plea agreement, Hudson admitted that in January 2015, he distributed heroin to another individual (identified as R.R.) in a convenience store bathroom. R.R. prepared and injected the heroin in the bathroom, while Hudson was present. Hudson and R.R. left the bathroom and approached the store counter, where R.R. overdosed and collapsed. R.R. was in and out of consciousness until and after paramedics arrived. When R.R. would lose consciousness, his breathing would be slow and paramedics noticed snoring respirations (indicating some sort of airway obstruction). Paramedics eventually administered Narcan, an opiate antidote, after which time R.R. became more alert. Hudson admitted that after R.R. overdosed, he went through R.R.’s pockets, looking for the remaining drugs (which he did not find) and R.R.’s cell phone, which he took before he left the scene. Other people helping to revive R.R. found a small amount of drugs and packaging next to R.R. Laboratory testing of this substance determined it actually contained heroin and another powerful opiate, fentanyl.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hudson remains in custody of the United States Marshal pending sentencing. Hudson faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and lifetime of supervised release following any imprisonment.
The case was investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-78-LRR.
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Hartford Resident Pleads Guilty to Federal Marijuana Distribution and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GAUNTLETT SMITH, also known as “Clansman,” 40, a citizen of Jamaica last residing in Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to marijuana distribution and firearm offenses.
According to court documents and statements made in court, on February 19, 2015, SMITH was arrested on state drug charges after officers from the Hartford Police Department and special agents from Homeland Security Investigations and the Drug Enforcement Administration recovered approximately 15 pounds of marijuana, drug paraphernalia and a loaded 9mm semi-automatic pistol from an apartment maintained by SMITH at 89-91 Irving Street in Hartford. The firearm had been reported stolen in North Carolina.
SMITH pleaded guilty to one count of possession of marijuana with intent to distribute, which carries a maximum term of imprisonment of five years, and one count of possession of a firearm in furtherance of a drug trafficking offense, which carries a mandatory consecutive term of imprisonment of at least five years. A sentencing date has not been scheduled.
SMITH has been detained since his arrest.
This investigation has been conducted by the Hartford Police Department, Homeland Security Investigations and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Heather Cherry.
Haroon Aswat, Abu Hamza Co-Conspirator, Sentenced in Manhattan Federal Court to 20 Years in Prison for Terrorism OffensesRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for the National Security Division, announced that HAROON ASWAT was sentenced today by U.S. District Court Judge Katherine B. Forrest to 20 years in prison for terrorism offenses relating to ASWAT’s efforts to establish a terrorist training camp in the United States. ASWAT was extradited to the United States from the United Kingdom on October 21, 2014. ASWAT pled guilty on March 30, 2015, to one count of conspiring to provide material support to al Qaeda, and one count of providing material support to al Qaeda.
Manhattan U.S. Attorney Preet Bharara said: “Haroon Aswat, with his co-conspirators, sought to establish a terrorist training camp on American soil, and traveled to Afghanistan to receive training from al Qaeda. Arrested abroad in 2005, Aswat fought extradition for nearly 10 years, but faced with overwhelming evidence against him, pled guilty in Manhattan federal court to providing material support to al Qaeda shortly after arriving here. Aswat’s conviction and the sentence imposed today – along with the other recent terrorism prosecutions by this Office, including of Sulaiman Abu Ghayth, Abu Hamza, and Khaled al Fawwaz – serve as further proof that justice in international terrorism cases continues to be delivered in American civilian courts.”
Assistant Attorney General for National Security John P. Carlin said: “Haroon Aswat provided material support to al Qaeda and plotted to establish a terrorist training camp on American soil. Aswat was arrested more than 10 years ago, and his sentence is the result of the tireless and persistent efforts of law enforcement to hold accountable all those who wish to harm the United States, whether at home or abroad, no matter how long it takes.”
According to the allegations contained in the Indictment, statements made at related court proceedings including today’s sentencing, court fillings, and evidence presented at prior trials:
In late 1999, ASWAT, along with co-defendants Mustafa Kamel Mustafa, a/k/a “Abu Hamza” (“Abu Hamza”), Ouassama Kassir, and Earnest James Ujaama, attempted to establish a terrorist training camp in the United States to support al Qaeda, which has been designated by the United States Secretary of State as a foreign terrorist organization. ASWAT conspired with Abu Hamza, Kassir, and Ujaama to establish the terrorist training camp on a rural parcel of property located in Bly, Oregon. The purpose of the Bly, Oregon, camp was for Muslims to receive various types of training – including military-style jihad training – in preparation to fight jihad in Afghanistan. As used by the conspirators in this case, the term “jihad” meant defending Islam against purported enemies through violence and armed aggression, including, if necessary, by using murder to rid Muslim holy lands of non-believers in Islam.
In a letter faxed from Ujaama, in the United States, to Abu Hamza, in the United Kingdom, the property in Bly was described as a place that “looks just like Afghanistan,” and the letter noted that the men at Bly were “stock-piling weapons and ammunition.” In late 1999, after transmission of the faxed letter, Abu Hamza directed ASWAT and Kassir, both of whom resided in London, England, and attended Abu Hamza’s mosque there, to travel to Oregon to assist in establishing the camp. On November 26, 1999, ASWAT and Kassir arrived in New York, and then traveled to Bly.
ASWAT and Kassir traveled to Bly for the purpose of training men to fight jihad. Kassir told witnesses that he supported Usama bin Laden and al Qaeda, and that he had previously received jihad training in Pakistan. Kassir also possessed a compact disc that contained instructions on how to make bombs and poisons. After leaving Bly, ASWAT and Kassir traveled to Seattle, Washington, where they resided at a mosque for approximately two months. While in Seattle, Kassir, in ASWAT’s presence, provided men from the mosque with additional terrorist training lessons – including instructions on different types of weapons, how to construct a homemade silencer for a firearm, how to assemble and disassemble an AK-47, and how an AK-47 could be altered to be fully automatic and to launch a grenade. On another occasion, with ASWAT sitting by his side, Kassir announced to the men in Seattle that he had come to the United States for martyrdom and to destroy, and he informed his audience that some of them could die or get hurt.
ASWAT subsequently linked up with al Qaeda, and received training at al Qaeda’s al Faruq training camp in Afghanistan, which was al Qaeda’s primary training camp and where recruits were trained in topics that included military tactics, weapons, and explosives. ASWAT remained in Afghanistan after the terrorist attacks of September 11, 2001, and after the United States invaded Afghanistan. A ledger recovered in September 2002 from an al Qaeda safe house in Karachi, Pakistan, listed a number of individuals associated with al Qaeda, including ASWAT. The al Qaeda safe house was used by Khalid Sheikh Mohammed, al Qaeda’s chief operational planner and the alleged planner of the terrorist attacks of September 11, 2001.
At the time of ASWAT’s arrest in Zambia in 2005, he had with him a computer that contained, among other things: (1) a book on survival skills in the event of a nuclear, biological, or chemical weapon detonation; (2) the “Anarchist Cookbook,” which contained instructions on how to make bombs and hack into computers; (3) a hand-to-hand combat instruction manual, which noted that its purpose was to “teach you how you can kill another person with your own two hands;” (4) the “Close Combat Textbook;” and (5) the “Big Book of Mischief,” which also contained detailed and extensive instructions on how to make explosives.
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ASWAT, 41, was convicted of one count of conspiracy to provide material support to al Qaeda, and one count of providing material support to al Qaeda. In addition to the term of imprisonment, Judge Forrest imposed a $200 special assessment. Judge Forrest also ordered that ASWAT be removed from the United States to the United Kingdom following the completion of his sentence.
Abu Hamza and Kassir were previously convicted for their roles in attempting to establish a terrorist training camp in the United States. On May 12, 2009, after a four-week jury trial in the Southern District of New York, Kassir was found guilty of charges relating to his efforts to establish the terrorist training camp in Bly, and his operation of several terrorist websites. On September 15, 2009, U.S. District Judge John F. Keenan sentenced Kassir to life in prison.
On May 19, 2014, after a four-week jury trial in the Southern District of New York, Abu Hamza was found guilty of charges relating to his role in the conspiracy to establish the terrorist training camp in Bly, as well as his role in a hostage-taking in Yemen in 1998 that resulted in four deaths, and his support of violent jihad in Afghanistan in 2000 and 2001. On January 9, 2015, Judge Forrest sentenced Abu Hamza to life in prison.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation’s Manhattan-based Joint Terrorism Task Force – which principally consists of agents of the FBI and detectives of the New York City Police Department, and includes officers of numerous federal, state, and local law enforcement agencies – the United States Marshals Service, and the Metropolitan Police Department of London, England. Mr. Bharara also thanked the U.S. Department of Justice’s National Security Division and Office of International Affairs for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys John P. Cronan, Ian McGinley, Shane T. Stansbury, and Edward Y. Kim are in charge of the prosecution.
Gillian A. Gallardo Ordered to Pay $19,098.50 in Military Housing Allowance Fraud CaseRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant GILLIAN A. GALLARDO, age 30, from Yigo, was sentenced on October 15, 2015, before Chief Judge Frances Tydingco-Gatewood, to three years of probation and was ordered to pay restitution in the amount of $19,098.50.
Defendant GALLARDO, an active duty Staff Sergeant in the U.S. Air Force at the time of the offense, knowingly submitted false Overseas Housing Allowance (OHA) documentation to the Defense Finance and Accounting Service that falsely claimed that she paid $2,450 in rent every month for her supposed occupancy of a certain residence in Yigo. In reality, GALLARDO lived rent-free at an entirely different address in Dededo and pocketed the OHA funds. She pled guilty on June 3, 2015 to Submitting a Fraudulent Claim against the United States.
This case was investigated by the Air Force Office of Special Investigations. The case was prosecuted by Special Assistant U.S. Attorneys Kurt E. Grunawalt and Brian D. Ralston.
Frederick County Man Indicted for Sexually Exploiting a ToddlerRead the Press Release
Baltimore, Maryland – A federal grand jury indicted William H. Steinhaus IV, age 33, of Brunswick, Maryland, yesterday for sexual exploitation of a child and distributing child pornography.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Frederick County Sheriff Charles A. “Chuck” Jenkins; Frederick County State’s Attorney J. Charles Smith; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to the six count indictment, between December 8 and 9, 2014, Steinhaus had a number of sexually explicit conversations on Kik, an instant messaging application, with other Kik users regarding their shared sexual interest in prepubescent children. Steinhaus took pictures using his iPhone or iPad of a two year old girl engaged in sexually explicit conduct and distributed them to approximately 25 other Kik users.
The indictment alleges that during those two days, Steinhaus and another Kik user exchanged approximately 290 messages. They discussed how Steinhaus could best sexually abuse the toddler. Steinhaus sent the user images of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where tw[sic] assault will happen.”
Also on December 8, 2014, Steinhaus and a second Kik user allegedly exchanged approximately 293 messages. Steinhaus sent pictures of the child and Steinhaus engaged in sexually explicit conduct; and pictures of a couch, stating “That’s where the assault is going to happen.”
According to the indictment, between December 8 and 9, 2014, Steinhaus and a third Kik user exchanged approximately 419 messages. Steinhaus sent approximately 30 pictures he had taken of the toddler, several of which contained images of the child and Steinhaus engaged in sexually explicit conduct.
Steinhaus is presently in state custody following his arrest on December 9, 2014 on related charges filed in Frederick County Circuit.
Steinhaus faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in prison on each of two counts for sexual exploitation of a child; and a mandatory minimum sentence of five years in prison and a maximum of 20 years in prison on each of four counts for distributing child pornography. An initial appearance is expected to be scheduled for October 30, 2015 at 11:00 a.m. in U.S. District Court in Baltimore.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Frederick County Sheriff’s Office, Frederick County State’s Attorney’s Office and Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Judson T. Mihok, who are prosecuting the case.
Four Individuals Indicted for Stealing 125 Firearms from the Puerto Rico Police Shooting Range at Isla De CabraRead the Press Release
SAN JUAN, PR – On October 14, a federal grand jury returned a five-count indictment charging four individuals with participating in a conspiracy to interfere with commerce by threats or violence, possession of a firearm in furtherance of a crime of violence, stealing firearms, and prohibited person in possession of a firearm, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is in charge of the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI).
The object of the conspiracy was to commit a robbery at the Police of Puerto Rico (POPR) Shooting Range. The robbery took place on October 26, 2010. The co-conspirators subdued the duty police officers and stole the POPR’s firearms stored in the vault to subsequently illegally sell them for significant pecuniary gain and profit. The co-conspirators are: José Padilla-Galarza, aka “Joey;” Gilberto Ramos-Quiñonez, aka “Bolillo;” Ramón Santiago-Ortega, aka “Pucho;” and Guill Reabing-Padilla, aka “Gil”. Padilla-Galarza was a police officer approximately 20 years ago. All defendants are convicted felons in possession of firearms.
According to the indictment the defendants used to visit the Isla de Cabra Shooting Range, in order to become familiar with the personnel, their shifts, and the layout of the facility. The defendants used a white Ford Crown Victoria or Mercury Grand Marquis attached with decals of the POPR to give it the appearance of an official POPR patrol car. Members of the conspiracy dressed as POPR police officers, some in regular police uniforms and others in tactical uniforms.
The 125 firearms stolen, including the two pistols taken from duty officers were: 40 AR-15 rifles, 24 shotguns, nine 9mm carbines, one MP3 rifle, and 49 pistols. This is the biggest firearms robbery in the history of Puerto Rico.
“The potential harm that can result from the movement of illegal firearms through Puerto Rico cannot be overstated. The unlawful trafficking in firearms is a serious crime that intensifies the violence that is plaguing so many communities around us. This investigation is a testament to the collective resolve of federal law enforcement to stem the flow of illegal firearms,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“I would like to recognize the commitment and hard work of the investigators and prosecutors who brought this case to a conclusion,” said ATF Miami Field Division Special Agent in Charge Carlos A. Canino. “We will never stop investigating these types of heinous crimes. Not for five days not for five years. ATF Puerto Rico is committed to the fight against violent crime and firearms trafficking.”
The case is being prosecuted by Assistant United States Attorney Max Pérez-Bouret.
If found guilty, the defendants are facing terms of imprisonment of up to 20 years for the Hobbs and a minimum of seven years up to life for Possession of a firearm in furtherance of a crime of violence (robbery) with brandishing enhancement. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Former Worcester Day Care Provider Sentenced for Lying in Connection with Child Exploitation InvestigationRead the Press Release
BOSTON – A Worcester woman was sentenced today in U.S. District Court in Worcester for making false statements to federal agents investigating federal child exploitation offenses.
Donna Belanger, 50, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year of probation and a fine of $1,000. In May 2015, Belanger pleaded guilty to making materially false, fictitious, or fraudulent statements or representations to federal agents.
On Feb. 7, 2014, Belanger was interviewed by federal agents in connection with the arrest of her son, Brian Belanger, on federal charges that he had, through online communications, enticed a minor to produce child pornography. Specifically, during the course of the execution of a federal search warrant which uncovered evidence of her son's crimes, federal agents interviewed Donna Belanger about her knowledge of her son’s prior sexual assaults against children and whether her son had been allowed unsupervised contact with the children attending her in-home day care center.
In response to questions concerning prior allegations of sexual assault, Donna Belanger informed agents that the in-home day care business had closed in June 2012 after allegations arose that her son had sexually assaulted a child attending the day care. Donna Belanger failed to disclose to agents, however, that Brian had sexually assaulted a six-year-old neighbor in 2005. Further investigation would reveal that Donna was well aware of that incident, that she and the mother of the six-year-old child had spoken about the incident, and that the two had agreed that the matter would not be reported to police if Donna secured mental health counselling for her son.
In response to questioning about whether Brian had ever had unsupervised contact with the children in the day care before it closed in 2012, Donna Belanger adamantly denied that her son had ever had such access to the children. Donna Belanger ultimately admitted in a third interview that the children would sometimes be allowed to play video games with Brian in his bedroom without supervision.
In interviews of former day care employees and acquaintances, federal agents developed additional evidence that Brian had been allowed to have unsupervised contact with the children attending the day care until its closure in 2012.
Donna’s son, Brian Belanger, recently pleaded guilty to five counts of producing child pornography in U.S. District Court for the Northern District of New York.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Gary J. Gemme, made the announcement today. The case was prosecuted by Mark Grady of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former TSA Officer Indicted for Allegedly Allowing Marijuana-Laden Baggage to Pass through Security Screening at LAXRead the Press Release
LOS ANGELES – A former officer with the Transportation Security Administration was indicted today by a federal grand jury on narcotics and bribery charges for allegedly accepting payment to allow checked bags filled with marijuana to be cleared through screening checkpoints at Los Angeles International Airport.
Deondre Smith, 33, of South Los Angeles, was named in a two-count indictment that charges him with conspiracy to distribute marijuana and bribery of a public official.
The indictment alleges that Smith accepted payments of at least $500 to ensure that baggage containing marijuana would be allowed to pass through security checkpoints at LAX so that the bags would be loaded on to commercial aircraft. “Knowing that the luggage contained marijuana, defendant Smith would temporarily take possession of the luggage from other co-conspirators and either personally escort the luggage through LAX baggage screening checkpoints, or deliver the luggage to make sure the baggage containing marijuana passed security,” according to the indictment.
“I expect all federal employees to meet the highest standards of ethical behavior,” said United States Attorney Eileen M. Decker. “Any acceptance of bribes to influence official conduct will not be tolerated. It is particularly serious when the employee knowingly assisted the commission of a serious criminal offense.”
The bags containing marijuana were transported to Charlotte Douglas International Airport in North Carolina, where the drugs were distributed, according to the indictment, which alleges nine specific incidents in 2009 and 2010 where Smith allowed drug-filled bags to pass through security.
Other members of the conspiracy have been convicted of federal drug trafficking charges in North Carolina.
The indictment alleges that the conspiracy in which Smith participated moved at least 50 kilograms of marijuana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Smith would face a statutory maximum penalty of five years for the drug trafficking conspiracy. The bribery count carries a statutory maximum penalty of 15 years in prison.
Smith will be summonsed to appear for an arraigned in United States District Court in the coming weeks.
This case is the result of an investigation by the Department of Homeland Security, Office of Inspector General and the Federal Bureau of Investigation.
Former State Parole Officer Pleads Guilty to BriberyRead the Press Release
Jackson, Miss - Andra Smith, 44, of Canton, pled guilty on October 16, 2015, before Senior U.S. District Judge Tom S. Lee, to a Criminal Information charging him with bribery, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway. Smith is a former Probation and Parole Officer with the Mississippi Department of Corrections who worked out of Madison County.
During the plea hearing, Smith admitted that he solicited bribes from a parolee he was supervising from March, 2015 through June, 2015. He took the money in exchange for allowing the parolee to leave Mississippi to find employment.
Smith will be sentenced by Senior United States District Judge Tom S. Lee on January 7, 2016 at 9:30 am. He faces a maximum penalty of 10 years in federal prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the Mississippi Department of Corrections. The case is being prosecuted by Assistant United States Attorneys Scott Gilbert and Mary Helen Wall.
Former Puyallup Businessman Sentenced to Three Years in Prison for Hash Oil Production and Weapons PossessionRead the Press Release
A former Puyallup businessman who operated various unpermitted marijuana businesses including a potentially explosive hash oil manufacturing lab, was sentenced today in U.S. District Court in Tacoma to three years in prison, announced U.S. Attorney Annette L. Hayes. ANDRE A. LEMPRIERE, 51, was indicted in February 2015, and pleaded guilty to Endangering Human Life While Manufacturing Controlled Substances and being an Alien in Possession of Firearms in June 2015. LEMPRIERE will likely be deported following his prison term as he is a citizen of the United Kingdom who was illegally in the U.S. At the sentencing hearing U.S. District Judge Ronald B. Leighton said the hash oil extraction operation was extraordinarily dangerous.
“The hash oil extraction ‘lab’ this defendant constructed was like a ticking time bomb waiting to go off,” said U.S. Attorney Annette L. Hayes. “The defendant had no state license or permit and his activities put his employees and those in surrounding businesses and residences at risk of serious bodily harm and property damage.”
LEMPRIERE came to the attention of law enforcement when a citizen expressed concern about drug manufacturing activity at a Puyallup warehouse. The warehouse was close to other businesses and residences at 2404 Inter Avenue. After some preliminary investigation of the warehouse and an unpermitted and unlicensed marijuana dispensary owned by LEMPRIERE and his wife, law enforcement served search warrants on the couple’s home and businesses in late October 2014. The warehouse contained a marijuana grow and a hash oil extraction operation that was at high risk of leaking butane gas and was potentially explosive. Law enforcement had to disassemble the hash oil lab for community safety. At LEMPRIERE’s home officers found 13 firearms. As an alien residing in the U.S., LEMPRIERE is prohibited from possessing firearms.
Since July 2014 more than a dozen people have been charged federally in connection with illegal hash oil labs in Western Washington. In one Bellevue explosion, an apartment complex was destroyed and multiple people were injured – one fatally.
The case was investigated by the Puyallup Police Department, the Pierce County Sheriff’s Office and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Vince Lombardi and Todd Greenberg.
Former Property Development Company CEO Sentenced in $1.2 Million Bank FraudRead the Press Release
TULSA, Okla.–The second executive of a property development company was sentenced on Thursday for conspiring to defraud $1,176,490.60 from IBC Bank, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Robert Alan Blaksley, of Owasso, the former Chief Executive Officer of Group Blaksley, LLC, was sentenced to serve 14 months in prison. United States District Court Chief Judge Gregory K. Frizzell also ordered Blaksley to pay $1,176,490.60. Blaksley pleaded guilty on May 8, 2015, and was charged on August 13, 2014.
According to court documents, from June 2007 to July 2008, Blaksley and co-defendant, Bruce Carlton Wright, of Norman, conspired to submit fraudulent invoices to the IBC Bank for work that was not performed on a Bentonville, Arkansas property. Following an 8-day jury trial, on May 28, 2015, Wright was convicted of conspiracy and 11-counts of bank fraud. On September 8, 2015, Wright was sentenced to 33 months for his role in the bank fraud scheme.
The Federal Bureau of Investigation handled the case; and Assistant U.S. Attorneys Joel-Lyn A. McCormick and Catherine Depew prosecuted the case.
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Former L.A. Sheriff’s Deputy Indicted by Federal Grand Jury on Charges Related to Cover-Up of Attack of Visitor to Men’s Central JailRead the Press Release
LOS ANGELES – In a case stemming from the beating of a handcuffed man at Men’s Central Jail in downtown Los Angeles, a sixth member of the Los Angeles Sheriff’s Department was indicted today on federal charges for allegedly participating in the cover-up of the violent incident.
Byron Dredd, 33, who is no longer with the LASD, was named in a three-count indictment that charges him with conspiracy to violate the victim’s civil rights and two counts of making false reports.
Five other former deputies have been convicted in relation to the 2011 attack and are pending sentencing (see: http://go.usa.gov/3Jypx).
Dredd, along with the other defendants previously convicted, was assigned to the Visiting Center at Men’s Central Jail. On February 26, 2011, the victim and his girlfriend went to the jail to visit the victim’s incarcerated brother. Both visitors had cell phones in their possession, which is prohibited under jail rules. When the phones were discovered, the victim was handcuffed and brought into an employee break room, where he was beaten and sprayed with a burning agent similar to pepper spray. The victim was later transferred to the hospital by paramedics. As a result of false statements made by the previously convicted deputies and allegedly made by Dredd, the victim was charged with several crimes, including resisting an officer and battery.
The indictment against Dredd alleges that he wrote an incident report in which he falsely claimed that the victim attacked one of the deputies and then attempted to escape.
“The Department of Justice will continue to hold accountable individuals who abuse their positions as law enforcement officers by committing crimes or by trying to cover them up,” said United States Attorney Eileen M. Decker. “While this former deputy sheriff allegedly participated in a scheme to violate the civil rights of a man who had to be hospitalized after he was beaten by other deputies, his actions should not reflect on the good work performed by the overwhelming majority of Los Angeles deputy sheriffs.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If convicted of the charges in the indictment, Dredd would face a statutory maximum penalty of 35 years in federal prison – up to 10 years for the civil rights conspiracy, up to 20 years for the falsification of records, and up to five years for making false statements to the FBI.
Dredd will be summonsed to appear for an arraigned in United States District Court in the coming weeks.
This case is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 15 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Former Honolulu Police Department Officer Sentenced for Violating the Civil Rights of Two MenRead the Press Release
District Judge J. Michael Seabright today sentenced former Honolulu Police Officer Vincent Morre, 38, to 30 months in prison for violating the civil rights of two Honolulu men. On May 19, 2015, Morre pleaded guilty to two counts of depriving the two men’s right to be free from the use of unreasonable force by a law enforcement officer on Sept. 5, 2014.
According to information presented to the court, Morre, then a 10 year veteran of the Honolulu Police Department, was searching for a fugitive when he entered a game room on Hopaka Street. Once in the game room, Morre, in an unprovoked attack, kicked J.T. in the head. Morre then continued to search the game room for the fugitive. On his way out, Morre reapproached J.T. but first struck F.F. (who was seated next to J.T) in the face twice and then kicked his chest. Morre then continued the assault on J.T. by kicking J.T. off his chair. As Morre was leaving the game room, he threw a metal stool which hit J.T. in the head, requiring three stitches. Five days later, Morre filed a false police report omitting that he had assaulted J.T. or F.F.
“When this defendant violated the trust of the people he was sworn to serve, the Department of Justice stood ready to enforce the law and protect the civil rights of all Americans,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.
“This case represents important steps in vindicating the civil rights of the victims of unreasonable use of force by a law enforcement officer,” said U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
“The FBI would like to thank the Honolulu Police Department for its cooperation, assistance, and transparency during this investigation,” said Special Agent in Charge Paul Delacourt of the FBI’s Honolulu Field Office.
Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii and Trial Attorney Angie Cha of the Civil Rights Division prosecuted the case.
Former Honolulu Police Department Officer Sentenced for Violating the Civil Rights of Two MenRead the Press Release
WASHINGTON – District Judge J. Michael Seabright today sentenced former Honolulu Police Officer Vincent Morre, 38, to 30 months in prison for violating the civil rights of two Honolulu men. On May 19, 2015, Morre pleaded guilty to two counts of depriving the two men’s right to be free from the use of unreasonable force by a law enforcement officer on Sept. 5, 2014.
According to information presented to the court, Morre, then a 10 year veteran of the Honolulu Police Department, was searching for a fugitive when he entered a game room on Hopaka Street. Once in the game room, Morre, in an unprovoked attack, kicked J.T. in the head. Morre then continued to search the game room for the fugitive. On his way out, Morre reapproached J.T. but first struck F.F. (who was seated next to J.T) in the face twice and then kicked his chest. Morre then continued the assault on J.T. by kicking J.T. off his chair. As Morre was leaving the game room, he threw a metal stool which hit J.T. in the head, requiring three stitches. Five days later, Morre filed a false police report omitting that he had assaulted J.T. or F.F.
“When this defendant violated the trust of the people he was sworn to serve, the Department of Justice stood ready to enforce the law and protect the civil rights of all Americans,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.
“This case represents important steps in vindicating the civil rights of the victims of unreasonable use of force by a law enforcement officer,” said U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
“The FBI would like to thank the Honolulu Police Department for its cooperation, assistance, and transparency during this investigation,” said Special Agent in Charge Paul Delacourt of the FBI’s Honolulu Field Office.
Assistant U.S. Attorney Darren W.K. Ching of the District of Hawaii and Trial Attorney Angie Cha of the Civil Rights Division prosecuted the case.
Former Copley man sentenced to four years in prison for stealing $1.5 million from healthcare plansRead the Press Release
A former Copley resident was sentenced to nearly four years in prison for stealing more than $1.5 million from healthcare plans he administered and using the money to pay for bonuses, operating expenses, luxury car leases and a country club membership, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert Hartenstein, 62, was sentenced to 46 months in prison and ordered to pay more than $1.5 million in restitution. He previously was found guilty of seven counts of theft from a health benefit program.
“This defendant was entrusted with millions of dollars to pay for hospital stays and medical tests, but instead betrayed that trust and used his clients’ money for fancy cars, lavish entertainment and his own business operations,” Dettelbach said.
Hartenstein in 1994 started Professional Benefits Association (PBA), a company that was a third-party administrator of healthcare plan benefits. It was located in Cuyahoga Falls and had a branch office in Austintown. Hartenstein was the majority owner, chief executive officer and chairman and secretary of its board of directors.
PBA had several clients that were companies which sponsored self-funded health care benefit plans for their employees. These companies hired PBA and paid it a fee to administer their benefit plans. Hartenstein knew PBA was required by law and by contract to establish individual segregated bank accounts for each of the client companies to hold, in trust, the funds the companies sent to PBA to pay claims from medical service providers, according to court documents.
From at least 2000 through 2010, Hartenstein caused, authorized and directed expenditures from PBA’s operating account. Such expenditures included salaries and periodic bonuses to Hartenstein and PBA employees, payments to lease luxury cars and a country club membership Hartenstein used and an entertainment account Hartenstein used, according to court documents.
A PBA employee identified in the indictment only as L.W. began regularly depositing plan funds from the companies into the PBA operating account instead of depositing those funds into the companies’ respective segregated trust accounts, as required by law and PBA’s contracts with the companies. This improper comingling of funds was done with Hartenstein’s knowledge, according to court documents.
Hartenstein learned in 2008 or earlier that PBA did not have sufficient funds to pay the medical service provide claims for which the companies had already provided funds in trust to PBA. When he learned of the shortfalls, Hartenstein directed PBA employees to withhold payments from service providers for increasing periods of time. Employees made up excuses for the delays at Hartenstein’s direction, according to court documents.
Hartenstein did not inform the companies of the shortfalls. Instead, he directed PBA employees to divert funds to pay for other outstanding claims. He misled PBA clients about the status of payments and why claims had not been paid. At Hartenstein’s direction, PBA employees made up false excuses for lack of payment to companies or falsely claimed payment had been made, according to court documents.
According to court documents, the health benefit plans that Hartenstein defrauded were for the following organizations: Guyan International, Inc. dba the Permco ($501,380); Pritchard Mining Company, Inc. ($435,837); Hocking Athens Perry Community Action ($384,574); O’Bleness Memorial Hospital ($91,877); Precision Gear ($54,612); Lordstown Schools ($32,835) and the Joseph Badger Local Schools ($29,357).
This case is being prosecuted by Assistant U.S. Attorney Rebecca Lutzko following an investigation by the United States Department of Labor, Employee Benefits Security Administration, Cincinnati regional office and the Office of Inspector General
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Felon Charged with Illegally Possessing Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of Possession of a Firearm and Ammunition by a Convicted Felon, United States Attorney David J. Hickton announced today.
The one-count indictment, returned in Oct. 13, named Larry Christopher Roberts, 47, of Verona, Pennsylvania, as the sole defendant.
According to the indictment, on or about June 4, 2015, Roberts possessed a firearm and ammunition as a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years imprisonment and up to life, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
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 crimes. The Federal Bureau of Investigation and the Allegheny County Sheriff’s Office 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.
Federal Jury Finds Mexican National Guilty of Marijuana Trafficking and Firearms Charges in New MexicoRead the Press Release
ALBUQUERQUE – Earlier today a federal jury sitting in Las Cruces, N.M., found Juan Antonio Alvarez-Ramirez, 36, a resident alien from Mexico residing in Artesia, N.M., guilty on marijuana trafficking and firearms charges after a three-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Task Force Commander James McCormick of the Pecos Valley Drug Task Force (PVDTF) and Chief Donald Raley of the Artesia Police Department.
Alvarez-Ramirez and his co-defendant, Ronnie Joe Lopez, 31, of Odessa, Texas, were arrested in Jan. 2014, on an indictment charging them with participating in a marijuana trafficking conspiracy, possession of marijuana with intent to distribute, and carrying and using a firearm in relation to a drug trafficking crime. Lopez was also charged with receipt of a firearm by a person under indictment. All offenses charged in the indictment took place on Sept. 28, 2013, in Eddy County, N.M.
Lopez pled guilty to the indictment on April 4, 2014, and admitted that on Sept. 28, 2013, he and Alvarez-Ramirez were stopped by law enforcement officers in Artesia and found to be in possession of ten pounds of marijuana which Lopez and Alvarez-Ramirez intended to distribute to others. Lopez further admitted that he was in possession of a gun shortly before being stopped by the officers; at the time Lopez was under indictment in Texas. Lopez was sentenced on Oct. 29, 2014, to 68 months in prison followed by three years of supervised release.
Alvarez-Ramirez elected to proceed to trial on the three counts in the indictment in which he was charged. The trial began on Oct. 14, 2015, and concluded this afternoon when the jury returned a verdict finding him guilty on three counts of the indictment.
The evidence at trial established that on Sept. 28, 2013, acting on a tip from the Artesia Police Department, a PVDTF agent executed a traffic stop on Lopez based on information that there was an outstanding warrant for his arrest. At the time of the vehicle stop, Lopez, Alvarez-Ramirez and two other men were in the vehicle. After observing a shotgun in the backseat of the vehicle the agents obtained a search warrant. During the search of the vehicle, agents found a 9 mm pistol and ten pounds of marijuana in addition to the shotgun that was in the backseat. The agents also found three handguns on the ground outside of the vehicle. During a post-arrest statement, Alvarez-Ramirez admitted throwing one of the handguns underneath the vehicle when he saw the police and dropped another handgun in the area where he had been laying on the ground pursuant to law enforcement commands for him to get down.
Alvarez-Ramirez has been in federal custody since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum penalty of five years in prison on the marijuana trafficking charges. He also faces a mandatory minimum of five years in prison on the firearms charge which must be served consecutive to the sentence imposed on the marijuana charges.
This case was investigated by the Las Cruces offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DEA, the Pecos Valley Drug Task Force and the Artesia Police Department. Assistant U.S. Attorneys Maria Y. Armijo and Randy M. Castellano are prosecuting the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal Investigation into Former Local Business ClosedRead the Press Release
PORTLAND, Ore. - The United States Attorney’s Office announced it has closed its investigation of Safety Net, a former representative payee for Social Security beneficiaries, without the filing of criminal charges.
In March of 2014, federal agents executed a search warrant on the Safety Net offices in Portland pursuant to a search warrant that established probable cause that conserved funds, held by Safety Net on behalf of payees, were significantly less than reflected in Safety Net’s records. The investigation, conducted by the Social Security Administration Office of the Inspector General, Office of Investigations and Office of Audit, revealed accounting and bookkeeping errors, but found no evidence of theft or embezzlement from Safety Net’s clients during the time period under investigation.
Dundalk Cocaine Dealer Sentenced to 10 Years in Prison for Gun and Drug ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Jasper McWilliams, age 48, of Dundalk, Maryland today to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine and crack cocaine, and for possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on March 19, 2015, law enforcement officers executed a search warrant at McWilliams’ residence. Officers recovered a total of 533.37 grams of powder cocaine and 69.78 grams of crack cocaine from the home, packaged in a number of plastic bags. In addition, officers recovered a loaded Taurus 9mm handgun from a locked safe underneath McWilliams’ bed. The locked safe also contained $15,160 in drug proceeds. Elsewhere in McWilliams’ bedroom, the officers recovered drug paraphernalia, including a digital scale, a metal can with a false bottom, a metal grinder, and an at-home marijuana drug test kit.
United States Attorney Rod J. Rosenstein praised the Baltimore County Police Department for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.
Defendant Sentenced to 80 Months in Prison for Robbing Three Silver Spring BanksRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Morris Thweatt, age 47, of Silver Spring, Maryland today to 80 months in prison followed by three years of supervised release for three bank robberies. Judge Grimm also entered an order that Thweatt forfeit and pay restitution of $22,773, the total amount that he stole.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, Thweatt robbed three banks in Silver Spring, wearing various disguises, and handing the bank tellers notes that stated that he had a bomb.
On June 10, 2014, Thweatt told a teller at Capital One Bank located on Tech Road that he had an explosive device, and demanded money. The “device” was in fact a canister with a radio wire. Thweatt stole $4,500 and fled.
On July 2, 2014, Thweatt told a teller at Capital One Bank located on University Boulevard that he was going to light a device he was carrying on fire. The “device” was in fact a plastic bag with an electrical wire wrapped in aluminum foil attached to the bag. Thweatt stole $8,075 and fled.
On July 22, 2014, Thweatt threatened a teller at Bank of America located on Colesville Road with a fake improvised explosive device, stating that he was going to blow the place up. Thweatt stole $10,198 and fled.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who prosecuted the case.
DOJ Employee Indicted for Traveling to Engage in Sex with a MinorRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted James Cicala, age 54, of Columbia, Maryland for interstate travel with intent to engage in a sexual act with a minor. The indictment was returned on October 8, 2015, and unsealed today upon the arrest of Cicala
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; and Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General.
According to the indictment, on August 15, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to engage in a sexual act with a 15 year old girl. According to a search warrant affidavit filed in connection with the investigation, on July 21, 2015, an undercover detective with the Worcester County Sheriff’s Office who was investigating child solicitation on the internet responded to an ad entitled “Daddy’s Little Girl.” The person posting the ad stated that they were interested in meeting someone for a “Daddy/Daughter Relationship.” The undercover detective identified himself as a 15 year old female, and the poster identified himself as a male in his late 40’s.
The poster and the undercover detective exchanged messages for several weeks, eventually agreeing to meet to engage in sexually explicit conduct. During their conversations, Cicala refers to himself as “Daddy.” According to the affidavit, on August 15, 2015, law enforcement attempted to identify the owner of the telephone number used to text messages to the undercover detective and learned that the number belonged to the Department of Justice. Many of the conversations Cicala allegedly had with the undercover officer occurred using Cicala’s DOJ-issued phone or work computer, sometimes during work hours.
Cicala was arrested on August 15, 2015, as he arrived at the location where he was to meet the 15 year old girl in order to engage in sexually explicit conduct. Cicala had traveled from his beach house in Delaware to the meeting place in Berlin, Maryland. On August 17, 2015, Cicala was placed on administrative leave by the Department of Justice, where he worked in IT, and all electronic devices assigned to him were secured.
Cicala faces a maximum of 30 years in prison followed by up to lifetime of supervised release for traveling interstate to have sex with a minor. An initial appearance is scheduled for today at 3:15 p.m. before U.S. Magistrate Judge Timothy J. Sullivan in U.S. District Court in Baltimore.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Worcester County Sheriff’s Office and DOJ- Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Convicted Felon from Tarrant County Sentenced to 300 Months in Federal Prison on Methamphetamine Distribution Conspiracy ConvictionRead the Press Release
FORT WORTH, Texas — A convicted felon from Tarrant County who pleaded guilty this summer to his role in a methamphetamine distribution conspiracy was sentenced yesterday in federal court in Fort Worth, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Jerry Curry, 47, of Haltom City, Texas, was sentenced by U.S. District Judge Reed C. O’Connor to 300 months (25 years) in federal prison. Curry pleaded guilty in July 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. He has been in federal custody since his arrest in June 2015 on an indictment that charged him and 27 others with various offenses stemming from their roles in a methamphetamine distribution conspiracy. Most of the defendants have pleaded guilty and are awaiting sentencing.
According to documents filed in the case, since approximately 2014, Curry and other co-defendants received ounce and multi-ounce quantities of methamphetamine on consignment from a supplier co-defendant. In turn, Curry and the others distributed methamphetamine to various customers in the Fort Worth area, returning to this supplier for additional methamphetamine.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
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Chicago Podiatrist and Two Executives Indicted on Health Care Fraud Charges and Assets FrozenRead the Press Release
St. Louis, MO – A Chicago podiatrist, his wife and the CEO of his health care company were indicted on charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided.
According to the indictment, DR. YEV GRAY is the owner and president of Aggeus Healthcare, headquartered in Chicago, Illinois, which provides podiatry services to residents of long-term care facilities. Dr. Gray’s wife, NATALIE GRAY, is an attorney and the director of corporate and legal affairs for Aggeus Healthcare. She also supervised the billing, finance and accounts receivable departments. JAMES N. SAYADZAD is the Chief Executive Officer of Aggeus Healthcare and a minority owner and manager of Aggeus Global. As of September 2015, both companies were operating in at least 16 states. In Missouri, Aggeus contracted with podiatrists to provide services in eleven facilities, with seven of the facilities located in the cities of Bourbon, Hannibal, Maryland Heights and Poplar Bluff, Missouri.
According to the indictment, the defendants used an electronic medical record (EMR) system, which automatically inserted. into patient records. diseases and symptoms that the patients did not have. This was done to demonstrate to Medicare that the patients needed the services for which Aggeus Healthcare later billed Medicare. The defendants also pressured Aggeus podiatrists to provide unneeded services, such as Doppler studies, the incision and drainage of abscesses and the removal of calluses. Some of the podiatrists complied, provided the unneeded services and signed the false treatment notes. Others refused. Despite repeated complaints from patients, nursing homes and some of their podiatrists, the defendants continued to create false patient records and to bill for medically unnecessary services. From 2009 to September 2015, Medicare paid Aggeus Healthcare millions of dollars based on the false reimbursement claims submitted by the defendants.
In a separate civil action, Case No. 4:15CV1580-RLW, the Court entered a Temporary Restraining Order against the Defendants that restrains their assets.
Yev Gray, Natalie Gray and James Sayadzad, all of Chicago, IL, were indicted by a federal grand jury on one felony count of conspiracy to commit healthcare fraud and four felony counts of making false statements relating to health care matters.
If convicted, each count carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Department of Health & Human Services-Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorneys Dorothy McMurtry and Gwen Carroll are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Cherokee, N.C. Woman Sentenced to 15 Years in Prison in Connection with Robbery on Indian ReservationRead the Press Release
ASHEVILLE, N.C. – Ashlyn Nichole Carothers, 23, of Cherokee, N.C. was sentenced on Thursday, October 15, 2015, to 180 months in prison for her involvement in a robbery on the Indian reservation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Carothers to serve three years of supervised release and to pay $30,166.45 as restitution.
U.S. Attorney Rose is joined by Interim Chief James Dike Sneed of the Cherokee Indian Police Department in making this announcement.
According to court records and yesterday’s sentencing hearing, on or about September 30, 2012, in Jackson County, George Lee Nobles robbed and killed a victim outside a motel located on the Eastern Band of Cherokee Indians Reservation. Carothers acted as Nobles’ get-away driver. According to filed court documents, Carothers admitted knowing Nobles had stolen the victims’ purse and that later she and Nobles burned the victim’s purse but kept the $5,000 cash they had found in the victim’s wallet. Carothers pleaded guilty in March 2014 to one count of robbery by force and violence within Indian Country and aiding and abetting. Nobles is currently facing charges for first degree murder and related offenses in state court.
Carothers has been in custody since October 2013. She will be transferred to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The Cherokee Police Department handled the investigation assisted by the North Carolina State Bureau of Investigation. Assistant U.S. Attorney Don Gast and Special Assistant U.S. Attorney Jason Smith prosecuted the case.
Brooklyn Man Sentenced to 10 Years for Sexually Abusing A MinorRead the Press Release
Earlier today, Andrew Goodman was sentenced by Judge Margo K. Brodie in United States District Court in Brooklyn, New York, to 10 years imprisonment, to be followed by 10 years of supervised release, for soliciting and enticing a minor to engage in sexual conduct. Based on his conviction, Goodman also will be required to register as a sex offender. The victim was between 12 and 15 years of age during the time of the abuse.
The sentence was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Goodman enticed his young victim with gifts and plied the victim with alcohol. We will take every measure to protect our nation’s most vulnerable individuals from predators such as he,” stated Acting United States Attorney Currie. Mr. Currie extended his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, the agency responsible for leading the government’s investigation, and thanked the Kings County District Attorney’s Office for its assistance in this case.
Goodman began his sexual abuse of the victim in 2006. Over the next several years, Goodman sexually assaulted the victim several times a week. Goodman was previously convicted in New York State court of 48 counts of sexually abusing the same minor, as well as a second victim, and served two years in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Tyler J. Smith and Ameet Kabrawala are in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to protect children by combatting the sexual exploitation and abuse of minors. Led by the United States Attorneys’ Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The Defendant:
ANDREW GOODMAN
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 12-CR-614 (MKB)
Bolingbrook Man Sentenced to 47 Years in Federal Prison for Running a Sex Trafficking RingRead the Press Release
CHICAGO ― A Bolingbrook man has been sentenced to 47 years in federal prison for running a brutal sex trafficking ring that forced four victims into prostitution.
McKENZIE CARSON used violence and coercion to force his victims into working as prostitutes in Chicago and nearby suburbs. Carson frequently provided the victims with heroin, and he controlled how much of the drug each victim was allowed to use. One of the victims was 17 years old at the time Carson ran his pimping operation in 2010.
A federal jury in 2013 convicted Carson, 43, on four counts of sex trafficking. All four victims testified about their ordeals during the trial.
U.S. District Judge Elaine E. Bucklo sentenced Carson on Thursday to 47 years in prison for each of the four counts. The sentences are to run concurrently.
“The defendant’s conduct here was particularly brutal and sadistic, and has caused irreparable harm to his victims,” Assistant U.S. Attorney Jennie Levin argued in the government’s sentencing memorandum. “He instilled into them fear, intimidation and humiliation.”
Evidence at trial showed that Carson recruited and groomed his victims. In addition to supplying his victims with heroin, Carson used threats and physical beatings to assert control over them. When the victims broke his rules or disobeyed him, Carson often raped them. He also required his victims to commit commercial sex acts, and to give him the money they earned.
Carson, who worked off and on as a taxi driver in Chicago and the suburbs, has been in federal custody without bond since his arrest in 2012.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation. The investigation was conducted by a multi-agency task force that was led by the FBI and included the Cook County Sheriff’s Office, the Cook County State’s Attorney’s Office, the Kendall County State’s Attorney’s Office, the Will County Sheriff’s Office, and the police departments from Alsip, Bolingbrook, Channahon, Downers Grove, Joliet, Naperville, Oswego, Romeoville, Shorewood, and Westmont.
The government was represented by Ms. Levin and Assistant U.S. Attorney Bethany Biesenthal.
Baton Rouge Resident Indicted for Conducting Lengthy Fraudulent Scheme Throughout 2012 and 2013Read the Press Release
BATON ROUGE, LA - United States Attorney Walt Green of the Middle District of Louisiana announced that a federal grand jury has indicted RAPHEW T. REED, JR., age 30, of Ruston, Louisiana, with making false statements to a credit union, in violation of Title 18, United States Code, Section 1014, false representation of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B), three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, engaging in an unlawful money transaction, in violation of Title 18, United States Code, Section 1957, and making false statement, in violation of Title 18, United States Code, Section 1001. If convicted, REED faces significant incarceration, fines, restitution, and supervised release following imprisonment. The Indictment also includes forfeiture allegations.
The Indictment alleges that REED engaged in fraudulent conduct for more than a year in 2012 and 2013. First, in or about May of 2012, REED knowingly made false statements to a federally-insured credit union in an attempt to obtain a loan. REED provided the credit union with a false Social Security number and documents that misrepresented his identity and income. Then, in another attempt to obtain money under false pretenses and representations, from late 2012 through April 2013, REED executed a scheme to defraud another company, which, on or about November 27, 2012, wired $125,000 to REED. REED fraudulently diverted the funds to his friends, family members, others to whom he owed money, and to another one of his own bank accounts. When the victim repeatedly asked REED to return the funds, as he had promised he would do, REED falsely represented to the victim that he was in the process of returning the company’s funds. In connection with this scheme, REED is alleged to have engaged in an unlawful monetary transaction, causing $18,950 of the proceeds from the fraudulent scheme to be wired from a bank account that he controlled in Texas to a second account located in the Middle District of Louisiana. Finally, according to the Indictment, in December of 2013, when REED was interviewed about the above-described conduct by the Federal Bureau of Investigation, he knowingly made a number of false statements.
U.S. Attorney Green stated: “Dishonest businesspeople undermine the integrity of our financial communities and erode the principles critical to a hospitable and fair business environment. Combatting financial crimes is thus a priority to my office, and we will continue to work diligently and aggressively with the FBI, SSA-OIG, and our other partners to combat such wrongdoing.”
This matter is being investigated by the Baton Rouge office of the FBI, which has received valuable assistance from the Social Security Administration’s Office of Inspector General. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a deputy chief within the office’s Criminal Division.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baltimore Robber Sentenced to Nine Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Darryl Norris, age 37, of Baltimore, today to nine years in prison followed by three years of supervised release for robbing a video game store. Judge Russell also entered an order that Norris pay restitution of $13,481.15.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Interim Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on September 24, 2014, Norris and two co-conspirators entered the Game Stop on Liberty Road in Baltimore, pointing fake guns which appeared to be real weapons at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.
Norris admitted to committing six other robberies with co-conspirators from August 26 to September 27, 2014, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; Cappy Cleaners on Belair Road in Baltimore; The Summit at Owings Mills, in Owings Mills, Maryland; Royal Farms on Wilkens Avenue and another Royal Farms on Keswick Road, both in Baltimore; and 7-Eleven on Pleasant Plains Road in Towson, Maryland.
The total loss from the seven robberies was $13,481.15.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Aurora Gang Member Sentenced to 20 Years in Federal Prison for Gun and Drug CrimesRead the Press Release
DENVER – Michael Eugene Simpson, age 35, of Aurora, Colorado, was sentenced late last week to 240 months (20 years) in federal prison for gun and drug charges U.S. Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ken Croke announced. The defendant was also ordered to spend 3 years on supervised release after serving his prison sentence. He was remanded into custody at the end of the sentencing hearing.
Simpson was first charged by Criminal Complaint on June 20, 2014. He was indicted by a federal grand jury in Denver on June 30, 2014. On January 1, 2015, Simpson was charged in a superseding indictment. He was convicted on April 9, 2015 following a three day jury trial of 13 of the 14 counts charged in the superseding indictment. The jury deliberated for approximately 5 hours before delivering their verdicts. Simpson was convicted of possession of cocaine with the intent to distribute, possession of a firearm by a convicted felon, and possession of an unregistered destructive device and possession of ammunition by a convicted felon. The defendant was sentenced on October 9, 2015.
According to court documents, as well as information presented to the jury during trial, on June 19, 2014, at approximately 3:00 a.m., law enforcement special agents and officers executed a search warrant in Aurora, Colorado. The address was the residence of Michael Simpson. Aurora Police Department and ATF had previously received information that Simpson, a convicted felon, was in possession of numerous firearms and was participating in drug activity. That morning, upon approaching the residence, law enforcement officials found Simpson in a vehicle in the driveway. He did not comply with commands and instead turned the vehicle on and tried to flee. He attempted to back out the driveway but could not because a law enforcement vehicle was parked directly behind him. He proceeded to back up into the vehicle several times until law enforcement officers broke the driver side window and tased him.
Agents and officers then conducted a lawful search of the residence, law enforcement officers found: (1) a loaded .40 Smith and Wesson firearm in a vehicle outside the house; (2) a loaded, Cobray 12 gauge Streetsweeper shotgun in the garage; (3) a loaded, .380 Bersa handgun in a safe from a downstairs closet; and, (4) 19.9 grams of cocaine in a plastic bag on the kitchen counter. In the same safe where the .380 Bersa handgun was found, law enforcement officers found over 100 rounds of ammunition, a digital scale, a beaker, and plastic bags used to distribute cocaine. Law enforcement officers found ammunition in two kitchen cabinets, on top of the refrigerator, and on a desk downstairs. A razor blade, digital scale, and plastic bags were also found in a kitchen cabinet.
Simpson, a member of the 83 Gangster Crips, has previous drug-related felony convictions. His felony convictions prohibit him from legally possessing firearms or ammunition.
“A small number of criminals account for a large part of the crime problem, and this case is a perfect example,” said U.S. Attorney John Walsh. “Because of close team work between with Aurora Police Department and ATF that produced the key evidence, our office was able to prosecute this dangerous gang member successfully, obtain a severe sentence from the court and make the streets of Aurora safer.”
“Simpson is a dangerous felon with little regard for the safety of those around him. Bringing this criminal to justice was a team effort, and we appreciate the great work done by our partners in the Aurora Police Department and the Colorado Attorney’s Office during this case,” Agent Croke said. “The ATF is proud to play a role in making Colorado’s streets safer.”
"We are fortunate to have positive working relationships with our law enforcement partners at the local, state and federal level. The joint efforts in this case led to a successful arrest and conviction," said Chief Metz.
This case was investigated by the ATF and the Aurora Police Department.
The defendant was prosecuted by Assistant U.S. Attorneys Jason St. Julien and Robert Brown.
"P.A.C.E.—Police and Community Engagement: Conference to be hosted in Aiken in November to bring together law enforcement and the community"Read the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles, announced today that the United States Attorney’s Office for the District of South Carolina is proud to join the Aiken Department of Public Safety and the South Carolina Law Enforcement Officers’ Association (SCLEOA) as a host for the P.A.C.E. (Police and Community Engagement) Conference in Aiken on November 5-6, 2015. The goal of this conference, which includes a plenary session with both law enforcement and members of the community, is to provide both the community and law enforcement with an understanding of their roles in 21st Century policing.
Topics will include verbal communications skills to help de-escalate volatile situations, strengthening community partnerships, the power of partnerships, and successful joint efforts between the community and law enforcement to keep communities in South Carolina safe, to include the Aiken Safe Communities program.
Launched in early 2013, the Aiken Safe Communities Initiative is a unified, proactive community approach to engage, educate, and encourage recurring offenders to change their behavior and make healthy life choices. The initiative also bands together local, state, and federal law enforcement to expedite the investigation and prosecution of individuals who reoffend in lieu of accepting opportunities and assistance offered by the community during public notification meetings held at Aiken City Hall several times a year.
From 2012-2013, the City of Aiken experienced an 86% reduction in murders. Earlier this year, the South Carolina Community Development Association presented the City of Aiken with its 2014 Award of Excellence, recognizing community development efforts that have significantly improved the quality of life in the community.
All participants must register on-line with SCLEOA at www.scleoa.org/lecc.
P.A.C.E. Training announcement attached below:
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Thursday 15 October 2015
Wyoming Man Sentenced for Involuntary Manslaughter and Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on October 13, 2015, Jared Michael Romero, 22, was sentenced in federal court to 10 months of home confinement and 2 years of Supervised Release on one count of involuntary manslaughter, and one count of assault resulting in serious bodily injury, in connection with an incident involving Romero causing the death of his 19 year old passenger, Clay Walters, in a drunk driving crash. Romero was also ordered to pay $145,489.86 in restitution for medical expenses incurred by a second victim who survived the crash. As part of his sentence, Romero will participate in victim impact panels and other anti-drunk driving forums, speaking publicly about the consequences of drunk driving. Romero will also be required to obtain an alcohol evaluation, follow through with all treatment recommendations, participate in cognitive and behavioral treatment, submit to searches of his person and residence upon reasonable cause and follow all rules of his supervising U.S. Probation officer. Romero was also ordered to pay a $200 special assessment in addition to other terms and conditions.
This case was investigated by the Bureau of Indian Affairs, the Fremont County Sheriff’s Department and the Wyoming Highway Patrol.
Woman Sentenced to 5 Years in Prison for Transporting Proceeds of Cocaine TraffickingRead the Press Release
PITTSBURGH - A California woman has been sentenced in federal court to five years in prison on her conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Misha Cannon, 49, of San Bernardino, Calif.
According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Misha Cannon was intercepted over the wire conspiring with others, including her brother, Lionel Cannon, to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier. During the conspiracy, Misha Cannon was responsible for transporting proceeds of the cocaine trafficking from the Western District of Pennsylvania to California. In August 2014, Misha Cannon also helped Lionel Cannon obtain a new supply of cocaine and conducted a deal for the purchase of one kilogram of cocaine, which was later seized by law enforcement.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Cannon.
Washington D.C. Man Indicted for Transporting Teenage Boy to Engage in Sexual ActivityRead the Press Release
BOSTON – Jason Michael Wolf, 30, of Washington, D.C., was indicted today in U.S. District Court in Boston on one count of transporting a minor in interstate commerce to engage in illegal sexual activity.
According to court documents, on Aug. 17, 2015, the Massachusetts Bay Transportation Authority (MBTA) Police received information that an adult man and a minor were acting inappropriately at the South Station Bus Terminal. Law enforcement arrived on scene and interviewed the two individuals who were identified as Wolf and a 14-year-old boy from Maryland. The two admitted that they had met on a mobile dating app in July, had traveled to Boston from Maryland, and had engaged in sexual activity in Maryland, Washington D.C., New York, and Boston.
Wolf was arrested by the Boston Police in August and charged with aggravated statutory rape of a child under state law. He is currently being held by local authorities.
The charge of transportation of a minor in interstate commerce to engage in illegal sexual activity provides for a minimum mandatory term of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; James V. Buthorn, Acting Inspector in Charge of the U.S. Postal Inspection Service; Boston Police Commissioner William Evans; and Acting Chief Kenneth Green of the MBTA Transit Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
United States and the State of Alaska Opt Not to Recover Additional Damages from Exxon Mobil Under Reopener Provision of 1991 Exxon Valdez Oil Spill SettlementRead the Press Release
The Department of Justice and the Alaska Department of Law announced that they are bringing to a close the federal and state judicial actions against ExxonMobil Corporation and its corporate predecessors regarding the 1989 Exxon Valdez oil spill. The Prince William Sound, Alaska, harlequin ducks and sea otters thought in 2006 to have been impacted by lingering subsurface oil have recovered to pre-spill population levels. Scientists have concluded that exposure to the subsurface oil is no longer biologically significant to these species. Accordingly, the governments have decided to withdraw their 2006 request to Exxon to fund bio-restoration of subsurface lingering oil patches.
The March 1989 grounding of the tanker vessel Exxon Valdez on Bligh Reef in Prince William Sound spilled nearly 11 million gallons of North Slope crude oil that ultimately contaminated some 1,500 miles of Alaska’s coastline. It affected three national parks, four national wildlife refuges, a national forest, five state parks, four state critical habitat areas, a state game sanctuary and killed enormous numbers of birds, marine mammals and fish and disrupted the lives and livelihoods of Alaskans who rely on those resources.
On Oct. 8, 1991, U.S. District Court Judge Russel Holland approved both a plea agreement resolving criminal charges against Exxon Corporation and Exxon Shipping (Exxon) under various federal environmental laws and a settlement agreement between Exxon and the United States and the state of Alaska resolving all civil claims between them pertaining to the spill. Under the plea agreement, the company paid $125 million for a criminal fine and restitution. The civil settlement required Exxon to pay the governments $900 million over 10 years to reimburse past costs and fund the restoration of injured natural resources.
Since 1991, the Exxon Valdez Oil Spill Trustee Council, composed of representatives from both governments, has used civil settlement monies for significant restoration efforts in the areas affected by the spill, including: projects designed to restore the environment, manage human uses and reduce marine pollution; habitat protection and acquisition; and monitoring and research. These restoration efforts have successfully accelerated and documented the recovery of natural resources that were injured by the spill. Further, due to income earned on the settlement funds, the Trustee Council currently has more than $200 million at its disposal for future restoration work.
One unresolved aspect of the 1991 settlement has been a provision in the consent decree entitled “Reopener for Unknown Injury” that allowed the governments to seek up to an additional $100 million if they later found substantial losses or declines in populations, habitats or species that could not have been anticipated at the time of the settlement. This provision allowed the governments to obtain additional funding from Exxon to restore injuries shown to be both unforeseeable and “substantial” if several conditions were met. Those conditions include presenting a detailed plan to Exxon by Sept. 1, 2006, for how to restore the substantial loss or decline of natural resources.
The governments took preliminary actions in 2006 to preserve a potential Reopener claim, by presenting to Exxon a plan to address patches of oil from the Exxon Valdez spill that recent surveys had found in the subsurface sediments and among rocks of a number of beaches in the spill area. Although this “lingering oil” occurred on only a small fraction of the originally oiled shoreline, the governments viewed it as a substantial loss of habitat because it appeared to be impeding the recovery of two species, harlequin ducks and sea otters, that were injured by the Exxon Valdez spill and forage in the types of beach sediments where the oil persists, thereby exposing them to the lingering oil.
When Exxon declined to participate, the governments undertook the first stages of the habitat restoration plan, which consisted of a series of scientific studies to improve understanding of why the oil had not yet degraded and to design specific measures to make it non-toxic. These studies were funded by the Trustee Council from the original settlement monies and have produced significant public information about the distribution and characteristics of the lingering oil, as well as pilot tests to improve techniques for accelerating the bio-degradation of subsurface oil in various types of beaches. These studies will inform restoration and resource management decisions both in Prince William Sound and in similar areas across the United States and the world. During this period, however, continued wildlife monitoring showed that the harlequin ducks and sea otters that had appeared vulnerable to the lingering oil have recovered to pre-spill population levels and are no longer exposed to oil more than populations outside the spill area. Based on this information, the governments and the trustee agencies – the Departments of Agriculture Forest Service and the Interior, National Oceanic and Atmospheric Administration (NOAA), Alaska Department of Environmental Conservation, Alaska Department of Fish and Game and Alaska Department of Law – have concluded that the legal requirements for pursuing a Reopener claim are no longer met.
“Our decision today highlights the trustees’ commitment to excellent science and the success of their restoration efforts since the spill,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The Reopener in our settlement with Exxon was unique and set a high bar for recovery of additional damages. Together with our partners in the Alaska Department of Law, we preserved a potential Reopener claim and investigated it to its logical end. Our action today allows us to celebrate all that has been accomplished in Prince William Sound since the spill.”
“Although we will not be pursuing Exxon for additional damages, our decision today does not close the book on lingering oil,” said Attorney General Craig Richards for Alaska. “We are fortunate to have alternatives for dealing with this issue that can be undertaken without the constraints of the Reopener language. We will be engaging Alaskans through the Trustee Council process to advise us on what steps they would like to see us take. ”
“I expect the Trustee Council will evaluate whether active restoration should be performed at any lingering oil sites using the same standards and process by which it considers other potential restoration projects,” said Trustee Council member and Senior Advisor Michael Johnson for Alaska Affairs to the Secretary of the Interior.
The Council has directed restoration efforts since the 1991 settlement and has established transparent procedures, with opportunities for public proposals and comment, for spending the restoration funds paid by Exxon.
NOAA scientists, who were instrumental in developing the information that led to the 2006 habitat restoration plan, will continue to monitor lingering oil sites and provide information to the Trustee Council for use in determining whether additional restoration measures will benefit the affected coastline.
“Naturally, the persistence of oil is of concern to us,” said Lois Schiffer of the NOAA General Counsel. “Although the lingering oil is largely in subsurface soil or rocks, it does have the potential, if disturbed, to expose intertidal resources to oil, and its presence can be disturbing to people who come across it. The real question is whether it is better to intervene or to leave it to break down over time.”
U.S. Attorney’s Event:Training Law Enforcement Officers to Serve Victims of Hate Crimes Against Members of the LGBTQ CommunityRead the Press Release
KANSAS CITY, KAN. – U.S. Attorney Barry Grissom will speak during an all-day hate crimes symposium Nov. 4 in Kansas City, Kan. The event is free and open to the public, but registration is required.
“The public – and law enforcement – need to be more aware of the problem of hate crimes generally, and against the LGBTQ community in particular,” Grissom said. “We need more and stronger partnerships with local communities to prevent hate crimes and to enhance prosecutions against offenders when they occur.”
Featured speakers will include Dennis and Judy Shepard, the parents of Matthew Shepard, founders of the Matthew Shepard Foundation. Their son was beaten, tortured and left to die near Laramie, Wyoming, in October 1998. The case helped to raise public awareness of hate crimes and led Congress to pass the Matthew Shepard and James Byrd, Jr. Hate Crime Prevention Act.
Other speakers will include Dave O’Malley, who investigated Shepard’s death, Kristi L. Donahue of the FBI, Kristy Parker of the Justice Department’s Civil Rights Division, Amanda Spee, FBI Special Agent, and Crystal Middlestadt an OVC Consultant /Resource Development Director, Grassroots Institute for Fundraising Training.
The event is set for 8:30 a.m. to 3:30 p.m. Nov. 4, 2015, at the Reardon Civic Center at the Hilton Garden Inn, 520 North Minnesota, Kansas City, Kan. Registration is required. A registration form is available online at http://www.continuinged.ku.edu/register/n/event_details.php?pn=LE160244 or email [email protected] for a form.
U.S. Attorney announces $3.5 million settlement with Westwood Mental Health LLCRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport community mental health center, Westwood Mental Health LLC, and its parent company, MedSouth LLC, have agreed to pay $3.5 million to settle False Claims Act and Anti-Kickback Statute allegations.
The settlement results from Westwood’s self-disclosure to the Office of Inspector General of the Department of Health and Human Services (HHS OIG) through the OIG’s Provider Self-Disclosure Protocol. According to the self-disclosure and the investigation that followed, from 2006 through 2009, the United States alleged that Westwood falsified patient records, billed for services not medically necessary, billed for services that were not rendered, provided bribes to Medicare beneficiaries who did not qualify for partial hospitalization services and provided bribes and/or kickbacks to employees to further or conceal the fraud.
“Reaching this settlement through the self-disclosure process demonstrates what the health care community and law enforcement can achieve by working together,” Finley stated. “When Westwood discovered the problems, it brought the matter to the attention of the HHS Office of Inspector General, and in doing so avoided the costs associated with a protracted investigation and the risk of potential fines under the False Claims Act.”
Healthcare fraud poses a serious risk to the integrity of our health care system, and the U.S. Attorney’s Office remains committed to aggressively pursuing healthcare providers who seek public funds through unlawful means. The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs.
This case was handled by the Department of Health and Human Services Office of Inspector General and the U.S. Attorney’s Office for the Western District of Louisiana. Assistant U.S. Attorney Karen J. King represented the United States.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Two sentenced for oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two individuals were sentenced in federal court today for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Tyree Dupree Williams, 21, of Detroit, Michigan, was sentenced today to 51 months in prison for selling oxycodone in September 2014 near the campus of West Virginia University in Monongalia County, West Virginia. He pled guilty in June 2015 to one count of “Aiding and Abetting Distribution of Oxycodone within 1,000 Feet of a Protected Location.” The Mon Metro Drug and Violent Crime Task Force investigated.
Paul Dennison, 34, of Wallace, West Virginia, was sentenced today to 37 months in prison after he was discovered in possession of oxycodone and multiple firearms in January 2015 in Harrison County, West Virginia. In light of his previous felony conviction in Harrison County for “Delivery of a Controlled Substance – Marijuana,” he is prohibited from possessing firearms. He pled guilty in July 2015 to one count of “Possession with Intent to Distribute Oxycodone – Aiding and Abetting” and one count of “Felon in Possession of a Firearm.” He was sentenced today to 37 months on each count. The sentences will run concurrently for a total of 37 months in prison. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Zelda Wesley prosecuted Williams and Assistant U.S. Attorney Shawn Adkins and former Assistant U.S. Attorney Shawn Morgan prosecuted Dennison on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Two convicted of heroin, cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals were convicted of heroin and cocaine trafficking this week in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Elliot Iwon Reed, 31, of Baltimore, Maryland, sold heroin and cocaine in Berkeley County, West Virginia. He pled guilty to one count of “Conspiracy to Distribute Cocaine Base and Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. The Eastern Panhandle Drug and Violent Crime Task Force investigated.
Bruce Morton Vaudrien, Jr., 46, of Kearneysville, West Virginia, participated in a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into West Virginia, Virginia, and Pennsylvania. He pled guilty to:
• One count of “Possession with Intent to Distribute Heroin” for which he faces up to 20 years in prison and a fine of up to $1,000,000,
• One count of “Use of a Telephone to Facilitate the Distribution of Heroin” for which he faces up to four years in prison and a fine of up to $500,000, and
• One count of “Interstate Travel in Aid of Racketeering” for which he faces up to five years in prison and a fine of up to $500,000.The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted Vaudrien and Camilletti, along with Special Assistant U.S. Attorney Stephanie Taylor, prosecuted Reed on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Two convicted in Pittsburgh, PA to WV and OH heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Joseph P. McKee, 25, of Wheeling, and Jeff R. Andlinger, 34, of Benwood, West Virginia were convicted of heroin trafficking this week in federal court, United States Attorney William J. Ihlenfeld, II, announced.
The defendants each participated in a drug distribution network in which heroin was transported across state lines from Pittsburgh, Pennsylvania to locations in West Virginia and Ohio for redistribution and sale. They were among six individuals charged in an 18-count federal indictment in June 2015.
Andlinger sold heroin in January 2015 near a public elementary school in Marshall County, West Virginia. He pled guilty to one count of “Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.
McKee conspired to possess and sell heroin in Marshall and Ohio Counties in West Virginia throughout 2014 and 2015. He pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge James E. Seibert presided.
Two Oakland Men Sentenced to 57 and 55 Years in Prison for String of Armed RobberiesRead the Press Release
OAKLAND – Melvin Landry, Jr. and Dominique Marquis Martin were sentenced on October 13, 2015, for their participation in a case involving a spree of armed robberies of commercial businesses in and around the Bay Area, announced Acting United States Attorney Brian J. Stretch; FBI Special Agent in Charge David J. Johnson; and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
Landry, 24, of Oakland, was sentenced to 685 months in prison and ordered to pay restitution in the amount of $52,387.28. Martin, 24, also of Oakland, was sentenced to 661 months in prison and ordered to pay $53,387.28 in restitution.
Landry and Martin were defendants in a 25-count Superseding Indictment filed on July 29, 2014. Both defendants were charged with, among other things, conspiracy to commit robbery affecting interstate commerce (Hobbs Act robbery) and Hobbs Act robbery, in violation of 18 U.S.C. § 951(a); and use, possession, and brandishing of a firearm in furtherance of and during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
According to evidence presented at trial, beginning in 2012, the defendants, operating with others in the greater Bay Area including Mill Valley, Fremont, and San Leandro, engaged in numerous armed robberies of McDonald’s restaurants and Walmart stores. During these robberies, the defendants brandished firearms and stole cash and checks while the stores were full of customers. The defendants and others broadcast and boasted about their criminal activities on Facebook, Instagram, and YouTube. The defendants appeared in pictures taken in the aftermath of their crimes in which they were rolling around in large amounts of cash. They also documented themselves on spending sprees with the proceeds from their robberies. On July, 1, 2015, a jury found Landry and Martin guilty of conspiracy to commit robbery affecting interstate commerce, robbery affecting interstate commerce, and using/possessing/brandishing a firearm in furtherance of and during and in relation to a crime of violence.
The sentence was handed down on October 13, 2015, by the Honorable Jeffrey S. White, United States District Judge. Landry and Martin have been in federal custody since July 29, 2013, and will begin serving their sentence immediately.
This case was prosecuted by Assistant United States Attorneys Kathryn Haun, Cynthia Frey, and Kimberly Hopkins with the assistance of Kevin Costello, Daniel Charlier-Smith, Ponly Tu, and Assistant United States Attorney Olusere Olowoyeye of the Eastern District of California. The prosecution is the result of an investigation by the FBI, IRS Criminal Investigation, the California Highway Patrol, the Fremont Police Department, the Alameda County Sheriff’s Department, the Alameda County DA’s Office, the San Leandro Police Department, the San Mateo Police Department, the San Mateo District Attorney’s Office, the Oakland Police Department, the Pinole Police Department, the San Rafael Police Department, the Marin County Sheriff’s Office, the Antioch Police Department, the Richmond Police Department, the Vallejo Police Department, and the Sacramento Police Department.
Two Mail Carriers Charged with Bribery in Connection with Narcotics Trafficking OperationsRead 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, in the first of its kind prosecution, Dennis Bernhard, 56, of Derby, NY, and Briana Fugate, 25, of Cheektowaga, NY, were arrested and charged in separate criminal complaints with multiple counts of bribery. Fugate was also charged with possession with intent to distribute and distribution of marijuana. The bribery charge carries a maximum penalty of 15 years in prison and a $250,000 fine. The marijuana charge is punishable by five years in prison.“These defendants were willing to allow drug dealers to turn the U.S. Mail into their own personal narcotics delivery service,” said U.S. Attorney Hochul. “This Office is committed to protecting the integrity of this important Government operation, as well as ensuring that all who work in public service discharge their responsibilities with honesty and integrity.”
“The Postal Service is in the business of moving the mail. It has no interest in being an unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs,” stated Acting Postal Inspector in Charge James V. Buthorn. “Part of the mission of the Postal Inspection Service is to ensure a safe and secure work environment for our employees. This alleged activity by these defendants poses a significant threat to those we strive to protect. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation. Together we can fight this on-going war on drugs in an effort to keep our communities and employees safe.”
"As employees of the United States Government, we are sworn to serve others, not ourselves," said Adam S. Cohen, Special Agent in Charge of the FBI's Buffalo Division. "Whether it be a postal carrier, councilman, or meter mechanic, we must honor the positions we hold."
"Corrupt postal employees represent a serious breach of public trust and must not go unaddressed," stated ICE HSI Special Agent in Charge James C. Spero. "HSI will continue to partner with other federal law enforcement agencies to ensure that public employees and the U.S. Mail system is not exploited or compromised for illegal means."
Assistant U.S. Attorney Wei Xiang, who is handling the cases, stated that the defendants are accused of accepting bribes while on the job as postal carriers in order to facilitate what they believed were marijuana distribution operations. According to the criminal complaints, Bernhard, a postal employee for 16 years, and Fugate, a two year postal employee, provided addresses of unsuspecting citizens in the City of Buffalo to person posing as a drug dealer in order to be mailed boxes of narcotics from the West Coast. These addresses were within each carrier’s mail delivery route, so that when the boxes arrived in Buffalo, the carrier did not deliver the boxes to the listed recipient address, but held on to the boxes and handed them directly to the witness in exchange for payments of between $200 and $300 per box.
Fugate also stands accused of abusing her positon to examine boxes shipped by customers which she suspected contained drugs, stealing the contents in event the boxes held narcotics, and then selling a vacuum-sealed pound of suspected marijuana to the CHS.
The defendants will make an initial appearance this afternoon at 2:30 p.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the United States Postal Inspection Service, under the direction of Acting Inspector in Charge James Buthorn, the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Two Charged with Hobbs Act RobberyRead the Press Release
David Murray, 32, and Terrell Lang 23, of Philadelphia, Pennsylvania were charged today by indictment for their roles in the commission of two Hobbs Act robberies of pharmacies in Montgomery County, Pennsylvania. The charges arise from the defendants’ June 28, 2015 robbery of over $7,000 from the CVS Pharmacy, located at 2622 Jenkintown Avenue in Glenside, Pennsylvania, and David Murray’s September 15, 2015 robbery of over $4,000 from the Walgreens Pharmacy located at 1 Yorktown Plaza in Elkins Park, Pennsylvania.
If convicted the defendant David Murray faces a maximum possible sentence of 40 years’ imprisonment and co-defendant, Terrell Lang, faces a maximum possible sentence of 20 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Spokane Man Sentenced to Nineteen Years in Federal Prison for Possession of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael James Alderman, age 42, of Spokane, Washington, was sentenced after having previously plead guilty on July 31, 2015 to Possession of Child Pornography. Senior United States District Court Judge Justin L. Quackenbush sentenced Alderman to a nineteen year term of imprisonment, to be followed by a 35 year term of court supervision after he is released from Federal prison. In addition, Alderman was ordered to forfeit to the United States the computer, tablet, and cell phone he used to receive and store his child pornography collection. Alderman will also be required to register as a sex offender.
According to information disclosed during the court proceedings, in January of 2015, while Alderman was on supervision as a prior sex offender, his Community Corrections Officer received information that Alderman was in possession of images of child pornography. Further investigation revealed that Alderman had child pornography on his computer tablet. Investigation by the Federal Bureau of Investigation and federal search warrants for Alderman’s email accounts revealevd that Alderman had been using his email to receive and possess child pornography, which included prepubescent female children under the age of twelve.
Michael C. Ormsby stated, “This manner of victimization of children is thoroughly unacceptable and the United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. I commend the FBI and the Washington State Department of Corrections for their efforts in successfully investigating this case. This is yet another example of a child-pornography-offense that was investigated and prosecuted in this District.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation and the Washington State Department of Corrections. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Sentencings for October 8 - October 15, 2015Read the Press Release
Paul E. Draper, 35, of Hanna, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 15, 2015, for conspiracy to distribute 50 grams or more of methamphetamine. Draper was arrested in Hanna, Wyoming. He received 33 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Beau Spain, 38, of Sacramento, California, was sentenced by Federal District Court Judge Alan B. Johnson on October 15, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Spain was arrested in Sacramento, California. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Celestino Roberto Sandoval, 78, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 14, 2015, on three counts of distribution of cocaine and one count of possession with intent to distribute cocaine. Sandoval was arrested in Cheyenne, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Wayne Brandon Day, 25, of Lander, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 8, 2015, for possession of child pornography. Day was arrested in Casper, Wyoming. He received 18 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $2,000.00. This case was investigated by the Federal Bureau of Investigation.
Richmond Heights woman sentenced to eight years in prison for operating an $18 million healthcare fraud schemeRead the Press Release
A Richmond Heights woman was sentenced to nearly eight years in prison for operating an $18 million home healthcare fraud scheme, law enforcement officials said.
Sharon Ward, 45, was sentenced to 94 months in prison and ordered to pay $18 million in restitution after previously being found guilty to healthcare fraud and aggravated identity theft.
Her mother, Queen Ward, 64, of Cleveland Heights, was previously found guilty of healthcare fraud. She was sentenced to five years supervised release, 300 hours of community service, and ordered to pay more than $400,000 in restitution .
Together, they owned and operated Heritage Home Healthcare Agency in Cleveland Heights, despite the fact that Sharon Ward was previously convicted of Medicaid fraud, which precluded her participation in all federal health care programs for five years. Sharon Ward continued to own Heritage Home Health while she was excluded, as well as continued to see patients as a nurse, conducted nursing visits and bill Medicaid for her and her employees’ services. Queen Ward continued to bill Medicaid for her daughter’s services, and continued to pay Sharon Ward, despite the fact that she had been told by the Ohio Medicaid Fraud Control Unit that Sharon Ward was an excluded provider and had never been reinstated as an accredited provider, according to court documents.
Queen Ward also created fraudulent background checks for prospective employees that had criminal records and therefore would have been disqualified, according to court documents.
Between 2006 and 2014, Heritage Home Health received more than $18.1 million from Medicaid and Sharon Ward received a salary of more than $2.2 million, all during Sharon Ward’s period of exclusion from federal health care programs, according to court documents.
“The conduct detailed in these cases is egregious,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “These programs were designed to help the sick and infirm, and these defendants defrauded them out of millions of dollars for their own personal gain.”
“Health care fraud affects every American,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care. This week’s efforts send a message to those defrauding our system that authorities will collaboratively address this significant crime problem.”
“The defendants in this case exhibited a complete disregard for the law and potentially put the safety and well-being of elderly and ill homebound patients at risk,” said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Today’s sentencing should serve as a deterrence to those who attempt to execute health care fraud schemes, and demonstrate that the OIG and our law enforcement partners are actively engaged in protecting vulnerable patients and taxpayer dollars.”
“Ohio has one of the best Medicaid Fraud Control Units in the country, and we diligently work with our state, local, and federal partners to weed out those who bill Medicaid and Medicare for services they did not provide or services that are not medically necessarily,” said Attorney General Mike DeWine. “Heath care fraud diverts funds from people who legitimately need care, and through joint efforts like this one, we intend to continue to aggressively go after those who steal from taxpayers and take money that they are not entitled to receive.”
This case was prosecuted by Assistant U.S. Attorney Adam Hollingsworth following an investigation by the FBI, U.S. Department of Health & Human Services, Office of Inspector General and the Ohio Attorney General's Medicaid Fraud Control Unit.