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Thursday 8 October 2015
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS ALBERTO RIVERA-MELENDEZ, age 39, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Indictment, on or about August 10, 2015, RIVERA-MELENDEZ was found in the United States after having been officially deported and removed on or about January 16, 2009.
RIVERA-MELENDEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Lance M. Africk set sentencing for December 10, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Grand Jury Returns Indictment Charging Layton Man with Impersonating Federal Officer to Get Vip TicketsRead the Press Release
SALT LAKE CITY – A federal grand jury returned a two-count indictment Wednesday afternoon charging Jonathon M. Wall, age 29, of Layton with impersonation of a federal officer in connection with an attempt to get VIP tickets to the Salt Lake Comic Con.
The indictment alleges Wall pretended to be a Special Agent of the Air Force Office of Special Investigations (AFOSI) and, in that pretended character, demanded VIP tickets to the event under the ruse that he was entering the VIP area to apprehend a wanted fugitive. Wall’s alleged conduct attracted the attention of a retired Salt Lake City police officer working security at the event. The security officer questioned Wall about AFOSI and what fugitive he was looking for. The security officer notified AFOSI special agents, who came to question Wall.
The indictment also alleges one count of making a false statement to a federal agent.
The maximum potential penalty for impersonating a federal officer is three years in prison. The penalty for making a false statement to a federal agent is five years in prison. Each count also includes a potential fine of $250,000. A summons will be issued to Wall to appear for an initial appearance on the charge.
Indictments are not findings of guilt. Individuals charged in indictments are innocent unless or until proven guilty in court.
Galveston Fugitive Sought in Cocaine ConspiracyRead the Press Release
HOUSTON - A total of nine people are in custody following the return of a one-count federal indictment alleging a conspiracy to possess with the intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson.
Authorities are still seeking Patrick Fredrick, 44, of Galveston, who is considered a fugitive. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
Those taken into custody during an enforcement action in the Dickinson and surrounding areas last week include Arturo Cruz, 33, Seferino Nunez, 35, Matthew Olguin 25, Reid Wilder, 31, Sidney Hobbs, 44, and Carlos Cantu, 33, all of Dickinson. They all made their initial appearances before U.S. Magistrate Judge John Froeschner and were temporarily ordered into custody pending detention hearings held this week. With the exception of Olguin, who was permitted release upon posting bond, all were ordered into custody pending further criminal proceedings.
Three others - Guadalupe Martinez Ochoa, 27, of Channelview, Dionisio Gonzales, 53, of Bacliff, and Amado Cruz III, 25, of Dickinson, are also charged but already in custody. Ochoa was being held on related charges while Gonzales and Cruz were in custody on unrelated matters. All have also been transferred and appeared in federal court on the new charges. They will remain in custody.
The indictment alleges that from early 2013 all of the defendants unlawfully conspired to possess with the intent to distribute more than five kilograms of cocaine. At the detention hearings, the government argued that this group is suspected of distributing multiple kilograms of cocaine on a monthly basis. The court heard about their alleged means of operation and how they were identified. In one instance, the government contended that authorities had identified a load of cocaine suspected of being delivered to Galveston. The vehicle, driven by Ochoa, was stopped and searched, at which time authorities discovered five kilograms of cocaine hidden in the vehicle, according to the government’s allegations.
If convicted, each faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The charges are the result of a two-year investigation conducted by the FBI, Drug Enforcement Administration and Texas Department of Public Safety with the assistance of the police departments in Dickinson and Galveston and the Galveston County Sheriff’s Office. Assistant U.S. Attorney John Jocher is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Franklinton Man Pleads Guilty to Structuring over $100,000 in Financial Transactions in One Year to Avoid Federal Reporting RequirementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERRY COX, age 72, of Franklinton, pled guilty today to a one-count Bill of Information charging him with structuring financial transactions to avoid federal reporting requirements.
According to court documents, COX had control and access to several financial accounts, including one at Resource Bank and one at Citizen Savings Bank. Over the course of two occasions—one between September 20, 2011, and October 11, 20111, and another between July 24, 2012, and August 4, 2012—COX engaged in a series of deposits and withdrawals designed to evade Currency Transaction Reporting requirements under federal law. COX was aware of the reporting requirements. Specifically, during the first occasion, COX engaged in seven financial transactions, each under $10,000, in which he withdrew a total of $62,150. During the second time period, COX engaged in seven additional transactions, each under $10,000, in which he withdrew a total of $39,900. In total, COX engaged in structured withdrawals in the amount of $102,050 between September 20, 2011 and August 4, 2012, in amounts and in a pattern designed to avoid the Currency Transaction Reporting requirements.
COX faces a maximum term of imprisonment of not more than 10 years in prison, followed by up to 3 years of supervised release, and a $250,000 fine. U.S. District Judge Nannette Jolivette Brown set sentencing for January 28, 2016.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Former Union County, New Jersey, Vendor Sentenced to 31 Months in Prison for Paying Bribes and Defrauding County of More Than $120,000Read the Press Release
NEWARK, N.J. – The owner of a company that sold maintenance and cleaning supplies was sentenced today to 31 months in prison for paying bribes to a Union County official and to defrauding the county of more than $120,000 in connection with the purchases, U.S. Attorney Paul J. Fishman announced.
Richard Greer, 56, of Marlboro, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging one count of conspiracy to commit mail fraud. Judge Walls imposed the sentence today in Newark federal court.
According to documents in this case and statements made in court:
From 2006 to 2011, Greer owned and operated Positive Attitude LLC, a commercial vendor that sold, among other products, maintenance and cleaning supplies to Union County. Aniello Palmieri, 59, of Toms River, New Jersey, was the director of the Division of Facilities Management for Union County and oversaw the purchasing of building materials, tools, hardware, janitorial supplies and other supplies used by the various bureaus of the division.
Greer made cash bribe payments to Palmieri of $500 per month in exchange for ensuring continued Union County business for Positive Attitude. Greer generated fictitious invoices to Union County for many industrial cleaning products to cover the monies paid to Palmieri, often including a profit for himself above the kickback he paid to Palmieri. Positive Attitude received $120,000 to $200,000 in fraudulent proceeds from the fictitious invoices. Greer used the mails to facilitate this scheme by having Union County send the checks in payment for these purchases to his company in Marlboro.
In addition to the prison term, Judge Walls sentenced Greer to three years of supervised release and ordered restitution of $185,000.
On Oct. 2, 2013, Palmieri and Frank Donald Vicendes III, 50, of Berkeley Heights, a Union County vendor, admitted to engaging in a similar bribery scheme and to defrauding Union County of more than $120,000 in connection with sale of supplies to Union County. Palmieri and Vicendes entered their guilty pleas to mail fraud before Judge Walls in Newark federal court. Palmieri was sentenced Oct. 6, 2015, to 70 months in prison. Vicendes is scheduled to be sentenced Oct. 21, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, for the investigation leading to today’s sentencing. He also thanked the N.J. Attorney General’s Office under the direction of Acting Attorney General John J. Hoffman and Elie Honig, director of the N.J. Division of Criminal Justice, for their work in this investigation.
The government is represented by Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Marc A. Agnifilo Esq., New York
Former Trenton Man Sentenced for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Trenton, Mo., man was sentenced in federal court today for attempting to produce child pornography after secretly filming several victims in the shower.
Edward Allen Stieber, 49, of Brookfield, Mo., formerly of Trenton, was sentenced by U.S. District Judge Beth Phillips to 25 years in federal prison without parole.
On April 24, 2015, Stieber pleaded guilty to two counts of attempting to use a minor, identified as “Jane Doe,” to produce child pornography on separate occasions between January 2009 and January 2011.
According to court documents, agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Cheyenne, Wyo., initiated an investigation in September 2012 into the activities of a subject utilizing a peer-to-peer file-sharing network to advertise images of suspected child pornography. Agents identified Stieber with the username “kool_uncle.” Steiber was employed as an over-the-road truck driver but at the time maintained a residence in Trenton.
Steiber was scheduled to make a delivery in Harmony, Penn., on Dec. 5, 2012. On that day, federal agents executed a search warrant on Steiber’s semi-truck and seized various electronic media containing images and videos of child pornography. Steiber was arrested and later indicted by a federal grand jury in the Western District of Pennsylvania for possessing child pornography.
Investigators examined Steiber’s computers and computer media and discovered a number of homemade videos of minor females that appeared to have been produced in his home. Agents were able to identify the minor victim, as well as an adult victim and three other minor female victims whom Steiber secretly filmed while they were using the shower in his residence.
According to court documents, Steiber also sexually abused a minor victim who was vulnerable based on issues she was facing as a teenager, and took advantage of his position of trust to exploit their relationship.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
This case was prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Wyoming Internet Crimes Against Children Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former State Parole Officer Charged with BriberyRead the Press Release
Jackson, Miss - Andra Smith, 44, of Canton, has been charged by Criminal Information 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 working out of Madison County.
Smith is charged with soliciting bribes from a parolee he was supervising from March, 2015 through June, 2015. Smith took the money in exchange for allowing the parolee to leave Mississippi to find employment.
"Whenever public officials break the law, particularly those persons sworn to serve and protect the public, we must do everything we can to hold them accountable," said U.S. Attorney Gregory K. Davis. "This office will aggressively pursue allegations of corruption and vigorously prosecute such cases."
"These cases are particularly troubling because each one we investigate erodes the very public trust we are all sworn to uphold", said Donald Alway, Special Agent in Charge of the FBI in Mississippi. "Using the authority of the badge for personal gain betrays the vast majority of us who protect and serve with honor."
Mississippi Department of Corrections Commissioner Marshall Fisher stated: "We referred this case to the FBI, based on allegations. We have zero tolerance for corruption in any form by anyone within the Mississippi Department of Corrections. Such conduct is a disservice to the hardworking employees of the agency and the taxpayers of the state of Mississippi. This should serve as a clear message to everyone that MDOC is committed to performing our mission, and we value the services and support of our honest employees."
Smith is scheduled to make his initial appearance before United States Magistrate Judge F. Keith Ball on October 16
th at 1:00 p.m. He will then appear for a hearing before Senior United States District Judge Tom S. Lee at 1:30 p.m. on the same day.
The maximum penalty for bribery is 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 Letter Carrier Admits to Receiving Bogus Travel Expenses for Medical CareRead the Press Release
Greenbelt, Maryland – LaRosa Bolton, age 54, of Laurel, Maryland pleaded guilty today to theft of government property in connection with a scheme to fraudulently receive reimbursement for travel expenses for medical care related to injuries sustained on the job.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to her plea agreement, Bolton was a letter carrier for the U.S. Postal Service at the Laurel, Maryland post office. Between 1993 and 1998, Bolton sustained three separate injuries at work, all of which qualified her for worker’s compensation. She began receiving compensation benefits in 2001. Bolton was also eligible to receive reimbursement for travel expenses to and from medical appointments related to her injuries.
From January 2008 to July 2014, Bolton submitted vouchers to the Office of Worker’s Compensation Programs (OWCP) for the reimbursement of travel expenses for approximately 1,170 trips for medical care. Approximately 89 of those trips were actually for medical care received. However, Bolton admitted that she did not receive medical care for the remaining 1,081 trips.
To obtain reimbursement from OWCP, Bolton periodically prepared and mailed numerous forms falsely certifying that she had driven round trip from her home to medical facilities for treatment. As a result, Bolton was paid between $70,000 and $120,000 for the reimbursement of travel expenses to which she was not entitled.
Bolton faces a maximum sentence of 10 years in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for January 20, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service -OIG and U.S. Department of Labor - OIG, Office of Labor Racketeering and Fraud Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.
Former Employee of Hearing Aid Company Convicted of Retaliating Against WitnessRead the Press Release
Montgomery, Alabama – A federal jury in Montgomery convicted Jeffrey Alan Nursey (64) on Wednesday, October 7, 2015, for retaliating against a witness in an earlier health care fraud case brought against him, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
According to evidence presented at trial, Nursey sent letters to the witness in the underlying health care fraud case and posted flyers around the witness’s workplace. Those flyers labeled the witness as a “sexual child molester” and warned others to avoid him. A jury found that these letters and flyers were meant to retaliate against the witness for cooperating with the United States in the previous case against him. The government’s investigation in the case included forensic evidence that found Nursey’s fingerprint on one of the letters that was mailed to the witness’s church.
“Trials and witnesses are the cornerstone of our justice system,” stated U.S. Attorney George L. Beck, Jr. “This case emphasizes my office’s commitment to make certain that when a witness cooperates with law enforcement authorities, he/she will not be tampered with, retaliated against, or bullied for doing the right thing.”
Nursey faces a maximum sentence of 10 years in prison. In addition, there is a pending petition to revoke Nursey’s probation on the original health care fraud matter.
United States Attorney George L. Beck, Jr., thanked the Federal Bureau of Investigation and the Montgomery County Sheriff’s Office for their assistance in the investigation. Mr. Beck commended Assistant United States Attorneys Bob Anderson and DeeDee Calhoon, who prosecuted the case.
Former Chief Executive of Chicago Public Schools Indicted for Accepting Bribes and Kickbacks to Steer No-Bid ContractsRead the Press Release
CHICAGO — A federal indictment returned today charges BARBARA BYRD-BENNETT with using her position atop the Chicago Public Schools to award lucrative no-bid contracts to her former employer in exchange for bribes and kickbacks.
The 23-count indictment alleges that Byrd-Bennett steered no-bid contracts worth more than $23 million to THE SUPES ACADEMY LLC, and SYNESI ASSOCIATES LLC, in exchange for an expectation of hundreds of thousands of dollars in bribes and kickbacks. The companies agreed to conceal the kickback money by funneling it into accounts set up in the names of two of Byrd-Bennett’s relatives, according to the indictment. A later agreement called for the funds to be paid to Byrd-Bennett in the form of a “signing bonus” after her employment with CPS ended and the companies re-hired her as a consultant, according to the indictment.
The companies, which specialize in training principals and school administrators, provided Byrd-Bennett with numerous other benefits, including meals, an airplane ticket, and seats at basketball and baseball games, the indictment states. Byrd-Bennett also expected to receive reimbursement from the companies for costs associated with a holiday party she hosted for CPS personnel, according to the charges.
The Wilmette-based SUPES and the Evanston-based Synesi are also charged in the indictment, along with their respective former owners, GARY SOLOMON and THOMAS VRANAS. Byrd-Bennett had worked as a consultant for SUPES and Synesi before moving to CPS in May 2012. She was appointed chief executive officer at CPS on Oct. 12, 2012.
The indictment charges Byrd-Bennett, 66, of Solon, Ohio, with 15 counts of mail fraud and five counts of wire fraud. Solomon, 47, of Wilmette, is charged with 15 counts of mail fraud, five counts of wire fraud, two counts of bribery of a government official, and one count of conspiracy to defraud the United States. Vranas, 34, of Glenview, is charged with 15 counts of mail fraud, four counts of wire fraud, two counts of bribery of a government official, and one count of conspiracy to defraud the United States. SUPES and Synesi are charged as corporate defendants with 15 counts of mail fraud and five counts of wire fraud apiece.
The indictment seeks forfeiture from defendants Solomon, Vranas, SUPES and Synesi of all money and property traceable to the violations, estimated at approximately $2 million.
An arraignment date in U.S. District Court in Chicago has not yet been set.
“Graft and corruption in our city’s public school system tears at the fabric of a vital resource for the children of Chicago,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “School officials and city vendors who abuse the public trust will be held accountable.”
Mr. Fardon announced the indictment along with John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Nicholas J. Schuler, Inspector General for the Chicago Public Schools.
“The American people expect honest services from their government leaders, particularly those responsible for leading our teachers and caring for our children,” said Special Agent Brown. “The FBI, in conjunction with our local, state and federal law enforcement partners, remains steadfast in its pursuit of those willing to trade the education of our children for their own prosperity.”
“The public education system is harmed when a high-level insider chooses to line their pockets with public funds," CPS Inspector General Schuler said. "My office is committed to rooting out corruption at any level through joint investigations such as this one.”
The contracts referenced in the indictment were awarded by the Chicago Board of Education, which governs CPS, as part of a CBOE training program called the Chicago Executive Leadership Academy (CELA). One such contract – worth $2.09 million for leadership training of school administrators – was awarded to SUPES within two weeks of Byrd-Bennett’s appointment as CEO, and then extended with an additional $225,000 allocation in 2013. A larger no-bid contract – worth $20.5 million – was awarded to SUPES on June 26, 2013.
The indictment alleges that Byrd-Bennett used her position as CEO to lobby CBOE officials on behalf of SUPES and Synesi, and to actively seek funds from the CPS budget to expand the CELA program for the companies’ benefit. Byrd-Bennett directed CPS employees to obtain the necessary approvals to eliminate competitive bidding from the procurement process, and to ensure that the contracts were awarded to SUPES, according to the indictment.
All the while, Byrd-Bennett falsely represented to CBOE officials that she received no financial compensation from the companies, the indictment contends. In reality, Byrd-Bennett maintained an interest in SUPES and Synesi through a secret consulting agreement, which promised to pay her a percentage of the gross proceeds from the contracts she helped to procure, according to the indictment.
The indictment cites an email between Solomon and Vranas on or about Dec. 6, 2012, which contained a prior email discussion between Byrd-Bennett, Solomon and Vranas. In that email, Solomon informed Byrd-Bennett, in part: “It is our assumption that the distribution will serve as a signing bonus upon your return to SUPES/Synesi. If you only join for the day, you will be the highest paid person on the planet for that day.”
In the late summer or early fall of 2013, according to the indictment, Solomon informed Byrd-Bennett that the CBOE Inspector General wanted to review Solomon’s and Vranas’s emails. Solomon said Vranas planned to use a computer program to delete the emails, and he told Byrd-Bennett to delete her emails as well, the indictment states.
Each count of mail and wire fraud is punishable by a maximum sentence of 20 years in prison, mandatory restitution, and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. Each count of bribery of a government official carries a maximum sentence of ten years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The charge of conspiracy to defraud the United States is punishable by a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant United States Attorneys Megan Cunniff Church and Lindsay Jenkins.
Indictment (175.45 KB)
Former CBP Officer Sentenced for Allowing Drugs Through Port of EntryRead the Press Release
BROWNSVILLE, Texas – A former Customs and Border Protection (CBP) officer from Brownsville has been sentenced for conspiracy to possess with intent to distribute more than 1000 kilograms of marijuana, announced U.S. Attorney Kenneth Magidson. Jose Luis Zavala, 38, pleaded guilty March 3, 2015.
Today, U.S. District Judge Andrew Hanen ordered he serve 78 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to pay a $7,500 fine.
Zavala had been employed for eight years as a CBP officer assigned to the Brownsville field of operations.
At the time of his guilty plea, Zavala admitted he allowed vehicles loaded with marijuana to enter the United States from Mexico in exchange for money. On Nov. 19, 2014, Zavala was working the Gateway Port of Entry when a van attempted to enter the United States through the inspection lane manned by Zavala. The driver presented a U.S. Passport and the van was randomly selected for an intensive inspection, a decision not made or controlled by Zavala. The driver then abandoned the vehicle and fled on foot to Mexico. The van was carrying 1362 Kilograms of marijuana that was not hidden or disguised as legitimate cargo. Zavala had entered into an agreement with co-conspirators and intended to allow the vehicle and marijuana into the United States.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation by Homeland Security Investigations, Drug Enforcement Administration and Department of Homeland Security - Office of Inspector General. Assistant U.S. Attorney Bill Hagen is prosecuting the case.
Former Bank Vice President Pleads Guilty in Connection with Rothstein CaseRead the Press Release
A former Vice President of TD Bank pled guilty today for his involvement in a wire fraud conspiracy connected to the Rothstein matter.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Frank Spinosa, 54, of Ft. Lauderdale pled guilty before U. S. District Judge Beth Bloom, in Miami, to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At his sentencing, scheduled for December 18, 2015, at 9:00 a.m., the defendant faces a maximum statutory sentence of up to five years in prison.
In 2009, it was discovered that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. In a written factual stipulation filed in connection with his guilty plea, Spinosa, who, at the time, was a Regional Vice President with TD Bank, admitted that he conspired with Rothstein to induce certain persons into investing money in the confidential settlements through material misstatements by defendant Spinosa. Specifically, Spinosa admitted that he and Rothstein agreed to utilize the prestige and legitimacy of TD Bank, and Spinosa’s position as Regional Vice President, to give investors in the scheme a false sense of security and induce them into investing in the confidential settlements by fraudulently creating a document that made it appear that certain investment funds were being held in a restricted account at TD Bank when, in fact, they were not.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Floyd Medical Center Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Floyd Medical Center (Floyd), a system of health care providers located in Rome, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“When a deaf patient or caregiver is unable to understand what is happening during a medical visit or procedure, it can be a terrifying experience and adversely affect the quality of care,” said U.S. Attorney John Horn. “Deaf or hard of hearing citizens deserve the same opportunities to participate in medical decisions as every other citizen.”
The U.S. Attorney’s Office initiated an investigation after receiving three complaints alleging that Floyd failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainants, who are deaf or hard of hearing and rely on American Sign Language as their primary means of communication, were either patients or the primary caregivers of patients at Floyd. One claimant alleged that she endured a complicated labor and delivery by C-section without any effective communication before or during this procedure. Another complainant, who was the primary caregiver for her elderly father, alleged that she was denied effective communication and therefore unable to fully participate in or understand the medical decision-making regarding his terminal illness or discharge to home hospice care.
Under the settlement agreement, Floyd agreed to ensure effective communication to patients who are deaf and hard of hearing. In the future, Floyd agreed to give primary consideration to the expressed preference for a particular auxiliary aid or service by an individual who is deaf or hard of hearing. Among other things, Floyd has agreed to provide mandatory in-service training to all its personnel and provide reports to the U.S. Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf and hard-of-hearing patients and companions. Floyd also agreed to pay $75,000 to the complainants.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant U.S. Attorneys Aileen Bell-Hughes and Emily Shingler are representing the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Floridian Man Sentenced to Jail for 18 Months for Possession of Crack CocaineRead the Press Release
Eric S. Miller, United States Attorney for the District of Vermont, stated that Tyrone Dixon, 35, of St. Augustine, Florida, was sentenced Tuesday in United States District Court in Rutland by U.S. District Court Judge Geoffrey W. Crawford, to 18 months in prison followed by three years of post-release supervision, for possession with intent to distribute approximately 50 grams of crack cocaine.
According to court records, in the early morning of January 5, a Customs and Border Protection Officer stationed at the Derby Line Port of Entry noticed a vehicle making an illegal U-turn in between the ports of entry for the United States and Canada. The car had traveled north towards Canada but turned back before attempting entry into Canada. Customs and Border Protection Officers worked with Special Agents from Homeland Security Investigations to inspect the vehicle and conduct interviews with driver Tyrone Dixon and passenger Emily Lasell of Vermont. From the vehicle, a Customs and Border Protection Officer recovered a hollowed-out loaf of bread concealing approximately 50 grams of crack cocaine, some of which was already packaged for distribution, re-wrapped inside a plastic bread bag, and concealed inside a bag of otherwise innocuous groceries. A Customs and Border Protections Officer also recovered five syringes that appeared to have been used and approximately twenty-five used or torn white packages consistent with the packaging commonly seen in the heroin trade. From inside the passenger’s bra, a Customs and Border Protection Officer recovered two small packages commonly known as “tickets” of heroin.
On January 15, 2015, Dixon was indicted by a federal grand jury on a one-count indictment charging him with Possession with Intent to Distribute a Controlled Substance. Dixon pleaded guilty to the sole count in the indictment on June 2, 2015, pursuant to a plea agreement.
The case was jointly investigated by Homeland Security Investigations and Customs and Border Protection. The United States Attorney commends those agencies for their work and cooperation. Dixon was represented by Assistant Federal Public Defender Elizabeth Quinn. The prosecutor was Assistant U.S. Attorney Abigail Averbach.
Fitzgerald Resident Convicted of Embezzling More Than $79,000 in Social Security BenefitsRead the Press Release
Larry T. Hyman, age 59, of Fitzgerald, Georgia, was convicted, following a 3-day jury trial, of conspiracy to embezzle government monies, on October 7, 2015, in the United States District Court in Albany. Senior United States District Court Judge W. Louis Sands presided over the trial.
Codefendant Gussie Scott pleaded guilty to the same charge on June 9, 2014 and is awaiting sentencing.
Mr. Hyman and Ms. Scott were charged with conspiracy to embezzle $79,826 in Social Security benefits from a deceased person, “W.B.”. For a period of almost eight years after W.B.’s death in 2005, Mr. Hyman, who had his name added as a joint signatory to W.B.’s Bank of America account, continued to withdraw and spend W.B.’s Social Security benefits.
The evidence presented at trial showed that in mid-November 2013 a representative of the Social Security Administration sent letters and made phone calls to W.B. in an attempt to verify his status. Ms. Scott spoke by telephone to the representative from the Social Security Administration. She falsely stated that her name was “Cindy Jones” and that she was a niece of W.B. Ms. Scott further stated that W.B. was not at home, but that she would have him call the Social Security representative back later in the day. The government’s evidence at trial showed that Mr. Hyman knew of Ms. Scott’s call to the Social Security Administration and that he continued to make ATM withdrawals from W. B.’s account after the call.
U.S. Attorney Michael Moore said, “Mr. Hyman stole money intended as benefits for those who spent a lifetime investing in the Social Security program. He enriched himself at the expense of our senior citizens and children and families with severe medical needs and issues. Social security is intended to provide succor and support for the deserving and the needy, not the greedy and avaricious. My office shall continue to work hand in hand with the Social Security Administration in hand to bring to justice those like Mr. Hyman, who steal from the deserving to enrich themselves.”
“The Social Security Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public’s trust by failing to report Social Security beneficiary deaths and continuing to receive the deceased’s benefits. I’m grateful that the U.S. Attorney’s Office shares our determination to protect the integrity of the SSA’s programs for those who rely on them now and into the future,” stated Special Agent-in-Charge Margaret Moore-Jackson.
“The U.S. Secret Service takes seriously the theft of government monies and will take appropriate investigative steps when such acts are committed against the U.S. Treasury. This cooperative effort between the Social Security Office of the Inspector General, the U.S. Secret Service, and the United States Attorney’s Office tells those who may commit such acts that there is always a price to pay for defrauding the hardworking tax payers of this nation,” said Resident Agent In Charge Clint Bush.
The case was investigated by the Social Security Office of the Inspector General and the United States Secret Service. Assistant U.S. Attorney Jim Crane prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Federal Jury Finds Kevin Folse Guilty on Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict this morning finding Kevin Folse, 30, guilty on carjacking and firearms charges after a four-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
In announcing the verdict, U.S. Attorney Martinez noted that the prosecution of Folse was part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Folse initially was charged in this case on July 6, 2015, by criminal complaint with being a felon in possession of a firearm and ammunition. At the time, Folse was prohibited from possessing firearms or ammunition because he previously had been convicted for receiving or transferring a stolen vehicle, marijuana trafficking, aggravated battery with a deadly weapon, and being a felon in possession of a firearm.
On July 14, 2015, Folse was indicted and charged with being a felon in possession of a firearm, carjacking and brandishing a firearm during a crime of violence. The indictment alleged that Folse committed the three crimes on July 2, 2015, in Bernalillo County, N.M. A superseding indictment was filed on Sept. 10, 2015, charging Folse with a second carjacking on July 2, 2015, and with using a firearm to commit that crime. This second firearms charge was subsequently dismissed on the United States’ motion.
The superseding indictment also added Albuquerque resident Angela Murray, 34, as a new defendant, charging her with aiding and abetting Folse in committing the first carjacking. On Sept. 29, 2015, the court granted Murray’s motion to be tried separately from Folse.
At the time federal charges were filed against Folse and Murray, both were being held in state custody on related state charges which were later dismissed in favor of federal prosecution.
Trial of Folse on the superseding indictment began on Oct. 5, 2015, and concluded this morning when the jury returned a guilty verdict against Folse on the four charges against him. The evidence at trial established that Folse committed the first carjacking around 11:00 a.m. on July 2, 2015, in an effort to evade APD officers who were trying to locate him as part of a stolen vehicle investigation. Earlier that morning, while APD officers were conducting surveillance on a house in which they believed Folse to be staying, they caught the attention of a man who was in the house and asked him to open the front door.
When the man went to the door, he encountered Folse, who was in the house without the man’s knowledge. Folse, who was armed with a gun and a knife, forced the man into a room where he was holding several others hostage with assistance from Murray. During the hostage situation, Folse threatened to stab one hostage and struck another on the head with a glass object that shattered. When the man did not open the door and without definitive information as to whether Folse was in the house, the officers retreated from the area immediately around the house.
Around 11:00 a.m., Folse and Murray left the house. Folse forced the man and another hostage to accompany him and Murray as they left the area in the man’s car. APD officers responded to the scene as Folse aggressively drove away at a high rate of speed with Murray and the two hostages in the car. While driving, Folse threw a gun out of the window. Thereafter Folse lost control of the car and crashed as he tried to negotiate a curve at a high rate of speed in a residential neighborhood. The car rolled and landed on its roof. Folse and Murray fled from the car leaving their two hostages behind. APD officers were able to arrest Murray shortly thereafter while another officer went on a foot chase after Folse.
Five minutes after the crash, Folse approached a car that was warming up in the driveway of a house. There was no driver in the car but a 13-year-old boy was in the passenger seat. Folse threatened the boy telling him that he had three seconds to get out of the car. The boy immediately complied by jumping out of the car, and was struck by the car door as Folse backed out of the driveway to make his escape. Once again Folse drove off aggressively and at a high rate of speed, and APD officers who were in pursuit had to end their pursuit of Folse so as not to endanger other motorists.
Folse was arrested in the late night hours of July 3, 2015, by officers of the Isleta Pueblo Tribal Police Department.
The jury deliberated approximately four hours before returning its guilty verdict.
“On July 2nd, Folse went on a day-long violent crime spree during which he terrorized a group of hostages at one residence and a teenager at another, and also endangered countless other individuals as he tried to evade arrest. Today’s jury verdict holds Folse accountable for those crimes and validates the efforts of the ATF agents, APD officers, Isleta police officers and federal and state prosecutors who collaborated with each other to ensure that this “worst of worst” offender will no longer menace our community” said U.S. Attorney Damon P. Martinez. “Throughout New Mexico, federal, state, local and tribal law enforcement officers and prosecutors are working together to make our communities safer places for all of us to live, work and raise our families. The U.S. Attorney’s Office is proud to be part of this tremendous effort.”
“We greatly appreciate the hard work, effort and dedication of the U.S. Attorney’s Office in prosecuting this case,” said 2nd Judicial District Attorney Kari E. Brandenburg. “This jury verdict is a substantial win for all partnering agencies and for the community we represent. It truly is another excellent example of the effectiveness of the Worst of the Worse Anti-Violence Initiative, and the positive impact these collaborative efforts have.”
“Taking violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in New Mexico,” said ATF Special Agent in Charge Thomas G. Atteberry. “I commend the agents and officers who repeatedly risked their lives to remove these violent offenders from our communities. I also wish to recognize the leadership of U.S. Attorney Damon P. Martinez and his office in their relentless prosecution of these violent offenders.”
APD Chief Gorden Eden, Jr., added, “Kevin Folse has terrorized the people of Albuquerque for years as a violent repeat offender who has continuously made his way back onto the streets of Albuquerque. The Albuquerque Police Department is very grateful for the unwavering support of the U.S. Attorney’s Office and ATF for bringing federal charges against violent career criminals like Folse. This verdict ensures that Folse will no longer be able to victimize the innocent people in Albuquerque.”
Folse remains in federal custody pending a sentencing hearing which has yet to be scheduled. At sentencing, Folse faces a statutory maximum penalty of ten years in prison for unlawfully possessing a firearm and ammunition and ten years in prison on each of the carjacking charges. Folse faces a statutory mandatory minimum of seven years and a maximum of life in prison for brandishing a firearm during a crime of violence. The sentence on the brandishing charge must be served consecutive to the sentence imposed on the other three charges.
Co-defendant Murray has entered a not guilty plea and remains in custody pending a trial which has yet to be scheduled. If convicted for aiding and abetting Folse in committing the first carjacking offense, she faces a statutory maximum penalty of ten years in prison. Charges in indictments are mere accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and APD with assistance from the Isleta Pueblo Tribal Police Department and the Second Judicial District Attorney’s Office. Assistant U.S. Attorneys Samuel A. Hurtado and William J. Pflugrath are prosecuting the case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—The results of the October 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Javier Becerra-Sanchez. Reentry of Removed Alien. Becerra-Sanchez, 33, is charged with having returned to the United States unlawfully after being deported in November 2008 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Anthony Dorundo Cox. Felon in Possession of a Firearm and Ammunition. Cox, 31, of Tulsa, is charged with possessing a .40 S&W caliber pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Walter Franklin Deerinwater. Felon in Possession of a Firearm and Ammunition. Deerinwater, 24, of Tulsa, is charged with possessing a 12 gauge shotgun and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Thomas Mongrain Eaves. Second Degree Murder in Indian Country and Voluntary Manslaughter. Eaves, 56, of Pawhuska, an Indian, is charged with second degree murder in Indian Country by killing another person with blunt force trauma. If convicted, the statutory maximum penalty is life in prison and a $250,000 fine for second degree murder, and 15 years in prison and a $250,000 for voluntary manslaughter. The Federal Bureau of Investigation is the investigating agency.
Durian Ramos-Lopez. Reentry of Removed Alien. Ramos-Lopez, 33, is charged with having returned to the United States unlawfully after being deported in September 2011 near Houston, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jose Alfredo Rivas. Felon in Possession of Firearm and Ammunition and Felon in Possession of a Firearm. Rivas, 28, of Tulsa, is charged with possessing a 9mm caliber pistol and ammunition on June 7, 2014, and a 9mm caliber pistol on September 3, 2015, after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies.
John Orin Wulffenstein. Felon in Possession of Firearms and Ammunition. Wulffenstein, 63, of Sapulpa, is charged with possessing a firearm and ammunition after having been previously convicted of a felony. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Drug Enforcement Administration is the investigating agency.
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Defiance man charged with stealing from U.S. Postal serviceRead the Press Release
A Defiance man was indicted for allegedly stealing $22,000 in 2015 in his capacity as a postal employee, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio
Douglas A. Bush, 20, was charged with one count of misappropriation of U.S. postal funds.
If convicted, the defendant’s sentences will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Postal Service, Office of the Inspector General. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Connecticut Man Indicted for Distributing and Receving Child PornographyRead the Press Release
ALBANY, NEW YORK – Parker Sikand, age 23, of Ellington, Connecticut, was indicted last month on three felony charges of distributing, receiving and possessing child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Upon conviction, Sikand would face a mandatory minimum penalty of 5 years imprisonment on the distribution and receipt charges, with a maximum penalty of 20 years on each of the three charges. He would also face a potential fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender.
Sikand has been released and is subject to pretrial supervision pending a trial scheduled for December 7, 2015 before United States District Court Judge Mae A. D’Agostino. He was indicted on September 24.
Sikand was living in Troy, New York, at the time of his alleged conduct.The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Confronting Wave of Illicit Marijuana Cultivation, Federal, State and Local Authorities Discover and Destroy Major Marijuana Grows in Locations Across ColoradoRead the Press Release
DENVER. – Over the course of the last six weeks, federal, state, and local law enforcement agencies have identified and dismantled a large number of illicit marijuana cultivation sites across Colorado, and seized a large amount of marijuana. Some illicit grows were located in multiple residences and outbuildings, while many others were located on federal land, causing environmental damage to the land that may take years to mitigate. In every case, the marijuana grows were both illegal under federal law and unlicensed by state authorities under Colorado’s marijuana regulatory system. In several cases, the marijuana grown was destined for users outside of Colorado.
These raids, executed by federal law enforcement (DEA, the U.S. Forest Service, the Bureau of Land Management, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI)) and state law enforcement (multiple sheriff’s offices) have resulted in the arrest of 32 individuals in connection with the cultivation sites, and the discovery and seizure or destruction of nearly 20,000 marijuana plants – often mature and ready for harvest -- and over 300 kilograms of dried marijuana. In addition to the marijuana, firearms and cash have been recovered. Further, there are ongoing investigations in a number of the grows listed below.
The 32 individuals arrested face federal drug trafficking charges brought by the United States Attorney’s Office in federal court in Denver and Grand Junction.
As alleged in court documents, nearly all of those arrested are from outside Colorado, either other states or from other countries, and include Mexican and Cuban nationals. Some of those arrested are in the United States illegally. Court documents allege that some of those responsible for the marijuana growing and/or trafficking appear to be working for drug trafficking organizations. To date, the following illicit grows have been identified and dismantled:
- * Private Land, September 1st, Cotopaxi and Westcliffe in Freemont and Custer County, 20 people arrested.
A DEA-led task force executed 8 search warrants in Cotopaxi and Westcliffe as part of a major drug trafficking organization investigation. Agents and officers found well over 1,000 marijuana plants, 50 pounds of dried marijuana, 28 firearms, and $25,000 in cash. The investigation and seizures resulted ultimately in the arrest of 20 individuals, many from Cuba, acting in an organized manner. Those arrested were growing the marijuana in Cotopaxi and Westcliffe, and then either driving or using UPS to send the marijuana to Florida.
- * Pike National Forest, August 19th, in the Green Mountain Area in Jefferson County, investigation is ongoing.
Law Enforcement Officers from the U.S. Forest Service, Department of Homeland Security Investigations (HSI), Jefferson County Sheriff’s Office and the Colorado National Guard Joint Counter Drug Task Force joined together to complete an eradication of an illegal marijuana grow site in the Pike National Forest. The eradication team collected more than 3,900 plants and over 3,000 pounds of irrigation pipe, pesticides, flammable liquids, camping gear and trash.
- * Routt National Forest, August 28th, Buffalo Pass Area in Routt County, 2 arrested.
Law Enforcement Officers from the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Routt County Sheriff’s Office joined together to eradicate an illegal marijuana grow site located in the Buffalo Pass area, northeast of Steamboat Springs, Colorado. The eradication team collected approximately 1,000 plants and removed camping gear from the site. Further, a handgun was found. Additional site clean-up of trash and other items will be ongoing by the U.S. Forest Service. Two Mexican Nationals in the country illegally were arrested.
- * San Isabel National Forest, September 7th, Cordova Pass Area northwest of Trinidad in Huerfano County, 2 arrested.
Hunters discovered an illegal marijuana grow site located in the Cordova Pass area approximately 40 miles northwest of Trinidad. The eradication team collected more than 11,700 plants as well as irrigation pipe, pesticides, flammable liquids, camping gear and trash. The U.S. Forest Service and Huerfano County Sheriff’s Office are working together to identify the individuals. The cultivation site spread across 10 acres with some of the growing areas above 10,000 feet in elevation. The overall grow area included a kitchen structure, three sleeping areas, and a rifle. Two men were arrested at one of the camp sites within the cultivation area.
- * Bureau of Land Management Land, September 15th, along the Dolores River corridor between Gateway and Naturita in Montrose County, 4 arrested.
BLM Rangers discovered more than 1,200 fully mature marijuana plants, many exceeding six-feet-tall, along with 211 kilograms of dried marijuana and a rifle. Because of the size of the operation, officers spent two and a half days eradicating and removing the plants. The rangers arrested four Mexican nationals who were on-scene and believed to be working the grow site.
- * Bureau of Land Management Land, September 30th, also along the Dolores River corridor between Gateway and Naturita in Montrose County, 6 arrested.
Law enforcement officers identified a marijuana grow site, also along the Dolores River. Evidence of at least a thousand marijuana plants appeared recently harvested with approximately 69.6 kilograms of processed marijuana still on site. The rangers arrested one Honduran and five Mexican nationals at or near the site.
These matters represent a wave of illicit marijuana cultivation in violation of federal law and operating outside Colorado’s marijuana regulatory structure. Federal, state and local authorities are working in close cooperation to address this unusually large and widespread group of illicit marijuana grows. In addition, federal, state and local authorities are engaged in investigation of other potential illicit grows around the state.
Each of these enforcement actions is pursuant to, and consistent with, the Department’s Guidance Memorandum of August 29, 2013 to federal prosecutors, also known as the “Cole Memo.” The Cole Memo set forth eight areas of federal interest (the “Cole Factors”) and advised federal prosecutors to focus federal law enforcement resources on those priority areas. The enforcement actions summarized in this press release implicate many of those federal interests, including but not limited to:
- Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs and cartels;
- Preventing the diversion of marijuana from states where it is legal under state law in some form to other states;
- Preventing violence and the use of firearms in the cultivation and distribution of marijuana;
- Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and
- Preventing marijuana possession or use on federal property.
In addition, these marijuana grows represent systematic efforts to evade and sidestep Colorado’s ongoing regulatory efforts under state law, and as a result implicate the Cole Memo’s emphasis on ensuring that state regulatory regimes are effective in practice.
“These joint federal-state law enforcement actions against large illicit marijuana grows represent a new phase in the challenges facing law enforcement after Colorado’s legalization and regulation of marijuana under state law,” said United States Attorney John Walsh. “Illegal activity of this kind underscores the need for strong, joint law enforcement efforts by federal and state authorities to identify, cut off and destroy the efforts of drug trafficking organizations to use Colorado as a ‘source state’ for export of illegal marijuana around the country. State and local authorities deserve our appreciation and support for their efforts on the ground to team up with federal authorities on this critically important effort to keep Colorado safe.”
“The illegal cultivation of marijuana is a serious threat to our communities, especially when it’s done on public land,” stated Barbra Roach, Special Agent in Charge of the Drug Enforcement Administration’s Denver Field Division. “Our parks and public lands are for everyone to enjoy, and the health and safety of visitors must not be threatened by the illegal activities of criminal organizations and the cultivators they employ. Those responsible must be stopped and held accountable.”
“Since many of the suspects of the recently discovered marijuana grow operations in Colorado are undocumented aliens, Homeland Security Investigations can provide unique and extensive law enforcement authorities to investigate these cases,” said David A. Thompson, special agent in charge of HSI Denver. “Our partnership with other local, state and federal law enforcement agencies helps ensure that these criminal organizations are totally dismantled, making communities and public lands safer.”
“The Forest Service remains committed to provide public safety and protection of the natural resources on national forest lands by aggressively working to locate illegal marijuana sites, arrest and pursue prosecution of the growers and clean up the sites,” said U.S. Forest Service Special Agent in Charge Laura Mark. “The significant safety concerns and environmental damage caused by these marijuana sites is a priority for Forest Service Law Enforcement.”
"Illegal marijuana cultivation on public land brings hazards like illegal waste disposal, use of illegal pesticides, herbicides, and rodenticides; and the illegal use of the public's water," said BLM Colorado Special Agent in Charge Gary Mannino. "In order to protect the public as well as the public's natural resources, BLM will continue to enforce federal prohibitions on marijuana cultivation on public lands. This is particularly timely during hunting season, when so many Coloradans head out to enjoy their public lands."
“It is vitally important that we work together with our law enforcement partners in the endeavor to locate and eliminate illegal marijuana grow operations off of our public lands and out of our neighborhoods,” said Jefferson County Sheriff Jeff Shrader.
“As the elected sheriff of Routt County, I am proud of the working relationship with our Federal partners regarding all matter of public safety,” said Garrett Wiggins, Sheriff of Routt County. “Earlier this year, the Routt County Sheriff’s Office partnered with numerous federal and state law enforcement agencies in a large, illegal marijuana grow investigation located in the Routt National Forest. Even though the State of Colorado passed state laws legalizing limited marijuana use, the practice of growing illegal marijuana crops on our public lands continues. This illegal practice creates serious public safety concerns for our citizens enjoying the many outdoor activities in our areas. In addition, these clandestine activities cause serious concerns to our natural resources associated with erosion and contamination of water sources from chemical and sometimes illegal substances being introduced through the fertilization process. Our goal is to continue to work with all our local, state and federal partners in investigating all public safety issues and hold those individuals accountable who participate in illegal activity.”
“Huerfano County is experiencing the same problems with marijuana that many other counties are – that citizens think because it is legal they can do whatever they want,” said Huerfano County Sheriff Bruce Newman. “Those who don’t follow the law will be arrested and their marijuana confiscated and destroyed.”
“I would like to extend my appreciation to the U.S. Attorney’s Office, DEA, Fremont County Sheriff’s Office, Pueblo County Sheriff’s Office and the Pueblo Police Department for their direct assistance in this operation,” said Custer County Sheriff Shannon K. Byerly. “Their help was critical in conducting this without incident. I would also like to recognize the efforts of the men and women of the Custer County Sheriff’s Office who contributed to this mission. This was an important step to gain control over the illegal production and sales of Marijuana in our area and we will continue to investigate those attempting to take advantage of the Marijuana laws in Colorado. Our communities earned an important victory today.”
“Because of the negative impact illegal drug trafficking has on our communities, we are very appreciative of the superb relationships that have been fostered between the federal agencies and all the local agencies involved. With this cooperative effort, we have come together to address a mutual problem,” said Fremont County Undersheriff Ty Martin.
Many agencies have worked together to identify and eradicate these public grows. Those agencies include: the Drug Enforcement Administration, the U.S. Forest Service, the Bureau of Land Management, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and local and state law enforcement.
Those arrested are being prosecuted by Assistant U.S. Attorneys from the Major Crimes Section and the Drug Task Force Section of the Colorado U.S. Attorney’s Office.
Columbia Man Charged with Sexual Exploitation of ChildrenRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Roberto Luis Molinary, Jr, age 49, of Columbia, South Carolina has been indicted by the Grand Jury, in Columbia, with a three-count indictment for inducing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, receiving and possessing child pornography in violation of 18 U.S.C. § 2251, 2252A and 2256. Mr. Nettles stated the penalty for sexual exploitation of children is imprisonment of not less than 15 to 30 years. The penalty for receiving child pornography is imprisonment of 5 to 20 years. The maximum penalty for possession of child pornography is 20 years. The case was investigated by the University of South Carolina Police Department, the South Carolina Law Enforcement Division and the Federal Bureau of Investigation. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Columbia Investment Fraudster Pleads GuiltyRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Robert S. Leben, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to Conspiracy to Commit Mail Fraud, a violation of 18 U.S.C. § 371. United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendant concocted a scheme that defrauded 11 investors of over three million dollars. The defendant’s scheme promised high rates of returns (8-16 percent) based on a combination of AAA rated U.S. Treasury debt obligations and the commodities markets. Despite these assurances, the defendant stole the money, converted the funds to cash, purchased and furnished a $500,000 house, installed an elaborate backyard pool and landscape costing about $180,000, gave over $100,000 to his sons, went on numerous ski vacations around the country, paid for surgical procedures for his wife, all while also paying for his daily expenses.
Mr. Nettles stated the maximum penalty for Conspiracy to Commit Mail Fraud is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the FBI. Assistant United States Attorneys Winston Holliday and Jim May of the Columbia office are prosecuting the case.
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Cleveland woman charged with stealing nearly $190,000 from Social SecurityRead the Press Release
A criminal information was filed in U.S. District Court today charging Barbara J. Clark, 62, of Cleveland, with theft of public money, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The alleged theft, occurring between1983 and 2014, resulted in a loss of approximately $188,973 to the Social Security Administration.
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Special Assistant United States Attorney Lisa J. Sanniti.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A criminal information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cincinnati Men Charged Federally for Illegal Possession of FirearmsRead the Press Release
CINCINNATI – A federal grand jury has charged Keno Phillips, 41, of Cincinnati, Ohio, with possession with intent to distribute cocaine, possession of a firearm by a prohibited person and possession of a firearm in furtherance of a drug trafficking offense and Steve Ivery, 30, of Cincinnati, Ohio, with possession of a firearm and ammunition by a prohibited person, in indictments returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Interim Cincinnati Police Chief Eliot Isaac, and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, announced the indictments returned yesterday.
The indictment charging Phillips alleges that he possessed a mixture of cocaine and a semi-automatic handgun, along with ammunition, and that he used the loaded handgun in furtherance of a drug trafficking crime. Phillips is a convicted felon, having been convicted in both state and federal courts.
The indictment charging Ivery alleges that he possessed a revolver and ammunition after being convicted of three violent felonies. Ivery is charged as being an Armed Career Criminal.
Phillips faces a mandatory sentence of 5 years and up to life for possession of a firearm in furtherance of a drug trafficking offense, up to 10 years imprisonment for possession of a handgun and ammunition by a prohibited person. Ivery faces a mandatory sentence of 15 years and up to life for the offense he currently faces.
“These indictments illustrate the commitment of state and federal law enforcement working together to pursue federal charges against those who illegally wield weapons and perpetuate gun violence,” U.S. Attorney Stewart said.
U.S. Attorney Stewart commended the investigation of this case by the Cincinnati Police Department and ATF, and Assistant U.S. Attorneys Christy Muncy and Timothy Oakley who are prosecuting the cases.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Canadian Man Pleads Guilty to Benefit Fraud and Aggravated Identity TheftRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Jerome Bond, 46, recently of Gardiner, Maine, pled guilty today in U.S. District Court to theft of public money and aggravated identity theft.
According to court records, on about January 19, 2011, Bond applied for and was granted Supplemental Nutrition Assistance Program (“SNAP”) benefits using the name of an actual U.S. citizen. SNAP offers nutrition assistance to eligible, low-income individuals. Bond, a Canadian citizen, was not eligible for SNAP benefits at the time of application and improperly received over $5,900 in SNAP benefits.
Bond faces up to 10 years in prison, three years of supervised release and a $250,000 fine for benefit fraud and a mandatory additional two years in prison for aggravated identity theft.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine Office of the Attorney General, and the Maine Department of Health and Human Services.
Canadian Man Gets 2 Years in Prison for Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Jean Jacques Joseph Binette, age 53, of Canada, was sentenced today to serve 24 months in prison for illegally re-entering the United States, announced United States Attorney Richard S. Hartunian and Michael T. Phillips, Buffalo Field Office Director of Enforcement & Removal Operations for U.S. Immigration and Customs Enforcement.
In August, Binette pleaded guilty to a violation of the Immigration and Nationality Act, which prohibits previously removed aliens from entering, attempting to enter or being found in the United States without permission. Binette was sentenced by U.S. District Court Judge Lawrence E. Kahn. Following Binette’s prison term, he will be removed from the United States.
Binette was prosecuted after he was encountered in June 2015 by the New York State Police in Dresden, New York. Immigration and Customs Enforcement (ICE) Officers then determined that Binette was an alien unlawfully present in the United States.
A check of Binette’s fingerprints indicated that he had been deported from the United States to Canada in 2000 after being convicted of an aggravated felony in Cook County, Illinois, in 1994. Binette was also deported a second time in 2002.
This case was investigated by U.S. Immigration and Customs Enforcement, with assistance from the New York State Police, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Businessman Arrested for Introducing Misbranded Drugs into Interstate Commerce, Conspiracy, Wire and Mail FraudRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned an indictment against Jorge L. Pagán Kortright and his companies AWD Group Inc. doing business as El Torito USA, Inc., Allied Worldwide Distributors Inc., and All Wheel Drive Corp., for introduction of misbranded drugs into interstate commerce, conspiracy to commit wire fraud, wire fraud, and mail fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), with the collaboration of the Puerto Rico Police Department, Guayama Municipal Police, and the Puerto Rico Treasury Department (Departamento de Hacienda).
The indictment alleges that the defendants, aiding and abetting each other, with the intent to defraud or mislead, introduced and delivered for introduction into interstate commerce drugs, namely, “El Torito Plus 1000 mg,” ‘El Torito Xtreme 500 mg,” and “El Torito Black Bull Power 500 mg” that were misbranded; the labeling of each drug was false and misleading. The drugs were sold on El Torito’s website, Amazon.com, eBay.com, and at gas stations throughout Puerto Rico.
“El Torito Plus 1000 mg,” “El Torito Xtreme 500 mg,” and “El Torito Black Bull Power 500 mg,” were capsules and pills sold over the counter and on the Internet that were labeled and marketed as “100% natural” dietary supplements and performance enhancers. The capsules and pills were marketed as “natural supplements for men and women” to “help” “achieve a pleasant and lasting sexual experience with all natural ingredients.” In fact, El Torito’s products contained sildenafil and tadalafil (the active ingredients in Viagra™ and Cialis™ respectively), and their synthetic analogs, including desmethyl-carbodenafil and dithiodesmethyl-carbodenafil. Sildenafil and tadalafil are the active ingredients of branded drugs approved by the FDA and are also “prescription drugs” that, because of their toxicity and other potential harmful effects, were not safe for use except under the supervision of a practitioner licensed by law to administer such drugs. These undeclared ingredients may interact with nitrates found in some prescription drugs such as nitroglycerin and may lower blood pressure to dangerous levels for individuals with diabetes, high blood pressure, high cholesterol, or heart disease.
It was the object of the conspiracy for defendants and their coconspirators to unlawfully enrich themselves by obtaining money and property from individuals under the false and fraudulent pretenses and representation that individuals were purchasing “100% natural” dietary supplements and performance enhancers when, in fact, defendants were selling misbranded prescription drugs.
During the course of the conspiracy, e-mail communications were sent by defendants to their manufacturers, distributors, and others in furtherance of the scheme to defraud and payments were received using PayPal. For example, one of the emails sent by an El Torito distributor to [email protected] under the name “Jorge Pagan” stated that: “you need to change the pictures of Torito chinese box from the website because the sheriff will probably look at the site for info and i told them that Torito is made in usa and i showed them the box without the chinese letters.”
Another email communication sent from [email protected] under the name “Jorge Pagan” to a manufacturing contact stated that he was “only worried about my investment and the loss of money if authorities find controlled ingredients. The authority will only get involve when the big pharmasuricals [sic] companies pressure them because they lose sales with these products.” “If Mr. Wangs product get problems, all he has to do is send me a new brand name box and just change the style of the packaging the capsule in the blister pack and we can do this for ten years. So the authorities will be fooled all the time.”
As part of the scheme to commit the mail fraud, the defendants knowingly placed in an authorized depository for mail, to be sent and delivered by the United States Postal Service, numerous El Torito products.
“The authorities were not fooled by these criminals who are now in federal custody,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “The law requires that drugs be produced and branded under the most rigorous of quality standards. When individuals and companies fail to exercise the vigilance that the law demands, they will held be accountable. Today’s arrest shows that we will not tolerate criminals who engage in fraudulent schemes in order to enrich themselves without considering how their actions may affect the health and well-being of others.”
“Distributing prescription drugs disguised as all-natural dietary supplements puts the health and safety of the American public at risk,” said Acting Special Agent in Charge Robert J. West, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to focus our resources on removing illegal products from the marketplace, as well as prosecuting those who attempt to evade FDA regulations.”
FDA-OCI was the lead agency which conducted the investigation, with the collaboration of PRPD, Hacienda and the Guayama Municipal Police. The case is being prosecuted by Assistant U.S. Attorney Luke Cass. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel provided valuable assistance to this criminal investigation.
If found guilty, the defendant could face a possible sentence of up to 30 years in prison for the mail and wire fraud counts. Indictments contain only charges and are not evidence of guilt. Defendants are presumed innocent unless and until proven guilty by a unanimous jury.
If you have used El Torito products in the past and have questions you may call 1-888-INFO-FDA or contact the FDA online at www.fda.gov.
Bloomfield Man and Albuquerque Woman Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionsRead the Press Release
ALBUQUERQUE – Curtis Murray, Sr., 52, of Albuquerque, N.M., and Yvonne Anaya, 40, of Bloomfield, N.M., were sentenced today in federal court in Albuquerque, N.M., for their involvement in a Feb. 2014, drug trafficking conspiracy. Murray was sentenced to 33 months in prison followed by six years of supervised release. Yvonne Anaya was sentenced 48 months in prison followed by one year of supervised release.
Murray and Yvonne Anaya are two of 29 individuals charged with drug trafficking offenses as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya, 31, of Farmington, N.M., that distributed quantities of methamphetamine throughout San Juan County, N.M., and expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Thirteen of the defendants, including ringleader Isaac Anaya were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
On Feb. 26, 2015, Murray pled guilty to conspiracy to distribute methamphetamine and admitted that from May 28, 2013 through Sept. 25, 2013, he conspired with others to distribute methamphetamine in San Juan County. Murray further admitted that he worked as a distributor of methamphetamine on behalf of Isaac Anaya
On March 13, 2015, Yvonne Anaya pled guilty to the use of a telephone to facilitate a drug trafficking crime and admitted to contacting Isaac Anaya on multiple occasions regarding drug trafficking activities and the possibility that Isaac Anaya was being investigated by law enforcement.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorney Reeve L. Swainston is prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of 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.
Birmingham Receives $300,000 DOJ Safe Neighborhoods GrantRead the Press Release
Multi-Faceted Approach to Target Violent Gang and Gun Crime
BIRMINGHAM -- The U.S. Department of Justice in September granted the City of Birmingham nearly $300,000 for a program that combines intensified enforcement in high-crime neighborhoods with literacy education and increased supervision and support during probation and parole in a comprehensive approach aimed at reducing gun crime and gang violence, announced U.S. Attorney Joyce White Vance.
DOJ's Bureau of Justice Assistance awarded a Project Safe Neighborhoods grant of $294,867 over two years to Birmingham for its Violent Gang and Gun Crime Reduction Program. The city will use the grant to reduce gang gun violence in Birmingham by implementing saturation patrols in areas with the highest gun crime, and by increasing supervision of at-risk probationers and parolees who live in the high gun-crime areas, according to the grant notification from DOJ's Office of Justice Programs. Birmingham also will implement a Better Basics literacy program for children living in those high crime areas.
The federal PSN program is designed to create safer neighborhoods through a sustained reduction in gun crime and gang violence. The program's effectiveness depends on the cooperation of local, state and federal agencies engaged in a unified approach led by the U.S. attorney. The U.S. Attorney's Office in the Northern District of Alabama has developed numerous partnerships in the Birmingham area, over several years, to help implement a comprehensive PSN strategy to reduce violent crime in the city.
"My office has an effective PSN Task Force that includes law enforcement at all levels," Vance said, "but it also includes researchers and community service providers and support organizations because law enforcement alone will not solve the problem of violent crime," she said. "This DOJ grant will support the multi-faceted approach necessary to fight the crime and to fight the deficits in education and support services that lead new generations into crime and lead those who have served their time in prison to return to crime."
"This grant will help us to achieve the goal of ultimately creating a safer city," said Birmingham Mayor William A. Bell Sr. "The joint effort and interagency support is key to allowing the city to really make great strides in making street-level changes that impact us all.”
"We believe this grant will definitely benefit our efforts to build and sustain a comprehensive approach to reducing violent crime and delinquency in our city," said Birmingham Police Chief A.C. Roper. "This funding will enhance the great teamwork and collaboration amongst our law enforcement agencies and community partners.”
“Pardons and Paroles values its partnership with the U.S. Attorney’s Office for the Northern District, the City of Birmingham, and local community providers as we strategically proceed with creating a safer community by reducing gun crime and gang violence together," said Alabama Pardons and Paroles Board Member Robert P. Longshore. "Funding for much needed agency staff through this grant opportunity will bolster the efforts the state is making to increase public safety by investing in Alabama’s probation and parole officer workforce," he said. "Our local office is committed to dedicating resources in this effort to target high-risk/violent supervised offenders to protect public safety, and assisting with a call-in program to curb the likelihood that supervised offenders will commit new, firearm-based offenses.”
The grant-funded multi-dimensional approach to reducing gang gun violence will bring together the mayor's office, the Birmingham Police Department, the University of Alabama at Birmingham, The Alabama Board of Pardons and Paroles, the non-profit Dannon Project and the Better Basics literacy program.
The city will employ a researcher from UAB to analyze crime and gunshot data to identify the city's violent crime hotspots. The Birmingham Police Department's Neighborhood Enforcement Team and Crime Reduction Team will saturate those hotspots with patrols and will add equipment and training to enhance the department's capacity to combat firearms crime. The Community Policing and Revitalization program in the mayor's office will increase programming within the designated hot spots.
The state pardons and paroles board will work with the U.S. Attorney's Office, the U.S. Marshall Service and the Birmingham Police Department to identify high-risk probationers and parolees and designate them for intensified monitoring, which will make those supervisees eligible for U.S. Department of Labor-funded job-training services from The Dannon Project.
To address the link between academic failure and delinquency, violence and crime, Better Basics will increase its literacy programs for elementary students in schools within identified areas of high violent crime.
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Alleged Dollar Store Robber ChargedRead the Press Release
PHILADELPHIA - Terrence Harper, 41, of Philadelphia, PA, was charged today by indictment with two robberies and an attempted robbery at businesses in Philadelphia, announced United States Attorney Zane David Memeger. According to the indictment, on December 13, 2013, Harper attempted to rob the Family Dollar Store, located at 6337 North Broad Street, and carried out a robbery at that same Family Dollar Store on December 15, 2013. Harper also allegedly robbed the Whisper Inn, at 7610 Ogontz Avenue, on December 18, 2013. The indictment also charges Harper with related firearms offenses.
If convicted of all charges, the defendant faces a mandatory minimum sentence of 32 years in prison with a statutory maximum sentence of life, up to five years of supervised release, a $500 special assessment, possible fines, and restitution.
This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, and the Philadelphia District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Albany Man Pleads Guilty to Importing A Controlled SubstanceRead the Press Release
ALBANY, NEW YORK – Damon J. Murray, age 27, of Albany, pleaded guilty today to importing the controlled substance ethylone into the United States, announced U.S. Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Assistant Special Agent in Charge Nicholas DiNicola.
Murray will face a maximum term of imprisonment of 30 years, a maximum fine of $2 million, and a term of supervised release of at least 6 years and up to life when he is sentenced on February 11, 2016 by United States District Judge Mae A. D’Agostino.
Ethylone, which is often used as a party drug, has been categorized as a Schedule I controlled substance since March 2014.
On February 12, 2015, U.S. Customs and Border Protection Officers in Cincinnati, Ohio, intercepted a package that had been sent from China to the United States, and which was addressed to “Damon Murray LLC” at the defendant’s residential address in Albany. The package was found to contain about 400 grams of ethylone. On February 26, 2015, the defendant accepted and signed for the package. HSI Special Agents then arrested the defendant, who admitted ordering the ethylone from China and also previously selling ethylone to others, sometimes marketing it as “molly.”
This case was investigated by Homeland Security Investigations, with assistance from the Albany County Sheriff’s Office and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Alamogordo Man Sentenced to Federal Prison for Possession of Unregistered Saw-Offed ShotgunRead the Press Release
ALBUQUERQUE – Kenneth Colby Miller, 31, of Alamogordo, N.M., was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for violating the federal firearms laws by possessing an unregistered firearm.
Miller was arrested on April 30, 2015, on a criminal complaint charging him with possession of an unregistered firearm. According to the complaint, on Dec. 3, 2014, an officer with the Roswell Police Department conducted a routine traffic stop on Miller’s vehicle in Chaves County, N.M. After conducting a consensual search of Miller’s vehicle, the officer recovered a single shot “sawed-off” shotgun with no visible serial number or manufacturers markings. After further investigation, Miller’s background also revealed that he had been convicted twice of unlawful taking of a motor vehicle and reckless driving.
On July 1, 2015, Miller pled guilty to a felony information charging him with possession of an unregistered firearm. In entering the guilty plea, Miller admitted that on Dec. 3, 2014, he possessed a sawed-off 20 gauge shotgun which did not have a serial number and was not registered to him in the National Firearms Registration and Transfer Record.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department. Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Acting United States Attorney Vincent H. Cohen, Jr. to Step DownRead the Press Release
WASHINGTON – Vincent H. Cohen, Jr. announced today that he is resigning as Acting United States Attorney for the District of Columbia, effective at midnight, Oct. 18, 2015. He has led the Office for six months, following nearly five years as Principal Assistant U.S. Attorney.
Acting U.S. Attorney Cohen, 45, a native Washingtonian, succeeded Ronald C. Machen Jr. as the head of the nation’s largest U.S. Attorney’s Office on April 1, 2015. Acting U.S. Attorney Cohen had served since July 2010 as Principal Assistant U.S. Attorney.
Following the recommendation of Del. Eleanor Holmes Norton, President Obama has nominated Channing D. Phillips as the next U.S. Attorney, pending Senate confirmation.
“Over the past six months, Vince Cohen has served the District of Columbia as Acting United States Attorney with integrity and distinction,” said Attorney General Loretta E. Lynch. “Through his work against violent crime, drug trafficking, and national security threats, Vince has demonstrated his commitment to service and his dedication to the people of Washington. I have been proud to serve with Vince for many years, and I'm confident that he will continue to be an exemplary leader and a champion of justice in the next phase of his already distinguished career.”
“It has been a great honor to serve the people of the District of Columbia over the past five years. There is nothing more rewarding than going into work every day with the single goal of improving the lives of the citizens of the city where I was born and raised,” said Acting U.S. Attorney Cohen. “We have made great progress over the past five years in fighting violent crime, public corruption, and threats to our national security. There are some important cases that I wish I could see through to their conclusions, but I have complete confidence in the team at the U.S. Attorney's Office to follow through and do justice for the people of the District. Channing Phillips is a seasoned lawyer with the decades of experience that will allow him to successfully carry on the important work of the Office. In addition to spending more time with my young children, I am looking forward to taking on new professional opportunities and continuing to find ways to serve my hometown. I want to thank my colleagues at the U.S. Attorney's Office, our community partners, law enforcement partners, and everyone who has offered their support of our efforts to build a stronger and safer District of Columbia.”
During Mr. Cohen’s time as Acting U.S. Attorney, the Office secured indictments, convictions, and sentences of dozens of defendants accused of engaging in crimes such as terrorism, financial fraud, public corruption, and homicides. Mr. Cohen also placed a high priority on enforcing federal laws against banks involved in moving money illegally through the U.S. financial system on behalf of sanctioned countries and foreign entities. Under his leadership, the Office also secured millions of dollars from companies accused of violating the False Claims Act and cheating American taxpayers by overbilling the federal government. He helped create and expand the Office’s Cyber Unit to combat cyber-based crimes. Mr. Cohen also played an integral role in the creation of the first federal Conviction Integrity Unit in a United States Attorney’s Office. He has emphasized the importance of community outreach, hosting a youth summit and other events, including visits to homeless shelters, in which he warned of the dangers of using synthetic cannabinoids.
As Acting U.S. Attorney, Mr. Cohen was appointed by Attorney General Lynch as a member of the Attorney General’s Advisory Committee, a small group of U.S. Attorneys from across the country who provide advice and counsel to the Attorney General on policy, management, and operational issues. Mr. Cohen also worked in partnership with a wide variety of law enforcement and regulatory agencies that investigate financial matters, including the Justice Department’s Antitrust Division, the U.S. Securities and Exchange Commission, and the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury.
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National Security: Mr. Cohen supervised the Office’s work on the ongoing case against Ahmed Abu Khatallah for his alleged participation in the 2012 attack on U.S. facilities in Benghazi, Libya, which resulted in the deaths of four Americans. Among other cases, he oversaw work on the prosecution of a dual Dutch-Turkish national, who was extradited to the United States in July 2015 to face terrorism charges stemming from his alleged support of a designated foreign terrorist organization and the prosecution of a Mexican national extradited to the United States last month to face charges in the murder of a U.S. Immigration and Customs Enforcement Special Agent and the attempted murder of another.
Fraud and Public Corruption: For the past several years, Mr. Cohen has led an internal task force focused on local public corruption matters. He helped supervise the work that led to the convictions of three members of the District of Columbia Council and the Chief of Staff to a fourth member of the Council. In addition, he has helped manage the Office’s work leading to the prosecution of eight individuals for wrongdoing associated with the 2010 election for Mayor of the District of Columbia. Under Mr. Cohen’s leadership, the Office continued work on the investigation into the largest domestic bribery and bid-rigging scheme in the history of federal contracting cases. Overall, participants in the scheme stole over $30 million in government money through fictitious invoices and conspired to steer a nearly $1 billion government contract to a favored government contractor. The Office also obtained a 64-month prison sentence in the case of a former U.S. Foreign Service Officer, who accepted over $3 million in bribes to process visas for non-immigrants seeking entry into the United States; a 13-year sentence for a man who operated a $28 million Ponzi scheme; a 17-year sentence for a businessman who took part in an investment fraud scheme that led to over $13 million in losses for investors, and a 46-month sentence for a man who participated in a massive identify theft and tax fraud scheme involving the filing of fraudulent income tax returns seeking over $2.5 million in refunds. Overall, since 2010, under Mr. Cohen’s leadership, more than 150 people have been found guilty or pled guilty to federal corruption charges.
Financial Recoveries: As Acting U.S. Attorney, and earlier in partnership with Mr. Machen, Mr. Cohen sharpened the Office’s focus on financial recoveries, generating over $2.8 billion for the federal government over the last five and a half years through civil and criminal collections and asset forfeiture. In one such case, the U.S. District Court for the District of Columbia entered a formal judgment in May 2015 that required Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd., to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.
Under Mr. Cohen’s leadership, the Office’s Civil Division has expanded its work on affirmative civil enforcement actions. A particular focus has been the False Claims Act. The Office now has 159 active cases, including over 40 involving health care fraud. Mr. Cohen has built a strong relationship with the qui tam community by hosting a conference of the Relator’s bar and participating in similar conferences and forums. The Office now has the fourth-highest number of qui tam cases in the country.
For example, in April 2015, two cardiovascular laboratories agreed to pay $48.5 million to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing. Another company and its principals agreed in July 2015 to pay the government $7.8 million to resolve allegations that they made false statements to obtain contracts through a Small Business Administration program.
Cyber-crime: Mr. Cohen has focused his attention on expanding the Cyber Unit to attack cyber-crimes throughout the country and internationally. The Unit investigates and prosecutes a wide variety of cyber-crimes and advises and assists other parts of the Office with issues related to electronic, computer and Internet-based evidence and legal process. In one recent case, for example, a former employee of the U.S. Department of Energy and U.S. Nuclear Regulatory Commission is accused of an attempted e-mail spear-phishing attack that targeted government employee e-mail accounts.
Violent Crime: As Acting U.S. Attorney, Mr. Cohen has focused heavily on strategies to combat violent crime, coordinating a multi-faceted approach with the Metropolitan Police Department and federal law enforcement partners. He has helped coordinate efforts to devote more federal resources to assisting MPD in dealing with this problem, working closely with the FBI, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and other agencies. During his leadership, Mr. Cohen led the Office’s work to deal with the public safety and health problems stemming from the emergence of synthetic cannabinoids. At his direction, the U.S. Attorney’s Office has launched community education sessions in which prosecutors and D.C. drug prevention experts talk about the dangers of these substances at various locations throughout the District of Columbia. On the enforcement front, the Office is prosecuting sellers of synthetic cannabinoids, and filed federal charges against two men after one of the biggest seizures to date in the District of Columbia.
Community Outreach: Mr. Cohen has been a champion of community outreach throughout his time at the Office, and he led the fifth annual youth summit in June 2015 attended by hundreds of teenagers at the Friendship Collegiate Academy in Northeast Washington. He has spoken at town halls and other neighborhood events. Internally, Mr. Cohen has continued his work on recruiting and diversity. He spoke at the LGBT Bar’s annual conference in Chicago and attended the annual conferences of the National Bar Association and the Hispanic National Bar Association. In addition, he delivered the keynote address in July 2015 at the gala for the conference of the National Black Prosecutors Association. As the head of the Office’s hiring committee, Mr. Cohen was responsible for the hiring of over 150 Assistant U.S. Attorneys, many of whom are from diverse backgrounds.
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Mr. Cohen graduated with honors from Syracuse University in 1992 and obtained his juris doctorate from Syracuse University School of Law in 1995. He first joined the U.S. Attorney’s Office in 1997 following his hiring by then-U.S. Attorney Eric Holder. Mr. Cohen handled criminal and civil matters until 2003, when he left the Office for private practice.
In private practice, Mr. Cohen first worked at Hogan & Hartson (now Hogan Lovells), specializing in white-collar criminal litigation and employment law. Mr. Cohen later became a partner at Schertler & Onorato, where his practice included the representation of individuals and corporations in all aspects of criminal and civil litigation.
10 Defendants Charged in Heroin Trafficking RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-The U.S. Attorney’s Office announced today that 10 individuals are charged by criminal complaint with operating a heroin trafficking ring on the West Side of Buffalo. The defendants are charged with conspiracy to possess with intent to distribute, and distribution of, heroin. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40, and a $5,000,000 fine.Charged in the complaint are:
• Hector Carattini
• Michael Perez
• Juan Oliverias-Arbelo
• Mark Gonzelez
• Adalberto Cruz
• Maikel Gonzelez
• Alberto Fernandez
• Raymond DeJesus
• Hector Huertas
• Kristie BoncoreAll the defendants, except for Kristie Boncore, are also charged with possession with the intent to distribute, and distribution of heroin which also carries a mandatory minimum penalty of five years in prison, a maximum of 40, and a $5,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the complaint, between the fall of 2013 and June 15, 2015, the defendants conspired to distribute heroin on the West Side of Buffalo. The investigation utilized court ordered wiretaps as well as undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.
According to the complaint, these 10 defendants were street-level distributors or “runners” in a heroin trafficking ring operated by Daniel Molina-Rios who was arrested in June 2015 along with Orlando Rios, Luis Montanez, and Jose Andujar. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.
DEA Special Agent in Charge James Hunt stated, “Heroin is the archenemy of public health in Buffalo. And this investigation is a reminder to the public that DEA and our law enforcement partners are putting everything on the line to identify those responsible for supplying our city with heroin, like the Molinas-Rio trafficking organization.” SAC Hunt commends the men and women of DEA Buffalo Resident Office, the New York State Police, the Buffalo Police Department and the US Attorney’s Office, Western District of New York, for their tenacious efforts throughout this investigation.
Seven of the 10 defendants were taken into custody and made initial appearances today before U.S. Magistrate Judge Jeremiah J. McCarthy. The seven defendants are being held pending detention hearings.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.
Wednesday 7 October 2015
Wellesley Executive Arrested for Million-Dollar EmbezzlementRead the Press Release
BOSTON – The former controller of a Cambridge-based technology company was arrested today for embezzling $1 million from the company.
Andy Kim, 43, of Wellesley, was arrested this morning and charged in a criminal complaint with one count of wire fraud. Kim had an initial appearance this afternoon before U.S. District Court Magistrate Judge M. Page Kelley.
According to the complaint, Kim worked at the company from 2004 until he was fired in July 2015 after the discovery of the theft. Kim allegedly stole $500,000 from the company on two separate occasions, once in July 2014 and again in June 2015. On both occasions, Kim, who as the company’s controller, had access to its checking account. He allegedly disguised the transactions as transfers of capital to the company’s owner, fabricated records that purported to document legitimate capital transfers, and then planted those records in the company’s files.
On both occasions, Kim allegedly wired the money to a bank account belonging to a Massachusetts real-estate investment company. After the fraudulent transfer in July 2014, the president of the real-estate company wrote Kim ten consecutively numbered checks, each for $50,000. Kim periodically deposited those checks into his personal checking account, and then transferred the money, in installments, to another bank account he controlled.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. This case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Villa Rica Man Indicted for Million Dollar Advance Fee Fraud SchemeRead the Press Release
ATLANTA - James Thomas has been arraigned on federal charges of wire fraud and money laundering arising from an alleged advance fee fraud scheme involving $1.7 million. Thomas was indicted by a federal grand jury on September 15, 2015.
“This defendant is charged with operating a sophisticated advance fee scheme that took advantage of individuals and businesses who had limited options for financing real estate deals after the recession of 2008,” said U.S. Attorney John Horn. “This case shows that consumers and small businesses must be careful about those with whom they enter business relationships, and should research beyond the information on websites.”
“It is our sincere hope that today's federal grand jury indictment will give the many victims involved in this matter assurance that their case will be heard. The FBI will continue to provide significant resources toward investigating and presenting for prosecution those individuals engaged in such wide spread fraud as is alleged in this case,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Between 2008 and 2011, Thomas portrayed his firm, Trilateral Capital and Development LLC (“Trilateral”), as a reputable and well established private equity company that had successfully loaned millions of dollars for real estate development projects. Trilateral’s website and marketing materials contained fraudulent misrepresentations about the firm’s past real estate deals. Thomas also misrepresented Trilateral’s finances and on least one occasion e-mailed a fraudulent bank statement purporting to show that Trilateral had over $1.6 million in one account.
Through this scheme, more than 20 individuals and companies from across the country and overseas provided Thomas with more than $1.7 million in advance fees for real estate loans that Thomas never provided. The indictment alleges that Thomas used the advance fees to pay himself and employees, take vacations, fund other business ventures and make charitable contributions.
James Thomas, 44, of Villa Rica, Ga., was arraigned before United States Magistrate Judge Linda T. Walker.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
USP Hazelton inmate guilty of assaulting fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal jury returned a guilty verdict today convicting Deonte Spicer, 28, an inmate at the United States Penitentiary Hazelton, of assaulting a fellow prisoner, United States Attorney William J. Ihlenfeld, II, announced.
Following a two day trial, a jury found Spicer guilty of one count of “Assault with a Dangerous Weapon with Intent to Do Bodily Harm.” Evidence presented at trial indicated that Spicer stabbed a fellow inmate multiple times with a hand crafted weapon during a physical altercation in February 2015.
Spicer faces up to 10 years in prison and a fine of up to $250,000. 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 defendant.
Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Federal Bureau of Prisons and the Special Investigative Services Unit at USP Hazelton investigated.
U.S. District Judge Irene M. Keeley presided.
U.S. Department of Justice Awards Grants to Iowa Law Enforcement to Combat CrimeRead the Press Release
CEDAR RAPIDS, IOWA—Since mid-September several Iowa law enforcement agencies have been awarded an Edward Byrne Memorial Justice Assistance Grant by the United States Department of Justice’s Office of Justice Programs (OJP). OJP provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the-art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. The following Iowa agencies receiving grant funding:
- The Dubuque Police Department was awarded $61,230 to develop, implement, and promote a Body Worn Camera (BWC) program designed to record law enforcement interaction with members of the community.
- The Fort Dodge Police Department and the Webster County Sheriff’s Office were awarded $18,176 to purchase equipment and expand training in officer safety and effective crime scene processing.
- The Sioux City Police Department and the Woodbury County Sheriff’s Office were awarded $19,910 and $19,911, respectively to support the Tri-State Drug Task Force, provide specialized training, and purchase updated equipment.
- The Cedar Rapids Police Department and the Linn County Sheriff’s Office were both awarded $23,190.50. The Police Department will use its grant money to purchase 28 BWCs. The Sheriff’s Office will use its grant money to purchase five mobile computers/tablets, which will increase deputy efficiency, accuracy and reduce on-air communications between dispatch and staff.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “These grants will support the common federal, state and local goal of strengthening and improving law enforcement skills, capabilities, and procedures.”
OJP works in partnership with the justice community to identify the most pressing crime-related challenges confronting the justice system and provides information, training, coordination, and innovative strategies and approaches for addressing these challenges. Learn more about the Office of Justice Programs at: http://ojp.gov/.
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U.S. Attorney Announces New Civil Rights Practice and ADA Restaurant InitiativeRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (USAO-SDTX) has established a new Civil Rights Section within its Civil Division that will have the authority to investigate and to remedy civil rights violations within the district, announced U.S. Attorney Kenneth Magidson. This section will be separate from what is handled by Criminal - Civil Rights and will welcome information from the public that brings to its attention possible violations of our nation’s civil rights laws.
The Civil – Civil Rights Section will civilly enforce federal civil rights laws including the Fair Housing Act, Equal Credit Opportunity Act, Religious Land Use and Institutionalized Persons Act, Servicemembers Civil Relief Act, Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964 and the Uniformed Services Employment and Reemployment Rights Act. Civil remedies under these statutes include monetary penalties, injunctions, civil judgments and more.
Coinciding with the 25th Anniversary of the Americans with Disabilities Act of 1990 (ADA), the newly created Civil Rights Section is conducting a review of 25 of Houston’s most popular restaurants to determine if they are in compliance with the ADA. The ADA prohibits discrimination on the basis of disability by places of public accommodation, including restaurants, and requires such places to be designed, constructed and altered in compliance with the accessibility standards established by the ADA’s implementing regulations.
This initiative is in accordance with the Department of Justice’s congressionally-mandated responsibility to review compliance with the ADA and is not in response to any specific complaint against a restaurant. USAO-SDTX objectively selected the restaurants using recent third-party restaurant rankings to review 25 of Houston’s most popular and frequented restaurants.
As part of the review, restaurants will be asked to complete a survey regarding accessibility. Investigators may then conduct on-site inspections to confirm survey responses and to evaluate compliance with federal ADA regulations. Restaurants found to be non-compliant will have the option of entering into a Voluntary Compliance Agreement in which they agree to upgrade their facilities to meet ADA requirements. Restaurants found to be engaging in a pattern or practice of discrimination or failing to enter into an agreement may face a civil lawsuit and can also be subject to monetary penalties and civil fines.
“The ADA is the cornerstone of civil rights for people living with disabilities, and restaurants are required to comply with its accessibility provisions,” said Magidson. “We will take all reasonable steps within our authority to ensure that non-compliant restaurants make the necessary changes, rather than face litigation. Our goal is not to take a heavy-handed approach to this initiative, but to work with the restaurants to bring them into compliance, so that the entire community can enjoy access to the restaurants.”
In conjunction with the establishment of the new Civil Rights Section within the USAO-SDTX Civil Division, the U.S. Attorney’s Office also hosted a Civil Rights Symposium today. The purpose of the event was to discuss the nation’s federal civil rights laws in the areas of disability, housing and education, and highlight the role of the U.S. Attorney’s Office in ensuring compliance and effective monitoring in the areas of affirmative civil rights enforcement. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. District Judge Keith P. Ellison were the featured speakers and addressed civil rights enforcement and a judicial perspective of the enforcement of voting rights, respectively.
Other presentations from various Department of Justice personnel included such areas as disability rights laws and enforcement; discrimination in access to housing, credit and public accommodations; equal educational opportunities; and improving local communities through an active civil rights practice.
Organizations invited to attend included members of the American Civil Liberties Union, City of Houston, Disability Rights Texas, Houston Center for Independent Living, Houston Volunteer Lawyers, Lambda Legal, Leadership for Educational Equality, League of United Latin American Citizens, Lone Star Legal Aid, Mexican American Legal Defense and Educational Fund, National Association for the Advancement of Colored People, South Texas Civil Rights Project, Texas Civil Rights Project, Texas Department of Assistive and Rehabilitative Services, Department of Housing and Urban Development, Department of Education - Civil Rights, Teach for America, Texas Appleseed, Texas Paralyzed Veterans and Texas Wins.
Participants were also able to raise questions or concerns regarding civil rights issues in the Southern District of Texas.
U.S. Attorney Announces Criminal Securities Fraud Charges Against Swisher Hygiene, Inc. and Former Senior-level Corporate AccountantRead the Press Release
CHARLOTTE, N.C. – Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina, announced the filing of criminal charges against Swisher Hygiene, Inc. (“Swisher”) and a former senior-level corporate accounting employee in connection with accounting fraud at Swisher. Joining in the announcement is John A. Strong, Special Agent in Charge of the FBI in North Carolina. The criminal charges relate to Swisher’s scheme to defraud the investing public by materially misrepresenting Swisher’s financial position throughout fiscal year 2011.
U.S. Attorney Rose also announced that Swisher, a publicly-traded hygiene and sanitation solutions company based in Charlotte, has entered into a deferred prosecution agreement with the government, in which it accepts responsibility for the accounting fraud scheme and agrees to pay a $2 million monetary penalty.
Former senior-level corporate accounting employee John Pierrard, 49, of Delray Beach, Florida, has also agreed to plead guilty for his role in Swisher’s scheme to manipulate its books and records to fraudulently inflate reported earnings.
“Our financial markets depend on corporate executives and employees honestly reporting their financial results. When they fail to do so, we all suffer. Today’s filings make clear that my Office will continue to work tirelessly to root out financial fraud. And, we will continue to hold criminally responsible both corporations and the individuals who run and work at those corporations when they cook the books. The investing public deserves nothing less,” said U.S. Attorney Rose.
“When companies fraudulently misrepresent their earnings and overall financial strength through illicit accounting practices, not only do shareholders suffer, but the integrity of our financial market is put at risk. Corporate fraud at any level will not be tolerated,” said FBI’s Special Agent in Charge Strong.
According to the bills of information filed for both Swisher and Pierrard, the purpose of the accounting fraud scheme was to ensure that Swisher consistently reported that its adjusted earnings had met or exceeded executive management’s forecasts and to conceal the existence of the fraud from, among others, its auditors, the financial institution with which it had an ongoing credit agreement and the investing public.
According to court filings, when adjusted earnings were falling short of the target, Swisher and its conspirators used various methods to fraudulently manipulate the books and records in order to hit certain adjusted earnings targets. For example, court documents show that in some instances Swisher took expenses that were supposed to be booked to Swisher’s profit and loss statement and moved them to the balance sheet, fraudulently reducing expenses and thereby increasing income. In other examples, when acquiring companies, Swisher inflated certain liabilities that were established for contingent earn-outs, and then fraudulently reduced those liabilities, resulting in increased income. In other instances, court documents show that Swisher engaged in what is commonly referred to as “cookie jar” accounting, by inflating reserves during the process of acquiring other businesses and then fraudulently reducing those reserves and increasing income. For example, according to court filings, as part of the process of closing the books for the third quarter of fiscal year 2011, Swisher made several fraudulent entries in its books and records on a Saturday, weeks into the close process, increasing in one day its September adjusted “earnings” from $2.4 million to $3.5 million.
According to filed documents, the accounting fraud scheme began to unravel when a Swisher employee, identified as Executive A, fired the Controller after he refused to book a fraudulent entry. When the Controller’s allegations were brought to the attention of Swisher’s Audit Committee approximately a month later, it promptly commissioned an independent internal investigation.
The filed bill of information for Pierrard also describes a conspiracy to obstruct justice by misleading the investigators Swisher retained to conduct the independent investigation into the allegations of accounting fraud. Charging documents filed against Swisher and Pierrard note that during the ensuing audit committee investigation executives provided false and/or misleading information in an effort to cover up the accounting fraud scheme.
In the deferred prosecution agreement, Swisher accepts and acknowledges responsibility for the conduct of its former employees as described in the bills of information and agrees to cooperate fully with the United States in its continuing investigation of the fraud. The agreement also recognizes Swisher’s substantial cooperation with the United States to date, including the steps promptly taken by the audit committee upon discovery of the unlawful conduct to thoroughly investigate the unlawful conduct, to take remedial measures to address the unlawful conduct and to minimize the chance that such unlawful conduct would reoccur, as set forth in more detail in the agreement.
In the agreement, Swisher also agrees to pay a $2 million financial penalty, such penalty reflecting the fact that Swisher’s auditors have noted a substantial doubt that the Company’s ability to continue as a going concern and the concern that a greater fine would jeopardize the solvency of the company and put at risk the employment of its approximately 1,000 employees who were not involved in the wrong-doing.
Both bills of information charge one count of conspiracy to commit securities fraud, to falsify books, records, and accounts of Swisher, and to make misleading statements to Swisher’s auditors and accountants. Pierrard faces a maximum prison term of five years for the conspiracy charge. In determining a defendant’s actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide advisory sentencing ranges. A plea agreement for Pierrard was also filed today and he is expected to appear before a U.S. magistrate judge to formally enter his guilty plea when the hearing is scheduled by the Court.
U.S. Attorney Rose praised the FBI for its outstanding work in leading the ongoing investigation that resulted in the filing of these charges. She also thanked the U.S. Securities & Exchange Commission for their assistance in the investigation.
Assistant U.S. Attorneys Mark T. Odulio and Maria K. Vento of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Two Remaining Defendants Admit to Kidnapping of Jewelry Store EmployeeRead the Press Release
PHILADELPHIA - Salahudin Shaheed, 35, and Basil Buie, 24, both of Philadelphia, PA, pleaded guilty today to their roles in a botched robbery and kidnapping that involved a jewelry store employee. Both defendants pleaded guilty today to conspiracy, kidnapping, and attempted Hobbs Act robbery. A third defendant, Khayree Gay, pleaded guilty earlier. A sentencing hearing for Buie and Shaheed is scheduled for January 2016.
Shaheed recruited defendants Gay and Buie, a/k/a “Basil Tucker,” to rob National Watch and Diamond Exchange, at 101 S. 8th Street in Philadelphia to obtain luxury watches, jewelry, and money which Shaheed said could be found there. The defendants conducted surveillance of National Watch and its employees from a parking lot at 733 Chestnut Street, to identify and then, in disguise, abduct an employee from whom they would forcibly obtain keys, security codes, and the code to the company’s safe from which the robbers would steal luxury watches, jewelry, and money.
On April 4, 2015, the defendants watched an employee that Shaheed had targeted. When the employee entered the garage and approached her car, Shaheed and Buie, wearing masks, gloves, and sunglasses, confronted the victim, Shaheed assaulted her with a Taser, and they kidnapped her.
Each defendant faces a maximum possible statutory sentence of life in prison, five years of supervised release, a fine of up to $750,000, and a $300 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorneys Jeanine Linehan and Maureen McCartney.
Two Long Island Men Arrested for Defrauding Homeowners in Loan Modification SchemeRead the Press Release
An eleven-count indictment was unsealed today in United States District Court for the Eastern District of New York charging David Gotterup, also known as “David Gott,” and Jason Green with conspiracy to commit mail fraud, wire fraud, and bank fraud in connection with a scheme to defraud homeowners who were attempting to modify their mortgage loans, and related mail fraud counts. The indictment also charged Gotterup with conspiracy to commit wire and bank fraud in connection with a scheme to improperly obtain mortgage loans, and related bank fraud counts, disaster loan fraud, and aggravated identity theft.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD/OIG); and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
According to court filings, from 2008 to 2012, Gotterup and Green defrauded distressed homeowners who were seeking relief through government mortgage modification programs by convincing more than a thousand homeowners to pay thousands of dollars each in advance fees based on false promises. Gotterup also defrauded financial institutions and the Federal Housing Administration by obtaining mortgages on properties in Brooklyn and Queens by falsifying loan applications and providing false documentation to support the loan applications. In addition, Gotterup used another person’s social security number in connection with these schemes.
After Hurricane Sandy in 2012, Gotterup also applied for a low-interest disaster relief loan from the U.S. Small Business Administration (SBA), allegedly using false information to support the application. As a result, Gotterup received a loan of $113,900 from the SBA. Instead of using the funds to repair property damaged in the disaster, Gotterup used the money to pay for personal expenses, including wedding-related expenses in Cancun, Mexico.
“These men defrauded distressed homeowners and banks to line their pockets,” stated Acting United States Attorney Currie. “We are committed to ending these types of predatory fraud schemes.” Mr. Currie thanked the U.S. Small Business Administration and the Staten Island District Attorney’s Office for its assistance.
“The charges announced today describe a scheme in which the defendants allegedly benefitted from fraudulently obtained proceeds while the cost was transferred to ordinary citizens seeking financial assistance. They are alleged to have simultaneously defrauded the government by unjustly obtaining disaster relief benefits. Today our message is clear: those who exploit gaps in the mortgage industry, banking sector, and government assistance programs will be made to face the error of their ways,” stated FBI Assistant Director-in-Charge Rodriguez.
“We want to send a message to the real estate industry that my office, along with our law enforcement partners, will expend every resource to fight the growing trend of foreclosure rescue frauds, short sale frauds, and disaster-related frauds that ultimately victimize our struggling homeowners and the U.S. taxpayer,” said HUD OIG Special Agent-in-Charge Scaringi.
“Earlier today SIGTARP agents along with other law enforcement agents arrested Jason Green and David Gotterup, who are charged with a scheme in which they allegedly took advantage of homeowners devastated by the financial crisis by fraudulently misleading those seeking assistance through government mortgage modification programs, including HAMP,” said Special Inspector General Romero for the Troubled Asset Relief Program (SIGTARP). “Gotterup and Green purportedly took thousands of dollars in upfront fees from homeowners, making false promises to provide mortgage modification services. Homeowners were led to believe that they had retained the legal services of an attorney who would handle the application and negotiations with their banks but in reality little or nothing was done to modify their mortgages. SIGTARP will continue to aggressively pursue those who commit TARP-related crimes.”
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Orenstein at the federal courthouse in Brooklyn. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Unit. Assistant United States Attorneys Sylvia Shweder and Bonni Perlin are in charge of the prosecution.
The Defendants:
DAVID GOTTERUP
Age: 35
Oceanside, NYJASON GREEN
Age: 35
Oceanside, NYE.D.N.Y. Docket No. 15-CR-498
Thirteenth Defendant Pleads Guilty to Springfield Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to his role in a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Travis L. Ashmead, 30, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to making a false and fraudulent income tax return.
Co-defendant Cherie Christine Dupuis, 43, of Springfield, pleaded guilty on July 21, 2015, to leading the fraudulent tax return preparation conspiracy. Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
For the 2009 and 2010 tax years, Ashmead knowingly aided and abetted Dupuis, and was aided and abetted by Dupuis, in the filing of false federal income tax returns with the IRS, claiming tax refunds to which Ashmead knew he was not entitled. Ashmead provided his personal information to Dupuis, which Dupuis then used to file false income tax returns.
Ashmead admitted that he filed false federal income tax returns for the 2009 and 2010 tax years that falsely listed wages that had not been earned and federal income tax withholdings that had not been withheld. Ashmead fraudulently claimed a refund of $10,343 for the 2009 tax year, but the IRS stopped the refund before it was issued, resulting in no loss to the U.S. Treasury. Ashmead received a fraudulent refund of $10,234 for the 2010 tax year, resulting in a loss to the U.S. Treasury.
Ashmead is the final defendant to plead guilty among 13 co-defendants. In addition to Dupuis, co-defendants Lisa Lorre DeHaven, 34, Claudia Dorsey, 33, Amanda Leigh Boyd, 33, Johnny L. Cooper, 28, and Jeannie Marie Rhodes, 34, all of Springfield; Shawna Marie Hughey, 37, of Joplin, Mo., formerly of Springfield; Heather Nicole Drennen, 32, of Cameron, Mo., formerly of Springfield; William J. Coonce, 29, of Otterville, Mo.; Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield; Asia Michelle Couchman, 26, of Oak Grove, Mo.; and Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield; have also pleaded guilty.
Under federal statutes, Ashmead is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Texas Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
Stacy L. Harden, 42, of Desoto, Texas, pled guilty in federal district court, in East St. Louis, Illinois, on October 6, 2015, to one count of Possession with Intent to Distribute Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Harden is scheduled for sentencing on January 22, 2016, at 9 a.m. before the Honorable David R. Herndon. Harden faces a potential sentence of a minimum of 10 years to life in prison, a fine of up to $10,000,000, not more than 5 years of supervised release after his prison term, and a mandatory special assessment of $100.
Court proceedings revealed on October 21, 2010, a confidential informant told DEA agents that Harden was in the St. Louis area with a large amount of cocaine for sale. DEA Agents tracked Harden down and on October 22, 2010, observed Harden leave an O’Fallon home with a plastic shopping bag. Harden then went to another residence in Swansea, Illinois, where he left with a black bag. Shortly thereafter, the Fairview Heights police department conducted a traffic stop on Harden at the direction of DEA agents. Harden sped off, driving into a residential area and throwing items out of the window, as witnessed by officers. Approximately 4 kilograms of cocaine were seized by officers. Harden was placed under arrest and later admitted to possessing a total of 7 kilograms of cocaine.
The investigation has been conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmount City Police Department, Collinsville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case is assigned to Assistant United States Attorney Daniel T. Kapsak.
Stoughton Man Charged for Sending Bomb Threats to SchoolsRead the Press Release
BOSTON – A Stoughton man was arrested and will appear in U.S. District Court in Boston today to face federal charges for sending multiple false bomb threats to schools in Illinois, Massachusetts, Rhode Island, and North Carolina.
Anthony Rae, 24, was charged via criminal complaint with bomb threats. Rae had previously been charged in Dedham District Court; however, those charges were dismissed today and he was taken into federal custody. Rae is scheduled to appear before U.S. Magistrate Judge David H. Hennessy in Boston at 2:15.
According to the complaint, Rae used three different email accounts to send bomb threats to educational institutions in four different states over the past year. Rae allegedly began in October 2014 when he sent two emails from a Gmail account he created threatening to bomb an elementary school in Chicago, Ill., and several public schools in Norwood, Mass. After that, Rae allegedly hacked his mother’s Hotmail account and used it to send two separate bomb threats to his own school – ITT Technical Institute in Norwood.
A search warrant was obtained for Rae’s residence and numerous electronic devices were seized. The following day, Rae allegedly used a public computer available to tenants of his apartment complex to continue his bomb threat spree – sending a bomb threat to Rhode Island College in Providence, R.I. Massachusetts authorities arrested Rae on June 19, 2015, and charged him with the three Massachusetts threats. Rae was released on conditions, which included prohibitions on the use of electronic devices and GPS monitoring. Despite the strict conditions of release, in September 2015, Rae created another Gmail account and threatened to bomb North Carolina State University in Raleigh, N.C.
The charging statute provides a sentence of no greater than 10 years in prison, three years supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. This case was also investigated the Chicago Police Department – Arson Section, Norwood, and Stoughton Police Departments, Rhode Island State Police Computer Crimes Unit, and the Rhode Island College and North Carolina State University Campus Police Departments. Significant assistance was also provided by the Massachusetts MetroLEC Cyber Crimes Unit and the Norfolk District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Sherman Man Admits Role in Steroid Manufacturing and Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL D. MASE, 32, of Sherman, pleaded guilty yesterday in Hartford federal court to one count of conspiracy to distribute anabolic steroids.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that individuals were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone.
During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and four long guns.
In pleading guilty, MASE, a registered nurse and a body-builder, admitted that he purchased anabolic steroids from another member of the conspiracy and distributed them to others, including athletes who competed in body-building competitions.
MASE is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 23, 2015, at which time he faces a maximum term of imprisonment of 10 years.
MASE was arrested on April 29, 2015, and is released on a $100,000 bond.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Serenity Hospice and Palliative Care to Pay $2.2 Million to Resolve False Claims AllegationsRead the Press Release
PHOENIX – Serenity Hospice and Palliative Care, a hospice operating in Phoenix, Ariz., has agreed to pay $2.2 million to resolve civil allegations that it violated the federal False Claims Act by submitting false bills to Medicare for hospice services.
“The Medicare hospice benefit is intended for terminally ill patients who need end-of-life care,” said United States Attorney John S. Leonardo. “The U.S. Attorney’s Office will continue to use all legal means at its disposal to ensure that this benefit is not misused for anything other than providing hospice care for qualified patients at the appropriate level of care.”
“Being a hospice provider in the Medicare program is a privilege, not a right. Hospice providers and executives that seek to boost profits by providing hospice services to Medicare beneficiaries whose medical condition does not warrant hospice care compromise both the health of its patients as well as the integrity of Medicare,” said Christian J. Schrank, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency will continue to hold such hospice providers accountable for their actions.”
The Medicare hospice benefit is available for patients who elect palliative care (medical care focused on providing patients with relief from pain, symptoms, or stress) for a terminal illness and who have a life expectancy of six months or less if their illness runs its normal course. When a Medicare patient is admitted to hospice, that individual is no longer entitled to Medicare coverage for care designed to cure his or her illness. The settlement agreement resolves allegations that Serenity knowingly submitted false claims for payment to Medicare for hospice patients. In addition to agreeing to pay $2.2 million, Serenity agreed to enter a five-year corporate integrity agreement with the United States Department of Health and Human Services, Office of the Inspector General. Finally, Ruth Siegel, a former nurse and the founder and former president of Serenity, also agreed to be excluded from Medicare, Medicaid, and all other federal health care programs for five years, effective immediately.
The settlement is neither an admission of liability by Serenity nor a concession by the United States that its claims are not well founded.
The settlement resolves a lawsuit filed in February 2014 by Cheryl Sifford under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case was filed in the United States District Court for the District of Arizona and is captioned United States ex rel. Sifford v. Serenity Hospice and Palliative Care (CV-14-00225-PHX-GMS). Ms. Sifford will receive a share of the settlement payment that resolves the qui tam suit she filed.
The case was handled by the United States Attorney’s Office for the District of Arizona and the United States Department of Health and Human Services, Office of Inspector General.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office through the office’s website, http://www.justice.gov/usao/az/, or by calling (602) 514-7500.
RELEASE NUMBER: 2015-097_Serenity
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Seekonk Man Charged with Possession of Child PornographyRead the Press Release
BOSTON – A Seekonk man was arrested today and charged in U.S. District Court in Boston with possession of child pornography.
Sean J. Trahan, 38, was charged in a criminal complaint with one count of possession of child pornography. Trahan was held today pending a probable cause and detention hearing on Oct. 16, 2015, before U.S. District Court Magistrate Judge Donald L. Cabell.
According to the complaint, on Oct. 7, 2015, a search warrant was executed at Trahan’s residence in Seekonk. During the search, a personal computer that contained images of child pornography was seized. During an interview with law enforcement, Trahan stated that he had accessed sites containing child pornography, and that he had been previously convicted of possessing child pornography.
The charge of possessing child pornography provides for a mandatory minimum sentence of 10 years and no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Seekonk Police Chief Craig A. Mace, made the announcement today. This case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
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/.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
San Antonio Man Sentenced to 262 Months in Federal Prison for Transportation of a Minor with Intent to Engage in Sexual ActivityRead the Press Release
In San Antonio today, 31-year-old George Alexander Martinez was sentenced to 262 months in federal prison followed by a lifetime of supervised release for transportation of a minor for the purpose of engaging in sexual activity announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Acting Special Agent in Charge Mark Dawson.
On March 6, 2014, Martinez pleaded guilty to the charge admitting that in October 2012, he transported a 15-year-old female from San Antonio to Southbend, Indiana. While in Indiana, Martinez, admittedly, engaged in sexual conduct with his victim on several occasions and even assaulted her.
Martinez has remained in federal custody since being arrested by HSI agents in San Antonio on February 14, 2014.
“The sentence handed down today should send a clear message to those who contemplate doing harm to minors in this way,” said Acting Special Agent in Charge Mark Dawson, HSI San Antonio. “HSI will continue to work with our law enforcement partners to ensure that those who commit these heinous crimes are held accountable for their actions.”
This case was investigated by HSI and prosecuted by Assistant United States Attorney Bettina Richardson.
Real Estate Investor Pleads Guilty to Bid Rigging and Fraud Conspiracies at Georgia Public Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Fulton and DeKalb counties, Georgia.
Morris Podber admitted that he conspired with others not to bid against one another at public real estate foreclosure auctions on selected properties. After the public foreclosure auctions, Podber admitted that he and his co-conspirators would divvy up the targeted properties in private side auctions, open only to the conspirators. Podber admitted to conspiring to use the mail to carry out their fraud, which included making and receiving payoffs and diverting money to co-conspirators that should have gone to the mortgage holders and others.
“This is the ninth real estate investor held accountable for bid rigging at public foreclosure auctions in Georgia,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “We will continue to root out anticompetitive conduct at foreclosure auctions and obtain justice for homeowners and lenders.”
According to documents filed with the court, the purpose of the conspiracies was to suppress and restrain competition and divert money to the conspirators that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner. Podber admitted to participating in a conspiracy in Fulton County from July 2005 until August 2010; and to participating in a conspiracy in DeKalb County from October 2006 to August 2011.
“Incidents of bid rigging at public real estate auctions continue to be an issue in Georgia and elsewhere in the United States, and the FBI would like to remind the public that such matters are violations of federal law,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “The FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying, investigating and prosecuting those individuals engaged in such activities.”
The ongoing investigation is being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.htm.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov.