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19 November 2015
Justice Department Sues Three Michigan Apartment Complexes for Discriminating Against Families with ChildrenRead the Press Release
The Justice Department today filed a lawsuit against the owners and manager of three Michigan apartment complexes – Parkside East Apartments, in East Lansing, Michigan, Holt Manor Apartments in Holt, Michigan, and Kelly Manor Apartments in Owosso, Michigan – for discriminating against families with children.
The lawsuit, filed in the Eastern District of Michigan in Detroit, alleges that the defendants refused to allow children in Parkside East, which consists of 41 one-bedroom apartments, and also refused to allow children in the one bedroom apartments at Holt Manor and Kelly Manor. At Holt Manor, 23 of the 27 apartments are one-bedroom apartments. At Kelly Manor, 17 of the 25 apartments are one-bedroom apartments. The suit names as defendants the Bloomfield Hills, Michigan-based corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc., and Kelly Manor Inc., as well as Bloomfield Hills resident Sudi Hopper, who serves as the rental agent for the three properties.
The allegations are based on evidence collected by the Fair Housing Center of Southeastern Michigan, based in Ypsilanti, Michigan, which had testers posing as prospective residents contact the defendants’ offices and speak with Hopper about renting a one-bedroom apartment. The testing revealed that Hopper did not allow single parent households with a minor child to live in a one-bedroom apartment, but did allow households with two adults to rent such an apartment.
“Although housing discrimination against families with children has been illegal under the Fair Housing Act for more than 25 years, too many families still face such discrimination when they look for housing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of these families.”
“The Fair Housing Act gives parents the right to decide what type of apartment is appropriate for their families,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It is unlawful for landlords to substitute their judgment for that of a parent, and to turn people away from a one-bedroom apartment simply because they have a child. We hope that this complaint sends a message to landlords and renters that we are prepared to defend the rights of all families to fair treatment in housing.”
“The U.S. Department of Justice is committed to protecting the rights of Americans,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan. “We will continue to fight illegal discrimination and ensure the fair housing rights of families wherever they are challenged.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who may have information related to this lawsuit should contact the Justice Department toll-free at 1-800-896-7743, mailbox number 93, or e-mail the Justice Department at [email protected].
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.usdoj.gov/crt/housing or www.hud.gov/fairhousing.
Parkside East Complaint
Justice Department Sues Three Michigan Apartment Complexes for Discriminating Against Families with ChildrenRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against the owners and manager of three Michigan apartment complexes – Parkside East Apartments, in East Lansing, Michigan, Holt Manor Apartments in Holt, Michigan, and Kelly Manor Apartments in Owosso, Michigan – for discriminating against families with children.
The lawsuit, filed in the Eastern District of Michigan in Detroit, alleges that the defendants refused to allow children in Parkside East, which consists of 41 one-bedroom apartments, and also refused to allow children in the one bedroom apartments at Holt Manor and Kelly Manor. At Holt Manor, 23 of the 27 apartments are one-bedroom apartments. At Kelly Manor, 17 of the 25 apartments are one-bedroom apartments. The suit names as defendants the Bloomfield Hills, Michigan-based corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc., and Kelly Manor Inc., as well as Bloomfield Hills resident Sudi Hopper, who serves as the rental agent for the three properties.
The allegations are based on evidence collected by the Fair Housing Center of Southeastern Michigan, based in Ypsilanti, Michigan, which had testers posing as prospective residents contact the defendants’ offices and speak with Hopper about renting a one-bedroom apartment. The testing revealed that Hopper did not allow single parent households with a minor child to live in a one-bedroom apartment, but did allow households with two adults to rent such an apartment.
“Although housing discrimination against families with children has been illegal under the Fair Housing Act for more than 25 years, too many families still face such discrimination when they look for housing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of these families.”
“The Fair Housing Act gives parents the right to decide what type of apartment is appropriate for their families,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “It is unlawful for landlords to substitute their judgment for that of a parent, and to turn people away from a one-bedroom apartment simply because they have a child. We hope that this complaint sends a message to landlords and renters that we are prepared to defend the rights of all families to fair treatment in housing.”
“The U.S. Department of Justice is committed to protecting the rights of Americans,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan. “We will continue to fight illegal discrimination and ensure the fair housing rights of families wherever they are challenged.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who may have information related to this lawsuit should contact the Justice Department toll-free at 1-800-896-7743, mailbox number 93, or e-mail the Justice Department at [email protected].
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt/housing-and-civil-enforcement-section. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at http://www.justice.gov/crt/housing-and-civil-enforcement-section or www.hud.gov/fairhousing.
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Justice Department Settles Immigration-Related Discrimination Claim Against McDonald’sRead the Press Release
The Justice Department announced today that it reached a settlement with McDonald’s USA LLC and its corporate affiliates and subsidiaries (McDonald’s) resolving allegations that McDonald’s discriminated against immigrant employees of McDonald’s-owned restaurants.
The department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) opened its investigation based on information received on its worker hotline. The investigation found that McDonald’s had a longstanding practice of requiring lawful permanent residents to show a new permanent resident card when their original document expired, even though the law prohibits this practice. The investigation further found that the company did not make the equivalent request to its U.S. citizen employees who showed documents that later expired, and that those lawful permanent residents who were asked and could not provide a new card were not allowed to work, some even losing their jobs as a result. This investigation and today’s settlement agreement only address actions by McDonald’s, not its franchises.
“Employers cannot hold lawful permanent residents to a higher standard by placing additional documentary burdens upon them during the employment eligibility verification process,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Requiring unnecessary documentation of individuals based on their citizenship or immigration status is discriminatory, and the Department of Justice will not hesitate to enforce the law and protect the rights of work-authorized immigrants. We commend McDonald’s for its cooperation throughout this investigation and for committing to compensate its current and former employees who lost wages due to these practices.”
Lawful permanent residents have authorization to live and work in the United States on a permanent basis. As proof of that status, a lawful permanent resident receives a permanent resident card, commonly called a “Green Card,” but lawful permanent residents are eligible for multiple documents that show their eligibility to work. Lawful permanent residents do not have to show their permanent resident cards when they start working. Like all workers, they can choose whatever valid documentation they want to establish their employment authorization. While most permanent resident cards contain an expiration date, as a general matter, card holders have permanent work authorization so the expiration of the card does not mean they lose their right to work or their status. Lawful permanent residents who decide to show an unexpired permanent resident card are not required to present any additional documentation when their card expires, and employers cannot request additional documents from them. Moreover, the anti-discrimination provision of the Immigration and Nationality Act (INA) prohibits employers from placing additional documentary burdens on work-authorized employees during the employment eligibility verification process because of their citizenship or immigration status.
Under the settlement agreement, McDonald’s will pay $355,000 in civil penalties to the United States, undergo monitoring for 20 months and train its employees on the INA’s anti-discrimination provision.
The settlement agreement also requires McDonald’s to compensate lawful permanent resident employees of McDonald’s-owned restaurants who lost work or lost their jobs due to these documentary practices. Lawful permanent residents who worked for a corporate-owned McDonald’s location (not a franchise) between Sept. 23, 2012, and March 1, 2015, may be eligible for compensation if they were fired or forced to miss work because they could not show a new card when their permanent resident card was set to expire. More information on the process for obtaining back wages is found in the settlement agreement’s claims procedure http://www.justice.gov/crt/united-states-department-justice-settlement-mcdonald-s-usa-llc.
Current and former McDonald’s employees with questions about this matter may call 1-844-401-3737 or email [email protected].
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; discrimination in the employment eligibility verification process; retaliation; and intimidation. Trial Attorneys Jennifer Deines and Silvia Dominguez-Reese and Equal Opportunity Specialist Joann Sazama of the Civil Rights Division worked on this case.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
McDonald's Settlement Agreement
Justice Department Announces Three Banks Reach Resolutions Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that BNP Paribas (Suisse) SA (BNPP), KBL (Switzerland) Ltd. (KBL Switzerland) and Bank CIC have reached resolutions under the department’s Swiss Bank Program. These banks will collectively pay penalties totaling more than $81 million and continue to cooperate with the department.
“As reflected in today’s agreements, we continue to shine a bright light on the individuals and institutions that have used so-called ‘secret Swiss bank accounts’ to engage in and assist U.S. tax evasion,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “The department, working hand in hand with the IRS, is actively pursuing criminal and civil cases against those engaged in such conduct.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
BNPP has had a presence in Switzerland since 1872. BNPP is headquartered in Geneva, Switzerland, and has branches in Zurich, Basel and Lugano, Switzerland. In 2008, BNP Paribas Bank Group agreed to acquire the worldwide operations of Fortis Bank, which was at the time the largest bank in Belgium. This merger closed in May 2010, and its terms required BNPP to absorb Fortis Banque (Suisse) SA.
BNPP opened and maintained accounts for U.S. taxpayers in the name of non-U.S. corporations, foundations, trusts or other legal entities, in which U.S. taxpayers concealed their beneficial ownership of the accounts. BNPP readily accepted accounts in which external trust companies created and administered offshore structures incorporated or based in offshore locations such as the British Virgin Islands, Panama, Liechtenstein and Liberia, for certain of BNPP’s U.S. clients. In certain instances, BNPP took instructions directly from U.S. beneficial owners with power of attorney over the account, including instructions for cash withdrawals, with the funds going directly to the true U.S. beneficial owner.
BNPP also has a Corporate and Institutional Banking (CIB) business line. CIB clients use the expertise of BNPP for specific commercial transactions, and CIB does not provide private banking services. CIB maintained a small number of U.S.-related accounts. In one case, a wealth management relationship manager omitted the existence of a CIB client’s U.S. passport in opening a wealth management account for that client.
Starting in 2003, BNPP issued a policy requiring U.S. residents opening new accounts to provide an IRS Form W-9 and certification that the person was aware of, and fully complied with, tax requirements pertaining to foreign accounts maintained by U.S. persons. BNPP also held mandatory training sessions in 2005 and 2007 to ensure that wealth management employees were aware of and followed its policies for U.S. persons. Despite these policies, BNPP disregarded evidence that many of the accounts were not in fact properly declared, facilitating the tax avoidance schemes of accountholders.
Certain employees of BNPP understood that certain U.S. taxpayers who maintained accounts at BNPP were not complying with their U.S. reporting obligations, and BNPP offered a variety of traditional Swiss banking services that it knew could assist, and did in fact assist, certain U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). For example, BNPP maintained 338 numbered accounts and agreed to hold bank statements and other mail.
BNPP also processed requests for cash withdrawals by U.S. taxpayers from accounts being closed. For example, in early 2012, after part of an account was transferred to a bank in Malaysia, a BNPP employee gave instructions for the withdrawal of the balance of the account in the amount of 238,000 Swiss francs. In November 2009, in light of BNPP’s policy that non-compliant U.S. accounts be closed, an accountholder received permission to withdraw $731,000 in cash, with several employees coordinating the withdrawal so that the accountholder need not “waste time at the cash desk.” And in August and September of 2009, after a BNPP employee informed an accountholder that BNPP had adopted a new U.S.-related account policy, the employee and accountholder agreed that the client would come to BNPP before Sept. 5, 2009, to withdraw the remaining account balance and close the account. Instructions were given to allow the client to withdraw $255,838, as well as 49,233 euros.
Throughout its participation in the Swiss Bank Program, BNPP provided full cooperation to the department. BNPP described in detail the structure of its U.S. cross-border business, including but not limited to the policies BNPP put in place to comply with U.S. law, a summary of the top 20 U.S.-related accounts by assets under management value, a redacted summary of external asset managers and relationship managers with U.S.-related accounts by assets under management and substantial information about U.S.-related accounts associated with external asset managers and relationship managers. BNPP provided a list of the names and functions of all individuals who structured, operated or supervised the cross-border business at BNPP and also provided relevant information concerning its relationship managers.
Since Aug. 1, 2008, BNPP held and managed approximately 760 U.S.-related accounts with a peak value of approximately $1.2 billion in assets under management. BNPP will pay a penalty of $59.783 million.
KBL Switzerland is based in Geneva, with branches in Zurich and Lugano, Switzerland. An additional branch located in Lausanne closed in 2014. KBL Switzerland implemented a strategy from 2009 through May 2010 that substantially sought to increase KBL Switzerland’s assets under management and the business that KBL Switzerland did with external asset managers. The implementation of this strategy led KBL Switzerland to open and maintain significant numbers of U.S.-related accounts, including some accounts for U.S. taxpayers who had been exited from UBS, Credit Suisse or other banks.
KBL Switzerland opened and maintained accounts for certain U.S. taxpayers in the names of corporations, foundations, trusts or other legal entities that were organized in non-U.S. jurisdictions, such as Panama, the British Virgin Islands or Liechtenstein. For many of these accounts, KBL Switzerland accepted IRS Forms W-8BEN or substitute forms that falsely represented that the legal entities that owned the structured accounts had no U.S. taxpayer beneficial owners. KBL Switzerland knew, or had reason to know, that the true beneficial owners of these accounts were U.S. taxpayers. KBL Switzerland also knew, or had reason to know, that certain of these U.S. taxpayers were utilizing the accounts for personal purposes without formal corporate authorization.
In one instance, a KBL Switzerland relationship manager assured a U.S. taxpayer client, who had not provided a Form W-9, that KBL Switzerland would not reveal his identity to the United States. In a separate instance, a different KBL Switzerland relationship manager assured a U.S. taxpayer client that, because of Swiss bank secrecy laws, Switzerland would not freely exchange account information with the United States. And in at least one instance, a KBL Switzerland relationship manager advised a U.S. taxpayer client to avoid bringing account information into the United States.
On the instructions of the U.S. taxpayer clients, KBL Switzerland moved or restructured the assets of U.S.-related accounts in ways that concealed the U.S. nature of those accounts. In late 2009 and early 2010, KBL Switzerland followed the instructions of two external asset managers, concerning four separate U.S.-related accounts that were directly held by U.S. taxpayer clients of KBL Switzerland, to restructure the assets of the accounts into new insurance-policy accounts. These insurance wrapper accounts were titled in the name of a Liechtenstein insurance company for the benefit of the same underlying U.S. taxpayer clients with the same underlying assets. Restructuring the form in which their assets were held at KBL Switzerland allowed these U.S. taxpayers to further hide their identities and undeclared accounts from the IRS and U.S. law enforcement.
In 2012, KBL Switzerland briefly implemented a flawed account closing policy that had the unintended effect of closing a number of U.S.-related accounts through substantial and/or successive asset withdrawals. In one of these instances, KBL Switzerland permitted a U.S. taxpayer client to close an account through a single cash withdrawal of nearly $2 million. In another one of these instances, KBL Switzerland allowed a U.S. taxpayer client to close a structured entity account by using assets in the account to purchase gold worth nearly $200,000, which the U.S. taxpayer client subsequently withdrew in closing the account.
On request of its clients, including undeclared U.S. taxpayers, KBL Switzerland provided Swiss travel cash cards issued by third parties. KBL Switzerland would fund these travel-cash cards with assets maintained in accounts belonging to U.S. taxpayer clients, which enabled U.S. taxpayer clients to access the assets of undeclared accounts wherever they chose, including in the United States. KBL Switzerland also permitted U.S. taxpayer clients to access and utilize the value of assets held in undeclared accounts through loans that were secured by their undeclared assets on deposit with KBL Switzerland.
KBL Switzerland committed to providing full cooperation to the U.S. government and has made timely and comprehensive disclosures regarding its U.S. cross-border business. Among other things, KBL Switzerland has described in detail the structure of its cross-border business for U.S.-related accounts including, but not limited to:
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The policies and lack of oversight that contributed to the misconduct committed by KBL Switzerland relationship managers and their supervisors;
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Data on desks and employees with elevated concentrations of U.S.-related accounts;
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Information on key external asset managers that had significant involvement with U.S.-related accounts;
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The names and positions of compliance officers and senior managers; and
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Written narratives on its largest and most problematic U.S.-related accounts.
Since Aug. 1, 2008, KBL Switzerland maintained 277 U.S.-related accounts having a maximum aggregate dollar value in excess of $255 million. KBL Switzerland will pay a penalty of $18.792 million.
Bank CIC is a subsidiary of the French financial group Crédit Mutuel-CIC, one of the largest banking groups in France. In addition to its main office in Basel, Bank CIC has eight branches, all in Switzerland: Lausanne, Zurich, Geneva, Lugano, Locarno, Neuchatel, Fribourg and Sion.
Although Bank CIC did not target U.S. taxpayer-clients, many of Bank CIC’s front-office personnel had some exposure to at least one or more U.S.-related accounts as part of their general client service functions. Periodically, U.S. clients were accepted as walk-ins or referred to Bank CIC by other clients.
Bank CIC offered a variety of traditional Swiss banking services, including hold mail and numbered accounts, that it knew or should have known could assist, and did in fact assist, U.S. clients in the concealment of assets and income from the IRS. A Bank CIC manager or relationship manager communicated with a U.S. taxpayer client through methods such as facsimile and calling prepaid mobile phones at the U.S. taxpayer-client’s request. Bank CIC also allowed accounts with U.S. beneficial owners to be held in the name of non-U.S. entities.
Since Aug. 1, 2008, Bank CIC had 261 U.S.-related accounts, comprising approximately $228 million in assets under management. Bank CIC will pay a penalty of $3.281 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today's resolutions with large and small financial institutions reflect the Swiss Bank Program’s continued success,” said acting Deputy Commissioner International David Horton of the IRS Large Business & International Division (LB&I). “Working with the Department of Justice, we will use the information received from these resolutions to track down U.S. taxpayers who sought to evade taxes by hiding their assets in offshore accounts.”
“The amount of money associated with each agreement is not insignificant, but even more significant is the amount of data that we will receive as a result of the Swiss Bank Program,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “At this point, we’ve already learned so much about the formerly hidden world of offshore banking. This information enables us to vigorously pursue noncompliant individual U.S. taxpayers and guides us in the development of innovative partnerships and methodologies to combat a wide variety of international tax evasion techniques.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and IRS LB&I for their substantial assistance. Ciraolo also thanked Carl D. Wasserman, Paul G. Galindo and Kaycee M. Sullivan, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Justice Department Announces Funding Opportunities for Federally-Recognized Tribes and Tribal ConsortiaRead the Press Release
Grants Available to Support Public Safety Projects in Indian Country
The U.S. Department of Justice today announced the opening of the grant solicitation period for comprehensive funding to American Indian and Alaska Native tribal governments and tribal consortia to support public safety, victim services and crime prevention improvements. The department’s Fiscal Year (FY) 2016 Coordinated Tribal Assistance Solicitation (CTAS) posts today at /media/1097216/dl?inline.
“Since 2010, the CTAS program has helped tribes develop their own comprehensive approaches to making their communities safer and healthier,” said Acting Associate Attorney General Stuart F. Delery. “CTAS grants have funded more than 1,400 programs to better serve crime victims, promote community policing and strengthen justice systems.
CTAS is administered by the Department of Justice’s Office of Justice Programs (OJP), including its Bureau of Justice Assistance (BJA), Office of Juvenile Justice and Delinquency Prevention (OJJDP) and the Office for Victims of Crime (OVC); and the Department of Jusitce’s Office of Community Oriented Policing Services (COPS) and Office on Violence Against Women (OVW). The funding can be used to enhance law enforcement, bolster adult and juvenile justice systems, prevent and control juvenile delinquency, serve native victims of crime including, child abuse, sexual assault, domestic violence and elder abuse victims; and support other efforts to combat crime.
Applications for CTAS are submitted through the Department of Justice’s Grants Management System (GMS), which enables grantees to register and apply for CTAS online. Applicants must register with GMS prior to submitting an application. The application deadline is Feb. 23, 2016, at 9:00 P.M. EST.
The FY 2016 CTAS reflects improvements and refinements from earlier versions. Feedback was provided to the department during tribal consultations and listening sessions, and survey assessments, which include tribal leaders’ requests to improve and simplify the department grant-making process. Changes to department grant programs, enacted with the passage of the Tribal Law and Order Act, are incorporated into the CTAS solicitation and in the appropriate purpose areas. More information about all changes to the FY 2016 CTAS Solicitation is available on the CTAS fact sheet at: /media/1097226/dl?inline.
For the FY 2016 CTAS, a tribe or tribal consortium will submit a single application and select from any or all of the nine competitive grant programs referred to as “purpose areas.” This approach allows the department’s grant-making components to consider the totality of a tribal nation’s overall public safety needs.
The nine purpose areas (PA) are:
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PA1 - Public Safety and Community Policing (COPS)
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PA2 - Comprehensive Tribal Justice Systems Strategic Planning (BJA)
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PA3 - Justice Systems and Alcohol and Substance Abuse (BJA)
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PA4 - Corrections and Correctional Alternatives (BJA)
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PA5 - Violence Against Women Tribal Governments Program (OVW)
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PA6 - Children’s Justice Act Partnerships for Indian Communities (OVC)
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PA7 - Comprehensive Tribal Victim Assistance Program (OVC)
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PA8 - Juvenile Justice Wellness Courts (OJJDP)
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PA9 - Tribal Youth Program (OJJDP)
Tribes or tribal consortia may also be eligible for non-tribal, government-specific (non-CTAS) federal grant programs and are encouraged to explore other funding opportunities for which they may be eligible. Additional funding information may be found at the Department of Justice’s Tribal Justice and Safety website at www.justice.gov/tribal or the www.grants.gov website.
Today’s announcement is part of the Department of Justice’s ongoing initiative to increase engagement, coordination and action on public safety in tribal communities.
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Jared S. Fogle sentenced in child pornography caseRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of Jared S. Fogle after being convicted of distributing and receiving child pornography and traveling in interstate commerce to engage in unlawful commercial sex acts with minors. Fogle, 38, of Zionsville, Indiana, was sentenced to 188 months (15 ½ years) in federal prison by U. S. District Judge Tanya Walton Pratt in federal court in Indianapolis.
“Earlier today, the Honorable Tanya Walton Pratt sentenced Jared S. Fogle to 188 months (15 ½ years) in prison. While no sentence will bring back the innocence or relieve the pain of Fogle’s victims, Judge Pratt properly rejected Fogle’s plea for a 5 year sentence and imposed an appropriate sentence of 15 and ½ years. My office works within the federal sentencing laws, and this community has my word that the law was followed today. Those who engage in child exploitation received a clear message today. If you engage in this conduct, you will be investigated, identified, and prosecuted, and you will go to prison.”
Minkler further stated, “my office will continue to protect victims of child exploitation through aggressive prosecution and a close working relationship with law enforcement.”
Between March 2001 and May 2015, Fogle received and viewed child pornography some given to him by his co-conspirator, Russell Taylor (federally charged separately, May 2015). Fogle did this to fuel his sexual fantasies involving children. The child pornography Fogle viewed included homemade material involving victims in Indiana as well as commercially produced files Taylor obtained through internet sources. Fogle knew that the children depicted in the homemade images or videos were under the age of 18 years. He also knew of Taylor’s family relationship or association with the victims, including in many instances, their actual names.
In November 2012, Fogle traveled to New York City and engaged in commercial sex with a 17 year old minor in a hotel there. After the encounter, he sent the victim text messages, offering to pay her a fee if she could find other underage girls to have sex with him. In January 2013, he returned to New York City and engaged in commercial sex with the same victim knowing she was under 18 years old. Fogle later returned to New York and engaged in commercial sex with yet another underage minor.
This case was the result of a joint federal, state and local investigation by the Indiana State Police, Indianapolis Police Department, Federal Bureau of Investigation and the Indiana Internet Crimes Against Children Task Force, with the assistance of the Marion County Prosecutor’s Office.
Indiana State Police Superintendent Doug Carter said, "The Jared Fogle chapter is now closed with the announcement of his sentencing and his removal from a free society. But, tragically, we know sexual crimes against children won't end; there are others who think they won't be caught. Carter concluded, "So with this announcement we also take the opportunity to encourage, in the strongest words possible, any past or current victims of unreported child sex crimes to seek help from law enforcement and bring these vile criminals to justice."
“In our society, children are our most precious resource,” said IMPD Chief Rick Hite. “It is our collective responsibility to protect them from predators and bring to justice anyone who causes them hurt, harm, or danger.”
“As with all child pornography cases, the FBI investigates these cases with a sense of urgency due to the extreme vulnerability of the victims involved; our children,” said FBI Special Agent in Charge, W. Jay Abbott. “This case demonstrates that commitment to investigate those who would possess child pornography. The FBI looks forward to continuing its work on such matters with the United States Attorney’s Office, the Indiana State Police and the Indianapolis Metropolitan Police Department.”
According to Senior Litigation Counsel Steven D. DeBrota, who is prosecuted the case for the government, Fogle must pay a $175,000 fine and serve a lifetime of supervised release after his sentence.
Fogle also agreed to pay a total of $1,400,000 in restitution to the 14 victims in the case, 8 of whom are still minors, and forfeit assets of $50,000. This is the largest amount of restitution ever ordered for a child pornography or sex trafficking case in the history of the Southern District of Indiana. The victims will be able to use these funds to pay for counseling and treatment to combat the debilitating life effects of these crimes.
Intoxicated Driver Pleads Guilty to Manslaughter in Fatal Car CrashRead the Press Release
Greenbelt, Maryland – Carlos Arnulfo Chacon Chacon, age 42, of Laurel, Maryland pleaded guilty today to charges arising from a fatal car crash in which the victim died after being in a coma for eight months.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to his plea agreement, at about midnight on February 1, 2014, Chacon Chacon was driving a Toyota Celica northbound on the Baltimore-Washington Parkway. Two motorists noticed that he was driving erratically, weaving across the road and leaving the travel lanes as he went onto the shoulder. They called 911. As one of the witnesses was speaking with the 911 operator, Chacon Chacon crashed his car into a Mitsubishi traveling northbound in the right lane, on a straight area of the highway.
The Mitsubishi went over a stone wall and then went airborne, striking a tree and causing its roof to collapse down into the passenger compartment. Chacon Chacon’s car struck the stone wall, spun around, and struck the stone wall a second time, finally coming to rest partially in the highway, perpendicular to oncoming traffic.
At the accident scene, Chacon Chacon was able to walk away from his vehicle and spoke with police and emergency medical technicians. He twice declined medical treatment and admitted to drinking six beers shortly before driving. He was under the influence of alcohol. A case of beer was in the back seat of his car. His car was not insured.
Emergency medical services cut open the Mitsubishi and extracted the driver who sustained extreme head trauma and experienced cardiac arrest. The driver remained hospitalized in a coma for nearly eight months and died on September 22, 2014.
Chacon Chacon faces a maximum sentence of one year in prison for manslaughter by vehicle – criminal negligence, and six months in prison for driving under the influence of alcohol, driving an uninsured vehicle, reckless driving failure to drive in a single lane. U.S. District Judge Paul W. Grimm has scheduled sentencing for February 18, 2016.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant United States Attorney Gustav William Eyler, of the U.S. Justice Department, who are prosecuting the case.
Internet Stalking Nets Northwest Arkansas Man over Eight Years (8.75 Years) in Federal PrisonRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Steven Lesmeister, age 39, of Green Forest, Arkansas, was sentenced on three counts of Stalking. Lesmeister was sentenced to 60 months in federal prison for count one and 60 months in federal prison for count two, with these two terms to run concurrently with each other; He was sentenced to 45 months in federal prison for count three with this term to run consecutively to the terms for the first two counts for a total of 105 months imprisonment and ordered to three years supervised release for each of the three counts to run concurrently. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on several occasions from June, 2014 to April, 2015, a 16 year old minor female in Virginia, a 19 year old female in New York, and a 14 year old minor female in North Carolina all began receiving sexually explicit and threatening text messages and sexually explicit videos of an unknown man on their phones from multiple email accounts. The man in the video would call them by their first name and told at least one of the victims that he knew her full name, address, type of car she drove, place of employment, and where she attended school. Lesmeister was subsequently located and arrested; officers seized and searched his IPad and IPhone revealing numerous email and social media accounts that he had created. His IPad contained the videos that had been sent to some of the victims. It was discovered that Lesmeister had sent hundreds of friend requests to teenage girls on Facebook where he was able to obtain their personal information that he then used to stalk them.
This case was investigated by Department of Homeland Security and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
INOAC Corp. to Pay $2.35 Million for Fixing Prices on Auto PartsRead the Press Release
INOAC Corp. has agreed to plead guilty and to pay a $2.35 million criminal fine for its role in a conspiracy to fix prices and rig bids on certain plastic interior trim automotive parts installed in cars sold to U.S. consumers.
According to the felony charge filed today in the U.S. District Court of the Eastern District of Kentucky, INOAC, based in Nagoya, Japan, and others conspired from as early as June 2004 until at least September 2012 to fix prices and rig bids on parts sold to Toyota Motor Corp., including certain of its subsidiaries and affiliates in the United States and elsewhere.
“INOAC corrupted the competitive process by agreeing with its competitors to fix the prices of certain automotive parts installed in Toyota cars sold in the United States,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Working with the FBI and our other law enforcement partners, the Antitrust Division will continue to protect American car buyers and hold automotive part suppliers accountable for their illegal conduct.”
“The FBI is committed to aggressively investigating individuals who engage in criminal conduct that corrupts the global marketplace,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville Division. “We will continue our work with the Department of Justice Antitrust Division to uncover schemes aimed at creating an unfair competitive advantage by way of price fixing, bid rigging or other illegal means.”
Today’s plea is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.
Including INOAC, 38 companies and 58 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.6 billion in criminal fines. INOAC is being prosecuted by the Antitrust Division’s Chicago Office and the FBI’s Louisville Field Office, Covington Resident Agency, with assistance from the U.S. Attorney’s Office of the Eastern District of Kentucky.
Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Louisville Field Office at 502- 263-6000.
Husband, Wife Sentenced for Drug Trafficking Following Heroin OverdoseRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a St. Louis, Mo., man and a Berkeley, Mo., woman have been sentenced for their roles in a drug-trafficking conspiracy after the man suffered a heroin overdose in a Columbia, Mo., hotel room.
Gustavo Ruvalcaba, 45, of St. Louis, and Jennifer Ann Foust, 30, of Berkeley, who are now married, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough on Wednesday, Nov. 18, 2015. Ruvalcaba was sentenced to 12 years and seven months in federal prison without parole. Foust was sentenced to six years in federal prison without parole.
On May 6, 2015, Ruvalcaba and Foust each were found guilty at trial of participating in a conspiracy to distribute heroin, crack cocaine, powder cocaine and methamphetamine from July 2013 to July 2014. Ruvalcaba was also convicted of four counts of possessing heroin, crack cocaine, powder cocaine and methamphetamine, each with the intent to distribute, on July 14, 2014. Foust was also charged in the possession counts but the jury was unable to reach a verdict; the court declared a mistrial on those counts in regard to Foust.
Columbia police officers were dispatched to a room at the Super 8 Motel in response to a heroin overdose on July 14, 2014. Foust had called 911 for Ruvalcaba, who was lying on the floor and being treated by EMS and fire personnel when officers arrived. Officers executed a search warrant for the hotel room and seized 16.4 grams of black tar heroin, 6.6 grams of crack cocaine, 35.3 grams of powder cocaine, 11.6 grams of pure methamphetamine, drug paraphernalia, seven cell phones and $78,525 divided up into 8 different manila envelopes and numerous piles.
St. Charles, Mo., police officers also had found Ruvalcaba and Foust together in an Embassy Suites hotel room about a year earlier, on July 10, 2013. Foust initially told officers that nobody else was in the hotel room, but they heard noises in the bathroom. Officers noticed drugs and drug paraphernalia scattered in plain view throughout the room and a large bundle of cash. The bathroom door was locked and they continued to hear sounds of plastic being rubbed together, water running and the toilet flushing. Officers believed evidence was being destroyed, so they jimmied open the bathroom door and found Ruvalcaba, who was flushing the contents of plastic bags down the sink and toilet. Ruvalcaba was handcuffed and set in a chair.
When one of the officers turned around to speak to Foust, Ruvalcaba quickly ingested some of the 15.4 grams of methamphetamine that was being weighed on a digital scale found in the bedroom. Ruvalcaba, who had chunks of methamphetamine in his mouth and on his face and t-shirt, began to eat the methamphetamine at a fast pace and refused to spit it out. When asked why he had ingested the methamphetamine, Ruvalcaba stated, “You can’t charge me without any evidence.” Officers seized 9.6 grams of crack cocaine, 5.7 grams of methamphetamine, drug paraphernalia, five cell phones and $11,086 (a large amount recovered from Ruvalcaba’s underwear) from the hotel room.
St. Charles police officers arrested Ruvalcaba and Foust again on Sept. 12, 2013, after their vehicle was pulled over on Interstate 70 for operating without proper registration. A K-9 walked around the vehicle and alerted to several areas of the vehicle, including the trunk. Officers found several syringes in a suitcase in the trunk.
Ruvalcaba and Foust were transported to the police station. While they were waiting in the holdover area, Ruvalcaba, whose right hand was handcuffed to the holding bench, reached with his free left hand to remove his shoe and retrieved a package of methamphetamine. Ruvalcaba threw the package of methamphetamine toward Foust, who pulled it toward her with her foot, placed it in her mouth and swallowed it. Officers ordered Foust to open her mouth and noticed a white residue on her tongue; officers also found methamphetamine on the floor where Foust was sitting.
On Dec. 6, 2013, law enforcement officers conducted surveillance of a residence in St. Charles, Mo., after being notified that two packages suspected of containing narcotics were scheduled to be delivered to the residence. After the packages were delivered, Ruvalcaba and Foust exited the residence, and Ruvalcaba placed a microwave oven into a vehicle driven by Foust. Ruvalcaba and Foust then left the residence together and were followed by officers. As officers attempted to stop the vehicle driven by Foust, she rapidly accelerated and drove onto I-70 at a high rate of speed. As Foust attempted to evade officers, she was seen weaving in and out of traffic for several miles at speeds in excess of 90 miles per hour. During the pursuit, Ruvalcaba had his upper torso out of the vehicle, and was observed throwing several packages containing a white substance, suspected to be methamphetamine, from the vehicle.
After the pursuit, officers searched the residence and recovered 15.1 grams of methamphetamine. A resident of the home told investigators he allowed Ruvalcaba and Foust to ship the packages containing methamphetamine to his house. He estimated that the packages received that day contained two kilograms of methamphetamine, which Ruvalcaba had concealed inside the microwave oven.
According to court documents, investigators interviewed a cooperating source in February 2015, who recognized Ruvalcaba and knew him to supply methamphetamine to a mutual associate. The cooperating source saw Ruvalcaba deliver three pounds of methamphetamine to their mutual associate on two different occasions.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the U.S. Postal Inspection Service, the St. Charles City Police Department, the St. Charles County, Mo., Sherriff’s Department and the St. Charles County Regional Drug Task Force.
Hummelstown Man Sentenced to 6 Years in Prison for Heroin and Crack Cocaine Trafficking and Federal Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney=s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Yvette Kane sentenced Devonte Betts, age 21, of Hummelstown, Pennsylvania to 6 years of incarceration today in Harrisburg, Pennsylvania. Betts pleaded guilty to possession of a firearm in furtherance of drug trafficking and possession with intent to distribute a controlled substance on June 15, 2015.
According to United States Attorney Peter Smith, Betts was in the vicinity of 13th and Market Streets in Harrisburg on June 6, 2014 in possession of two loaded firearms, as well as heroin and crack cocaine. Officers from the Harrisburg Bureau of Police apprehended Betts after a brief foot chase. During the chase, a portion of which was captured on local surveillance cameras, Betts tossed the guns from his waistband. The officers immediately collected a loaded 9mm handgun and a loaded .357 firearm from Betts’ flight path. At the time of his arrest, Betts was carrying multiple bags of heroin, crack cocaine and other indicia of drug trafficking.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrisburg Bureau of Police. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
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Houston Resident Sentenced for Importing 11 Kilos of Meth into the U.S.Read the Press Release
McALLEN, Texas – A 19-year-old man from Houston has been handed a federal prison sentence following his conviction of importing methamphetamine into the U.S., announced U.S. Attorney Kenneth Magidson. Jose Manuel Trevino Jr. pleaded guilty Nov. 24, 2014.
Today, U.S. District Judge Micaela Alvarez considered Trevino’s young age and ordered to him to serve a total of 75 months in federal prison to be followed by three years of supervised release. In handing down the sentence, Judge Alvarez also noted that this was a serious crime because of how lethal methamphetamine is and that it can be so quick to that lethality.
On Aug. 15, 2014, Trevino was intercepted by a Texas State trooper after he drove his vehicle into the U.S. from Mexico through the Pharr Bridge. Upon investigation, authorities discovered 11 kilograms of methamphetamine hidden within several false compartments in the vehicle’s front fender area.
Trevino admitted he knew he was importing controlled substances into the U.S. and was going to be paid for delivering the narcotics further into the interior of the United States.
Trevino 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 conducted by the Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Houston Man Sentenced for Role in Money Laundering ConspiracyRead the Press Release
McALLEN, Texas – A naturalized U.S. citizen residing in Houston has been ordered to federal prison following his conviction in McAllen federal court to conspiring to commit money laundering, announced U.S. Attorney Kenneth Magidson. Alejandro Morales-Flores, 60, pleaded guilty April 16, 2015.
Today, U.S. District Judge Randy Crane handed Morales-Flores a 63-month sentence. After he finishes his prison sentence, he will be on supervised release for three years.
On Oct. 24, 2014, Morales-Flores was driving a tractor-trailer from Houston to the Rio Grande Valley. A trooper with the Texas Department of Public Safety (DPS) stopped him near San Manuel for a traffic violation as he was heading to the Valley. His trailer was found to be empty, but a search resulted in the discovery of several bags containing a total of $1,413,255 in U.S. currency hidden in the sleeper compartment.
Morales-Flores admitted he knew the money was drug trafficking proceeds and that he was being paid to deliver it to unknown individuals in the Rio Grande Valley area.
Morales-Flores was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service by Dec. 7, 2015, to begin serving his sentence.
The charges are the result of an investigation by the Drug Enforcement Administration with assistance from DPS. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS ALBERTO RIVERA-MELENDEZ, age 39 a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Lance M. Africk sentenced RIVERA-MELENDEZ to time served, one year of supervised release, and a $100 special assessment. RIVERA-MELENDEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, 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.
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 was in charge of the prosecution.
Grand Jury Returns Indictment Alleging Man Made Bomb Threat at Sevier Valley Medical CenterRead the Press Release
SALT LAKE CITY – A federal grand jury returned a one-count indictment Wednesday afternoon charging Michael Sherman Morlang, age 26, of Payson with making a bomb threat to a hospital.
On the morning of Sept. 17, 2015, the Sevier Valley Medical Center in Richfield received a bomb threat. The hospital evacuated everyone possible and remained on lockdown for several hours. Individuals seeking emergency care, including patients in ambulances, had to be diverted to another hospital.
The indictment alleges Morlang called in the bomb threat, conveying information he knew to be false concerning an attempt being made to damage or destroy a building. The potential maximum penalty for the charge is 10 years in prison and a fine of $250,000. An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Morlang is in custody in Idaho on an unrelated warrant. A federal arrest warrant will be issued following today’s indictment.
The Richfield Police Department, the Sevier County Sheriff’s Office, and the FBI have coordinated the investigation of the case. The case is being prosecuted by the U.S. Attorney’s Office in St. George.
Gasoline Refiner to Reduce Emissions at Utah Facility to Resolve Clean Air Act ViolationsRead the Press Release
The Department of Justice and the U.S. Environment Protection Agency (EPA) today announced a settlement with HollyFrontier Corporation subsidiaries (HollyFrontier Refining & Marketing LLC, Frontier El Dorado Refining LLC, Holly Refining & Marketing Company—Woods Cross LLC and Navajo Refining Company LLC) that resolves alleged Clean Air Act violations regarding fuel quality emissions standards and testing requirements at three HollyFrontier facilities. Under a consent decree lodged today in the U.S. District Court for the District of Columbia, HollyFrontier will implement a mitigation project at its refinery in Salt Lake City, Utah, to offset past emissions and pay to the United States a $1.2 million civil penalty.
“This agreement will benefit public health by requiring retrofits of storage tanks at HollyFrontier facilities that will reduce volatile organic compound emissions and use next generation technology to verify these reductions,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and natural Resources Division. “This settlement shows that fuel refiners can and must meet the nation’s standards for controlling the emissions that cause ground level ozone and serious health problems for Americans.”
“Fuel emissions standards help safeguard our nation’s air quality and public health,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This settlement not only means cleaner air for communities in Salt Lake City, it helps ensure a level playing field for fuel refiners that follow the law.”
The Clean Air Act requires fuel refiners to ensure the conventional gasoline they produce meets volatility standards, referred to as Reid Vapor Pressure (RVP) standards. As gasoline evaporates, volatile organic compounds (VOCs) are released, which react in sunlight to form low-level ozone. Breathing ozone can trigger a variety of health problems including chest pain, coughing, throat irritation and congestion and can worsen bronchitis, emphysema and asthma. VOCs also include a wide variety of hydrocarbons, some of which are hazardous air pollutants such as benzene, toluene, xylene and ethyl benzene.
HollyFrontier disclosed to the EPA that three of its refineries—the Navajo Refinery in Artesia, New Mexico, the Woods Cross Refinery in Woods Cross, Utah, and the El Dorado Refinery in El Dorado, Kansas—produced approximately 42 million gallons of gasoline that was introduced into commerce in the Utah, Texas, Arizona, New Mexico and Idaho markets that exceeded the applicable RVP standards. HollyFrontier reported to the EPA that these violations are estimated to have resulted in about 10 excess tons of VOC emissions.
Under the settlement, HollyFrontier will install new equipment on two tanks at its Salt Lake refinery to reduce potentially-toxic VOC emissions by about 96 tons over the lifetime of the consent decree. The company will be required to use next generation pollutant detection technology during the implementation of the mitigation projects and be required to hire a third party to verify its compliance status for the mitigation projects. Due to the enduring nature of the projects, environmental benefits accruing as a result of these projects are anticipated to continue for many years. The facility where the pollution controls will be installed is located in an area that may present environmental justice concerns.
EPA’s Next Generation Compliance Strategy promotes advanced emissions and pollutant detection technology so that regulated entities, the government and the public can more easily see pollutant discharges, environmental conditions and noncompliance.
More information about EPA’s Next Generation Compliance Strategy is available at: http://www2.epa.gov/compliance/next-generation-compliance.
For more information on the settlement or to read the consent decree, visit http://www.justice.gov/enrd/consent-decrees.
Fort Thompson Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on November 17, 2015, by U.S. District Judge Roberto A. Lange.
Roscoe Dan Witt, Jr., age 30, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Witt was indicted by a federal grand jury on March 10, 2015. He pled guilty on August 25, 2015.
Witt was convicted of Assault with a Dangerous Weapon in 2004 and was sentenced to federal custody, followed by supervised release. As a convicted felon, Witt cannot possess any firearms. The current conviction stems from an incident on November 29, 2014, when a call was received at the Crow Creek Bureau of Indian Affairs (BIA) Police Department informing them that someone inside a cream colored Chevrolet Impala was shooting a gun around the old Fort Thompson area. A BIA officer was notified about the call, responded and saw the vehicle
He observed Witt by the driver side door. Witt was walking towards the front door of the store, but then turned around with his hand in his right pocket, opened the back door and put something into the vehicle.
The officer approached the driver side rear door and recovered a Premier 32 Smith and Wesson .32 Caliber handgun with the trigger locked back, as it was ready to be fired by pulling onto the trigger. Contact was made with Witt and he was placed into tribal custody. At the jail, officers recovered from Witt a .32 caliber casing.
The Division of Criminal Investigation laboratory confirmed that the .32 shell casing recovered from Witt was fired from the Premier 32 Smith and Wesson .32 Caliber handgun.
This case was investigated by the BIA. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Witt was immediately turned over to the custody of the U.S. Marshals Service.
Fort Collins Man Indicted by Federal Grand Jury for Being a Felon in Possession of a Firearm After Threatening to Shoot and Burn Down Front Range Community CollegeRead the Press Release
DENVER – Fort Collins resident and former Front Range Community College student David Aaron Moscow, age 30, has been indicted by a federal grand jury in Denver on two counts of being a felon in possession of a firearm, the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Fort Collins authorities announced. Moscow came to the attention of law enforcement after telling a clinical neuropsychologist that he planned to shoot people at Front Range Community College and burn down the school. Firearms were found in Moscow’s home and vehicle, along with a large amount of ammunition found in his home.
According to federal court documents, David Moscow was a student at Front Range Community College in Fort Collins in 2012, but left voluntarily. After leaving he made inappropriate calls to college personnel. He also posted questionable information online about the school. In October 2015, Moscow went back to the school in an attempt to re-enroll. During that process he was questioned about his former inappropriate conduct. After the meeting at the community college Moscow met with several clinical neuropsychologists, telling one of them he had desires to shoot people at the school and burn it down. This prompted a neuropsychologist to contact law enforcement.
An investigation into Moscow revealed that he had a prior felony conviction for Aggravated DUI in 2007 in Arizona. While the neuropsychologist put a Mental Health Hold on Moscow, law enforcement obtained a search warrant for his residence. Moscow was taken into custody on October 23, 2015 for his own safety based on the mental health hold. Also on that date, Fort Collins Police Services executed a search warrants at Moscow’s residence and in his car. They found an AR-15, fully loaded with a 30 round clips in his bedroom closet. They also found hundreds of rounds of ammunition. In addition, a Glock .40 caliber handgun was found in his vehicle. Moscow was also in possession of controlled substances, namely hydrocodone and Ecstasy.
Moscow, possessing the weapons after his Arizona felony conviction, was a felon in possession of a firearm. He was charged in federal court by Criminal Complaint on November 2, 2015. He was indicted by a federal grand jury on November 16, 2015. The defendant has made his initial appearance, where he was advised of the charges against him. He was advised of his rights, and was arraigned, entering a not guilty plea. U.S. Magistrate Judge Michael J. Watanabe ordered Moscow to be held in the custody of U.S. Marshals without bond.
In addition to the federal charges, Moscow was charged in Fort Collins by the Larimer County District Attorney with multiple violations of state law, including Felony Menacing (F5), Violation of Bail Bond Conditions (F6), Violation of a Protection Order (M1), Possession of a Weapon by a Previous Offender (F6), Prohibiting a Large Capacity Magazine During A Crime (F6), Possession of a Controlled Substance (DF4), and Interference with a School-Credible Threat (M1). It has been determined that in order to facilitate the federal prosecution of the firearm charges that the District Attorney’s Office is going to dismiss both the Possession of a Weapon by a Previous Offender charge as well as the charge Prohibiting a Large Capacity Magazine During a Crime. Larimer County District Attorney’s Office will retain the remaining charges.
If convicted of being a felon in possession, the defendant faces not more than 10 years, and up to a $250,000 fine, per count for each of the two counts.
The Moscow case was investigated by Fort Collins Police Services and the ATF with support from Front Range Community College Security. The matter also received substantial attention from Larimer County District Attorney Clifford Riedel’s Office.
This case is being prosecuted by Assistant U.S. Attorney Rebecca Weber.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Former Tucson Resident Sentenced to 27 Months’ Imprisonment for Filing False Tax ReturnsRead the Press Release
TUCSON, Ariz. – Today, former Tucson resident April Escobedo, 43, of Las Vegas, Nev., was sentenced by Chief U.S. District Judge Raner C. Collins to 27 months’ imprisonment and ordered to pay $255,189 in restitution to the United States Treasury. Escobedo previously pleaded guilty to wire fraud.
Between January, 2010, and June, 2013, Escobedo filed approximately 265 false federal income tax returns claiming false refunds in the amount of approximately $472,351. As a result, the United States Treasury issued false income tax refunds in the total amount of approximately $255,189.
Between January 2010 and June 2013, Escobedo filed approximately 265 false federal income tax returns claiming refunds in the amount of approximately $472,351. As a result, the United States Treasury issued false income tax refunds in the total amount of approximately $255,189. In order to obtain the false tax refunds, Escobedo used the names and social security numbers of other individuals along with false wages and withholding on the false income tax returns she filed with the Internal Revenue Service. Escobedo obtained the names and social security numbers by various means, including 1) offering to pay some people a portion of the false income tax refund obtained with their personal information; 2) using the names and social security numbers from employment applications of individuals who applied to work for Escobedo’s boyfriend; and 3) obtaining names and social security numbers of others from her daughters. Escobedo deposited portions of the fraudulent proceeds in her bank account and she directed her daughters to open bank accounts to distribute other false tax refunds.
Escobedo deposited portions of the fraudulent proceeds in her bank account and she directed her daughters to open bank accounts to distribute other false tax refunds.
The daughters, Cassandra Grijalva and Rachel Grijalva, both of Tucson, previously plead guilty to conspiracy to defraud the United States. They were sentenced to five and three years’ probation respectively.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Jane L. Westby, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-01644-RCC-1
RELEASE NUMBER: 2015-114_Escobedo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Sailor and Convicted Serial Rapist Pleads Guilty to 2010 AttackRead the Press Release
NORFOLK, Va. – Amin Jason Carl Garcia, 26, of New York, New York, a convicted serial rapist and former U.S. Navy sailor, pleaded guilty today to charges relating to the attack of a former Army officer while she was taking a shower at Camp Arifjan in Kuwait in 2010.
In a statement of facts filed with the plea agreement, on April 29, 2010, the U.S. Army Criminal Investigative Division (CID) Kuwait, was contacted regarding the assault and attempted rape of a U.S. Army officer in the female shower trailer at Camp Arifjan, Kuwait. According to the victim, approximately three minutes into her shower, an unknown black male whose face was almost fully covered by a military tan undershirt, pulled her from the shower to the opposite end of the trailer and ordered her to face away from him. The victim resisted her attacker, who subsequently cut her numerous times with a box cutter type knife and punched her several times in the head. At one point during the attack, the attacker stated that he “guessed” at that point he would have to kill her. Eventually, the victim complied with her attacker and stated that she would do what he wanted to do, but begged that he not cut her any more. Shortly after the comment, the attacker fled the scene on foot and the victim ran to her tent to get help before being transported to the medical facility in Camp Arifjan.
According to court documents, while processing the crime scene investigators recovered a shirt covered in what appeared to be blood. That shirt was believed to be the shirt that was covering the face of the attacker. Also discovered at the crime scene was what appeared to be a trail of blood that led from the female shower trailer to a washroom in which additional blood was collected. Upon testing of the material collected by the U.S. Criminal Investigative Laboratory (USACIL), it was determined that the stains were produced by blood and two DNA profiles were developed. One DNA profile was that of the female known victim, and the other was identified as from an unknown male with Type A blood. The unknown male Type A blood profile also matched the blood found in the washroom. Subsequent investigative steps identified Garcia as a suspect in the assault at Camp Arifjan. These steps included a check of military records, which confirmed that Garcia was in the military and had been assigned to Camp Arifjan at the time of this assault.
According to court documents, in December 2013, Garcia was still in the U.S. Navy Reserves. On the weekend of Dec. 14, 2013, when Garcia was serving his reserve drill period at the Navy Operational Support Center (NOSC), Bronx, New York, NCIS investigators shadowed him and, after Garcia ate lunch, agents seized the fork, two cups, and banana to recover swabs for DNA analysis. The analysis of the biological material seized by investigators revealed that it matched the DNA that was obtained from the assault of the victim at Camp Arifjan in April 2010.
Garcia’s DNA also was a match for DNA recovered at the scene of a sexual assault on a Norfolk woman in 2008. The same rapist returned to the victim’s home again later in 2008 and raped the initial victim’s daughter. NCIS and the Norfolk Police Department (NPD) began to work together to try to identify the rapist, and NPD later recovered latent fingerprints from the scene in 2008. Those fingerprints from 2008 matched the fingerprints of Garcia. Garcia was a U.S. Navy reservist at the time of the 2008 rapes and lived approximately one mile from the victims.
Garcia was originally indicted by a federal grand jury on Oct. 9, 2014, and will be sentenced on Feb. 22, 2016. In August 2014, Garcia was convicted of the 2008 rapes in Norfolk Circuit Court and was sentenced to life in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Elizabeth M. Yusi and Benjamin L. Hatch are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr134.
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Former Government Contract Employee Sentenced to Probation for Misusing VA Credit CardRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to a period of three years of probation on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brian R. Kaminski, 31, of Allison Park, PA.
According to information presented to the court, Kaminski was a Contract Specialist employed by the Department of Veteran’s Affairs who was given a Government Purchase Card (a credit card) for use in his duties for those occasions when he needed to make incidental purchases. During the period September through November 2012, Kaminski made a series of 29 unauthorized purchases (in person and online) at four different merchants totaling just over $28,000. Kaminski then took steps to hide what he had done relative to the internal accounting procedures of the VA.
U.S. Attorney Hickton commended the Department of Veteran Affairs - Veterans Affairs Police and the Office of Inspector General for the investigation leading to the successful prosecution of Kaminski.
Former Florida State University Finance Professor Convicted of EmbezzlementRead the Press Release
TALLAHASSEE, FLORIDA – Today, a federal jury convicted former Florida State University (FSU) Assistant Professor of Finance, James S. Doran PhD, 40, of Boulder, Colorado, of embezzlement concerning a program receiving federal funds. The verdict was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between May 2010 and March 2011, Doran, while employed at FSU’s College of Business, intentionally embezzled money from the Student Investment Fund Inc. (SIF). The SIF was developed to give business students practice in conducting stock purchases and managing an investment portfolio. Doran, who oversaw the SIF as a faculty advisor, made a series of transfers totaling more than $650,000 from the SIF to his own personal investment account. He also used $10,000 in SIF monies to pay for a performance evaluation of his personal investment fund. Doran returned the monies after an audit disclosed his illegal transfers.
Doran faces a maximum of 10 years in prison. The sentencing hearing is scheduled for February 12, 2016, at 11:00 a.m. at the United States Courthouse, in Tallahassee, Florida.
The case was investigated by the United States Secret Service, the FSU Police Department, and the FSU Office of Inspector General Services. It was prosecuted by Assistant United States Attorneys Jason R. Coody and Gary K. Milligan.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Former Dmv Clerk Sentenced to ProbationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-The United States Attorney’s Office announced today that Michael Anthony Young, 49, of Buffalo, NY, who was convicted of obtaining information from a protected computer, was sentenced to one year probation by U.S. Magistrate Judge H. Kenneth Schroeder, Jr.Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated that Young, a former employee at the Erie County Department of Motor Vehicles, used his position as a Motor Vehicle Representative to solicit and accept bribes for his assistance in completing paperwork and passing permit examinations. At times, the defendant would provide the correct answers to individuals in advance of the permit test. After the applicant received Young’s assistance, Young would complete paperwork containing false information, including false permit test results, which would then be inputted into the DMV computer systems.
The sentencing is the result of an investigation by Special Agents from the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and Investigators from the New York State Department of Motor Vehicles, Division of Field Investigations.
Former Citizens Bank Branch Manager Facing Federal Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Allegheny County has been indicted by a federal grand jury in Pittsburgh on charges of bank fraud, access device fraud and bank officer embezzlement, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on Nov. 18, named Tara Lynn Petrucci, 36, of Gibsonia, PA, as the sole defendant.
According to the indictment, Petrucci, a former branch manager at the Citizens Bank in Bellevue, Pa., unlawfully obtained Citizens Bank debit cards inadvertently left by customers who used the Bellevue Citizens Bank ATM, used the customer debit cards to make unauthorized purchases of merchandise at retailers such as the Walmart store in Cranberry Township, Pa. and at other retailers. Petrucci also identified Citizens Bank customers who did not regularly manage their accounts, mainly older-aged account holders, and stole funds from their accounts with forged withdrawal slips.
The law provides for a total sentence of 100 years in prison, and a fine of $3,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Chicago Police Sergeant Pleads Guilty to Passing Government Information to Store Clerk in Exchange for Cash PaymentsRead the Press Release
CHICAGO — A former sergeant in the Chicago Police Department pleaded guilty today to charges he took cash payments from a liquor store clerk in exchange for disclosing private government information.
RAY M. RAMIREZ served as a sergeant in the 12th Police District on the city’s Near West Side. Ramirez admitted in a plea agreement that he obtained information from law enforcement databases and passed it to the store clerk in exchange for cash payments of $150 to $200. The information included a criminal background check on a prospective store employee, a vehicle registration check, and a review of police incidents occurring in and around the store.
Ramirez also admitted that he shook down the clerk and other store employees for cash payments ranging from $70 to $200. Ramirez wore his police uniform and was on duty when he demanded the payments, according to the plea agreement.
Ramirez, 52, of Chicago, pleaded guilty to one misdemeanor count of intentionally accessing a Chicago Police Department mobile computer and exceeding his authorized access to obtain information from a department or agency of the United States. He faces a maximum sentence of 12 months in prison, a maximum fine of $100,000, and mandatory restitution. U.S. District Judge Ronald A. Guzman scheduled a sentencing hearing for March 16, 2016, at 10:30 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is represented by Assistant United States Attorney Megan Cunniff Church.
Plea Agreement
Former Boston Police Officer Sentenced for Making False StatementsRead the Press Release
BOSTON – A former Boston Police officer who was also the former treasurer of the Boston Police Patrolmen’s Association was sentenced today for making a false statement to the FBI in connection with his cash loans to a known criminal.
David Michael Fitzgerald, 49, who resides in Milton, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year of probation and a fine of $1,000. In July 2015, Fitzgerald pleaded guilty to one count of making a false statement to the FBI. Fitzgerald was a Boston Police officer from 1996 until June 2015 when he resigned as part of his plea agreement. He was the treasurer of the Boston Police Patrolmen’s Association (BPAA) from 2012 to 2014.
Fitzgerald developed a relationship with an individual who was known to be a street-level drug dealer and bookmaker. During the course of this relationship, Fitzgerald made cash loans to the individual, which were paid back in weekly installments. On April 27, 2015, Fitzgerald met the individual in Watertown in order to collect a $500 cash installment for one of the outstanding loans. Later that same day, when federal agents who were investigating the matter questioned Fitzgerald, he falsely stated that the purpose of his meeting with the individual was simply social in nature and that he had never loaned money to the individual. Not only were these statements untrue, but they were intended to interfere with an ongoing federal investigation.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The U.S. Attorney’s Office also wishes to acknowledge the cooperation of the Boston Police Department’s Anti-Corruption Division. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris and Robert Fisher of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Army Reservist Arrested in Connection with Worcester Armory TheftRead the Press Release
BOSTON – A former Army Reservist has been arrested in New York in connection with the theft of sixteen weapons from a U.S. Army Reserve Center in Worcester, Mass.
James W. Morales, 34, of Cambridge, Mass. was charged in U.S. District Court in Massachusetts with one count of unlawful possession of a machine gun, one count of unlawful possession of stolen firearms and one count of theft of government property. Morales was arrested in Westbury, New York on Wednesday night after evidence linked him to the crime scene and agents tracked him to Long Island.
It is alleged that on the morning of Nov. 15, 2015, personnel at the U.S. Army Reserve Center on Lake Avenue North in Worcester, Mass. reported a forced entry through the roof of a weapons vault and that sixteen weapons, specifically six M-4 rifles and 10 Sig Sauer M11 9mm pistols, had been stolen. An investigation revealed that the perpetrator allegedly entered the facility through a kitchen window and then gained access to the inside of the weapons vault by cutting a hole through the vault’s ceiling with a power saw and pry bar.
Blood samples were recovered inside and on the weapons vault at the armory and Morales was subsequently identified as the source. Further investigation revealed that Morales was on electronic monitoring based on a charge in May 2015 in Middlesex Superior Court for child rape and indecent assault. Review of the information recorded by Morales’s electronic monitoring bracelet revealed that he arrived at the facility at approximately 6:40 p.m. on Nov. 14, 2015 and was present until 12:08 a.m. the following morning. The bracelet places Morales directly inside the facility several times during the intervening period.
Each charge provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Daniel Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Richard McKeon, Superintend of the Massachusetts State Police; Chief Gary Gemme of the Worcester Police Department; Boston Police Commissioner William Evans; Acting Police Commissioner Thomas C. Krumpter of the Nassau County Police Department, Mineola, New York; and Sheriff Michael J. Sposato of the Nassau County Sherriff’s Department, East Meadow, New York, made the announcement today. The U.S. Attorney’s Office would like to acknowledge the cooperation and assistance of U.S. Attorney Robert L. Capers’s Office in the Eastern District of New York.
The case is being prosecuted by Assistant U.S. Attorneys Mark Grady and Corey Flashner of Ortiz’s Worcester Branch Office.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Five Sentenced in Violent Carjacking Spree Involving Seven Carjackings in Four CountiesRead the Press Release
ATLANTA – Ladarious Gibbs, Derek C. Turner, Andre Clark, Brandon Washington, and Raphael Banks have been sentenced to federal prison for a series of violent armed carjackings in the Atlanta area.
“The defendants’ crimes were alarmingly violent,” said U.S. Attorney John A. Horn. “These young men preyed upon the citizens of our community. A carjacking is a jarring event alone, but a string of them instills fear and unease throughout the entire community. We hope the long sentences here restore a sense of safety and send a message to anyone who might think of committing this type of crime.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated, “These individuals, through their unified criminal acts, were responsible for a significant violent crime spike in and around the City of Atlanta. It is cases such as this that really do require the combined efforts and resources of law enforcement working together and across jurisdictional boundaries to get these violent offenders off of our streets and into prison.”
“These violent repeat offenders, who are responsible for many crimes throughout the Metro Atlanta, will now be held responsible for their heinous actions,” said Atlanta Police Chief George Turner. “Our partnership efforts with the FBI as well as Cobb, Gwinnett, DeKalb and Cobb Counties and other law enforcement agencies prove that joint efforts lead to successful outcomes.”
According to United States Attorney Horn, the charges and other information presented in court: Between December 29, 2012, and January 18, 2013, the defendants committed at least seven carjackings in Fulton, Gwinnett, Cobb, and DeKalb Counties. During several of the robberies, the defendants pointed guns at the victims and threatened to kill them. The defendants then robbed victims of their cars, personal belongings, cash and cellular telephones. One of the victims was a pregnant woman who suffered pre-term labor as a result of her carjacking and had to be hospitalized. One of the defendants was apprehended following a 100-mile-per-hour chase through downtown Atlanta that endangered dozens of innocent people.
A federal grand jury indicted the defendants on May 20, 2014. Gibbs, Turner, Clark, and Washington pleaded guilty to carjacking and possession of a firearm in furtherance of a crime of violence. Banks pleaded guilty to being an accessory to the crimes. The men received the following sentences:
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Ladarious Gibbs, a/k/a, “Lil D,” 24, of Atlanta, Georgia was sentenced to 30 years in prison, to be followed by five years of supervised release.He was ordered to pay restitution in the amount of $29,080.68.
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Derek C.Turner, a/k/a, “Snoop,” 22, of Atlanta, Georgia, was sentenced to 27 years in prison, to be followed by five years of supervised release.He was ordered to pay restitution in the amount of $29,080.68.
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Andre Clark, a/k/a, “Yammy,” 23, of Atlanta, Georgia, was sentenced to 10 years and one month in prison, to be followed by five years of supervised release.He was ordered to pay restitution in the amount of $1428.
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Brandon Washington, a/k/a, “Lil B,” 21, of Atlanta, Georgia, was sentenced to nine years and nine months in prison, to be followed by five years of supervised release.
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Raphael Banks, 26, of Atlanta, Georgia, was sentenced to four years and nine months in prison, to be followed by three years of supervised release.He was ordered to pay restitution in the amount of $500.
This case was investigated by the Federal Bureau of Investigation, Cobb County Police Department, and Atlanta Police Department.
Assistant United States Attorneys Stephanie Gabay-Smith and Ryan K. Buchanan prosecuted 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.
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Federal Jury Finds A Jacksonville Civil Traffic Engineer Guilty of Possession of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that a federal jury in Jacksonville today found William Roland Baker (64, Jacksonville) guilty of two counts of possessing child pornography. He faces a mandatory minimum penalty of 10 years, up to 20 years, in federal prison on each count, and a potential life term of supervision. Baker is a registered child sex offender who was previously convicted of lewd and lascivious conduct with a child on November 22, 1995. He has been in custody since his arrest on November 4, 2013 in Jacksonville, and had previously worked as a civil traffic engineer.
According to testimony and evidence introduced during the trial, in early 2013, an agent with the Florida Department of Law Enforcement was able to download several images and a video of child pornography over the Internet from a computer using an Internet Protocol address that was traced back to Baker’s Jacksonville residence. On May 29, 2013, a federal search warrant was executed at this residence, where law enforcement seized two laptop computers from Baker’s bedroom. A forensic examiner was able to recover images of child pornography from Baker’s computers, even though Baker had used an eraser program on the evening before the search. During an interview, Baker claimed that he did not download child pornography. However, the forensic analysis of his laptop computer showed that he had used particular terms to search for child pornography in a file sharing program. Baker’s computers contained a total of 338 images depicting the sexual abuse of young children.
This case was investigated by the Florida Department of Law Enforcement and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Correctional Officer Sentenced to 18 Months for Public CorruptionRead the Press Release
RICHMOND, Va. – Jermaine Brown, 37, of Chesterfield, was sentenced today to 18 months in prison for accepting bribes in his role as a federal prison guard in exchange for smuggling cigarettes to inmates.
Brown pleaded guilty on Aug. 20, 2015. According to court documents, Brown admitted that he accepted bribes in exchange for providing contraband cigarettes to inmates while he was employed as a correctional officer at Federal Correctional Institute–Petersburg. After providing the contraband cigarettes, Brown instructed the inmates to have their friends or family members wire transfer money to a known associate of Brown.
According to court documents, on or about Feb. 10, 2011, Brown’s associate picked up two Western Union wire transfers totaling $1,450 sent by or on behalf of the inmates, and the associate delivered the money to Brown as a bribe for providing contraband cigarettes to inmates at FCI Petersburg. As part of his plea, Brown agreed that he received and accepted a total of $3,050 in bribes from federal inmates.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Michael Tompkins, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Washington Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorneys Erik S. Siebert and Michael C. Moore are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-93.
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Family Members Charged with Conspiring to Impede Federal Arson Investigation, Including Offering to Murder a WitnessRead the Press Release
Baltimore, Maryland – Greg Ramsey, age 54, and his niece, Tyesha Towanda Roberts, age 37, both of Baltimore, have been charged by criminal complaint with conspiracy to obstruct and impede a federal investigation. Ramsey is also charged with malicious destruction of property by fire. The charges arise from a scheme to impede a federal investigation into the arson of a building and two automobiles on August 26, 2013. The criminal complaint was issued on November 9, 2015 and unsealed upon the arrest of the defendants.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Maryland State Fire Marshal Brian Geraci.
According to the affidavit filed in support of the criminal complaint, Ramsey was employed by an individual who pleaded guilty to use of fire to commit a federal felony, wire fraud and malicious destruction of a property by fire, in connection with the August 26, 2013, arson of a home and two vehicles in the area of Walbrook Avenue in Baltimore. During the investigation, phone records showed that a cellular phone used by Ramsey was in the vicinity at the date and time the fires were set and that he was in frequent contact with his employer during that time frame. Ramsey was not aware of his former employer’s guilty plea.
According to the criminal complaint, from September through November, 2015, Ramsey had several discussions with his former employer concerning how to shift the blame for the fires to another former employee. Ramsey offered to have Roberts, whom he referred to as his sister, falsely testify and provide an alibi for Ramsey’s employer. In addition, Ramsey offered to have someone kill a witness to prevent that witness from testifying at trial. Roberts confirmed that she was willing to offer false testimony, and took $1,000 from a confidential source, as an initial payment. On November 2, 2015, Ramsey and Roberts met with Ramsey’s former employer to discuss the particulars of Roberts’ false testimony. Ramsey offered to plant his cell phone at the former employee’s residence whom they had previously discussed setting up for the arson. During a discussion about possibly killing any witness testifying for the prosecution, Roberts offered that she knew people who would be willing to commit such a murder.
Ramsey and Roberts each face a maximum sentence of 20 years in prison for conspiring to impede a federal investigation. Ramsey also faces a mandatory minimum sentence of five years and up to 20 years in prison for malicious destruction of property by fire. Roberts was arrested late yesterday and had an initial appearance this afternoon before U.S. Magistrate Judge Beth P. Gesner in U.S. District Court in Baltimore. She was detained pending a detention hearing scheduled for November 24, 2015. Ramsey was arrested and had his initial appearance on November 13, 2015. He was ordered to be detained pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Maryland State Fire Marshal’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
El Salvadoran National Charged for False Claim to U.S. CitizenshipRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIGUEL MENDEZ-GUSMAN, age 36, a citizen of El Salvador, was charged today in a one-count Indictment for false claim to United States citizenship.
According to the Indictment, MENDEZ-GUSMAN falsely and willfully represented himself to be a citizen of the United States on or about July 28, 2015.
If convicted, MENDEZ-GUSMAN faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt
U.S. Attorney Polite praised the work of the United States Department of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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El Departamento de Justicia Resuleve una Queja de Discriminación Relacionada con la Inmigración Contra Mcdonald’sRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que había llegado a un acuerdo con McDonald’s USA LLC y sus filiales y subsidiarios (McDonald’s) que resuelve las acusaciones de que McDonald’s hubiese discriminado a inmigrantes que son empleados de restaurantes que son propiedad de McDonald’s.
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) del Departamento de Justicia abrió su investigación con base en la información que recibió a través de su línea directa para trabajadores. La investigación encontró que McDonald’s tenía una práctica de mucho tiempo de obligar a los residentes permanentes legales a mostrar una nueva tarjeta de residencia permanente al vencerse el documento original, a pesar de que la Ley prohíba dicha práctica. Más aún, la investigación encontró que la compañía no pidió lo mismo de sus empleados que sí eran ciudadanos estadounidenses y que habían presentado documentos que luego vencieron y que a aquellos residentes permanentes legales a los que se les pidió que mostraran una nueva tarjeta y que no pudieron hacerlo no se les permitió trabajar; como resultado, algunos perdieron sus trabajos. Esta investigación y el acuerdo de hoy solamente abordan acciones tomadas por McDonald’s y no por ninguna de sus franquicias.
“Los empleadores no pueden establecer estándares más estrictos para residentes permanentes legales al imponerles mayores requisitos documentales durante el proceso de verificación de la elegibilidad de empleo,” declaró la Subprocuradora General Interina, Vanita Gupta, la Jefa de la División de Derechos Civiles. “Requerir documentos innecesarios de ciertos individuos por motivos de su estatus migratorio o de ciudadanía es un acto de discriminación, y el Departamento De Justicia no dudará en ejecutar la ley y proteger los derechos de inmigrantes con autorización para trabajar. Aplaudimos a McDonald’s por su cooperación a lo largo de esta investigación y por comprometerse a indemnizar a sus empleados actuales y previos que perdieron sueldos debido a estas prácticas.”
Los residentes permanentes legales están autorizados para vivir y trabajar en los Estados Unidos de forma permanente. Para probar este estatus, los residentes permanentes legales reciben una tarjeta de residencia permanente, a la que se suele llamar “Tarjeta Verde” o “Green Card,” pero los residentes permanentes legales son elegibles para varios documentos distintos que les sirven para demostrar su elegibilidad para trabajar.
Los residentes permanentes legales no tienen ninguna obligación de presentar sus tarjetas de residencia permanente al comenzar a trabajar. Mientras que la mayoría de las tarjetas de residencia permanente contienen una fecha de vencimiento, por lo general, los titularlos de tales cartas cuentan con autorización permanente para trabajar, por lo que el vencimiento de la tarjeta no implica la pérdida de su estatus o derecho a trabajar. Los residentes permanentes legales que deciden enseñar una tarjeta de residencia permanente vigente no tienen ninguna obligación de presentar documentos adicionales al vencerse su tarjeta, y los empleadores no pueden solicitarles documentos adicionales. Asimismo, la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) prohíbe que los empleadores soliciten documentos adicionales a sus empleados con autorización para trabajar durante el proceso de verificación de elegibilidad de empleo por motivo de su estatus migratorio o de ciudadanía.
Conforme al acuerdo, McDonald’s pagará 355.000 $ en sanciones civiles a los Estados Unidos, se someterá a 20 meses de supervisión y capacitará a sus empleados en cuanto a la disposición antidiscriminatoria de la INA.
El acuerdo también requiere que McDonald’s indemnice a aquellos residentes permanentes legales que son empleados de restaurantes que son propiedad de McDonald’s y que perdieron horas laborales o sus trabajos debido a estas prácticas documentales. Es posible que los residentes permanentes legales que trabajaron para un local de McDonald’s que es propiedad de la empresa (es decir, no es franquicia) entre el 23 de septiembre del 2012 y el 1 de marzo del 2015 sean elegibles para recibir dicha indemnización si fueron despedidos o se vieron obligados a faltar en el trabajo porque no pudieron mostrar una nueva tarjeta cuando su tarjeta de residencia permanente original venció. Para más información sobre el proceso de obtener pagos retroactivos, véase el procedimiento para reclamaciones del acuerdo http://www.justice.gov/crt/united-states-department-justice-settlement-mcdonald-s-usa-llc.
Los empleados actuales y previos de McDonald’s que tengan preguntas en cuanto a este asunto deberán llamar al 1-844-401-3737 o bien mandar un correo electrónico a [email protected].
La OSC es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en la contratación, el despido o el reclutamiento o la recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias o la intimidación. Las Abogadas Litigantes Jennifer Deines y Silvia Dominguez-Reese y la Especialista en la Igualdad de Oportunidades Joann Sazama de la División de Derechos Civiles trabajaron en este caso.
Para más información sobre las protecciones contra la discriminación en el empleo bajo las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Easton Man Charged with Defrauding Distressed HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christina Scaringi, Special Agent in Charge of the Northeast Region of HUD’s Office of Inspector General, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and James V. Buthorn, Acting Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, announced that TIMOTHY W. BURKE, also known as “Tim Burke,” “William Burke,” “Bill Burke,” “Jeff Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” and “Burt,” 64, of Easton, was arrested today on a federal criminal complaint charging him with operating a long-running fraud scheme that targeted distressed homeowners.
BURKE appeared this afternoon before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained. A detention hearing is scheduled for Monday, November 23, at 11:15 a.m.
As alleged in the criminal complaint, since at least May 2008 and continuing to at least September 2015, BURKE engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property.
The complaint further alleges that BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages, taxes, insurance, association dues, or other expenses, and he failed to pay any rental income he was collecting to the homeowners. The investigation revealed that homeowners often discovered on their own, and to their surprise, that BURKE had rented out their houses. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
The complaint alleges that BURKE’s fraud scheme has involved dozens of residential properties throughout Connecticut, and that BURKE has made hundreds of thousands of dollars to which he was not entitled. As part of the scheme, BURKE undertook extensive efforts to disguise his true identity from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds. The investigation has revealed that BURKE is associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; and The Complete Handyman, LLC.
The complaint further alleges that in approximately 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming. BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to five years imprisonment and three years of supervised release. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry.
The criminal complaint charges BURKE with mail fraud, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individuals who believe they have been victimized by this alleged scheme and citizens with information that will be helpful to this ongoing investigation are encouraged to call 860-240-9735.
This investigation is being conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, and the Connecticut State Police. This case is being prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant U.S. Attorney David T. Huang.
Eagle Butte Man Sentenced for Second Degree BurglaryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on November 16, 2015, by U.S. District Judge Roberto A. Lange.
Jeryn Big Eagle, Sr., age 40, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Big Eagle was indicted for Assault with a Dangerous Weapon and Domestic Assault by a Habitual Offender by a federal grand jury on May 12, 2015. He pled guilty to Assault with a Dangerous Weapon on August 24, 2015.
The conviction arose from a February 14, 2015, incident at the Veterans Center in Eagle Butte, when Big Eagle made accusations against the victim and then physically struck the victim about the face, head, and body multiple times with a closed fist. He then grabbed a red Razor scooter and struck the victim in the forehead.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Big Eagle was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Eagle Butte Man Sentenced for Assault with a Dangerous Weapon and Aiding and AbettingRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon and Aiding and Abetting was sentenced on November 3, 2015, by U.S. District Judge Roberto A. Lange.
Dezmond Two Hearts, age 19, was sentenced to 30 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Two Hearts was indicted for Assault with a Dangerous Weapon and Aiding and Abetting by a federal grand jury on April 14, 2015. He pled guilty on August 11, 2015.
The conviction arose from a March 6, 2015, incident when the victim told Two Hearts and his co-defendant that he did not have any money to lend them. Two Hearts then punched the victim in the face with his fist, and kicked and stomped him in the face and head area with shod feet. Two Hearts and his co-defendant took turns assaulting the victim.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Jay Miller prosecuted the case.
Two Hearts was immediately turned over to the custody of the U.S. Marshals Service.
District Man Pleads Guilty to Assault with Intent to Kill for Stabbing His Ex-GirlfriendRead the Press Release
WASHINGTON – Donta Winslow, 32, of Washington, D.C., pled guilty today to one count of assault with intent to kill while armed for stabbing his ex-girlfriend while they were in her car in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Winslow pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence to be set within the range of 13 to 16 years. The Honorable Michael Ryan scheduled sentencing for Feb. 26, 2016.
According to the government’s evidence, Winslow was previously in a romantic relationship with the victim. She had ended the romantic relationship, however. In the late morning of Aug. 14, 2015, Winslow approached and then got into the victim’s car. At one point, near the intersection of 46th and Meade Streets NE, Winslow forced the victim to pull the car onto a curb. The victim was in the driver’s seat, and Winslow was in the passenger seat.
Winslow took out a knife and stabbed the victim multiple times in the body, including in the back of her neck, back, and chest. The victim was curled down, facing forward in the seat, when Winslow stabbed her. A witness approached the car and confronted Winslow, causing him to get out of the car and run away.
When officers with the Metropolitan Police Department (MPD) responded to the scene, they found the victim motionless on her side. She was transported to the hospital via ambulance. She had approximately 11 stab wounds to her body, and two collapsed lungs. She was admitted to the hospital for almost two months. She has severe spinal cord damage from the stabbing that initially left her paralyzed. Through extensive physical therapy, she has regained some of her motor skills, but remains significantly impaired and unable to walk on her own.
Winslow fled the scene and was apprehended in Washington, D.C., shortly after the incident. He has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department and the U.S. Marshals Service. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Erica Vample and Joyce Arthur, and Victim/Witness Advocate Meshall Thomas. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Delaware County Businessman Sentenced for Selling Counterfeit GoodsRead the Press Release
Stephen Voudouris, Sr., 60, of Newtown Square, PA was sentenced today to a year and a day in prison and six months home detention pursuant to his prior guilty plea to conspiracy, trafficking in counterfeit goods, smuggling counterfeit goods into the United States and wire fraud, announced United States Attorney Zane David Memeger.
The defendant owned and operated Misikko.com, headquartered in Newtown Square, Pennsylvania, an online retailer of luxury hair care appliances, including flat irons and blow dryers. Misikko.com was not an authorized dealer of brands such as CHI, T3 and Babyliss. As he admitted at his guilty plea, Voudouris, Sr. sought out Chinese manufacturing companies from which he and his employees could purchase cheap goods bearing counterfeit trademarks of CHI, T3 and Babyliss. Through Misikko.com, the defendant then resold the counterfeit goods as authentic, for top dollar, to the American public.
In addition, at the direction of Voudouris, Sr., in a scheme to drive consumers to their website and maximize profits, Misikko.com also purported to sell "Breast Cancer Awareness" products. The Misikko.com website was designed to make consumers believe that breast cancer charities would benefit from the purchase of certain pink products. For some products, Misikko.com represented that $25 from every purchase would benefit a prominent breast cancer foundation, but no donations were ever made to a breast cancer charity.
In addition to the prison sentence, the Honorable John R. Padova ordered the defendant to pay $150,346 in restitution to the victim companies and individuals, as well as a fine of $10,000.
The case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Alicia M. Freind and Mary E. Crawley.
Defendant Sentenced to 166 Months for Armed RobberyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Montez Lesha Bishop, 39, of Bay Minette, Alabama was sentenced today by Chief U.S. District Judge William H. Steele to 166 months imprisonment for Hobbs Act robbery and discharging a gun during the robbery. The judge ordered that Bishop undergo 5 years of supervised release upon completing his term of imprisonment, that he receive drug and mental health treatment while incarcerated, and that he pay a $200 mandatory special assessment.
In a 6-day span in December 2014, Bishop committed 5 armed robberies in Bay Minette at 5 different locations: a home, a Yogi Raceway Convenience Store, a Kangaroo Express Convenience Store, a Summit Convenience Store, and a New Horizons Credit Union branch. On December 12, 2014, the Bay Minette Police Department arrested Bishop soon after he robbed the New Horizons Credit Union. In January 2015, Bishop was indicted by a federal grand jury for robbing the 4 businesses. On April 18, 2015, Bishop pled guilty to robbing the Summit Convenience Store and shooting a handgun at a store employee during the robbery. In a plea agreement detailing the offense conduct, Bishop admitted to committing all 5 armed robberies.
The case was investigated by the Federal Bureau of Investigation and the Bay Minette Police Department. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.
Defendant Pleads Guilty in Federal Court to Possessing Medication Stolen from a CVS Pharmacy During the Baltimore RiotsRead the Press Release
Baltimore, Maryland – Rashad Robertson, age 25, of Baltimore, pleaded guilty today to unlawful possession of Alprazolam, a prescription drug stolen during the looting on April 27, 2015 from the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore (CVS Pharmacy).
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
“Federal law enforcement agencies continue to work closely with local police and prosecutors to investigate crimes committed during the Baltimore riots,” said U.S. Attorney Rod Rosenstein.
On April 27, 2015, the CVS Pharmacy was looted and burned. According to his plea agreement, on June 17, 2015, Robertson unlawfully possessed a bottle of Aprazolam that he knew was stolen from the CVS Pharmacy during the April 27 riots. The bottle contained 60 pills of Alprazolam and was found in Robertson’s bedroom. Robertson did not have a prescription for the pills.
Robertson faces a maximum sentence of one year and a $1,000 fine. U.S. District Judge Ellen L. Hollander scheduled sentencing for January 22, 2016, at 10:00 a.m.
On November 17, 2015, Raymon Carter, age 24, of Baltimore, was sentenced to four years in prison for the federal crime of rioting on April 27, 2015, including the arson of the same CVS. Judge Hollander also entered an order requiring Carter to pay restitution of $500,000.
On September 23, 2015, Robert “Meech” Tucker, age 23, of Baltimore, pleaded guilty in federal court to being a felon who possessed a gun on May 4 near the CVS Pharmacy that was burned during street riots the previous week. A citizen notified police officers that a man was armed with a handgun in the Penn-North section of Baltimore. When approached by police officers, Tucker threw a loaded gun on the ground and it fired. He then pretended to be injured. His actions incited misguided bystanders who attacked innocent police officers.
A federal grand jury has indicted Darius Raymond Stewart, age 21, of Baltimore, for malicious destruction of real property by fire, arising from the arson of a liquor store on West North Avenue during the April 27 riots. A federal grand jury has also indicted Donta Betts, age 19, of Baltimore, for attempted arson of a police cruiser, obstructing law enforcement officers during a civil disorder and making a destructive device during the April 27 riots near the CVS Pharmacy. Stewart and Betts have pleaded not guilty, and both remain detained. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The federal crime of rioting, governed by Section 2101 and 2102 of Title 18 of the United States Code, applies when a defendant travels across a state line or uses a facility of interstate commerce, including a telephone, to participate in a civil disturbance involving acts of violence.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department and ATF for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Seema Mittal, who is prosecuting the case.
Cruz Sentenced to 198 Months in Federal Prison After Pleading Guilty to Possession of MethamphetamineRead the Press Release
SALT LAKE CITY – Travis Javier Cruz, age 38, of the Salt Lake City area, who traveled to California in October 2014 to pick up 73.8 pounds of methamphetamine from a supplier destined for distribution in Salt Lake City, will serve 198 months in federal prison. Cruz pleaded guilty to possession of methamphetamine with intent to distribute in May.
U.S. District Court Judge Robert J. Shelby imposed the sentence last week in federal court. He also ordered Cruz to be on supervised release for 60 months after he finishes his prison sentence. Cruz also will forfeit three vehicles and $3,698 in U.S. currency.
As a part of the plea agreement reached with federal prosecutors, Cruz admitted that he traveled to the Orange County area of California on Oct. 28, 2014, to pick up a large quantity of methamphetamine for distribution in the Salt Lake City area. According to a complaint filed in the case, Cruz was already under surveillance by the FBI’s Safe Streets Task Force, in conjunction with the Salt Lake Unified Police Department, the Davis County Sheriff’s Office, and other law enforcement agencies prior to making the trip to California. Law enforcement agents believed that Cruz was running a major methamphetamine distribution ring in the Salt Lake Valley.
Cruz arrived at a hotel in Huntington Beach, where the narcotics transaction would take place, with approximately $300,000 in cash to pay for 70 pounds of narcotics. Cruz admitted meeting with a courier for the methamphetamine source of supply at the hotel on Oct. 28, 2014, and giving him $300,000.
The next day, according to the plea agreement, the courier returned to the hotel with five or six five-gallon buckets. He took the buckets into Cruz’s room. The buckets contained the methamphetamine Cruz planned to distribute in the Salt Lake City area. Cruz admitted that he and others packaged the methamphetamine into plastic wrap and mustard to transport it back to Salt Lake City. The narcotics were placed in a roller bag and two backpacks and loaded into the trunk of the Cruz’s car for transportation back to Salt Lake City.
Agents and officers, who had been conducting surveillance at the hotel, conducted a vehicle stop after the narcotics were loaded in the car. A dog alerted to the presence of narcotics in the trunk of the vehicle. Cruz admitted as a part of the plea agreement that the amount of narcotics recovered was approximately 73.8 pounds. On the same day, officers executed a federal search warrant at a storage unit in Utah and recovered approximately 1.5 pounds of methamphetamine. Cruz admitted it was his intent to distribute the methamphetamine in the Salt Lake City area.
Federal prosecutors argued for a sentence of 252 months in the case, pointing out that Cruz admitted he had made the trip to California for drugs on at least one other occasion and that evidence suggests he has done it on a number of occasions. “Indeed, one could extrapolate, based on the evidence, that Mr. Cruz is responsible for hundreds of pounds of methamphetamine distributed in the Salt Lake Valley. His actions have been seriously destructive to the community, and his sentence should reflect that seriousness,” they wrote in a sentencing memorandum filed in the case. Cruz also has previous criminal history including three convictions related to the operation of a clandestine lab.
“Mr. Cruz pleaded guilty to what appears to be his fourth narcotics trafficking offense. A substantial sentence is clearly warranted given his extensive criminal history as well as the large amount of methamphetamine trafficked in this case” prosecutors told the court.
Cruz was charged with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute in an indictment returned by a federal grand jury in November 2014.
Convicted Sex Offender Sentenced for Failure to RegisterRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Pedro Ramirez (40, Tampa) to 3 years and 10 months in federal prison for failing to register as a sex offender. He pleaded guilty on July 23, 2015.
According to court documents, in 2002, Ramirez was convicted of sexual battery in Hillsborough County and, as a result, is required to register under the Sex Offender Registration and Notification Act (SORNA). Following his conviction, Ramirez moved to Connecticut. In June 2013, he moved back to Hillsborough County and failed to register in Florida as a sex offender. While in Florida, he committed another sex offense against a minor.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist states in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Convicted Felon with Handgun Sentenced to More Than 17 Years in Federal PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge Wm. Terrell Hodges has sentenced Reginald Wardell Howard, Jr. (37, Ocala) to 17 years and 6 months in federal prison for possessing a firearm as a convicted felon. A federal jury found him guilty of the offense on June 17, 2015.
According to evidence presented at trial, officers from the Ocala Police Department were called to a disturbance at a store on November 28, 2014. Officers were told that a man later identified as Howard was in the bathroom with a gun. Officers confronted Howard and a subsequent search revealed a loaded, 9mm handgun inside his left rear pocket. Howard stated that he had the firearm for protection. Witnesses reported that Howard had threatened them while displaying the pistol.
Prior to this incident, Howard had been convicted of numerous felony drug violations. As such, he qualified for an enhanced sentence as an Armed Career Criminal under federal law. At the time of this offense, Howard was under federal supervision and prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Construction Company Owner Charged with Illegally Obtaining Contracts by Using Minority Business’ Name and RegistrationRead the Press Release
PITTSBURGH - A Washington County resident has been indicted by federal grand jury in Pittsburgh on charges of conspiracy to defraud the United States, wire fraud, mail fraud and money laundering, United States Attorney David J. Hickton announced today.
The 14–count indictment, returned on Nov. 17, named Donald R. Taylor, 76, of Eighty Four, Pa., as the sole defendant.
The indictment charges that from in and around January 2012 and continuing thereafter to in and around February 2014, Taylor and persons and entities known and unknown to the United States Attorney, conspired to defraud the United States, engaged in wire and mail fraud, and engaged in money laundering. The indictment alleges that Taylor was the owner and operator of Century Steel Erectors (CSE) a construction company based in the Western District of Pennsylvania. According to the indictment, CSE used the name and registering information of another company, West Mifflin Construction Company (WMCC), to obtain contracts for services. WMCC is a certified Disadvantaged Business Enterprise (DBE) and as such CSE (a non-DBE) was not permitted to use WMCC's DBE status in order to obtain contracts for work.
The law provides for a total sentence of not more than 215 years in prison, a fine of $300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Jonathan B. Ortiz are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the United States Department of Transportation, Office of Inspector General and the Pennsylvania Turnpike Commission conducted the investigation that led to the prosecution of Donald R. Taylor.
Charlotte Man Arrested on Wire Fraud Conspiracy Charges for Attempting to Steal More Than $1 Million Through Unauthorized Wire TransfersRead the Press Release
CHARLOTTE, N.C. – Jamel Ski Yates, a/k/a “Goo,” 42, of Charlotte, was arrested today on federal wire fraud conspiracy and wire fraud charges, for attempting to steal more than $1 million through unauthorized wire transfers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. A federal grand jury returned the superseding criminal indictment against Yates on Wednesday, November 18, 2015, and it was unsealed today, following Yates’ court appearance before U.S. Magistrate Judge David C. Keesler.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making todays’ announcement.
In addition to Yates, six others have already been charged or sentenced for their involvement in the conspiracy:
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Shaka Stayman, 34, of Atlanta, was sentenced to 84 months in prison, after pleading guilty to wire fraud conspiracy and wire fraud charges.
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Barry Shade, 38, of Tamarac, Florida, was sentenced to 24 months and was ordered to pay restitution of $251,147 after pleading guilty to wire fraud conspiracy charges.
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Dural Samuels, 43, of Charlotte, pleaded guilty in September 2015 to wire fraud conspiracy and wire fraud and is currently awaiting sentencing.
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Abiola O. Oginni, 34, of McDonough, Georgia, and Dwayne A. Reynolds, 30, of Snellville, Georgia, have each pleaded guilty to wire fraud conspiracy and are currently awaiting sentencing.
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Anthony Shawn Wilkerson, 45, of Riverdale, Georgia, is currently facing wire fraud conspiracy and wire fraud charges.
According to allegations contained in Yates’ indictment, other filed court documents in this and related cases, and statements made in court:
From at least in or about January 2010 through in or about January 2011, Yates and his conspirators engaged in a financial fraud scheme by which they unlawfully accessed multiple customer accounts maintained by a financial services company located in Charlotte. Yates was the insider who allegedly stole the account holders’ information and gave it to Samuels. Samuels then used a network of conspirators, including Stayman, Shade, Oginni, Wilkerson and Reynolds, who either used their own bank accounts or the bank accounts of other individuals also known as “money mule accounts,” into which the stolen funds were deposited. The conspirators executed numerous fraudulent wire transfers, taking money out of the compromised customer accounts and depositing it into the money mule accounts. The stolen money was then retrieved from the mule accounts through multiple cash withdrawals.
Yates had initial appearance today in federal court and was released on bond. The wire fraud conspiracy offense and the wire offense each carry a maximum prison term of 20 years and a $250,000 fine.
The charges contained in the indictment against Yates are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being handled by the FBI.Assistant U.S. Attorney Thomas O’Malley, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
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Carbon County Man Charged with Producing, Distributing and Receiving, Child PornographyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Lake Harmony man was indicted on November 10, 2015 by a federal grand jury in Scranton on charges of producing, receiving and distributing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Grant Harris, age 36, committed the offenses between 2008 and 2014. The Indictment was made public after Harris was taken into custody November 18, 2015.
The charges stem from an investigation by agents of Homeland Security Investigations, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office.
If convicted of the production charge, Harris faces a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of 30 years in prison. The receipt and distribution charges each carry a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison.
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."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The total maximum penalty under federal law is 70 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Burlington Man Pleads Guilty to Pharmacy Robbery; Admits Two Other RobberiesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Bryan McMahon, 30, of Burlington, pleaded guilty today in United States District Court in Burlington to a charge of Interference with Commerce by Robbery. Chief District Judge Christina Reiss ordered McMahon detained pending his sentencing, which is set for March 14, 2016.
On June 5, 2015, a federal grand jury charged McMahon with robbing the Rite Aid Pharmacy on North Avenue in Burlington, Vermont on April 27, 2015. Pursuant to a written plea agreement, McMahon pleaded guilty to that charge today. According to the plea agreement, McMahon entered the Rite Aid Pharmacy while wearing an orange vest, surgical mask, and rubber gloves. McMahon approached the pharmacy counter, and obtained bottles of Methadone by making threats of force. A short time after he exited the pharmacy, McMahon was apprehended in Ethan Allen Park.
As part of the plea agreement, McMahon admitted to robbing the Lakeside Pharmacy on Pearl Street in Burlington, Vermont on December 18, 2014. For this robbery, McMahon was dressed in ski goggles, a surgical mask, gloves, and a Santa Claus hat when he obtained Oxycontin and Methadone by making threats of force. Also as part of his plea agreement, McMahon admitted to again robbing the Lakeside Pharmacy on Pearl Street on April 3, 2015. For this robbery, McMahon was dressed in aviator-style sunglasses, a surgical mask, and rubber gloves when he obtained Methadone by making threats of force.
McMahon faces up to 20 years of imprisonment and a fine of up to $250,000. His actual sentence will be determined with reference to federal sentencing guidelines.
United States Attorney Eric S. Miller commended the investigative efforts of the Burlington Police Department and the Drug Enforcement Administration.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. McMahon is represented by Assistant Federal Defender Steven L. Barth, Esq
Bucks County Man Charged in Bank RobberyRead the Press Release
PHILADELPHIA - Jeffrey Chernoff, 35, of Richboro, PA was charged today by Indictment with bank robbery and attempted bank robbery, announced United States Attorney Zane David Memeger.
According to the indictment, on October 26, 2015, Chernoff robbed the Bank of America branch at 1801 E. Allegheny Avenue in Philadelphia, and the PNC Bank branch at 1001 E. Erie Avenue. If convicted the defendant faces a maximum possible sentence of 40 years in prison, up to three years of supervised release, a possible fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brian Kandefer Sentenced to 121 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Brian M. Kandefer, age 37, of San Diego, California, was sentenced Wednesday, November 18, 2015, in federal court by Judge Robert L. Miller, Jr. after his guilty plea of wire fraud and money laundering.
Brian Kandefer was sentenced to 121 months imprisonment and ordered to pay $1.4 million dollars in restitution.
According to documents in the case, K2 Capital Management Inc. did business as US Mortgage Bailout and USMortgageBailout.com with physical offices located in La Jolla, California. Brian Kandefer was a 50% owner of K2 Capital Management Inc. dba US Mortgage Bailout and dba USMortgageBailout.com (hereafter "US Mortgage Bailout"). US Mortgage Bailout purported to be and advertised as mortgage "loan experts" which had "helped thousands of homeowners avoid foreclosure." US Mortgage Bailout sold mortgage loan modification products and services to persons, located all over the United States, including the Northern District of Indiana, who were in trouble with their home mortgage loans. As part of the fraud scheme that lasted from 2009 through 2010, US Mortgage Bailout which included Kandefer, used false advertising to defraud clients (victims) out of monies for loan modifications. They also did not properly communicate or represent client interests in the scheme. If they did represent clients for loan modifications, documentation was falsified regarding income and other financials. US Mortgage Bailout had a 100% refund policy for clients who did not receive favorable outcomes, yet clients did not receive any refunds despite requests.
This case was the result of an investigation by the United States Department of Housing and Urban Development, Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division. The case was handled by the Assistant United States Attorney Donald J. Schmid.
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Bradford County Man Charged with Distribution of Bath SaltsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a grand jury in Scranton indicted Corey Strope, age 37, of Sayre, Pennsylvania yesterday with conspiracy to distribute and possession with intent to distribute bath salts.
According to United States Attorney Peter Smith, Strope distributed bath salts between January and July 2015, in and around Bradford County. Bath salts consist of a chemical similar to hallucinogenic drugs. The drugs in this case were allegedly shipped from China.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Sayre Borough Police Department and is assigned to Assistant United States Attorney Todd K. Hinkley for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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