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Thursday 1 October 2015
New York City Man Sentenced for Smuggling Fake Ecstasy PillsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Stevie Coates, 41, of New York, N.Y., who was convicted of smuggling goods into the United States, was sentenced to 36 months imprisonment by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that in the afternoon of October 31, 2010, the defendant drove his vehicle to the Lewiston Bridge Port of Entry seeking entry into the United States from Canada. At secondary inspection, Customs and Border Protection officers discovered nearly 6,000 pills, which had the appearance of MDMA (or “ecstasy”) pills. While subsequent laboratory analysis determined that the pills only contained caffeine, the defendant admitted that he planned to sell the pills for $20 apiece on return to New York City.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy, and U.S. Customs and Border Protection officers, under the direction of Rose Hilmey, Acting Director of Field Operations.
New Orleans Man Sentenced to 27 Years in Heroin Conspiracy Involving Overdose DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 37, a resident of New Orleans, was sentenced today for distributing heroin that resulted in an overdose death and for conspiring to distribute more than a kilogram of heroin in the New Orleans area.
U.S. District Judge Kurt D. Engelhardt sentenced TAYLOR to 324 months in prison, 5 years of supervised release following his prison term, and a $200 special assessment. The judge projected a picture of the victim onto the wall of the courtroom during the sentencing, and the victim’s mother read aloud a letter that she had prepared.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that the defendants had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
Additionally, court records indicate that, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose. Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that co-defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
New Jersey Man Arrested and Charged in Manhattan Federal Court with Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that WILLIAM J. WELLS was arrested this morning on securities fraud and wire fraud charges stemming from his scheme to defraud more than 30 investors of more than $1.5 million through a fraud scheme.
Among other false and misleading statements, WELLS lied to prospective and existing investors by representing, including in fictitious account statements, that he had achieved consistently positive trading returns, when in fact, WELLS’s trading was remarkably unsuccessful and he realized trading losses every year since 2009. Of the money WELLS did not lose in securities trading, WELLS routinely converted investor funds to his own use to pay personal expenses, and he used new investor funds to pay back other investors in a Ponzi-like fashion.
WELLS is expected to be presented today in federal court in Manhattan before United States Magistrate Judge Michael H. Dolinger.
U.S. Attorney Preet Bharara said: “As alleged, William Wells repeatedly lied to his investors, falsely claiming consistently positive returns, when in fact his trading was spectacularly unsuccessful. But his alleged lies did not stop there. He also allegedly used investor money to pay personal expenses, including for private school tuition, and used new investor money to pay back old investors.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Wells didn’t run an investment firm, he ran a Ponzi scheme totaling more than $1.5 million from potential investors. Wells allegedly used the funds to pay some investors to hide his trading losses and to support his personal lifestyle. The FBI is committed to investigating and bringing to justice those who prey upon trusting individuals for their own personal gain.”
According to the Complaint unsealed today in Manhattan federal court[1]:
From September 2009 through the present, WELLS, through his investment firm Promitor Capital LLC (“Promitor Capital”), engaged in a fraudulent scheme to obtain investments by falsely representing that he had achieved consistently positive trading returns in the U.S. equity markets, including through the successful use of options to hedge risk. In truth, WELLS’s trading was remarkably unsuccessful. Between 2009 and the present, WELLS realized trading losses every year and, in total, trading losses in excess of $500,000. In fact, as of September 2015, Promitor Capital had less than $1,000 under management.
In connection with the scheme, WELLS made a series of false and misleading representations to investors, including: (a) that WELLS’s trading was generating consistently positive returns when, in fact, his trading was consistently unsuccessful; (b) that investors were invested in certain stocks at certain times when, in fact, none of the accounts held by Promitor or WELLS held those stocks; and (c) that WELLS had created so-called sub-accounts for clients, for which WELLS purported to execute individualized trading strategies, when, in fact, no such sub-accounts were ever funded. In addition to false and misleading representations made orally and in writing, WELLS also generated wholly fictitious account statements that he provided to his clients.
As a result of these misrepresentations, WELLS obtained more than $1.5 million in investments from more than 30 investors, many of whom were friends, colleagues, or family members. Of the money he did not lose in securities trading, WELLS routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including more than $500,000 for, among other things, credit card bills, payments for WELLS’s car, and for private school tuition. In addition, to hide his trading losses and continue to fund his personal lifestyle, WELLS used new investor funds to pay back other investors. In total, WELLS distributed less than approximately $500,000 back to investors.
* * *
WELLS, 42, was arrested this morning in Valley Cottage, New York. He is charged with one count of securities fraud and one count of wire fraud. The securities fraud count and the wire fraud count each carry a maximum sentence of 20 years in prison and the charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI, and thanked the U.S. Securities and Exchange Commission for its assistance. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
New Haven Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TOMMY BATTLE, 35, of New Haven, pleaded guilty today in Hartford federal court to one count of unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on April 22, 2015, a search was conducted at the residence of BATTLE, who was a parolee. During the search, a parole officer discovered a 9mm semi-automatic handgun, which contained a magazine that held 10 9mm rounds.
BATTLE’s criminal history includes multiple felony convictions, including a conviction for criminal possession of a weapon. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BATTLE is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on January 4, 2016, at which time he faces a maximum term of imprisonment of 10 years. BATTLE has been detained since his arrest on April 22, 2015.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
Moses Lake, Washington Man Sentenced to Three Years in Federal Prison for Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael Thomas Van Dyke, age 39, of Moses Lake, Washington was sentenced after having previously plead guilty on July 2, 2015, to Travel With Intent to Engage In Illicit Sexual Conduct. United States District Court Senior Judge Justin L. Quackenbush, sentenced Van Dyke to a three year (36 month) term of imprisonment. Van Dyke’s three year term of imprisonment is to be followed by a 10 year term of court supervision after he is released from federal prison. In addition, Van Dyke will be required to register as a sex offender.
According to information disclosed during the court proceedings, on September 9, 2013, a woman contacted the Hopewell, Virginia Police Department and reported that her13 year old daughter had been communicating online with an adult man (later identified Van Dyke). The woman also stated that another family member saw the 13 year old in the company of Van Dyke in Hopewell, Virginia on September 6, 2013. The 13 year old girl was interviewed and told police that she met Van Dyke on the Internet social network site Tumblr in August 2013. The girl reported that Van Dyke knew she was thirteen years old. The girl confirmed that she and Van Dyke had chatted online and had telephone conversations and video chats of a sexual nature. The girl described Van Dyke as disabled and in a wheelchair and confirmed that Van Dyke had traveled to meet her in Virginia and had asked her to go somewhere with him, but she had refused.
The 13 year old girl’s family provided a cell phone and computer that the young girl had used to communicate with Van Dyke. A search of the devices revealed the text of online chats that demonstrated the sexual nature of the communication between Van Dyke and the young girl and that the purpose of Van Dyke’s travel to Virginia was illicit sexual conduct with her.
On March 17, 2014, the FBI executed a search warrant at Van Dyke’s residence in Moses Lake. Computers and electronic media were recovered and Van Dyke was interviewed. Van Dyke admitted to traveling to Virginia to meet with the 13 year old girl in September 2013. Evidence consisting of phone photos and various receipts established that Van Dyke traveled from Moses Lake to Virginia on September 5, 2013. Chat logs between the young girl and Van Dyke further confirmed that the purpose for the travel was illicit sexual conduct with her.
Michael C. Ormsby said: “I commend the outstanding investigative work in this case by the Hopewell, Virginia Police Department and the FBI. This is a very serious case that requires the punishment imposed by the Court. The United States Attorney’s Office in the Eastern District of Washington is committed to aggressively prosecuting and seeking appropriate punishment for crimes against children.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Hopewell, Virginia Police Department and the FBI. The case was prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
- Minot Man Sentenced for Possession of Child Pornography
Miami-Dade County Resident Sentenced in Identity Theft Tax Fraud Scheme Involving Deceased and Other Individuals' Personal Identifying InformationRead the Press Release
A Miami-Dade County resident was sentenced to 44 months in prison, followed by three years of supervised release, for his participation in an identity theft tax fraud scheme using deceased and other individuals' personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Joshua Chikudo, 40, previously pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-defendant Curtis Joseph, a/k/a "CJ," 36, of Miami-Dade, pled guilty to one count of wire fraud conspiracy. Sentencing for defendant Joseph is scheduled for October 6, 2015 at 1:00 p.m. before Judge Beth Bloom.
According to court documents, Joseph met with an IRS confidential informant (CI) and discussed a scheme to cash tax refund checks involving PII stolen from a medical clinic. The CI introduced Joseph to an undercover IRS agent. During three separate meetings, Joseph gave the undercover agent a total of thirteen tax refund checks for the undercover agent to cash. In exchange, the undercover agent gave Joseph approximately sixty-five percent (65%) of the check amounts as payment for his participation in the illicit scheme.
Court documents also state that at another meeting, the undercover agent provided Joseph with five IRS-controlled identities, consisting of fictitious PII - names, social security numbers, and dates of birth - to be used by a tax preparer in order to file fraudulent federal tax returns. During a separate meeting, the undercover agent gave Chikudo seven additional IRS-controlled identities that Chikudo intended to include in fraudulent tax return filings. Chikudo asked the undercover agent if he could obtain a business bank account for the purpose of depositing the fraudulent tax refunds into that account to avoid detection. The defendants and the undercover agent agreed that they would split all of the tax refunds equally amongst themselves and a fictitious undercover partner. The undercover agent provided Chikudo with IRS-controlled bank account information to be included on the fraudulent tax returns. The defendants caused six fraudulent federal income tax returns to be filed. The majority of the filings designated the IRS-controlled bank account as the intended recipient of the fraudulent refunds.
Furthermore, court documents state that between April and August of 2013, the defendants filed thirty-two fraudulent federal income tax returns using eleven IRS-controlled identities, to request refunds totaling $197,688. Twenty-one of the returns were joint returns that included the PII of deceased individuals.
During the sentencing, Judge Bloom specifically referenced that back in 2007, Chikudo and been previously enjoined in a $1 million civil action initiated by the IRS for filing fraudulent tax returns claiming fuel tax credits and telephone excise tax credits on behalf of his clients that they were not entitled to claim. The resulting injunction order entered by United States District Court Judge James I. Cohn barred Chikudo from acting as a return preparer, preparing or filing federal tax returns, assisting taxpayers in understating their tax liabilities or evading taxes, and engaging in other conduct that interfered with the administration or enforcement of the internal revenue laws.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced for Filing More Than $3.4 Million in False Refund Claims with the IRSRead the Press Release
A Miami-Dade County resident was sentenced to 24 months in prison, followed by three years of supervised release, for filing false refund claims with the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Mavys Galvez, 32, of Miami, Florida, previously pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.
According to court documents, Galvez filed false 2006, 2007, 2008 and 2009 amended federal income tax returns with the IRS claiming fraudulent refunds. In the returns, Galvez falsely asserted that she and her husband were owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS. In fact, the entities owed no such income to Galvez or her husband, and withheld no such taxes on their behalf. Specifically, Galvez filed a 2006 amended tax return with her husband claiming a tax refund of $1,049,270 based in large part on claimed income and $810,224 of tax withheld by a bank. The tax return also attached a Form 1099-OID purportedly from the bank reflecting those totals, as well as 1099-OID forms from other entities. The filed 1099-OID forms were false.
Court documents indicate that Galvez had previously filed legitimate tax returns for tax years 2006 through 2009, knew that she and her husband had not received the income from the various entities reported on the fraudulent returns, knew that the taxes claimed had not been withheld, and knew that the 1099-OID forms were false. The total amount of fraudulent refunds claimed by Galvez for tax years 2006 through 2009 is $3,424,834.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexico Man Sentenced to More Than Ten Years for Conspiracy and Possession with Intent to Distribute MethRead the Press Release
MISSOULA – A federal judge sentenced Angel Iturbe-Gonzales, 37, of Mexico, to 151 months in federal prison, followed by five years supervised release for conspiracy and possession with intent to distribute methamphetamine. The sentences for both counts will run concurrently. Chief U.S. District Court Judge Dana Christensen issued the sentence.
The indictment and eventual conviction that gave rise to the sentence was initiated by a traffic stop of Gonzales by the Montana Highway Patrol in Gallatin County in April of 2014. During the stop, Gonzales consented to a dog being run around his vehicle. The dog alerted for the presence of narcotics. Two search warrants were obtained and a trap in the vehicle was discovered, which contained approximately 16 pounds of cocaine and more than four pounds each of methamphetamine and heroin. Gonzales was indicted by a grand jury in September of 2014 and arrested in California in January of 2015. He was convicted of both counts in April of 2015 following a jury trial in Butte, Montana.
“The Missouri River Drug Task Force, and similar task forces across the state expand the law enforcement resources that can be brought to bear against the scourge of meth in Montana,” said Montana U.S. Attorney Mike Cotter. “Working together, law enforcement partners have more tools to bring to bear against the social and economic toll Meth takes here. A sentence like this sends a pointed message to the criminals who come to this state with the goal of distributing poisonous wares; that such activity will not be tolerated in Montana.”
“HSI aggressively pursues international organized crime globally and here in Montana,” said David A. Thompson, special agent in charge of HSI Denver. “Bringing Gonzalez to justice to face a significant prison sentence was a collaborative partnership among HSI, the U.S. Attorney’s office, the Missouri River Drug Task Force, the Montana Highway Patrol and the Drug Enforcement Administration. The strength of these law enforcement partnerships makes our communities safer for everyone.
Assistant U.S. Attorney Tara Elliot prosecuted the case. The Case was investigated by the Missouri River Drug Task Force, Homeland Security Investigations (HSI) and the Montana Highway Patrol. The defendant will have to serve at least 85% of his sentence before being released from federal prison.
Manchester Man Sentenced for Making False Statement After Previous Conviction for Possession of Child PornographyRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced today that Keith Bilodeau, 48, of Manchester, New Hampshire, was sentenced to a total of eight years in federal prison after pleading guilty to making a false statement to a United States Probation Officer.
Bilodeau was convicted of possession of child pornography in 2011 and sentenced to three years in prison. In August, 2014, while being supervised by U.S. Probation, he was suspected of being dishonest with his probation officer regarding ongoing criminal activity. A subsequent search of his residence by United States Probation Officers revealed numerous electronic devices which contained sexually explicit images of minor children.
Bilodeau’s supervised release was revoked in February of this year and he was sentenced at that time to two years in prison. He pled guilty to the charge of Making a False Statement to his probation officer on June 25, 2015 and today was sentenced to an additional six years in prison. When released from prison, Bilodeau will continue to be supervised by U.S. Probation for life.
The case was investigated by the U.S. Department of Homeland Security and the Office of United States Probation. This case was prosecuted by Assistant U.S. Attorney Helen White
Major Fertilizer Producer Mosaic Fertilizer, LLC to Ensure Proper Handling, Storage and Disposal of 60 Billion Pounds of Hazardous WasteRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with Mosaic Fertilizer LLC that will ensure the proper treatment, storage and disposal of an estimated 60 billion pounds of hazardous waste at six Mosaic facilities in Florida and two in Louisiana. The settlement resolves a series of alleged violations by Mosaic, one of the world’s largest fertilizer manufacturers, of the federal Resource Conservation and Recovery Act (RCRA), which provides universal guidelines for how hazardous waste must be stored, handled and disposed. The 60 billion pounds of hazardous waste addressed in this case is the largest amount ever covered by a federal or state RCRA settlement and will ensure that wastewater at Mosaic’s facilities is properly managed and does not pose a threat to groundwater resources.
At Mosaic’s eight facilities in Florida and Louisiana, hazardous waste from fertilizer production is stored in large piles, tanks, ditches and ponds; the piles can reach 500 feet high and cover more than 600 acres, making them some of the largest manmade waste piles in the United States. The piles can also contain several billion gallons of highly acidic wastewater, which can threaten human health and cause severe environmental damage if it reaches groundwater or local waterways.
Under the settlement, Mosaic Fertilizer will establish a $630 million trust fund, which will be invested until it reaches full funding of $1.8 billion. These funds will cover the future closure of four Mosaic facilities—the Bartow, New Wales and Riverview plants in Florida and the Uncle Sam plant in Louisiana—and also be put toward the treatment of hazardous wastewater at and long-term care of those facilities and two additional facilities which are already undergoing closure. The Mosaic Company, Mosaic Fertilizer’s parent company, will provide financial guarantees for this work, and the settlement also requires Mosaic Fertilizer to submit a $50 million letter of credit.
Mosaic will also spend $170 million on projects to reduce the environmental impact of manufacturing and waste management programs at its facilities and $2.2 million on two local environmental projects. Mosaic will also pay a $5 million civil penalty to the United States and $1.55 million to the State of Louisiana and $1.45 million to the State of Florida, who joined the Department of Justice and EPA as plaintiffs in this case.
“This settlement represents our most significant enforcement action in the mining and mineral processing arena, and will have a significant impact on bringing all Mosaic facilities into compliance with the law,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Moreover, through this settlement, we establish critical financial assurance to cover the enormous closure and care costs at all these facilities. This sets the standard for our continuing enforcement of RCRA in the entire phosphoric acid industry. And, it reflects our emphasis on working jointly with impacted states.”
“This case is a major victory for clean water, public health and communities across Florida and Louisiana,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Mining and mineral processing facilities generate more toxic and hazardous waste than any other industrial sector. Reducing environmental impacts from large fertilizer manufacturers operations is a national priority for EPA, as part of our commitment to pursuing cases that have the biggest impact on protecting public health.”
The alleged violations in this case stem from storage and disposal of waste from the production of phosphoric and sulfuric acids, key components of fertilizers, at Mosaic’s facilities in Bartow, Lithia, Mulberry and Riverview, Florida, and St. James and Uncle Sam, Louisiana. Mosaic failed to properly treat, store, and dispose of hazardous waste, and also failed provide adequate financial assurance for closure of its facilities.
As part of EPA’s National Enforcement Initiative for mining and mineral processing, the agency has required phosphate fertilizer production facilities to reduce the storage volumes of hazardous wastewaters, ensure that waste piles and ponds have environmentally-protective barriers installed and verify the structural stability of waste piles and ponds.
Mosaic has committed to spending approximately $170 million over the next several years to implement an innovative reconfiguration of their current operations and waste management systems. The development of these of industry-leading technologies will optimize resource efficiency and decrease the amount of raw materials required to produce fertilizer. This case spurred Mosaic to develop advanced engineering controls and practices to recover and reduce some types of acid wastes that result from fertilizer production, which will reduce the amount and toxicity of the waste materials stored at Mosaic’s facilities and the severity of potential spills while cutting Mosaic’s costs for treating material at closure, which would otherwise have been categorized as hazardous waste.
Under the settlement, Mosaic will also fund a $1.2 million environmental project in Florida to mitigate and prevent certain potential environmental impacts associated with an orphaned industrial property located in Mulberry, Florida. In Louisiana, Mosaic will spend $1 million to fund studies regarding statewide water quality issues.
Mosaic produces phosphorus-based fertilizer that is commonly applied to corn, wheat and other crops across the country. Sulfuric acid is used to extract phosphorus from mined rock, which produces large quantities of a solid material called phosphogypsum and wastewater that contains high levels of acid. EPA inspections revealed that Mosaic was mixing certain types of highly-corrosive substances from its fertilizer operations, which qualify as hazardous waste, with the phosphogypsum and wastewater from mineral processing, which is a violation of federal and state hazardous waste laws.
A consent decree formalizing the settlement was lodged today in the U.S. District Courts for the Middle District of Florida and the Eastern District of Louisiana and is subject to a 45-day public comment period and approval by the federal court.
For a copy of the consent decree, visit www.justice.gov/enrd/consent-decrees.
Lynn Tax Preparer Charged with Federal Tax FraudRead the Press Release
BOSTON – A Lynn tax preparer was charged yesterday in U.S. District Court in Boston for filing fraudulent personal federal tax returns and attempting to obstruct the Internal Revenue Service (IRS).
Arismendy Ramos, a/k/a Arismendi Ramos, a/k/a Aris Almonte, was charged in an Information with four counts of filing false tax returns and two counts of obstructing the IRS.
According to the Information, Ramos owned and operated Almonte Tax, a tax preparation service in Lynn, and personally prepared tax returns for numerous clients. From 2008 through 2013, Ramos allegedly filed false forms with the IRS claiming that he paid clients to work for him when in fact they had never been employed or paid by him. Ramos then claimed the bogus wages as business expenses on his own tax returns, thereby reducing his personal tax liabilities. Furthermore, Ramos instructed two clients that they should lie if they were asked about the false wages.
The charging statutes provide a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Departamentos de Justicia y Trabajo de y el Departamento de Trabajo e Industria del Estado de Washington Realizaron un Acuerdo para Mejorar el Acceso para Trabajadores con Conocimientos Limitados del Idioma InglésRead the Press Release
WASHINGTON – Los Departamentos de Justicia y Trabajo de EE.UU. han realizado un acuerdo con el Departamento de Trabajo e Industrias [Department of Labor and Industries (L&I)] del Estado de Washington en resolución de demandas de derechos civiles entabladas por trabajadores con conocimientos dominio limitado del Inglés [limited English proficient (LEP)] que alegaron que fueron objeto de discriminación por origen nacional en el programa de compensación del trabajador del estado. Los trabajadores alegaron que se les negó acceso a intérpretes y a información vital en sus idiomas principales. El acuerdo exige mejoras importantes en los servicios de asistencia idiomática para trabajadores LEP.
“Este acuerdo simboliza cómo el gobierno federal y estatal pueden trabajar juntos en mejorar el acceso a servicios gubernamentales para comunidades con conocimientos limitados del inglés”, señaló la Procuradora General Adjunta Suplente Principal Vanita Gupta, líder de la División de Derechos Civiles del Departamento de Justicia de EE.UU. “El Departamento de Justicia seguirá adelante con su labor de garantizar que estas comunidades tengan acceso igualitario a servicios gubernamentales”.
“La comprensión de un sistema de beneficios gubernamentales puede resultarle sobrecogedor a cualquiera”, dijo la Fiscal Federal Annette L. Hayes del Distrito Oeste de Washington. “Esto es especialmente así para los miembros de nuestra comunidad que solicitan beneficios de compensación del trabajador y cuyo idioma principal no es el inglés. Los cambios a las prácticas de Trabajo e Industrias de Washington establecidos en este acuerdo conciliatorio garantizarán que se protejan los derechos de todos los trabajadores, independientemente de su país de origen”.
“Felicito a L&I por su compromiso de trabajar con el Centro de Derechos Civiles y el Departamento de Justicia para eliminar las barreras idiomáticas para trabajadores con conocimientos limitados del inglés", dijo la Directora Naomi M. Barry-Pérez del Centro de Derechos Civiles del Departamento de Trabajo de EE.UU.”
Los Departamentos de Justicia y Trabajo trabajaron con L&I en el desarrollo de un memorando de acuerdo [memorandum of agreement (MOA)] que documenta el compromiso de L&I de desarrollar e implementar un programa de acceso idiomático que asegure que las personas LEP tengan acceso significativo a programas, actividades e información de L&I. El MOA y la nueva Política de acceso idiomático de L&I incluyen los siguientes compromisos:
- Todo el personal de L&I se asegurará de que las personas LEP reciban servicios de asistencia idiomática sin cargo.
- L&I desarrollará un Plan de Acceso Idiomático que establezca las acciones de gestión necesarias para implementar la Política de Acceso Idiomático y asegure el cumplimiento de las leyes federales de derechos civiles, incluidas las tareas a realizarse, la asignación de responsabilidades, plazos, procesos, recursos, controles de calidad y actualizaciones periódicas.
- L&I traducirá a idiomas extranjeros sus formularios de reclamación y solicitud, formularios de quejas y consentimiento, cartas y avisos y materiales electrónicos.
- L&I agregará miembros asesores al Comité Directivo de Acceso Idiomático para que representen los intereses de los trabajadores LEP y a la comunidad de empleadores de Washington.
- L&I presentará informes de monitoreo detallados que documenten su implementación del MOA.
La investigación fue realizada en forma conjunta por la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance Section (FCS)] de la División de Derechos Civiles del Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Washington y el Centro de Derechos Civiles [Civil Rights Center (CRC)] del Departamento de Trabajo de EE.UU. El Título VI de la Ley de Derechos Civiles de 1964, Sección 188 de la Ley de Inversión en Fuerza Laboral de 1998, y sus reglamentaciones correspondientes prohíben la discriminación por origen nacional y exigen que los beneficiarios de asistencia financiera federal brinden acceso significativo a programas y actividades a las personas LEP por medio de servicios de asistencia idiomática gratuitos.
La FCS ha trabajado con una serie de tribunales, agencias de fuerzas del orden público, agencias correccionales estatales y otras entidades gubernamentales para garantizar el cumplimiento del Título VI y el acceso a servicios de asistencia idiomática para personas LEP. Haga clic aquí para más información sobre la FCS. Para más recursos relacionados con las personas LEP, diríjase a LEP.gov, el portal de Internet Interagencias Federal.
El CRC hace valer las leyes antidiscriminatorias aplicables a beneficiarios de asistencia federal del Departamento de Trabajo de EE.UU. y, en algunas circunstancias, de otros departamentos y agencias federales. Para obtener más información sobre el CRC, llame al 202-693-6500 (voz) o 800-877-8339 (‘relay’) o visite el portal en Internet del CRC.
- Información para clientes con un dominio limitado del inglés (Limited English Proficient, LEP) que participan en programas y actividades del Departamento de Trabajo e Industrias del Estado de Washington
- Washington State Department of Labor and Industries Memorandum of Agreement
Lexington Home Health Agency and Estate of Deceased Owner Agree to Judgment of $16 Million to Resolve Allegations of Health Care FraudRead the Press Release
LEXINGTON – Nurses’ Registry and Home Health Corporation (“Nurses’ Registry”) and the Estate of its former owner, the deceased Lennie House, have agreed to the entry of a judgment against them for $16,000,000 to resolve allegations of widespread healthcare fraud.
This civil judgment ends an investigation and False Claims Act litigation alleging that Nurses’ Registry, at the direction of Lennie House, fraudulently billed Medicare for medically unnecessary home health services, as well as services tainted by kickbacks provided by the company and House to local physicians and others who referred patients to Nurses’ Registry.
“For years, Nurses’ Registry abused its privileges as a provider in the Medicare program, and the trust of the medical community and general public,” said United States Attorney Kerry B. Harvey. “This settlement returns ill-gotten gains to the Medicare Trust Fund and ensures that Nurses’ Registry will have no further opportunity to defraud federal health care programs. Our office will continue to vigorously pursue health care fraud in this district, against companies and individuals, no matter how difficult or protracted the litigation may be.”
Under House’s direction, Nurses’ Registry engaged in systematic false billing that allowed them to wrongfully obtain millions of dollars from the Medicare program between 2004 and 2011. Medicare pays for home health services only when a physician signs a plan of care certifying that the patient is homebound and has a reasonable need for skilled nursing care or certain therapy services.
To advance its health care fraud, Nurses’ Registry falsified medical records to make it appear as if patients had a medical need for skilled nursing or therapy services, or appear as if the patients were homebound. At times, Nurses’ Registry employees even forged physician signatures on medical records to falsely “certify” that the patient required Nurses’ Registry’s services. Nurses’ Registry, at the direction of House, frequently re-certified patients for more and more home health services – and billed such services to Medicare – long after the patient ceased to meet Medicare’s eligibility requirements.
In addition to billing Medicare for unnecessary or non-reimbursable home health services, Nurses’ Registry and House provided tickets to athletic events and concerts, and provided other things of value, to doctors and referral sources in order to induce or reward patient referrals. This practice was so commonplace that physicians would contact the home health agency to ask for tickets to popular events, such as Taylor Swift concerts or the Kentucky Derby.
House instructed the company’s marketing employees to deliver bottles of liquor and other enticements to referral sources in order to ensure more valuable patient referrals that could be billed to Medicare. These transactions violated the federal Anti-Kickback Statute as well as the Stark Law, which prohibits home health agencies from billing for services referred to them by physicians with whom they have a financial relationship.
“We are focused on combatting fraud in the home health arena,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Settlements like this one send a clear message that false claims to Medicare will not be tolerated.”
The United States filed a complaint against Nurses’ Registry, Lennie House, and Vicki S. House, House’s wife, in September 2011, following an investigation into a whistleblower lawsuit filed by former employees Alisia Robinson-Hill and David Price. After several years of litigation, this settlement, in conjunction with a prior settlement with Vicki House for $1,082,416, fully resolves that action in favor of the government. Under the terms of the settlement agreement, Nurses’ Registry will be sold to an independent third party within 90 days, and 70 percent of the net sale proceeds will be remitted to the federal government. In addition, the Estate of Lennie House will have one year to sell off all of its assets and will turn over 75 percent of those net sale proceeds to the government.
Ms. Robinson-Hill and Mr. Price will receive a share of the settlement proceeds pursuant to the qui tam provisions of the False Claims Act.
The investigation conducted prior to the government filing its complaint was conducted by the Department of Health and Human Services, Office of the Inspector General; the Office of the Kentucky Attorney General, Medicaid Fraud and Abuse Control Unit (“MFCU”); the Federal Bureau of Investigation; and the U.S. Attorney’s Office. The litigation was handled by Assistant United States Attorneys Christine Corndorf and Paul McCaffrey, with assistance from the Commercial Litigation Branch of the Department of Justice’s Civil Division.
Laguna Pueblo Man Sentenced for Conviction on Assault by Strangulation and Attempted Manslaughter ChargesRead the Press Release
ALBUQUERQUE – Duane Day, 25, a member and resident of Laguna Pueblo, N.M., was sentenced yesterday afternoon in federal court in Albuquerque, N.M., to 51 months in prison followed by three years of supervised release for his assault by strangulation and attempted manslaughter charges.
Day was arrested on May 22, 2014, on a criminal complaint charging him with attempted manslaughter, assault of an intimate partner by strangling, and child abuse. According to the complaint, on May 12, 2014, in Laguna Pueblo within Cibola County, N.M., Day assaulted the victim, a Laguna Pueblo woman, by strangling her and causing her to lose consciousness. Day fled the scene of the assault with the victim’s two young children, an 11-month-old and a two-year-old, to a nearby mesa. Court documents indicate that the victim suffered a severe stroke as a result of the strangulation which required her to undergo emergency brain surgery to relieve swelling and bleeding in the brain.
Day subsequently was indicted on June 11, 2014, and charged with (1) assaulting an intimate partner by strangling; (2) attempted manslaughter; and (3) endangering the lives and health of two children.
On March 11, 2015, Day pled guilty to Counts 1 and 2 of the indictment. In entering his guilty plea, Day admitted that on May 12, 2014, he assaulted the victim by placing his knee on her neck and placing his hand over her mouth causing her to suffocate. Day acknowledged that he attempted to kill the victim by impeding the victim’s breathing causing her to lose consciousness.
U.S. Attorney Damon P. Martinez commended the FBI, BIA and Pueblo of Laguna Tribal Police Department on their outstanding investigation of this case and also noted the invaluable work of the Victim Advocates who assisted the victim to reclaim her life as she recuperated from the life threatening injuries she sustained at the hands of her intimate partner. “Victim Advocates play a critically important role in violent crime cases. In addition to assisting victims to obtain the services they require to ease the impact of victimization and to assert their rights in the criminal justice system, they often speak on behalf of victims,” said U.S. Attorney Martinez. “The Victim Advocates from the BIA, FBI, Laguna Pueblo and the U.S. Attorney’s Office did all that and more in this case. In this case, the Victim Advocates helped the victim find her own voice so that she no longer views herself as a victim. Today she is a survivor who is using her voice to help other women who are victims of domestic violence.”
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA Office of Justice Services, and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney David Adams prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
KC Man Sentenced for Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a fraudulent tax return preparation scheme that claimed $433,365 in fraudulent income tax refunds.
Demichael A. Johnson, 37, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to two years in federal prison without parole. Today’s sentence will run consecutively to the seven-year sentence Johnson is currently serving in federal prison for drug trafficking. The court also ordered Johnson to pay $67,281 in restitution to the government.
On June 3, 2015, Johnson pleaded guilty to making a false claim. Co-defendant Mika Francis, 40, of Lee’s Summit, Mo., has pleaded guilty to the same offense and is scheduled to be sentenced on Feb. 4, 2016.
Johnson and Francis, along with others, participated in a scheme using false IRS Form W-2s. They solicited friends and acquaintances to file their tax returns using false W-2 information. These “taxpayers” had little to no legitimate income and would not otherwise have to file tax returns. According to court documents, the scheme resulted in a total actual loss to the government of $329,000.
Johnson admitted that he caused a tax return to be filed in his name for tax year 2010 that claimed a refund of $13,184. Johnson claimed income that he did not actually receive and falsely claimed two dependents. The government has evidence of seven other instances of Johnson’s involvement in false claims, with a total criminal tax loss of $75,928.
Francis admitted that she caused a tax return to be filed in her name for the tax year 2010 that claimed a refund of $8,048. Francis falsely claimed income that she did not receive.
This case is being prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by IRS-Criminal Investigation.
Justice Department Announces BHF-Bank (Schweiz) AG Reaches Resolution under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that BHF-Bank (Schweiz) AG (BHF) has reached a resolution under the department’s Swiss Bank Program.
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 agreement signed today, BHF agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute this bank for tax-related criminal offenses.
BHF was established in 1974 as a wholly-owned Swiss subsidiary of BHF-BANK Aktiengesellschaft (BHF-BANK AG), a private bank located in Germany. Deutsche Bank AG purchased BHF-BANK AG in 2010, and in 2014, BHF-BANK AG was sold to a consortium of investors. BHF is headquartered in Zurich and has a branch in Geneva. The name of the group is now BHF Kleinwort Benson Group.
BHF opened and maintained undeclared accounts for U.S. taxpayers. It chose to continue to service U.S. customers without disclosing their identities to the Internal Revenue Service (IRS) or taking steps to ensure that clients were compliant with U.S. tax laws and without considering the impact of U.S. criminal law on that decision.
BHF offered a variety of traditional Swiss banking services that it knew could assist, and did assist, U.S. clients in the concealment of assets and income from the IRS, such as “hold mail” services, which minimized the paper trail between the U.S. clients and undeclared assets and income, and debit cards, which allowed U.S. clients to access their undeclared accounts without having to visit BHF.
In 1982, Plinius Management Limited, Zurich (Plinius), a trust company, was formed as a wholly-owned subsidiary of BHF to provide special services for wealthy clients, which included advice regarding trusts, foundations, fiduciary agreements and holding companies in order to protect assets and minimize tax liability. Plinius had no employees, and BHF provided it with staff and infrastructure.
Plinius also assisted with referrals to establish various types of structures, including Liechtenstein Anstalten and Stiftungen, and British Virgin Islands and Panamanian entities. Plinius did not create the structures; instead, it would contact an external trust company or law firm in Liechtenstein to set up the entity within the agreed-upon jurisdiction. While Plinius’ relationship managers did not have access to the Forms A held by BHF that identified the beneficial owners, in some cases they were aware of the ultimate beneficial owner(s) of the accounts. Four subsidiary-related structured accounts were established for U.S. persons, which improperly sheltered U.S. taxpayer-clients and hid their assets from the IRS.
U.S.-related accounts, including offshore structured accounts, came into BHF through its relationship managers, through external asset managers or otherwise. For example, one account in the name of an offshore entity was referred to a BHF manager from a U.S.-based structuring lawyer prior to 2008, and transferred to BHF from another Swiss bank. The file contained a Form W-8BEN and certification of non-U.S. persons for the offshore corporate accountholder. BHF’s management approved opening the account even though the account also held U.S. securities. There was no Form W-9 completed or provided to BHF for the U.S. beneficial owner. BHF did not confirm that the U.S. beneficial owner was compliant with U.S. tax obligations.
In the fourth quarter of 2000, BHF signed a Qualified Intermediary (QI) Agreement with the IRS. The QI regime provided a comprehensive framework for U.S. information reporting and tax withholding by a non-U.S. financial institution with respect to U.S. securities. The QI Agreement was designed to help ensure that, with respect to U.S. securities held in an account at BHF, non-U.S. persons were subject to the proper U.S. withholding tax rates and that U.S. persons were properly paying U.S. tax.
BHF implemented a policy that every client had to sign either a Form W-9 or a Declaration of Non-U.S. Person Status, which required the customer to declare whether he or she was a U.S. person for tax purposes. Some U.S. clients who did not want to have their identities disclosed to the IRS could avoid detection by declining U.S. securities. Approximately five clients refused to sign a Form W-9, but BHF nevertheless continued to service these clients’ accounts and kept them open.
While participating in the Swiss Bank Program, BHF encouraged existing and prior accountholders and beneficial owners of U.S.-related accounts to provide evidence of tax compliance or of participation in any of the IRS Offshore Voluntary Disclosure Programs or Initiatives or to disclose their accounts to the IRS through such a program. BHF sought waivers of Swiss bank secrecy from all accountholders and obtained waivers for more than 50 percent of its accounts. BHF has also provided certain account information related to U.S. taxpayers that will enable the government to make requests under the 1996 Convention between the United States of America and the Swiss Confederation for the Avoidance of Double Taxation with respect to Taxes on Income for, among other things, the identities of U.S. accountholders.
Since Aug. 1, 2008, BHF held a total of 125 U.S.-related accounts, comprising total assets under management of approximately $202,964,006. BHF will pay a penalty of $1.768 million.
While U.S. accountholders at BHF who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at BHF must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Charles M. Duffy, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Attorney Kimberle E. Dodd and Senior Litigation Counsel Nanette L. Davis 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 $53 Million in Grant Awards to Reduce Recidivism Among Adults and YouthRead the Press Release
New Second Chance Grants Announcement Will Impact Nearly 45 Jurisdictions around the Country
The Justice Department announced today that it will award grants totaling $53 million to 45 jurisdictions, to reduce recidivism among adults and youth returning to their communities after confinement.
The Second Chance Act (SCA) programs, administered through the Office of Justice Programs’ (OJP’s) Bureau of Justice Assistance (BJA) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) support state, local and tribal community organizations in their efforts to reduce recidivism, provide reentry services and support research programs.
SCA funding covers a broad range of services, training, mentorship and technical assistance programs.
BJA grant awards:
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SCA Two-Phase Adult Reentry Demonstration, 10 awards totaling $7,774,158;
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SCA Reentry Program for Adults with Co-Occurring Substance Abuse and Mental Disorders, 10 awards totaling $5,989,258;
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SCA Mentoring, six awards totaling $5,983,401;
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National Reentry Resource Center (supplement), one award totaling $5,281,751
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SCA Statewide Recidivism Reduction (supplements), four awards totaling $3,995,861;
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SCA Technology Career Training Program, four awards totaling $2,949,536;
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SCA Statewide Recidivism Reduction Planning, seven awards totaling $594,222;
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SCA and Corrections Visiting Fellows, two awards totaling $487,551; and
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Vera Institute of Justice Postsecondary Education/Pell Experiment (supplement), one award totaling $200,000.
OJJDP grant awards:
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SCA Supporting Latino/a Youth from Out-of-Home Placement to the Community, six awards totaling $2,900,000;
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SCA Strengthening Relationships Between Young Fathers and Their Children: A Reentry Mentoring Project, seven awards totaling $2,939,067;
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SCA Strengthening Families and Children of Incarcerated Parents, three awards totaling $1,239,276;
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SCA Comprehensive Statewide Juvenile Reentry System Reform Implementation, three awards totaling $2,196,894;
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SCA Smart of Juvenile Justice: Enhancing Youth Access to Justice Initiative, Training and Technical Assistance (to provide legal services to youth reentering the community), one award totaling, $708,106;
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SCA Smart on Juvenile Justice: Community Supervision, six awards totaling $1,000,000;
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SCA Smart on Juvenile Justice: Community Supervision Training and Technical Assistance, one award totaling $650,000; and
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Initiative to Develop Juvenile Reentry Measurement Standards, one award totaling $750,000.
These programs include training and job placement for incarcerated or detained adults and juveniles in technology-related jobs; training for mentors to assist pre- and post-release; screening and assessments pre-release and evidence-based treatment after incarceration to improve outcomes for incarcerated individuals with substance abuse and mental disorders; and assistance for jurisdictions providing reentry services to members of Native American tribes.
These grants also provide supplemental funding to improve existing reentry research and programs, including ongoing data-driven assessments of the needs, policy barriers and resource gaps for successful reentry. Additional funding will enable the Vera Institute to deliver technical assistance in post-secondary education and corrections and to share best practices through its resource center.
In addition, the Justice Department awarded two fellowships: its first-ever Second Chance Visiting Fellow, Daryl Vincent Atkinson, who will engage formerly incarcerated individuals to gather what is needed for successful reentry; and a Corrections Visiting Fellow, Dr. Emily Wang of Yale University, who will measure the risk of hospitalization following prison release among Medicaid beneficiaries and the impact of community primary care on patient recidivism.
Lastly, the National Reentry Resource Center (NRRC) will continue to offer training and technical assistance for grantees and administer the What Works in Reentry Clearinghouse, a “one-stop shop” for research on the effectiveness of a wide variety of reentry programs and practices. The NRRC collaborates with the Attorney General’s Federal Interagency Reentry Council (FIRC), and other federal agencies.
For more information on the NRRC, please visit: www.nationalreentryresourcecenter.org.
For more information on FIRC, please visit: csgjusticecenter.org/nrrc/projects/firc/.
About OJP
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: BJA; the Bureau of Justice Statistics; the National Institute of Justice; OJJDP; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
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Joint Investigation Dismantles Violent New Haven Street Gang; Members Charged with 6 MurdersRead the Press Release
New Haven – U.S. Attorney Deirdre M. Daly, ATF Special Agent in Charge Daniel J. Kumor and New Haven Police Chief Dean Esserman today announced federal murder, racketeering, firearms, narcotics and money laundering charges against several members and associates of the Red Side Guerilla Brims, a violent New Haven street gang. In 2011 and early 2012, members and associates of the gang are alleged to have committed six murders and four attempted murders.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of one of its alleged leaders, JEFFREY BENTON, transported crack cocaine and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.
“The Red Side Guerilla Brims were a plague on the streets of New Haven,” said U.S. Attorney Daly. “This indictment charges six members of this violent New Haven street gang with racketeering to include murders, shootings, armed robberies and assaults, as well as firearms and narcotics offenses. Other Red Side gang members and associates have or are expected to plead guilty to similar charges shortly. We thank our law enforcement partners, particularly the ATF and New Haven Police Department, for their tireless dedication to this long-term investigation. We are confident that these prosecutions targeting our most violent offenders, together with our anti-violence program Project Longevity which calls upon gang members to give up their violent lifestyle, have reduced the number of murders and shootings in New Haven making New Haven a safer and better place to live.”
“Today’s announcement demonstrates ATF’s commitment to working with its federal, state and local law enforcement partners to combat violent gun crime and to dismantle criminal street gangs and their ongoing criminal enterprise,” said ATF Special Agent in Charge Kumor. “Moreover, it shows that these criminal street gangs will not get away with such acts of violence, which wreak fear and havoc on the citizens of our communities.”
“Cooperation between all levels of law enforcement and the community are what’s required to achieve progress, and this impressive collaboration between the New Haven Police, ATF, U.S. Attorney’s Office and other valuable partners has solved many violent crimes,” said Chief Esserman. “Too many young men in our community have been lost to gun violence, and too many family members and friends are grieving. Violence in our city will not be tolerated. I’m proud of those who’ve put in the long hours to see this operation through. The City of New Haven is safer for it.”
The Victims
- On February 23, 2011, an individual was shot and wounded in New Haven.
- On March 18, 2011, Derrick Suggs was shot and killed in New Haven.
- On March 29, 2011, and individual was shot and wounded in New Haven.
- On April 20, 2011, Kevin Lee was shot and killed in New Haven.
- On June 24, 2011, Donell Allick was shot and killed in New Haven.
- On September 19, 2011, Darrick Cooper was shot and killed in Hamden.
- On October 21, 2011, an individual was shot in the face in New Haven.
- On December 22, 2011, an individual was shot in the face in New Haven.
- On December 23, 2011, Joseph Zargo was shot and killed in New Haven.
- On March 19, 2012, Donald Bolden was shot and killed in New Haven.
- On December 23, 2014, an individual was assaulted with a firearm in New Haven.
The Connecticut Indictment
On September 30, 2015, a federal grand jury in New Haven returned a 34-count indictment charging the following six individuals with engaging in a pattern of racketeering activity, including murder and other violent offenses:
JEFFREY BENTON, a.k.a. “Tall Man” and “Fresh,” 30, of New Haven
KEITH YOUNG, a.k.a. “Capo,” “Bapo” and “Poncho,” 25, of Hamden
ROBERT SHORT, a.k.a. “Santana,” 29, of New Haven
TREVOR MURPHY, a.k.a. “Snookie,” 27, of West Haven
ROBERT HARRIS, a.k.a. “Skully Mack,” 19, of New Haven
CHRISTOPHER GRAHAM, a.k.a. “Ugg,” 28, of New Haven
As alleged in the indictment:
On February 23, 2011, BENTON and LUIS PADILLA, who is charged separately, conspired to murder an individual.
On April 20, 2011, BENTON, PADILLA and others, including RODRIGO RAMIREZ and MILES PRICE, who are charged separately, murdered Kevin Lee while attempting to rob marijuana from Lee.
On June 24, 2011, BENTON, YOUNG, PADILLA and KAVON ROGERS, who is charged separately, murdered Donell Allick.
On September 19, 2011, YOUNG and SHORT murdered Darrick Cooper.
On October 21, 2011, BENTON and HARRY ANDERSON, who is charged separately, conspired to murder an individual.
On December 23, 2011, MURPHY murdered Joseph Zargo.
On March 20, 2012, BENTON and another individual, who has since been murdered, murdered Donald Bolden.
On December 23, 2014, HARRIS and GRAHAM used a firearm to assault an individual
In addition to the racketeering charge, the indictment charges BENTON and YOUNG with engaging in a racketeering conspiracy; BENTON, YOUNG, SHORT and MURPHY with committing a violent crime in aid of racketeering (VCAR) related to one or more of the charged murders; HARRIS and GRAHAM with VCAR related to a charged assault with a dangerous weapon; BENTON, SHORT, MURPHY, HARRIS and GRAHAM with firearms offenses; HARRIS and GRAHAM with narcotics offenses; and BENTON and YOUNG with money laundering offenses related to wire transfers of narcotics proceeds from Maine to Connecticut.
YOUNG and MURPHY were arrested yesterday, and HARRIS was arrested this morning. They appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven and are presently detained.
BENTON has been in federal custody since May 17, 2012, and is serving a 108-month sentence for trafficking narcotics. SHORT is in state custody on a parole violation.
GRAHAM is currently being sought by law enforcement.
As to BENTON, YOUNG, SHORT and MURPHY, if convicted of the charge of VCAR murder, each defendant faces a mandatory term of life imprisonment or death if the government seeks the death penalty in this case. The most serious charge against HARRIS and GRAHAM, brandishing a firearm in relation to a crime of violence, carries a mandatory term of imprisonment of seven years and a maximum term of imprisonment of life.
Previously-charged RSGB Members and Associates
On September 29, 2015, LUIS PADILLA, a.k.a. “Chewie,” 22, of New Haven, pleaded guilty to engaging in a pattern of racketeering activity, VCAR murder, and possession of a firearm by a previously convicted felon. In pleading guilty, PADILLA admitted his involvement in the murders of Derrick Suggs, Kevin Lee and Donell Allick, and the attempted murders of two others. PADILLA also admitted his involvement in a home invasion robbery in New Haven in May 2012, as well as his role in the trafficking of narcotics in Connecticut and Maine.
On June 16, 2015, RODRIGO RAMIREZ, a.k.a “Rico,” 34, of New Haven, pleaded guilty to racketeering and admitted his involvement in the murder of Kevin Lee and in a conspiracy to distribute crack cocaine in Maine.
On July 1, 2014, a grand jury returned an indictment charging MILES PRICE, a.k.a. “Molly Rock,” 27, of New Haven, with possession with intent to distribute and distribution of crack cocaine, and possession of a firearm by a previously convicted felon.
On May 6, 2015, KAVON ROGERS, 28, of New Haven, pleaded guilty to possession of a firearm by a previously convicted felon.
On May 20, 2015, a grand jury returned an indictment charging HARRY ANDERSON, a.k.a. “Ace,” 22, of New Haven, with one count of VCAR related to the attempted murder of an individual, and one count of discharging a firearm in furtherance of a crime of violence.
On September 8, 2015, DELTON PYLES, a.k.a. “Koolie,” 26, of New Haven, pleaded guilty to attempted assault with a dangerous weapon in aid of racketeering, brandishing a firearm in furtherance of a crime of violence, and conspiracy to distribute 28 grams or more of crack cocaine.
The Maine Indictment
On February 12, 2015, a grand jury in the District of Maine returned an indictment charging JEFFREY BENTON and ten other individuals, including RSGB members and associates, with offenses related to the distribution of crack cocaine, the illegal purchase of more than 20 firearms, and the transportation of firearms and drug proceeds to Connecticut. BENTON is awaiting trial in Maine.
On July 30, 2015, WILLIE GARVIN, a.k.a. “Tank” and “Black,” 22, of New Haven, pleaded guilty in the District of Connecticut to possession of a firearm by a previously convicted felon, conspiracy to interfere with commerce by robbery, and discharging a firearm in furtherance of a crime of violence in relation to the shooting of an individual on December 22, 2011. GARVIN also agreed to have his Maine case transferred to Connecticut and pleaded guilty to conspiracy to distribute crack cocaine and conspiracy to violate federal firearms laws.
On September 2, 2015, CHRISTIAN TURNER, a.k.a. “P,” 29, of New Haven, pleaded guilty in the District of Maine to conspiracy to distribute crack cocaine and conspiracy to violate federal firearms laws.
On August 17, 2015, TORRENCE BENTON a.k.a. “T-Black” and “Scotty,” 28, of New Haven, pleaded guilty in the District of Maine to one count of conspiracy to distribute crack cocaine.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
These cases are being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. The District of Maine case is being prosecuted by Assistant U.S. Attorney Joel Casey.
Jaime Dávila Reyes, aka “Peluche” Sentenced to 21 Years in PrisonRead the Press Release
SAN JUAN, Puerto Rico – Today, Jaime Dávila-Reyes, aka “Peluche,” was sentenced to 21 years in prison for drug trafficking and firearm violations, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. On June 12, 2015, the defendant plead guilty to four counts from three separate indictments, charging conspiracy to possess with intent to distribute controlled substances. He also plead guilty to using and carrying firearms during and in relation to a drug trafficking crime.
Since the year 2006, and continuing up to and until the return of the Indictment in Criminal Case 09-390(ADC), Jaime Dávila-Reyes and others, did knowingly and intentionally, combine, conspire, and agree with each other and with diverse other persons known and unknown to knowingly and intentionally possess with intent to distribute, heroin, cocaine, cocaine base, and marihuana in protected locations throughout the Municipality of Naguabo and Caguas, Puerto Rico, specifically in Ignacio Morales-Dávila Public Housing Project in Naguabo and Jose Gautier-Benítez in Caguas, Puerto Rico.
In the second indictment, Criminal Case 13-435(FAB), the object of the conspiracy was to distribute controlled substances at the Gautier Benitez Public Housing Project for financial gain and profit. Dávila-Reyes was a leader of the drug trafficking organization and controlled the drug distribution points located at the Gautier Benitez Public Housing Project.
In the third indictment, Criminal Case 13-534(CCC), the object of the conspiracy was to distribute controlled substances at the Morales Ward, in the Municipality of Caguas for significant financial gain and profit. As a leader in Barriada Morales, Dávila-Reyes was in control of the drug distribution points. He directly supervised the operations at Barriada Morales, received the proceeds from the distribution of narcotics sold during the span of his leadership in the conspiracy and was in charge of maintaining control of all the drug distribution activities. He also received payment or “rent” from other drug point owners in Barriada Morales. He also acted as an enforcer and supplier within the conspiracy.
“The U.S. Attorney’s Office will continue working along with state and federal law enforcement agencies to investigate and prosecute criminals who deprive our communities of a peaceful and safe environment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our prosecutors and investigative agencies who did not rest until they were able to arrest Davila-Reyes and successfully bring him to justice.”
The defendant was sentenced by United States District Court Chief Judge Aida Delgado-Colón. The cases were being prosecuted by Assistant U.S. Attorneys César Rivera-Giraud, Alberto López-Rocafort and Teresa Zapata-Valladares.
Harrold Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Harrold, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on September 28, 2015, by U.S. District Judge Roberto A. Lange.
Lonnie Patrick Big Eagle, age 39, was sentenced to 33 months in custody, followed by 2 years of supervised release, $78.20 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Big Eagle was indicted by a federal grand jury on January 14, 2015. He pled guilty on July 6, 2015.
The conviction stemmed from an incident between August 9, 2014, and August 10, 2014, when the victim, who had been in a relationship with Big Eagle for several years and has five children with him, went to the pow wow in Lower Brule. She took four of her five children with her and left her youngest son with Big Eagle. She started receiving phone calls that Big Eagle was drunk and she returned home. Once she got there, the victim went inside the house, and Big Eagle came in after her and started telling her she was not going anywhere. He also made accusations against her and called her names. Big Eagle threatened to break the windows of the victim’s vehicle and knocked her phone out of her hand. She tried to get in her car, but Big Eagle struck the window with a lawn chair, so she went around her car in order to avoid getting hit by Big Eagle.
Big Eagle started kicking the victim, who then fell, stood back up, and went around the vehicle. Big Eagle continued to follow her and grabbed her shirt. She tripped and fell to the ground, and Big Eagle got on top of her and hit her in the face multiple times, causing blood to run down her face. The assault ended when Big Eagle’s brother intervened to help the victim. The victim then went to her aunt’s house to get help, and was seen by an ambulance attendant.
Big Eagle has several prior arrests and two prior convictions for domestic violence.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Big Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Guardian Industries Corp. to Cut Harmful Air Pollution at Flat Glass Manufacturing Plant in TexasRead the Press Release
DALLAS —The Department of Justice and the Environmental Protection Agency (EPA) have announced a settlement with Guardian Industries Corp. that will resolve alleged violations of the Clean Air Act at Guardian’s flat glass manufacturing facilities throughout the U.S. One of those facilities is located in Corsicana, Texas, noted U.S. Attorney John Parker of the Northern District of Texas.
Under the proposed settlement, Guardian will invest more than $70 million to control emissions of nitrogen oxide (NOX), sulfur dioxide (SO2), particulate matter (PM) and sulfuric acid mist (H2SO4) from all of its flat glass manufacturing facilities. Guardian will also fund an environmental mitigation project valued at $150,000 to reduce particulate matter pollution in the San Joaquin Valley in California and pay a civil penalty of $312,000.
Guardian has operated its flat glass manufacturing facility in Corsicana since 1980. The EPA alleged that major facility modifications undertaken by the company beginning in 1993 led to a production increase at the Corsicana facility, and consequently, significant net emissions increases of air pollutants that occurred without Guardian obtaining the required Clean Air Act permits and without complying with the Act’s requirements regarding the installation of pollution control technology, emission limits, monitoring, record-keeping, and reporting.
“We commend Guardian Industries for its commitment to reduce emissions of harmful air pollutants from its Corsicana facility and others it operates in the United States,” said U.S. Attorney Parker. “By requiring phased-in pollution control and emissions monitoring equipment at Guardian’s Corsicana facility, this agreement appropriately balances the promotion of manufacturing and the protection of clean air for all Texas residents.”
“This settlement is a great example of a cooperative, company-wide effort to reduce air pollution and will mean cleaner air for communities across the country, where glass manufacturing is currently a significant source of the air pollutants that cause serious lung and heart problems,” said Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “We are also particularly grateful to the states of Iowa and New York, as well as the San Joaquin Valley Air Pollution Control District, all of whom were active partners in achieving this important outcome for the American people.”
“Air pollution from flat glass facilities can impact communities hundreds of miles away, which is why today’s announcement is so crucial to address pollution at the source and protect public health,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “By investing in pollution control equipment and funding a mitigation project that will protect the health of low-income residents, Guardian is setting an example for the flat glass industry for how to control harmful air emissions at its facilities.”
The settlement resolves allegations that Guardian violated the Clean Air Act and state air pollution control plans when it made major modifications to its flat glass furnaces that significantly increased harmful air emissions. This settlement is part of EPA’s ongoing National Enforcement Initiative addressing Clean Air Act New Source Review and Prevention of Significant Deterioration program violations and is the agency’s first settlement involving the flat glass manufacturing sector. Flat glass, also known as float glass, is used as windows for office buildings and homes as well as for automobile windshields.
The $150,000 mitigation project with the San Joaquin Air Pollution Control District will provide incentives to low-income residents living in the San Joaquin Valley to replace or retrofit inefficient, higher-polluting wood-burning appliances with cleaner-burning, more energy-efficient appliances. The San Joaquin Valley is an area with poor air quality.
EPA expects that the pollution controls required by the settlement will reduce harmful emissions by 7,300 tons per year, including approximately 6,400 tons per year of NOx, 550 tons per year of SO2, 200 tons per year of PM and 140 tons of H2SO4. The mitigation project in California will yield additional reductions of PM. These emissions reductions will result in significant human health and environmental benefits for communities. In addition to the Corsicana plant, Guardian’s flat glass manufacturing facilities are also located in Kingsburg, California, DeWitt, Iowa, Carleton, Michigan, Geneva, New York, Floreffe, Pennsylvania, and Richburg, South Carolina.
SO2 and NOX have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Once airborne, these pollutants can also convert into particulate matter. PM, especially the fine particles, can travel deep into a person’s lungs causing severe respiratory impacts, such as coughing, decreased lung function, and chronic bronchitis. Fine PM is also associated with cardiovascular impacts and even premature death. H2SO4 irritates the skin, eyes, nose and throat and lungs, and exposure to high concentrations can lead to more severe health impacts.
The states of Iowa and New York actively participated in the settlement and will each receive $78,000 of the total penalty. The United States will receive $156,000. The San Joaquin Valley Air Pollution Control District also actively participated in the settlement.
The proposed consent decree was lodged Tuesday in U.S. District Court for the Eastern District of Michigan and is subject to a 30-day public comment period and final court approval.
For more information on the settlement and to read the proposed settlement, visit http://www2.epa.gov/enforcement/guardian-industries-corp-clean-air-act-settlement.
For more information on the settlement or to read a copy of the consent decree, visit
http://www.justice.gov/enrd/consent-decrees.# # #
Grocery Store Owner Charged with Trafficking SNAP BenefitsRead the Press Release
PHILADELPHIA - Mohammed Uddin, 51, of Philadelphia, PA, was charged by indictment, unsealed today, with defrauding a government assistance program, announced United States Attorney Zane David Memeger. Uddin is charged with 15 counts of wire fraud and 13 counts of trafficking in SNAP benefits. SNAP is the Supplemental Nutrition Assistance Program, formerly known as the federal Food Stamp program, run by the United States Department of Agriculture’s Food and Nutrition Service to reduce and end hunger in the United States.
Uddin owned and operated Al Madina Halal Meat & Grocery, a retail grocery store, located at 6637 Castor Avenue in Philadelphia. According to the indictment, the defendant trafficked SNAP benefits by purchasing those benefits from customers of Al Madina Halal Meat & Grocery in exchange for cash, which is illegal. It is further alleged that between January 2012 and September 2015, as a result of his trafficking activities, defendant sought and received from USDA, redemption of more than $1 million in SNAP benefits.
If convicted, defendant Uddin faces a substantial period of incarceration, restitution to the program, a $2,800 special assessment, up to three years of supervised release, and possible fines.
The case was investigated by the United States Department of Agriculture Office of Inspector General and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former State Fraud Enforcement Official is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 40, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which PATRICK must serve in home confinement, for submitting a fraudulent application for a personal mortgage modification.
According to court documents and statements made in court, from approximately October 2012 through May 2013, while he was employed as the Director of Investigations for the State of Connecticut Department of Social Services (DSS), Office of Quality Assurance, PATRICK applied for a mortgage modification through JP Morgan Chase under the Making Home Affordable program, a federal initiative designed to assist homeowners who have experienced a decline in income access secure loans at lower rates. The application requested assistance in connection with a property PATRICK owned in East Hartford.
During the application process, PATRICK represented that the East Hartford property was his primary residence and was owner occupied when, in fact, the property was not his primary residence and he did not occupy it. PATRICK also fabricated State of Connecticut paystubs and lied about his assets in order qualify for the program. Specifically, PATRICK claimed total assets of $500 in one checking account to show that he had experienced a loss of income causing a hardship when, in fact, he had thousands of dollars spread out over multiple accounts at several institutions and his rate of pay had not diminished.
The investigation revealed that, in connection with the loan application, PATRICK faxed fraudulent documents to JP Morgan Chase from DSS offices and used a DSS fax coversheet.
In his capacity as the Director of Investigations, PATRICK was responsible for coordinating and conducting activities to prevent, detect and investigate fraud, waste, abuse and overpayments in the Connecticut Medicaid, Care4Kids, Supplemental Nutritional Assistance and Connecticut Energy Assistance Programs. PATRICK’s salary was partially paid for by the federal Centers for Medicare and Medicaid Services, which is a federal agency within the U.S. Department of Health and Human Services.
On June 8, 2015, PATRICK pleaded guilty to one count of mail fraud.
This matter was investigated by the Connecticut Public Corruption Task Force, which includes the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former School Bus Driver Indicted for Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former school bus driver has been indicted by a federal grand jury for receiving and possessing child pornography.
Shawn Allen Swan, 39, of Eugene, Mo., was charged in a two-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Sept. 28, 2015. That indictment was unsealed and made public today upon Swan’s arrest and initial court appearance. Swan remains in federal custody pending a detention hearing on Tuesday, Oct.6, 2015.
Swan was employed as a school bus driver by a contractor for the Jefferson City School District.
The federal indictment alleges that Swan received and distributed child pornography over the Internet on Sept. 29, 2013. Swan is also charged with possessing child pornography between Sept. 17, 2013, and April 30, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Boone County Cybercrimes Task Force and the Cole County, Mo., Sheriff’s Department.
Former Peanut Company Officials Sentenced to Prison for Their Roles in Salmonella-Tainted Peanut Product OutbreakRead the Press Release
Two former officials of the Peanut Corporation of America (PCA) were sentenced to prison today in Albany, Georgia, for their roles in a conspiracy to defraud their customers by shipping salmonella-positive peanut products before the results of microbiological testing were received and falsifying microbiological test results, the Department of Justice announced today. Last week, PCA’s former president received 28 years in prison, the largest criminal sentence ever given in a food safety case.
Samuel Lightsey, 50, of Blakely, Georgia, a former operations manager at PCA’s Blakely plant, was sentenced by Senior U.S. District Court Judge W. Louis Sands of the Middle District of Georgia to serve 36 months in prison to be followed by three years of supervised release. Daniel Kilgore, 46, also of Blakely, and a former operations manager at PCA’s Blakely plant, was sentenced to serve 72 months in prison to be followed by three years of supervised release.
Both Lightsey and Kilgore pleaded guilty to conspiracy, mail and wire fraud, and the sale of misbranded and adulterated food. Additionally, both Lightsey and Kilgore served as witnesses in the 2014 trial of Stewart Parnell, 61, of Lynchburg, Virginia, the former owner and president of PCA; Michael Parnell, 56, of Midlothian, Virginia, Stewart Parnell’s brother, who worked at P.P. Sales and was a food broker who worked on behalf of PCA; and Mary Wilkerson, 41, of Edison, Georgia, who held various positions at PCA’s Blakely plant, including receptionist, office manager and quality assurance manager. Lightsey was on the witness stand during nine trial days and Kilgore testified as a witness during five trial days.
The trial, which led to the convictions of Stewart Parnell, Michael Parnell and Mary Wilkerson, established that tainted food led to a salmonella outbreak in 2009 with more than 700 reported cases of salmonella poisoning in 46 states. According to the Centers for Disease Control and Prevention, based on epidemiological projections, that number translates to more than 22,000 total cases, including nine deaths. During the sentencing phase of the case, the court found that the evidence presented at trial linked PCA’s contaminated peanut products to the victims’ illnesses.
“Today’s sentences are a just result,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “They reflect the roles that the defendants played in these terrible acts, their acceptance of responsibility for those roles, and their willingness to assist the government, albeit after the fact, in ensuring that all of those who engaged in criminal activity were held accountable. The Department of Justice will continue to work aggressively with its partners to ensure that the American people are protected from food that is adulterated or misbranded.”
The government presented evidence at trial to establish that Stewart Parnell and Michael Parnell, with Lightsey and Kilgore, participated in several schemes by which they defrauded PCA customers and jeopardized the quality and purity of their peanut products. Specifically, the government presented evidence that the defendants misled customers about the presence of salmonella in their products. For example, the Parnells, Lightsey and Kilgore fabricated certificates of analysis (COAs) that accompanied various shipments of peanut products. COAs are documents that summarize laboratory results, including test results concerning the presence or absence of pathogens in food. According to the evidence, on several occasions, the Parnells, Lightsey and Kilgore participated in a scheme to fabricate COAs that stated that the food at issue was free of pathogens when in fact there had been no testing of the food or tests had revealed the presence of pathogens.
The government also presented evidence that demonstrated that when the U.S. Food and Drug Administration (FDA) officials visited PCA’s Blakely plant to investigate the outbreak, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to questions posed by those officials.
“By making sure that the individuals involved in the corporate fraud at PCA were held accountable, I am confident that the message to other executives is clear,” said U.S. Attorney Michael J. Moore of the Middle District of Georgia. “Because we all know that it is people who make decisions about what goes on behind the corporate curtain, we'll be looking to hold those individuals personally accountable when they steer their businesses down the path of fraud. Mr. Kilgore and Mr. Lightsey acknowledged their wrongdoing, and today their sentences reflect not only their acceptance of that responsibility, but also the requirement of accountability.”
“Today’s sentencing in federal court will afford these defendants, former corporate officers at Peanut Corporation of America, plenty of time to reflect on their roles in the fatal 2009 salmonella outbreak as a result of their criminal conduct,” said Special Agent in Charge J. Britt Johnson of the FBI Atlanta Field Office. “It is the FBI’s hope that this will provide some solace to the families of those that died and the many more that suffered as a result of this outbreak.”
On Sept. 21, Judge Sands sentenced Stewart Parnell to serve 336 months in prison to be followed by three years of supervised release, Michael Parnell to serve 240 months in prison to be followed by three years of supervised release and Mary Wilkerson to serve 60 months in prison to be followed by two years of supervised release.
The case was prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Moore thank the investigative efforts of the FBI and the FDA’s Office of Criminal Investigations.
Former Oregon Woman Pleads Guilty for Conspiring to File Fraudulent Income Tax Returns Claiming More than $1 Million in RefundsRead the Press Release
A former resident of Portland, Oregon, pleaded guilty today to conspiring to file fraudulent income tax returns claiming more than $1 million in refunds, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Billy J. Williams of the District of Oregon.
According to the plea agreement, Tataneisha White, 42, admitted that during 2010, she conspired with other individuals to prepare and file more than 227 fraudulent income tax returns. The false information on the tax returns included fictitious wage and withholding information and fraudulent refundable credits. White has agreed to pay $626,750 in restitution to the Internal Revenue Service (IRS), which is the amount of fraudulent claims for refunds that were deposited into bank accounts under her control.
White also pleaded guilty to one count of theft of government funds and one count of filing a false claim.
White faces a statutory maximum sentence of 10 years in prison for the theft of government funds count, a statutory maximum sentence of 10 years in prison for the conspiracy count and a statutory maximum sentence of five years in prison for the false claims count. White also faces a maximum potential sentence of three years of supervised release and a fine of up to $250,000 for each count of conviction.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lori Hendrickson and Ryan Raybould of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office in Portland for their valuable assistance in this case.
Former Nashville Airport Official Pleads Guilty to $1.1 Million Fraud and Bribery Scheme Involving Airport ContractorsRead the Press Release
John T. Howard, Jr., 45, of Nashville, Tenn., pleaded guilty today to three felony charges resulting from his role in a fraudulent invoice scheme and his solicitation and receipt of a bribe, announced David Rivera, United States Attorney for the Middle District of Tennessee. Howard was formerly an Assistant Vice President of the Metropolitan Nashville Airport Authority (“MNAA”), a public entity responsible for the operation of the Nashville International Airport.
Howard was charged in a criminal information on September 25, 2015, and pleaded guilty today to one count of conspiring to commit wire fraud, one count of soliciting and receiving a bribe, and one count of money laundering.
“Persons who hold a position of public trust and abuse their position to enrich themselves with taxpayer money will be held strictly accountable,” said U.S. Attorney David Rivera. “The United States Attorney’s Office and our law enforcement partners will aggressively pursue public corruption at all levels.”
In a hearing before U.S. District Court Judge Aleta A. Trauger, Howard admitted conspiring with certain MNAA contractors to submit fraudulent invoices to MNAA for construction and repair work that they had not performed, overseen, or verified. Howard instructed one contractor to submit fraudulent invoices to MNAA, and also agreed that this contractor would recruit other contractors to submit fraudulent invoices. Howard approved these fraudulent invoices and then accepted cash payments from the contractors. Howard acknowledged that the total amount paid by MNAA in connection with these fraudulent invoices was more than $1.1 million.
Howard also admitted asking a contractor to purchase more than $49,000 in airline tickets to Las Vegas for players, coaches, and others affiliated with a youth basketball organization run by Howard. In return, Howard awarded an MNAA cleaning job to this contractor.
Howard faces up to 20 years in prison on the conspiracy count and up to 10 years in prison on the counts of bribery and money laundering. Howard will also be ordered to pay restitution to MNAA, and will face forfeiture of the proceeds of his offense. Howard will be sentenced by Judge Trauger on January 28, 2016.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service- Criminal Investigation and the Office of the District Attorney General for Davidson County. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Harrison County Supervisor Kim Savant Sentenced for Conspiracy to Commit BriberyRead the Press Release
Gulfport, Miss - Former Harrison County supervisor Kim Savant, 65, of Gulfport, was sentenced by U.S. District Judge Sul Ozerden today to sixty months in federal prison followed by two years of supervised release for conspiracy to commit bribery, announced U.S. Attorney Gregory K. Davis, IRS - Criminal Investigation Special Agent in Charge Jerome McDuffie and FBI Special Agent in Charge Donald Alway. Savant was also ordered to pay a $20,000 fine.
Savant previously pled guilty to a criminal information charging him with conspiracy to commit bribery in connection with his role as a board member of the Harrison County Utility Authority. Savant admitted that, from January 2011 through January 2013, while he was a supervisor for Harrison County and a member of the board of the Harrison County Utility Authority, he conspired with the owner of a company that performed work for the utility authority and accepted bribe payments in the amount of $1,500 per month in exchange for his official actions such as voting on the awarding of contracts, payments, emergency work, and other items.
U.S. Attorney Davis praised the efforts of special agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation for their work on the case, and Assistant U.S. Attorney Ruth Morgan who prosecuted the case.
Former Employee Steals Nearly $200,000 from Employer: Heading to Prison for more than Two YearsRead the Press Release
A former employee of Crossroads Mobile Maintenance in Williamsburg, Iowa, who stole nearly $200,000 was sentenced today to more than two years in federal prison.
Jeremy Murphy, age 33, from Marion, Iowa, received the prison term after a June 16, 2015, guilty plea to one count of wire fraud.
In a plea agreement, Murphy admitted that while working for Crossroads Mobile Maintenance, he made fraudulent charges on a company credit from April 2013 through August 2014. Murphy further admitted that he had set up a fake company and then used his company credit card to make charges purporting to be in payment to that company for work performed for Crossroads. In fact, the payments eventually went into Murphy’s personal bank account. Over the course of the scheme, he made $195,375.27 in fraudulent charges on the company credit card.
Murphy was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to twenty-seven months’ imprisonment. A special assessment of $100 was imposed and he was ordered to make $187,241.87 in restitution to Crossroads’ insurance companies. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Murphy was released on conditions previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Williamsburg Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-00052.
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Former Carnival Worker Pleads Guilty to Felony Murder for Role in Death of Medina Comic Book CollectorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Donald R. Griffin, 37, of Rochester, NY, pleaded guilty to committing a murder in aid of a racketeering enterprise, before U.S. District Judge Richard J. Arcara. The charge carries a penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that Griffin was one of three individuals who broke into the Medina, NY home of 78 year old Homer Marciniak in the early morning hours of July 5, 2010. The intent of the burglary was to steal Marciniak’s valuable collection of comic books with an estimated value of $30,000. During the course of the burglary, Marciniak woke up and stumbled into the hallway where he encountered Griffin and the others. The defendant struck Marciniak in the face causing lacerations. After Griffin and the others left, Marciniak was transported by ambulance to Medina Memorial Hospital where his lacerations were sutured. However, following his release from the hospital’s emergency room, Marciniak went into cardiac arrest and died a short time later.
Medical evidence that the government was prepared to offer at trial demonstrated that the blow Griffin struck, as well as the emotional trauma caused by the burglary, directly contributed to Marciniak’s cardiac arrest and resulting death.
Rico Vendetti, the former owner of the East Side Gold and Audio Pawn Shop and Al’s Green Tavern on North Goodman Street in Rochester, engineered the burglary. He was convicted of Racketeering Influenced Corrupt Organization (RICO) Conspiracy and is awaiting sentencing.
Defendants Terry Stewart and Brandon Meade were also convicted in connection with this case.
The two other individuals involved in the burglary were Juan Javier, a juvenile at the time of the burglary who was convicted of robbery in Orleans County Court, and Albert Parsons who will be tried in federal court beginning on December 8, 2015 along with co-defendants Arlene Combs and Dayon Shaver.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation on the part of Special Agents from the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, the Orleans County Sheriff’s Department, under the direction of Sheriff Scott Hess, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, the Medina Police Department, under the direction of Chief Jose Avila and Officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for February 3, 2016 at 1:00 p.m. before Judge Arcara.Family Members Arrested on Federal ChargesRead the Press Release
DALLAS — Four members of an Arlington, Texas, family were arrested earlier this week on charges outlined in a federal criminal complaint, unsealed late yesterday, stemming from their alleged conspiracy to defraud the Social Security Administration (SSA) by feigning mental illnesses to fraudulently collect Social Security benefits, announced U.S. Attorney John Parker of the Northern District of Texas.
Charged in the criminal complaint are Doreen Mitchell, 53, and her two sons, Michael Mitchell, 29, and Sonny Mitchell, 27, and her cousin, John Mitchell, a/k/a “Patrick Rena,” 58. Each defendant made an initial appearance in federal court before U.S. Magistrate Judge Paul Stickney, who ordered that all four remain in custody pending detention hearings set for tomorrow, Friday, October 2, 2015, and Monday, October 5, 2015.
According to the complaint, beginning in 1978 and continuing through the present, Doreen Mitchell, John Mitchell, Michael Mitchel and Sonny Mitchell conspired together to conceal, or fail to disclose, the true activity level and medical condition of Doreen Mitchell, Michael Mitchell and Sonny Mitchell, which would have affected each person’s continued entitlement to Supplemental Security Income (SSI) payments. This was done to secure benefits in a greater amount or quantity than was due or when no such benefit was authorized.
The SSA’s ability to determine an applicant’s medical and financial eligibility for the SSI program is directly dependent upon the SSA’s access to accurate and current information regarding that applicant. If an applicant is initially found to be eligible, and therefore becomes an SSI recipient, the SSA’s ability to determine that recipient’s continuing eligibility, and the correct monthly benefit due that recipient, is directly dependent upon the SSA’s ongoing access to accurate and current information regarding that recipient. The SSA requires disabled SSI recipients to advise the SSA of any improvements in their medical condition, their return to work of any kind, and any changes in their income, resources, address, living arrangements, family size or composition, or family income or resources.
Over the 37-year period beginning in 1978 and continuing to the present, SSA paid and continues to pay SSI benefits each month to Doreen Mitchell, Michael Mitchell and Sonny Mitchell. As of August 31, 2015, the SSA has paid approximately $461,913 in benefits based on the representation that these three individuals were disabled.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 day to present the matter to a federal grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for this offense as charged is five years in federal prison and a $250,000 fine.
The SSA’s Office of the Inspector General/Cooperative Disability Investigations Unit is investigating. Special Assistant U.S. Attorney Nicole Dana is in charge of the prosecution.
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El Salvadoran Man Guilty of Illegally Reentering the United States After Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Willian Santos-Velasques, of El Salvador, pleaded guilty to an Information charging him with illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith.
Santos-Velasques was found in Manchester, New Hampshire, on July 13, 2015 when he was observed by agents of the Department of Homeland Security Immigration and Customs Enforcement riding as a passenger in a vehicle. Santos-Velasques was familiar to ICE agents because he had been previously deported by ICE officers working in New Hampshire. An investigation determined that Santos-Velasques was deported twice in 2014 from Louisiana and Texas and once in 2015 from Texas.
Santos-Velasques pled guilty to knowingly reentering the United States after previously having been deported to his native El Salvador and was sentenced to time served since his arrest by Bureau of Immigration and Customs Enforcement on July 13, 2015.
Santos-Velasques will again be deported.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Ecuadorian National Charged with Tax Refund FraudRead the Press Release
BOSTON – An Ecuadorian national residing in New York City was arrested and charged on Tuesday, Sept. 29th in connection with his role in a stolen identity tax refund fraud scheme.
Ricardo E. Candelo, 58, was charged with one count of theft of public money. He was arrested at his home in Queens, New York and had an initial appearance in U.S. District Court in Brooklyn, New York. Candelo was released on conditions and ordered to appear in U.S. District Court in Boston on Oct. 6, 2015, before Magistrate Judge David H. Hennessy.
According to the criminal complaint, in 2012, federal agents learned that a New York criminal organization was searching for a way to cash fraudulently obtained federal income tax refund checks. Thereafter, with the assistance of a cooperating witness, agents arranged a series of undercover meetings with members of the New York organization. During these meetings, which took place in South Attleboro, Mass. between July and September 2012, Candelo and his associates delivered federal income tax refund checks totaling over $75,000. As part of the undercover operation, agents cashed these checks and returned the proceeds to the New York organization as instructed. All of the refund checks involved in the scheme trace back to fraudulent federal income tax filings submitted without the authorization of the tax payer.
The charging statute provides a sentence of no greater than 10 years in prison, three years supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Lisa A. Quinn, Special Agent in Charge of U.S. Secret Service, made the announcement today. The case is being prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Dominican Man Pleads Guilty to Misrepresenting A Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Richard Arias-Aquasvivas, of the Dominican Republic, has pleaded guilty to a one-count indictment alleging that he misrepresented a social security number while attempting to get a New Hampshire drivers license at the Nashua office of the New Hampshire Department of Motor Vehicles.
Agents of the Department of Homeland Security Immigration and Customs Enforcement were called to the Nashua office of the New Hampshire Division of Motor Vehicles on July 15, 2015 to provide investigative assistance relating to a man attempting to obtain a New Hampshire driver’s license. The individual insisted he was an American citizen born in Puerto Rico. ICE officers attempted to obtain digital fingerprints of the individual but his fingertips had been mutilated and the agents were unable to obtain a positive identification.
Subsequent investigation allowed the agents to identify the individual as Arias-Aquasvivas. Inked fingerprints confirmed that identity and that Arias-Aquasvivas was the subject of a previous deportation order.
Arias-Aquasvivas will be sentenced at 11:00 AM on January 12, 2016, and will be deported after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the New Hampshire State Police. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Dominican Man Guilty of Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – Onix Abreu, of the Dominican Republic, pled guilty late this morning to a one-count Information alleging that he illegally reentered the United States after having been previously deported.
On June 15, 2015 agents of the Department of Homeland Security Immigration and Customs Enforcement approached Abreu at the Salem office of the New Hampshire Division of Motor Vehicles. Abreu was at the office attempting to obtain a New Hampshire driver’s license under a false identity. Abreu admitted to the agents that his real name was Onix Abreu and that he had been deported previously. Fingerprint analysis confirmed Abreu’s identity. An investigation established that Abreu was deported in 2005 at Alexandria, Louisiana.
Abreu will be sentenced at 10:00 AM on January 6, 2016, and will be deported after serving his sentence.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Doctor Arrested for Illegal Distribution of More Than Ten Thousand Oxycodone Pills, Resulting in One Known DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James A. Hunt, Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William J. Bratton, Commissioner of the New York Police Department (“NYPD”), announced the unsealing of a Complaint against a doctor and a co-conspirator who are alleged to have participated in a drug distribution conspiracy involving the prescription painkiller oxycodone. As alleged, the doctor, ALFRED RAMIREZ, sold medically unnecessary prescriptions for over 10,000 oxycodone tablets over a four-year period, resulting in at least one death.
RAMIREZ, a psychiatrist, and JAMES COONEY, a co-conspirator, were arrested this morning on the charges in the Complaint. Both defendants were presented before U.S. Magistrate Judge Paul E. Davison this afternoon in White Plains federal court.
U.S. Attorney Preet Bharara said: “Abuse of prescription pills is a national health epidemic – causing more overdose deaths than heroin and cocaine combined. Unscrupulous healthcare professionals like Doctor Alfred Ramirez, who is alleged to have prescribed over 10,000 medically unnecessary oxycodone pills over a four-year period, and his alleged distributor, James Cooney, fuel this epidemic of poison by prescription. The danger of this type of criminal distribution of prescription pills was brought home by a tragic death allegedly resulting from Dr. Ramirez’s prescriptions.”
DEA Special Agent-in-Charge James A. Hunt said: “Criminals are constantly scheming ways to make an illegal profit, and Dr. Ramirez was no different. Allegedly selling scripts for money, Dr. Ramirez supplied opioid addicts with their fix and supplied street distributors, like James Cooney, with doses of death. Today’s arrests come after a five-month investigation into the illegal practices of Dr. Ramirez and the subsequent consequences of James Cooney’s street distribution.”
NYPD Commissioner William J. Bratton said: “As alleged, this doctor traded cash for prescriptions, pushing pills into the illegal drug market, resulting in the senseless death of at least one person. I commend the work of the NYPD investigators and our law enforcement partners for holding these individuals accountable for their actions.”
The following allegations are based on the Complaint unsealed today in White Plains federal court[1]:
Starting in approximately 2012 and continuing until his arrest, RAMIREZ operated out of offices in Orange and Dutchess Counties, where RAMIREZ, a Board certified doctor and State licensed psychiatrist, wrote medically unnecessary prescriptions for more than ten thousand oxycodone pills in exchange for cash payments. On numerous occasions over the course of this four-year period, RAMIREZ charged hundreds of dollars in cash for “patient visits” that involved little, if any, actual examination and resulted in the issuance of multiple prescriptions for large quantities of 30-milligram oxycodone tablets, sometimes for patients who were not even present.
Also charged in the Complaint is COONEY, who obtained prescriptions for thousands of oxycodone tablets from RAMIREZ, including in the name of third persons. COONEY resold many of these pills for profit.
The pills distributed by RAMIREZ and COONEY caused one known death: On March 23, 2015, a school teacher was found dead in his Yonkers, New York, apartment. Medical reports concluded that the death resulted from an overdose of oxycodone and alprazolam, another drug frequently prescribed by RAMIREZ and distributed by COONEY. Records show that the victim obtained the lethal oxycodone, and likely the alprazolam as well, from COONEY, and that RAMIREZ had issued prescriptions for those drugs in COONEY’s name.
Oxycodone is a prescription-strength Schedule II narcotic used to treat severe and chronic pain conditions. Oxycodone can result in addiction similar to an addiction to codeine or morphine, and there is an illegal market for oxycodone, as a substitute for – or adjunct to – other illegal narcotics, such as heroin.
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The defendants are charged with violations of the federal narcotics laws carrying a maximum sentence of twenty years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as the judge will determine any sentence imposed on the defendants.
Mr. Bharara praised the outstanding investigative work of the DEA’s Tactical Diversion Squad, composed of agents and officers of the DEA New York Division, the NYPD, the New York State Police, the New York Bureau of Narcotics Enforcement, the Westchester County Police Department, and the Town of Orangetown Police Department. Mr. Bharara also thanked the Town of New Windsor Police Department, the New York Bureau of Narcotics Enforcement, the U.S. Department of Health and Human Services, the Westchester County Department of Public Safety, the New York State Department of Financial Services, the Orange County Drug Task Force, the New York Office of Professional Medical Conduct, and the Town of Woodbury Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Lauren Schorr and Hagan Scotten are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
District Man Found Guilty of Charges in 2010 Murder in Northeast WashingtonRead the Press Release
WASHINGTON - Emanuel Guzeh, 29, of Washington, D.C., has been found guilty of charges stemming from a 2010 murder in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
Guzeh was found guilty by a jury on Sept. 29, 2015, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed and possession of a firearm during a crime of violence. Guzeh is to be sentenced on Dec. 11, 2015, by the Honorable Jennifer Anderson.
At trial, the government’s evidence showed that on Feb. 15, 2010, at approximately 11:30 p.m., officers with the Metropolitan Police Department (MPD) were called to an apartment in the 900 block of 48th Street NE, and discovered the body of Michaeldeon Talley, 33, who was dead on the hallway floor of the apartment, having been shot several times.
MPD homicide detectives learned, and the subsequent investigation revealed, that on the night of the murder, Mr. Talley was inside the apartment with his male friend, a girlfriend, and (later) two prostitutes who had advertised on “Backpage.com.” The two prostitutes knew Mr. Talley and were invited over to “party” with the group. One of the prostitutes had recently begun dating the defendant, Emmanuel “Manny” Guzeh, who accompanied the prostitutes to the apartment, but remained outside. The prostitutes went over to the apartment, socialized with the group, and looked around the apartment for money or valuables to later take with them. They did not find anything of value at first but, while the prostitutes were still inside the apartment, Guzeh came inside, went to a back room, and started a struggle with Mr. Talley, eventually shooting him four times. Guzeh and the prostitutes fled the apartment.
In announcing the verdicts, Acting U.S. Attorney Cohen expressed his appreciation for the work of the Metropolitan Police Department. He also commended the efforts of Paralegal Specialists Debra Joyner, Meridith McGarrity, and Zekiah Wright; Paralegal Supervisor Sharon Newman; Law Clerk Adam Bereston; Victim/Witness Advocate Marcey Rinker; Information Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin; Victim/Witness Specialists Wanda Queen and M. LaVerne Forrest; Supervisory Victim/Witness Specialist Michael Hailey; Victim/Witness Services Coordinator Katina Adams-Washington, and Supervisory Victim/Witness Services Coordinator David Foster. Finally, he commended former Assistant U.S. Attorney Holly Shick, who assisted in the investigation of this case, and Assistant U.S. Attorneys David Gorman and Robert Eckert, who investigated and prosecuted the case at trial.
Derry Man Sentenced to Ten Years for Child Pornography DistributionRead the Press Release
CONCORD, NEW HAMPSHIRE - Stephen Cote, 51, of Derry, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire on one count of distributing child pornography and one count of possessing child pornography, announced Acting United States Attorney Donald Feith. The Court imposed a term of 10 years’ imprisonment, to be followed by an 8 year term of supervised release.
Cote’s sentencing capped an extensive multi-agency investigation, which began in 2013 when Cote sent an e-mail containing child pornography to an undercover federal agent. Search warrants were subsequently executed on Cote’s e-mail account and residence, leading to the discovery of hundreds of images and videos of child pornography. Cote used his e-mail account to store those images and distribute them to dozens of other individuals by e-mail over the course of several months.
The case was investigated by Manchester, New Hampshire Homeland Security Investigations and the Portsmouth and Washington D.C. offices of the Federal Bureau of Investigation, in conjunction with the New Hampshire Crimes Against Children Task Force (NH ICAC) and the Derry and Manchester, New Hampshire Police Departments. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals, federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant Charged with Alleged Participation in the Murder of Ice Special Agent Jaime Zapata and the Attempted Murder of Ice Special Agent Victor Avila Extradited from MexicoRead the Press Release
Four Others Have Already Pleaded Guilty to Charges in the Case
A Mexican national was extradited from Mexico to face charges for his alleged participation in the February 2011 murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico.
The charges and extradition were announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Assistant Director Joseph S. Campbell of the FBI Criminal Investigative Division and Director Sarah R. Saldaña of ICE.
Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, Zafado or Safado, 34, of San Luis Potosi, Mexico, was charged on May 6, 2013, in a four-count indictment with one count of murder of an officer or employee of the United States; one count of attempted murder of an officer or employee of the United States; one count of attempted murder of an internationally protected person; and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Garcia Sota made his initial appearance before Chief U.S. District Judge Royce C. Lamberth of the District of Columbia. His next appearance in court is scheduled for Oct. 9, 2015.
“It has been over four and a half years since ICE Special Agent Jaime Zapata valiantly lost his life and Special Agent Victor Avila suffered grave injuries when they were ambushed by gunfire while on assignment in Mexico,” said Assistant Attorney General Caldwell. “As evidenced by today’s announcement, the passage of time has not lessened our resolve to keep our promise to the family of Special Agent Zapata and to Special Agent Avila and his family, and bring to justice those responsible for this senseless and brutal attack. And we are grateful to the Government of Mexico for its continued partnership in this case.”
“Four years ago, on a Mexican roadside, two American heroes came under attack in a violent ambush by members of Los Zetas, a dangerous criminal cartel,” said Acting U.S. Attorney Cohen. “Four people have already accepted responsibility for their actions, and now a fifth will be brought to an American courtroom for justice. We will not stop in the pursuit of justice – no matter how far away and how long it takes.”
“Today's announcement is the direct result of unwavering resolve and unrelenting cooperation to bring to justice those accountable for the murder of Jaime Zapata and the attempted murder of Victor Avila,” said Assistant Director Campbell. “Although this cowardly act of violence occurred more than four years ago, this investigation remains a priority for the FBI.”
“This extradition is another step closer to the justice Special Agents Zapata and Avila deserve,” said ICE Director Saldaña. “ICE is grateful to our partners whose tireless efforts brought about today's news. Their dogged pursuit of justice, often in face of great danger, enables us to continue in our quest to make these criminals pay for their deeds. While nothing can ever truly heal such a loss, we hope today's news brings Agent Zapata's family and friends a measure of peace. His ultimate sacrifice will always be honored by the men and women of ICE.”
Four defendants previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. Julian Zapata Espinoza, aka Piolin, 34, pleaded guilty on May 23, 2013, to the murder of Special Agent Zapata and the attempted murder of Special Agent Avila. Ruben Dario Venegas Rivera, aka Catracho, 27, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, aka Cacho, 33, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, aka Dalmata, 40, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack.
An indictment is a formal charging document and defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Customs and Border Patrol, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office of the District of Columbia. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Garcia Sota Indictment
Defendant Charged with Alleged Participation in the Murder of ICE Special Agent Jaime Zapata and the Attempted Murder of ICE Special Agent Victor Avila Extradited from MexicoRead the Press Release
WASHINGTON – A Mexican national was extradited from Mexico to face charges for his alleged participation in the February 2011 murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico.
The charges and extradition were announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Assistant Director Joseph S. Campbell of the FBI Criminal Investigative Division and Director Sarah R. Saldaña of ICE.
Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, Zafado or Safado, 34, of San Luis Potosi, Mexico, was charged on May 6, 2013, in a four-count indictment with one count of murder of an officer or employee of the United States; one count of attempted murder of an officer or employee of the United States; one count of attempted murder of an internationally protected person; and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Garcia Sota made his initial appearance before Chief U.S. District Judge Royce C. Lamberth of the District of Columbia. Garcia Sota was ordered detained without bail. His next appearance in court is scheduled for Oct. 9, 2015.
“It has been over four and a half years since ICE Special Agent Jaime Zapata valiantly lost his life and Special Agent Victor Avila suffered grave injuries when they were ambushed by gunfire while on assignment in Mexico,” said Assistant Attorney General Caldwell. “As evidenced by today’s announcement, the passage of time has not lessened our resolve to keep our promise to the family of Special Agent Zapata and to Special Agent Avila and his family, and bring to justice those responsible for this senseless and brutal attack. And we are grateful to the Government of Mexico for its continued partnership in this case.”
“Four years ago, on a Mexican roadside, two American heroes came under attack in a violent ambush by members of Los Zetas, a dangerous criminal cartel,” said Acting U.S. Attorney Cohen. “Four people have already accepted responsibility for their actions, and now a fifth will be brought to an American courtroom for justice. We will not stop in the pursuit of justice – no matter how far away and how long it takes.”
“Today's announcement is the direct result of unwavering resolve and unrelenting cooperation to bring to justice those accountable for the murder of Jaime Zapata and the attempted murder of Victor Avila,” said Assistant Director Campbell. “Although this cowardly act of violence occurred more than four years ago, this investigation remains a priority for the FBI.”
“This extradition is another step closer to the justice Special Agents Zapata and Avila deserve,” said ICE Director Saldaña. “ICE is grateful to our partners whose tireless efforts brought about today's news. Their dogged pursuit of justice, often in face of great danger, enables us to continue in our quest to make these criminals pay for their deeds. While nothing can ever truly heal such a loss, we hope today's news brings Agent Zapata's family and friends a measure of peace. His ultimate sacrifice will always be honored by the men and women of ICE.”
Four defendants previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. Julian Zapata Espinoza, aka Piolin, 34, pleaded guilty on May 23, 2013, to the murder of Special Agent Zapata and the attempted murder of Special Agent Avila. Ruben Dario Venegas Rivera, aka Catracho, 27, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, aka Cacho, 33, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, aka Dalmata, 40, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack.
An indictment is a formal charging document and defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Customs and Border Patrol, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office for the District of Columbia. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Crescent City Keepers Mentoring Program Made a Part of the President’s My Brother’s Keeper InitiativeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that the White House has brought Crescent City Keepers (“CCK”), a mentoring program launched by U. S. Attorney Polite in 2014, under the umbrella of the President’s My Brother’s Keeper (“MBK”) Initiative. MBK seeks to address persistent opportunity gaps faced by boys and young men of color and ensures that all young people can reach their full potential.
To date, Crescent City Keepers is the only MBK initiative created by a U.S. Attorney. CCK focuses on all young people, including boys and young men of color, ages 14 through 16, who are considered as having a "high risk" of being killed as a result of gun violence. CCK identifies its participating mentees based on data compiled by the City of New Orleans, in its capacity as one of ten cities participating in DOJ’s National Forum on Youth Violence Prevention. Each participant has been identified as "high risk" because he/she either has already been the victim of gun violence or is in the social network of another homicide victim of gun violence. While the average New Orleans resident has a homicide rate of 24/100,000, individuals falling into this high risk category have a homicide rate of 1,600/100,000. That is, these young people, predominantly boys and young men of color, are nearly 63 times more likely to be killed by gun violence than the average New Orleans resident. By providing intensive mentoring and other support, CCK would intervene in the lives of these young people and help direct them towards safe, productive, and successful pathways.
In a shift from the more traditional one-on-one or group mentoring techniques, CCK will utilize an "institutional mentoring" concept. Capitalizing on the role that faith-based and other community organizations have historically played as a foundation for community development and preservation, CCK will pair one mentee with one faith-based or other community organization. The faith-based or other community organization will, in essence, "adopt" each mentee, and its membership will provide guidance and support. Each participating organization will recruit three members within the congregation or membership to serve as primary mentors. Using a team approach, these primary mentors will be the first-line personnel to engage with the young person. By relying on "what already works" – i.e., well-established and –recognized mentoring programs in the New Orleans area – CCK will develop a life skills curriculum as part of the mentoring process. Other members of the organization will also play a vital role in CCK. The entire membership – which in most cases will include individuals with a variety of professional backgrounds, including entrepreneurs, teachers, and skilled laborers – will provide the ancillary mentoring and support necessary to address some of the immediate needs of the mentee and his or her family. Furthermore, these organizations can leverage their relationships with various social services agencies to provide additional resources for those issues that are beyond the capacity of a traditional mentor program, including, but not limited to, housing, transportation, and health care.
U.S. Attorney Polite said: “It is not enough for us to wait for these young people to show up in a police report, or worse, on a coroner’s slab. We must intervene in order to save their lives. This initiative is about public safety in its truest sense, and it allows our community’s organizations and residents to be part of the solution.”
To date, the following organizations have now been matched with CCK mentees:
The New Orleans Chapter of Links, Inc.
Progressive Baptist Church
St. Peter Claver Catholic Church
St. Pius X Catholic Church
Urban League of Greater New Orleans
If you or your organization is interested in participating in CCK, please contact Shane M. Jones at 504-680-3000 or [email protected], or visit our website at www.justice.gov/usao-edla.
Collinsville Man Pleads Guilty to Sexual Exploitation of a Child and EnticementRead the Press Release
TULSA, Okla.–Derick Dean Brown, 24, of Collinsville, pleaded guilty today to sexual exploitation of a child and enticement, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. A sentencing date has been set before United States District Court Judge Claire V. Eagan on January 8, 2016.
At the change of plea hearing, Brown admitted, that in March 2015, he communicated with a female minor in Montana via text messaging and the Internet and enticed her to produce a sexually explicit video. Further, Brown admitted, that from January to March 2015, he communicated via cellphone and the Internet with a female minor in Oklahoma and enticed her to engage in sexual activity. Both victims were under the age of 18 years old.
At the time of sentencing, for the sexual exploitation charge, Brown faces the statutory minimum penalty of 15 years and up to 30 years in prison; and the enticement charge carries the statutory minimum penalty of not less than 10 years or up to life in prison. As part of his sentence, Brown’s Ford Mustang used to commit or facilitate the commission of the enticement offense will be forfeited to the United States.
The case was investigated by the Federal Bureau of Investigation and the Tulsa Police Department. Assistant United States Attorneys Jeff Gallant and Catherine Depew prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Page Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Co-Founder of Oxywater Sentenced for Wire Fraud and Money LaunderingRead the Press Release
WASHINGTON – A co-founder of Imperial Integrative Health Research and Development LLC (Imperial) was sentenced to serve 83 months in prison in federal court today for his role in a fraud scheme related to Imperial and its product, OXYwater, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Carter M. Stewart of the Southern District of Ohio.
Thomas E. Jackson, 40, of Powell, Ohio, was sentenced by U.S. District Court Judge Gregory L. Frost of the Southern District of Ohio. In addition to the prison sentence, Jackson was ordered to serve three years of supervised release and to pay approximately $8.8 million in restitution to victims of the fraud. On March 25, Jackson was convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, eight counts of wire fraud and 12 counts of money laundering.
Jackson’s business partner, Preston J. Harrison, 43, and Harrison’s wife, Lovena Harrison, 42, both of Lewis Center, Ohio, also went to trial in March and were convicted of multiple crimes. Preston Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return, conspiracy to commit wire fraud, conspiracy to commit money laundering and 12 counts of money laundering. Lovena Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return and structuring financial transactions to evade currency reporting requirements.
The Harrisons were sentenced on Aug. 25. Preston Harrison was also sentenced to serve 83 months in prison to be followed by three years of supervised release, and ordered to pay approximately $8.8 million to victims of the fraud and approximately $376,000 in restitution to the Internal Revenue Service (IRS). He was also ordered to forfeit $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account. Lovena Harrison was sentenced to serve 12 months and one day in prison to be followed by three years of supervised release, and ordered to pay approximately $376,000 in restitution to the IRS.
According to court testimony, Jackson and Preston Harrison operated Imperial, based in Westerville, Ohio, and developed OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The defendants engaged in a scheme to deceive Imperial’s investors about Imperial and OXYwater’s structure, composition, finances, sales and profits in order to make the company appear to be a lucrative and profitable financial investment. Jackson and Preston Harrison produced and sent false and fraudulent documents intended to deceive investors in order to obtain additional investments in Imperial. They then misappropriated that money for their own personal use, which included purchasing jewelry, a Cadillac Escalade, a BMW vehicle, weapons, clothing, home improvements and a swimming pool.
Between August 2010 and spring 2013, Jackson and Preston Harrison misappropriated approximately $2 million of the investors’ funds. The defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of the defendants’ conduct, investors lost approximately $9 million.
In 2011, Preston Harrison misappropriated approximately $1.1 million from Imperial, which he and Lovena Harrison diverted into an account in the name of a daycare business and used for personal expenses. The Harrisons did not report the money as income on their 2011 income tax return.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge Kathy A. Enstrom of the IRS-Criminal Investigation (CI) Cincinnati Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Stewart commended special agents of IRS-CI and the FBI, who investigated the case, as well as Assistant U.S. Attorney Jessica Kim of the Southern District of Ohio and Trial Attorney Jason Scheff of the Tax Division, who prosecuted the case.
Co-Founder of OXYwater Sentenced for Wire Fraud and Money LaunderingRead the Press Release
A co-founder of Imperial Integrative Health Research and Development LLC (Imperial) was sentenced to serve 83 months in prison in federal court today for his role in a fraud scheme related to Imperial and its product, OXYwater, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Carter M. Stewart of the Southern District of Ohio.
Thomas E. Jackson, 40, of Powell, Ohio, was sentenced by U.S. District Court Judge Gregory L. Frost of the Southern District of Ohio. In addition to the prison sentence, Jackson was ordered to serve three years of supervised release and to pay $8,840,706 in restitution to victims of the fraud. On March 25, Jackson was convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, eight counts of wire fraud and 12 counts of money laundering.
Jackson’s business partner, Preston J. Harrison, 43, and Harrison’s wife, Lovena Harrison, 42, both of Lewis Center, Ohio, also went to trial in March and were convicted of multiple crimes. Preston Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return, conspiracy to commit wire fraud, conspiracy to commit money laundering and 12 counts of money laundering. Lovena Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return and structuring financial transactions to evade currency reporting requirements.
The Harrisons were sentenced on Aug. 25. Preston Harrison was sentenced to serve 83 months in prison to be followed by three years of supervised release, and ordered to pay approximately $8.8 million to victims of the fraud and approximately $376,000 in restitution to the Internal Revenue Service (IRS). He was also ordered to forfeit $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account. Lovena Harrison was sentenced to serve 12 months and one day in prison to be followed by three years of supervised release, and ordered to pay approximately $376,000 in restitution to the IRS.
According to court testimony, Jackson and Preston Harrison operated Imperial, based in Westerville, Ohio, and developed OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The defendants engaged in a scheme to deceive Imperial’s investors about Imperial and OXYwater’s structure, composition, finances, sales and profits in order to make the company appear to be a lucrative and profitable financial investment. Jackson and Preston Harrison produced and sent false and fraudulent documents intended to deceive investors in order to obtain additional investments in Imperial. They then misappropriated that money for their own personal use, which included purchasing jewelry, a Cadillac Escalade, a BMW vehicle, weapons, clothing, home improvements and a swimming pool.
Between August 2010 and spring 2013, Jackson and Preston Harrison misappropriated approximately $2 million of the investors’ funds. The defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of the defendants’ conduct, investors lost approximately $9 million.
In 2011, Preston Harrison misappropriated approximately $1.1 million from Imperial, which he and Lovena Harrison diverted into an account in the name of a daycare business and used for personal expenses. The Harrisons did not report the money as income on their 2011 income tax return.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Stewart commended special agents of IRS-CI and the FBI, who investigated the case, as well as Assistant U.S. Attorney Jessica Kim of the Southern District of Ohio and Trial Attorney Jason Scheff of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Clovis Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Michael Montoya, 37, of Clovis, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Montoya will be sentenced within the range of 121 to 151 months in federal prison followed by a term of supervised release to be determined by the court.
Montoya and his co-defendants, Brian Acuna, 23, and Dianna Hernandez-Trujillo, 24, both of Clovis, N.M., and Alexander Page, 28, of Tucumcari, N.M., were arrested in Nov. 2013, on a six-count indictment charging them with trafficking methamphetamine in three New Mexico counties. Count 1 charged Montoya and his co-defendants with conspiracy to distribute methamphetamine in Curry County, N.M., between Oct. 2007 and Nov. 2013. Count 2 charged Montoya with possession of methamphetamine with intent to distribute on Oct. 11, 2011 in Curry County. Count 3 charged Montoya and Acuna, and Hernandez-Trujillo with possession of methamphetamine with intent to distribute on March 27, 2012, in Cibola County. Count 4 charged Montoya and Page with possession of methamphetamine with intent to distribute on Nov. 7, 2012, in Socorro County. Count 5 charged Montoya with money laundering for purchasing a residence with money derived from a drug trafficking activity on Sept. 22, 2010. Count 6 charged Acuna with using and carrying a firearm in relation to a drug trafficking crime on March 27, 2012, in Cibola County.
During today’s proceedings, Montoya pled guilty to Count1 of the indictment charging him with conspiracy to distribute methamphetamine and Count 5 charging him with money laundering. In his plea agreement, Montoya admitted arranging for drivers to travel to California in vehicles he provided so that they could transport methamphetamine from his sources of supply. Montoya then distributed the methamphetamine in New Mexico. He also admitted being the owner of the 1.7 kilograms of methamphetamine seized from Acuna on March 27, 2012, and the 1.2 kilograms of methamphetamine seized from Page on Nov. 7, 2012, as well as providing the vehicles Acuna and Page were driving.
In entering his guilty plea, Montoya also admitted that on Sept. 22, 2010, he purchased a residence Clovis with proceeds from his ongoing narcotics activities. He also admitted that drug trafficking proceeds were his only source of income from 2005 through 2011, and that he did not file federal income tax returns on that income during those years.
Montoya is in federal custody pending his sentencing hearing, which has yet to be scheduled.
On July 7, 2015, Page pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Page admitted that he was stopped for driving 85 miles per hour in a 35 mile per hour zone by a deputy of the Socorro County Sheriff’s Office on Nov. 7, 2012, while traveling near Socorro, N.M. During a search of the vehicle driven by Page, the deputy found approximately 1259 grams of methamphetamine in a hidden compartment in the vehicle. At the time, Page was transporting the methamphetamine to Clovis where the drugs were to be sold and where Page was to be paid for transporting the drugs. His sentencing hearing is currently scheduled for Oct. 13, 2015.
Acuna pled guilty on June 26, 2014, to Counts 1 and 3 of the indictment, charging him with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. He also pled guilty to Count 6 of the indictment, charging him with using and carrying a firearm in relation to and in furtherance of a drug trafficking crime. In entering his guilty plea, Acuna admitted that on March 27, 2012, he and a co-defendant were stopped by police while transporting methamphetamine from California to Clovis. At the time of the stop, Acuna and the co-defendant knew that a large quantity of methamphetamine was concealed in a secret compartment in the vehicle and that additional methamphetamine was in a backpack in the vehicle. Acuna also admitted that he had a revolver and ammunition in the vehicle for protection.
At sentencing, Acuna faces a mandatory minimum of 10 years to a maximum of life imprisonment on the methamphetamine trafficking charges. On the gun charge, Acuna faces a mandatory minimum of five years in prison which must be served consecutive to any sentence imposed on the drug charges. Acuna remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
Hernandez-Trujillo has entered a not guilty plea to the indictment and is participating in a judicial pretrial diversion program. Charges in indictments are merely accusation and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Socorro County Sheriff’s Office. Assistant U.S. Attorneys Sean J. Sullivan and Jennifer M. Rozzoni are prosecuting this case.
Chinese Businessman Charged with Theft of Trade SecretsRead the Press Release
CHARLOTTE, N.C. – A criminal bill of information was filed today in federal court in Charlotte, charging a Chinese businessman, Xiwen Huang, 55, of Charlotte, with one count of theft of trade secrets, announced Acting U.S. Attorney Jill Westmoreland Rose and Special Agent in Charge John A. Strong, of the FBI’s Charlotte Division. A plea agreement was also filed today and Huang is expected to appear in court on Friday, October 2, 2015, at 10:30 a.m. to enter his formal guilty plea.
“After having received the benefit of an American education, the defendant worked for companies in the U.S. which developed technology for the U.S. government and private enterprises. The defendant then stole secret information from these entities to bring back to China to benefit himself and others. For this reprehensible conduct the defendant is going to federal prison. We will do the same to other industry thieves in a continued effort to protect American intellectual property and maintain fairness in the marketplace,” said Acting U.S. Attorney Rose.
“For years Xiwen Huang targeted U.S. companies intending to steal the intellectual property others had worked so diligently to develop. The research and product development information he stole from a North Carolina business put our state’s economy and people’s jobs at risk. The FBI will work tirelessly to hold accountable the criminals who try to profit off the work of others,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
According to court documents filed today, from about 2006 through May 2015, Huang engaged in a scheme to steal trade secrets from multiple companies within the United States, and intellectual property from the United States government, to further his aspirations of forming and operating his own company in the People’s Republic of China (China). Huang is a native of China and naturalized U.S. Citizen.
Filed court documents show that prior to coming to the United States to obtain his doctorate degree in Chemical Engineering, Huang wrote that he “had a dream of learning more advanced technology to serve [his] homeland” of China and decided that to “fulfill [his] wish” he needed to go abroad and then “return to China with [his] newly acquired methodology and research skills to teach in China.”
According to court records, Huang came to the United States in 1998 to study and work. From approximately December 2004 until he was fired by his employer in approximately March 2014, court records show that Huang stole proprietary and confidential information, including trade secret information and other intellectual property belonging to a Government Research Facility and two United States companies, with the intent to use the stolen information for the economic benefit of himself, a Chinese company, and others.
Filed court documents show that Huang stole a large amount of intellectual property from the Government Research Facility, including technology related to military vehicle fuel cells. Court records also show that Huang stole from one U.S. company more than 500 documents containing confidential and proprietary information, including trade secret information related to 30 different products with research and development costs associated therewith of more than $65 million. According to court records, Huang stole from a second U.S. company, more than 100 documents containing trade secret, confidential and proprietary information with research and development costs associated therewith of more than $25 million.
Court documents filed today show that upon being fired from the second U.S. company in 2014, Huang returned to China and began working for a Chinese company in a managerial role. According to court records, Huang took with him to China all of the intellectual property and trade secrets he stole with the intent to use that stolen property to further his personal goals and the business interests of the Chinese company.
According to court records, after returning to China, upon attaining his goals first annunciated in 2003, Huang recounted his accomplishments of stealing U.S. intellectual property in a document he titled, “Trip of Dream Realization.” In the document, translated from Chinese, court records show that Huang states in sum and substance: “Throughout these 16 years, I always have a dream of returning to China to develop my ambition. In order to realize this dream, I have worked in US national research academies [laboratories], largest chemical companies in the world. I have also worked in small companies in the US. My goal was to learn, digest, accumulate, and make preparations for realizing the dream. . .Consequently, I started scheming, planning that last for close to 2 years, and returned to China formally in this year, and initiated my own ‘Trip of Dream Realization’. . . As the main thrust during the country’s development, it is necessary an obligatory for our generation to fulfill our share of responsibility in contributing towards the societal progress of China.”
Huang has been in federal custody since May 2015, when he was arrested following his return from China. He has agreed to plead guilty to stealing trade secrets from multiple U.S. companies. The theft of trade secrets charge carries a maximum term of 10 years in prison. In determining Defendant’s actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide advisory sentencing ranges.
The Charlotte Division of the FBI is investigating the case. Assistant United States Attorneys Kevin Zolot and Maria K. Vento of the U.S. Attorney’s Office in Charlotte are handing the prosecution for the government.
Chicago Man Sentenced to 37 Months in Federal Prison for Trafficking Dozens of Guns from Indiana to the Streets of ChicagoRead the Press Release
CHICAGO — A Chicago man who helped purchase 43 firearms in Indiana and transport them to Illinois for sale on the streets of Chicago was sentenced today to 37 months in prison.
After purchasing the weapons at gun shows and from individual vendors in Crown Point and Indianapolis, WINSTON GERALDS helped bring the firearms into Illinois and sell them on the South Side of Chicago. Unbeknownst to Geralds, the Chicago buyer was cooperating with law enforcement officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Geralds, 25, pleaded guilty in May to one count of illegally transporting firearms across state lines. U.S. District Judge John Z. Lee imposed the 37-month sentence in federal court in Chicago.
“The defendant arranged for the sale of unregistered and untraceable firearms on the side streets and back alleys of Chicago’s neighborhoods,” Assistant U.S. Attorneys Bethany K. Biesenthal and Christopher V. Parente argued in the government’s sentencing memorandum. “By directly assisting in the supply of firearms to this city, the defendant very directly contributed to the cycle of gun violence.”
Geralds used middlemen to facilitate selling the guns to the cooperating source. In four separate meetings on April 22, 2012, the middlemen sold 20 weapons to the cooperating source at locations in the Greater Grand Crossing and Chinatown neighborhoods of Chicago. The following day, the middlemen sold 23 more guns to the cooperating source in a Chinatown parking lot.
Five other defendants, including one middleman, were charged in connection with this investigation:
- Levaine Tanksley, of Chicago, served as a middleman in the transactions with the cooperating source. Tanksley pleaded guilty to unlawfully transporting a firearm and was sentenced to more than 11 years in prison.
- Charles Lemle, of Chicago, acted as security for at least one of the firearm deals with the cooperating source. Lemle pleaded guilty to unlawfully transporting a firearm and was sentenced to 10 years in prison. Prior to the guilty plea, Lemle violated the terms of his pretrial release by possessing a gun on New Year’s Eve 2013. An additional indictment was filed, and Lemle pleaded guilty to being a felon in possession of a firearm. He is set to be sentenced by Judge Lee on Oct. 7, 2015.
- Michael Hall, of Chicago, acted as security for at least one of the firearm deals. Hall pleaded guilty to unlawfully transporting a firearm and is scheduled to be sentenced by U.S. District Judge Ronald A. Guzman on Nov. 18, 2015.
- David Lewisbey, of South Holland, served as the leader of the Indiana-to-Illinois gun trafficking ring. He was convicted at trial of dealing and transporting firearms. Lewisbey was sentenced to more than 16 years in prison.
- Maurice Strickland, of Chicago, lived in a residence in the Greater Grand Crossing neighborhood where the guns were sold to the cooperating source. He pleaded guilty to unlawfully transporting a firearm and was sentenced to 42 months in prison.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Federal Bureau of Investigation, the Chicago Police Department and the Illinois State Police assisted in the investigation, which was conducted with the Chicago High Intensity Drug Trafficking Task Force (HIDTA).
The government is represented by Ms. Biesenthal and Mr. Parente.
Chattanooga Pill Mill Owner Sentenced to 44 Years in PrisonRead the Press Release
CHATTANOOGA, Tenn. -- On Oct. 1, 2015, Faith Blake, 40, of Chattanooga, Tenn., was sentenced to serve 44 years in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Upon her release from prison, Blake will serve a three year period of supervised release. Additionally, she was ordered to forfeit $2,700,000 to the United States, which represented the gross income generated by her illegal clinics.
Blake pleaded guilty to a federal grand jury indictment charging her with conspiring to distribute prescription drugs outside the scope of professional practice and not for a legitimate medical purpose. She admitted to being involved in two drug conspiracies. One conspiracy involved Superior One Medical Clinic, which she co-owned with her mother Barbara Lang, who was also charged in this case. The other conspiracy involved Elite Care Medical Clinic, which was solely owned by Blake. Blake also pleaded guilty to failing to appear after she was released on conditions of bond and became a fugitive. She was apprehended five months later in Maryland, living under an assumed name.
Three others involved in the operation of the clinics were separately convicted and have been sentenced. Dr. Jerome Sherard, the medical director for Superior One and Elite Care, was sentenced to serve five years in prison. Charles Larmore, a nurse practitioner who worked at Superior One and co-defendant Barbara Lang’s clinic, Primary Care, received a 13 year prison sentence. Barbara Lang, Blake’s mother, was convicted after trial of several offenses including drug conspiracies involving Superior One and Primary Care. She was sentenced to serve 280 years in prison. Over $500,000 in seized assets were forfeited as part of their sentences.
Blake’s clinics distributed over 28 kilograms of oxycodone (or almost 1,000,000 tables of Oxycodone 30mg pills) to thousands of individuals, many of whom illegally abused the drugs and redistributed them to others. Oxycodone pills are typically sold on the street for $1 per milligram. The clinics catered to pill-seeking individuals from the Southeastern United States.
At the sentencing hearing, Judge Collier noted that prescription pill abuse is the fastest growing drug problem in the United States. He remarked that Blake’s substantial sentence was intended to deter others from engaging in this illegal activity and to keep her from ever committing this type of crime in the future.
“The substantial sentences ordered for these individuals will act as a deterrent for others who may be considering the illegal selling of highly addictive opioids. The defendants’ use of the medical training of others to effectuate this criminal scheme was particularly reprehensible. The public should be aware that federal law enforcement officials, in conjunction with the state and local authorities, are focusing on these illegal opioid transactions,” said U.S. Attorney Bill Killian.
Daniel R. Salter, Special Agent in Charge of the DEA Atlanta Field Division said, “DEA and its law enforcement counterparts will continue to target and crack down on pill mill operators who distribute pain medications for non-medical reasons. The success of this investigation is a direct result of the hard work and dedication put forth by our federal, state and local law enforcement counterparts.”
“Illegally prescribing narcotics for profit is a serious offense,” stated Christopher A. Henry, Special Agent in Charge, IRS, Criminal Investigation. “Today’s sentencing should send a message to operators of these illegal pill mills that this activity will be investigated and prosecuted. IRS Criminal Investigation is proud to work with our law enforcement partners to stop the flow of these illegal drugs into our communities.”
Law enforcement agencies participating in this joint investigation included the Drug Enforcement Administration, Internal Revenue Service, U.S. Trustee’s office, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
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Calmar Bank Robber Sentenced to 87 Months in Federal PrisonRead the Press Release
A man who robbed the State Bank in Calmar, Iowa in May of this year was sentenced today in United States District Court to more than seven years in federal prison.
Tyrone Wilson, age 49, from Postville, Iowa, received the prison term after a June 25, 2015, guilty plea to one count of bank robbery.
Wilson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wilson was sentenced to 87 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make over $1400 in restitution to State Bank. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
At the sentencing hearing, the Court found Wilson entered the State Bank in May, reached across the teller counter, grabbed the teller’s wrist, and demanded the money in the teller’s drawer. Wilson then jumped onto the counter and grabbed $900 from the teller’s drawer. Wilson fled the area, spent most of the $900 on cocaine, and ultimately was arrested without incident in the Rock Island, Illinois, area. The Court’s restitution award includes the $900 Wilson robbed from the bank, over $500 in lost profits to the Bank, and prejudgment interest.
Wilson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy Vavricek and investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Calmar Police Department, the Iowa State Patrol, the Iowa Division of Intelligence, the Rock Island County Sheriff’s Office, the East Moline Police Department, the Milan Police Department, the Postville Police Department, the Decorah Police Department, the Allamakee County Sheriff’s Office, and the Winneshiek County Sheriff’s Office.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-2014.
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