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27 October 2015
California-Based Marijuana Trafficker Handed Down 20 Year Prison SentenceRead the Press Release
CHARLOTTE, N.C. – Jose Delarosa, also known as “Chino” or “Pretty,” was sentenced on Monday, October 26, 2015, to 240 months in prison for his role as a major supplier of marijuana based in California, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Delarosa, 36, of Moreno Valley, California, was also ordered to forfeit $48,000 in cash seized, to pay a $25 million money judgment and to serve five years of supervised release upon his release from prison.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to information contained in filed documents and court proceedings, Delarosa was involved in a marijuana trafficking conspiracy that spanned from coast to coast. According to court records, from about 2009 to about May 2014, Delarosa was a major marijuana supplier, responsible for trafficking 10 to 30 tons of marijuana from the Los Angeles area to the east coast, including to Charlotte, Florida, Georgia, and South Carolina, as well as other locations throughout the country. Court records show that Delarosa transported the drugs via a network of couriers flying on commercial flights. The couriers flew to California, each time carrying approximately $50,000 in cash in carry-on luggage and returned to Charlotte with approximately 100 pounds of marijuana per trip hidden in checked baggage.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation, code-named “Operation Goldilocks,” has resulted in the dismantling of the organization and the seizure of more than $1 million of drug proceeds, 600 pounds of marijuana, and 13 firearms. The investigation has also netted the successful prosecution of 65 defendants, with three fugitives remaining.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of illegal drugs by identifying and targeting the major trafficking organizations, eliminating the financial infrastructure of drug organizations by emphasizing financial investigations and asset forfeiture, redirecting federal drug enforcement resources to align them with existing and emerging drug threats, and conducting expanded, nationwide investigations against all the related parts of the targeted organizations.
This ongoing OCDETF investigation is being led by HSI and CMPD, assisted by several state and local law enforcement agencies, including the Gastonia Police Department, the Concord Police Department, the Mooresville Police Department, the Pineville Police Department, the Huntersville Police Department, the Kannapolis Police Department, the Cornelius Police Department, the Waxhaw Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Bureau of Investigation, the Iredell County Sheriff’s Office, the Union County Sheriff’s Office, and the Culver City, California Police Department. The prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
In addition to Delarosa, the following 68 defendants have been charged in connection with Operation Goldilocks:
3:10-cr-238, Coleman et al:
- Parker Coleman – 720 months in prison, followed by 10 years supervised release.
- Stephanie Peppers – 54 months in prison, followed by 4 years supervised release.
- Shaunda Shenal McAdoo – 36 months in prison, followed by 3 years supervised release.
- Ryann Chancler Lewis – 87 months in prison, followed by 5 years supervised release.
- Samantha Jo Schmidlin – 27 months in prison, followed by 3 years supervised release.
- Nolan Robertson – 41 months in prison, followed by 4 years supervised release.
- Leah Patience Davis – 24 months of probation.
- Leon Edgar Robertson –84 months in prison, followed by 4 years supervised release.
- Mark Eric Dorsey, II – 96 months in prison, followed by 5 years supervised release.
- Wendell Jerrod Robinson – 72 months in prison, followed by 4 years supervised release.
- Davon Clifton Harris – 60 months in prison, followed by 3 years supervised release.
- Christopher Seaton McKneely – 37 months in prison, followed by 4 years supervised release.
- Gerren Ezekiel Darty – 188 months in prison, followed by 5 years supervised release.
- Glenn O’Neil Carrera – 87 months in prison, followed by 3 years supervised release.
- William Pierce – 36 months in prison, followed by 3 years’ supervised release.
- Rico Lamont Grier – 36 months in prison, followed by 3 years supervised release.
- Harold Manigault – 30 months in prison, followed by 3 years supervised release.
- Mark Rene Hunt – 46 months in prison, followed by 4 years supervised release.
- Jason Lee Banks – 78 months in prison, followed by 3 years supervised release.
- Megan Amelia Baehr – 41 months in prison, followed by 4 years supervised release.
3:10-cr-245, Crockett et al:
- Ahmed Daniel Crockett – 235 months in prison, followed by 5 years supervised release.
- Goldie Frances Crockett – 60 months in prison, followed by 3 years supervised release.
- Sharon Kelsey-Brown – 60 months in prison, followed by 3 years supervised release.
- Robert Jonathan Brown – 58 months in prison, followed by 5 years supervised release.
- Shondu Lamar Lynch – 96 months in prison, followed by 4 years supervised release.
3:11-cr-18, Romero Lamont Massey – 60 months in prison, followed by 4 years supervised release.
3:11-cr-46, Lasonya White – 24 months of probation.
3:11-cr-85, Thomas Diggs, III – 12 months and 1 day in prison, followed by 2 years supervised release.
3:11-cr-09, Jerry Davis – 48 months in prison, followed by 3 years supervised release.
3:11-cr-256, Saulsberry et al:
- Kamia Arekai Saulsberry – 36 months of probation.
- Kisha Dorsey – 44 months in prison, followed by 4 years supervised release.
- Robert Earl Dorsey, Jr. –48 months in prison, followed by 3 years supervised release.
- Ashley Rae Williams – 6 months in prison, followed by 3 years supervised release.
- Tonisha Deshon Williams –70 months in prison, followed by 4 years supervised release.
- Vincent Talbot – 72 months in prison, followed by 4 years supervised release.
- Kevin Lamont Stanfield, Jr. – 42 months in prison, followed by 4 years supervised release.
- Danny Hance – 37 months in prison, followed by 3 years supervised release.
3:11-cr-287, Thomas Lavon Smith, Jr. – 168 months in prison, followed by 5 years supervised release.
3:11-cr-337, Logie et al:
- Tavarus Shamaco Logie – 210 months in prison, followed by 5 years supervised release.
- Crystal Alethea Easter – 36 months in prison, followed by 4 years supervised release.
- Don Levon Marsh – 48 months in prison, followed by 4 years supervised release.
- Anthony Silva Alegrete – 54 months in prison, followed by 5 years supervised release.
- Ronald C. Hargette – 60 months in prison, followed by 4 years supervised release.
- Sandra Anita Landers – 27 months in prison, followed by 3 years supervised release.
- Evelyn Chantell LaChapelle – 87 months in prison followed by 4 years supervised release.
- Natalia Christina Wade – 6 months in prison, followed by 3 years supervised release.
- Francine Vanessa Williams – 87 months in prison followed by 4 years supervised release.
- Marvin Ray Wilburn – 30 months in prison, followed by 2 years supervised release.
- Corvain T. Cooper –life in prison.
- Leamon Keishan Moseley – 36 months in prison, followed by 2 years supervised release.
- Gregory Wall – pled guilty; 46 months in prison, followed by 4 years’ supervised release
- Dana Lamont Adams –60 months in prison, followed by 4 years supervised release.
- Lamar Andrew Harris – 50 months in prison, followed by 3 years supervised release.
- Clyde Monroe Wilburn – currently a fugitive.
3:13-cr-18, Lopez et al:
- Octavio Lopez – 57 months in prison, followed by 5 years supervised release.
- Enrique Leonardo Lemus – 70 months in prison, followed by 3 years supervised release.
- Gustavo Campos Garcia – 84 months in prison, followed by 3 years supervised release.
- Roberto Mendoza – pending sentencing (3:14-cr-164)
- Edgar Milian – 57 months in prison, followed by 2 years supervised release.
- Cristian Deylah West – 24 months in prison, followed by 4 years supervised release.
3:13-cr-40, Andrew Scott Lowery – 46 months in prison, followed by 3 years supervised release.
3:13-cr-132, Darrick Leon Johnson – 120 months in prison, followed by 5 years supervised release.
3:14-cr-252, Sergio Arturo Ibarra – pending sentencing (3:15-cr-164)
3:15-cr-42, Erik J. Jeter – pending guilty plea hearing.
3:14-mj-72, Jose Rene Ibarra – currently a fugitive.
3:14-mj-73, Dennis Delarosa – currently a fugitive.
Buffalo Woman Pleads Guilty to Conspiracy to Distribute FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sherylrica Quisenberry, 33, of Buffalo, NY, pleaded guilty to conspiracy to distribute fentanyl before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between May 7, 2013 and September 26, 2013, the defendant conspired with co-defendant Fannie Long to distribute controlled substances. Specifically, while Long was incarcerated on other charges, Quisenberry filled a fentanyl prescription for Long and then sold the fentanyl patches at Long’s direction to a third party. Subsequently, while Long was still in custody, Quisenberry made a medical appointment for Long so that upon Long’s release she would be able to obtain more fentanyl patches to sell.
On other occasions Quisenberry sold hydrocodone pills, alprazolam pills, methodone pills, and crack cocaine to other individuals.
Long was previously convicted and sentenced to 96 months in prison for her role in the conspiracy.
This plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
Sentencing is scheduled for March 30, 2016 at 2:00 p.m. before Judge Skretny.Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Leroy Weston, 42, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine, was sentenced to 10 years in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that between January and December 2011, the defendant sold crack cocaine on multiple occasions to a confidential informant working for the Drug Enforcement Administration (DEA). On December 1, 2011, Weston sold crack cocaine to a confidential source working with the Federal Bureau of Investigation (FBI).
The sentencing is the result of separate investigations by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Buffalo Man Arrested, Charged by Complaint with Bank RobberyRead 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 Casey Swain, 37, of Buffalo, NY, was arrested and charged by criminal complaint with bank robbery. The charge carries a maximum sentence of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorneys Caleb Petzoldt and Brendan T. Cullinane, who are handling the case, stated that according to the complaint, on April 24, 2015, the First Niagara Bank on Clinton Street in Buffalo was robbed in what is believed to be the first of 13 connected bank robberies. The robberies involved the robber passing similar notes which demanded that the money provided contain no bank security devices and instructed the victims not to make any eye contact or sudden movement or things would turn bad. The complaint states that Swain became a suspect relatively early on.
On June 5, 2015, an individual entered the first Niagara Bank on Abbott Road in Buffalo, approached a teller and passed a note which essentially stated large bills only, no eye contact, no dye pack, no sudden movements. According to the complaint, investigators identified Swain as the individual in bank surveillance photos.
“Our Office takes very seriously these crimes that can terrorize members of the public and employees working at local businesses,” said U.S. Attorney Hochul. “We will continue to work with our law enforcement partners to aggressively prosecute such defendants.”
Swain made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder. He is being held.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Adam S. Cohen.
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.
Bronson Man Sentenced for Firearm ChargesRead the Press Release
GAINESVILLE, FLORIDA – Jamie Vincent Ward, 38, of Bronson, Florida, was sentenced late yesterday to 7 years in prison for two charges of possession of a firearm by a convicted felon. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
According to documents filed in the case, Ward was previously convicted in Georgia for the felony offenses of Escape, Theft by Taking, First Degree Arson, and Possession of Methamphetamine. Ward was a fugitive from Georgia, having absconded from probation on the methamphetamine conviction before his arrest in the federal case.
Ward was the Grand Dragon (leader) of the Florida-Georgia Klavern (chapter) of the Traditionalist American Knights of the Ku Klux Klan (TAKKKK). On March 2, 2015, Ward asked his Grand Nighthawk (security officer) to convert a German Sports Gun .22 caliber rifle to a fully automatic weapon. On April 2, 2015, agents arrested Ward and served a search warrant at his Bronson residence. During that search, they seized a loaded Hi-Point nine millimeter pistol, as well as .22, 9 millimeter, and 12 gauge ammunition. Ward pled guilty on July 2, 2015.
The parties agreed that Ward was aware of, but did not participate in, a plot by other TAKKKK members to murder a former state prison inmate. While the Court expressly noted Ward’s First Amendment right to associate with other TAKKKK members, the Court found that Ward’s association with persons engaged in acts of violence and his failure to discourage or report the murder plot weighed against him at the sentencing hearing.
The case was investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Office of Statewide Prosecution, whose joint investigation led to the convictions in this case. The case was prosecuted by Assistant United States Attorney Michael T. Simpson.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Booneville Man Sentenced to 25 Years in Prison for Producing Child PornographyRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Erik Andrew Lotvedt, age 30, of Booneville, Arkansas, was sentenced today to 25 years in prison followed by 10 years of supervised release after pleading guilty to the one-count Information, charging the defendant with using, persuading, inducing, enticing and coercing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The Honorable P.K. Holmes III presided over the hearing in the United States District Court in Fort Smith.
In his plea agreement, Lotvedt admitted to using his cell phone to produce an image of child pornography which involved a minor victim who was less than 12 years old.
This case was investigated by the River Valley and Northwest Arkansas Internet Crimes Against Children Task Force with assistance from the Booneville Police Department and the Arkansas State Police. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Bettendorf Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
DAVENPORT, IA – On October 5, 2015, Monte A. Cox, age 55, appeared before the Honorable Stephen B. Jackson, Jr., and pled guilty to filing a false tax return for the year 2009, announced United States Attorney Nicholas A. Klinefeldt.
According to the plea agreement, Cox underreported income on his personal tax returns for the years 2007, 2008, 2009, and 2010. During this period Cox resided in Bettendorf, Iowa, and earned income as a Mixed Martial Arts (MMA) fight promoter and fighter manager. He operated his business under the name Ultimate Productions, Inc. For each of these years, Cox knew that he had received income from his MMA-related activities and ownership of Ultimate Productions, Inc. that exceeded the income he reported on his tax return. Cox underreported his income by an estimated $255,036 for 2007, $295,854 for 2008, $405,778 for 2009, and $152,509 for 2010.
Cox is scheduled to be sentenced before United States District Court Chief Judge John A. Jarvey on February 24, 2016, at 10:00 a.m., in Davenport, Iowa. Filing a false tax return is a felony that carries a maximum term of three years imprisonment, up to $100,000 fine, and up to one year of supervised release.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Baltimore Co-Conspirator Admits to Five RobberiesRead the Press Release
Baltimore, Maryland – Randy Jones, age 38, of Baltimore, pleaded guilty today to robbing a video game store, and admitted to four other robberies.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement and court documents, on September 24, 2014, Jones, co-conspirator Daryl Norris and another individual entered the Game Stop on Liberty Road in Baltimore, pointing fake guns, which appeared to be real, at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.
Jones admitted to committing four other robberies from August 26 to December 15, 2014 with Norris and/or others, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; 7-Eleven on Pleasant Plains Road in Towson, Maryland; Metro PCS in Baltimore; and the same Game Stop store.
The total loss from the five robberies was $15,312.51. Jones has agreed to the entry of an order requiring him to pay restitution in that amount.
Jones and the government have agreed that if the Court accepts the plea agreement, Jones will be sentenced to between 108 and 151 months in prison. U.S. District Judge George L. Russell III scheduled sentencing for February 5, 2016, at 11:30 a.m.
Darryl Norris, age 37, of Baltimore, previously pleaded guilty to robbing the video game store, and admitted to six other robberies. Judge Russell sentenced Norris on October 16, 2015 to nine years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Allentown Company Agrees to Pay Fines and Penalties Totaling $1.3 Million for Violating Procedures Related to Chemical ShipmentsRead the Press Release
PHILADELPHIA – A chemical company headquartered in Allentown, PA, has agreed to plead guilty to a six count information charging it with shipping monomethylamine (MMA) to customers in Mexico for whom required identification had not been obtained and failing to report the disappearance of shipments of MMA. Taminco US, Inc. (“Taminco”), has also reached a settlement with the United States of civil claims concerning the same conduct and has agreed to pay a civil fine of $475,000. Taminco has agreed to a criminal penalty of $860,374, which comprises a criminal fine of $650,000 and forfeiture of $210,374. The agreements must be accepted and approved by United States District Court Judge Edward G. Smith. The case was announced today by First Assistant United States Attorney Louis D. Lappen.
Taminco manufactured, distributed, sold and exported MMA. MMA is classified as a “List I” chemical and regulated by the Drug Enforcement Administration (DEA) because it is a necessary chemical for one method of manufacturing methamphetamine, a controlled substance. Due to its List I chemical classification, a manufacturer is required to confirm the identity and verify the legitimacy of any customer to whom it ships the product. The manufacturer is also required to immediately report to the DEA any unusual or excessive loss or disappearance of the product. Taminco manufactured MMA at its plant in Pace, Florida, and had the MMA packaged in 55 gallon drums before shipping it to the border at Laredo, Texas.
According to court documents filed today, between February and June of 2010, Taminco shipped six loads of MMA to two different customers in Mexico for whom Taminco had not obtained required identification. Each load was approximately 16,800 kilograms of MMA. According to court documents, some shipments of MMA disappeared and Taminco failed to promptly report the disappearances to the DEA as required by statute.
DEA discovered evidence of some barrels from missing shipments in August 2011, and discovered some of the missing barrels of MMA in December 2011 and April 2012. In August 2011, DEA agents located wrappers from the June 2010 shipment of MMA drums in an abandoned residence in San Luis, Arizona. In December of 2011, Customs and Border Protection officers intercepted five Taminco drums of MMA when an individual (not associated with Taminco) attempted to transport them by truck into Mexico at Nogales, Arizona. In April of 2012, DEA agents found and seized six additional Taminco drums of MMA at a self-storage unit in Nogales, Arizona. The drums that DEA seized were from March 2010 shipments to the unverified Mexican customer.
Taminco’s civil settlement with the United States resolves civil claims arising from 19 shipments of MMA in early and mid-2010 that were authorized by Taminco without proper verification of the existence and validity of the foreign business entities ordering the List I chemicals. According to the civil claims, Taminco also could not verify that certain of the MMA shipments reached their intended recipient in Mexico, and Taminco failed to report to DEA that those shipments were missing or that delivery could not be verified.
As part of the civil settlement, Taminco has entered into a Memorandum of Agreement (MOA) with the DEA under which Taminco has agreed to comply with certain heightened compliance requirements regarding the manufacture, sale and shipment of listed chemicals. DEA has agreed to forego administrative action against Taminco’s DEA registrations, subject to Taminco’s compliance with the terms of the MOA.
“The defendant in this case violated the law when it chose to ship DEA regulated precursor chemicals, which it knew could be used to manufacture methamphetamine, without following procedures designed to ensure that these chemicals do not end up in the hands of drug dealers,” said Lappen. “As part of our continuing responsibility to help protect the public from dangerous drugs, this office will continue to use both criminal and civil penalties to ensure that companies properly handle List I chemicals.”
“A primary function of the DEA’s Office of Diversion Control is to prevent, detect, and investigate the diversion of listed chemicals such as MMA from chemical supply companies. This chemical is often used by drug-trafficking organizations to manufacture methamphetamine, which is a highly addictive drug,” said Special Agent-in-Charge Gary Tuggle, DEA Philadelphia. “DEA Diversion Investigators play a pivotal role in the agency’s mission of combating the diversion of listed chemicals for illegal purposes. The DEA will remain aggressive in pursuing criminal violations of this nature.”
“DEA in Arizona and Philadelphia worked closely with other members of law enforcement in an effort to determine what became of these chemicals which have the potential to become harmful drugs,” said Special Agent-in-Charge Doug Coleman, DEA Arizona. “DEA is responsible for protecting our citizens from the dangers of drugs and will pursue all responsible parties who play a role in the manufacture and distribution of illicit drugs and their precursors.”
The case was investigated by the Yuma, AZ Resident Office and Scranton Resident Office of the Drug Enforcement Administration with assistance from Customs and Border Protection. It is being prosecuted by Assistant United States Attorneys Albert S. Glenn and Charlene Keller Fullmer.
APL Ltd. to Pay $9.8 Million to Resolve Alleged False Claims Under the Department of Defense Shipping ContractRead the Press Release
APL Limited has agreed to pay the government $9.8 million to resolve allegations that it violated the False Claims Act in connection with a contract to provide GPS tracking of shipping containers in Afghanistan, the Justice Department announced today. APL, an ocean carrier based in Scottsdale, Arizona, is a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited.
The Department of Defense contract required APL to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan to U.S. military bases in Afghanistan when the Department of Defense (DOD) requested the tracking services. The United States alleges that APL billed the DOD for tracking services despite knowing that the tracking devices completely or partially failed to transmit data, or were not affixed to shipping containers. The government also claims that APL attached a single satellite tracking device to two shipping containers despite being required to affix one device to every container.
“Today’s settlement demonstrates our commitment to ensure that contractors doing business with the military perform their contracts honestly,” said Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that there are appropriate consequences for those who knowingly fail to live up to their bargain and misuse taxpayer funds.”
“The U.S. Attorney’s Office will continue to work with our partners to protect the public fisc from government contractors who fail to deliver what they promise,” said Acting U.S. Attorney Brian J. Stretch of the Northern District of California.
“Thanks to the collaborative efforts of many U.S. law enforcement professionals, APL is today being held accountable for their actions,” said Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “I applaud all those responsible for their continued pursuit of those who attempt to take advantage of the U.S. military through false claims for services that were not provided.”
The settlement with APL was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office of the Northern District of California, Affirmative Civil Enforcement Unit; DOD’s Defense Criminal Investigative Service; the Army’s Criminal Investigation Command and DOD’s Defense Contract Audit Agency.
The claims resolved by today’s civil settlement are allegations only; there has been no determination of liability.
APL Ltd. to Pay $9.8 Million to Resolve Alleged False Claims Under the Department of Defense Shipping ContractRead the Press Release
WASHINGTON - APL Limited has agreed to pay the government $9.8 million to resolve allegations that it violated the False Claims Act in connection with a contract to provide GPS tracking of shipping containers in Afghanistan, the Justice Department announced today. APL, an ocean carrier based in Scottsdale, Arizona, is a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited.
The Department of Defense contract required APL to affix a satellite tracking device to each shipping container transported from Karachi, Pakistan, to U.S. military bases in Afghanistan when the Department of Defense (DOD) requested the tracking services. The United States alleges that APL billed the DOD for tracking services despite knowing that the tracking devices completely or partially failed to transmit data, or were not affixed to shipping containers. The government also claims that APL attached a single satellite tracking device to two shipping containers despite being required to affix one device to every container.
“The U.S. Attorney’s Office will continue to work with our partners to protect the public fisc from government contractors who fail to deliver what they promise,” said Acting U.S. Attorney Brian J. Stretch of the Northern District of California.
“Today’s settlement demonstrates our commitment to ensure that contractors doing business with the military perform their contracts honestly,” said Principal Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that there are appropriate consequences for those who knowingly fail to live up to their bargain and misuse taxpayer funds.”
“Thanks to the collaborative efforts of many U.S. law enforcement professionals, APL is today being held accountable for their actions,” said Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “I applaud all those responsible for their continued pursuit of those who attempt to take advantage of the U.S. military through false claims for services that were not provided.”
The settlement with APL was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office of the Northern District of California, Affirmative Civil Enforcement Unit; DOD’s Defense Criminal Investigative Service; the Army’s Criminal Investigation Command and DOD’s Defense Contract Audit Agency.
The claims resolved by today’s civil settlement are allegations only; there has been no determination of liability.
7 Charged in Heroin Trafficking RingRead the Press Release
STEUBENVILLE, Ohio – A grand jury in Columbus, Ohio has charged seven individuals for their roles in a Steubenville-area heroin-trafficking operation.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and William J. Ihlenfeld, II, United States Attorney for the Northern District of West Virginia, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Jefferson County Prosecutor Jane M. Hanlin and members of the Jefferson County Drug Task Force and the Hancock-Brooke-Weirton Drug Task Force announced the indictment returned on October 20.
The yearlong investigation by local, state and federal law enforcement culminated in the seizure of eight firearms, three vehicles and approximately $110,000 of suspected narcotics proceeds.
According to court documents, investigators discovered the organization was responsible for street-level heroin sales in Steubenville, Ohio, including in the Market Street apartment public housing area, Weirton, W.Va., Wheeling, W.Va. and Bellaire, Ohio.
Those charged in the indictment include:
Frederick A. McShan, 35, of Steubenville, Ohio
Donae F. Grier, 37, of Irving, Texas
Christopher J. Bishop, 31, of Weirton, W.Va.
David McShan, 37, of Steubenville, Ohio
Kerris D. Moncrease, 30, of Weirton, W.Va.
Terrence J. Smith, 26, of Steubenville, Ohio
Perrier D. Coleman, 19, of Steubenville, Ohio
All of the defendants are scheduled for arraignment at 1pm today before U.S. District Chief Judge Edmund A. Sargus.
Conspiracy to possess with intent to distribute more than one kilogram of heroin is a federal crime punishable by 10 years to up to life in prison.
U.S. Attorneys Stewart and Ihlenfeld also commended the cooperative efforts of law enforcement, as well as OCDETF Chief Michael Hunter, Assistant United States Attorney Steve Vogrin and Special Assistant United States Attorney Jane Hanlin who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
26 October 2015
Three Defendants Convicted of Conspiring to Illegally Export Controlled Technology to the Russian MilitaryRead the Press Release
Earlier today, after a month-long trial, Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were convicted of all counts, including conspiring to export, and illegally exporting, controlled microelectronics to Russia. Posobilov was also convicted of money laundering conspiracy. These defendants, all of whom worked at Arc Electronics Inc. (Arc), a Houston-based corporation, and eight other individuals were originally charged in October 2012. Five members of the conspiracy, including Arc owner Alexander Fishenko, previously pleaded guilty to related charges.
The convictions were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director Randall C. Coleman of the FBI's Counterintelligence Division and Director Douglas Hassebrock of the Department of Commerce’s Office of Export Enforcement.
“Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova evaded U.S. export laws to illegally send sophisticated microelectronics to Russia,” said Assistant Attorney General Carlin. “By purposefully circumventing U.S. law, including the International Emergency Economic Powers Act and the Arms Export Control Act, the defendants jeopardized our national security.”
“These defendants were key players in a sprawling scheme to illegally export sophisticated technology to Russia,” said U.S. Attorney Capers. “Through lies and deceit, the defendants and their co-conspirators sold over $30 million of microchips, much of which was destined for Russian military and intelligence agencies.”
“By putting a halt to this conspiracy, and stopping the flow of these dual-use components to the Russian military and intelligence services, this verdict represents a clear victory for our national security,” said Assistant Director Coleman.
“Today's convictions send a strong message to those who willfully evade export control laws and jeopardize the national security of the United States,” said Director Hassebrock. “This case is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Russia.”
The evidence at trial established that between approximately October 2008 and October 2012, these defendants and their co-conspirators obtained advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and exported those high-tech goods to Russia, while carefully evading the government licensing system set up to control such exports. The microelectronics shipped to Russia included analog-to-digital converters, static random access memory chips, microcontrollers and microprocessors. These commodities have applications, and are frequently used, in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia does not produce many of these sophisticated goods domestically.
Posobilov was the Procurement Director of Arc, Abduallev was the Shipping Manager and Diatlova was a salesperson. To induce manufacturers and suppliers to sell them these high-tech goods, and to evade applicable export controls, the defendants and their co-conspirators often provided false end user information in connection with the purchase of the goods, concealed the fact that they were resellers and falsely classified the goods they exported on export records submitted to the Department of Commerce. For example, Arc falsely claimed to be a traffic light manufacturer on its website. In fact, Arc manufactured no goods and operated exclusively as an exporter.
Despite this subterfuge, the evidence established that the defendants were supplying Russian government agencies with sophisticated microelectronics. For example, the investigation uncovered a letter sent by a specialized electronics laboratory of Russia’s Federal Security Service (FSB), Russia’s primary domestic intelligence agency, to an Arc customer regarding certain microchips obtained for the FSB by Arc. The letter stated that the microchips were faulty and demanded that the defendants supply replacement parts.
Shortly before trial, Arc President Alexander Fishenko pleaded guilty to all charges against him, including acting as an agent of the Russian government without prior notification to the Attorney General, as well as conspiring to export, and illegally exporting, microelectronics to Russia, money laundering conspiracy and obstruction of justice. Fishenko is currently awaiting sentencing.
When sentenced by U.S. District Judge Sterling Johnson Jr. of the Eastern District of New York, defendants Posobilov, Abdullaev and Diatlova face up to five years in prison for the conspiracy conviction, and up to 20 years in prison for each violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA). Posobilov also faces up to 20 years in prison for money laundering conspiracy.
The case is being prosecuted by Assistant U.S. Attorneys Daniel Silver, Una Dean, Richard Tucker and Claire Kedeshian of the Eastern District of New York, as well as Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Three Defendants Convicted of Conspiring to Illegally Export Controlled Technology to the Russian MilitaryRead the Press Release
Earlier today, after a month-long trial, Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova were convicted of all counts, including conspiring to export, and illegally exporting, controlled microelectronics to Russia. Posobilov was also convicted of money laundering conspiracy. These defendants, all of whom worked at Arc Electronics, Inc. (Arc), a Houston, Texas-based corporation, and eight other individuals were originally charged in October 2012. Five members of the conspiracy, including Arc owner Alexander Fishenko, previously pled guilty to related charges.
The convictions were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, John P. Carlin, Assistant Attorney General for National Security, Randall C. Coleman, Assistant Director of the FBI's Counterintelligence Division, and Douglas Hassebrock, Director of the Commerce Department Office of Export Enforcement.
“These defendants were key players in a sprawling scheme to illegally export sophisticated technology to Russia,” stated United States Attorney Capers. “Through lies and deceit, the defendants and their co-conspirators sold over $30 million of microchips, much of which was destined for Russian military and intelligence agencies.”
“Alexander Posobilov, Shavkat Abdullaev and Anastasia Diatlova evaded U.S. export laws to illegally send sophisticated microelectronics to Russia,” said Assistant Attorney General Carlin. “By purposefully circumventing U.S. law, including the International Emergency Economic Powers Act and the Arms Export Control Act, the defendants jeopardized our national security.”
“By putting a halt to this conspiracy, and stopping the flow of these dual-use components to the Russian military and intelligence services, this verdict represents a clear victory for our national security,” said Assistant Director Coleman of the FBI’s Counterintelligence Division.
“Today’s convictions send a strong message to those who willfully evade export control laws and jeopardize the national security of the United States. This case is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose aim was to illegally ship sophisticated U.S.-origin technology to Russia,” said Director of the Commerce Department Office of Export Enforcement Hassebrock.
The evidence at trial established that between approximately October 2008 and October 2012, these defendants and their co-conspirators obtained advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and exported those high-tech goods to Russia, while carefully evading the government licensing system set up to control such exports. The microelectronics shipped to Russia included analog-to-digital converters, static random access memory chips, microcontrollers and microprocessors. These commodities have applications, and are frequently used, in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia does not produce many of these sophisticated goods domestically.
Posobilov was the Procurement Director of Arc, Abduallev was the Shipping Manager and Diatlova was a salesperson. To induce manufacturers and suppliers to sell them these high-tech goods, and to evade applicable export controls, the defendants and their co-conspirators often provided false end user information in connection with the purchase of the goods, concealed the fact that they were resellers and falsely classified the goods they exported on export records submitted to the Department of Commerce. For example, Arc falsely claimed to be a traffic light manufacturer on its website. In fact, Arc manufactured no goods and operated exclusively as an exporter.
Despite this subterfuge, the evidence established that the defendants were supplying Russian government agencies with sophisticated microelectronics. For example, the investigation uncovered a letter sent by a specialized electronics laboratory of Russia’s Federal Security Service (FSB), Russia’s primary domestic intelligence agency, to an Arc customer regarding certain microchips obtained for the FSB by Arc. The letter stated that the microchips were faulty and demanded that the defendants supply replacement parts.
Shortly before trial, Arc President Alexander Fishenko pled guilty to all charges against him, including acting as an agent of the Russian government without prior notification to the Attorney General, as well as conspiring to export, and illegally exporting, microelectronics to Russia, money laundering conspiracy and obstruction of justice. Fishenko is currently awaiting sentencing.
When sentenced by United States District Judge Sterling Johnson, Jr., defendants Posobilov, Abdullaev and Diatlova face up to five years in prison for the conspiracy conviction, and up to 20 years in prison for each violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA). Posobilov also faces up to 20 years in prison for money laundering conspiracy.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Daniel S. Silver, Una A. Dean, Richard M. Tucker and Claire Kedeshian, as well as Trial Attorney David C. Recker from the Department of Justice’s Counterintelligence and Export Control Section, are in charge of the prosecution.
The Defendants:
Alexander Posobilov
Age: 61Shavkat Abdullaev
Age: 37Anastasia Diatlova
Age: 41E.D.N.Y. Docket No. 12 CR 626 (SJ)
Tarrant County Men Sentenced for Running $2.4 Million Ponzi SchemeRead the Press Release
FORT WORTH, Texas — Two Tarrant County men were sentenced to lengthy federal prison sentences following their guilty pleas earlier this year to a conspiracy charge stemming from their operation of an investment Ponzi scheme they ran from 2004 through 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Kurtis Keith Lowe, 63, of Fort Worth, Texas, and Robert Allen Blackburn, 49, of Arlington, Texas, were each sentenced on Friday, by U.S. District Judge John McBryde, to 60 months in federal prison and ordered to pay $2,373, 462 in restitution, jointly and severally. Each must surrender to the Bureau of Prisons on November 13, 2015.
Both Lowe and Blackburn pleaded guilty in July 2015 to one count of conspiracy to commit mail fraud.
According to documents filed in the case, in 2004, Blackburn, a licensed insurance agent, convinced a victim to invest money in Omni Capital Management Trust (OCMT), an entity created merely as a convenience for Lowe, OCMT’s sole owner. Blackburn knew OCMT was not a functioning company. Lowe deposited the investor’s check into OCMT’s business bank account and gave the proceeds to Blackburn. Lowe and Blackburn repeated this procedure several times.
By 2007, Blackburn was regularly recruiting individuals to invest in OCMT using materially false representations about OCMT. In particular, Blackburn falsely represented that victims’ funds would be invested in an annuity fund, when in fact, he knew the money would not be invested at all.
To entice investors to make multiple investments, Lowe and Blackburn created more bogus companies, including Amwest Capital Management (AMWEST) and National Fidelity Management (NFM). Lowe also opened accounts at an out-of-state mail service, and established separate telephone numbers for each company, to make investors believe the bogus companies were legitimate.
When investors requested account statements or tax forms, Blackburn would advise Lowe how much the investor had deposited, and Lowe would generate forms that falsely showed the investors’ money had been invested and had, in fact, appreciated.
Between January 2007 and April 2014, Blackburn solicited more than $2.4 million from 21 different investors using false material representations. None of the money was invested.
The FBI investigated the case.
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St. Thomas Man Pleads Guilty to Firearms Conspiracy ChargesRead the Press Release
St. Thomas, USVI – On Monday, October 26, 2015, Tequan Joseph, 23, pleaded guilty in District Court on St. Thomas to cons piracy to ship f irearms with obliterated serial numbers, unlawful transportation of those firearms, and to a Middle District of Florida charge of false statement n connection with purchase of a firearm, United States Attorney Ronald W. Sharpe announced. Sentencing is scheduled for February 25, 2016.
According to the plea agreement filed with the court, between August 10, 2013, and October 7, 2013, Joseph conspired with other individuals to unlawfully purchase firearms and mail those firearms with obliterated serial numbers from Jacksonville, Florida, to St. Thomas, Virgin Islands. A total of six firearms were shipped and recovered. Joseph is not a federal licensed firearms dealer and is not authorized to possess those firearms in the U.S. Virgin Islands. He faces a maximum sentence of five years in prison and a $250,000 fine. Additionally, Joseph faces a maximum of ten years in prison and a $250,000 fine for the Middle District of Florida firearms charge.
This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Southern California Man Sentenced for Smuggling Synthetic Drugs into Federal PrisonRead the Press Release
FRESNO, Calif. — James Steven Harris, aka Steve Harris, 45, of Loma Linda, was sentenced today to two years and six months in prison for his involvement in smuggling smokeable synthetic cannabinoids, commonly known as “spice,” “K2, or “incense,” to his brother who was then an inmate of Taft Correctional Institution, United States Attorney Benjamin B. Wagner announced.
On August 10, 2015, Steve Harris sentence pleaded guilty to two counts of making false statements under penalty of prosecution on Federal Bureau of Prisons visitor forms that he was not in possession of contraband, knowing that he was in possession of smokeable synthetic drugs containing XLR11. According to court documents, on one occasion Steve Harris successfully smuggled 15.5 grams of XLR11 into TCI for his brother Tracy McArthur Harris, aka Trey Harris, 42, and later attempted to smuggle 34.3 grams of XLR11, along with four packages of rolling papers, into the prison. At the time, XLR11 was a controlled substance analogue, which has since been made a Schedule I controlled substance.
At sentencing, United States District Judge Anthony W. Ishii stated: “The serious nature of smuggling contraband into a federal prison has serious consequences.”
Tracy Harris was subject to a prison disciplinary proceeding that added more time to his current 11-year prison term that he is currently serving for a drug conspiracy conviction. He was also sentenced in May to a consecutive one-year prison term for his involvement in obtaining the synthetic drugs from his brother. Court documents indicate that Tracy Harris, in turn, distributed the drug to other inmates at Taft.
A report by the Office of the Inspector General of the U.S. Department of Justice found that drugs reach federal prisoners primarily through inmate visitors.
This case was the product of an investigation by the Federal Bureau of Investigation and the Special Investigative Supervisor’s Office of Taft Correctional Institution. Assistant United States Attorney Karen A. Escobar prosecuted the case.
San Juan Puerto Rico Agrees to Make Investments in Clean WaterRead the Press Release
Under a settlement with the Department of Justice and the Environmental Protection Agency (EPA), the Municipality of San Juan has agreed to make substantial upgrades to its storm sewer systems. The upgrades and related cleaning activities are aimed at eliminating or minimizing daily discharges of large volumes of raw sewage and will minimize discharges of other pollutants into nearby water bodies, including the San Juan Bay Estuary and the Martin Peña Canal. The estimated cost of the upgrades and actions over the life of the agreement is $180 million.
“The residents of San Juan deserve a better storm sewer system, one that does not expose them to the serious health risks posed by untreated sewage,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The requirements of this settlement are good for the environment and necessary for the long-term health and safety of local waterways and communities.”
“Billions of gallons of raw sewage are released every year, threatening public health and the environment in San Juan,” said Regional Administrator Judith A. Enck for EPA. “This legally binding agreement will ensure that this sad legacy of sewage pollution is finally addressed.”
Storm water runoff in urban areas is collected through separate storm sewer systems and is discharged into local waterways. When rain falls on roofs, streets and parking lots, the water cannot soak into the ground and carries trash, bacteria, heavy metals and other pollutants into streams, often damaging health. In addition, property and infrastructure can be damaged by storm water runoff due to erosion. The primary method to control these storm water discharges is through the use of effective practices to protect water quality under a storm water permit issued under the Clean Water Act. Storm water permits do not authorize the discharge of raw sewage, which has been occurring in San Juan for years.
In addition to documenting daily discharges of untreated sewage, EPA documented that the Municipality of San Juan failed to implement its own storm water management plan, including failing to establish storm sewer maps to facilitate the detection of illegal discharges and failing to implement a program to detect illegal discharges and failure to provide routine cleaning and maintenance to its system. Between 2008 and 2013, EPA documented that pollutants, including millions of gallons of untreated sewage, were being discharged every day from the Municipality of San Juan’s system. In addition to collecting rain from streets, EPA determined that San Juan’s storm sewer system has been collecting sewage from homes through pipes that have been improperly connected to the storm sewers. EPA also determined that infiltration from cracked sanitary systems and direct connections of sanitary sewers to storm sewers have resulted in additional contributions of untreated sewage to the storm sewer systems.
The waters receiving the untreated sewage include those that are classified for activities where the human body may come into direct and indirect contact with the water, such as fishing, boating, swimming, wading and/or other recreational and commercial activities. Untreated sewage can carry bacteria, viruses and other harmful pollutants that can cause a number of illnesses. Direct and indirect human exposure to or contact with untreated sewage and contaminated waters discharged on a daily basis presents an imminent and substantial endangerment to human health and welfare.
Under this legal agreement, the Municipality of San Juan will come into compliance with their storm water permit, develop and implement a storm water management program to prevent pollutants from entering and being discharged from their storm sewer systems and to develop and implement a plan to identify and address issues within their systems, including eliminating illegal discharges. Illicit connections and discharges in some areas of San Juan must be eliminated within 10 years and in other areas within 14 years. Within eight years, the Municipality of San Juan must also submit a schedule for the completion of an investigation of and a design plan for eliminating all illegal connections and discharges to its municipal separate storm sewer systems in the remainder of the city of San Juan and San Juan must also implement the plan and complete construction within an EPA-approved schedule.
Additional requirements under the agreement include:
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Capital improvements: The Municipality of San Juan must install, inspect, maintain and replace warning signs at sewer outfalls, submit a vacuum truck sludge disposal plan and submit standard operating procedures for pump stations. The municipality must also submit a plan to address and abate backflow from the receiving waters into the storm sewer system east of the Stop 18 Pump Station.
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Asset management program: The Municipality of San Juan will develop an asset management program, including protocols and operating procedures for inspection, cleaning and repair of sewer infrastructure; consistently clean the sewer system; and submit a routine cleaning schedule and checklist to the EPA for review.
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Spill prevention control and countermeasures: San Juan will develop and implement a spill prevention control and countermeasures plan, as well as a spill control plan.
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Water quality monitoring and outfall inventory program: The municipality will sample and monitor water quality, maintain an electronic record of information on system outfalls and complete an inventory of all of its outfalls in the city of San Juan within three years.
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Warning Signs: The Municipality of San Juan will inform the public through warning signs posted at discharge points and through a public education program on the dangers of being exposed to these discharges.
- Urgent Action Registry: The Municipality of San Juan will maintain an Urgent Action Registry that will track all complaints by government agencies and individuals of illegal discharges into San Juan's storm sewer systems. San Juan will address these complaints within one to three years from the date a complaint is made. This is an innovative tool to address the multiple traditionally unaddressed complaints to bring relief to affected residents.
The Municipality of San Juan will consider green infrastructure projects to comply with obligations under the agreement. Green infrastructure is an environmentally friendly technique to manage storm water that uses vegetation, soils, and natural processes to manage water and create healthier, more resilient urban environments.
Discharges of untreated sewage from San Juan’s storm sewers disproportionately affect disadvantaged communities in the municipality, leading to the prevalence of gastrointestinal symptoms in areas such as the neighborhoods adjacent to the Martín Peña Canal. By requiring the municipality to prevent exposure to untreated sewage, EPA is advancing environmental justice in the community through the fair treatment and meaningful involvement of all people, regardless of race or income, in the environmental decision-making process.
The settlement was lodged today in the U.S. District Court of Puerto Rico, and is subject to a 30-day public comment period and approval by the federal court. The settlement will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html
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Rochester Woman Arrested on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tatiana Starling, 19, of Rochester, NY, was arrested and charged by criminal complaint in connection with her knowing and unlawful possession of a firearm which had been stolen from a residence at 1070 Lake Avenue in Rochester. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that according to the complaint, on July 29, 2015, Starling was the get-away driver after her boyfriend, Johnny Blackshell, along with Ramel Robinson, unlawfully entered the residence at 1070 Lake Avenue and stole a gun safe containing three firearms and numerous rounds of ammunition. The defendant is also accused of driving the men to another location to dispose of the safe after the firearms were removed.
The stolen firearms included an AK-47, a .40 caliber carbine rifle and a 12 gauge single shot shotgun. The AK-47 was later recovered by police hidden under the front porch of a residence on Clay Avenue. The gun has been linked ballistically to the gun used in the mass shooting at the Boys and Girls Club on August 19, 2015.
On September 16, 2015, Blackshell was formally charged in New York state court with Murder 1st Degree relating to that event. Ramel Robinson faces federal charges of unlawful possession of the firearms stolen from 1070 Lake Avenue. The shotgun was later recovered at a residence on Phelps Avenue, leading to the arrest of Joseph Lowry on a separate federal gun charge. The current location of the .40 caliber is unknown.
Starling will appear before U.S. Magistrate Judge Marian W. Payson on November 10, 2015.
“As we have stated before, this office will aggressively prosecute those who commit violent crimes, as well as those who assist such predators,” said U.S. Attorney Hochul.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, by the Federal Bureau of Investigation), under the direction of Special Agent in Charge Adam S. Cohen, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.
Portsmouth Bloods Gang Associate Sentenced to 3 Years in Heroin CaseRead the Press Release
NORFOLK, Va. – Jeffery R. Henry, 30, of Portsmouth, was sentenced today to 36 months in prison for his role in a conspiracy to distribute and possess with intent to distribute heroin.
Henry was an associate of the Portsmouth based Gorilla Mafia Bloods, a street gang led by Theodore M. Vann, aka Flatline, 32, and Antwane L. Williams, aka Neno, 26. All three men were indicted by a federal grand jury on May 17, 2015. Vann and Williams pleaded guilty in June 2015, while Henry pleaded guilty in July 2015. Williams was sentenced to 10 years in prison on Sept. 24, 2015. Vann is scheduled to be sentenced on Nov. 16, 2015.
According to court documents, Henry distributed heroin and other narcotics in the Ghent area of Norfolk, Portsmouth, and other places throughout the Eastern District of Virginia. Henry also traveled to Richmond, Petersburg, and New Jersey with his co-conspirators on multiple occasions to test the purity of the supply of heroin to ensure that it was a good product for resale.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated jointly by the FBI’s Norfolk Field Office and the Chesapeake and Portsmouth Police Departments. Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-60.
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Portland Woman Sentenced to 1½ Years for Mail and Wire FraudRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Beth M. Rogers, 46, of Portland, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 1½ years in prison and six years of supervised release for mail and wire fraud. She was also ordered to pay almost $209,000 in restitution. She pleaded guilty on March 17, 2015.
Court records show that Rogers operated TravelWise Cruises & Tours, a travel agency in Saco. Beginning in late 2011, Rogers began taking client money without making travel reservations for the clients who had provided the funds. She instead used the money to pay for the travel of other individuals who had booked travel through TravelWise. She misapplied money from more than 50 clients in this fashion until mid-2012, when her scheme was discovered.
The investigation was conducted by the Saco Police Department and the Federal Bureau of Investigation.Port Gamble S’Klallam Tribal Member Convicted of Five Counts of Aggravated Sexual Abuse of a MinorRead the Press Release
A 59–year old enrolled member of the Port Gamble S’Klallam Tribe was convicted today in U.S. District Court in Tacoma of five counts of aggravated sexual abuse of a minor. The jury deliberated three hours before finding LEROY CHARLES guilty following a five day trial. U.S District Judge Ronald B. Leighton has scheduled sentencing for February 5, 2016. CHARLES faces a mandatory minimum 30 years in prison and up to life in prison for the five convictions.
According to testimony at trial, CHARLES assaulted the young teens at various times and places on the Port Gamble S’Klallam reservation between 2000 and 2005. CHARLES overpowered the victims and in one case drugged the teenager so that he could commit the sexual assault. CHARLES threatened to kill each of the teens and their families if they disclosed the abuse. When one of the victims left the reservation to live, CHARLES traveled to the victim’s out-of-state residence, again threatening the victim and saying he would be able to find the victim anywhere. The victims, who are now in their 20’s disclosed the abuse when they learned CHARLES was going to be released from state incarceration after serving a sentence for unrelated criminal conduct.
The case was investigated by the Port Gamble S’Klallam Police and the FBI. The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Bruce Miyake.
Owner of Two New York Medical Clinics Pleads Guilty to Role in $55 Million Health Care Fraud SchemeRead the Press Release
Defendant Laundered Millions through Sham Vendors, Generating Cash to Pay Illegal Kickbacks
The owner of two medical clinics in Brooklyn, New York, pleaded guilty today to her role in a $55 million health care fraud and money laundering conspiracy.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG’s) Office of Investigations, Special Agent in Charge Shantelle P. Kitchen of Internal Revenue Service-Criminal Investigation (IRS-CI) New York and Inspector General Dennis Rosen of New York State Medicaid made the announcement.
Valentina Kovalienko, 46, pleaded guilty before U.S. District Judge Roslynn R. Mauskopf of the Eastern District of New York to conspiracy to commit health care fraud and conspiracy to commit money laundering. Her sentencing date has not yet been scheduled. Pursuant to her plea agreement, Kovalienko agreed to forfeit $29,336,497.27, which amount she admitted is traceable to her criminal conduct.
According to admissions made in connection with her plea, from approximately February 2008 to February 2011, Kovalienko and others executed a scheme in which patients were paid cash kickbacks to subject themselves to medically unnecessary physical and occupational therapy, diagnostic tests and office visits that were not performed by licensed professionals, and for which the clinics billed Medicare and Medicaid. Kovalienko also admitted that, to support the fraudulent claims, she paid occupational and physical therapists to falsify patient charts and billing records.
In connection with her guilty plea, Kovalienko admitted that she diverted funds deposited into the clinics’ bank accounts by Medicare and Medicaid to herself and her co-conspirators and to the patients to whom kickbacks were paid. Kovalienko admitted that she did so by writing checks from the clinics’ bank accounts to an elaborate network of sham third-party vendors, purportedly in the business of providing “consulting,” “advertising” and “computer support” services, which checks she and her co-conpsirators cashed for their own benefit and to perpetuate the scheme by paying kickbacks to patients.
To date, at least 10 other individuals have pleaded guilty to participating in the scheme, including the former medical directors of both clinics, three former occupational therapists, a former physical therapist, three ambulette drivers, the owner of several of the sham vendors used to launder the money and a former patient who received illegal kickbacks.
In July and August 2014, three additional clinic managers and one ambulette driver were also charged with crimes arising from the scheme. A trial date has not yet been set.
The case was investigated by HHS-OIG, IRS-CI and the New York State Office of the Medicaid Inspector General, and was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. The case is being prosecuted by Trial Attorneys Bryan D. Fields, A. Brendan Stewart and F. Turner Buford of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Operation Mexicalley Main Conspirator Sentenced to 144 MonthsRead the Press Release
Jackson, TN – The main conspirator in a drug ring responsible for distributing massive amounts of methamphetamine throughout West Tennessee has been sentenced to 144 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, between February and August 2013, Richard E. Alley, 41, of Hardin County, conspired with more than a dozen others to unlawfully distribute and possess with intent to distribute significant quantities of meth in various West Tennessee jurisdictions, including Clifton, Savannah, Wayne County and Hardin County.
Operation Mexicalley, a year-and-a-half-long investigation conducted by federal, state, and local law enforcement agencies, revealed that Alley and 17 others were immersed in a drug ring conspiracy to distribute meth and marijuana in the state’s western district. Fifteen of the defendants were indicted in January 2014 and three others in August 2014. Alley’s drug trafficking organization was transporting the meth from Mexico into West Tennessee for distribution, hence the name "Operation Mexicalley." Thus far, 17 of the defendants have pled guilty and 14 have been sentenced. One defendant, Oscar Alvarez Franco, remains a fugitive.
Over the course of Operation Mexicalley’s duration, 13 state and federal search warrants were executed on residences of the defendants. During these searches, law enforcement officials seized more than 640 grams of meth and over 80 grams of marijuana. Law enforcement also seized 75 firearms, which included an arsenal of pistols, revolvers, rifles, and shotguns.
In July 2015, Alley pled guilty to one count of conspiracy to distribute and possess with intent to distribute meth. He also pled guilty to one count of aiding and abetting, distributing, attempting to distribute, and possessing with intent t0 distribute meth.
Last week, Chief U.S. District Judge J. Daniel Breen sentenced Alley to 144 months on the conspiracy charge and 60 months on the aiding and abetting charge. The sentences will be served concurrently.
The case was investigated by the Federal Bureau of Investigation, Tennessee Bureau of Investigation, 24th Judicial Drug Task Force, and Lexington Police Department.
Assistant U.S. Attorney Beth C. Boswell prosecuted the case on the government’s behalf.
Milford Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, NEW HAMPSHIRE - Seamus Murphy, 33, of Milford, New Hampshire, entered a guilty plea to one count of bank robbery announced Acting United States Attorney Donald Feith.
Murphy walked into a Citizens Bank in Stratham, New Hampshire, on February 24, 2015 and gave the teller a note demanding money. The teller gave Murphy a quantity of United States currency. Surveillance cameras captured images of the robbery which were broadcast on local news outlets. Numerous individuals identified Murphy from the photographs and he was apprehended the next day, February 25, 2015. Murphy – who faces a maximum sentence of twenty years in prison and criminal fines of up to $250,000 – will be detained pending sentencing, which is presently scheduled for January 29, 2016.
“The successful resolution of this bank robbery is due to the great investigative work of the Stratham Police and the assistance of the Federal Bureau of Investigation,” stated Acting United States Attorney Donald Feith. “Bank robbery, even an unarmed bank robbery, is an inherently dangerous crime that causes great turmoil to its victims. We will continue to work with our state and local partners to vigorously prosecute these dangerous crimes.”
This case was investigated by the Stratham Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Georgiana Konesky.
Maryland Man Pleads Guilty to Assault with Intent to Kill Charges for Stabbing Three People at Home in the Middle of the NightRead the Press Release
WASHINGTON – Ernest Johnson, 21, of Baltimore, Md., pled guilty today to three counts of assault with intent to kill while armed for stabbing his ex-girlfriend and two others in her apartment in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Johnson pled guilty in the Superior Court of the District of Columbia. The Honorable Milton C. Lee scheduled sentencing for Jan. 22, 2016.
According to the government’s evidence, Johnson was previously in a romantic relationship with one of the victims, a 24-year-old woman. On the date of the attack, Aug. 15, 2015, they were no longer in a romantic relationship. At that time, Johnson’s ex-girlfriend was in a romantic relationship with another man. The ex-girlfriend was living with her 75-year-old grandmother in an apartment in Northeast Washington.
On Aug. 15, 2015, at approximately 4:30 a.m., Johnson entered the ex-girlfriend’s apartment through the balcony door. First, he went into the grandmother’s bedroom and began to strangle her, causing her to lose consciousness. He also stabbed her numerous times in the back, head, and neck. Johnson then entered the second bedroom, where his ex-girlfriend and her new boyfriend were asleep. He locked the door behind him. Johnson then stabbed his ex-girlfriend approximately 28 times in back, arm, neck, chest, hand, and other parts of her body. He also stabbed the new boyfriend several times in the head, and the knife went through his skull.
Two witnesses were asleep in the living room of the apartment. One heard the screaming and broke into the locked bedroom, picked up a vacuum cleaner, and hit Johnson with it to stop the attacks against his ex-girlfriend and the boyfriend. The second witness also came into the room to assist. Johnson then left the apartment, fleeing the scene.
Two knives were recovered inside the apartment.
All three victims were transported to the hospital by ambulance. The grandmother remained at the hospital for approximately nine days. Doctors believed that she may have had a laceration to the inside of her throat, and so she was not permitted to eat food or liquid through her mouth for approximately one week. The man was at the hospital for two days and was released. Several days thereafter, however, he began to have seizures and was readmitted for approximately four days. Since this incident, he has had memory issues and headaches. Finally, Johnson’s ex-girlfriend was admitted to the hospital for almost two months. She has severe spinal cord damage from the stabbing that initially left her paralyzed. Through extensive physical therapy, she has regained some motor skills, but remains significantly impaired and unable to walk on her own. She had several surgeries on her left hand and has not regained full use of it.
Johnson was apprehended in Baltimore shortly after the attack. He has been in custody ever since. In a custodial interview after his arrest, he admitted to the stabbings.
In announcing the plea, U.S. Attorney Phillips commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department and U.S. Marshals Service. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Erica Vample and Victim/Witness Advocate Meshall Thomas. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Logan county woman pleads guilty to submitting fraudulent federal tax returnsRead the Press Release
CHARLESTON, W. Va. - Maria Martin, 64, of Chapmanville, West Virginia, pleaded guilty today in federal court in Charleston to preparing fraudulent tax returns, announced United States Attorney Booth Goodwin. Martin admitted that from 2011 through 2013, she prepared 43 fraudulent tax returns from her Logan County home. Specifically, Martin admitted that she claimed tax credits for her clients to which she knew they were not entitled, knowing that the improper credits would increase their tax refunds. Martin filed the fraudulent returns electronically and directed that the inflated refunds be deposited in bank accounts that she designated. Upon receipt of the refunds, Martin split the money with her clients. As a result of the fraudulent returns, the United States paid $188,665 in refunds to Martin and her clients to which they were not entitled. As part of her plea agreement, Martin has agreed to pay $188,655 in restitution.
Martin faces up to three years of imprisonment and a fine of up to $250,000. Sentencing is scheduled for February 18, 2016.
The Department of the Treasury, Internal Revenue Service conducted the investigation. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
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Laurel Man Pleads Guilty to his Role in the Murder of a Robbery VictimRead the Press Release
Baltimore, Maryland –Taylor King Pepe, age 21, of Laurel, Maryland pleaded guilty today to an armed robbery conspiracy, and to aiding and abetting the brandishing and use of a gun during a crime of violence, arising from the robbery of an individual who was shot and killed.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreement, on January 23, 2014, Pepe, Desmick Lewis, Amanda McAdoo and Lauren Maready planned to rob the individual of Oxycodone pills. Maready drove the conspirators to the location where McAdoo had arranged to meet the victim, purportedly to buy the pills from the victim.
When they arrived at the meeting place, Lewis hid behind a fence and McAdoo went to meet the victim in his car, while Pepe and Maready remained in her car. Lewis approached the robbery victim’s car and began shooting. Upon hearing the shots, Pepe and Maready drove away, leaving Lewis and McAdoo. The victim was discovered by Howard County Police a short time later, after his car had run into a tree. There were bullet holes in the driver’s side window and the victim had been shot several times in the head. He subsequently died. The conspirators met a short time later near McAdoo’s residence in Laurel, close to where the shooting occurred. Pepe told Maready to drive them to his friend’s home in Elkridge, Maryland, where Pepe and McAdoo went inside and discussed the robbery/murder. Maready then drove Pepe, McAdoo and Lewis to Lewis’ grandmother’s house in Columbia, Maryland. Avery Terry and another person joined them later and they discussed the robbery/murder. Terry then drove Pepe, McAdoo and Lewis, along with the gun, to Pepe’s home.
On January 25, 2014, Pepe, McAdoo and Maready were arrested in connection with the robbery and shooting. No search was conducted of Pepe’s residence at that time. On January 26, 2014, knowing that the other conspirators had been arrested, Lewis went to Pepe’s residence, spoke to Pepe’s mother, and went down to the basement alone to retrieve an item. Lewis texted Terry and the two men met at Lewis’ grandmother’s house. Law enforcement officers, who had set up surveillance at the residence, saw Terry trying to shield Lewis from view as they left the home and got into Terry’s car. Police made a traffic stop and arrested Lewis. A black .38 caliber revolver was recovered from Terry’s car. The victim was killed with a .38 caliber revolver.
Pepe faces a maximum sentence of 20 years in prison for the robbery conspiracy; and a mandatory minimum of seven years and a maximum of life in prison for aiding in the discharge of a firearm during a crime of violence. U.S. District Judge George L. Russell, III has scheduled sentencing for January 28, 2016 at 9:30 a.m. Pepe remains in federal custody.
Avery Terry, age 23, of Laurel, pleaded guilty in U.S. District Court to the January 21, 2014 robbery of a CVS Pharmacy in Elkridge, Maryland, using and brandishing a firearm during that robbery, and to being an accessory after the fact to the January 23, 2014 robbery resulting in death. Terry was sentenced to 181 months in prison.
Amanda McAdoo, age 20, of Laurel, Lauren Maready, age 20, of Highland, Maryland; and Desmick Lewis, age 23, of Columbia, have all pleaded guilty in Howard County Circuit Court to their roles in the January 23, 2014 robbery and murder. They are awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office, especially Assistant State’s Attorneys Brian Furlong and Devora Kirschner, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson and Special Assistant United States Attorney Lauren E. Perry, who are prosecuting the case.
Kansas City, Kan., Man Sentenced to 30 Years in Federal Prison for Drug TraffickingRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., was sentenced Monday to 30 years in federal prison for methamphetamine trafficking, U.S. Attorney Barry Grissom said.
Jesus Octavio Valdez-Aguirre, 25, Kansas City, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. The factual basis for the plea states that from January 2014 to September 2014 Valdez-Aguirre was part of drug trafficking organization that distributed methamphetamine in the metro Kansas City area. The methamphetamine was manufactured in Mexico, smuggled to California and then to Kansas.
On Aug. 14, 2014, FBI agents were watching when Valdez-Aguirre and another man drove a white Chevrolet Astro van into an alley behind a barber shop in Kansas City, Kan. They delivered 13 pounds of methamphetamine that conspirators hid in a Jeep Liberty at 1201 Minnesota. On Sept. 5, 2014, investigators arrested Valdez-Aguirre and other conspirators at 1248 Osage in Kansas City, Kan. Among the items seized were more than $5,000 in cash and a drug ledger.
Grissom commended the FBI and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Justice Department Sues Kansas City, Kansas, Public Housing Agency for Sexual HarassmentRead the Press Release
The Justice Department today filed a lawsuit against the Kansas City, Kansas, Housing Authority (KCKHA) and its former hearing officer, Victor L. Hernandez. The lawsuit alleges that Hernandez sexually harassed a female public housing applicant and a female public housing tenant, in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the District of Kansas, alleges that Hernandez subjected these two women to unwanted sexual conduct as a condition for favorable hearing decisions, including asking them sexual questions, showing pornographic pictures and videos, making explicit sexual comments and exposing himself. The complaint alleges that Hernandez engaged in this conduct while exercising his authority as an employee of KCKHA.
“No one, including those who seek public assistance for housing benefits, should be subjected to sexual harassment, particularly by the very people tasked with providing critical assistance,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue its vigorous enforcement of the Fair Housing Act against those who abuse their power and authority.”
“The Fair Housing Act is about more than providing a shelter,” said U.S. Attorney Barry R. Grissom of the District of Kansas. “It’s about equal opportunity and equal justice as well. Sexual harassment cannot be tolerated.”
The lawsuit arose from complaints filed by the two women about Hernandez’s conduct with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department.
“Women have a hard enough time finding a decent affordable place to live without having their access to that housing conditioned upon submitting to unwanted sexual advances,” said Assistant Secretary Gustavo Velasquez of HUD’s Fair Housing and Equal Opportunity Office. “HUD applauds the action the Justice Department is taking in this matter and remains committed to working together to protect the housing rights of women when those rights are violated.”
The suit seeks monetary damages to compensate victims and a court order barring future discrimination and requiring additional preventive measures.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Individuals who believe they were victims of the defendants’ conduct or who may have other information related to this lawsuit should contact the Justice Department toll-free at 1-800-896-7743, mailbox 8, or e-mail the department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination elsewhere can contact the department at 1-800-896-7743, or e-mail [email protected] or contact HUD at 1-800-669-9777.
KCKHA Complaint
Justice Department Files Suit Against Pittsfield Charter Township, Michigan, over Denial of Zoning Approval for Islamic SchoolRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Pittsfield Charter Township, Michigan, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Michigan Islamic Academy (MIA) to build a school on a vacant parcel of land located in the township. The case was brought by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Eastern District of Michigan.
The complaint, filed in the U.S. District Court of the Eastern District of Michigan in Detroit, alleges that Pittsfield Charter Township imposed a substantial burden on MIA’s exercise of religion when it refused to grant its request for rezoning to allow MIA to build a new school on a vacant parcel of land in the township. MIA, currently located in Ann Arbor, Michigan, sought to build in Pittsfield Township because it requires additional space for religious and secular educational purposes.
“Religious freedom is a cornerstone of our society, and that freedom includes being able to create the institutions and physical spaces needed for worship, religious education and other aspects of religious exercise,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department is committed to ensuring that all religious groups enjoy the right to practice their faiths freely, and will continue to challenge local land use decisions that substantially burden religious exercise.”
“The law prohibits the government from imposing land use regulations that substantially burden religious exercise unless there is a compelling government interest and uses the least restrictive means of doing so,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “This complaint alleges that Pittsfield Township denied the Michigan Islamic Academy's request to build a school in violation of that law. We filed this lawsuit to protect the right of all Americans to practice their religion and receive the religious instruction and education of their choice.”
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743 or the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at (313) 226-9151 or [email protected].
More information about RLUIPA, including a report on the department’s enforcement, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Pittsfield Township Complaint
Investment Advisor Sentenced in Connection with Rothstein CaseRead the Press Release
An investment advisor connected to the Rothstein case was sentenced this afternoon to 30 months in prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Michael Szafranski, 37, of Surfside was sentenced today in Ft. Lauderdale by United States District Judge William P. Dimitrouleas to 30 months in prison, to be followed by 3 years of supervised release. On July 29, 2015, Szafranski pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.
According to court records, including a stipulated statement of facts filed in connection with Szafranski’s guilty plea, it was discovered in 2009 that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. Szafranski, who was a registered investment advisor, conspired with Rothstein to induce certain persons into investing money in the confidential settlements by making material misstatements and omissions. Szafranski secretly received compensation from Rothstein and RRA while simultaneously employed by certain investors as a purportedly independent verifier of the legitimacy of the settlement transactions.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Husband and Wife from Bergen County, New Jersey, Admit Embezzling More Than $150,000 from Union Benefit PlanRead the Press Release
NEWARK, N.J. – A husband and wife from Northvale, New Jersey, today admitted using a union health care benefit plan to steal more than $150,000 for their personal use, U.S. Attorney Paul J. Fishman announced today.
Leonard Telesca, 62, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One of an indictment charging him with conspiracy to embezzle from a health care benefit program. Joann Telesca, 63, pleaded guilty before Judge Salas to Count Two of the indictment charging her with embezzling funds from the benefit program.
According to statements made and documents filed in court:
Between 2006 and 2011, Leonard and Joann Telesca operated the United International Brotherhood of All Trades, Technologies, Service, Administration, and Medical Workers Union (“All Trades Union”). All Trades Union sponsored a welfare fund to provide health care coverage to union participants, who were recruited over the internet. As administrators of the plan, Leonard and Joann Telesca were required to ensure that the funds were used exclusively for the benefit of union members.
Leonard Telesca admitted that from February 2009 through April 2011, he embezzled $159,598 in benefit funds for personal expenses. According to the indictment, the funds were used for mortgage payments on his residence and other rental property, cruises and luxury hotel stays. Joann Telesca admitted that from September 2009 through March 2010, she used $13,369 in benefit funds to make mortgage payments on a personal rental property in River Vale, New Jersey.
The charges to which Leonard and Joann Telesca pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Feb. 8, 2016.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region, and the Employee Benefit Security Administration (EBSA) under the supervision of New York Regional Director Jonathan Kay, with the investigation.
The government is represented by V. Grady O'Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel:
Leonard Telesca: Brian Neary Esq., Hackensack, New Jersey
Joann Telesca: Assistant Federal Public Defender Kevin F. Carlucci Esq., Newark
Houston Man Sentenced in Million Dollar Fraud Scheme Targeting Dozens of Elderly VictimsRead the Press Release
HOUSTON – Jermaine Comeaux, 35, has been ordered to federal prison following his convictions of one count of conspiracy to commit wire fraud and one count of aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Comeaux, of Houston, pleaded guilty March 16, 2015.
Today, U.S. District Judge Lynn Hughes ordered Comeaux to serve 240 months in federal prison for the conspiracy as well as a consecutive 24 months for the aggravated identity theft. The total 264-month-sentence will be immediately followed by five years of supervised release. He was further ordered to pay more than $1 million in restitution.
Between Jan. 1, 2013, and Nov. 30, 2013, Comeaux engaged in a wire fraud conspiracy to unlawfully obtain cash and defraud Compass Bank, a Federal Deposit Insurance Corporation - insured institution. Comeaux and others unlawfully obtained, shared and busted out multiple credit cards for cash and shared the proceeds with each other.
Comeaux owned and operated Swagg Clothing and Comeaux Graphixx and Print’n, two businesses used in the conspiracy. He applied for and obtained PayPal and Square accounts for these businesses in order to run fraudulent cards. Comeaux would swipe, and authorize his co-conspirators to swipe, fraudulently obtained credit cards through his business terminal using credit card processors PayPal had provided. Comeaux would also swipe fraudulently obtained cards through businesses under the control of his co-conspirators, including Majix Studio and Pop Goffney. After the cards were used, the funds were deposited into bank accounts or onto debit cards under the care, custody and control of Comeaux and his co-conspirators.
Comeaux admitted to processing multiple illegitimate transactions through his business during the course of the conspiracy.
Comeaux knew the credit cards were fraudulent because they had been applied for and obtained through the use of stolen identities. There were at least 70 victims whose identities had been stolen, all senior citizens between the ages of 70 and 95, living throughout the country.
Comeaux also knew the transactions going through his processors were illegitimate as there was no exchange of goods for services. Typically, the conspirators ran the fraudulently obtained credit cards for $1,000 to $5,000 until they reached their limits. When necessary, Comeaux and his co-conspirators would fabricate and submit false information, receipts, invoices and other documentation to PayPal regarding the fraudulent transactions to further facilitate the fraud.
In total, Comeaux and his co-conspirators stole approximately $1.1 during the conspiracy.
Comeaux was ordered into custody following the hearing today.
The charges are the result of an investigation conducted by the U.S. Secret Service and U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Honduran National Charged with Illegal Entry into the United States, Kidnapping Woman in Kansas City, MissouriRead the Press Release
CAMDEN, N.J. – A Honduran national appeared in federal court today to face charges that he illegally re-entered the United States after being deported and that he kidnapped a woman in Kansas City, Missouri, and raped her while they traveled to New Jersey, U.S. Attorney Paul J. Fishman announced.
José Amaya-Vasquez, 30, is charged by criminal complaint with one count of kidnaping and one count of illegal re-entry into the United States by an alien after removal. He appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court and was detained.
According to the complaint:
On June 7, 2014, Amaya-Vasquez was arrested in Kansas City and charged with domestic assault against the victim referenced in the complaint. After he was removed from the United States by immigration authorities on July 7, 2014, Amaya-Vasquez was caught trying to illegally enter the United States on Sept. 9, 2014. He was incarcerated for 30 days and removed from the United States on Oct. 22, 2014. On Feb. 14, 2005, he was again arrested trying to enter the country and failed to make his required July 13, 2005 immigration court appearance.
On May 23, 2015, Amaya-Vasquez met the victim in the parking lot of the Burlington Coat factory in Independence, Missouri. Amaya-Vasquez allegedly entered the victim’s vehicle, threatened her with a knife and instructed her to follow him. The victim’s two-year old child was in the vehicle. The victim followed Amaya-Vasquez to an abandoned house in Kansas City, where he allegedly raped her.
From May 24, 2015 through May 25, 2015, Amaya-Vasquez took the victim and the child towards New York. He stopped at motels in Englewood, Ohio, and Bellmawr, New Jersey, and continued to rape the victim.
On May 26, 2015, officers from the Bellmawr Police Department, acting on information from the Kansas City Police Department, located the victim in the Bellmawr motel. Amaya-Vasquez escaped from the motel as the officers approached. Later that morning, officers from Bellmawr and Mt. Ephraim, New Jersey, arrested Amaya-Vasquez a short distance from the motel. Amaya-Vasquez has been in custody in Camden County since his arrest.
The kidnapping charge carries a maximum potential penalty of life in prison. The illegal re-entry into the United States charge carries a maximum potential penalty of two years in prison.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia, special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to the charges. He also thanked the Kansas City Police Department and the Bellmawr Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Assistant Federal Public Defender Maggie Moy Esq., Camden
Henderson Doctor Pleads Guilty to Unlawful Distribution of Controlled SubstancesRead the Press Release
LAS VEGAS, Nev. – Mahesh Kuthuru, M.D., 47, of Henderson, Nev. pleaded guilty today to unlawfully writing prescriptions for oxycodone and other highly addictive prescription painkillers, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Kuthuru, who was indicted in October 2014, pleaded guilty to one count of distribution of a controlled substance, and is scheduled to be sentenced by U.S. District Judge Jennifer A. Dorsey, on Dec. 21, 2015, at 11:00 a.m. Kuthuru faces not more than 20 years in prison and a fine of up to $1 million.
According to the plea agreement, Kuthuru is a Nevada-licensed physician who operated a medical practice known as Desert Pain Management in Las Vegas. From July 6 to Nov.15, 2012, Kuthuru wrote prescriptions for Oxycodone, Percocet, MS Contin, Roxicodone and Methadone to undercover officers who posed as patients and who did not have a medical necessity for the drugs. During each visit, Dr. Kuthuru performed no or minimal physical exam, and failed to refer the patient to a specialist, physical therapist or other for further diagnosis.
The Centers for Disease Control and Prevention reports that since 1999, the amount of prescription painkillers prescribed and sold in the U.S. has nearly quadrupled, yet there has not been an overall change in the amount of pain that Americans report. Every day, 44 people in the U.S. die from overdose of prescription painkillers, and many more become addicted.
“We will continue to identify and prosecute bad doctors who are using their medical licenses to illegally deal drugs,” stated U.S. Attorney Bogden. “Overprescribing and falsely prescribing with no medical need leads to more abuse and more overdose deaths.”
This case is being investigated by the Nevada High Intensity Drug Trafficking Area (Nevada HIDTA) Pharm-Net Task Force, including the DEA, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, Henderson Police Department, North Las Vegas Police Department, and the Nevada Division of Investigations, and is being prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.
Harrisburg, Pennsylvania Man Sentenced to 13 Years in Federal Prison for Traveling with Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
DENVER – Matthew Hornung, age 34, of Harrisburg, Pennsylvania, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 156 months (13 years) in federal prison, followed by 10 years on supervised release, for traveling with intent to engage in illicit sexual conduct with a minor, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David A. Thompson announced. The defendant, who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Hornung was first charged by Criminal Complaint on March 28, 2015. He waived his right to indictment by a federal grand jury, and instead allowed the government to proceed by Information on April 20, 2015. He pled guilty before Judge Moore on June 8, 2015, and was sentenced today, October 26, 2015.
According to court documents, including the stipulated facts contained in the plea agreement, Hornung was arrested by HSI and the Colorado State Patrol on March 28, 2015, after driving from his home in Harrisburg, Pennsylvania to Colorado with the intent of having sex with children. The investigation was initiated after Hornung met an undercover special agent on line who was actually a special agent was using the persona of a single mother with children ages 10 and 14. The defendant and the special agent (using the undercover person), planned for the defendant to travel to Colorado with the intent of him having sex with the children. Hornung made it to Colorado, although his vehicle started to fail before he reached the agreed upon meeting place in Greeley. He was arrested by HSI and the Colorado State Patrol after he approached the marked CSP car for vehicle assistance and it was confirmed that he traveled to Colorado to have sex with the minor children.
“Traveling across the country in hopes of engaging in illicit sex with a minor victim is an act that shock the conscious,” said U.S. Attorney John Walsh. “This is a grave federal offense, and as demonstrated by Judge Moore, carries a lengthy prison sentence.”
"This significant prison sentence reflects the serious criminal nature of child exploitation, and the resulting permanent trauma inflicted on its young and helpless victims," said David A. Thompson, special agent in charge of HSI Denver. "Our HSI special agents are specially trained to identify, investigate and pursue prosecution against these child predators, and rescue their victims - and we take that responsibility very seriously.”
This case was investigated by HSI with assistance from the Colorado State Patrol.
The defendant was prosecuted by Assistant U.S. Attorneys Beth Gibson and Alecia Riewerts.
Guatemalan Man Convicted of Harboring Smuggled Aliens into the United StatesRead the Press Release
HOUSTON – A previously deported undocumented immigrant from Guatemala has entered a plea of guilty to harboring illegal aliens, announced U.S. Attorney Kenneth Magidson. Alberto Martinez-Vasquez, 26, was convicted today as he appeared in federal court before U.S. District Judge Vanessa Gilmore.
The case was initiated Sept. 10, 2015, when law enforcement responded to a loud notice complaint at a residence on the 9800 block of Gillman Street in Houston. The location was quickly identified as a stash house. Inside, officers observed 16 undocumented immigrants in their underwear, three of whom were women and one who was a minor.
As the officers arrived on the scene, Martinez-Vasquez attempted to flee, but was soon apprehended. Evidence showed that Martinez-Vasquez harbored the 16 undocumented immigrants at that location and charged a fee of $200 per week. He would collect their clothes upon their arrival and would not return them or permit them to leave until their family members made the required payments.
Martinez-Vasquez will remain in custody pending his sentencing hearing, set for Jan. 25, 2015. At that time, he faces up to 10 years in federal prison and a possible $250,000 fine.
The charges were the result of an investigation conducted by Homeland Security Investigations and the Houston Police Department. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Fresno Man Pleads Guilty to Laser Strike of Police HelicopterRead the Press Release
FRESNO, Calif. — Johnny Alexander Quenga, 28, of Fresno, Calif., entered a guilty plea today to aiming the beam of a laser pointer at Air 1, a Fresno Police helicopter, United States Attorney Benjamin B. Wagner announced.
In pleading guilty, Quenga acknowledged that he repeatedly struck Air 1 with a powerful green laser attached to an airsoft rifle. As a result, the airmen experienced visual interference, flash blindness, after-imaging, a persistent headache lasting several hours, and dizziness. Two Fresno Police officers, who were responding to calls to assist in the investigation of the laser incident, were also seriously hurt when their patrol vehicle was broadsided at a busy intersection in northeast Fresno.
Quenga is scheduled for sentencing before Senior U.S. District Judge Anthony W. Ishii on January 19, 2016. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. At his change of plea hearing, Quenga was remanded to the custody of the U.S. Marshals Service for failing to comply with conditions of his pretrial release.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration received 3,894 reports of incidents involving laser strikes on aircraft. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 150 reported incidents, with the majority in Bakersfield, Fresno, and Modesto. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
The case against Quenga was investigated by the Federal Bureau of Investigation and Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Four Sentenced in Smuggling Conspiracy Resulting in DeathRead the Press Release
McALLEN, Texas – A total of four people have been ordered to federal prison following their convictions related to an alien smuggling conspiracy that resulted in the death of two Guatemalan nationals, announced U.S. Attorney Kenneth Magidson.
Juan Manuel Garcia, 19, pleaded guilty to conspiracy to transport aliens and to transporting aliens resulting in death, while Julia Resendez, 33, Jose Manuel Lovato-Balleza, 24, and Eloy Mendoza Jr., 27, entered their pleas to conspiracy to harbor aliens. Resendez, Garcia and Mendoza are all residents of Sullivan City, while Lovato is a Mexican national.
Today, U.S. District Judge Randy Crane handed Garcia a total sentence of 144 months in federal prison which will be immediately followed by three years of supervised release. Resendez and Lovato-Balleza received respective sentences of 24 and 78 months, while Mendoza will serve a 108-month-term. At the hearing, the court ordered Mendoza and Garcia to pay restitution to the Guatemalan government in the amount of approximately $6,800. During the sentencing of Garcia, the court noted the frequent occurrences of rollovers in the area, the media reporting on them and that Garcia should have known the rollover was possible.
On Oct. 2, 2014, U.S. Border Patrol (BP) agents observed a truck appear to be transporting illegal aliens near Sullivan City. Garcia was driving and attempted to evade agents. He soon lost control of the vehicle on a caliche road, hitting an embankment and ejecting the majority of his passengers. BP agents responded immediately and observed Garcia and 11 illegal aliens at the scene of the rollover where one female Guatemalan national was found deceased. The majority of the other aliens had severe injuries and had to be hospitalized. Within a few days, a male Guatemalan national passed away as a result of his injuries sustained in the rollover.
Based on their investigation, law enforcement was able to determine that the aliens involved in the rollover had been harbored in two alien stash houses located in Sullivan City. Agents discovered 15 aliens at a house on Huisache Street and another 16 were being harbored at a house on Ebony Street. Mendoza and Lovato were determined to be the caretakers of the aliens found in the Huisache house, while Resendez was the caretaker in the Ebony house. Two of the aliens that Resendez was harboring were visibly injured and admitted to being in the rollover and fleeing afterwards. Both of these aliens indicated that they had been harbored by Mendoza and Lovato at the Huisache residence prior to the rollover.
The defendants will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The charges are the result of an investigation by Homeland Security Investigations, BP and the Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.Former St. Louis Assistant Prosecutor Pleads Guilty to Concealing Police Officers’ Assault of ArresteeRead the Press Release
A former prosecutor for the St. Louis Circuit Attorney’s Office pleaded guilty in federal court today to concealing her knowledge of St. Louis Metropolitan Police Department (SLMPD) officers’ assault upon an arrestee, announced U.S. Attorney Tammy Dickinson of the Western District of Missouri and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
Bliss Barber Worrell, 28, of Clayton, Missouri, pleaded guilty before U.S. District Judge Henry E. Autrey of the Eastern District of Missouri to misprision of a felony.
Worrell admitted that she failed to notify authorities that on July 22, 2014, police officers assaulted an arrestee in their custody, and that she took an affirmative step to conceal the felony. Worrell also admitted that she filed charges without disclosing knowledge of the assault to her colleagues, supervisors or the judge assigned to setting a bond. She admitted that she allowed the charges to stand despite later learning that the facts that made out the charge of attempted escape were fabricated to cover for injuries the arrestee sustained during the assault.
“Prosecutors are trusted to exercise discretion in enforcing the law and are charged above all with doing justice in a fair and impartial manner,” said Principal Deputy Assistant Attorney General Gupta. “In this instance, the defendant ran afoul of her obligation to uphold the Constitution, and must therefore be held to answer for her actions.”
“An officer of the court allowed her friendship with a police officer to eclipse her public obligation to uphold justice,” said U.S. Attorney Dickinson. “This remains an ongoing investigation that extends farther than this defendant’s role in covering up an egregious civil rights violation.”
Worrell served as an assistant circuit attorney (ACA) in the St. Louis Circuit Attorney’s Office Misdemeanor Division from August 2013 through July 2014. In that capacity, she prosecuted criminal violations of Missouri state statutes on behalf of the state of Missouri. One of her duties was to make determinations as to whether there was probable cause that an individual committed a crime, based on evidence provided to her by law enforcement and/or civilian witnesses.
According to today’s plea agreement, Worrell developed a close friendship with a veteran officer of the SLMPD, who is not identified in court documents. On July 22, 2014, the officer informed Worrell that an individual, identified as M.W., was arrested at Ballpark Village by another officer for possessing the veteran officer’s daughter’s credit card. On July 23, 2014, the veteran officer provided Worrell with additional details and told Worrell that he had thrown M.W. against a wall, beat him up, thrown a chair at him and “shoved [his] pistol down the guy’s throat.” After the conversation, Worrell met the arresting officer who confirmed that M.W. was found with stolen credit cards, and that M.W. had resisted arrest and attempted to flee.
Working with a new ACA, Worrell issued charges against M.W. herself, including charges for resisting and attempting to escape, despite knowing that she should wait for an ACA without personal knowledge of the case to become available. Worrell concealed her knowledge that M.W. had been assaulted at the police station.
After issuing the charges, Worrell had another conversation with the veteran officer and learned that the attempted escape charge was fabricated. Worrell concealed this information from her supervisors, allowing the charge to stand.
This case is being investigated by the FBI’s St. Louis Division. The case is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark of the Western District of Missouri, who has been appointed as Special Attorney to the U.S. Attorney General, and Trial Attorney Fara Gold of the Civil Rights Division. The U.S. Attorney’s Office of the Western District of Missouri is prosecuting this case with the Civil Rights Division due to the recusal of the U.S. Attorney’s Office of the Eastern District of Missouri.
Worrell Plea Agreement
Former Employee of NSA Subcontractor Pleads Guilty to Filing False TimesheetsRead the Press Release
AUGUSTA, GA: Jesse James Anderson, 34, of Augusta, Georgia pled guilty earlier this week to an information charging him with making false statements, in violation of 18 U.S.C. § 1001. The false statements concerned the number of hours he worked for a National Security Agency (“NSA”) subcontractor.
According to evidence presented during the guilty plea hearing, Anderson worked as a linguist for an NSA subcontractor from February 1, 2012 to January 31, 2014. During this time, Anderson submitted numerous timesheets falsely stating the number of hours he had worked. In total, Anderson claimed he worked 736.25 more hours than he actually did, which caused the United States to pay out $69,276.55 more than was actually owed.
United States Attorney Edward J. Tarver said, “False claims submitted to the United States for payments not owed is theft and should be punished to the full extent of the law. Protecting taxpayer money is a top priority for this United States Attorney’s Office.”
Anderson faces a maximum penalty of 5 years in prison and a $250,000.00 fine. In addition, the Court can order Anderson to pay restitution in the amount of $69,276.55.
NSA Office of Inspector General Investigator Kristen M. McGrath conducted the investigation which led to the information and plea. Assistant United States Attorney C. Troy Clark is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former Davis, Ill. Resident Pleads Guilty to Failure to Register as A Convicted Sex OffenderRead the Press Release
ROCKFORD — A former Davis, Ill. resident pleaded guilty today before U.S. District Judge Frederick J. Kapala to a charge of failure to register under the federal Sex Offender Registration and Notification Act (“SORNA”). MARK STEPHEN CURTIS, 29, who moved from North Carolina to Davis, Ill. during September 2014, admitted in a written plea agreement that he was a sex offender required to register in Illinois under SORNA. According to the plea agreement, Curtis remained a resident in Davis, Ill. until at least Oct. 19, 2014, but did not register as a sex offender as required, despite knowing that he needed to register within three days of moving to a new state.
Curtis faces a maximum sentence of 10 years’ imprisonment, a term of supervised release following imprisonment of at least 5 years and up to life, and a fine of up to $250,000. Sentencing for Curtis is set for Feb. 2, 2016, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Roberto Robinson, Acting United States Marshal for the Northern District of Illinois.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Former Chief Clerk of the Chatham County Probate Court Sentenced to 6 Years in Prison for over $750,000 in Theft from Probate CourtRead the Press Release
SAVANNAH, GA –KIM H. BIRGE, 61, the former Chief Clerk of the Chatham County Probate Court, was sentenced Friday by United States District Court Judge William T. Moore, Jr. to serve 6 years in federal prison for a scheme to steal money that was entrusted to the Probate Court. Birge pled guilty in July to mail fraud.
According to the allegations contained in the indictment and testimony presented in during court proceedings, between January 2011 and November 2014, Birge embezzled and stole more than $750,000 from the Probate Court’s bank accounts. Birge would deposit funds sent to the Probate Court for conservatorships into the Court’s bank accounts, but then wrote 342 checks payable to cash out of those accounts for her personal benefit.
United States Attorney Edward Tarver stated, “The victims in this case entrusted the probate court to keep money they were entitled to safe and secure. Sadly, for years the defendant was stealing and spending that money. Thanks to the investigative efforts of our law enforcement partners, she is now being held accountable for her crimes. The United States Attorney’s Office remains committed to prosecuting corruption at every level of government and will not tolerate abuse of the public’s trust.”
Glen M. Kessler, Resident Agent in Charge of the United States Secret Service, stated “Real people were harmed here. Using the guise of her position, this defendant pilfered the probate court accounts for her own use, but the victims she left behind will suffer for her actions for years to come. The U.S. Secret Service and our law enforcement partners will continue to root out fraud regardless of where it is found.”
The investigation of the Birge case was jointly conducted by the United States Secret Service and the Savannah Chatham Metropolitan Police Department. Assistant United States Attorneys Brian Rafferty and Scarlett S. Nokes prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former BVU Official, Bristol Mayor Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – The former Mayor of Bristol, Virginia and a former member of the Board of Directors of Bristol Utilities Authority (BVU), pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to charges related to the illegal sale of NASCAR tickets.
Paul Hurley, 74, of Bristol, Va., was a member of the Board of Directors for BVU from 2009-2014. Prior to that, the defendant was a member of the Bristol, Virginia Economic Development Committee and also served as both a member of the Bristol, Virginia City Council and as the city’s Mayor. Today in District Court, Hurley waived his right to be indicted and pled guilty to two-count Information charging him with one count of mail fraud and one count of lying to a Federal grand jury.
“Mr. Hurley abused his position of trust with the Bristol Virginia Utilities Authority for his own personal benefit and then lied to the grand jury to cover up his crimes,” United States Attorney Anthony P. Giorno said today. “This is a sad and tragic case where an individual with a history of public service has, by his actions, forfeited his job, his reputation, his standing in the community and potentially his freedom for a few thousand dollars. I commend the efforts of the investigating agencies that led to these convictions, which should serve as a warning to others that criminal conduct by white collar professionals will not be tolerated.”
“The oath pledged for committing oneself to public service and that of one sworn before a federal grand jury is no different; both expect behavior beyond reproach, integrity when faced with dilemmas and consequences when either is breached,” Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division said today. “Mr. Hurley will soon face consequences, not yet determined by the courts, for his repeated behavior of using property owned by BVU for his personal gain and then lying about it, while under oath, to a federal grand jury. Public corruption remains the Bureau’s top criminal priority, and we encourage citizens to report unethical and illegal activity to law enforcement as soon as they become aware.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Zachary Lee, and an agreed upon statement of facts filed with the court, between 2009 and 2014 the defendant served as the chairman of the City of Bristol’s Economic Development Committee. Acting in that role, Hurley obtained NASCAR tickets for two annual races held in Bristol, Va. Those tickets were purchased by BVU at Hurley’s request, for what he said would be used for “economic development” purposes.
Hurley claimed the tickets purchased for him by BVU would be given, free of charge, to representatives of business who showed an interest in re-locating businesses to Bristol, Virginia. However, Hurley admitted today that he lied when he claimed the tickets would be used for economic reasons and instead he sold those NASCAR tickets to friends, ticket scalpers and others, all for his own personal, financial benefit.
In all, Hurley sold at least 50 NASCAR tickets provided to him free of charge for economic purposes by BVU. The value of the tickets sold by Hurley was more than $5,000.
On July 20, 2015, Hurley appeared as a witness before a federal grand jury investigating practices at BVU. Hurley, being a former Chairman of the Board of the Directors of BVU, was called as a witness to determine if he had knowledge or involvement in corruption at BVU, specifically regarding the purchasing of NASCAR tickets by the utilities authority. After being placed under oath, Hurley made false declarations to the grand jury in response to questions regarding the practice of BVU purchasing and distributing NASCAR tickets, including his own actions relating to his use of tickets for economic development purposes. When specifically asked if he ever sold the tickets, Hurley said “I don’t recall that.”
At sentencing, Hurley faces a maximum possible penalty of up to 20 years in Federal prison on the mail fraud charge and a maximum possible penalty of up to five years in Federal prison on the perjury charge. The defendant has also agreed to pay $5,000 in restitution to Bristol Virginia Utilities Authority and to forfeit an additional $10,000.
The investigation of the case, which remains ongoing, is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
Federal Jury Convicts Eagle Pass Brothers for Role in Cocaine Distribution ConspiracyRead the Press Release
Late Friday in Del Rio, a federal jury convicted 36–year-old Xavier Cardona and his 32-year-old brother, Michael Cardona of distributing approximately two kilograms of cocaine in the Eagle Pass, TX, area announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Acting Homeland Security Investigations (HSI) Special Agent in Charge Mark Dawson, San Antonio.
Jurors found the brothers, owners of Real Street Paint and Body Shop in Eagle Pass, guilty of conspiracy to possess with intent to distribute over 500 grams of cocaine. They also found Michael Cardona guilty of possession with intent to distribute less than 500 grams of cocaine.
Evidence presented in trial revealed that from January 2009 until April 2014, the Cardonas used Real Street Paint and Body Shop and Michael’s residence to sell cocaine and launder drug proceeds. The Cardona brothers used the proceeds from their cocaine distribution to fuel their lifestyle of custom built modified cars that they showed at various car shows in Texas and to buy and remodel homes. During recorded phone calls played at trial, Michael Cardona stated that he provided cocaine to other dealers already packaged and cut so that it would move more quickly. Testimony and evidence showed that the Cardonas also employed firearms in their drug trafficking business. A search of the residences of both brothers resulted in the seizure of $162,795 in currency, approximately 160 packages of cocaine ready for distribution and five weapons.
The Government is seeking the criminal forfeiture in this case of property owned by the defendants including Michael Cardona’s residence located on Roosevelt Street in Eagle Pass as well as five firearms and an assortment of ammunition, magazines and firearm accessories. Those items, along with two vehicles and the U.S. Currency which have already been forfeited to the Government, were seized by federal authorities as a result of related search warrants executed in April 2014.
Both defendants have remained in federal custody since their arrests on April 23, 2014.
Both defendants face between five and 40 years in federal prison on the drug conspiracy charge. Michael Cardona also faces up to 20 years in federal prison on the drug possession charge. Sentencing is scheduled for June 13, 2016, before United States District Judge Alia Moses in Del Rio.
The case resulted from a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. Assistant United States Attorneys Ralph Paradiso, Lewis Thomas and Diana Cruz-Zapata are prosecuting this case on behalf of the Government.
Essex County, New Jersey, Man Sentenced to 114 Months for Armed CarjackingRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man was sentenced today to 114 months in prison for brandishing a firearm while stealing a car in Newark, U.S. Attorney Paul J. Fishman announced.
Raheem Sylla, 24, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
During the early morning of Sept. 22, 2014, Sylla and a conspirator allegedly approached a 2000 Chevrolet Tahoe parked on a Newark street. Sylla went to the front driver’s window of the Tahoe, pointed a firearm at the driver’s chest and ordered the driver out of the car. The other conspirator approached the front passenger’s side window of the Tahoe and ordered the other passenger out of the car. Sylla and the other male then entered the car and fled.
In addition to the prison term, Judge Salas sentenced Sylla to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent in Charge George P. Belsky; the Newark Police Department, under the direction of director Eugene Venable and Chief Anthony Campos; the Rutgers University Police Department, under the direction of Executive Director of Police Services Kenneth Cop; and the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
During Jury Selection Today Ft. Smith, Arkansas Man Pleads Guilty to Transporting Women for ProstitutionRead the Press Release
In Waco, 23-year-old Emmanuel Bailey of Ft. Smith, Arkansas, faces up to ten years in prison after pleading guilty this morning to admitting to transporting an individual across state lines for the purposes of prostitution announced, United States Attorney Richard L. Durbin, Jr.
During jury selection before United States District Judge Walter S. Smith, Jr., Bailey pleaded guilty to one count of the Mann Act. By pleading guilty, Bailey admitted he knowingly transported an individual in interstate commerce, from Arkansas to Texas, with the intent that such individual engage in prostitution.
On June 8, 2015, Bailey was identified in the parking lot of a Waco Motel, dropping off a female who had agreed to have sexual intercourse with an undercover McLennan County Sheriff’s Office Detective, for money. The investigation determined that Bailey and the individual had traveled to several Texas cities, as well as Louisiana and Arkansas, utilizing an internet site for the purposes of prostitution.
Bailey has remained in custody since his arrest on June 8, 2015. Sentencing is scheduled for January 6, 2016, before Judge Smith in Waco.
The case resulted from an investigation being led by the McLennan County Sheriff’s Office, with assistance from Homeland Security Investigations, Federal Bureau of Investigation, Ft. Smith (AR) Police Department, St. Louis County (MO) Police Department, and the United States Attorney’s Offices for the Western District of Arkansas and Eastern District of Missouri.
This case is being prosecuted by Assistant United States Attorney Mary Kucera.
Department of Justice and Federal Trade Commission Support Reform of Virginia Laws that Curb Competition, Limit Consumer Choice, and Stifle Innovation for Health Care ServicesRead the Press Release
Agencies Submit Joint Statement Regarding Virginia Certificate-of-Need Laws for Health Care Facilities
The Department of Justice’s Antitrust Division and the Federal Trade Commission have recommended that Virginia reform its laws regulating the building of hospitals and the process of health care services.
In response to a request by Kathy Byron, a Virginia state delegate, the joint statement submitted to the Virginia Certificate of Public Need Work (COPN) Group suggests the state consider whether its COPN program best serves the needs of its citizens.
“The evidence suggests that certificate-of-need laws have not served consumers well,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “They raise the cost of investment in new health care services and can shield incumbents from competition that would benefit consumers and lower costs. By reexamining the certificate-of-need process state policymakers have an opportunity to invigorate competition in this important sector, to the benefit of patients, employers and other health care consumers.”
Although Certificate-of-Need (CON) laws vary considerably by state, these laws, including Virginia’s COPN laws, typically require certain healthcare providers to obtain state approval before expanding, establishing new facilities or services or making certain large capital expenditures.
According to the joint statement, the Department of Justice and FTC historically have urged states to consider repeal or reform of their CON laws because they can prevent the efficient functioning of health care markets that may harm consumers. CON laws have created barriers to expansion, limited consumer choice and stifled innovation.
Incumbent providers may use CON laws when seeking to stop or delay entry by new competitors. CON laws can also deny consumers the benefit of an effective remedy for antitrust violations and can facilitate anticompetitive agreements.
DeKalb County, Georgia, Sheriff’s Captain Charged with Encouraging Excessive Force at County Jail and Obstruction of JusticeRead the Press Release
Leonard Dreyer, a captain with the DeKalb County, Georgia, Sheriff's Office, has been indicted by a federal grand jury in the Northern District of Georgia on charges of encouraging Dwight Hamilton, a former corrections officer, to use excessive force against an inmate at the DeKalb County Jail and for attempting to obstruct justice by persuading officers who witnessed the incident to write false reports. Dreyer was also charged with obstructing justice by making false statements to an FBI agent investigating the allegations.
Dreyer, 50, of Decatur, Georgia, was arraigned today. He was indicted by a federal grand jury on Oct. 20, 2015.
Hamilton, who was indicted earlier this year for using excessive force and writing false reports, has been charged in the same indictment with additional counts of excessive force and obstruction of justice.
According to the indictment and other information presented in court: Dreyer began working for the DeKalb County Sheriff’s Office in 2004 and worked as a supervisor in the jail from 2010 to 2012. Hamilton worked in the jail from 2005 to 2012. In 2011 and 2012, Hamilton, who was supervised by Dreyer, tased inmates without justification, many of them multiple times, in five separate incidents during his time at the jail. The inmates suffered injuries as a result of the tasing. The superseding indictment charges that in all five instances, Hamilton used excessive force and thereby violated the inmates’ Constitutional rights.
Following four of the five tasing incidents, Hamilton wrote a false report with the intent of impeding, obstructing and improperly influencing the investigation. In the first report, Hamilton falsely reported that the victim “made a step toward” Hamilton immediately before Hamilton tased him.
In another report, Hamilton falsely wrote that the victim failed to comply with Hamilton’s commands before Hamilton tased him. Before one of the five incidents, Dreyer directed Hamilton to tase an inmate who was mouthing off to him. After Hamilton repeatedly tased the inmate without legal justification, Dreyer encouraged three witness officers to write false reports that were favorable to Hamilton and would justify the tasing. During the federal investigation of the incident, Dreyer also made false statements to an FBI agent.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorney Brent Alan Gray of the Northern District of Georgia and Trial Attorney Christopher Perras of the Civil Rights Division.
Dreyer Superseding Indictment