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Thursday 10 September 2015
Auto Parts Distributor Pleads Guilty to Manufacturing and Selling Pirated Mercedes-Benz SoftwareRead the Press Release
WASHINGTON – An aftermarket auto parts distributor in Harahan, Louisiana, pleaded guilty today to manufacturing and selling over 800 copyright-infringing copies of Mercedes-Benz diagnostic software valued at over $17 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.
The Brinson Company (TBC), and its owner, Rainer Wittich, 66, of River Ridge, Louisiana, pleaded guilty before U.S. District Court Judge Nannette Jolivette Brown of the Eastern District of Louisiana to an information charging them, respectively, with conspiracy to commit criminal copyright infringement and to violate the Digital Millennium Copyright Act, and criminal copyright infringement. Sentencing is scheduled for Jan. 16, 2015. As part of its plea agreement, TBC agreed to assist Mercedes-Benz in compiling a list of all customers to whom it sold, distributed, donated or otherwise provided the pirated software.
Wittich owned TBC, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles. According to TBC’s plea agreement, beginning in about 2001, in conjunction with two other companies, TBC began developing, manufacturing and selling non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a portable tablet-type computer that contains proprietary software created by Mercedes-Benz to diagnose and repair its automobiles and that requires a code or “license key” to access. TBC admitted that, without authorization, it obtained Mercedes-Benz SDS software and updates, modified and duplicated the software, and installed the software on laptop computers (which served as the SDS units).
TBC further admitted that, not later than June 2010, it began purchasing software for the non-authentic SDS units as well as updates and “patches” for the software from an individual in the United Kingdom. TBC admitted that, after Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, representatives of TBC and the co-conspirator companies discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of non-authentic SDS units.
A genuine SDS unit sold for up to $22,000, and purchasers of the SDS paid Mercedes-Benz several thousands of dollars per year to receive regular software updates. According to TBC’s plea agreement, a non-authentic SDS unit sold for up to $11,000. TBC admitted that, in total, it sold approximately 725 non-authentic SDS devices, and that one of its co-conspirators sold at least 95 devices.
“Today’s guilty pleas reaffirm our commitment to protecting consumer rights,” stated U.S. Attorney Polite. “Both businesses and individuals will be held accountable for their fraudulent conduct.”
The case was investigated by the Cyber Task Force of the FBI’s New Orleans Division. The case is being prosecuted by Senior Counsel Evan Williams of the Criminal Division’s Computer Crimes and Intellectual Property Section and Assistant U.S. Attorneys Jordan Ginsberg and Myles Ranier of the Eastern District of Louisiana.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.
Auto Parts Distributor Pleads Guilty to Manufacturing and Selling Pirated Mercedes-Benz SoftwareRead the Press Release
Pirated Software Valued at Over $17 Million
An aftermarket auto parts distributor in Harahan, Louisiana, pleaded guilty today to manufacturing and selling over 800 copyright-infringing copies of Mercedes-Benz diagnostic software valued at over $17 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement.
The Brinson Company (TBC), and its owner, Rainer Wittich, 66, of River Ridge, Louisiana, pleaded guilty before U.S. District Court Judge Nannette Jolivette Brown of the Eastern District of Louisiana to an information charging them, respectively, with conspiracy to commit criminal copyright infringement and to violate the Digital Millennium Copyright Act, and criminal copyright infringement. Sentencing is scheduled for Jan. 16, 2016. As part of its plea agreement, TBC agreed to assist Mercedes-Benz in compiling a list of all customers to whom it sold, distributed, donated or otherwise provided the pirated software.
Wittich owned TBC, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles. According to TBC’s plea agreement, beginning in about 2001, in conjunction with two other companies, TBC began developing, manufacturing and selling non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a portable tablet-type computer that contains proprietary software created by Mercedes-Benz to diagnose and repair its automobiles and that requires a code or “license key” to access. TBC admitted that, without authorization, it obtained Mercedes-Benz SDS software and updates, modified and duplicated the software, and installed the software on laptop computers (which served as the SDS units).
TBC further admitted that, not later than June 2010, it began purchasing software for the non-authentic SDS units as well as updates and “patches” for the software from an individual in the United Kingdom. TBC admitted that, after Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, representatives of TBC and the co-conspirator companies discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of non-authentic SDS units.
A genuine SDS unit sold for up to $22,000, and purchasers of the SDS paid Mercedes-Benz several thousands of dollars per year to receive regular software updates. According to TBC’s plea agreement, a non-authentic SDS unit sold for up to $11,000. TBC admitted that, in total, it sold approximately 725 non-authentic SDS devices, and that one of its co-conspirators sold at least 95 devices.
The case was investigated by the Cyber Task Force of the FBI’s New Orleans Division. The case is being prosecuted by Senior Counsel Evan Williams of the Criminal Division’s Computer Crimes and Intellectual Property Section and Assistant U.S. Attorneys Jordan Ginsberg and Myles Ranier of the Eastern District of Louisiana.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.
TBC Plea Agreement
TBC Factual Basis
Wittich Plea Agreement
Wittich Factual Basis
Armed Home Invader Pleads Guilty to Robbery ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Clarence Lambert, 22, of Brooklyn, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit Hobbs Act robbery and use and brandishing of a firearm during a crime of violence. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of life, a fine of $500,000 or both. Under the terms of the plea agreement, Lambert will be sentenced to 25 years in prison.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that the defendant participated in two armed, home invasion robberies. Lambert and co-defendants Earl McCoy and M.N. believed two victims living at a residence on Hayward Avenue in Rochester were involved in the unlawful possession and distribution of controlled substances, including marijuana and cocaine. As a result, the three conspired to rob the victims in their residence at gunpoint. On September 15, 2014, Lambert and Earl McCoy broke into the residence, brandished firearms, and demanded money and drugs from two victims. Lambert and Earl McCoy restrained the victims at gunpoint, searched the residence, and threatened to kill the victims if they called the police. After finding no money or drugs, the defendant and Earl McCoy fled the residence after taking a cell phone belonging to one of the victims.
On October 7, 2014, Lambert, and co-defendants Earl McCoy, M.N., Jessica Moscicki, Gary Lambert, and Jecovious Barnes, went to 49 Polo Place in Rochester to rob a third victim of jewelry, watches, and cash. Moscicki backed a vehicle into the driveway and waited while the defendant, Jecovious Barnes, and Gary Lambert, who were armed with weapons, including a firearm, broke into the residence. Inside the residence, Clarence Lambert beat the third victim and his wife with a firearm while demanding money, jewelry, and watches. The defendant and his accomplices left with approximately $20,000 in United States currency, five loose diamonds, and approximately 20 to 40 luxury watches.
Jessica Moscicki then drove the defendant, Gary Lambert and Jecovious Barnes from the robbery to meet Earl McCoy and M.N. at the home of M.N.’s mother on Electric Avenue in Rochester. Earl McCoy and M.N. were given the proceeds of the robbery. M.N. then divided some of the proceeds of the robbery, including luxury watches and cash, among the co-conspirators. M.N. maintained possession of the remaining cash, jewelry, and watches stolen from 49 Polo Place.On October 14, 2014, Clarence Lambert and Jessica Moscicki entered Rochester Pawn Brokers on State Street in Rochester to provide one of the stolen watches to owner Samuel, Cruz, Jr. As Cruz examined the watch in a back office, law enforcement officers arrived to take the defendant into custody. Clarence Lambert fled on foot but was taken into custody while hiding inside a garage on Frankfurt Street in Rochester.
“On occasion, a particular group is so violent or dangerous that federal prosecution is warranted,” said U.S. Attorney Hochul. “This was such a group and these were such circumstances.”
Jessica Moscicki, Jecovious Barnes, and Gary Lambert, have been convicted and are in custody awaiting sentencing.
Earl McCoy was arrested November 8, 2014 in North Charleston, South Carolina. He is charged with Hobbs Act conspiracy, Hobbs Act robbery, Attempted Hobbs Act robbery, and three counts of use of a firearm during and in relation to a crime of violence. Charges are pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The person identified as M.N. was arrested on May 18, 2015 and is in custody.
The plea is the culmination of an investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Delano A. Reid, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, the New York State Police, under the direction of Major Craig Hanesworth, and the Rochester Police Department under the direction of Chief Michael Ciminelli.Sentencing is scheduled for January 15, 2016 at 1:00 pm before the Judge Wolford.
Alleged Document Thief IndictedRead 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 a federal grand jury returned a four count superseding indictment charging Daniel Witek, 52, of Buffalo NY, with three counts of mail fraud and one count of interstate transportation of stolen goods. Each count of mail fraud carries a maximum penalty of 20 years in prison. The interstate transportation of stolen goods charge carries a maximum of 10 years in prison.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that according to the superseding indictment, in the spring of 2013, the defendant was a volunteer at the Buffalo History Museum. While volunteering at the museum, Witek devised a scheme to access and steal certain historical writings addressed to Anson Conger Goodyear that belonged to the museum. The defendant then offered to sell the stolen documents to one autograph dealer in New York City and one in New Jersey.
The defendant was arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and released.
The indictment is the result of an investigation by Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the United States Secret Service under the direction of Special Agent in Charge C. Todd Laster.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty.
Alive Hospice Pays U.S. and Tennessee over $1.5 Million to Resolve False Claims Act LawsuitRead the Press Release
Alive Hospice, Inc. has paid over $1.5 million to reimburse the government for alleged overbilling of Medicare and TennCare for hospice services, announced Jack Smith, First Assistant United States Attorney for the Middle District of Tennessee. Alive is a non-profit hospice care provider that operates in Tennessee and provides various levels of hospice services.
“The Medicare and TennCare hospice benefits are meant to provide comfort and care to persons who are terminally ill,” said Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee for the administration of this settlement. “We will continue to work to ensure that these benefits are used for these purposes.”
The Medicare and TennCare hospice benefits are available for patients who are nearing the end of their life. Medicare and TennCare reimburse for four different levels of hospice care: routine home care, continuous home care, inpatient respite care, and general inpatient care. General inpatient services are for pain control or symptom management that cannot be managed in other settings, such as a patient’s home. Medicare and TennCare reimburse for general inpatient care at a higher rate than that paid for routine home care or inpatient respite care.
The settlement resolves the government’s allegations that Alive submitted claims to Medicare and TennCare for general inpatient hospice care for patients who did not qualify for that care during the period from June 1, 2010 through December 31, 2012 and for seven patients who did not qualify for general inpatient services on specific dates in 2007 and 2008.
“We are seeing a trend of false claims involving hospice providers,” said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Providers are overbilling the Medicare program and taking advantage of patients at a particularly vulnerable point in their lives. HHS-OIG will continue to pursue providers who overbill these programs and will seek appropriate remedies through the U.S. Attorney’s Office.”
“For the benefit of patients and taxpayers, it is critical that we protect against fraud and abuse,” said Attorney General Herbert H. Slatery III. “These programs have limited funds, so we must ensure that every dollar is spent on the care of those most in need.”
Under the settlement agreement, Alive paid a total of $1,548,220.Of that amount, $1,446,132 goes to the United States, and $102,088 goes to the State of Tennessee.
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against Alive by Linda Anderson, a triage nurse who previously worked for Alive.She brought her claims under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery.Anderson will receive $263,197 as her share of the settlement.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by the Attorney General and the Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $22.75 billion through False Claims Act cases, with more than $14.5 billion of that amount recovered in cases involving fraud against federal health care programs.
The case was handled by the United States’ Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by HHS-OIG and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States. Senior Deputy Attorney General Leslie Bridges represented the State of Tennessee.
The case is docketed as United States ex rel. Anderson v. Alive Hospice, Inc., No. 3:12-cv-00597 (M.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Wednesday 9 September 2015
Yuma Man Sentenced to 8 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
PHOENIX – Yesterday, David Peter Calik, Jr., 55, of Yuma, Ariz., was sentenced by U.S. District Judge David G. Campbell to 96 months in prison, followed by a term of lifetime supervised release. Calik pleaded guilty on May 1, 2015 to distribution of child pornography.
According to court documents, on Sept. 20, 2013, Calik distributed two images of child pornography. During the investigation it was discovered that Calik possessed 13,180 images and 347 videos of child pornography.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1631-PHX-DGC
RELEASE NUMBER: 2015-069_Calik
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Wendell Couple Plead Guilty to Drug and Firearm OffensesRead the Press Release
BOISE - Miguel Angel Osuna-Zavala, 42, and his wife Diane Osuna, 43, of Wendell, Idaho, pleaded guilty today to federal firearm and drug charges, U.S. Attorney Wendy J. Olson announced. The couple appeared before Senior U.S. District Judge Edward J. Lodge in Boise to enter their pleas. Miguel Osuna-Zavala pleaded guilty to possession of a firearm in furtherance of drug trafficking, and conspiracy to possess with intent to distribute methamphetamine. Diane Osuna pleaded guilty to possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking. They were indicted by a federal grand jury in Boise on March 10, 2015.
According to the plea agreement, on February 2, 2015, a search warrant was executed on the couple’s home in Wendell, Idaho. Inside a safe located in the master bedroom was a package of methamphetamine weighing approximately 65 grams, and a 9mm Sturm Ruger pistol, model P95. The pistol is registered in the name of Diane Osuna. In the house officers also found baggies and a set of digital scales. According to the plea agreements, Diane Osuna would weigh out the drugs for Miguel to sell. Miguel Osuna-Zavala is a Mexican national living illegally in the United States. Diane Osuna is a U.S. citizen.
The charge of conspiracy and possession with intent to distribute methamphetamine are punishable by not less than five years, and no more than 40 years, in prison, and a fine of up to $5,000,000. The charge of possession of a firearm in furtherance of drug trafficking is punishable by not less than five years in prison, consecutive to any other prison term, and a fine of up to $250,000.
Sentencing is set for December 9, 2015, before Judge Lodge at the federal courthouse in Boise.
The case was investigated by the Gooding County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Virginia Man Pleads Guilty to Possession of Child PornographyRead the Press Release
WASHINGTON – Donald A. Essex, 68, of Alexandria, Va., pled guilty today to a charge of possession of child pornography, announced Acting U.S. Attorney Vincent H. Cohen, Jr., Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Essex pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison as well as potential financial penalties. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for Dec. 1, 2015. Essex has been in custody since his arrest on May 15, 2015.
According to the government's evidence, on May 14, 2015, Essex contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. He continued this conversation via instant messaging with the undercover officer, who purported to be the father of an under-aged girl. Essex then began sending approximately a dozen images of child pornography. He also expressed interest in engaging in sexual acts with the under-aged girl. Law enforcement soon identified the defendant and obtained arrest and search warrants.
In a search of Essex’s home at the time of his arrest on May 15, 2015, law enforcement recovered a computer, drives, and other devices. A forensic examination of those devices led to the discovery of images and videos depicting child pornography. Essex pled guilty to knowingly possessing more than 600 images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the plea, Acting U.S. Attorney Cohen, Assistant Director in Charge Abbate, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance provided by the Fairfax County, Va., Police Department. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joyce Arthur and Assistant Andrea L. Hertzfeld, who is prosecuting the matter.
U.S. Attorney Deborah R. Gilg Appointed to Attorney General’s Advisory CommitteeRead the Press Release
Attorney General Loretta E. Lynch announced today the appointment of U.S. Attorney Deborah R. Gilg of the District of Nebraska to the Attorney General’s Advisory Committee (AGAC), effective Sept. 4, 2015:
“The Attorney General’s Advisory Committee plays a crucial role in shaping the Justice Department’s approach to some of the most pressing public safety issues facing our country today,” said Attorney General Lynch. “I am grateful that the U.S. Attorneys who serve on the AGAC are able to lend their wisdom, their expertise and their counsel to advance the committee’s critical work on behalf of the American people. As a former chair of the AGAC, I know that serving on the committee while leading federal law enforcement efforts within one’s home district is no easy feat. But I also know that the AGAC’s members are on the committee precisely because of their talent and effectiveness as public service leaders. That is why I could not be more pleased to welcome Deborah to the committee, where I know she will continue to serve her district and our country with passion, with intelligence and with results.”
U.S. Attorney Gilg will fill the seat vacated by former U.S. Attorney Conner Eldridge for the Western District of Arkansas, who stepped down on Aug. 22, 2015.
U.S. Attorney Gilg was appointed by President Barack Obama on Oct. 1, 2009, as the 32nd U.S. Attorney of the District of Nebraska and the first female U.S. Attorney of the District of Nebraska. Prior to her appointment, U.S. Attorney Gilg served as an elected county attorney in Western Nebraska for 16 years. In recognition of her expertise as a prosecutor, she was appointed as a deputy county attorney or special prosecutor in more than 21 counties in Nebraska, in addition to maintaining a private law practice. U.S. Attorney Gilg currently serves on the Attorney General’s Subcommittees on Native American Issues, Civil Rights Issues, and Terrorism and National Security Issues.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the U.S. Attorneys’ Offices.
Two convicted of heroin, oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Zora D. Parks, 29, of Boothsville, West Virginia, and Brittany Wodzinski, 25, of Buckhannon, West Virginia, were convicted of heroin and oxycodone trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
In early 2015, Parks allowed her Taylor County residence to be used to store and distribute heroin. She pled guilty today to one count of “Maintaining Drug-Involved Premises.” She faces up to 20 years in prison and a fine of up to $500,000. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Wodzinski was among 21 individuals charged in a Philadelphia, Pennsylvania to Morgantown, West Virginia heroin and oxycodone trafficking operation in November 2014. She pled guilty today to one count of “Use of a Telephone to Facilitate the Distribution of Oxycodone.” She faces up to four years in prison and a fine of up to $250,000. The West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Valley Drug and Violent Crime Task Force investigated.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Zelda Wesley prosecuted Wodzinski, and Wesley and Former Assistant U.S. Attorney Shawn Morgan prosecuted Parks on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Twin Cities Somali Community Leaders, Government Officials and Private Partners Present Plan to Build Community ResilienceRead the Press Release
United States Attorney Andrew M. Luger today was joined by public and private partners in the Building Community Resilience pilot project to announce the project’s first-year accomplishments. Building Community Resilience was designed in close coordination with Minnesota’s Somali community, government stakeholders and private partners to address the root causes of radicalization.
Since Al Shabaab began recruiting Minnesota’s youth in 2006, the Twin Cities have been a focus of overseas terror recruiting by organizations like the Islamic State for Iraq and the Levant (ISIL). This cycle of terror recruiting has exclusively targeted Minnesota’s Somali community, which is why Building Community Resilience is delivering resources to the Somali community.
The highlights of the Building Community Resilience plan include: a mentorship program for Somali youth operated by Big Brothers Big Sisters of the Greater Twin Cities, with initial funding from the Carlson Family Foundation; the Opportunity Hub, which is a public, private and community partnership to provide a one-stop shop for education and workforce resources located in the cedar riverside neighborhood; nearly $500,000 of private and government grant funding to be administered by Youthprise.
Youthprise is a non-profit organization that strategically combines funding, capacity building, policy advocacy, research, and youth engagement under one roof. As an intermediary, Youthprise acts as an incubator, connector and relationship broker, forging connections between community-based organizations, schools, funders, public agencies, youth and adults. Youthprise convenes stakeholders; provides training, coaching and technical assistance; and links organizations doing similar work.
“Today, at the end of the first year of work, we are announcing some of the accomplishments of the Building Community Resilience pilot program,” said U.S. Attorney Luger. “We have developed strong friendships, working relationships and important partnerships to build this plan. This is just the beginning of what we hope to accomplish, and we’re very excited about where we are today.”
“Minneapolis’ Somali community is a tremendous asset to our city,” said Minneapolis Mayor Betsy Hodges. “We must all support this community and their ability to contribute to our prosperity, or we will not be the city we need to be. The extent to which some people in the community are turning to violence as a perceived solution to problems is the extent to which we must provide actual solutions to real problems that people are facing like poverty, unemployment, and homelessness. The steps we are taking today build on our work to strengthen the Somali community. These efforts are critical to ensuring that harming others is never a solution to any problem.”
“The recruitment of a single resident from our city is unacceptable,” said Minneapolis Council Member Abdi Warsame. “My office has been working with federal, state, county and city officials to connect existing opportunities to the East African community in order to tackle the underlining conditions that make our young people vulnerable.”
“This has been one of the greatest opportunities to voice community issues that have traditionally been ignored,” said Hodan Hassan, co-chair of the Somali American Task Force. “If we save even one young person through this collaboration between community, government, and private-sector partners, our mission is accomplished.”
“We are proud to support the ‘Building Community Resilience’ initiative,” said Rich Hoge, Executive Vice President, Mall of America. “Today is about opportunity, solutions and hope. It is a first step in working together to address the challenges we face collectively. We are honored to be a partner in this exciting new program.”
“We are thrilled to be a part of this groundbreaking public/private partnership,” said Wokie Weah, President of Youthprise. “Since our inception, Youthprise has been a huge supporter of Somali-led organizations serving youth and families. Our role in this partnership will build on this work by strengthening the capacity of Somali-led organizations and providing critical funding for youth empowerment. Youthprise will conduct an open competitive process in the distribution of grant funds to community based organizations.”
“We're pleased that Big Brothers Big Sisters of the Greater Twin Cities will be part of this important initiative,” said Gloria Lewis, CEO, Big Brothers Big Sisters of the Greater Twin Cities. “Mentoring helps to foster success in school, improve social and emotional learning, and raise educational expectations. We’re eager to work with the Somali-American community in the Twin Cities bring the positive effects of mentoring to youth who can benefit from the presence of an additional, caring adult, and to help nurture the next generation of our community's citizens and leaders.”
“That I (as a minority member) was able to get this into a major Appropriations bill late in the process indicates the legislatures understanding of the importance of this issue and the need for new approaches,” said State Representative Phyllis Kahn. “I am pleased to be here at this next step.”
Building Community Resilience partners include:
Big Brothers Big Sisters of the Greater Twin Cities
Carlson Family Foundation
City of Minneapolis
City of St. Paul
Hennepin County
Mall of America
Somali-American Task Force
State of Minnesota
Youthprise
United States Transportation Security Administration
United States Customs and Border Protection
United States Department of Justice
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Suburban Pittsburgh Man Sentenced for Violating Drug and Gun LawsRead the Press Release
PITTSBURGH - A Pittsburgh-area resident has been sentenced in federal court to three years of probation, the first year of which will include a condition of home detention, on his conviction of violations of federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge David Stewart Cercone imposed the sentence on Guy Amatangelo, 42.
According to information presented to the court, Amatangelo was intercepted on a federal wiretap that targeted large-scale heroin and cocaine traffickers in the Hill District section of Pittsburgh and beyond. That wiretap revealed that during September 2013 and October 2013, Amatangelo conspired with others to distribute and possess with intent to distribute crack cocaine. In addition, on Oct. 5, 2013, Amatangelo, an unlawful user of crack cocaine, possessed a firearm.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
This prosecution is the result of a federal OCDETF investigation led by the Federal Bureau of Investigation and the Drug Enforcement Administration. Other participating agencies include the Allegheny County Police Department, Pennsylvania State Police, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, Munhall Police Department and Wilkinsburg Police Department.
U.S. Attorney Hickton commended the FBI, DEA and the other agencies for the investigation leading to the successful prosecution of Amatangelo.
Springfield Man Sentenced to 17 Years in Prison for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man was sentenced in federal court today for producing child pornography.
David Albert, 50, of Springfield, was sentenced by U.S. District Judge Beth Phillips to 17 years and six months in federal prison without parole.
On March 11, 2015, Albert pleaded guilty to the sexual exploitation of a child.
A special agent with Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) in Portland, Maine, discovered a posting on an Internet chat service in October 2014 that offered “trading and sharing” of child pornography. The agent identified Albert, who sent him a pornographic image of an 11-year-old female, as the person responsible for posting the advertisement.
Local law enforcement officers executed a search warrant at Albert’s residence on Oct. 3, 2014. They seized a laptop computer that contained multiple images of child pornography and a cell phone, both of which have been forfeited to the government. Albert was not present in the home at the time the investigators executed the warrant, but was later located at his place of employment. He admitted that he had taken the photo of the 11-year-old victim with his cell phone.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Spokane Attorney Sentenced to Five Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kenneth K. Watts, age 66, a bankruptcy attorney in Spokane, Washington, was sentenced on September 4, 2015, after having previously pled guilty on July 2, 2015 to Receipt of Child Pornography. Senior United States District Court Judge Justin L. Quackenbush sentenced Watts to a five year term of imprisonment, to be followed by a ten year term of court supervision after he is released from federal prison. In addition, Watts was ordered to forfeit to the United States the computer laptop, external hard drive and iPad he used to receive and possess child pornography. Watts was also ordered to pay $5,000 in restitution in lieu of forfeiture of his home. Watts will also be required to register as a sex offender.
According to information disclosed during the court proceedings, on May 21, 2014, an employee at the Albertsons store, located on N. Nevada Street in Spokane, Washington, found an iPad left unattended in a shopping cart. In an attempt to locate the owner the store employee turned on the iPad and observed child pornography. The employee immediately contacted the Spokane Police Department. Watts arrived at the Albertsons store on May 21, 2014, while the Spokane Police were still at the store, and admitted the iPad was his and that it contained child pornography. A forensic examination determined that the iPad contained over 900 images of child pornography. On April 7, 2015, Watts was indicted by the Grand Jury for the Eastern District of Washington and charged with offenses relating to the exploitation of children. On April 9, 2015, Watts was arrested at his residence in Spokane by agents from the Federal Bureau of Investigation. Watts confessed that he had child pornography on some of the digital items in his home. A search warrant was obtained for Watts’ computer laptop and external hard drive taken from his home. A forensic examination of these items revealed that Watts was, once again, in possession of child pornography (approximately 2,500 images).
Michael C. Ormsby stated, “The Spokane Police Department and the FBI worked in superb partnership in the investigation this case. The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Spokane Police Department and Federal Bureau of Investigation. The case was prosecuted by James A. Goeke and Stephanie J. Lister, Assistant United States Attorneys for the Eastern District of Washington.
Sixth Member of Colombian Cocaine Exportation Conspiracy SentencedRead the Press Release
NORFOLK, Va. – Julian Manuel Moreno Martinez, 31, of Turbo, Antioquia, Colombia, was sentenced today to 144 months in prison for his role in a cocaine manufacturing and distribution conspiracy centered in Colombia.
Moreno Martinez pleaded guilty on May 11, 2015. According to court documents, Moreno Martinez maintained farmland on the northern coast of Colombia where he provided storage and security for loads of cocaine that were in route for exportation to Central America and, ultimately, the United States. He also personally arranged for transportation of cocaine loads and, at times, made deliveries and sales. Over the course of approximately two years, Moreno Martinez was involved in the movement of over 1,800 kilograms of cocaine destined for the United States. Moreno Martinez is the sixth member of this conspiracy sentenced to-date.
Name
Date of Guilty Plea
Sentencing
German Dario Brand Piedrahita
Sept. 23, 2014
Sentenced on March 3, 2015, to 144 months
Jose Nolber Zuluaga Otalvaro
Dec. 17, 2014
Sentenced on April 7, 2015, to 108 months
Hermes Andrade Quintero
March 12, 2015
Sentenced on June 22, 2015, to 164 months
Osvaldo Jose Lopez Herrera
March 23, 2015
Sentenced June 22, 2015, to 156 months
Sonia Cruz Quiceno
March 19, 2014
Sentenced Sept. 24, 2014, to 168 months
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; 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. Assistant U.S. Attorneys V. Kathleen Dougherty and Kevin M. Comstock prosecuted the case.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) program, a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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. 2:13cr122.
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Six More Defendants Plead Guilty in Case Charging Leland Yee and Others with RacketeeringRead the Press Release
SAN FRANCISCO – George Nieh, Leslie Yun, Kevin Sui, Alan Chiu, Yat Wa Pau, and Andy Li all pleaded guilty today to a broad range of charges alleged against them in a superseding indictment filed January 29, 2015, announced Acting United States Attorney Brian J. Stretch and FBI Special Agent in Charge David J. Johnson. The indictment charged the defendants, Leland Yee, and twenty-one others with illegal conduct stemming from an alleged racketeering operation. The guilty pleas bring to ten the number of people who have pleaded guilty to one or more of the charges in the indictment. Unlike earlier pleas, today’s guilty pleas do not include an admission of guilt with respect to the charge that the defendants conspired to conduct the affairs of an enterprise through a pattern of racketeering activity, in violation of 18 U.S.C. § 1962(d) (RICO conspiracy); yet, the each defendant pleaded guilty one or more of the crimes alleged as part of the RICO conspiracy.
Each defendant, all San Francisco residents, pleaded guilty on the basis of separate individualized facts, but virtually all the facts admitted today were set out in the superseding indictment. George Nieh pleaded guilty to all the counts pending against him in the second superseding indictment with the exception of Count One, the RICO charge. The charges to which Nieh pleaded guilty include 146 counts of money laundering, in violation of 18 U.S.C. § 1956; one count of conspiracy to distribute and possession with intent to distribute marijuana, in violation of 21 U.S.C. § 841; two counts of conspiracy to receive stolen property, in violation of 18 U.S.C. §§ 371, 2314 and 2315; four counts of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g); three counts of distribution and possession with intent to distribute marijuana, in violation of 21 U.S.C. § 841; three counts of conspiracy to traffic and trafficking contraband cigarettes, in violation of 18 U.S.C. § 371, 2315, 2342 and 2344; and two counts of dealing firearms without a license, in violation of 18 U.S.C. § 922(a).
Leslie Yun pleaded guilty to five of the 34 counts of money laundering pending against her, two counts of distribution and possession with intent to distribute marijuana, and three counts of conspiracy to traffic and trafficking in contraband cigarettes. Yun did not plead guilty to the remaining money laundering charges nor the RICO charge. In pleading guilty, Yun admitted she believed funds that she had received were proceeds from unlawful activities. Yun also admitted that on at least three occasions, she shipped, received, or sold contraband cigarettes for which she paid a total of more than $400,000.
Kevin Siu pleaded guilty to eight of the 24 money laundering counts pending against him. He did not plead guilty to the RICO conspiracy charge.
Alan Chiu pleaded guilty to 13 of the 36 money laundering charges pending against him. He, too, did not plead guilty to the RICO charge.
Yat Wa Pau pleaded guilty to two counts of conspiracy to traffic and trafficking of contraband cigarettes. Pau did not plead guilty to the remaining charges pending against him which include the RICO charge; 18 counts of money laundering; and one count of manufacturing, distribution, and possession with intent to distribute marijuana. As part of his guilty plea, Pau admitted he participated in two sales of contraband cigarettes for which he paid over $300,000.
Andy Li pleaded guilty to two counts of being a felon in possession of a firearm, two counts of dealing in firearms without a license, two counts of money laundering, and one count of possession of marijuana with intent to distribute. He did not plead guilty to the RICO charge, the remaining eighteen counts of money laundering, and one count of conspiracy to manufacture marijuana with intent to distribute.
The superseding indictment charged twenty-eight people in all. Eight of the defendants, including the six defendants who pleaded guilty today, Raymond Chow, and Kongphet Chanthavong, are scheduled for trial on November 2, 2015, before U.S. District Judge Charles R. Breyer. The charges against the six defendants to which they have not pleaded guilty are still pending. Judge Breyer scheduled a hearing for Tuesday, September 14, 2015, to discuss additional matters in light of the guilty pleas.
The maximum statutory penalty for participating in the affairs of an enterprise through a pattern of racketeering activity, in violation of 18 U.S.C. § 1962(d), is a 20 years of imprisonment, a fine of $250,000, plus restitution. The maximum penalty for money laundering, in violation of 18 U.S.C. § 1956, is 20 years imprisonment plus $500,000; the maximum penalty for conspiracy to distribute, distribution and possession with intent to distribute marijuana, in violation of 21 U.S.C. § 841 or § 846, is 20 years and a $1,000,000 fine; the maximum penalty for conspiracy to receive stolen property, in violation of 18 U.S.C. §§ 371, 2314 and 2315, is 5 years and $250,000; the maximum penalty for being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g), is 10 years and $250,000; the maximum penalty for conspiracy to traffic and trafficking contraband cigarettes, in violation of 18 U.S.C. § 371, 2315, 2342 and 2344, is 5 years and $250,000; the maximum penalty for dealing firearms without a license, in violation of 18 U.S.C. § 922(a), is 5 years and $250,000. Additional periods of supervised release and additional fines and assessments may apply. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys William Frentzen, Susan Badger, and S. Waqar Hasib are prosecuting the case with the assistance of Rosario Calderon, Kurk Kosek, Ana Guerra, Marina Ponomarchuk, Victoria Etterer, and Lance Libatique. The prosecution is the result of an investigation by the Federal Bureau of Investigation; San Francisco Police Department Gang Task Force; Oakland Police Department; Internal Revenue Service, Criminal Investigation; New York Police Department; and the Mercer County New Jersey Sheriff's Office.
Sex Offender Sentenced to 18 Months for Failing to RegisterRead the Press Release
POCATELLO - Geoffrey Lee Hungerford, 25, of Idaho Falls, Idaho, was sentenced today to 18 months in prison followed by five years of supervised release for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Hungerford pleaded guilty to the charge on June 24, 2015.
According to court records, Hungerford was convicted in 2011, in Oregon of attempted rape and was required to register as a sex offender. Hungerford last registered a mailing address in Oregon in March 2014. He admitted in court that he failed to register in Idaho in January 2015, after moving to Idaho Falls. When arrested, Hungerford told law enforcement that he knew he had to register, but had forgotten.
The case was investigated by the United States Marshals Service, with the assistance of the Idaho Falls Police Department.
Hungerford was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Seventeen Members and Associates of Two Rival Bronx Street Gangs Charged in Federal Court with Racketeering and Narcotics Offenses, Including Two MurdersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Glenn Sorge, Acting Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of two Indictments charging a total of 17 members and associates of two Bronx-based street gangs, the Taylor Avenue Crew and the Leland Avenue Crew, with various racketeering and narcotics offenses, including two murders of rival gang members.
Twelve of the seventeen defendants, JAMES CAPERS, TOMMY BROWN, JESSE IRVIN, EDWIN MOYE, UNIQUE CHRISTOPHER, DANTE RODGERS, IRVIN ORTIZ, ELIJAH DAVILA, RICARDO GARCIA, PABLO CHEVERE, GLADYS MORALES, KENNETH MERCADO, and ANDREA BELL, were taken into federal custody yesterday or this morning and will be presented before Chief United States Magistrate Judge Frank Maas later today. Four of the defendants, MARQUISE ROCHESTER, CHRISTIAN McKNIGHT, SAMUEL SERRANO, and MESSIAH PERRY, are currently incarcerated in state custody on other charges, and will be presented at a later date. The case of United States v. Irvin Ortiz, et al, 15 Cr. 608 (KPF) has been assigned to U.S. District Judge Katherine Polk Failla. The case of United States v. James Capers, et al., 15 Cr. 607 (WHP) has been assigned to U.S. District Judge William H. Pauley, III.
Manhattan U.S. Attorney Preet Bharara said: “Members of the Taylor Avenue and Leland Avenue Crews allegedly wreaked havoc on the community through the sale of crack cocaine and a wave of violence on the streets of the Bronx. On two occasions, that violence allegedly ended in the murders of rival gang members.”
HSI Acting Special Agent-in-Charge Glenn Sorge said: “Today’s arrests deal a serious blow to two gangs that allegedly used the streets of New York City to sell drugs and commit acts of violence including murder. HSI will continue to work with our law enforcement partners to rid the streets of these dangerous criminal organizations that instill fear in our communities.”
DEA Special Agent in Charge James J. Hunt said: “Drug trafficking inevitably leads to further crime and violence, as depicted in the alleged charges against the members of the Leland Avenue and Taylor Avenue Crews. Through a common goal, law enforcement pooled resources to investigate and arrest those who converted their Avenues into their own private battlefields.”
Police Commissioner William J. Bratton said: “These indictments and arrests are the result of the collaborative power of law enforcement to address narcotics sales and street level shootings, crimes which are often committed by just a few individuals but affect a great many more. I would like to thank the NYPD investigators and our federal law enforcement partners who worked tirelessly to protect this Bronx community and bring justice to those responsible for this scourge of drugs, death and violence.”
As alleged in the Indictments unsealed today in Manhattan federal court[1]:
United States v. Irvin Ortiz, et al., 15 Cr. 608 (KPF)
The Taylor Avenue Crew was a criminal enterprise that operated principally in and around the Bronx, New York, from at least 2012 up to and including 2015. One of the Taylor Avenue Crew’s principal objectives was to sell cocaine base, commonly known as “crack cocaine,” primarily in and around Taylor Avenue in the Bronx. The Taylor Avenue Crew controlled crack cocaine sales within this area by prohibiting and preventing non-members, outsiders, and rival narcotics dealers from distributing crack cocaine in the area controlled by the enterprise.
Members and associates of the Taylor Avenue Crew engaged in acts of violence against the Leland Avenue Crew, a rival gang that sold crack cocaine primarily in and around Leland Avenue, which runs parallel to Taylor Avenue and is located two blocks east. These acts of violence included assaults, attempted murder, and murder, and were committed to protect the Taylor Avenue Crew’s drug territory, to retaliate against members of rival gangs who had encroached on the territory controlled by the Taylor Avenue Crew, and to otherwise promote the standing and reputation of the Taylor Avenue Crew amongst rival gangs.
The violence perpetrated by the Taylor Avenue Crew turned deadly in March 2015. On or about March 3, 2015, ELIJAH DAVILA and Allen McQueen, a now deceased member of the Taylor Avenue Crew, murdered Pablo Beard, a member of the Leland Avenue Crew, by shooting Beard in the vicinity of 1512 Leland Avenue in the Bronx. As alleged in the Ortiz Indictment, DAVILA committed this murder to maintain and increase his position in the Taylor Avenue Crew.
Count One of the Ortiz Indictment charges IRVIN ORTIZ, RICARDO GARCIA, ELIJAH DAVILA, SAMUEL SERRANO, MESSIAH PERRY, PABLO CHEVERE, GLADYS MORALES, and KENNETH MERCADO with participating in a racketeering conspiracy. Count Seven of the Ortiz Indictment charges ORTIZ, GARCIA, DAVILA, SERRANO, PERRY, MORALES, and MERCADO, with a firearms offense in connection with that conspiracy.
Counts Two, Three, Six, and Eight charge DAVILA with conspiracy to commit murder in aid of racketeering activity, murder in aid of racketeering activity, murder in connection with a drug crime, and a related firearms offense in connection with the March 2015 murder of Pablo Beard.
Count Four of the Ortiz Indictment charges MERCADO with assault and attempted murder in aid of racketeering activity in connection with the August 2015 shooting of members of the Leland Avenue Crew.
Count Five of the Ortiz Indictment charges ORTIZ, GARCIA, DAVILA, SERRANO, PERRY, CHEVERE, MORALES, MERCADO, and ANDREA BELL with participating in a narcotics conspiracy, in connection with their distribution of crack cocaine in and around Taylor Avenue.
United States v. James Capers, et al., 15 Cr. 607 (WHP)
The Leland Avenue Crew was a criminal enterprise that operated principally in and around the Bronx, New York, from at least 2012 up to and including 2015. One of the principal objectives of the Leland Avenue Crew was to sell crack cocaine, primarily in and around Leland Avenue in the Bronx. Members and associates of the Leland Avenue Crew engaged in acts of violence against the Taylor Avenue Crew. These acts of violence included assaults, attempted murder, and murder intended either to protect the Leland Avenue Crew’s drug territory, retaliate against members of rival gangs who had encroached on the territory controlled by the Leland Avenue Crew, or to otherwise promote the standing and reputation of the Leland Avenue Crew among rival gangs.
The violence perpetrated by the Leland Avenue Crew also turned deadly in July 2015. On or about July 7, 2015, JAMES CAPERS murdered Allen McQueen, a member of the Taylor Avenue Crew, by shooting McQueen in the vicinity of 1531 Taylor Avenue in the Bronx. As alleged in the Capers Indictment, CAPERS committed this murder to maintain and increase his position in the Leland Avenue Crew.
Count One of the Capers Indictment charges CAPERS, TOMMY BROWN, JESSE IRVIN, MARQUISE ROCHESTER, EDWIN MOYE, CHRISTIAN MCKNIGHT, UNIQUE CHRISTOPHER, and DANTE RODGERS with participating in a racketeering conspiracy. Count Six of the Capers Indictment charges CAPERS, IRVIN, ROCHESTER, MOYE, and MCKNIGHT with a firearms offense in connection with that conspiracy.
Counts Two, Four, and Five charge CAPERS with murder in aid of racketeering activity, murder in connection with a drug crime, and a related firearms offense, in connection with the July 2015 murder of Allen McQueen.
Count Three charges CAPERS, BROWN, IRVIN, ROCHESTER, MOYE, MCKNIGHT, CHRISTOPHER, and RODGERS with participating in a narcotics conspiracy, in connection with their distribution of crack cocaine in and around Leland Avenue.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of HSI, the DEA, and the NYPD. He also thanked the Bronx County District Attorney’s Office for its participation and support in this ongoing investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jessica Lonergan, Scott Hartman, and Jason Swergold are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Irvin Ortiz, et al., 15 Cr. 608 (KPF)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
IRVIN ORTIZ
RICARDO GARCIA
ELIJAH DAVILA
SAMUEL SERRANO
MESSIAH PERRY
PABLO CHEVERE
GLADYS MORALES
KENNETH MERCADO
20 years in prison
2
Conspiracy to commit murder in aid of racketeering activity
18 U.S.C. § 1959(a)(5)
ELIJAH DAVILA
10 years in prison
3
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
ELIJAH DAVILA
Death penalty, or life in prison
4
Assault and attempted murder in aid of racketeering activity
18 U.S.C. §§ 1959(a)(3) and 1959 (a)(5)
KENNETH MERCADO
20 years in prison
5
Narcotics conspiracy
21 U.S.C. § 846
IRVIN ORTIZ
RICARDO GARCIA
ELIJAH DAVILA
SAMUEL SERRANO
MESSIAH PERRY
PABLO CHEVERE
GLADYS MORALES
KENNETH MERCADO
ANDREA BELL
Life in prison
Mandatory minimum of 10 years in prison
6
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
ELIJAH DAVILA
Death penalty, or life in prison
Mandatory minimum of 20 years in prison
7
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
924(c)(1)(A)(iii)
IRVIN ORTIZ
RICARDO GARCIA
ELIJAH DAVILA
SAMUEL SERRANO
MESSIAH PERRY
GLADYS MORALES
KENNETH MERCADO
Life in prison
Mandatory minimum of 10 years in prison
8
Murder through use of a firearm
18 U.S.C. § 9249(j)
ELIJAH DAVILA
Death penalty, or mandatory minimum of life in prison
DEFENDANT
AGE
RESIDENCE
IRVIN ORTIZ
a/k/a “Goonie”
27
Bronx, NY
RICARDO GARCIA
a/k/a “Bucky”
24
Bronx, NY
ELIJAH DAVILA
a/k/a “Montana”
23
Bronx, NY
SAMUEL SERRANO
a/k/a “Smaxx”
22
Bronx, NY
MESSIAH PERRY
a/k/a “Showtime”
22
Bronx, NY
PABLO CHEVERE
a/k/a “Splash”
32
Bronx, NY
GLADYS MORALES
a/k/a “La Bruja”
34
Bronx, NY
KENNETH MERCADO
a/k/a “Fly,” a/k/a “Twin”
25
Bronx, NY
ANDREA BELL
a/k/a “Andrea Martin,” a/k/a “Drea”
41
Bronx, NY
United States v. James Capers, et al., 15 Cr. 607 (WHP)
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
JAMES CAPERS
TOMMY BROWN
JESSE IRVIN
MARQUISE ROCHESTER
EDWIN MOYE
CHRISTIAN MCKNIGHT
UNIQUE CHRISTOPHER
DANTE RODGERS
20 years in prison
2
Murder in aid of racketeering activity
18 U.S.C. § 1959(a)(1)
JAMES CAPERS
Death penalty, or life in prison
3
Narcotics conspiracy
21 U.S.C. § 846
JAMES CAPERS
TOMMY BROWN
JESSE IRVIN
MARQUISE ROCHESTER
EDWIN MOYE
CHRISTIAN MCKNIGHT
UNIQUE CHRISTOPHER
DANTE RODGERS
Life in prison
Mandatory minimum of 10 years in prison
4
Murder in connection with a drug crime
21 U.S.C. § 848(e)(1)(A)
JAMES CAPERS
Death penalty, or life in prison
Mandatory minimum of 20 years in prison
5
Murder through use of a firearm
18 U.S.C. § 924(j)
JAMES CAPERS
Death penalty, or mandatory minimum of life in prison
6
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a crime of violence or drug trafficking crime
924(c)(1)(A)(iii)
JAMES CAPERS
JESSE IRVIN
MARQUISE ROCHESTER
EDWIN MOYE
CHRISTIAN MCKNIGHT
Life in prison
Mandatory minimum of 10 years in prison
DEFENDANT
AGE
RESIDENCE
JAMES CAPERS,
a/k/a “Mitch,”
22
Bronx, NY
TOMMY BROWN
a/k/a “Bizzy”
20
Bronx, NY
JESSE IRVIN
a/k/a “Spookz”
24
Bronx, NY
MARQUISE ROCHESTER,
a/k/a “Mook,” a/k/a “Millz”
23
Bronx, NY
EDWIN MOYE,
a/k/a “Eazy”
24
Bronx, NY
CHRISTIAN MCKNIGHT,
a/k/a “Spice”
22
Bronx, NY
UNIQUE CHRISTOPHER,
a/k/a “Bills”
19
Bronx, NY
DANTE RODGERS
21
Bronx, NY
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Scranton Man Sentenced to Prison for Area RobberiesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Court Judge Robert D. Mariani sentenced Frank McBride, age 29, of Scranton, to 110 months imprisonment. McBride pled guilty in March 2015 to bank robbery and attempted bank robbery, and Hobbs Act robbery (interference with commerce by threats or violence).
According to U.S. Attorney Peter Smith, the charges stemmed from an FBI investigation initiated in June of 2014 after a series of attempted bank robberies in Lackawanna County. A similar scheme was used in each attempted bank robbery and McBride was identified as the perpetrator after review of video surveillance from bank locations and analysis of cell phone records. Law enforcement later learned that McBride was responsible for robberies at gas stations/convenience stores in Scranton and Moosic.
In addition to the prison term, Judge Mariani also ordered that McBride be supervised by a probation officer for three years following his release from prison, and ordered him to make restitution in the amount of $9,829.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michelle L. Olshefski.
# # #
Russian Agent Pleads Guilty to Leading Scheme to Illegally Export Controlled Technology to Russian MilitaryRead the Press Release
Alexander Fishenko, 49, of Houston, and a dual citizen of the United States and Russia, pleaded guilty today to acting as an agent of the Russian government within the United States without prior notification to the Attorney General, conspiring to export and illegally exporting controlled microelectronics to Russia, conspiring to launder money and obstruction of justice.
The plea was announced by Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York.
“Alexander Fishenko illegally acted as an agent of the Russian government in the United States and evaded export laws by sending microelectronics and other technology with military applications 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 defendant jeopardized our national security. I would like to thank the many members of law enforcement whose tireless efforts led to this guilty plea.”
“Fishenko lined his pockets at the expense of our national security,” said Acting U.S. Attorney Currie. “This prosecution highlights the importance of vigorously enforcing United States export control laws.”
As alleged in the indictment and reflected in court filings, between approximately October 2008 and October 2012, Fishenko led a conspiracy to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export 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 in 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.
According to the indictment and other court filings, in 1998, Fishenko founded Arc Electronics Inc. (Arc), which was also indicted, in Houston. Between 2002 and the present, Arc has shipped approximately $50 million worth of microelectronics and other technologies to Russia. Fishenko also served as an executive of co-defendant Apex System L.L.C. (Apex) a Moscow-based procurement firm. Apex, working through subsidiaries, served as a certified supplier of military equipment for the Russian government. Fishenko exported many of these high-tech goods, frequently through intermediary procurement firms, to Russian end users, including Russian military and intelligence agencies. To induce manufacturers and suppliers to sell them these high-tech goods and to evade applicable export controls, Fishenko and his co-conspirators often provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters 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 ploy, the investigation revealed 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 Apex affiliate regarding certain microchips that Arc obtained for the FSB. The letter stated that the microchips were faulty and demanded that the defendants supply replacement parts.
The guilty plea took place before U.S. District Judge Sterling Johnson Jr. of the Eastern District of New York. At sentencing, Fishenko faces up to 20 years in prison for each violation of the International Emergency Economic Powers Act and the Arms Export Control Act, up to 20 years in prison for money laundering conspiracy and obstruction of justice and up to 10 years in prison for acting as a Russian agent. The defendant will also face potential criminal forfeiture and fines.
Ten other individuals and two corporations were originally charged in October 2012. Four members of the conspiracy have pleaded guilty and three are scheduled to commence trial on Sept. 21, 2015.
The case is being investigated by the FBI and the Department of Commerce. 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.
Russian Agent Pleads Guilty to Leading Scheme to Illegally Export Controlled Technology to the Russian MilitaryRead the Press Release
Earlier today, Alexander Fishenko, a dual citizen of the United States and Russia, pled guilty at the federal courthouse in Brooklyn, New York, to all charges pending against him, including acting as an agent of the Russian government within the United States without prior notification to the Attorney General, conspiring to export, and illegally exporting, controlled microelectronics to Russia, conspiring to launder money, and obstruction of justice. Fishenko, ten other individuals, and two corporations were originally charged in October 2012. Four members of the conspiracy previously pled guilty, and three are scheduled to commence trial on September 21, 2015.[1]
The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and John P. Carlin, Assistant Attorney General for National Security.
“Fishenko lined his pockets at the expense of our national security,” stated Acting United States Attorney Currie. “This prosecution highlights the importance of vigorously enforcing United States export control laws.” Mr. Currie thanked the Federal Bureau of Investigation and the Department of Commerce for their leading roles in the investigation.
“Alexander Fishenko illegally acted as an agent of the Russian government in the United States and evaded export laws by sending microelectronics and other technology with military applications 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 defendant jeopardized our national security. I would like to thank the many members of law enforcement whose tireless efforts led to this guilty plea.”
As alleged in the indictment and reflected in court filings, between approximately October 2008 and October 2012, Fishenko led a conspiracy to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export 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.
In 1998, Fishenko founded Arc Electronics, Inc. (Arc), which was also indicted, in Houston, Texas. Between 2002 and the present, Arc has shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. Fishenko also served as an executive of co-defendant Apex System, L.L.C. (Apex) a Moscow, Russia-based procurement firm. Apex, working through subsidiaries, served as a certified supplier of military equipment for the Russian government. Fishenko exported many of these high-tech goods, frequently through intermediary procurement firms, to Russian end users, including Russian military and intelligence agencies. To induce manufacturers and suppliers to sell them these high-tech goods, and to evade applicable export controls, Fishenko and his co-conspirators often provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters, 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 investigation revealed 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 Apex affiliate 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.
Today’s proceeding took place before United States District Judge Sterling Johnson, Jr. When sentenced, Fishenko faces up to 20 years in prison for each violation of the International Emergency Economic Powers Act (IEEPA) and the Arms Export Control Act (AECA), up to 20 years in prison for money laundering conspiracy and obstruction of justice, and up to 10 years in prison for acting as a Russian agent, as well as criminal forfeiture and fines.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Daniel Silver, Una Dean, Richard Tucker, and Claire Kedeshian, as well as Trial Attorney David Recker from the Department of Justice’s Counterintelligence and Export Control Section, are in charge of the prosecution.
The Defendant:
ALEXANDER FISHENKO
Age: 49
Houston, TexasE.D.N.Y. Docket No. 12 CR 626 (SJ)
[1] As to the defendants awaiting trial, the charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Rayville man sentenced to more than 9 years in prison for stealing motor vehiclesRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Rayville man was sentenced Tuesday to 110 months in prison for his role in a vehicle theft ring that stretched from Louisiana to Mississippi.
James Phillips, 63, of Rayville, La., was sentenced by U.S. District Judge Robert G. James on one count of interstate transportation of stolen motor vehicles. He was also sentenced to serve three years of supervised release and pay $443,500 restitution. According to the May 13, 2015 guilty plea, Phillips was apprehended on August 16, 2013 driving a recently stolen vehicle. After further investigation, Phillips was identified as a leader of an organization involving several conspirators who stole and disposed of more than 30 tractors, trailers and other motor vehicles from Louisiana and Mississippi with a value in excess of $850,000.
The two co-defendants were sentenced on August 12, 2015. Otis Frankenll, 61, of Delhi, La., was sentenced to 18 months in prison and three years of supervised release on one count of interstate transportation of stolen motor vehicles. Gary Hunter, 54, of Greenville, Miss., was sentenced to five years of probation on one count of interstate transportation of stolen goods. They were also ordered to pay $120,100 restitution.
The charges were the result of a joint investigation between the FBI and the West Carroll Parish Sheriff’s Office. Assistant U.S. Attorney Joseph G. Jarzabek prosecuted the case.
Queen City Dry Waller Pleads Guilty to Employment Tax ScamRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced that today Cruz E. Galvan pleaded guilty to one count of Federal Employment Tax Evasion in connection with his scheme to dodge federal employment taxes on wages he paid to employees of his Manchester, N.H., dry wall business, Four Star Drywall, LLC. Galvan, age 39, resides in Manchester.
During his plea hearing, Galvan admitted that from April 2010 until December 2012, he paid the employees of Four Star Drywall with vouchers instead of with checks. He further admitted that he instructed those employees to present the vouchers to a local check cashing business to which he previously had provided funds and instructions to pay the vouchers upon presentment in cash. Galvan acknowledged that he did not report to the Internal Revenue Service the wages he paid in that fashion, thereby evading federal income tax withholding and Social Security, Medicare and federal unemployment taxes. The scheme resulted in a total tax loss of several hundred thousand dollars.
The United States District Court scheduled Galvan’s sentencing hearing for December 23, 2015. If the court accepts the parties’ joint sentencing recommendation, Galvan will be sentenced to a term of incarceration of eighteen months and required to pay restitution of approximately $670,000 to the Internal Revenue Service, including $100,000 before his sentencing.
“Individuals engaged in business who attempt to avoid their tax obligations as employers cause great harm to their employees and obtain an unfair advantage over their competitors who are complying with their obligations,” stated Acting U.S. Attorney Donald Feith. “We will continue to work with our federal law enforcement partners to identify, investigate and prosecute these individuals.”
The investigation of Galvan was led by the Manchester, N.H., offices of the Internal Revenue Service, the Department of Homeland Security and the Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Property Development Company Executive Sentenced to Nearly Three Years for Committing $1.2 Million in Bank FraudRead the Press Release
TULSA, Okla.—Bruce Carlton Wright, 69, of Norman, was sentenced Tuesday by United States District Court Chief Judge Gregory K. Frizzell to 33 months in prison for defrauding the IBC Bank of $1,176,490.60, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma. As part of his sentence, a criminal forfeiture money judgment was entered against the defendant in the amount of $1,176,490.60.
From June 2007 to July 2008, Wright and his co-defendant, Robert Alan Blaksley, 51, of Owasso, conspired to submit fraudulent invoices to IBC Bank from his property development company for work that was not performed on a Bentonville, Arkansas property.
Wright and Blaksley were charged on August 13, 2014 with conspiracy and 11 counts of bank fraud. Wright was found guilty following an 8-day jury trial that ended on May 28, 2015, and Blaksley pleaded guilty on May 8, 2015.
The case was investigated by the FBI and Assistant United States Attorneys Joel-lyn A. McCormick and Catherine Depew prosecuted the case.
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Prison Guards Charged with Smuggling Contraband into Four Philadelphia PrisonsRead the Press Release
PHILADELPHIA – Separate indictments were unsealed today charging four current and two former correctional officers for the Philadelphia Prison System with attempting to deliver OxyContin pills and, in some cases, a cellular telephone to inmates in exchange for cash payments. Each defendant is charged, separately, with attempted extortion and attempted distribution of controlled substances, while one defendant (John Wesley Herder) is also charged with making false statements to law enforcement officers. The defendants, all of whom are from Philadelphia, are: John Wesley Herder, 49, employed at the Curran-Fromhold Correctional Facility (“CFCF”); Bryant Fields, 43, employed at The Detention Center; George Kindle, 29, employed at The House of Corrections; Marc Thompson, 23, formerly employed at The House of Corrections; Dupree Myers, 27, formerly employed at CFCF; and Joseph Romano, 31, previously employed at The Philadelphia Industrial Correctional Center (“PICC”) and currently employed at the Riverside Correctional Facility.
The indictments were announced today by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge William F. Sweeney, Jr., and Philadelphia Prisons Commissioner Louis Giorla. Each indictment charges a defendant with agreeing to deliver a cellular telephone and/or pills to a prisoner in exchange for a cash payment of between $500 and $1,500. To obtain the contraband and payment, each defendant arranged a meeting with the inmate’s purported associate at locations in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to the defendant, and the defendant subsequently smuggled the contraband past prison security and delivered it to an inmate.
According to the indictment, defendant John Wesley Herder agreed to supply a CFCF prisoner with 100 OxyContin (oxycodone) pills and a cellular telephone in exchange for a $1,000 cash payment. On October 17, 2013, in Philadelphia, Herder met with Person #1 and Person #1 provided Herder with 100 pills, represented to contain OxyContin (oxycodone), a Nokia cellular telephone, and $1,000 in cash. During his meeting with Person #1, Herder allegedly stated, “Just tell [the inmate] to sit tight and I got it coming to him, ok.” On October 29, 2013, Herder allegedly provided the purported OxyContin pills and cellular telephone to the CFCF inmate. During an interview with federal law enforcement agents on June 18, 2015, Herder allegedly gave a false statement about bringing contraband into CFCF.
On or about October 11, 2013 and then again on November 15, 2013, defendant George Kindle is alleged to have delivered 100 pills, represented to contain OxyContin (oxycodone), and a cellular telephone to an inmate at The House of Corrections. In each instance, Kindle accepted a $1,000 cash payment in exchange for his agreement to deliver contraband to the inmate.
On or about September 16, 2013, defendant Marc Thompson is alleged to have delivered 100 pills, represented to contain OxyContin (oxycodone), and a Blackberry cellular telephone to an inmate at The House of Corrections in exchange for a $1,500 cash payment.
On or about March 10, 2014, defendant Bryant Fields is alleged to have delivered 50 pills, represented to contain OxyContin (oxycodone), to an inmate at The Detention Center in exchange for a $500 cash payment.
On or about July 29, 2014, defendant Joseph Romano is alleged to have delivered 100 pills, represented to contain OxyContin (oxycodone), to an inmate at PICC in exchange for a $1,000 cash payment.
Between December 22, 2014 and December 29, 2014, defendant Dupree Myers is alleged to have delivered at least 71 pills, represented to contain OxyContin, and an LG cellular telephone to an inmate at CFCF in exchange for a $1,000 cash payment.
“Prison safety depends on prison guards acting with honesty and integrity,” said Memeger. “Prison guards who violate security procedures by smuggling drugs and other contraband to inmates undermine that safety and make an inherently dangerous environment more dangerous.”
“Correctional officers willing to sell their services are not only violating their oath, but they are deliberately choosing to place their colleagues and the very public they are charged with protecting into harm’s way,“ said Sweeney. “Commissioner Giorla and his team should be commended for the leadership they displayed in working to address a threat they identified. The FBI’s public corruption task force will continue to work with our partners to aggressively investigate allegations of corruption, especially those that impact the safety of the public.”
“It is regrettable that sworn staff, who have an obligation to provide a lawful and secure environment in our jails, chose to offer their badges for sale and pervert their authority for personal gain,” said Giorla. “When any corrections employee engages in corrupt activity, they endanger their colleagues, those in custody, and the public. These indictments are the result of a lengthy and thorough investigation sought by the Philadelphia Prisons to address a growing number of contraband seizures in our jails. We hope the message is clear: the Philadelphia Prison System will have no place for staff memebers who use the power of their position to engage in criminal acts.”
If convicted, defendants Thompson, Fields, Romano, and Myers face a statutory maximum sentence of 40 years in prison; defendant Herder faces a statutory maximum sentence of 45 years in prison; defendant Kindle faces a statutory maximum sentence of 80 years in prison. Each defendant also faces possible fines, supervised release, and special assessments.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
President of Office Equipment Leasing Company Arrested for Engaging in Multi-Million Dollar Fraud SchemeRead the Press Release
Michael Conway, the President of Choice Office Solutions LLC (Choice Office), was arrested earlier today on charges of wire fraud and aggravated identity theft in connection with a scheme where he forged lease agreements to defraud an individual investor and De Lage Landen Financial Solutions Partner (DLLFSP) of approximately $3.5 million. Earlier today, FBI agents also executed a search of Choice Office’s offices in Fairfield, New Jersey. The defendant’s initial appearance is scheduled for this afternoon before United States Magistrate Judge Cheryl L. Pollak at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges and arrest were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As charged in the criminal complaint, Conway claimed to have lucrative contracts to lease office equipment with more than 50 companies, including law firms, universities, and a major league baseball franchise, and relied on these lease contracts to obtain financing. In reality, the only one making money on these phony lease agreements was the defendant himself,” stated Acting United States Attorney Currie.
“Crime does not need to be violent to have a devastating impact on society. White collar crimes, like the ones alleged herein, can reach more victims and have a disparate impact on the most vulnerable persons and businesses. Fraud disguises itself as legitimate and true, while abusing trust and eroding faith in fair and honest dealings. The FBI will continue to investigate lack of integrity leading to criminal activities in order to protect the community from such harm,” stated FBI Assistant Director-in-Charge Rodriguez.
According to the complaint unsealed this morning in Brooklyn federal court, from approximately March 2014 to August 2015, Conway forged lease agreements with various companies in the business of leasing office equipment, and then used these fraudulent agreements to obtain financing from private investors. As part of the scheme, Conway induced an individual investor to become partners with him in the leasing business. Conway would then purportedly secure a lease from a company, present the signed lease and invoices to the individual investor, who would provide funds to purchase the office equipment to be leased. In this manner, Conway presented the individual investor with leases from approximately 58 companies, including law firms, universities, hospitals, and hotels, and the individual investor paid Conway approximately $3.1 million to purchase office equipment. In reality, most of the leasing agreements that Conway provided to the individual investor were fraudulent, and Conway pocketed most of the individual investor’s money.
One of the fraudulent leasing agreements was purportedly with the New York Mets. Relying on it, the individual investor wire transferred approximately $500,000 to Conway’s bank account ostensibly to purchase office equipment. Conway then used the same forged lease agreement, and a forged authorization letter from the New York Mets purportedly signed by Jeffrey Wilpon, the team’s Chief Operating Officer, to obtain financing from DLLFSP. Based on these fraudulent documents, DLLFSP wire transferred a total of approximately $313,000 to Conway’s bank account.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Conway faces a mandatory minimum sentence of two years imprisonment and a maximum sentence of 22 years.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Winston Paes and Celia Cohen are in charge of the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
MICHAEL CONWAY
Age: 39
Verona, New JerseyPittsburgh Man Pleads Guilty to Trafficking HeroinRead the Press Release
PITTSBURGH – Kevin Livsey, of Pittsburgh, pled guilty to heroin trafficking charges, United States Attorney David J. Hickton announced today.
Livsey, 28, pled guilty to distributing heroin on June 24, 2014, and again on July 3, 2014. As of those dates, Livsey had already been convicted of drug trafficking in a case prosecuted in the Allegheny County Court of Common Pleas. United States District Court Judge Nora Barry Fischer scheduled sentencing to occur on Jan. 22, 2016, at 9 a.m.
The law provides for a maximum total sentence of up to 20 years in prison and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration and the Bureau of Pittsburgh Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Philadelphia Woman Sentenced for Stealing Dead Husband's BenefitsRead the Press Release
PHILADELPHIA - Shirley Goldwire, 68, of Philadelphia, Pennsylvania, was sentenced today to 18 months in prison for two counts of theft of government funds and was ordered to pay $264,021 in restitution to the government. She pleaded guilty on April 20, 2015 to two counts of conversion of government funds.
From 1998 through 2012, Goldwire stole retirement benefits intended for her husband by forging his name on checks tied to his bank account and by creating a false power of attorney over her dead husband’s affairs. In addition, the defendant stole benefits intended for a friend of her ex-husband, who was also deceased. The defendant obtained this money by using a debit card tied to the account.
The Social Security Administration discovered the defendant’s fraud through its Centenarian Project, a project in which Social Security field office employees attempt personal contact with beneficiaries, who are at or around 100 years of age, to verify that they are alive and receiving their benefits. When the Social Security Administration began investigating whether Goldwire’s husband was alive, the defendant lied. She also had her son impersonate her dead husband via a phone call to a Social Security employee on two separate occasions. The defendant’s actions resulted in a loss to the government of $264,021.
The case was investigated by the Social Security Administration Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Pennsylvania Man Sentenced to Prison Term for His Role in Fraudulent U.S. Treasury Check SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson has sentenced ALBELK REYES SERRATA, also known as Alberto Reyes, age 26, of Philadelphia, Pennsylvania, to thirty-seven (37) months in federal prison for his role in a conspiracy that involved the cashing of more than $2.2 million in fraudulently-obtained U.S. Treasury checks during 2012 and 2013. Following his release from imprisonment, REYES will be required to serve a 3-year term of supervised release. REYES was also ordered to make restitution in the amount of $2.2 million, to forfeit an additional $220,000 as proceeds from his criminal conduct, and to pay a $100 special assessment.
On May 28, 2015, SERRATA had appeared in Court and pled guilty to participating in a conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371. In connection with his plea, SERRATA admitted that throughout 2012 and 2013, he participated in a scheme to obtain more than 350 fraudulent United States Treasury checks and have them cashed by a co-conspirator in Baton Rouge.
SERRATA’s sentencing is part of a broader investigation of check cashing businesses in Baton Rouge that are alleged to have obtained and cashed millions of dollars in fraudulently-obtained U.S. Treasury checks during 2012 and 2013. To date, the investigation has also resulted in the following prosecutions:
- In one case, ANYELINA REYES, age 36, of Baton Rouge, Louisiana, has been charged with conspiracy to steal government funds, in violation of Title 18, United States Code, Section 371. As REYES has acknowledged, she operated a store on Florida Boulevard called “A&R Elite Team, LLC,” and, after opening a bank account for her store, she agreed to help SERRATA and others facilitate their scheme by cashing checks they sent to her. From April 2012 through April 2013, REYES deposited approximately 370 fraudulently-obtained Treasury checks into her business account, with such checks having a total face value of approximately $2.2 million. On November 20, 2014, REYES appeared before Chief Judge Jackson and pled guilty. She is currently awaiting sentencing.
- In another case, CARLOS L. LINARES, age 55, of Baton Rouge, has been charged in a Superseding Indictment with theft of government funds, in violation of Title 18, United States Code, Section 641, failure to maintain an effective anti-money laundering program, in violation of Title 31, United States Code, Sections 5318 and 5322, and two counts of obstruction of a federal proceeding, in violation of Title 18, United States Code, Section 1505. The Superseding Indictment alleges that LINARES operated a store on Florida Boulevard called “Latinos Supermarket, LLC,” and that he cashed more than 250 U.S. Treasury checks that had been obtained through fraud. The Superseding Indictment further alleges that LINARES knowingly failed to take basic steps to maintan an effective anti-money laundering program at his store, which, as LINARES knew, was required by the Bank Secrecy Act. In 2010 and again in 2013, as the Internal Revenue Service attempted to determine whether LINARES was following the law, LINARES is alleged to have obstructed and impeded the exams. LINARES has entered pleas of not guilty to the charges contained in the Superseding Indictment, and is scheduled for trial next month.
U.S. Attorney Green stated: “Mr. Serrata’s sentence confirms that identity theft and crimes involving stolen U.S. Treasury checks are very serious. Those involved in schemes such as this one – which cost the United States Treasury millions of taxpayer dollars – will be investigated and prosecuted, and if convicted, they will face severe consequences.”
Jerome R. McDuffie, IRS-CI Special Agent-in-Charge, stated, “IRS Criminal Investigation is determined to stop false tax refund schemes and we will vigorously pursue all those who participate in identity theft crimes and launder the proceeds. The sentencing today of Mr. Reyes Serrata confirms that participation in these schemes does not pay, and those who do so will be investigated and prosecuted. IRS Criminal Investigation will continue to aggressively work with the U.S. Attorney’s Office to protect innocent taxpayers’ sensitive information and maintain the public’s trust.”
This ongoing investigation is being handled by the Internal Revenue Service—Criminal Investigation Division, with valuable assistance from the Louisiana Office of Financial Institutions and the United States Postal Inspection Service, among other agencies. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Palmer Man Sentenced to 84 Months for Drug Trafficking & Firearms OffensesRead the Press Release
Anchorage, Alaska - Acting U.S. Attorney Kevin R. Feldis announced today that a Palmer man has been sentenced by United States District Court Judge Timothy M. Burgess to serve 84 months in prison for distributing methamphetamine while in possession of two firearms.
Corry William Dawson, 41, of Palmer, Alaska, previously pled guilty two felonies – 1) possession of methamphetamine with the intent to distribute it; and 2) possession of firearms in furtherance of a drug trafficking crime. Following his release from prison, Dawson will remain on supervised release for a period of five years.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, in August 2014, Dawson was contacted by members of the Alaska State Troopers while in his vehicle outside a Palmer residence. When troopers asked Dawson to step out of his vehicle, they discovered a .40 caliber pistol inside the pocket of the driver’s side door. Dawson had stored an addition firearm – a .223 caliber rifle – elsewhere in the truck. In addition to the guns, Dawson also possessed two baggies of methamphetamine, two digital scales, a drug ledger, cash, and other items indicia of drug trafficking.
When questioned about the items in his truck, Dawson admitted that the methamphetamine and the guns were his and that he was prohibited from possessing the guns due to his prior felony conviction. He also admitted to law enforcement that he kept the firearms because there was always a chance that he could be robbed while selling methamphetamine.
During the sentencing hearing, Judge Burgess described Dawson’s crimes as extremely serious in nature, noting that possessing guns while being involved in drug trafficking is an “inherently dangerous” combination. Burgess went on to comment that adding guns to a drug crime is nothing short of a “prescription for disaster.”
In announcing the sentence, Feldis commended the efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Alaska State Troopers (AST), who investigated the case.
Owner of Dietary Supplement Company Sentenced to Prison for Multimillion-Dollar Scheme to Adulterate Dietary SupplementsRead the Press Release
Company’s Executive Vice President Pleads Guilty to Obstruction of an Agency Investigation
The owner and president of a dietary supplement manufacturing company in Flanders, New Jersey, was sentenced to prison today for the sale of diluted and adulterated dietary ingredients and supplements, the Department of Justice announced.
Barry Steinlight, 70, of Hackettstown, New Jersey, was sentenced by U.S. District Court Judge Esther Salas of the District of New Jersey to serve 40 months in prison and one year of supervised release. Steinlight was also ordered to forfeit $1 million in profits from his fraudulent scheme. Steinlight previously pleaded guilty to a one-count information charging him with conspiring to commit wire fraud.
“The Justice Department has increased its attention on supplement sellers like Barry Steinlight who sell products that are not what they claim to be,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will investigate and prosecute companies and individuals that sell supplements that threaten the health of the American public and drain their bank accounts with misrepresented products.”
Steinlight was the president and owner of Raw Deal Inc., a dietary supplement manufacturer. In pleading guilty, Steinlight admitted that from at least 2009 through November 2013, he instructed Raw Deal employees to add “fillers,” including maltodextrin, viobin cocoa replacer and rice flours, to the dietary ingredients and supplements sold to customers. These “fillers” were added without customer consent or knowledge. Steinlight also directed Raw Deal employees not to list the “fillers” as ingredients on certificates of analysis issued to its customers as proof of the identity of the ingredients contained in the products. During his plea hearing, Steinlight admitted that Raw Deal Inc.’s gross profits during the scheme were between $7 million and $20 million.
Yesterday, Raw Deal’s executive vice president, Catherine Palmer, 38, of Budd Lake, New Jersey, pleaded guilty to a one-count information charging her with obstructing an agency investigation. The obstruction charge carries a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Her sentencing is scheduled for Dec. 21.
According to court documents, Palmer lied to U.S. Food and Drug Administration (FDA) investigators and ordered a subordinate to falsify a dietary supplement product’s ingredient list before submitting it to the FDA. In addition, she admitted instructing a Raw Deal employee not to run blenders during the 2012 inspection so that the FDA would not see “fillers” being added to customer orders. This practice hid from the FDA the fact that Steinlight and Raw Deal diluted the products before sale to unsuspecting customers.
Court documents also revealed that Steinlight directed Raw Deal employees to create certificates of authenticity that falsely claimed that certain Raw Deal products were kosher or organic.
“Consumers expect labels that accurately describe the products they ingest,” said U.S. Attorney Paul J. Fishman of the District of New Jersey. “Steinlight deceived his customers as part of a four-year scheme in which he delivered bogus, mislabeled products. Today he was appropriately punished for his crime.”
“Today’s announcement demonstrates that those who sell adulterated dietary supplements and purposely subvert the regulatory functions of the FDA by providing false and misleading information will be held accountable for their actions,” said Acting Special Agent in Charge Jeffrey J. Ebersole of the FDA Office of Criminal Investigations’ New York Field Office. “We commend the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Fishman commended the investigative efforts of the FDA’s Office of Criminal Investigations. The government is represented by Assistant U.S. Attorney Joseph Mack of the District of New Jersey, Deputy Chief of the office’s Health Care and Government Fraud Unit; Special Assistant U.S. Attorney Shannon M. Singleton of the FDA’s Office of Chief Counsel; and Trial Attorneys Patrick Runkle and David Sullivan of the Civil Division’s Consumer Protection Branch. Paralegal Jeffrey Skonieczny of the District of New Jersey also assisted in the criminal investigation.
Owner of Dietary Supplement Company Sentenced to 40 Months in Prison for Multimillion-Dollar Scheme to Adulterate Dietary SupplementsRead the Press Release
NEWARK, N.J. – The owner and president of a dietary supplement manufacturing company in Flanders, New Jersey, was sentenced today to 40 months in prison for directing the sale of diluted and adulterated dietary ingredients and supplements sold by his company, U.S. Attorney Paul J. Fishman announced.
Barry Steinlight, 70, of Hackettstown, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to a one-count information charging him with conspiring to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.
“Consumers expect labels that accurately describe the products they ingest,” U.S. Attorney Fishman said. “Steinlight deceived his customers as part of a four-year scheme in which he delivered bogus, mislabeled products. Today he was appropriately punished for his crime.”
“The Justice Department has increased its attention on supplement sellers like Barry Steinlight who sell products that are not what they claim to be,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will investigate and prosecute companies and individuals that sell supplements that threaten the health of the American public and drain their bank accounts with misrepresented products.”
“Today’s announcement demonstrates that those who sell adulterated dietary supplements and purposely subvert the regulatory functions of the FDA by providing false and misleading information will be held accountable for their actions,” stated Jeffrey J. Ebersole, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office. “We commend the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”
According to documents filed in this case and statements made in court:
Steinlight was the president and owner of Raw Deal Inc., a dietary supplement manufacturing facility. From at least 2009 through November 2013, Steinlight instructed Raw Deal employees to add “fillers,” including maltodextrin, viobin cocoa replacer and rice flours to the dietary ingredients and supplements packaged for, and sold to, Raw Deal’s customers. These “fillers” were added without customer consent or knowledge. Steinlight also directed Raw Deal employees not to list the “fillers” as ingredients on the certificates of analysis (COAs) issued to its customers as proof of the identity of the ingredients contained in the products.
In addition to directing the dilution and adulteration of Raw Deal’s products, Steinlight also directed Raw Deal employees to create COAs that falsely certified that certain of Raw Deal’s products were kosher or organic. Also, during an FDA inspection of Raw Deal in February 2012, Steinlight instructed employees to alter a document before providing it to the FDA.
Raw Deal’s executive vice president, Catherine Palmer, 38, of Budd Lake, New Jersey, admitted that during the 2012 FDA inspection, she ordered a subordinate to falsify an ingredient list of a dietary supplement product before submitting it to the FDA. In addition, she admitted instructing a Raw Deal employee not to run blenders during the 2012 inspection so that the FDA would not see “fillers” being added to customer orders.
In addition to the prison term, Judge Salas sentenced Steinlight to one year of supervised release. During his plea hearing, Steinlight admitted that Raw Deal’s gross profits during the scheme were between $7 million and $20 million. As part of his plea agreement, Steinlight must forfeit $1,036,834 in profits from the scheme.
Palmer pleaded guilty yesterday to a one-count information charging her with obstructing an FDA investigation. The obstruction charge carries a maximum potential sentence of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Her sentencing is scheduled for Dec. 21, 2015.
The government is represented by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, Special Assistant U.S. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel, and Trial Attorneys Patrick Runkle and David Sullivan of the Civil Division’s Consumer Protection Branch.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office for the District of New Jersey shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Orchard Park Man Sentenced for Defrauding the Government Out of Millions in Lost DutiesRead 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 William Nehill, 70, of Orchard Park, NY, who was convicted of conspiracy to smuggle merchandise into the United States by false and fraudulent invoices, was sentenced to 90 days in prison, two years of supervised release and ordered to pay $6,246,605 in restitution by United States District by Judge William M. Skretny.“This case revealed the extent to which some individuals sought to evade the country’s importation laws, while risking the lives of American war fighters in the process,” said U.S. Attorney Hochul. “Today’s sentencing concludes this particular prosecution, and our Office’s commitment to protecting American citizens and industries will continue.”
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated the defendant was an importer of specialty metals. Nehill, through his company International Technology Group, Inc., entered into an agreement with Superior Metal Powders to import magnesium powder from China.
At the time of the agreement, the United States had a 305.56% antidumping duty in place with respect to the type of magnesium powder the defendant was importing for Superior Metal Powders from China. In order to avoid the 305.56% antidumping duty the magnesium was falsely labeled as magnesium reagent. By labeling the magnesium as a reagent, the duty imposed on the shipments was only 5%. The mislabeling resulted in $6,246,605 duty loss to the United States. Unbeknownst to the defendant, the imported magnesium was ultimately used to produce countermeasure flares.
Nehill was charged in April 2010 along with Gregory Magness, his son Justin Magness, Charles Wright, and Eldon Bott in a conspiracy to import Chinese magnesium into the United States. All defendants now stand convicted and sentenced.
The sentencing is the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of J. Michael Kennedy, Acting Special Agent in Charge, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, and the Department of Defense Criminal Investigative Service, under the direction of Craig W. Rupert, Special Agent in Charge, Northeast Field Office.
Op-Ed: Police Officers Protect and Serve Our CommunitiesRead the Press Release
Residents of the United States of America enjoy a security system like no other country in the world. This system is based upon being able to call the police whenever we need them. Help or protection is never too far away. We know that they will come, regardless of the circumstances or potential danger involved.
We go to sleep every night, secure in the knowledge we will be protected from harm. Also, unlike many countries in the world, we are confident that the police will not come into our homes and take us away without due process of law. As their badges say, they are here to "serve and protect." They serve regardless of the risk of potential harm to themselves. They have sworn to uphold the law. Their families and friends worry more about them than the officers do themselves. They are proud to serve and never hesitate to answer a call. That is their job, their duty, and truly their calling in life.
Officers, like so many others, are often called upon to react at a moment’s notice and exhibit the courage and the fortitude to respond to the situation. They do this without thought, hesitation or reservation. Many times they are heroes in everyday situations that are unknown to the public or even their own families. This lack of publicity makes these acts no less courageous.
Unfortunately, a few officers choose to violate the laws that they have sworn to uphold. In these rare occasions, the officers face the same system of justice as anyone else. However, these few officers and the publicity of their wrongful acts should never overshadow nor demean the good name and service of the majority of police officers who serve and protect us daily. We, as a country, are lucky to have almost 700,000 people willing to take risks and endure the criticism and stress of being law enforcement officers.
As the Department of Justice implements its “Community Policing Initiative,” please feel free to offer your suggestions for improvement. Most importantly, please continue to support law enforcement officers and appreciate the sacrifice and service they make every day to ensure safer communities for everyone.
Odessa Man Sentenced for Selling Fake Indian ArtRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Odessa, Mo., man who falsely claimed to be a Cherokee Indian was sentenced in federal court today for utilizing a fraudulent tribal identification card to sell his Indian artwork at fairs and on-line.
Terry Lee Whetstone, 63, of Odessa, was sentenced by U.S. Magistrate Judge Sarah W. Hays to three years of probation after also pleading guilty today to the charge of misrepresentation of Indian-produced goods and products.
Whetstone is an artist who created and sold paintings and other artwork, representing them to be Indian produced. He sold his artwork via the Internet and at art fairs and events around the country.
Under the terms of today’s plea agreement, Whetstone may not sell art during his term of probation unless he notifies buyers that he is not a member of an Indian tribe. Whetstone must take down his Web site and refrain from advertising or promoting his artwork in any fashion during the term of probation. Whetstone is prohibited from performing flute music publically during the term of probation unless he notifies the audience that he is not a member of an Indian tribe.
On May 31, 2007, the Department of Interior Indian Arts and Crafts Board received a complaint that Whetstone was using a fraudulent Cherokee Nation of Oklahoma enrollment card in conjunction with the sale of his products. The Cherokee Nation verified that Terry Lee Whetstone is not a citizen of the Cherokee Nation.
Whetstone claimed on his Web site to be a Native American and a Cherokee artist. An undercover officer purchased a print of Whetstone’s “Endless Flame” artwork from his Web site in July 2013 and also received a brochure entitled, “Cherokee Artist.”
By pleading guilty today, Whetstone admitted that he knew he was not a member of a formally recognized Indian tribe.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by the U.S. Fish and Wildlife Service.
Nitro woman pleads guilty to defrauding social securityRead the Press Release
CHARLESTON, W. Va. - Linda Alford of Nitro West Virginia, pleaded guilty today in federal court in Charleston admitting she had defrauded the Social Security Administration, announced United States Attorney Booth Goodwin. Alford, 65, faces ten years in prison, a fine of $250,000 and three years of supervised release when she is sentenced on December 21, 2015. As part of her plea, Alford agreed to pay more than $130,000 in restitution.
Alford was receiving survivor benefits from the Social Security Administration after her spouse died in 1990. In 1997, Alford remarried, which made her ineligible for the benefits. Alford did not report her change in marital status to the Social Security Administration and continued to receive the survivors benefits to which she was no longer entitled. From 1997 to 2013, Alford withdrew more than $130,000 in benefit payments and spent the money knowing that she was not entitled to it.
The United States Social Security Administration, Office of Inspector General conducted the investigation. Assistant United States Attorney Erik S. Goes is responsible for the prosecution.
Nineteen named in superseding indictment for $200,000 check-kiting conspiracyRead the Press Release
Nineteen people from Northeast Ohio were named in an 85-count superseding indictment for their roles in a check-kiting conspiracy which defrauded banks out of $200,000, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Indicted are: Devinne P. Hollie, Sade Philpott, Shanita Hollie, Marnetta McPherson, Ahmerr Ellis, Calvin McPherson, Asia McPherson, Tavio Jack, Earl Walker, Matthew Johnson, Eddie Stacy. Jeffery Tate, Chad M. Mason, John T. Wilder, Anthony L. McPherson, Thiotis A. Greene, Clarissa V. Day, Toccara Moorer and Diamond C. Simpson. They are charged with conspiracy to commit bank fraud and multiple counts of bank fraud.
The second superseding indictment alleges the Hollies, Philpott and Marnetta McPherson, acting together with their co-conspirators and others not charged, engaged in a check-kiting scheme in which they fraudulently obtained funds from financial institutions by depositing multiple counterfeit and forged checks into co-conspirators’ bank accounts and then withdrawing the proceeds from those accounts at ATMs, check cashing locations, a local casino, and through debit card purchases.
In most instances, the Hollies, Philpott and Marnetta McPherson found a co-conspirator who was willing and able to open a checking account at a bank. Once these co-conspirators obtained their debit cards and PINs for their accounts, they passed these items on to one of the four, who then deposited forged and counterfeit checks into the account-holders’ bank accounts. These deposits typically occurred late at night or in the early morning hours, when the banks were closed and could not detect that the checks were counterfeit and forged, according to the indictment.
The defendants and co-conspirators would then often meet at the Horseshoe Casino in downtown Cleveland, where the co-conspirators would use Total Rewards Cards from the casino linked to their bank accounts to make large scale cash withdrawals from the casino’s cage, according to the indictment.
The Hollies, Philpott, Marnetta McPherson and their co-conspirators made deposits of counterfeit and forged checks on approximately 84 different occasions. The false and fraudulent deposits were in excess of $450,000, and the banks lost more than $200,000.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, the defendants’ roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani, Carmen Brown and Justin Seabury-Gould, following an investigation by the Federal Bureau of Investigation and the Ohio Casino Control Commission.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Newport Man Sentenced to Fifteen Years in Federal Prison for Possession of Child Pornography and Failure to Register as a Sex OffenderRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that James Russell Bradbury, age 55, of Newport, Washington, was sentenced today, after having previously pled guilty on July 2, 2015 to Possession of Child Pornography and Failure to Register as a Sex Offender. Senior United States District Court Judge Justin L. Quackenbush sentenced Bradbury to a five year term of imprisonment for Failure to Register as a Sex Offender, and a ten year term of imprisonment for Possession of Child Pornography, to be served consecutively, for a total of fifteen years imprisonment, to be followed by a life term of court supervision after he is released from federal prison. In addition, Bradbury was ordered to forfeit to the United States the cell phone that he used to receive and possess child pornography. Bradbury will be required to register as a sex offender.
According to information disclosed during the court proceedings, in 2005 Bradbury was convicted in the Western District of Washington for offenses relating to the sexual exploitation of children. Bradbury was sentenced to ten years imprisonment and required to register as a sex offender after he was released from prison. In 2014, while Bradbury was on supervised release in Utah, he fled from Utah and on February 12, 2015 was arrested by the Pend Oreille County Sheriff’s Department in Newport, WA. Further investigation by the United States Marshal revealed that Bradbury was not registered as a sex offender in Pend Oreille County, Newport, WA. In addition, investigation by the Federal Bureau of Investigation discovered that at the time of Bradbury’s arrest in Newport he was in possession of a cell phone that contained images of child pornography, some of the images were of children under the age of 12 and portrayed sadistic or masochistic conduct.
Michael C. Ormsby stated, “I commend the excellent work of this office’s law enforcement partners from Pend Oreille County, the FBI, and the U.S. Marshals Service. As I have stated publically many times, the United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate
punishment for child pornography crimes. In addition, prosecuting offenders who failure to register as sex offenders is a top priorities of the United States Attorney’s Office.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.justice.gov/psc . For information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
This investigation was conducted the United States Marshall, Federal Bureau of Investigation and Pend Oreille County Sheriff’s Department. The case was prosecuted by Matthew F. Duggan and Stephanie J. Lister, Assistant United States Attorneys for the Eastern District of Washington.
New Mexico to Host DOJ's Native American Issues Subcommittee and Tribal LiaisonsRead the Press Release
SANTA ANA PUEBLO, NM – Montana U.S. Attorney Michael W. Cotter will join New Mexico U.S. Attorney Damon P. Martinez in welcoming the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee (AGAC) to Santa Ana Pueblo on September 9 and 10, 2015, and DOJ’s Tribal Liaisons on September 9-11, 2015. The meeting will be hosted by the New Mexico U.S. Attorney’s Office.
U.S. Attorney Cotter serves as the Chairman of the NAIS, and U.S. Attorney Martinez serves as vice-chair. Currently, 30 U.S. Attorneys from 25 districts and federally recognized tribes serve on the NAIS, which focuses exclusively on Indian Country issues and makes policy recommendations to the Attorney General regarding both criminal and civil issues in Indian Country.
“The Department continues to prioritize issues of criminal and civil law in Indian Country and in particular has made a tremendous effort to quell violence in Indian Country,” said U.S. Attorney Cotter. “I am delighted that United States Attorneys, tribal liaisons, and Indian Country prosecutors – those in the trenches – will convene to share best practices, learn from one-another, and also celebrate the progress that has been made in the past six years.”
While in New Mexico, the NAIS will meet with representatives from tribes in New Mexico, as well as officials from BIA, SAMHSA and the U.S. Department of the Interior, and the Office of Justice Programs and the Environmental and Natural Resources Division of DOJ. The NAIS will meet in a joint session with Tribal Liaisons who will be participating in a training seminar that will cover issues that include justice services, substance abuse, and offender reentry in Indian Country. At the conclusion of the NAIS meeting, Tribal Liaisons and Indian Country prosecutors will meet for an additional day to continue discussions on topics relevant to Assistant U.S. Attorneys who regularly practice in Indian Country.
The morning session of the NAIS meeting on Wednesday, Sept. 9, 2015, will be open to the press and will include welcoming remarks by Montana U.S. Attorney Michael W. Cotter and New Mexico U.S. Attorney Damon Martinez, and 1st Lt. Governor Antonio Chewiwi of Isleta Pueblo, and remarks by Assistant Secretary of the Interior for Indian Affairs Kevin K. Washburn on Progress in Justice Services in Indian Country. More information on meeting time, location, and press accommodations is available by contacting Alyssa Ferda at 505-224-1480 or [email protected].
New Jersey Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
A Bergen County, New Jersey, man pleaded guilty today to conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division made the announcement.
Samuel Rahamin Topaz, 21, of Fort Lee, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton of the District of New Jersey to an information charging him with one count of conspiring with others to provide material support to ISIL. He remains detained without bail.
“Samuel Rahamin Topaz conspired to provide material support to ISIL and sought to travel overseas with others to fight on behalf of the designated foreign terrorist organization,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we remain committed to stemming the flow of foreign fighters abroad and bringing to justice those who attempt to provide material support to terrorists.”
“The crimes Samuel Topaz admitted today threatened the safety of Americans here and abroad,” said U.S. Attorney. “Our efforts to cut off the flow of fighters and resources to known terrorist organizations will not stop with his guilty plea. We have charges pending against his conspirators and remain vigilant against these terrorist operations.”
“Samuel Topaz admitted to conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL) today in the U.S. District Court of New Jersey,” said Special Agent in Charge Frankel. “Now Topaz will face up to 20 years in prison rather than take up arms overseas. Disrupting recruitment efforts by terrorist organizations and preventing acts of terror remains the FBI’s number one priority, and due to the unflagging efforts of the Newark FBI’s Joint Terrorism Task Force this threat was eliminated. I ask the citizens of New Jersey to remain vigilant and contact the FBI if they see or hear something suspicious.”
According to documents filed in this case and related cases and statements made in court:
Topaz admitted that prior to his arrest by the FBI Joint Terrorism Task Force (JTTF) on June 17, 2015, he planned to travel overseas to join ISIL and had saved money for that purpose. Topaz discussed plans to join ISIL with Nader Saadeh, Alaa Saadeh and Munther Omar Saleh, and he admitted that at various times, each of them indicated that they wanted to join ISIL. Topaz also admitted that they all watched ISIL-related videos, some of which depicted the execution of non-Muslims and individuals regarded as apostates from Islam.
On May 5, 2015, Nader Saadeh departed the United States with plans to travel overseas to join ISIL as part of the conspiracy, according to Topaz’s statements in court today. Topaz further admitted that he and others planned to travel overseas separately, meet up with Nader Saadeh and then travel together to join ISIL. After Nader Saadeh left the United States, Topaz met with Saleh and contacted Alaa Saadeh to discuss those plans.
Topaz admitted to knowing that ISIL was a designated foreign terrorist organization taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIL’s commands.
The count of conspiracy to provide material support to a designated foreign terrorist organization carries a statutory maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Nov. 18, 2015.
Topaz’s alleged co-conspirators are being prosecuted and are currently in federal custody. Nader and Alaa Saadeh have been charged in separate criminal complaints brought in the District of New Jersey with conspiring to provide material support to ISIL, among other charges. Saleh has been indicted on terrorism-related charges brought in the Eastern District of New York. The charges and allegations against them are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s JTTF. The case is being prosecuted by Assistant U.S. Attorneys L. Judson Welle, Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance the assistance of Trial Attorney Robert Sander of the National Security Division’s Counterterrorism Section.
Topaz Plea Agreement
Topaz Information
Minneapolis Man Pleads Guilty to Conspiracy to Provide Material Support to ISILRead the Press Release
Defendant is the Second of Nine Co-Conspirators to Plead Guilty
Hanad Mustofe Musse, 19, of Minneapolis, pleaded guilty today to conspiring with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Musse was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. Musse pleaded guilty today before Senior U.S. District Judge Michael J. Davis of the District of Minnesota.
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Andrew M. Luger of the District of Minnesota made the announcement.
“Hanad Mustofe Musse conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
“The facts set forth in Mr. Musse’s guilty plea underscore the length and breadth of this criminal conspiracy,” said U.S. Attorney Luger. “This defendant made multiple attempts to leave Minnesota to join ISIL – criminal prosecution was the best remaining option to stop him and potentially save his life. Twin Cities’ youth continue to be the targets of an intense recruiting campaign by ISIL. Fighting back is the shared responsibility of a wide cross-section of Minnesotans – parents, religious leaders, teachers, community leaders and law enforcement. We must continue to work together to end the cycle of recruiting.”
As the defendant admitted in his guilty plea, between March and June 2014, Musse became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. Musse joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement and the feasibility of using fraudulent travel documents to travel to Syria.
Musse also admitted in his plea that by June 2014, he knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul, Minnesota, International Airport. Nevertheless, Musse continued to make preparations to travel to Syria to join ISIL. Between Oct. 20, 2014, and Nov. 6, 2014, Musse made five cash withdrawals from his federal financial aid account totaling $2,400. He deposited those funds in a personal checking account that he opened on Nov. 3, 2014. Musse later used those funds to purchase a bus ticket from Minneapolis to New York City.
As admitted by the defendant in his guilty plea, on Nov. 6, 2014, Musse and co-conspirators Mohamed Farah, Hamza Ahmed and Zacharia Abdurahman purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, Musse purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. Musse knew that Abdurahman purchased a ticket on the same flight for the same purpose. After being prevented by federal agents from boarding his flight, Musse lied to the agents about the true nature of his travel.
The defendant admitted in his guilty plea that after their failed November 2014 attempt to fly overseas, Musse and co-conspirators Mohamed Farah, Abdurahman and Ahmed met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
Musse admitted in his guilty plea that he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, Musse willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico and fly overseas to join ISIL using those false passports. On April 6, 2015, Musse provided a passport photo of himself to a co-conspirator for the purpose of creating a fake passport. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). When Musse’s family learned of his plan to travel, Musse requested the return of the photograph from the CHS. However, Musse admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, Musse was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria.
This case is being investigated by the FBI-led Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and John F. Docherty of the District of Minnesota, with assistance provided by the National Security Division’s Counterterrorism Section.
Long Island Businessman Harendra Singh Indicted for Bribery, Fraud, and ObstructionRead the Press Release
Singh Charged with Fraudulently Under-Reporting to the IRS Over $17 Million of His Businesses’ Sales and Wages and Submitting False Documents to FEMA to Obtain Over $900,000 in Disaster Relief Funds
A 13-count indictment was unsealed this morning in federal court in Central Islip charging Harendra Singh, also known as “H. Singh,” with five counts of honest services wire fraud, one count of honest services wire fraud conspiracy, one count of federal program bribery, one count of disaster relief fraud, two counts of conspiring to defraud the United States, one count of impeding the Internal Revenue Service, one count of tampering with evidence, and one count of obstruction of justice.[1] Singh was arrested this morning and will be arraigned later today before the Hon. A. Kathleen Tomlinson, United States Magistrate Judge, at the United States Courthouse, 100 Federal Plaza, Central Islip, NY.
The indictment was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Shantelle P. Kitchen, Special Agent- in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).
“As alleged, Harendra Singh ran his businesses through fraud and deceit, using bribes and kickbacks to tilt the playing field in the Town of Oyster Bay. He accomplished this by lying to FEMA and the IRS in order to obtain hundreds of thousands of Hurricane Sandy disaster relief funds to which he was not entitled and evading taxes on millions of dollars of sales and wages,” stated Acting United States Attorney Currie. “The obligation to deal honestly is shared by everyone in our society, and we and our partners in the FBI and IRS-CI are unwavering in our commitment to root out corruption at all levels.”
“The charges alleged in today’s indictment describe an outpouring of greed. As alleged, Singh put local business owners at a significant disadvantage, siphoned funds from public money he was not entitled to, and sidestepped his responsibility to pay taxes on underreported income. Today’s arrest is proof of the FBI’s continued determination to work with our partners in rooting out those who engage in unlawful schemes for profit,” stated FBI Assistant Director-in-Charge Rodriguez.
“IRS-Criminal Investigation, in its mission of ensuring that everyone pays their fair share of taxes, investigates business owners who willfully do not report all of their business receipts and who willfully fail to collect and pay over payroll taxes to the government, said Special Agent-in-Charge Kitchen. “Obviously, taxes are needed to keep the government running, so when people and businesses do not pay their fair share, they increase the burden on law abiding taxpayers. When business owners do not collect payroll taxes, they compound this burden and harm their own employees, potentially depriving them of future government benefits that are funded by these collections, like Social Security payments.”
The Town of Oyster Bay Loan Scheme
Singh owned and operated restaurants and food concessions located primarily in Nassau County (collectively, the Singh entities), and was awarded agreements with the Town of Oyster Bay (the Town), including concession agreements to operate various food concessions within the Town. The indictment charges that Singh paid bribes and kickbacks to a Town employee (identified in the indictment as co-conspirator #3) in exchange for the co-conspirator’s assistance in obtaining the Town’s guarantee of two loans totaling approximately $20 million that two of Singh’s businesses received from a private corporate financing company (identified in the indictment as the Lender). As a result, were Singh’s entities to default on the loans, the Town would be responsible for repaying the Lender the entire amount of the loan.
The first loan, which closed in November 2011, was for $7,843,138. Approximately one week after the loan closed, Singh gave co-conspirator #3 an envelope with five checks, each in the amount of $5,000; the five checks were made out to “cash.” The second loan, which closed in June 2012, was for $12,273,748. Approximately one week after closing, Singh gave co-conspirator #3 an envelope with five additional checks, each in the amount of $5,000; the five checks were each made out to “cash.” In addition, Singh paid for co-conspirator #3 and a relative to travel to Asia a few weeks after the second loan closed, including all transportation and hotel expenses.
The indictment alleges that in late 2012 and 2013, Singh sought an additional loan of approximately $12 million from the Lender in connection with improvements to be made to Singh’s concession facilities at two Town beaches. To assist Singh, co-conspirator #3 arranged for meetings between the Lender and Town officials. Although the loan was not ultimately extended, between September 2012 and February 2015, Singh made monthly cash payments to co-conspirator #3 for the lease of a BMW automobile.
The Tax Fraud Schemes
The indictment alleges that Singh fraudulently under-reported to the IRS the true amount of money certain of the Singh entities earned and the wages he paid his workers, thereby lowering significantly the federal taxes he and his businesses owed and paid. Specifically, for tax years 2009 and 2012, Singh allegedly failed to report approximately $10,000,000 in gross receipts for seven Singh entities. To facilitate this fraud, Singh employed an individual who, at Singh’s direction, did not record the seven Singh entities’ cash sales as gross receipts in the books and records of those businesses. Because the profits of those businesses flowed through to Singh as their owner, the failure to properly report the gross receipts of the businesses enabled Singh to under-report his own income on his personal income tax returns.
In addition, from 2010 through 2014, Singh allegedly concealed approximately $7,091,331 of wages paid to employees of the same Singh entities, plus an additional Singh entity, fraudulently depriving the federal government of payroll taxes. Singh accomplished this scheme by paying a significant portion of the wages paid to employees of these entities “off the books.” By under-reporting employee hours and even concealing the existence of some employees, Singh caused his payroll processing companies to underreport the employee wages and fail to withhold the proper amount of federal payroll taxes required by law.
The FEMA Fraud Scheme
The indictment also alleges that between October 2012 and January 2015, Singh fraudulently obtained federal disaster relief funds by preparing and filing false and fraudulent documents and invoices with FEMA. These documents claimed that the Singh entity, “The Water’s Edge,” which operated a restaurant in Long Island City, New York, suffered losses following Hurricane Sandy. The invoices inflated the amount of losses, often by double or triple the actual amount. Singh also submitted or caused to be submitted to FEMA fraudulent receipts from vendors that inflated the value of the contents of the building that housed the restaurant. As a result, Singh fraudulently received approximately $950,000 in disaster relief funds from FEMA.
Obstruction of Justice
Singh is charged with evidence tampering and obstruction of justice in connection with the execution of a search warrant at his offices by FBI Special Agents on August 5, 2014. When agents questioned Singh about the contents of a locked safe on the premises, he informed the agents that he did not have a key to the safe and that the safe contained guns, for which he had permits. In fact, the safe contained $175,000 in cash which were diverted cash receipts from a Town beach concession operated by one of the Singh entities. Following the execution of the search warrant, Singh removed the cash and instructed two others to each take a portion of the cash home for “safekeeping.” A few days later, Singh instructed those individuals to return the money to his wife.
If convicted, Singh faces terms of imprisonment of up to o 20 years for each honest services wire fraud charge and up to 10 years for the federal program bribery charge, both in connection with the Town loan scheme. If convicted of any of those charges, the government will seek to forfeit Singh’s properties that constitute or are derived from proceeds of those offenses, including two residences located in Nassau County. Singh further faces terms of imprisonment of up to 30 years for the disaster relief fraud charge and up to five years for conspiring to defraud the United States in connection with his submitted claims for disaster relief, up to 20 years for each of the obstruction charges, up to five years for the charge of conspiring to defraud the United States in connection with his scheme to under-report gross receipts and payroll taxes, and up to three years for the charge of obstructing and impeding the due administration of the Internal Revenue Laws.
Mr. Currie expressed his appreciation to the Nassau County District Attorney’s Office, the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice, and the New York State Department of Taxation and Finance for their assistance in and cooperation with the investigation.
The government’s case is being prosecuted by the Office’s Public Integrity Section and Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile, Raymond A. Tierney, and Lara Treinis Gatz are in charge of the prosecution. Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division will be responsible for the forfeiture of assets.
The Defendant:
HARENDRA SINGH
Age: 56
Syosset, New YorkE.D.N.Y. Criminal Docket No. 15-450
[1] The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Lebanon Man Sentenced for $1.2 Million K2 Distribution at Lebanon StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., man has been sentenced in federal court for a mail fraud scheme that involved the distribution of more than $1.2 million of synthetic marijuana, commonly referred to as K2, from a head shop in Lebanon.
Eric Scott Reynolds, 33, of Lebanon, was sentenced on Tuesday, Sept. 8, 2015, by U.S. District Judge Beth Phillips to six years in federal prison without parole.
Eric Reynolds was employed at Lucky’s Novelties in Lebanon and distributed synthetic drugs from the head shop. On Oct. 15, 2015, he pleaded guilty to his role in a mail fraud conspiracy and to participating in a money-laundering conspiracy.
His brother and co-defendant, Stephen Brian Reynolds, 36, of Camdenton, Mo., was the owner of Lucky’s Novelties. Stephen Reynolds was sentenced on June 29, 2015, to six years in federal prison without parole after pleading guilty to the mail fraud conspiracy and to money laundering. The court also ordered him to forfeit to the government $1,167,990, which was obtained from the distribution of K2, as well as real estate in Eldridge, Mo., funds in bank accounts, approximately $128,000 that was seized from his residence and a safe deposit box, a 2012 Jeep Grand Cherokee, a 2007 Ducati 1098 motorcycle, three pistols, two rifles and a shotgun.
Stephen and Eric Reynolds both admitted they participated in a conspiracy to commit mail fraud from March 1, 2011, to Dec. 11, 2012. They defrauded the Food and Drug Administration and the public by using mail deliveries in a conspiracy to distribute several products that were labeled as “incense” or “potpourri” and “not for human consumption,” when in reality these substances were synthetic marijuana intended for human consumption as a drug.
Between Sept. 15, 2011, and July 25, 2012, Stephen and Eric Reynolds deposited $1,245,761 in proceeds from the distribution of K2 into bank accounts and a safety deposit box. Based upon DEA undercover purchases, they charged approximately $1 for every 300 mg of K2. Therefore, they distributed approximately 373 kilograms of K2.
Stephen Reynolds was also part-owner of a Springfield, Mo., head shop known as Doobies, which he supplied with wholesale quantities of synthetic marijuana for distribution and from which he received 40 percent of the profits. His partners have also been sentenced in a separate but related case for their roles in the mail fraud conspiracy.
Stephen Reynolds’s sentencing also reflects the court’s finding that he was in possession of firearms in connection with the offense. When DEA agents searched his residence, they seized a Smith and Wesson .380-caliber pistol, a Ruger .380-caliber pistol, an FHN 5.7-caliber pistol, a Ruger AR-15 rifle, a Bushmaster ACR rifle, a Winchester 12-gauge shotgun, body armor and ammunition. Agents also seized cardboard boxes containing synthetic cannabinoids weighing approximately 58 kilograms. Agents also seized $7,506 from a safe in the garage. Law enforcement officers also executed a search warrant at Lucky’s Novelties and seized a handgun.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Laclede County, Mo., Sheriff’s Department, the Lebanon, Mo., Police Department and the Lake Area Narcotics Enforcement Group (LANEG).
Kentucky woman pleads guilty to federal drug chargeRead the Press Release
HUNTINGTON, W.Va. – A Kentucky woman caught with a large quantity of pills during a traffic stop in Huntington in 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Karen Sue Fields, 45, entered a guilty plea in federal court in Huntington to possession with intent to distribute oxycodone and alprazolam.
On July 6, 2014, an officer with the Huntington Police Department was flagged down by a motorist on 5th Street Road in Huntington. The motorist alerted the officer to another vehicle driving erratically on 5th Street. The officer located the vehicle, which was operated by Fields, and conducted a traffic stop after Fields made several abrupt turns in an attempt to evade the officer. The officer then observed multiple bags of pills in the floorboard of Fields’ vehicle. After conducting a search, the officer located 819 30mg oxycodone tablets and in excess of 50 2mg alprazolam tablets. Fields admitted that she had traveled from Kentucky and had purchased the pills for $17,500. Fields also admitted that she taking the pills back to Kentucky to be delivered to another.
Fields faces up to 20 years in federal prison, and is scheduled to be sentenced on December 14, 2015.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Indictment Filed in Husband and Wife Sex Trafficking CaseRead the Press Release
Marcus Dewayne Thompson, 28, and his wife, Robin Thompson, 24, from Park Hills, Missouri, were indicted today by a federal Grand Jury in Benton, Illinois, for one count of sex trafficking of a minor by force, fraud, or coercion, and one count of conspiracy to do the same, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced.
An Indictment is a formal, legally required method of bringing charges against a defendant. A defendant is presumed innocent of the charges unless proven guilty beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigation, Springfield Division, and members of the FBI’s Child Exploitation Task Force, Fairview Heights. Assistant U.S. Attorney Daniel T. Kapsak is prosecuting the case.
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 the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Imposter Attorney, Two Others Charged in Marriage Fraud SchemeRead the Press Release
LOS ANGELES — A Santa Fe Springs man who posed as an attorney and his daughter were arrested this morning for allegedly orchestrating an elaborate immigration fraud scheme in which Chinese nationals paid tens of thousands of dollars to be “married” to United States citizens.
A federal criminal complaint filed yesterday alleges that Chinese nationals paid up to $50,000 to enter into sham marriages in the hopes of obtaining lawful permanent resident cards – often referred to as “Green Cards” – that would allow them to legally reside in the United States. The affidavit in support of the complaint outlines a scheme in which the purported attorney and his daughter lined up U.S. citizen “spouses” for their clients, coached the couples on how to make the marriages appear genuine when questioned by immigration authorities, prepared and filed immigration petitions, and created fraudulent paper trails for the “couples” — including phony apartment leases, wedding photos, bank statements and income tax returns.
The two defendants arrested this morning are:
• Jason Shiao, also known as “Jason Zheng” and “Zheng Yi Xiao,” 65, who allegedly posed as an immigration lawyer; and
• Shiao’s daughter, Lynn Leung, also known as “Linda,” 43, of Pasadena.
A third defendant charged in the case, Shannon Mendoza, 48, of Pacoima, remains at large and is still being sought.
The two arrested this morning were taken into custody by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Shiao and Leung are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
“Marriage fraud presents a serious threat to the integrity of our immigration system by undermining programs designed to allow foreign nationals to come to the United States in a fair and orderly fashion,” said United States Attorney Eileen M. Decker.
While Shiao and Leung served as brokers by allegedly arranging the sham marriages and filing immigration applications, Mendoza acted as a recruiter by finding U.S. citizens who were willing to enter into sham marriages in exchange for payments of up to $10,000. According to the affidavit, however, most of the nearly two dozen “spouses” interviewed by investigators never received the amount they were promised. Mendoza allegedly sought out prospective United States citizen “spouses” who were in dire financial straits and then arranged for them to meet Shiao and Leung.
The affidavit describes how the defendants went to considerable lengths to make the unions appear real. For example, Shiao and Leung allegedly paid for one “couple” to visit the Wynn Hotel in Las Vegas for a purported “honeymoon,” and they allegedly held an actual marriage ceremony at the Dynasty Wedding Studio in Temple City.
“Hollywood may portray marriage fraud as a romantic farce, but it’s a serious crime with serious implications,” said Claude Arnold, special agent in charge for HSI Los Angeles. “Schemes like this not only undermine the integrity of our nation’s legal immigration system, they pose a security vulnerability and potentially rob deserving immigrants of benefits they rightfully deserve.”
As part of Wednesday’s enforcement action, HSI special agents executed a search warrant at Jason Shiao’s Pasadena business, Zhengyi and Associates, formerly known as Jason (USA) International Law Corporation. During the search, authorities seized computers, electronic storage devices and documents thought to be related to the alleged marriage fraud scheme.
The investigation in this case began in September 2012 based on information provided by an anonymous caller who contacted HSI’s toll-free tip line. To date, investigators have identified more than 70 fraudulent immigration applications associated with the defendants, with some dating as far back as October 2006 and others filed as recently as two months ago. Authorities believe the defendants’ clients learned about the service through word of mouth or from advertisements in Chinese newspapers.
USCIS is committed to ensuring the integrity and security of our nation’s immigration system,” said USCIS Los Angeles District Director, Susan M. Curda. “USCIS is vigilant in addressing all cases involved in an immigration fraud and revoking or rescinding benefits that have been obtained unlawfully, while at the same time ensuring that individuals who are eligible for benefits are not harmed by the unscrupulous actions of others.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of conspiracy to commit visa fraud carries a statutory maximum penalty of five years in prison. In addition to prison time, if convicted, Shiao and Leung – who are dual citizens of China and Australia, and themselves lawful permanent residents of the United States – face possible deportation.
This case is the result of a three-year undercover probe by the Los Angeles Document and Benefit Fraud Task Force, which includes HSI, the U.S. Department of State’s Diplomatic Security Service, and U.S. Citizenship and Immigration Services’ (USCIS) Fraud Detection and National Security unit.
Members of the public who have information regarding defendant Shannon Mendoza, who at this time is considered to be a fugitive, are urged to contact HSI’s toll-free tip line at 1-866-DHS-2ICE (866-347-2423).
Huntingdon County Man Charged with Federal Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that today a federal grand jury in Harrisburg returned an indictment against Jay Eugene Reed, age 55, a resident of Three Springs, Pennsylvania. The indictment charges Reed with production of child pornography, possession of child pornography and tampering with witnesses.
According to United States Attorney Peter Smith, Reed was charged in July 2015 by the Pennsylvania State Police with sexually assaulting minors. During the investigation, the State Police seized a cell phone, a computer, and other electronic devices belonging to Reed from his residence pursuant to search warrants. The Indictment alleges that Reed both produced and possessed images of child pornography found on several of the seized devices. The Indictment also alleges that Reed attempted to tamper with a victim or witness by writing a letter asking the victim/witness not to talk to anyone about the case.
Reed has been detained in custody since July 9, 2015 as a result of the sexual assault charges.
This investigation is being conducted by the Federal Bureau of Investigation, the Pennsylvania State Police and the Huntingdon County District Attorney’s Office and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
If you have any information regarding this case, please contact Special Agent Clifton Vikara, FBI, at 814-234-0341.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hanad Musse Pleads Guilty to Conspiracy to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General John P. Carlin today announced the guilty plea of HANAD MUSTOFE MUSSE, 19, who conspired with at least eight other individuals to travel to Syria in an effort to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. MUSSE was initially charged by criminal complaint on April 20, 2015, and was subsequently indicted on May 19, 2015. MUSSE pleaded guilty today before Senior U.S. District Judge Michael Davis in United States District Court in Minneapolis, Minn.
“The facts set forth in Mr. Musse’s guilty plea underscore the length and breadth of this criminal conspiracy,” said U.S. Attorney Luger. “This defendant made multiple attempts to leave Minnesota to join ISIL – criminal prosecution was the best remaining option to stop him and potentially save his life. Twin Cities’ youth continue to be the targets of an intense recruiting campaign by ISIL. Fighting back is the shared responsibility of a wide cross-section of Minnesotans – parents, religious leaders, teachers, community leaders and law enforcement. We must continue to work together to end the cycle of recruiting.”
“Hanad Mustofe Musse conspired to provide material support to ISIL and attempted to travel to Syria to join their ranks overseas,” said Assistant Attorney General Carlin. “The National Security Division's highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to designated foreign terrorist organizations.”
As admitted by the defendant in his guilty plea, between March and June 2014, MUSSE became aware of individuals in the United States and abroad who had traveled or desired to travel overseas to join ISIL. MUSSE joined this group of aspiring travelers with the understanding that ISIL was a designated foreign terrorist organization that engaged in terrorism and terrorist activity. The defendant participated in several meetings throughout 2014 in which he and his co-conspirators discussed traveling to Syria to join ISIL, including how they would pay for such travel, what routes they could take from Minnesota to Syria to best elude law enforcement, and the feasibility of using fraudulent travel documents to travel to Syria.
As admitted by the defendant in his guilty plea, by June 2014, MUSSE knew that co-conspirator Abdi Nur had successfully traveled to Syria and that co-conspirator Abdullahi Yusuf had attempted to travel to Syria but had been stopped by law enforcement at the Minneapolis/St. Paul International Airport. Nevertheless, MUSSE continued to make preparations to travel to Syria to join ISIL. Between October 20, 2014, and November 6, 2014, MUSSE made five cash withdrawals from his federal financial aid account totaling $2,400. He deposited those funds in a personal checking account that he opened on November 3, 2014. He later used those funds to purchase a bus ticket from Minneapolis to New York City.
As admitted by the defendant in his guilty plea, on November 6, 2014, MUSSE and co-conspirators MOHAMED FARAH, HAMZA AHMED, and ZACHARIA ABDURAHMAN purchased bus tickets from Minneapolis to New York City, where they met at John F. Kennedy International Airport (JFK). While at JFK, MUSSE purchased a round-trip ticket to Athens, Greece, which he planned to use as a transit point from which to travel to Syria. MUSSE knew that ABDURAHMAN purchased a ticket on the same flight for the same purpose. After being prevented by federal agents from boarding his flight, MUSSE lied to the agents about the true nature of his travel.
As admitted by the defendant in his guilty plea, after their failed November 2014 attempt to fly overseas, MUSSE and co-conspirators MOHAMED FARAH, ABDURAHMAN, and AHMED met to discuss and coordinate false responses to anticipated law enforcement questions in an effort to conceal their intention to travel to Syria to join ISIL.
As admitted by the defendant in his guilty plea, he continued to meet with his co-conspirators throughout the winter and spring of 2015 to discuss and plan another attempt to travel to Syria to join ISIL. As a result of some of those meetings, MUSSE willingly agreed to participate in a scheme to obtain false passports, travel from Minnesota to Mexico, and fly overseas to join ISIL using those false passports. On April 6, 2015, MUSSE provided a passport photo of himself to a co-conspirator for the purpose of creating a fake passport. Unbeknownst to the defendant, the individual was a cooperating human source (CHS). When MUSSE’s family learned of his plan to travel, MUSSE requested the return of the photograph from the CHS. However, MUSSE admits that he did not withdraw from the conspiracy to provide material support to ISIL when he sought return of the passport photo. Rather, MUSSE was attempting to preserve the viability of his and his co-conspirators’ future travel to Syria.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant United States Attorneys Andrew R. Winter and John Docherty with assistance provided by the National Security Division's Counterterrorism Section.
Defendant Information:
HANAD MUSTOFE MUSSE, 19
Minneapolis, Minn.
Convicted:
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Halal Distributor and Halal Certifier Plead GuiltyRead the Press Release
Midamar Corporation (Midamar), a distributor of Halal foods, and ISA Inc. and Islamic Services of America, Inc., (collectively ISA) a globally recognized Halal certifier, both of Cedar Rapids, Iowa, each pleaded guilty this afternoon in United States District Court in Cedar Rapids to one count of conspiracy to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud.
Midamar’s guilty plea was entered by its Treasurer and a corporate director, Yahya Nasser Aossey. ISA’s guilty plea was entered by its President, Secretary, registered agent, and corporate director Jalel Aossey.
The conspiracy charge is punishable by: (1) a term of probation of at least one year but not more than five years; (2) a fine of up to $500,000 or twice the gross gain or loss resulting from the offense, whichever is greater; and (3) a mandatory special assessment of $400.
In addition, each business has agreed to the entry of a judgment of forfeiture in the amount of $600,000 as representing proceeds derived from wire fraud.
A sentencing date has not yet been set.
Midamar and ISA’s founder, William B. Aossey, Jr., was convicted by a jury in July on related charges and is currently detained at the Linn County Jail, awaiting sentencing.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Department of Agriculture Office of Inspector General Office of Investigations, and the Internal Revenue Service Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-CR-00138-LRR.
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Guilty Plea in Case of Disabled Adults Held in Subhuman ConditionsRead the Press Release
Linda Weston, 55, of Philadelphia, Pennsylvania, pleaded guilty today to all charges in a racketeering and hate crimes case that involved holding disabled adults captive in locked closets, basements and attics in Philadelphia’s Tacony section and in other states. Weston pleaded guilty to racketeering conspiracy, kidnapping resulting in the death of the victim, forced human labor, involuntary servitude, multiple counts of murder in aid of racketeering, hate crime, violent crime in aid of racketeering, sex trafficking, kidnapping, theft of government funds, wire fraud, mail fraud, use of a firearm in furtherance of a violent crime and false statements. U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for Nov. 5, 2015. Weston has agreed to receive a sentence of life plus 80 years in prison, restitution, fines, supervised release and special assessments.
From approximately 2001 through October 2011, Weston and her co-conspirators lured mentally handicapped individuals into locations rented by Weston, Jean McIntosh, Eddie Wright and others in Philadelphia; Killeen, Texas; Norfolk, Virginia; and West Palm Beach, Florida. The group targeted mentally challenged individuals who were estranged from their families. Once Weston convinced them to move in, she became their representative payee with Social Security and began to receive their disability benefits and in some instances, their state benefits. On one occasion, Weston and one of her co-defendants took the social security and identification documents from a victim by force and then used the funds for her own and Weston Family purposes.
Weston, McIntosh, Wright and others confined their victims to locked rooms, basements, closets, attics and apartments. While confined, the captives were often isolated, in the dark and sedated with drugs placed in their food and drink by Weston and other defendants. When the individuals tried to escape, stole food, or otherwise protested their treatment, Weston and others punished them by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats and hammers or other objects, including the butt of a pistol. Some victims endured the abuse for years, until Oct. 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city’s Tacony section. The enterprise victimized six disabled adults and four children.
In April 2005, Weston and a co-defendant targeted victim Donna Spadea. They brought Spadea to a home at 2211 Glenview Ave., in Philadelphia. Spadea was kept in the basement with the other victims, fed a substandard diet and not allowed to use the bathroom. On June 26, 2005, Spadea was found dead in the basement. Weston ordered other members of the household to move Spadea’s body to a different location before calling law enforcement.
In 2008, victim Maxine Lee was living with the family. Lee was beaten when she tried to escape or when she begged for food and never received medical attention for any of her injuries. After Weston moved the enterprise to Virginia in 2008, Weston confined Lee inside a kitchen cabinet and an attic for several months. Lee subsequently died of bacterial meningitis and starvation in November of 2008. Weston ordered other members of the household to move Lee’s body to a bedroom and stage the scene before calling law enforcement. The next day the family left for Philadelphia.
Weston’s daughter, McIntosh, and co-defendant Wright have already pleaded guilty. Co-defendants Gregory Thomas, Sr., and Nicklaus Woodard are awaiting trial.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, IRS Criminal Investigations, the Philadelphia Police Department and the Philadelphia District Attorney’s Office with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ West Palm Beach Field Office. It is being prosecuted by Assistant U.S. Attorneys Richard P. Barrett and Faith Moore Taylor.