Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 3 September 2015
Federal Jury Finds Francisco Melgar-Cabrera Guilty on Hobbs Act and Felony Murder Charges Arising from Armed Robbery of Two Albuquerque-Area Restaurants and the Murder of Stephanie Anderson in June 2009Read the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., today returned a guilty verdict against Francisco Melgar-Cabrera, 31, on Hobbs Act robbery and felony murder charges stemming from the armed robberies of two Albuquerque-area restaurants and murder of Stephanie Anderson in June 2009.
The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI, and Chief Gordon Eden, Jr., of the Albuquerque Police Department (APD).
In announcing the guilty verdict, U.S. Attorney Damon P. Martinez said, “Although today’s verdict cannot restore the loss of Stephanie Anderson, I hope that it will bring a measure of comfort and closure to her family and friends.” The U.S. Attorney also commended the officers and prosecutors who devoted more than six years to bring a justice to Ms. Anderson’s family and the others who were victimized by Melgar-Cabrera and his three cohorts, all of whom now stand convicted. “In particular, I want to recognize Assistant U.S. Attorney Louis E. Valencia and ATF Special Agent Paul Jessen, both of whom were on the case from the inception of the investigation and delayed retirement plans until all defendants were convicted.”
“I am extremely proud of the work of this office and our law enforcement partners. I would like to recognize the investigative efforts of ATF Special Agents and especially the efforts of ATF Special Agent Paul Jessen, who for years doggedly pursued Melgar-Cabrera for his role in the 2009 murder of Stephanie Anderson. I hope today's verdict of guilt brings some peace to Stephanie’s family,” stated ATF Special Agent in Charge Thomas G Atteberry. “ATF is committed to working with our law enforcement partners – at home and around the world – to take violent criminals off the streets and bring them to justice.”
“Many professionals from a multitude of agencies worked long and hard to make this day possible. The tragic death of Stephanie Anderson demanded justice, and the FBI and its partners in this country and in El Salvador made sure justice was served,” said FBI Special Agent in Charge Carol K.O. Lee. “In addition to the FBI Special Agents and other staff involved in this case, I want to thank the FBI Legal Attaché in San Salvador, the U.S. Department of State, U.S. Department of Justice Office of International Affairs, U.S. Attorney's Office, the FBI's Transnational Anti-Gang Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement, the Government of El Salvador, and the Albuquerque Police Department.”
“We hope this step brings a sense of closure and justice to Ms. Anderson’s family and all of those involved,” APD Chief Gorden Eden said. “Our goal in law enforcement is to pursue justice no matter how long it takes or how many hurdles we may face. I am thankful for all of our law enforcement partnerships and the positive impact we are able to have especially when dangerous criminals like Melgar-Cabrera face extended federal sentences.”
The long delay in bringing Melgar-Cabrera, a Salvadoran national, to trial was occasioned by his flight to El Salvador shortly after Ms. Anderson was murdered. He was arrested on Sept. 14, 2013, by Salvadoran law enforcement authorities, and was extradited to the United States on May 21, 2014. By that time, Melgar-Cabrera’s three co-defendants had entered guilty pleas and had been sentenced.
Melgar-Cabrera and two co-defendants Marvin Aguilar-Lopez and Pablo De Leon Ortiz, both Salvadoran nationals, were indicted in Oct. 2009, and charged with violating the Hobbs Act by robbing a business involved in interstate commerce, felony murder and firearms offenses. The charges arose from the armed robbery of a Denny’s Restaurant located at 1602 Coors Blvd. NW in Albuquerque on June 20, 2009, and the murder of Ms. Anderson, a cook at the restaurant.
In April 2010, the indictment was superseded to add Melgar-Cabrera’s brother, Jose Melgar-Cabrera, also a Salvadoran national, as a defendant. Jose Melgar-Cabrera was charged as an accessory after the fact for assisting Melgar-Cabrera’s flight to avoid apprehension. A second superseding indictment, filed in Oct. 2010, added four new robbery and firearms offenses against Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz that arose out of the armed robbery of a Lone Star Steakhouse & Saloon located at 10019 Coors Blvd. NW in Albuquerque on June 13, 2009.
The trial of Melgar-Cabrera for the armed robbery of two businesses involved in interstate commerce and felony murder began on Aug. 25, 2015 and ended today when the jury returned a verdict of guilty on all three charges. During the trial, the jury learned that Melgar-Cabrera, Aguilar-Lopez and De Leon Ortiz robbed the Lone Star Steakhouse at gunpoint at 11:00 a.m. on June 13, 2009. Witnesses testified that they saw two masked men with firearms rush the restaurant’s general manager, who was on his way to deposit the prior day’s receipts, and push their guns into his stomach. One of the masked men took the money bag from the general manager and the other took money from the general manager’s wallet. A third man drove the two masked men away in a gold-colored car. The evidence revealed that Melgar-Cabrera was the man who drove the two masked men, Aguilar-Lopez and De Leon Ortiz, away from the Lone Star Steakhouse.
The evidence also established that on the morning of June 20, 2009, Melgar-Cabrera, Aguilar-Lopez and De Leon-Ortiz, who were masked and armed, charged into the Denny’s Restaurant, brandished their weapons, and demanded that everyone get down on the floor. The men were in the Denny’s for a few minutes during which a frenzy of activity ensued including the following: a restaurant employee dropped a tray of beverages and Aguilar-Lopez slipped on the wet floor and fired his weapon; De Leon-Ortiz grabbed the manager, held a gun to his head, and threatened to kill him if he didn’t turn over the restaurant’s money; and Melgar-Cabrera threatened a waitress and demanded that she open the cash register. After Melgar-Cabrera and De Leon-Ortiz grabbed cash out of the register, the three men fled from the restaurant. Shortly thereafter, Ms. Anderson, who was struck by the bullet fired by Aguilar-Lopez, died of a gunshot wound.
About 20 minutes later, APD officers who were conducting surveillance in the area of the Denny’s restaurant as part of a robbery tactical plan followed Aguilar-Lopez as he drove to Melgar-Cabrera’s residence where they arrested him. The APD officers found evidence of the Denny’s robbery, including a revolver, a rifle, trays of rolled coins and Denny’s gift cards, in the car. De Leon-Ortiz was arrested by APD officers about 40 minutes after the robbery. Melgar-Cabrera, who were in his residence when Aguilar-Lopez was arrested, fled out the back door. Thereafter, Melgar-Cabrera fled to El Salvador with the aid of his brother.
Melgar-Cabrera has been in federal custody since he was extradited to the United States in May 2014 and remains detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, Melgar-Cabrera faces a statutory maximum penalty of 20 years on each of the two robbery charges and a statutory maximum penalty of life imprisonment on the felony murder charge.
Aguilar-Lopez and De Leon Ortiz each entered guilty pleas to armed robbery and felony murder charges. Aguilar-Lopez was sentenced to 40 years in prison and De Leon Ortiz was sentenced to a 35-year term of imprisonment. They will be deported after completing their prison sentences. Jose Melgar-Cabrera pled guilty to being an accessory after the fact and was sentenced to 48 months in prison. After completing his prison sentence, Jose Melgar-Cabrera was deported to El Salvador.
This case was investigated by the Albuquerque offices of ATF and FBI and APD, and is being prosecuted by Assistant U.S. Attorneys Louis E. Valencia and Presiliano A. Torrez.
Eric Michael Johnson Sentenced to 240 Months in Prison on Federal Child Pornography and Travel ChargesRead the Press Release
KNOXVILLE, Tenn. – On Sept. 3, 2015, Eric Michael Johnson, 29, of Jamesville, Wis., was sentenced in the by the Honorable Pamela R. Reeves, U.S. District Judge, to serve 240 months in prison for using a minor to produce child pornography and traveling interstate for the purpose of having illicit sex with a minor. Following his release from prison, Johnson will be supervised by the U.S. Probation Office for a term of 10 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Johnson pleaded guilty in April 2015 to federal charges stemming from his October 2014 arrest in Knoxville. Johnson exchanged email messages with an undercover law enforcement officer in which he expressed interest in having sex with a 12-year-old female. He drove from Wisconsin to Knoxville for the purpose of having sex with the girl. A search warrant for his cellular telephone revealed that he had previously sexually molested a minor female and made video recordings of the molestation, leading to additional charges pertaining to the production of child pornography.
This investigation was conducted by the Knoxville Police Department Internet Crimes Against Children Task Force and U.S. Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
District Man Pleads Guilty to Sexually Abusing Child RelativeRead the Press Release
WASHINGTON – A 31-year-old man, from Washington, D.C., pled guilty today to a felony charge stemming from the sexual abuse of a child who is a relative, Acting U.S. Attorney Vincent H. Cohen, Jr. announced
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in the Superior Court of the District of Columbia to one count of first-degree child sexual abuse. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 135 months, and requires the defendant to register for life as a sex offender. The Honorable Michael Ryan scheduled sentencing for Nov. 13, 2015.
The charge stems from the man’s sexual abuse of a female relative when she was 10 to 11 years old. According to the government’s evidence, the defendant, on multiple occasions, went to the child’s home in Northwest Washington, where he engaged in various sexual acts with her. In May of this year, the girl disclosed vaginal discomfort to her mother, and was taken to Children’s National Medical Center. There, doctors diagnosed the child with Trichomonas, a sexually transmitted disease (STD). Afterwards, the child disclosed that the defendant had been sexually abusing her for the past one and a half to two years.
After the defendant’s arrest in July, the government obtained a urine sample from him, which was sent to the Johns Hopkins University’s STD Laboratory. The lab results showed that he possessed Trichomonas, the same STD he transferred to the child. The defendant has been in custody since his arrest.
In announcing the plea, Acting U.S. Attorney Cohen commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division. He acknowledged the critical services provided to the complainant at the District of Columbia Children’s Advocacy Center, and the specialized medical treatment provided at the Children’s National Medical Center. He further commended the vital assistance provided by Dr. Jonathan Zenilman, Dr. Charlotte Gaydos, and Laboratory Manager Laura Dize from the Infectious Diseases Department at Johns Hopkins University. Finally, he commended the efforts of staff from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias; Victim/Witness Advocate Veronica Vaughn; Paralegal Specialist Joyce Arthur; Legal Intern Allison Denton, and Assistant U.S. Attorney John L. Hill, who prosecuted the case.
Dea-Led Multi-Agency Task Force Dismantles Large Marijuana Grow Operation in Cotopaxi and Westcliffe ColoradoRead the Press Release
DENVER – On Tuesday, September 1, 2015, DEA-led special agents, task force officers and other members of law enforcement, including the Sheriffs’ Offices of Custer and Fremont Counties, executed eight search and arrest warrants in and around the towns of Cotopaxi and Westcliffe, Colorado. The warrants were the result of a large multi-jurisdictional investigation into the illegal growth and distribution of marijuana. As a result of the search warrants, over 1,000 marijuana plants were found, as were approximately 50 pounds of dried marijuana, 28 firearms (13 rifles, 8 shotguns and 7 handguns), and over $25,000 in cash. In addition to the seizures, a superseding indictment was obtained that charged 20 individuals with Conspiracy and marijuana trafficking. Of the 20 defendants charged, 17 are in custody. The remaining defendants are fugitives.
According to court documents, the investigation began in May of 2014, where after a traffic stop, a drug investigation began. During the investigation agents and officers noted that a target vehicle left Cotopaxi on October 20, 2014. That vehicle, which was with another vehicle traveling in tandem, was pulled over on October 21, 2014 in Pennsylvania. As a result of that traffic stop, three duffel bags containing approximately 34 pounds of marijuana were found in the car. On November 3, 2014, another target vehicle under surveillance was followed to a UPS store in Colorado Springs, where the occupants unloaded two large boxes, using the UPS service to send them to Florida addresses. The boxes were seized. Later UPS called stating that they had two additional boxes dropped off containing marijuana at a different Colorado Springs UPS store. Those boxes were seized as well. The packages in total contained approximately 26 pounds of marijuana.
As a result of the seizure of marijuana from vehicles leaving Cotopaxi and going to locations out of state, the U.S. Attorney’s Office, in conjunction with the DEA, obtained the search and arrest warrants. Those warrants were executed.
All 20 defendants face a variety of drug trafficking charges, including Conspiracy to distribute and possess with intent to distribute more than 1,000 plants of marijuana. They each face penalties of not less than 10 years, and up to life in federal prison.
The search warrants were executed at addresses in Custer and Fremont Counties. The Sheriffs and their offices for both counties were invaluable during the investigation and during the execution of the warrants. Residents from both counties had made multiple complaints about the defendants’ conduct not only to law enforcement, but also to elected officials. As this investigation is on-going, additional arrests are possible.
“This heavily armed, rogue drug trafficking organization was transporting a substantial amount of marijuana to people outside Colorado,” said U.S. Attorney John Walsh. “And the drug traffickers were making a large profit in return.”
“Colorado’s permissive Marijuana policies and laws continue to be exploited by large scale Marijuana trafficking organizations, who are establishing their Marijuana grow operations in Colorado to support their nationwide Marijuana distribution network,” said DEA Denver Division Special Agent in Charge Barbra Roach.
“I would like to extend my appreciation to the U.S. Attorney’s Office, DEA, Fremont County Sheriff’s Office, Pueblo County Sheriff’s Office and the Pueblo Police Department for their direct assistance in this operation,” said Custer County Sheriff Shannon K. Byerly. “Their help was critical in conducting this without incident. I would also like to recognize the efforts of the men and women of the Custer County Sheriff’s Office who contributed to this mission. This was an important step to gain control over the illegal production and sales of Marijuana in our area and we will continue to investigate those attempting to take advantage of the Marijuana laws in Colorado. Our communities earned an important victory today.”
“Because of the negative impact illegal drug trafficking has on our communities, we are very appreciative of the superb relationships that have been fostered between the federal agencies and all the local agencies involved. With this cooperative effort, we have come together to address a mutual problem,” said Fremont County Undersheriff Ty Martin.
“ATF maintains a strong relationship with the DEA and is committed to working with them and all of our Federal, State and Local partners to combat firearm and narcotic violations,” said ATF Denver Division Acting Special Agent in Charge Ron Humphreis.
“The indictment of these individuals is due to the successful efforts of various state and federal law enforcement agencies working together. IRS Criminal Investigation special agents are uniquely trained to follow the money and provide financial expertise to the overall investigation,” said Steven Osborne, Acting Special Agent in Charge of IRS Criminal Investigation, Denver Field Office.
The following agencies were involved in the execution of the search and arrest warrants: the DEA, IRS Criminal Investigation, ATF, Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI), U.S. Marshals Service, the El Paso County Sheriff’s Department, the Pueblo County Sheriff’s Department, the Pueblo Police Department, the Fremont County Sheriff’s Department, the Florence Police Department, the Colorado State Patrol, the Douglas County Sheriff’s Department, and the Custer County Sheriff’s Department.
The defendants are being prosecuted by Assistant U.S. Attorney Zachary Phillips.
The charges outlined above are allegations, and the defendants are presumed innocent unless and until proven guilty.
Danbury Woman Involved in Home Invasion Robberies Sentenced to 3 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CASEY KERSHAW, 27, of Danbury, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for participating in Danbury-area violent home invasion robberies of illegal drugs and drug trafficking proceeds.
According to court documents and statements made in court, in January 2013 the Danbury Police Department began investigating a narcotics trafficking network that maintained a series of drug distribution locations, known as trap houses, in Danbury, out of which members of the organization sold crack and heroin. The organization also rented hotel rooms where they packaged and distributed narcotics. During the investigation, law enforcement learned that the individuals who headed the drug trafficking ring had organized and committed armed home invasion robberies of marijuana dealers.
On January 30, 2013, KERSHAW drove four of her co-defendants to the residence of a known marijuana dealer. The men, some of whom were armed with firearms, then forced entry into the residence. At the time, the victim of the robbery was with his mother, his girlfriend, their infant child and a friend. Once inside, one of the defendants pistol whipped the victim and demanded that he give them drugs and money. The victim then gave the defendants a bag containing approximately $30,000 and one pound of marijuana. The defendants then fled. KERSHAW picked up her co-defendants and drove them to her residence. At KERSHAW’s residence, the co-defendants divided the money, with KERSHAW receiving $2,000. KERSHAW and her co-defendants then went to the Mohegan Sun Casino.
KERSHAW also was involved in the planning of a robbery that occurred on February 18, 2013. During this robbery, one of KERSHAW’s co-defendants struck a male victim in the head with a handgun repeatedly before dropping the gun during a struggle. Investigators subsequently recovered the gun and found that it was fully loaded. After this robbery, the co-defendants gathered at KERSHAW’s residence to re-group.
The investigation also revealed that KERSHAW had been involved in drug trafficking and had allowed her co-defendants to store firearms at her residence.
KERSHAW has been detained since her arrest on October 16, 2013. On October 14, 2014, she pleaded guilty to one count of interference with commerce by robbery.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Danbury Police Department. The DEA Task Force includes personnel from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, East Haven and Derby Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Vanessa Richards.
Clovis Man Indicted for Producing Fraudulent California Driver’s Licences and Counterfeiting MoneyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Larry Landseadal, 46, of Clovis, charging him with production of false identification documents, possession of false identification documents, possession of document-making implements, possession of 15 or more fraudulent counterfeit access devices, counterfeiting United States currency and possession of images for counterfeiting United States currency, United States Attorney Benjamin B. Wagner announced.
According to court documents, Landseadal possessed over 260 profiles of individuals, including their names, social security numbers, and other personal identifying information. He also produced false California driver’s licenses and possessed both counterfeit United States currency and images used to counterfeit United States currency.
This case is the product of an investigation by the United States Secret Service, the Clovis Police Department, and the Fresno Police Department. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
If convicted, Landseadal faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Chamois Man Indicted for Manufacturing Meth, Possessing Two BombsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Chamois, Mo., man has been indicted by a federal grand jury for manufacturing methamphetamine and for possessing two bombs.
Zachary Scott Reed, 22, of Chamois, was charged in a two-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on July 15, 2015. That indictment was unsealed and made public upon Reed’s arrest and initial court appearance on Tuesday, Sept. 1, 2015. Reed remains in federal custody pending a detention hearing, which has not yet been scheduled.
The federal indictment alleges that Reed manufactured methamphetamine on Sept. 7, 2014, in Osage County, Mo.
The indictment also alleges that Reed illegally possessed an incendiary device labeled “Fragmenting Grenade” and an incendiary device labeled “Concession (sic) Grenade.” According to court documents, the two explosive bombs, which contained rusty nails, were designed as improvised explosive weapons. The two bombs and a methamphetamine lab were seized by law enforcement officers during the execution of a search warrant at Reed’s residence on Sept. 7, 2014.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lake Area Narcotics Enforcement Group and the Osage County, Mo., Sheriff’s Department.
Cahokia Man Charged with Firearm OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 2, 2015, Anthony D. Bradley, 26, Cahokia, IL, was arraigned on an Indictment charging him with the Unlawful Possession of a Firearm by a Previously Convicted Felon. Bradley’s trial is scheduled for November 2, 2014, and he was ordered held without bond until that time.
The indictment alleges that, on July 18, 2015, Bradley unlawfully possessed a Ruger, .9mm pistol, after having been previously convicted of Second Degree Murder in St. Clair County, Illinois.
The penalty for the Unlawful Possession of a Firearm by a Previously Convicted Felon is a term of imprisonment of not more than ten years, a fine up to $250,000, or both, and a term of supervised release of not more than three years following incarceration.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by the Fairview Heights Police Department. The case is assigned to Assistant United States Attorney Angela Scott.
Buffalo man convicted of production, receipt and possession of child pornographyRead 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 jury has convicted Paul F. Archambault, Jr., 29, of Buffalo, NY, of production, receipt and possession of child pornography. The charges carry a mandatory minimum penalty of 25 years in prison, a maximum of 50 years, and a fine of $250,000.
Assistant U.S. Attorneys Aaron J. Mango and Scott S. Allen, Jr., who handled the prosecution of the case, stated that in August 2012, the defendant contacted the minor victim via MeetMe.com, a social networking website. Archambault later enticed that minor victim to engage in sexually explicit conduct for the purpose of producing visual depictions. The defendant was also found guilty of two counts of receipt of child pornography for images he obtained from the minor victim via email, and one count of possessing child pornography on a SD card, located within one of the defendant’s two cellular phones.
Archambault was previously convicted of possessing child pornography in the Northern District of New York in 2009.
The trial verdict is the result of an investigation on the part of Agents of the Federal Bureau of Investigation, and the United States Marshals Service, under the direction of Charles Salina.
Sentencing is scheduled for December 22, 2015 before U.S. District Judge Richard J. Arcara who presided over the trial of the case.
Today’s indictment is the culmination of an investigation by the Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner
Daniel Derenda.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Police Officer Facing Third Civil Rights ChargeRead 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 has returned a superseding indictment charging Corey Krug, 40, of Buffalo, NY, with two additional counts of deprivation of rights under color of law. The charges carry a maximum penalty of 10 years and a $250,000.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the superseding indictment, on February 4, 2011, while on duty, Krug used excessive force during the arrest of an individual identified as D.R. causing bodily injury.
In addition, the defendant was indicted on a charge of deprivation of rights under color of law for an incident on November 27, 2014 (Thanksgiving Day). According to a previously filed complaint, Krug pushed an individual known as D.F. to the ground on Chippewa Street, pushed his knee onto D.F’s chest and used his night stick to strike the victim repeatedly in the legs causing pain, swelling and bruising.
In the original indictment returned by the grant jury on August 27, 2015, Krug was charged with deprivation of rights under color of law and filing a false report for an incident on August 29, 2010 while he was on duty. According to the indictment, the defendant used unreasonable and excessive force against an individual identified as M.W. Later that day, Krug filed a use of force report but failed to disclose that he struck the victim during the incident with an “impact weapon” causing bodily injury.
Krug will be arraigned on September 8, 2015 at 10:30 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
Today’s indictment is the culmination of an investigation by the Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner
Daniel Derenda.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Pleads Guilty to Sex TraffickingRead 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 Kenneth White, 39, of Buffalo, NY, pleaded guilty to sex trafficking before U.S. District Judge William M. Skretny. The charge carries a minimum sentence of 15 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that White utilized force to cause five victims to engage in commercial sex acts between 2006 and 2012. The defendant received all of the money earned by the victims as a result of these acts. White knew that one of the victims was under 18 at the time. The defendant utilized the internet to advertise the victims and solicit customers.
The plea is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigations Division, under the direction of under the direction of Special Agent-in- Charge Shantelle P. Kitchen.
Sentencing is scheduled for December 9, 2015 at 3:00 p.m. before Judge Skretny.
Bowling Green, Kentucky, Substitute Teacher Charged with Possession and Distribution of Child PornographyRead the Press Release
Arrest part of an international undercover investigation by Toronto, Ontario police
BOWLING GREEN, Ky. – A substitute teacher, formerly employed by the Bowling Green (Kentucky) School system, was charged in a criminal complaint this week with possession and distribution of child pornography announced United States Attorney John E. Kuhn, Jr.
Leon Lussier, age 49, of Bowling Green, Kentucky, was arrested on September 1, 2015, and appeared before United States Magistrate Judge H. Brent Brennenstuhl later that day.
According to an affidavit attached to the criminal complaint, the international investigation started in January 2015, when the Toronto, Ontario, Canada Police Service, Child Exploitation Section, received information regarding the investigation of a group of individuals involved in the sexual abuse of children, including the distribution of child pornography. On June 23, 2015, a Toronto Police Service Detective Constable logged into an undercover software account and observed a person with the username “I luv boys” was streaming child pornography videos by sharing his computer screen. The user streamed four videos containing child pornography. Further investigation led law enforcement to Lussier as the person with username “I luv boys.”
A search warrant of Lussier’s Bowling Green home resulted in the seizure of numerous computer media. A preview of an HP Pavilion by a Computer Forensics Agent revealed several videos containing child pornography. Several of the videos had been previously viewed in a chat room by an undercover officer. The videos were being live-streamed on a computer with an IP address assigned to Lussier.
If convicted at trial, Lussier faces not less than 5 years and not more than 25 years in prison, a 500,000.00 fine, and supervised release of at least five years and could be any number of years, including life. Lussier is being held in the custody of the United States Marshals Service pending a detention hearing scheduled for Friday, September 4, 2015, at 10:00 a.m. before Magistrate Judge Brennenstuhl.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless. This case is being investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Canadian authorities, Bowling Green Police Department and U.S. Marshals Service.
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."
***
The charge of a person by a Criminal Complaint is an accusation only and that person is presumed innocent until and unless proven guilty.
Baltimore City Landfill Employee Admits to Stealing Scrap Metal from the Landfill for Personal GainRead the Press Release
Baltimore, Maryland – Michael Theodore Bennett, age 46, of Baltimore, an employee at the Baltimore City Landfill, pleaded guilty today to conspiracy to steal from a program receiving federal funds, wire fraud and failure to file a tax return in connection with a scheme in which employees stole scrap metal from the Baltimore City Landfill for personal gain.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with the City must obtained Landfill permits, and must deposit their trash in an open area located farther within the Landfill. Commercial haulers of trash must also pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill.
In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
From 2007 until May 2015, Bennett and other Landfill employees, including supervisor William Nemec, falsely represented to the DPW that they were performing the jobs for which they were hired when in fact, they used their paid positions during work hours to unlawfully collect and sell scrap metal for personal gain. Bennett and other employees used part of the proceeds of the sale of the scrap metal to pay other DPW employees for their help locating, setting aside, collecting and loading the scrap metal onto their trucks. Bennett and others paid cash to supervisors to look the other way and not report them of collecting and transporting the stolen scrap metal, including Nemec. Bennett and others under Nemec’s supervision also relied on Nemec to authorize and submit false time and attendance records to conceal the junking scheme.
Bennett and other employees at the Landfill used their personal cell phones to let each other know when and where recyclable scrap metals were being dumped at the Landfill and to coordinate their arrival at the private salvage yard. After collecting and creating piles of the scrap metal at various locations, Bennett and others transported the scrap metal using their personal pick-up trucks to a private salvage company, frequently making multiple trips during a single, eight-hour work shift. The stolen scrap metal that they sold to the private salvage company for cash resulted in a loss of revenue to the City totaling hundreds of thousands of dollars.
Bennett prepared and submitted false time and attendance records, which claimed he had been working, when he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Bennett for work he did not perform.
Bennett also admitted that he failed to report approximately $479,468 of income for tax years 2011, through 2013, the majority of which was obtained from the illegal junking scheme.
The loss to the City of Baltimore as a result of the junking scheme was $400,000, and the tax loss to the government for Bennett’s failure to file tax returns was $126,273. As part of his plea agreement, Bennett agreed to the entry of an order to pay restitution of $526,273, the total amount of the loss.
Bennett faces a maximum sentence of five years in prison for the conspiracy, 20 years in prison for wire fraud, and one year in prison for failure to file a tax return. U.S. District Judge Marvin J. Garbis has scheduled sentencing for December 21, 2015 at 10:00 a.m.
Former DPW employee Tamara Oliver Washington, age 55 and William Charles Nemec, Sr., age 55, both of Baltimore; and commercial haulers Mustafa Sharif, age 63, of Baltimore, and Adam Williams, Jr., age 52, of Randallstown, pleaded guilty to their participation in a related bribery scheme. Nemec also pleaded guilty to the “junking” scheme. Washington is scheduled to be sentenced on October 20, 2015, Williams on October 21 and Sharif on November 6, 2015. Washington and Nemec have each agreed to the entry of an order to pay $6 million in restitution. Sharif has agreed to forfeit and pay restitution of $500,000 and Williams has agreed to forfeit and pay restitution of $900,000.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Arizona Man and U.S. Citizen Residing in Germany Convicted of Sexual AssaultRead the Press Release
Two men were convicted today following a five-day jury trial in the District of Arizona for the sexual assault of a 17-year-old female in Landstuhl, Germany.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John S. Leonardo of the District of Arizona, Special Agent James Boerner of the U.S. Army Criminal Investigative Command (CID), Special Agent in Charge Douglas G. Price of the FBI’s Phoenix Division and Assistant Director in Charge Andrew McCabe of the FBI’s Washington, D.C., Field Office made the announcement.
Joseph S. Martin, 20, of Peoria, Arizona, and Christopher J. Heikkila, 21, a U.S. citizen residing in Weilerbach, Germany, were each convicted of one count of sexual abuse and one count of abusive sexual contact. The sentencing hearing for Martin and Heikkila is scheduled for Nov. 16, 2015, before U.S. District Judge David G. Campbell of the District of Arizona, who presided over the trial.
According to the evidence presented at trial, on or about Oct. 19, 2013, Martin and Heikkila sexually assaulted a 17-year-old female in Landstuhl while she was incapacitated. At the time, Martin and Heikkila were employees of the Army & Air Force Exchange Service on Ramstein Air Force Base in Ramstein, Germany, as well as dependents of civilian employees of the military. The Military Extraterritorial Jurisdiction Act gives U.S. federal courts jurisdiction over felonies committed abroad by certain persons employed by or accompanying the U.S. military.
The trial evidence showed that, beginning on or before Oct. 13, 2013, Martin and Heikkila used social media websites to post comments and exchange a series of messages specifically targeting the victim and planning the sexual assault. The evidence further demonstrated that two men continued discussing the assault on social media after it occurred.
The case was investigated by Army CID and the FBI’s Phoenix Division and Washington Field Office. The case is being prosecuted by Trial Attorneys Christine Duey and Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Joseph E. Koehler of the District of Arizona.
Wednesday 2 September 2015
Violent Indianapolis heroin trafficking organization dismantledRead the Press Release
Indianapolis – United States Attorney Josh Minkler announced today the arrests of 11 members belonging to a drug trafficking organization which distributed heroin and methamphetamine in the Indianapolis area. Further, they ordered acts of violence against those perceived as competitors.
“This is the face of organized crime today. These defendants are some of the most violent in Indianapolis,” said Minkler. “Not only did they sell large quantities of narcotics but most had prior felony convictions, possessed and used firearms and threatened acts of violence in furtherance of their crimes.”
Beginning in December 2014 through August 2105, David McMichel, a/k/a White Boy, a/k/a David Webster 31, Indianapolis, allegedly ran a drug trafficking organization from his home on the Westside of Indianapolis. The McMichel Drug Trafficking Organization (MDTO) moved large quantities of heroin and methamphetamine from suppliers in Arizona to Indianapolis, Fort Wayne and other locations. The MDTO obtained most of its drug supply from Fernando Vaca-Mata, 32, and Jose Prieto, 33, to be redistributed to lower level dealers.
As leader of the MDTO, McMichel negotiated with suppliers to obtain pound quantities of the narcotics. Further, he distributed and supervised the delivery of the narcotics and acquisition of weapons, collected proceeds from the narcotics sales and arranged to store the narcotics in stash houses around Indianapolis.
Throughout the months’-long investigation, McMichel ran the MDTO from his home while on house arrest serving a sentence for his third felony conviction. According to the complaint, a court authorized wiretap intercepted McMichel ordering shootings. McMichel stated he had a “list a block long” of individuals he wanted dead. He had members of the MDTO obtain photographs from Facebook of some of his intended targets.
Based on the wiretap, law enforcement intervened and arrested James Caldwell, a/k/a Bo, who was in possession of a loaded 9mm handgun before any acts of violence could take place. Caldwell was on probation for manslaughter and could not legally possess a firearm.
Arrest and search warrants were served early this morning by federal, state and local law enforcement agencies. At 1220 N Groff Av, a suspect fired a handgun through the door of the bedroom she was occupying. Officers did not return fire and no one was injured. Over the nine-month investigation, 19 firearms, $160,000 in cash and several pounds of heroin, and methamphetamine were confiscated. Also recovered were two ballistic vests. Law enforcement documented 36 drug transactions in the furtherance of the drug organization’s goal of infesting the westside with heroin and methamphetamine.
Also arrested:
Sophia Gutierrez, 33
Steven Nichols, a/k/a Stevie, 39
Shewanna Jackson, 32
Tyrel Barker, a/k/a T, 48
James Caldwell, a/k/a Bo, 37
Michael Wrightsman, a/k/a Mike Mike, 42
Forest Toliver, a/k/a Bear, 33
Beronta Smith, a/k/a B12, 36
Jacob Dodson a/k/a Jake, 24, remains a fugitive
Steven Eldridge, Jr. a/k/a Little Stevie, 21, remains a fugitive.
“Violence and drug dealing go hand in hand” said DEA Assistant Special Agent in Charge Greg Westfall. “Attacking heroin traffickers in unison with our outstanding law enforcement partners is DEA’s number one priority.”
“The Indianapolis Metropolitan Police Department continues to work with our state and federal partners to reduce violence and drug trafficking in Indianapolis,” said Chief Rick Hite. “Today’s operation ends a long-term, sophisticated investigation with the arrest of twelve suspects involved in drug trafficking within our community. We will continue our commitment to make Indianapolis a safe place to work and raise a family.”
This case was jointly investigated by the Drug Enforcement Administration, Hamilton-Boone County Drug Task Force, Bureau of Alcohol Tobacco Firearms and Explosives, Indianapolis Metropolitan Police Department, Metro Drug Task Force and the Marion County Prosecutor’s Office.
According to Assistant United States Attorney Jeffrey D. Preston who is prosecuting this case for the government, all defendants face decades of time in federal prison if convicted.
A complaint is merely a charge and all defendants are presumed innocent until proven guilty in a federal court.
Violent Career Criminal Sentenced to 50 Years in PrisonRead the Press Release
EUGENE, OR – Thomas William Cornelius, Jr., age 50, of Coos County, Oregon, was sentenced on Tuesday, September 1, 2015, by Chief U.S. District Judge Anne Aiken to 50 years in prison for being a felon in possession of firearms and for violent assaults he committed in prison while awaiting trial.
Cornelius, who has a lengthy criminal record, began burglarizing residences throughout Oregon shortly after being released from prison in August 2010. Cornelius forcibly broke into homes and, while armed with a loaded gun, stole firearms, jewelry, cash and electronics. By May 2011, Cornelius had burglarized 25 homes in Coos, Curry, Lane and Douglas counties. While returning from a vacation in Hawaii, Cornelius was stopped for speeding by an Oregon State trooper. The trooper arrested Cornelius after discovering two loaded pistols in the trunk of his rental car, which he had stolen during prior burglaries.
A subsequent investigation by the Oregon State Police and the Bureau of Alcohol, Tobacco and Firearms led to the recovery of several other guns and valuables Cornelius had stolen from burglarized homes. The investigation also led to the identification and prosecution of Cornelius’ accomplices. In September 2011, a federal grand jury indicted Cornelius for being a felon in possession of stolen weapons.
While awaiting trial in the Federal Correctional Institution in Sheridan, Oregon, Cornelius assaulted another inmate from behind with a prison shank. He bashed the inmate several times in the head and then stabbed him in the abdomen. Prison officials transferred Cornelius into the Special Housing Unit at Sheridan. In August 2013 Cornelius attacked another inmate with a razor blade he had secreted in his clothing. Cornelius repeatedly cut the throat of this inmate, who was handcuffed at the time. The inmate survived the attack.
A federal grand jury returned additional indictments against Cornelius for the prison assaults. Three separate trials ensued. In 2014 and 2015 federal trial juries convicted Cornelius for assault with a dangerous weapon, assault with intent to commit murder, possessing prohibited objects in a correctional facility, and eight felon-in-possession charges.
Cornelius’ criminal history includes convictions for:
- Burglary (1985, 1988)
- Unauthorized Use of a Motor Vehicle (1985, 1986)
- Failure to Appear (1985)
- Escape (1988, 1990)
- Assault (1988, 1990)
- Inmate in Possession of a Firearm (1990)
- Assault in the Second Degree with a Firearm (1997)
- Robbery in the First Degree with a Firearm (1997)
- Felon in Possession of a Firearm – Armed Career Criminal (1997).
In the 1997 case, Cornelius robbed a Portland, Oregon jewelry store and shot the owner during the course of the robbery.
After a sentencing hearing on September 1, 2015, Chief Judge Aiken sentenced Cornelius to a total of 50 years in federal prison based on the three jury convictions. “We applaud this lengthy and appropriate sentence imposed by Judge Aiken. This defendant’s criminal history is replete with violent, repetitive, and highly dangerous criminal conduct that has impacted numerous victims and law enforcement agencies for many years,” said Acting U.S. Attorney Billy J. Williams. “He is more than deserving of the sentence of 50 years. This sentence will ensure that a dangerous criminal, clearly beyond reform, will spend the rest of his life in prison. Our thanks to the many law enforcement partners who have assisted an outstanding prosecution team in working to see that justice was done.”
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, and Firearms, the United States Bureau of Prisons, the Oregon State Police, Coos, Curry, Lane and Douglas County Sheriffs, with assistance from the Eugene, North Bend, Coos Bay, and Springfield Police Departments, and the Coos County District Attorney. The case was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr.
United States Sues Qualium Corporation and Bay Area Sleep Clinics to Recover Damages Under the False Claims ActRead the Press Release
SAN JOSE – The United States has filed a False Claims Act complaint against the owners and operators of Bay Sleep Clinic and their related businesses, Qualium Corporation, CPAP Specialist, and Amerimed Corporation, announced Acting United States Attorney Brian J. Stretch and U.S. Department of Health and Human Services Acting Special Agent in Charge Gerald Roy.
The government’s complaint alleges that Saratoga, Calif., residents Anooshiravan Mostowfipour, 57, and Tahereh Nader, 56, and their companies fraudulently billed the Medicare program for diagnostic sleep tests. Defendants Mostowfipour and Nader own Qualium Corporation, which operates fourteen sleep clinics doing business as Bay Sleep Clinic. The defendants also own Amerimed Corporation, which distributes durable medical equipment under the names Amerimed Sleep Diagnostics and Amerimed CPAP Specialists. The defendants are alleged to have submitted over 14,000 false claims to Medicare for diagnostic sleep studies and durable medical equipment.
The United States’ complaint was filed in a whistleblower action, captioned United States ex rel. Dresser v. Qualium Corp., et al., Civil Action No. 12-1745 (N.D. Cal.), that was filed under the qui tam provisions of the False Claims Act. The False Claims Act allows for private persons, such as Elma F. Dresser in this case, to file actions to provide the government information about wrongdoing. The United States is entitled to intervene, as it did here in May 2015, and take over such lawsuits. By filing its complaint in intervention today, the government provides the allegations that will establish the parameters of its claims. In this case, the government alleges defendants billed Medicare for tests that were conducted at unapproved locations and performed by technicians lacking the licenses or certifications required by Medicare payment rules and regulations. Specifically, the government alleges that defendants obtained approval to treat Medicare patients at only two of their locations and then treated patients at all their Bay Sleep Clinic locations. Defendants then falsified documents to state that the patients had been treated at one of the two approved locations. The government also alleges that the defendants fraudulently billed Medicare for medical devices in violation of Medicare rules, and regulations that prohibit providers of diagnostic sleep tests from supplying medical devices and from sharing a sleep laboratory location with a durable medical equipment supplier.
Under the False Claims Act statute, if it is established that a person has submitted or caused others to submit false or fraudulent claims to the United States, the government can recover treble damages and $5,500 to $11,000 for each false or fraudulent claim filed. If the government is successful in resolving or litigating its claims, the whistleblower who initiated the action can receive a share of between 15 percent to 25 percent of the amount recovered.
The whistleblower action in this case contained additional allegations. However, the United States is intervening only with regard to certain allegations, i.e., that Qualium Corporation (doing business as Bay Sleep Clinic), Amerimed Corporation (doing business as Amerimed Sleep Diagnostics and Amerimed CPAP Specialists), Nader, and Mostowfipour submitted false claims to Medicare for durable medical equipment and for sleep tests performed at unapproved locations or by unqualified technicians. The United States is not pursuing the whistleblower’s additional claims against the third-party company used by the defendants to submit claims to Medicare nor claims regarding alleged improper payments made by the defendants to medical providers.
Assistant U.S. Attorneys Kimberly Friday and Robin M. Wall are handling the case with assistance from Financial Fraud Investigator Michael Zehr. The investigation was conducted by the U.S. Attorney’s Office for the Northern District of California and the Office of Inspector General of the Department of Health and Human Services.
The claims asserted in the complaint are allegations only, and there has been no determination of liability.
United States Files Lawsuit Against URS Federal Services and Yang Enterprises Alleging Defrauding of NASA and GSARead the Press Release
Orlando, Florida - United States Attorney A. Lee Bentley, III announces today that the United States has formally filed a lawsuit against URS Federal Services, Inc. and its subcontractor Yang Enterprises, Inc. This lawsuit is brought pursuant to the False Claims Act.
In its complaint, the government describes a six-year scheme in which URS and Yang – recipients of over a billion dollars in federal government contracts – systematically defrauded the government. The complaint alleges that URS and Yang, who were responsible for overseeing a General Services Administration (GSA) fleet of approximately 400 vehicles for NASA at Kennedy Space Center, submitted more than a thousand claims for undocumented and unreasonable early replacement of car tires.
The complaint alleges that, between June 2009 and April 2015, URS and Yang submitted $387,000 in false claims to the federal government for payment. During this time period, URS and Yang billed NASA for an unprecedented number of tire replacements, excluding ones for blowouts or catastrophic damage. For example, the government alleges that URS ordered six tire replacements for one vehicle during a 27-month period. Some of these tires had fewer than 5,000 miles of use on them. In some cases, installed tires on government vehicles appeared to have been removed and replaced by inferior tires by the time the vehicle was re-serviced. The government alleges that roughly half of the vehicle fleet for which URS and Yang were responsible had vehicles with tires that did not last 60% of their expected tire life.
“We expect government contractors to act with integrity when they fulfill their contractual obligations to the government,” stated U.S. Attorney Bentley. “Overbilling for services that are not documented or not reasonable hurts the taxpayer.”
This case is being investigated by the General Services Administration - Office of Inspector General, the National Aeronautics and Space Administration - Office of Inspector General, and Assistant United States Attorney Jason Mehta.
The lawsuit contains allegations only, and there has been no determination of liability.
U.S. Attorney’s Office mourns the loss of Assistant United States Attorney John BroadwellRead the Press Release
SHREVEPORT, La. – It is with profound sadness that U.S. Attorney Stephanie A. Finley announces that Civil Assistant U.S. Attorney John A. Broadwell passed away today after a long battle with cancer.
AUSA Broadwell had more than 30 years of experience practicing law, with the majority of those years at the U.S. Attorney’s Office, Shreveport Division. Mr. Broadwell received his undergraduate degree from the University of New Orleans in 1979 and his law degree from Loyola University in New Orleans in 1983. That same year, he married his way to Shreveport and joined a small firm that engaged primarily in civil litigation. Not long after that, he joined the Caddo Parish District Attorney’s Office where he initially handled appeals and later handled misdemeanors and felonies as a litigating Assistant District Attorney. In January of 1987, Mr. Broadwell joined the U.S. Attorney’s Office and handled appeals to the Fifth Circuit for approximately three years before joining the Civil Division. He served 13 years as the Deputy and Civil Chief of the Civil Division from April 1989 to February 2002 and later served as litigator handling a wide variety of civil matters. AUSA Broadwell served the U.S. Attorney’s Office and the Department of Justice with distinction under five Presidents.
“John was a special kind of leader in our office. I was fortunate to know him for many years and have shared numerous conversations on a variety of topics, but the lasting lesson that will stay with me is his example of how to walk gracefully when confronted with mortality. I have never seen someone more courageous, caring and at peace with life and death. John wanted everyone else, despite the heaviness of his diagnosis, to be okay. He served this District admirably, with great pride and distinction,” Finley stated. “His wit, experience, and commitment to the Western District of Louisiana and the Department of Justice will be sorely missed by all. The value of his service cannot be measured. We ask for prayers and support for his family during this time of grief.”
In the 2014 August/September Edition of the Louisiana Bar Journal, John Broadwell said his goodbyes to his Louisiana colleagues in the legal profession in an open letter to the Louisiana Bar Journal. The letter can be viewed online on page 170 at http://files.lsba.org/documents/publications/BarJournal/Journal-Aug-Sept-2014.pdf.
John is survived by his wife, Diane Davis Broadwell, two children, Christopher Moore Broadwell and Heather Diane Broadwell, granddaughter, Hattie Broadwell, mother, Laura Jean Broadwell, and brothers, Dr. Larry K. Broadwell and Terry D. Broadwell. Plans for a memorial service are pending.
Two Perry County Men Indicted by Feds on Explosives and Firearm ChargesRead the Press Release
Freedom C. Davis, 19, of Tamaroa, IL, and Samuel L. Dunson, 19, of DuQuoin, IL, were indicted on August 21, 2015, on explosives and firearm charges in a three count Indictment returned by a Federal Grand Jury, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Count 1 charges that on August 5, 2015, around 5:00 a.m., in Perry County, Illinois, Davis and Dunson did knowingly possess a destructive device, further described as an Improvised Explosive Incendiary Device, which had not been registered to either of them in the National Firearms Registration and Transfer Record in violation of federal law.
Count 2 charges that on August 5, 2015, around 5:30 a.m., in Perry County, Illinois, Davis and Dunson did knowingly possess a destructive device, further described as an Improvised Explosive Incendiary Device, which had not been registered to either of them in the National Firearms Registration and Transfer Record in violation of federal law.
Count 3 charges that on August 5, 2015, in Perry County, Illinois, Dunson did knowingly possess a firearm, that is, a weapon made from a Revelation model 350M shotgun, with a barrel length of less than 18 inches, and commonly referred to as a sawed-off shotgun, which had not been registered to him in the National Firearms Registration and Transfer Record in violation of federal law.
Each Count carries a possible penalty of up to 10 years’ imprisonment, up to a $250,000 fine, and no more than 3 years’ supervised release.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the DuQuoin, IL Police Department, and the Illinois State Police Department.
The case is being handled by Assistant United States Attorney George Norwood.
Two Men Sentenced to Prison Terms for Participation in Armed PCP Drug Distribution RingRead the Press Release
WASHINGTON – Two men have been sentenced to prison terms for their roles in an armed narcotics organization that trafficked phencyclidine (PCP) in Southeast Washington. The defendants were arrested in 2013 after a local resident walked into the Seventh District Police station and reported that armed defendants had forcibly taken over his apartment in the Woodberry Village Apartment complex to distribute PCP.
The sentences were announced by Acting U.S. Attorney Vincent H. Cohen, Jr and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dawayne Brown, 21, and Keith Matthews, 24, both of Washington, D.C., were found guilty in March 2015 following a nine-week jury trial in the U.S. District Court of the District of Columbia. Brown was found guilty of second-degree burglary while armed with a firearm, possession with intent to distribute PCP, and possession of a firearm. Matthews was found guilty of being a felon in possession of a firearm.
The Honorable Richard J. Leon sentenced the defendants on Sept. 1, 2015. Brown was sentenced to 14 years in prison, to be followed by eight years of supervised release. Matthews was sentenced to a nine-year prison term, to be followed by three years of supervised release. Four others have been convicted or entered guilty pleas and are awaiting sentencing.
Brown, Matthews, and the four other co-defendants were indicted in 2013 following an investigation by the Metropolitan Police Department of violent distributors of PCP in the Woodberry Village area of Southeast Washington. The investigation revealed that from May 2012 through April 2013, the defendants and fellow 23rd Street crew members (also known as “Little Mexico”) worked together to distribute PCP in the Woodberry Village area by taking over apartments from the residents and selling narcotics from the safety of these apartments. The crew members were often armed with firearms, and they sold large amounts of PCP in the local area. The crew members also regularly exposed young children to narcotics and firearms.
The investigation revealed that in January 2013, Brown violently took over the apartment of a resident at gunpoint to facilitate PCP sales, and that Brown used an 11-year-old child to facilitate his drug distribution. Brown and Matthews thereafter took control and used the resident’s apartment against his will, and they stored numerous firearms and bottles of PCP in his apartment. Despite being intimidated and in fear, the resident reported the defendants’ crimes by walking into the Seventh District Station to report that the defendants had taken over his apartment and that they were in possession of a large quantity of PCP and a number of firearms. Police immediately responded to the resident’s apartment and found Brown inside with three loaded firearms, including an Uzi-style firearm with 19 rounds of ammunition, and multiple bottles of PCP.
During the course of the investigation, MPD uncovered numerous other apartments being used by crew members to distribute narcotics and they seized multiple bottles of PCP, more than eight firearms, body armor, and over $3,500 in cash. Since the first arrest of the 23rd Street members in January 2013, more than a dozen 23rd Street drug traffickers, many of whom are known to be violent, have been identified, arrested and charged with narcotics, firearms and/or related criminal conduct.
In announcing the sentences, Acting U.S. Attorney Cohen and Chief Lanier commended the work of the agents, officers and investigators from the Seventh Police District who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Crystal Barclay, Anthony Griffith, and Theresa Nelson, the Litigation Support Unit; Tanya Via, Debra Cannon, and Wanda Queen of the Victim/Witness Assistance Unit, Criminal Investigators Durand Odom and Nelson Rhone, and former intern Daniella Sterns.
Finally, they acknowledged the work of Assistant U.S. Attorneys Tejpal S. Chawla and George Eliopoulos, who prosecuted the case.
Two Men Charged with Federal Drug Offense Following Investigation into Distribution of Synthetic CannabinoidsRead the Press Release
WASHINGTON – Two men have been charged with a federal drug offense following a law enforcement investigation that led to the seizure of roughly 265 pounds of suspected synthetic cannabinoids at a warehouse in Washington, D.C.
The charges were filed today by the U.S. Attorney’s Office for the District of Columbia following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Maryland State Police, and the Metropolitan Police Department. Assistance was provided by the U.S. Drug Enforcement Administration.
Yenework Tefera Abera, 41, of Alexandria, Va., and Siraj Issa, 33, of Washington, D.C., appeared this afternoon in the U.S. District Court for the District of Columbia. Each was charged in a criminal complaint with possession with intent to distribute a controlled substance. The Honorable G. Michael Harvey ordered them held pending a detention hearing on Sept. 8, 2015. The charge carries a statutory maximum of 20 years in prison and potential financial penalties.
“The charges filed today reflect our steadfast commitment to dealing with the serious problem of synthetic cannabinoids,” said Acting U.S. Attorney Vincent H. Cohen, Jr. “Whether it has been educating our citizens throughout the District of Columbia about the dangers of synthetic cannabinoids or pursuing local and federal investigations to target the distributors and street sellers of this dangerous drug, the U.S. Attorney’s Office has been aggressively attacking this problem at all fronts. And we will continue to do so to keep our community safe.”
“Synthetic drugs pose a serious public health and safety issue to our communities,” said Clark Settles, Special Agent in Charge for US Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C. office. “This operation’s success is a testament to the excellent working relationship between our agencies and sends a clear message to anyone involved in illicit drug trade that we are united in our efforts to disrupt and dismantle their operations.”
According to the charging documents, Abera and Issa were arrested on Sept. 1, 2015 at a storage facility in Northwest Washington. The two men were observed by law enforcement moving boxes of synthetic cannabinoids into a storage unit at the facility. Law enforcement seized a shipment of 14 boxes weighing approximately 265 pounds. The boxes contained individual packages of substances labeled “Bizarro,” a marketing name for a synthetic cannabinoid.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Stephen J. Gripkey of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Two Bergen County, New Jersey, Men Charged with Defrauding Mortgage Lenders Through Illicit Short SalesRead the Press Release
NEWARK, N.J. – A father and son were arrested this morning for engaging in a scheme that used straw buyers and short sales on two Bergen County properties to defraud mortgage lenders out of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.
George Bussanich Sr., 56, of Park Ridge, New Jersey, and George Bussanich Jr., 35, of Upper Saddle River, New Jersey, are charged by indictment with one count of conspiracy to commit bank fraud and two counts of bank fraud. They are scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2009 and 2012, Bussanich Sr. and Bussanich Jr. allegedly conspired to defraud mortgage lenders through the sham short sales of two properties located on Jefferson Avenue in Emerson, New Jersey and Lillian Street in Park Ridge.
Bussanich Sr. controlled various purported medical clinics and surgical centers in New Jersey. He recruited his business partner and an employee from a sleep clinic in Cliffside Park, New Jersey, to pose as legitimate, unrelated buyers of the properties. In order to conceal his involvement, Bussanich Sr. used a business entity he controlled to fund each short sale transaction and the subsequent repurchase of those properties. Bussanich Jr., the record owner of both properties, negotiated the short sales with the lenders using materially false information that misrepresented the circumstances of the short sales, the relationships of the parties and the source of funding for the transactions.
Approximately two years after the fraudulent short sales, Bussanich Sr., bought the properties back from the straw purchasers using money that he owed the aforementioned business partner from a prior business venture.
Each count in the indictment carries a maximum of potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Stock Promoter Indicted for Conspiring to Commit Securities FraudRead the Press Release
BOSTON – A Colorado stock promoter was charged today in U.S. District Court in Boston with conspiring to commit securities fraud by promoting shares of a company and then secretly selling them, without disclosing that he and his co-conspirators controlled almost all of the available shares.
Scott F. Gelbard, 39, a former resident of Lone Tree, Colo., who has since moved to Canada’s Pacific Northwest, was indicted on one count of conspiracy to commit securities fraud and one count of securities fraud.
According to the indictment, Gelbard and his business partners owned and operated Regency Group, LLC, a stock-promotion company in Colorado. Gelbard allegedly hired a disbarred attorney to set up brokerage accounts in the name of phony Panamanian entities that the former attorney controlled so that Gelbard and his partners could secretly accumulate, and then sell, stock in companies that they were promoting. One of those companies was Greenchek Technology, Inc., a firm that purportedly made gasoline-emission-reduction products. Beginning in 2008, Gelbard and his partners allegedly began transferring Greenchek shares they had acquired to the entities controlled by the former attorney. They then intentionally failed to file required disclosures that they had accumulated over 85% of Greenchek’s available shares, despite U.S. Securities and Exchange Commission requirements that such disclosures be made when ownership of a company’s stock exceeds five percent.
As alleged in the indictment, Gelbard then hired a company to distribute certain promotional materials concerning Greenchek, including a series of press releases issued between February and June 2009. Beginning in February 2009, Gelbard and his partners began selling the stock held in the names of the phony Panamanian entities, generating more than $4 million in proceeds by June 2009. At Gelbard’s direction, the former attorney then laundered the proceeds through accounts in Panama and transmitted the money to accounts that Gelbard and his partners controlled or to pay debts that they owed. A federal grand jury in Massachusetts returned the indictment here because a number of victims lived in the Commonwealth.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of the greater of $250,000 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Steven Osborne, Special Agent in Charge of the Internal Revenue Service Criminal Investigations, Denver Field Office; and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Thomas Resident Sentenced to Federal Prison for Firearm ChargeRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Clinton G. Todman, Jr., 44, to 40 months in federal prison for his conviction of Felon in Possession of a Firearm, United States Attorney Ronald W. Sharpe announced. In addition to the prison term, Judge Gomez sentenced Todman to serve three years of supervised release, pay a $100 special assessment, and perform 250 hours of community service.
Todman pleaded guilty on May 7, 2015 to the charge of Felon in Possession of a Firearm. According to court documents, on February 5, 2015, after receiving descriptions of two vehicles exchanging gunfire in the area of the Cost-U-Less on St. Thomas, Virgin Islands police officers searched for vehicles matching the descriptions. The vehicles were described as a black and a goldcolored Honda. During their search for the vehicles, officers observed Todman in the driver’s seat of a black Honda in the area of Tutu High Rise. After Todman exited the vehicle, the officers patted him down for their safety and retrieved a Kel-Tec, .40 caliber firearm with an obliterated serial number. Todman was not authorized to carry a firearm because in 1991, he was convicted of a felony in the District Court of the Virgin Islands.
This case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol,Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Nelson L. Jones.
St. Joseph Man Pleads Guilty to His Role in Solar Company's $1.4 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced an owner of a solar energy installation company in St. Joseph, Mo., pleaded guilty in federal court today to his role in a fraud scheme that totaled nearly $1.4 million in rebates through state and federal programs.
Richard Schonemann, 38, of St. Joseph, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a two-count information that charges him with one count of conspiracy related to false statements in regard to a federal rebate program, and one count of false statements related to kilowatt updates in a federal solar rebate program.
Schonemann was an owner of US Solar in St. Joseph, which sold and installed solar-powered panel systems to businesses and home owners in northwest Missouri. Between 2011 and 2013, Schonemann and US Solar participated in two solar panel rebate programs, one authorized by the state of Missouri and the second administered by the federal government. As a result of this scheme, US Solar received a total of $1,398,236 in fraudulent rebates.
Solar Photovoltaic Rebate Program ($465,360 Fraud Scheme)
According to today’s plea agreement, US Solar and a co-conspirator were involved in obtaining fraudulent rebates from KCP&L as part of the state rebate program. US Solar overstated the number of solar panels installed on approximately 27 homes or businesses from December 2011 through June 2013. As a result, US Solar was paid $465,360 more in rebates than the company was entitled to receive.
KCP&L administered the state’s Solar Photovoltaic Rebate Program, which was created in 2008 by the state of Missouri and funded by a tax on power customers. The rebate allowed for a payment of $2 per watt, not to exceed $50,000, to customers that installed solar powered panel systems on their homes or businesses. US Solar was one of the larger solar powered panel system installation companies that utilized this rebate program through KCP&L. To utilize the state rebate program, US Solar submitted applications and schematic drawings on behalf of their customers via email to KCP&L. Once the application process was completed, funds were disbursed to US Solar by checks mailed from KCP&L.
American Recovery and Reinvestment Act of 2009 ($932,876 Fraud Scheme)
During the investigation of the state rebate scheme, the FBI uncovered unexplained payments from the federal government to US Solar that led to the discovery of a second fraudulent scheme that was part of the conspiracy.
Schonemann and a co-conspirator obtained fraudulent rebates authorized by the American Recovery and Reinvestment Act of 2009. Under the federal program, the government reimbursed 30 percent of the cost of the installation of a solar-powered panel system leased to the property owner. US Solar received federal funds under this program from August 2011 to September 2013, because US Solar certified they installed systems and leased those systems to the property owners. The certification was false because the systems were owned by customers rather than leased. US Solar submitted forged lease contracts in order to receive the federal rebates.
US Solar received 34 payments from the federal government, totaling $932,876. US Solar was not eligible to receive any of the $932,876 paid under the federal program.
False Statements
Additionally, each year after installation, US Solar was required to certify that the installed systems were still running and report the systems’ output. Schonemann and a co-conspirator provided updates showing kilowatt usage on each of those properties to the federal government in 2012 and 2013. In some instances, Schonemann simply made up the numbers.
A co-conspirator created false paperwork and computer entries using US Solar customer information. The conspiracy involved the use of false paperwork and computer entries, including lease agreements, certification that US Solar retained ownership of the solar-powered panel systems, detailed cost breakdowns on each system and usage reports. Schonemann and a co-conspirator were involved in preparation of the false usage reports.
One of the fraudulent federal payments related to Schonemann’s place of employment, Prolific Technologies, Inc. Fraudulent paperwork was submitted requesting payment for 36 extra panels not installed or leased, resulting in a rebate overpayment of $20,028.
Penalties
Under the terms of today’s plea agreement, Schonemann must forfeit to the government $350,000 that he received from the fraud scheme.
During the course of the conspiracy, Schonemann received payments from US Solar that were described as profit distributions. A significant source for those profit distributions were funds received by US Solar from the federal program. A portion of those funds were used towards the construction of a new house Schonemann built, which is currently listed for sale at an asking price of over $400,000.
Schonemann’s residential property is currently named in a civil judicial forfeiture action. Schonemann will be allowed to market this property and, if the property is sold, the first $350,000 in net equity will be used to pay restitution for the federal program fraud. If there is not a signed real estate contract on the property by Oct. 1, 2015, the civil forfeiture action shall proceed and the property will be forfeited to the government to be sold by the U.S. Marshal’s Service.
Under the terms of today’s plea agreement, the government’s sentencing recommendation to the court will not exceed 15 months in federal prison. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.
South Carolina Anesthesiologist Convicted of Internet Solicitation of A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found John Francis Williams (69, Blythewood, SC) guilty of using the Internet to attempt to persuade a minor to engage in sexual activity. He faces a maximum penalty of life in federal prison. A sentencing hearing is scheduled for November 20, 2015.
Williams was indicted on February 6, 2013.
According to evidence presented at trial, in October 2012, while visiting his vacation home in Port Orange, Florida, Williams responded to a Craigslist ad. The ad had been placed by an undercover officer posing as the mother of a 14-year-old girl who was looking for a man to teach her child about sex. After a series of emails and phone calls with the “mother,” Williams drove to a house where he intended to have sex with the teen. He brought an overnight bag containing condoms, lubricants, and vibrators.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Volusia County Sheriff’s Office, the Brevard County Sheriff’s Office, and the Internet Crimes Against Children Task Force. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sex Offender Pleads Guilty to Failing to Register and Assault on an OfficerRead the Press Release
POCATELLO - Ronald Lee Chaney, 34, of Idaho Falls, Idaho, pleaded guilty yesterday to failing to register as a sex offender and assault on an officer, U.S. Attorney Wendy J. Olson announced. Chaney was indicted by a federal grand jury in Pocatello on August 27, 2013.
According to the plea agreement, Chaney was convicted in May 2002, of sexual abuse of a child under the age of sixteen years in Idaho. As a result of the conviction, the defendant was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). SORNA requires that sex offenders register and keep current their registration in each jurisdiction where they reside.
Chaney’s last registered address, according to the plea agreement, was a half-way house in Arkansas in May 2013. On July 1, 2013, the defendant and another fugitive sex offender travelled by bus from Salt Lake City, Utah, to Pocatello, Idaho, where Chaney resided until he was arrested on August 7, 2013. In an attempt to avoid arrest Chaney jumped from a third story window and forcibly assaulted and impeded a Pocatello police detective who was assisting the United States Marshals Service apprehend Chaney. The Pocatello police detective’s report indicates that Chaney punched him on the forehead during the encounter, and also that the defendant placed his hands around the detective’s neck and squeezed.
The crime of failure to register as a sex offender is punishable by up to ten years in prison, a maximum fine of $250,000.00, and up to a life term of supervised release. Assault of an officer is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for November 17, 2015, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Idaho Sex Offender Watch Task Force (ISOW) and the United States Marshals Service (USMS).
Ronald Lee Chaney 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.
Savannah River Site Contractor Agrees to Pay $3.8 Million to Settle False Claims Act AllegationsRead the Press Release
Contact Person: James Leventis (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles announced today that Parsons Government Services Inc. has agreed to pay the United States $3.8 million to settle allegations that the company knowingly mischarged the U.S. Department of Energy (DOE) for ineligible or inflated short-term and long-term employee relocation costs in connection with its contract on the DOE Salt Waste Processing Facility Project (SWPF) at the DOE Savannah River Site in Aiken, South Carolina. Parsons is headquartered in Pasadena, California.
“The District of South Carolina continues to devote significant resources to pursuing claims under the False Claims Act and this is yet another example of how this commitment is benefiting the taxpayers by recovering funds for the government,” said U.S. Attorney Bill Nettles of the District of South Carolina
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue contractors that knowingly seek taxpayer funds to which they are not entitled.”
Since Sept. 1, 2002, Parsons has been the primary construction contractor on the DOE’s SWPF project at the Savannah River Site. Pursuant to the terms of the SWPF contract, Parsons was entitled to be reimbursed for the payments it made to eligible employees for moving, meals, lodging and transportation expenses incurred when the employees were relocated or transferred by Parsons to work on the SWPF project in Aiken. In order to be entitled to reimbursement by the DOE, however, Parsons was required to take steps to ensure that the employees met certain contractual requirements of eligibility, such as maintaining a permanent residence at the location from which they were transferred. The United States alleged that Parsons sought and obtained reimbursement for these relocation expenses under the SWPF contract even for employees it knew did not qualify for these payments under the terms of the contract.
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the District of South Carolina, the Civil Division’s Commercial Litigation Branch, the DOE Savannah River Operations Office and the DOE Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
#####
Romanian Man Sentenced for False Visa PetitionRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Bogdan Dragos (34, Romania) to two years in federal prison for filing a false petition to obtain visas for foreign workers. He pleaded guilty on June 12, 2015.
According to court documents, in 2010, while operating an employment agency in Daytona Beach, Dragos filed a petition with United States Citizenship and Immigration Services (USCIS) to obtain 392 visas for unnamed workers from the Philippines. In that petition, he falsely claimed that he had contracts with 12 hotels in the Daytona Beach area to provide foreign workers on a temporary basis. USCIS approved the petition and a large number of Filipino workers started applying for visas at the U.S. Embassy in Manila. The fraud was detected when an employee from the U.S. Embassy began calling the hotels in Daytona Beach and learned that the purported contracts did not exist.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of State’s Diplomatic Security Service. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
Restaurant Owner Pleads Guilty to $400,000 Tax Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of DEXI ZHENG, 33, to filing a false federal income tax return. ZHENG was charged on July 6, 2015, by felony information, with one count of filing a false individual tax return. He pleaded guilty on August 21, 2015, before U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn. A sentencing date has not yet been determined.
“Individuals who corruptly violate the tax law to further their business interests and intentionally falsify their tax returns undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules,” stated Special Agent in Charge Shea Jones of the IRS Criminal Investigation Division. “The IRS Criminal Investigation Division, together with the U.S. Attorney’s Office, will investigate and prosecute those who violate our tax system.”
According to his guilty plea and documents filed in court, from at least 2009 to 2013, ZHENG was the owner of two restaurants located in St. Michael and Big Lake, Minn. As owner of the restaurants, the defendant was responsible for reporting the profit or loss from the two restaurants on his federal individual income tax returns.
According to his guilty plea and documents filed in court, from at least 2009 to 2013, ZHENG avoided paying taxes on the full amount of the restaurants’ revenue in at least two ways. First, ZHENG intentionally failed to deposit any of the cash receipts into the restaurants’ bank accounts and failed to report the restaurants’ cash receipts on his Schedule C. Second, ZHENG recruited his father, G.Z., to act as a nominee and include the profits from the St. Michael restaurant on G.Z.’s individual income tax returns even though he was not the actual owner of the restaurant. In doing so, ZHENG caused G.Z. to exclude the St. Michael restaurant’s cash receipts from G.Z’s Schedule C. The total loss caused by ZHENG is approximately $420,000.
ZHENG faces up to three years in prison.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.
Defendant Information:
DEXI ZHENG, 33
St. Michael, Minn.
Convicted:
- Filing a False Individual Tax Return, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Republic Man Sentenced for Stealing Guns from Pawn ShopRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Republic, Mo., man was sentenced in federal court today for stealing 23 firearms during a burglary at an Ozark, Mo., pawn shop.
Michael Cameron Heston, 26, of Republic, was sentenced by U.S. District Judge M. Douglas Harpool to five years and six months in federal prison without parole. The court also ordered Heston to pay $5,900 in restitution for damages related to the theft of firearms and the breaking and entering of the business.
On March 31, 2015, Heston pleaded guilty to aiding and abetting in the theft of firearms from a licensed firearm dealer. Co-defendants Daryl Bradley Maples, 28, Corey Lee Downard, 33, and Matthew James Oakley, 24, all of Springfield, have pleaded guilty to the same charge. Maples was sentenced on April 16, 2015, to six years in federal prison without parole and ordered to pay $5,900 in restitution (for which he is jointly and severally liable with Heston).
Heston, Maples, Downard and Oakley each admitted that they broke into Sutton Gun and Pawn, 3994 N. 20th St., Ozark, at 2:16 a.m. on Dec. 21, 2012. Maples (who was previously employed at the store) admitted that he smashed out the glass from the front door. Then Heston, Maples and Downard went inside and took firearms from the display cases. Oakley admitted that he was the getaway driver during the robbery.
They stole 23 firearms and various amounts of ammunition. After the burglary, Oakley sped off with Maples, Heston and Downard to Maples’ residence, where they divided the spoils of the burglary and set up plans to exchange or barter the stolen firearms for cash or drugs.
When Maples was arrested on Dec. 26, 2012, he had in his possession two of the firearms that were stolen in the pawn shop burglary, an F.N. 9mm pistol and a Colt .38-caliber revolver, as well as assorted ammunition.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozark, Mo., Police Department and the Springfield, Mo., Police Department.
Queen Anne’s County Cocaine Trafficker Sentenced to over Eight Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Baraka Zuberi Chauka, age 39, of Barclay, Maryland today to 100 months in prison, followed by three years of supervised release for conspiring to distribute, and possession with intent to distribute, cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Queen Anne’s County Sheriff R. Gary Hofmann III.
According to evidence presented at his trial, as part of a cocaine trafficking investigation by the Queen Anne’s County Narcotics Task Force, law enforcement learned in March 2014 that Chauka routinely supplied powder cocaine to co-defendant Adrian Reed, who cooked the powder into cocaine base to sell to customers. Chauka also sold powder cocaine and crack cocaine to his own customers.
Further investigation revealed that Chauka purchased powder cocaine from a supplier in the Philadelphia area. On April 21, 2014, Maryland State Police stopped Chauka on his way back from meeting with his supplier in Philadelphia, and he was found to be in possession of approximately 125 grams of powder cocaine. A subsequent search of Chauka’s residence revealed more cutting agents and a digital scale.
On April 30, 2014, shortly after he made bail from the state drug charges, law enforcement overheard calls between Chauka and Reed indicating that Chauka had immediately returned to drug distribution. As a result of these calls, law enforcement executed a second search warrant of Chauka’s residence, this time revealing more cutting agents, a digital scale, and two boxes of 9mm ammunition.
The investigation showed that Chauka trafficked approximately 232.5 grams of powder cocaine from March to April 2014.
Adrian Lamont Reed, age 39, of Chesterton, Maryland, previously pleaded guilty to his participation in the conspiracy and was sentenced to 70 months in prison.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and Queen Anne’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Christopher J. Romano, who prosecuted the case.
Pine Hill Man Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
ALBUQUERQUE – Patrick Martinez, 28, of Pine Hill, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a marijuana trafficking charge.
Martinez was arrested on April 28, 2015, on a three-count indictment charging him with distributing marijuana. The indictment alleged that Martinez distributed marijuana on three separate occasions between May 2014 and July 2014, in Cibola County, N.M. Each of the three transactions took place on the Ramah Navajo Indian Reservation.
During his change of plea hearing, Martinez entered a guilty plea to Count 1 of the indictment and admitted selling marijuana to an undercover officer on May 2, 2014.
At sentencing, Martinez faces a statutory maximum penalty of five years in prison. His sentencing hearing has yet to be scheduled.
This case was investigated by the Ramah Navajo Tribal Police Department, the Albuquerque office of the BIA’s Office of Justice Services, and the Gallup office of the FBI. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Pharmacist Sentenced to Three Years in Prison for Misbranding and Fraud Offenses Arising from Internet Pharmacy SchemeRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that LENA LASHER, a licensed pharmacist, was sentenced in Manhattan federal court today to three years in prison for misbranding and fraud offenses arising from an Internet pharmacy scheme. LASHER was convicted on May 15, 2015, after a two-week trial before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “Lena Lasher abused her position as a licensed pharmacist by dispensing prescription drugs to customers without valid prescriptions and customers who had never consulted with a physician. Prescription drugs, especially the pain medications that Lasher dispensed, can be addictive and dangerous, and this Office is committed to prosecuting those who illegally dispense prescription drugs.”
According to the Indictment, and Superseding Indictment, public filings, and evidence presented at trial:
From 2008 through late November 2012, LASHER, along with others, engaged in a scheme to dispense prescription drugs, including addictive pain medications, to customers who ordered them online, without meeting or consulting with a physician. Over the course of the scheme, LASHER, a licensed pharmacist who was the Pharmacist-In-Charge at Hellertown Pharmacy in Hellertown, Pennsylvania, and who supervised a second pharmacy, Palmer Pharmacy & Much More in Easton, Pennsylvania, dispensed and caused others to dispense hundreds of thousands of pain pills without valid prescriptions.
LASHER also directed employees at the two pharmacies she supervised to ship pills in vials with false or misleading labels. At LASHER’s direction, instructions on the labels for how often a customer should take certain drugs were often altered, and the descriptions on the labels regarding the quantity of pills in the pill vial were often inaccurate. She also directed employees to take pills that had been returned by customers or delivery services, remove the labels, and then to re-dispense the pills to other customers with new labels, without informing those new customers that they were receiving pills that had previously been dispensed to others. LASHER also instructed her employees to store pills without required information, such as a lot number or expiration date.
As part of her effort to conceal the nature of the Internet pharmacy business at both pharmacies, LASHER made false representations to multiple state boards of pharmacy and to an investigator with the Commonwealth of Pennsylvania. LASHER also instructed her employees to use code when talking about the Internet pharmacy scheme, telling them to refer to prescription drugs dispensed pursuant to prescriptions obtained over the Internet as “nursing home meds” and not to use the word “Internet” in describing the pharmacies’ business.
LASHER, 47, of High Bridge, New Jersey, was convicted after trial of one count of conspiracy to introduce misbranding prescription drugs into interstate commerce and to misbrand prescription drugs while held for sale, with intent to defraud or mislead; one count of introducing misbranding prescription drugs into interstate commerce, with intent to defraud or mislead; one count of conspiracy to commit mail fraud and wire fraud; one count of mail fraud; and one count of wire fraud. In addition to the prison term, LASHER was also sentenced to two years supervised release, and was ordered to pay $2.5 million in forfeiture.
United States Attorney Bharara praised the work of the Drug Enforcement Administration, the Food and Drug Administration, Office of Criminal Investigations, and the United States Postal Inspection Service, and expressed his appreciation for the assistance of the Commonwealth of Pennsylvania, Department of State, and the New Jersey Department of Law & Public Safety, Division of Law, Professional Boards Prosecution Section.
The case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Kristy J. Greenberg are in charge of the prosecution.Pennsylvania Woman Sentenced for Possession and Sale of A Stolen FirearmRead 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 Danelle Christine Wilson, 27, of Tioga, Pennsylvania, who was convicted of possession and sale of a stolen firearm, was sentenced to 21 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that Wilson and co-defendant, Ciera Leann Bennett, were arrested after an investigation by the Pennsylvania State Police into the theft of a .38 caliber revolver from the owner, who lived in Tioga, Pennsylvania. On April 26, 2012, Wilson and Bennett transported the stolen .38 caliber revolver from Tioga, Pennsylvania, to Elmira, NY and sold it in order to buy drugs.
On December 31, 2012, the firearm was recovered in Ithaca, NY. Ballistic testing concluded that the firearm had been used in an officer-related shooting in October of
2012 which seriously injured an Ithaca police officer.Ciera Leann Bennett was also convicted and sentenced to 16 months in prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Parsons Government Services Inc. Agrees to Pay $3.8 Million to Settle False Claims Act AllegationsRead the Press Release
Parsons Government Services Inc. has agreed to pay the United States $3.8 million to settle allegations that the company knowingly mischarged the U.S. Department of Energy (DOE) for ineligible or inflated short-term and long-term employee relocation costs in connection with its contract on the DOE Salt Waste Processing Facility Project (SWPF) at the DOE Savannah River Site in Aiken, South Carolina. Parsons is headquartered in Pasadena, California.
“Those who expect to do business with the government must do so fairly and honestly,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue contractors that knowingly seek taxpayer funds to which they are not entitled.”
Since Sept. 1, 2002, Parsons has been the primary construction contractor on the DOE’s SWPF project at the Savannah River Site. Pursuant to the terms of the SWPF contract, Parsons was entitled to be reimbursed for the payments it made to eligible employees for moving, meals, lodging and transportation expenses incurred when the employees were relocated or transferred by Parsons to work on the SWPF project in Aiken. In order to be entitled to reimbursement by the DOE, however, Parsons was required to take steps to ensure that the employees met certain contractual requirements of eligibility, such as maintaining a permanent residence at the location from which they were transferred. The United States alleged that Parsons sought and obtained reimbursement for these relocation expenses under the SWPF contract even for employees it knew did not qualify for these payments under the terms of the contract.
“The District of South Carolina continues to devote significant resources to pursuing claims under the False Claims Act and this is yet another example of how this commitment is benefiting the taxpayers by recovering funds for the government,” said U.S. Attorney William N. Nettles of the District of South Carolina.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of South Carolina, the DOE Savannah River Operations Office and the DOE Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Owners of Worcester Payroll Company Plead Guilty to Tax Evasion and FraudRead the Press Release
BOSTON – The co-owners and former owner of a payroll company in Worcester pleaded guilty in U.S. District Court in Worcester to defrauding the Internal Revenue Service (IRS) and tax evasion. One of the co-owners also pleaded guilty to embezzling client and employee funds.
William McCullough, 72, of Westborough, Mass., pleaded guilty to two counts of conspiracy to defraud the IRS, four counts of false statements, four counts of tax evasion, and one count of wire fraud. Robert McCullough, 43, also of Westborough, the son of William McCullough, pleaded guilty to two counts of conspiracy to defraud the IRS and four counts of tax evasion. Gary Davis, 74, of Jupiter, Fla., pleaded guilty to one count of conspiracy to defraud the IRS, and three counts of tax evasion. On Aug. 31, 2015, William McCullough was charged in two Informations, and today, Robert McCullough and Davis were charged in one Information. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for William McCullough on Dec. 1, 2015, for Gary Davis on Dec. 8, 2015, and for Robert McCullough on Jan. 14, 2016.
The McCulloughs are co-owners of Harpers Data Services, a payroll company in Worcester. William McCullough is also the treasurer and his son, Robert, is the president. Gary Davis was a former owner and president of Harpers until his retirement in 2010.
Beginning around 2006, William and Robert McCullough opened and operated two corporate bank accounts at Webster Five Cents Savings Bank. From 2007 to 2012, they funneled approximately $11 million of taxable income into these accounts. The McCulloughs kept these accounts off of the corporation’s books and concealed their existence from the corporate accountant. Thus, the income deposited into these accounts was not reported to the IRS on the corporation’s annual tax returns. As a result, the corporation failed to pay approximately $3.78 million in taxes.
Also during that time, William McCullough wrote checks totaling approximately $4.7 million from one of the Webster Five corporate accounts to himself, Robert McCullough, and Gary Davis. In addition, from 2007 to 2011, William McCullough wrote bonus and dividend checks from Harpers totaling approximately $2.7 million to himself, Robert McCullough, and Gary Davis. William McCullough ensured that none of this income appeared on the appropriate tax reporting forms, and as a result, the defendants failed to pay approximately $1.7 million in taxes from 2007 through 2011.
In a separate Information, William McCullough pleaded guilty to one count of wire fraud. From 2009 through 2011, Harpers maintained client trust accounts and a client tax account. These accounts contained client funds, which were to be used to pay employees’ paychecks and employees’ federal and state taxes. From 2009 through 2011, William McCullough took approximately $1 million from the client trust accounts and deposited it into a Harpers account. In 2010, he took $750,000 from the client tax account and deposited it into a Harpers account. At the time William McCullough took this money, the funds belonged solely to the clients of Harpers Data Services. McCullough’s fraud resulted in a theft of approximately $1.8 million dollars.
The charge of conspiracy to defraud provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of false statements in a tax return provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $100,000. The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $100,000. The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Karin M. Bell, Chief of Ortiz’s Worcester Branch Office.
One Defendant Sentenced to 10 Years in Prison, Another Pleads Guilty in Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELVIN SMITH, age 30, of New Orleans, was sentenced today after previously pleading guilty to an Indictment charging him with conspiracy to distribute one kilogram or more of heroin. Additionally, co-defendant THEODORE GRIFFIN, age 61, of New Orleans, pled guilty today to the same charge.
U.S. District Judge Kurt D. Engelhardt sentenced SMITH to 120 months in prison, five years of supervised release following his prison term, and a $100 special assessment. Judge Engelhardt set GRIFFIN’s sentencing for December 9, 2015. The trial on the remaining defendant is currently scheduled for September 28, 2015.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that the defendants had been using GRIFFIN’s residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
According to the record, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TERENCE TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose. Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale. Judge Engelhardt sentenced BOLDEN to 25 years in prison in June.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Omaha Man Sentenced to 138 Months in Prison for Bank RobberiesRead the Press Release
United States Attorney Deborah R. Gilg announced that Phillip M. Weber, 39, of Omaha, Nebraska, was sentenced today by Senior United States District Court Judge Joseph F. Bataillon to 138 months in a federal penitentiary for having committed two bank robberies and for taking by force a car from an Omaha woman later used in one of the robberies.
Weber was indicted by a federal grand jury for robbing the Security National Bank on 71st Street and Redick Avenue in Omaha of approximately $4,500 in cash. He eluded escape after this May 22, 2014, bank robbery. On June 6, 2014, Weber carjacked a 2005 Mitsubishi Lancer from an Omaha woman from a Baker’s grocery store parking lot at 120th Street and Center Road in Omaha. That vehicle was identified four days later in Little Rock, Arkansas, as the getaway car for the robber of the Iberia Bank where Weber robbed the Little Rock bank of approximately $1,889. A federal investigation led law enforcement officers to Weber as the perpetrator of both bank robberies as well as the carjacking. Weber agreed to have the Arkansas case transferred to Nebraska for disposition.
Judge Bataillon sentenced Weber to 10 years each on both bank robberies as well as on the carjacking. Judge Bataillon also ordered Weber to serve an additional 18 months consecutive to the 10 years for a violation of supervised release from a previous federal conviction.
The Security National Bank robbery and the carjacking were both investigated by the Federal Bureau of Investigation and the Omaha Police Department. The Iberia Bank investigation was conducted by the Federal Bureau of Investigation and the Little Rock Arkansas Police Department.
Office on Violence Against Women Announces New Funding Opportunity for Sexual Assault Justice Initiative to Improve Sexual Assault ProsecutionsRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) today announced the release of a new $2.8 million funding opportunity as part of OVW’s Sexual Assault Justice Initiative (SAJI). Launched in April 2015, the SAJI is an opportunity to improve how the justice system in general, and prosecution in particular, handles sexual assault cases. This funding announcement will support approximately eight pilot sites to receive up to $400,000 to implement performance measures that reflect promising practices for prosecuting sexual assault and promote justice for victims.
“Very few victims report their assaults to law enforcement,” said Principal Deputy Director Bea Hanson of the Office on Violence Against Women. “But among victims who do report, the reality is that many will likely see their cases dropped during the investigation or prosecution stage. We know that sexual assault cases can be difficult to prosecute and we see the Sexual Assault Justice Initiative as an opportunity for prosecutors to learn about, and implement, effective practices for sexual assault prosecution. The goal is to look beyond convictions to see what prosecutors can do to hold offenders accountable and provide victims with the justice they deserve.”
The demonstration initiative is designed to strengthen the justice system’s response to sexual violence and enhance collaborations among sexual assault victim services providers, law enforcement agencies, and sexual assault medical forensic services providers. With funding from the Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program, the Rural Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program and the Tribal Governments Grant Program, SAJI sites will be able to use the funds to strengthen services in their communities that support sexual assault victims.
Each pilot site will receive technical assistance from AEquitas: The Prosecutor’s Resource on Violence Against Women to implement the performance measures and enhance their approach to prosecuting sexual assault. Sites will also participate in the evaluation of the initiative.
Applications for the SAJI demonstration initiative are due on Oct. 13, 2015. The solicitation is available at www.justice.gov/ovw/open-solicitations and www.grants.gov. For information on the Office on Violence Against Women and its grant programs, visit www.justice.gov/ovw.
About the Office on Violence Against Women
Created in 1995, the Office on Violence Against Women provides federal leadership in developing the Nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. To learn more, visit www.justice.gov/ovw.
Niagara Falls Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, NY—U.S. Attorney William J Hochul Jr. announced today that Percy Hilson, Jr., 27, of Niagara Falls, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to distribution of cocaine. The charge carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that the defendant sold an ounce of cocaine to an unidentified individual on December 10,
2014 in Niagara Falls. Hilson was on Federal Supervised Release from a prior conviction at the time.Today’s sentencing is the result of an investigation by the Niagara County Drug Task Force, under the direction of Sheriff James Voutour and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
New Orleans Man Pleads Guilty to Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID MOREL, age 32, of New Orleans, pled guilty today for crimes involving the sexual exploitation of children.
According to court records, on June 25, 2015, MOREL was charged as a result of a child exploitation investigation conducted by the Louisiana Attorney General’s Office Cyber Crime Unit (“LAGO”) and the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”). HSI and LAGO agents executed a search warrant at MOREL’s residence after determining MOREL was downloading images depicting the sexual victimization of children. MOREL was arrested during the execution of the search warrant after confessing to downloading and possessing images and videos depicting child pornography. HSI computer forensic examiners conducted a search of MOREL’s seized computer equipment and located over 2,500 images and videos depicting the sexual victimization of children on MOREL’s electronic devices.
According to a Notice of Sentence Enhancement filed in federal court records, in 2010, MOREL was convicted in Orleans Parish Criminal Court of 536 counts of possession of pornography involving juveniles. He received a ten year suspended sentence and, instead, was placed on home incarceration for a period of five years.
MOREL faces a mandatory minimum penalty of ten years and a maximum penalty of twenty years, followed by up to a life term of supervised release, and a $250,000 fine. U.S. District Court Judge Martin L.C. Feldman set sentencing for December 9, 2015.
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."
U.S. Attorney Polite praised the work of the Louisiana Attorney General’s Office Cyber Crime Unit and the U.S. Department of Homeland Security-HSI in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
New Haven Resident Pleads Guilty to Crack Distribution and Gun ConspiraciesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Christian Turner, a/k/a “P”, 29, of Bangor pleaded guilty today in U.S. District Court to conspiracy to possess with the intent to distribute and to distribute 280 grams of a mixture or substance containing cocaine base, commonly referred to as “crack,” and conspiracy to violate the federal gun laws.
According to court records, between January 2010 and August 2013, the defendant sold crack in Penobscot County and elsewhere. He sold half-gram bags for $40 and gram bags for $80. Other members of the conspiracy also sold bags of crack for him. He transferred the proceeds of the sales to his source of supply in the New Haven, Connecticut area and got cash and crack in exchange. The crack was transported from Connecticut to the Bangor area by other conspirators.
During the same period of time, the defendant also conspired to violate the federal gun laws. He had others fraudulently obtain fourteen firearms through “straw purchases” at pawnshops in Bangor and Brewer and acquired seven more firearms through private transactions. He paid cash or drugs for the guns and sent them back to New Haven, Connecticut for distribution to others.
The defendant faces up to 20 years in prison and a $1,000,000 fine on the drug charge and up to five years in prison and a $250,000 fine on the gun charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. He is one of eleven defendants charged in the indictment.
The case was investigated by the Maine Drug Enforcement Agency; the Bureau of Alcohol, Tobacco, Firearms and Explosives (New Haven Office); and the New Haven Police Department.
NEC Tokin Corporation to Plead Guilty and Pay $13.8 Million for Fixing Price of Electrolytic CapacitorsRead the Press Release
NEC TOKIN Corp. will plead guilty and pay a $13.8 million criminal fine for conspiring with competitors between 2002 and 2013 to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere.
Electrolytic capacitors store and regulate electrical current in electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
“NEC Tokin and its co-conspirators fixed prices on capacitors, a component used in just about every product that has a battery or a plug,” said Assistant Attorney General Bill Baer. “In announcing our first guilty plea in this ongoing investigation, we are enforcing the principle that American consumers are entitled to competitive markets. We will vigorously investigate and prosecute illegal cartels regardless of where the defendants are located or the products they target.”
“For over a decade and through various financial crises, NEC Tokin has exploited American consumers and fixed the price of capacitors, which are critical to our modern way of electronic life,” said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division. “This investigation is ongoing and the FBI and DOJ Antitrust Division are dedicated to holding responsible all of the companies that illegally take advantage of customers.”
The one-count felony charge was filed today in the U.S. District Court of the Northern District of California in San Francisco. In addition to pleading guilty to that charge and paying a criminal fine, NEC Tokin, based in Tokyo, has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.
The charge today results from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Monroe Township, New Jersey, Man Admits Embezzling $89,000 from North Brunswick Volunteer Fire DepartmentRead the Press Release
NEWARK, N.J. - The former treasurer of the North Brunswick Volunteer Fire Department No. 3 (“NBVFD”) today admitted embezzling at least $89,000, U.S. Attorney Paul J. Fishman announced.
Craig J. Snediker, 40, of Monroe Township, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made is court:
As NBVFD’s treasurer, Snediker had the authority to deposit and withdraw money from NBVFD’s bank account, which held public funds and private donations. Snediker admitted that from March 25, 2014 through May 19, 2015, he used ATM machines at banks in Middlesex County, New Jersey, to access the funds for his personal expenses. He later concealed his actions by misrepresenting the account balance to the Township of North Brunswick. Overall, Snediker admitted that he withdrew between $89,000 and $92,986 without NBVFD’s authorization.
The wire fraud charge to which Snediker pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 15, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney José R. Almonte of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Robert C. Scrivo Esq., Morristown
Millenium Capital Exchange CEO Sentenced to Federal Prison for Running Forex Ponzi SchemeRead the Press Release
ATLANTA - Stafford S. Maxwell, the former owner and Chief Executive Officer of Millennium Capital Exchange, Inc., was sentenced to three years, nine months years in prison for orchestrating a multi-million dollar foreign exchange market Ponzi scheme.
“With false promises of trading success, Maxwell defrauded investors across the country out of more than $2 million,” said U.S. Attorney John Horn. “To those tempted by investment schemes that seem too good to be true – be cautious – because promises of high rates of return are often red flags for fraud.”
“The FBI continues to see such investment based fraud cases that offer their investors high rates of returns with minimum or no risk. While many of the victim investors are still trying to recover financially, it is hoped that they find some solace in today’s sentencing of Mr. Maxwell to federal prison,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In March 2007, Maxwell incorporated and owned Millennium Capital Exchange, Inc. (“Millennium”), which purported to be a foreign exchange market trading firm. The foreign exchange market (or forex market) is the global market in which participants buy, sell, exchange, and speculate on currencies. The forex trading market consists of banks, commercial companies, central banks, investment management firms, hedge funds, retail forex brokers, and individual investors. Forex trading involves the trading of currencies from different countries against each other. An example of a forex trade is buying Japanese yen while simultaneously selling United States dollars. Trading in foreign exchange markets frequently exceeds $5 trillion per day.
From about 2008 to January 2012, Maxwell solicited investments from individuals across the United States with promises of high fixed rates of return to be generated from successful foreign currency trading. In particular, to obtain money from investors, Maxwell falsely stated that: (a) he possessed excellent forex trading skills; (b) he had a long history of forex trading success; (c) investors would earn an annualized rate of return on their investments from approximately 48% to 72%; (d) he used “stops” and “floors” on currency trades to insure that the gains would be large, but that the losses would be small; (e) investors had realized significant gains based on his trading; and (f) he had reserve funds that enabled him to cover any trading losses.
In fact and in truth, Maxwell: (a) had little success executing forex trades; (b) lost almost all the money that he traded in forex markets; (c) was unable to pay investors the promised investment dividends; and (d) possessed no reserve fund to cover forex trading losses.
According to Millennium’s business model, Maxwell was supposed to use the invested funds to make forex trades through accounts at a financial firm in Geneva, Switzerland. Based on his false representations, investors wired Maxwell over $2 million, expecting that the funds would be traded in the Swiss accounts. After receiving money from investors, however, Maxwell diverted approximately half of the money for other illegal purposes. First, in an effort to perpetuate the scheme and make it appear that he was a successful forex trader, Maxwell used the money received from new investors (that was supposed to be traded on the forex market) to pay “dividends” to older investors. Second, Maxwell used the money received from investors to pay his own personal living expenses. In the end, Maxwell spent or lost almost every dollar invested with him.
On March 17, 2015, Stafford S. Maxwell, 46, of Mableton, Georgia, was indicted on 10 counts of conspiratorial and substantive wire fraud. Maxwell pleaded guilty to all the charges on June 29, 2015. Maxwell was sentenced to three years, nine months in prison and was ordered to pay approximately $1,434,628 in restitution to his victims.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Miami Gardens Resident Sentenced in Stolen Identity Tax Refund Fraud Scheme Involving Identities from the Florida Department of Children and Families DatabaseRead the Press Release
A Miami Gardens resident was sentenced today to 30 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $64,557 for his participation in a stolen identity tax refund fraud scheme involving personal identification information taken from the State of Florida Department of Children and Families database.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Kyron Jonathan Nedd, 22, of Miami Gardens, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Code, Section 1028A(a)(1).
According to court documents, between February 1, 2014 and July 18, 2014, fraudulent federal income tax returns for tax year 2013 were filed with the IRS from Nedd’s residence in Miami Gardens. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.
Court documents state that on February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (PII) - names, dates of birth and social security numbers - of hundreds of individuals. Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (DCF) database. IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts were used in fraudulent returns filed from Nedd’s residence.
According to court documents, federal law enforcement agents interviewed Nedd after serving the federal search warrant. Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and prepared without the taxpayers’ permission.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Man Convicted in Alien Smuggling Case that Resulted in a DeathRead the Press Release
McALLEN, Texas – A 31-year-old man from Mexico has admitted he knowingly transported an illegal alien within the United States for private financial gain, announced U.S. Attorney Kenneth Magidson. As part of the plea, Victor Manuel Moreno-Ruiz, also admitted that during the course of the illegal conduct, a female illegal alien died.
During his plea today, Moreno admitted that on Aug. 4, 2014, he served as a foot guide responsible for smuggling a group of undocumented aliens into the United States. He instructed them how to walk along the side of the bridge and how to scale down from the bridge at the Pharr Port of Entry. In the process of crossing the bridge, a female illegal alien fell off the bridge and sustained severe injuries. As part of his plea, Moreno admitted that he left the injured woman behind and continued to smuggle the remaining members of the group.
The next day, law enforcement officers discovered the deceased body of the female victim. An autopsy revealed that she had died as a result of blunt force trauma due to a fall.
U.S. District Judge Micaela Alvarez accepted the plea and has set sentencing for Nov. 12, 2015. At that time, he faces up to life in federal prison and a possible $250,000 fine.
The charges were the result of an investigation conducted by Homeland Security Investigations with assistance by Border Patrol, Pharr Police Department and Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Kimberly Ann Leo and Alex Benavides are prosecuting the case.
Local Physician and Clinic Sentenced on Health Care Related ChargesRead the Press Release
St. Louis, MO – DR. MEL E. LUCAS and PATTERSON MEDICAL CLINIC, INC. were sentenced for receipt of misbranded drugs and false statement charges respectively. Both were sentenced to three years of probation.
In addition, Dr. Lucas and Patterson Medical Clinic entered into a civil settlement agreement with the United States to resolve allegations that they submitted false claims for payment to Medicare and TRICARE. Pursuant to that agreement, they have repaid the United States $185,799.
According to court documents, Patterson Medical Clinic Inc., owned by Dr. Mel E. Lucas, made false statements in patient files in connection with the delivery of health care services. Specifically, the clinic made entries on treatment forms so that the forms purported to represent that a physical exam had taken place on the date therein when no such exam had in fact taken place.
With respect to the misbranded drugs charge, according to court documents, from April 2009 to September 2011, Dr. Lucas repeatedly purchased Aclasta, a non-FDA approved drug used for the treatment of osteoporosis, online from two Canadian companies, Canada Health Solutions and Global Health Supplies. Dr. Lucas paid about $749 for each bottle of Aclasta, which was several hundred dollars less than the price of a bottle of Reclast, which is an FDA- approved drug also used to treat osteoporosis. The bottles of Aclasta had Italian and Turkish language on them, which was a clear indication that the drug was not intended for use in the United States.
Lucas, Chesterfield, MO, pled guilty in May to receipt in interstate commerce of misbranded prescription drugs. Patterson Medical Clinic, Inc., pled guilty in May to false statements related to health services. Both appeared today for sentencing before United States District Judge Henry Autrey. Co-defendant Robyn Levy also pled guilty in May to receipt in interstate commerce of misbranded prescription drugs. She is scheduled to appear for sentencing later this month.
This case was investigated by the Department of Health and Human Services-Office of Inspector General and the FBI. Assistant United States Attorneys Reginald Harris and Suzanne Moore handled the case for the U.S. Attorney’s Office.