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14 October 2015
Rochester Man Pleads Guilty to Sex Trafficking A MinorRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Matthew DiFlorio, 28, of Rochester, NY, pleaded guilty to enticement of a minor using a means and facility of interstate commerce before U.S. District Judge Elizabeth A. Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life in prison and a $250,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in June 2015, the mother of a thirteen year old minor advised the Rochester Police Department that her child had been communicating with two men. According to the mother, one of the two men, DiFlorio, was working as a Lifetouch school photographer and the mother had, at one point, attempted to contact DiFlorio to tell him to stay away from her child. According to the minor, the minor had communicated with the defendant using the application “Kik” and ended up meeting him in February 2015.
After taking over the minor’s phone, law enforcement officers received a text message from DiFlorio on June 22, 2015. An officer, assumed the minor’s identity and engaged in texts with DiFlorio. The two arranged a meeting for June 23, 2015 at a local fast food restaurant. The defendant arrived at the meeting and was confronted by law enforcement officers. DiFlorio admitted to having had sex with the minor and admitted to engaging in communications with the minor through text messages in order to meet.
The plea is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes members of the FBI, the Rochester Police Department, the Monroe County Sheriff’s Office, Immigration and Customs Enforcement, Homeland Security Investigations, and the Monroe County District Attorney’s Office.Sentencing is scheduled for January 19, 2015, before Judge Wolford.
Rochester Man Pleads Guilty to Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Matthew DiFlorio, 28, of Rochester, NY, pleaded guilty to enticement of a minor using a means and facility of interstate commerce before U.S. District Judge Elizabeth A. Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life in prison and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in June 2015, the mother of a thirteen year old minor advised the Rochester Police Department that her child had been communicating with two men. According to the mother, one of the two men, DiFlorio, was working as a Lifetouch school photographer and the mother had, at one point, attempted to contact DiFlorio to tell him to stay away from her child. According to the minor, the minor had communicated with the defendant using the application “Kik” and ended up meeting him in February 2015.
After taking over the minor’s phone, law enforcement officers received a text message from DiFlorio on June 22, 2015. An officer, assumed the minor’s identity and engaged in texts with DiFlorio. The two arranged a meeting for June 23, 2015 at a local fast food restaurant. The defendant arrived at the meeting and was confronted by law enforcement officers. DiFlorio admitted to having had sex with the minor and admitted to engaging in communications with the minor through text messages in order to meet.
The plea is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes members of the FBI, the Rochester Police Department, the Monroe County Sheriff’s Office and the Gates Police Department and the Monroe County District Attorney’s Office.Sentencing is scheduled for January 19, 2015, before Judge Wolford.
Rochester Man Pleads Guilty to Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ricky Knox, 28, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to bank robbery. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on April 10, 2015, Knox robbed the Chase Bank Branch located at 1 Rochester Street in Scottsville, NY. The defendant, who was wearing dark pants, a baseball hat, and a black hooded sweatshirt with the hood up, approached the teller window and stated that he wanted to make a withdrawal. The teller asked Knox to use his debit card to initiate the transaction. Knox responded no and placed his right hand up on the counter. At that time the teller noted that Knox was wearing clear latex gloves. The defendant then demanded the teller “put 50’s and 100’s up on the counter” and to hurry. The teller placed money on the counter which Knox used his gloved hand to pick up and then fled from the bank on foot.On April 15, 2015, Knox was arrested in Louisiana and brought to the Western District of New York to face the robbery charges.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn.
Sentencing is scheduled for January 19, 2016, at 4:00 PM before the Honorable Elizabeth A. Wolford.
Richard Borden Sentenced to 18 Months After Conviction for Failure to Register as A Sex OffenderRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Richard Borden, 37, was sentenced today in U.S. District Court in Burlington after his conviction for traveling across state lines and failing to register or update his registration as a sex offender. U.S. District Judge William K. Sessions III sentenced Borden to an 18-month term of imprisonment to be followed by a 5-year period of supervised release.
Borden was convicted of sexual assault in 2000 in Bennington County, a crime for which he received a sentence of 4-20 years’ imprisonment. Borden served 14 years in custody in that case. Approximately three weeks after his release from state custody in summer 2014, Borden was arrested for failure to comply with Vermont’s sex offender registry law. In November 2014, Borden was charged federally with a violation of the Sex Offender Registration and Notification Act (SORNA), after it was learned that Borden had been residing for several weeks in Hoosick Falls, New York, without notifying Vermont or New York authorities as required by law. Under federal law, an individual required to register under SORNA generally must register or update his registration as a sex offender whenever he travels interstate.
This matter was investigated by the United States Marshals Service, with the assistance of the Bennington Police Department, the Vermont State Police, the Vermont Department of Corrections, and the Hoosick Falls, New York Police Department. The United States was represented by Assistant U.S. Attorney Kevin J. Doyle. Borden was represented by Elizabeth Quinn, Esq. and Steven Barth, Esq. of the Federal Defender’s Office.
Reinbeck Man Pleads Guilty to Child Pornography OffensesRead the Press Release
A man who received and possessed child pornography pled guilty on October 13, 2015, in federal court in Cedar Rapids.
Michael Cottrell, age 43, from Reinbeck, Iowa, was convicted of one count of receipt of child pornography and one count of possession of child pornography. At the plea hearing, Cottrell admitted that, between 2012 and 2014, he knowingly received child pornography and possessed it on his computer.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Cottrell remains in custody of the United States Marshal pending sentencing. Cottrell faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-82.
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Reality TV Performer Charged with Defrauding Bankruptcy Court by Hiding Assets and Lying about IncomeRead the Press Release
PITTSBURGH - A reality television performer has been indicted by a federal grand jury in Pittsburgh on charges of bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations, United States Attorney David J. Hickton announced today.
The 20-count indictment, returned on Oct. 13, named Abigale Lee Miller, 50, as the sole defendant.
“Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court,” said U.S. Attorney Hickton.
“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons, but allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it. We take our responsibility to pursue allegations of bankruptcy fraud seriously,” said Special Agent in Charge Scott S. Smith of the Federal Bureau of Investigation’s Pittsburgh Division.
“Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts the creditors and American Taxpayers,” added Internal Revenue Service Criminal Investigation Special Agent in Charge Akeia Conner. “Concealing assets from the Court and not paying taxes is a gross violation of civic duty and IRS Criminal Investigation will work diligently with our law enforcement partners to pursue those who do so.”
“The investigation of Abigale Lee Miller demonstrates our commitment to identify and prosecute those who commit bankruptcy fraud,” stated Acting Inspector in Charge, David McGinnis, of the U.S. Postal Inspection Service - Pittsburgh Division.
According to the indictment, after filing a Petition to Reorganize her dance studio in December, 2010, Miller then schemed to defraud the bankruptcy court by concealing income she earned between 2012 and 2013 from her performances on the reality TV show “Dance Moms” and related spinoff TV shows, as well as from Masterclass dance sessions and merchandise and apparel sales. The indictment alleges that Miller created bank accounts to hide the income, and instructed others to conceal certain income from the bankruptcy court and Trustee. It is also alleged that Miller made numerous false declarations in monthly operating reports which did not report certain income or underreported certain other business income. The indictment further alleges Miller concealed income totaling approximately $755,492.85 from the Trustee and creditors, and gained favorable terms to restructure debt from her fraudulent acts.
The law provides for a total sentence of five years in prison, and a fine of $250,000 or both for each count of the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Trustee, the Federal Bureau of Investigation, the United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
AttachmentsIndictment
Princeton man sentenced to 27 months in Federal prison on drug chargeRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced that Scotty Edward Blankenship was sentenced in federal court in Bluefield yesterday to 27 months in federal prison for using a telephone to facilitate the sale of hydromorphone. Blankenship, 54, of Princeton, pled guilty in June of 2015, admitting that on October 17, 2014, he used a telephone to set up a drug deal, and that shortly after that conversation he sold two hydromorphone pills to an informant. Blankenship also admitted that he distributed ten additional pills during the course of the investigation.
The case was investigated by the Southern Regional Drug and Violent Crime Task Force under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Postal Employee Charged with Obstruction of the MailRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a United States Post Office Employee has been charged with obstruction of the mail.
According to United States Attorney Peter Smith, Bruce J. Kizer, age 37, of Taylor, Pennsylvania, is charged in a Criminal Information filed on October 9, 2015 in the United States District Court in Scranton with Obstruction of Mail. The charge is based upon Kizer’s alleged conduct involving theft of United States currency contained in greeting cards entrusted to him for delivery to customers on his mail route in Scranton. The amount of loss is approximately $500. The thefts are alleged to have occurred from May through June 2014.
Kizer has resigned from his employment with the United States Post Office.
Kizer is scheduled for his initial appearance before U.S. Magistrate Judge Joseph F. Saporito, Jr. on October 29, 2015 in Wilkes-Barre.
The case was investigated by the United States Postal Service, Office of Inspector General. The defendant is being prosecuted by Assistant United States Attorney Michelle Olshefski.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing guidelines.
In this case, the maximum penalty under federal law is 6 months imprisonment and a $5,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Portsmouth Man Sentenced to 40 Years in Prison for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – Jason Marvin Saunders, 33, of Portsmouth, was sentenced today to 480 months in prison for drug conspiracy and gun crimes, including conspiracy to distribute heroin, cocaine, and cocaine base, and possession of firearms in furtherance multiple drug trafficking crimes. Saunders’ twin brother and co-conspirator, Jeremy Lynn Saunders, pleaded guilty to drug conspiracy and firearms charges, and was sentenced to 25 years in prison on June 25, 2015.
Saunders was convicted by a federal jury on July 2, 2015. According to court records and evidence at trial, from January 2012 to about August 2014, the Saunders brothers jointly distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that they managed and used firearms to protect. On Aug. 23, 2014, Saunders and his brother were involved in an exchange of gunfire with a rival drug organization outside a location they operated on Appomattox Avenue in Portsmouth. In response to that incident, Saunders possessed a Taurus PT 145 Millennium Pro .45 Caliber pistol with 8 cartridges and a Ruger P85 9MM pistol. During the execution of a search warrant on Feb. 6, 2014, at a different location, Saunders was found with approximately 125 grams of cocaine powder, 50 grams of heroin, 16 grams of crack cocaine, scales, packaging materials, cutting agents, a Makarov Special Edition .380 Caliber semi-automatic pistol with 8 cartridges, a Rohm RG10 .22 Caliber revolver, and thousands of dollars in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Joseph DePadilla and Andrew Bosse prosecuted the case.
The case was investigated by the DEA’s Norfolk Office with the assistance of the Portsmouth Police Department as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr2.
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Pike County Man Charged with Bankruptcy FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Pike County man has been indicted by a grand jury in Harrisburg on multiple bankruptcy fraud and false statement charges.
According to United States Attorney Peter Smith, the Indictment alleges that Daniel Wise, age 55, filed three successive Chapter 13 bankruptcy petitions in the U.S. Bankruptcy Court in Middle District of Pennsylvania between August 2012 and November 2012 and that Wise failed to disclose his ownership of a $2.4 million promissory note in all three petitions. The Indictment also alleges that Wise failed to disclose the fact he was actively engaged in litigation over the $2.4 promissory note in the State of New York at the time he filed his petitions. All three bankruptcy petitions were eventually dismissed by the Bankruptcy court by March 2013.
If convicted, WISE could be sentenced to a maximum of five years imprisonment and a fined $100,000 on each count.
The case was investigated by the Scranton Office of the FBI and is being prosecuted by Assistant US Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Philadelphia Man Charged with Theft of Government FundsRead the Press Release
William Young, Jr., 71, of Philadelphia, Pennsylvania, was charged by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for his father, after his father’s death in May 2008 until April 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $36,189.
If convicted, the defendant faces a term of in prison, a three‑year period of supervised release, restitution to the government of $36,189, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian Man Pleads Guilty to Threatening and Defrauding Spanish-Speaking Consumers through Call CentersRead the Press Release
A resident of Lima, Peru, who was charged with operating call centers that lied to and threatened Spanish-speaking victims in the United States, pleaded guilty today to conspiracy to commit mail fraud, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Cesar Luis Kou Reyna, 40, pleaded guilty in U.S. District Court for the Southern District of Florida in Miami to charges that he controlled call centers in Peru that falsely told Spanish-speaking victims across the United States that they owed debts and threatened legal consequences for failure to pay the alleged debts.
The announcement was made by Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Inspector in Charge Ronald J. Verrochio of the USPIS Miami Division.
“The threats made by the defendant’s call centers harassed and intimidated Spanish-speaking victims across the United States,” said Principal Deputy Assistant Attorney General Mizer. “As this case and other recent examples show, we will track down those responsible for defrauding and threatening American consumers, no matter where the fraudster resides, what language the fraudster speaks or which population he or she targets.”
“The U.S. Postal Inspection Service’s investigations have no borders when it comes to investigating crimes committed in the United States or on American victims,” said U.S. Postal Inspector in Charge Verrochio. “Postal Inspectors will track down criminals, anywhere in the world, and bring them to justice.”
Kou Reyna owned and controlled a corporation, Fonomundo FC, which operated call centers in Peru and payment and fulfilment operations in Miami. Fonomundo FC and its affiliated call centers used Internet-based telephone calling services to place cold calls to Spanish-speaking residents in the United States. The callers falsely claimed to be attorneys and said that victims had failed to pay for or receive a delivery of products, although the victims had not ordered these products.
The callers claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment or deportation. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these threats.
Kou Reyna was originally charged by criminal complaint and was arrested by USPIS at a Houston airport on July 30 while he was traveling in the United States. He has remained incarcerated since his arrest and was indicted on Aug. 27.
Principal Deputy Assistant Attorney General Mizer commended USPIS for its investigative efforts and thanked the U.S. Attorney’s Office of the Southern District of Florida for its contributions to the case. The case is being prosecuted by Trial Attorneys Phil Toomajian and Stephen T. Descano of the Civil Division’s Consumer Protection Branch.
Palm Beach County Man Pleads Guilty to Wire Fraud and Criminal Contempt ChargesRead the Press Release
A Palm Beach County man pled guilty today to wire fraud and criminal contempt charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
David Lee Ortiz, 39, pled guilty today to charges of telemarketing wire fraud, in violation of Title 18, United States Code, Section 1343; and contempt of court, in violation of Title 18, United States Code, Section 401(3).
Sentencing for Ortiz is scheduled for December 2, 2015, before United States District Judge Robin L. Rosenberg in Fort Pierce. At sentencing, Ortiz faces a maximum statutory sentence of twenty years in prison on the wire fraud count, and, a maximum sentence of life in prison on the contempt of court count.
According to statements made in court and documents filed in the case, Ortiz committed online and telemarketing fraud in the form of fraudulent foreign exchange (forex) investment scams, via internet and email, among other means. Ortiz collected from his victims approximately $420,000 through fraudulent websites and advertisements offering 10% per month returns on forex contracts and currency trades. Ortiz represented that investor funds would be kept in individual investor accounts for his clients, but they were in fact aggregated and commingled. He invested some of the money with losing forex positions at two licensed Futures Commission Merchants. The remainder of the money he diverted to his own personal uses. To attract investors, Ortiz established Internet websites. In July 2008, he set up “forexisgreatfor.me,” on which he falsely claimed to have over thirty years in forex trading experience, as well as that he was registered with the Securities and Exchange Commission. In October 2009, he also established the website “forexfuturestrader.com,” again falsely claiming to provide daily updates accessible online for individualized investor accounts, as well as promising 100% returns within 12 months.
Ortiz misappropriated at least $232,000 by, for example, using the funds for personal shopping at retail department stores, travel, resort hotels, restaurants, utility bills, personal credit cards and car payments, and by sending, or having some customers send their funds directly, to Ortiz’s wife and her business, who also did not use those funds for forex trading. Over the period of 2008-2011, Ortiz solicited and took investment from clients, variously placing the monies in accounts he personally controlled, investing some of it in losing forex trades, and mostly spending the remainder on himself. Ortiz concocted false account statements purporting to show the clients that they were making profits on imaginary forex contracts placed for them by Ortiz. When customers tried to recover all or part of their monies, usually in accordance with withdrawal provisions of a written contract which Ortiz had them sign, they regularly met evasion or delay from Ortiz.
The Commodity Futures Trading Commission (CFTC) investigated Ortiz, and filed a civil enforcement action against him in the Southern District of Florida in February 2011. The CFTC sought Court orders directing rescission of the investment contracts and return to the investors of all their monies. Chief United States District Judge K. Michael Moore signed a permanent injunction against Ortiz on June 30, 2011, directing Ortiz to return the investors’ money and rescind all the investment contracts. The injunction also forbade Ortiz from soliciting or accepting funds from any future investors.
During July and August 2011, Ortiz nonetheless continued to solicit and accept funds from investors. In particular, he met with and took $2,800 from a retired Air Force employee living in Odessa, Texas. Twice in September 2011, Ortiz emailed to that investor false account statements purporting to show gains and profits from forex trades. The CFTC filed a motion for civil contempt against Ortiz for his failure to abide by the permanent injunction entered by Chief Judge Moore in the civil case. On June 4, 2012, Chief Judge Moore held an evidentiary hearing on the civil contempt motion, at which Ortiz appeared pro se. Following the hearing, the CFTC filed a joint proposed agreed order (which the Court approved and entered on June 6, 2012) setting forth a timetable for Ortiz to submit a sworn accounting and repayment of monies, no later than August 6, 2012. On August 6, 2012, Ortiz filed a document with the Court, stating that he had received the $2800 from the Texas investor, but that Ortiz was unable to comply and pay any monies to the aggrieved investors.
A federal grand jury sitting in Fort Pierce, Florida, indicted Ortiz on February 19, 2015, charging him with three counts of wire fraud and one count of criminal contempt of court for his actions.
Mr. Ferrer commended the investigative efforts of the CFTC, FDLE, FBI, and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
Owner and Operator of Miami-Based Mental Health Centers Pleads Guilty in $70 Million Health Care Fraud SchemeRead the Press Release
Clinical Director and Therapist Also Plead Guilty
An owner, a clinical director, and a therapist pleaded guilty today for their roles in a health care fraud scheme involving three Miami-based mental health centers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Santiago Borges, 51, Erik Alonso, 45, and Cristina Alonso, 43, all of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida. Borges pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. Erik Alonso pleaded guilty to conspiracy to commit health care fraud and conspiracy to make false statements relating to health care matters. Cristina Alonso pleaded guilty to conspiracy to commit health care fraud and conspiracy to make false statements relating to health care matters.
Borges owned the now-defunct mental health centers R&S Community Mental Health Inc. (R&S) and St. Theresa Community Mental Health Center Inc. (St. Theresa), and was an investor in New Day Community Mental Health Center LLC (New Day). Erik Alonso was the clinical director of all three centers. Cristina Alonso was a therapist at R&S.
R&S, St. Theresa and New Day were community mental health clinics that purported to provide intensive mental health services to Medicare beneficiaries in Miami. In connection with their guilty pleas, the defendants admitted that, from 2008 through 2010, the clinics billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients. Borges admitted that he paid kickbacks to patient recruiters who, in exchange, referred beneficiaries to the centers. Erik Alonso admitted that he oversaw the preparation of false patient records. Cristina Alonso admitted that she fabricated patient records, including group therapy session notes that were used to support claims for reimbursement from Medicare.
According Borges’ plea agreement, between January 2008 and December 2010, the centers submitted more than $70 million in false and fraudulent claims to Medicare. Medicare paid approximately $28 million on those claims.
The case is being investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Borges Plea Agreement
Borges Factual Basis
Cristina Alonso Indictment
Cristina Alonso Factual Basis
Niagara Falls Man Sentenced on Child Pornography Charge and Violating Supervised ReleaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Michael Weaver, 40, of Niagara Falls, NY, who was convicted of possession of child pornography and violation of supervised release, was sentenced to 123 months in prison by U.S. District Judge Richard J. Arcara.
Special Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that Weaver was previously convicted in October 2007 of possession of child pornography for being in possession of approximately 16,000 images and 153 videos of child pornography. The defendant was sentenced to 78 months and five years supervised release. Weaver was released and placed on supervised release on August 30, 2013.One condition of his supervised release prevented the defendant from possessing cellular telephones without the authorization of the U.S. Probation Department. On December 16, 2014, during a routine visit, probation officers found Weaver had two unauthorized cellular telephones. The defendant admitted that he got the phones in order to download images of child pornography. A forensic examination found that the phones contained 1500 images and 20 videos of child pornography. Many of the images were of prepubescent children under the age of 12 that depicted violence between adults and the children.
The sentencing is the result of an investigation by United States Probation Department, under the direction of Anthony SanGiacomo and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
New York Jeweler Guilty of Laundering Money from Richmond Jewelry HeistsRead the Press Release
NEWPORT NEWS, Va. – Slavik Hayimov, aka Steve Hayimov, 44, of Queens, New York, pleaded guilty today to charges related to laundering the proceeds of a sophisticated jewelry theft ring.
In a statement of facts filed with the plea agreement, Hayimov conspired with a jewelry theft ring that was based in Richmond. The thieves regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then followed their targets to their hotels or homes. In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threatened the victims at knife-point and would steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. The theft ring ultimately stole more than $5 million in jewelry from victims in Virginia and at least six other states.
According to court documents, after a successful robbery members of the ring would travel to New York to sell the merchandise to Hayimov. Knowing that the merchandise was stolen, Hayimov paid far less than fair market value for the jewelry. To conceal his and the theft ring’s activities, he paid for the stolen merchandise in cash and by making anonymous bank deposits. Members of the group used the funds provided by Hayimov to purchase investment properties and pay for expenses they incurred while committing crimes.
Hayimov was indicted by a federal grand jury on Nov. 18, 2014. He faces a maximum penalty of 20 years in prison when sentenced on Feb. 26, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Adam L. Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division are prosecuting the case.
The case was investigated by the ATF and FBI-Norfolk, with assistance from Virginia police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County, Fairfax County, and the Virginia State Police. Additional assistance was provided by police departments in Baltimore County, Maryland; Port Authority of New York and New Jersey; New York City Police Department; Rutherford Police Department, New Jersey; and Gwinnett County Police Department, Georgia. Also assisting was the Morris County, New Jersey, Prosecutor’s Office.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:12-cr-00039.
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New Orleans Man Sentenced to 12 Years in Prison for Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that COYE DOTEY, age 26, a resident of Amite, was sentenced today after pleading guilty to three counts of distributing heroin.
U.S. District Judge Martin L.C. Feldman sentenced DOTEY to a term of imprisonment of 151 months, citing the defendant’s criminal history and prior parole violations. The sentence also included a term of supervised release of three years following imprisonment and a special assessment of three hundred dollars.
According to court documents, DOTEY sold heroin in Hammond on three occasions during an undercover Drug Enforcement Administration (“DEA”) operation in June and July 2014.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
New Hartford Woman Pleads Guilty to Tax Fraud and Structuring OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANDREA M. DOBROZENSKY, 62, of New Harford, pleaded guilty yesterday in New Haven federal court to tax and structuring offenses.
According to court documents and statements made in court, between 2007 and 2009, while working as an office manager for a medical practice in Hartford, DOBROZENSKY made numerous transfers and deposits from the medical practice business bank account into her personal bank account as compensation for her services to the medical practice and untaken vacation time. During those three years, DOBROZENSKY willfully failed to provide her tax return preparer with information concerning her receipt of approximately $247,000 in additional taxable income. Each year, DOBROZENSKY signed her completed federal tax return and it was filed with the IRS. As a result, $247,000 in taxable income was not reported on DOBROZENKY’s federal tax returns for the 2007, 2008 and 2009 tax years, and she failed to pay a total of $76,750 in additional taxes owed.
DOBROZENSKY also unlawfully structured financial transactions. On November 27, 2012, DOBROZENSKY was at a branch of Farmington Bank in Avon with another person who told her to write checks in amounts below $10,000. DOBROZENSKY wrote two checks, one to herself for $9,900 and one to the person with her for $9,900. She then cashed the check payable to her and received $9,900 in cash. The person with her cashed the check payable to him and received $9,900 in cash. He later handed the $9,900 to DOBROZENSKY.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
On December 19, 2013, IRS Special Agents interviewed DOBROZENSKY at her residence. On that date, DOBROZENSKY admitted that she should have reported the additional income on her federal tax returns. She specifically stated that, on November 16, 2007, she wrote a check in the amount of $100,000 on the medical business account payable to herself, received the funds and did not report those funds on her federal tax return. DOBROZENSKY also admitted that, as to the structuring violation, the other person with her at the bank who cashed one of the $9,900 checks had advised her to keep any payments under $10,000 to avoid filling out a form.
DOBROZENSKY pleaded guilty to one count of filing a false tax return and one count of unlawfully structuring financial transactions. She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 6, 2016, at which time she faces a maximum term of imprisonment of eight years and a fine of up to $500,000. DOBROZENSKY also has agreed to pay the IRS $76,750 in taxes, plus penalties and interest, and to forfeit $9,900 related to her structuring activity
DOBROZENSKY is released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Myers Named Interim US AttorneyRead the Press Release
Acting U.S. Attorney Chris Myers Appointed Interim U.S. Attorney for North Dakota by Attorney General of the United States
Fargo North graduate to lead Federal prosecutors in North Dakota. Effective October 9, 2015, the Honorable Loretta Lynch, Attorney General of the United States, appointed Christopher C. Myers Interim United States Attorney for the District of North Dakota pursuant to 28 United States Code Section 546.
Myers is a graduate of Fargo North High School ('87) and North Dakota State University ('92). He earned his law degree and Master of Public Administration from Drake University in 1995.
Myers has been with the U.S. Attorney's office nearly 14 years. Since 2013 he has served as the First Assistant U.S. Attorney until becoming Acting U.S. Attorney on March 13, 2015. Prior to becoming an Assistant U.S. Attorney in 2002, Myers served as the Chief Assistant Clay County Attorney from 1998-2002. He has also served as an Assistant Cass County States Attorney and a Special Agent with the North Dakota Bureau of Criminal Investigation.
Procedurally, after 120 days Chief United States District Judge Ralph Erickson will determine if the appointment should continue. If approved, Myers will serve as U.S. Attorney until the President of the United States nominates a U.S. Attorney for North Dakota and the United States Senate confirms the nominee pursuant to 28 United States Code Section 541.
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Monongahela Man Unlawfully Received Social Security BenefitsRead the Press Release
PITTSBURGH - A resident of Washington County, Pennsylvania, pleaded guilty in federal court to one count of theft of government property, United States Attorney David J. Hickton announced today.
Gregory Kavalec, 69, of Monongahela, Pa., pleaded guilty to one count before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that from on or about Oct. 3, 2013, to on or about Sept. 3, 2014, Kavalec unlawfully received property of the United States, that is, OASDI Social Security benefits in the amount of approximately $17,985.
Judge Cercone scheduled sentencing for Feb. 17, 2016, at 10 a.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Judge continued the defendant on bond.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Social Security Administration-Office of Inspector General conducted the investigation leading to the indictment in this case.
Mexican National Sentenced to 25 Months in Prison for Reentry After DeportationRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Carlos Salvador Fernandez, 47, to 25 months in prison and three years of supervised release for reentering the United States after having been deported, United States Attorney Ronald W. Sharpe announced. On June 10, 2015, Fernandez pleaded guilty to reentry after deportation.
Court records show that on April 20, 2015, Fernandez presented himself for inspection at the Cyril E. King International Airport on St. Thomas prior to boarding a flight to Washington, D.C. When questioned, Fernandez claimed to be a United States permanent resident. Fernandez was referred for secondary inspection at which time he admitted that he was previously deported from the United States in February, 2006. The U.S. Secretary of Homeland Security did not give permission for him to reenter the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Nelson L. Jones.
Maryland Woman Guilty of Stealing $426,000 from EmployerRead the Press Release
ALEXANDRIA, Va. – Jennifer Xanten, 51, of Frederick, Maryland, pleaded guilty today to charges of mail fraud relating to her stealing more than 500 checks totaling approximately $426,000 out of her employer’s incoming mail.
In a statement of facts filed with the plea agreement, Xanten, an employee of a rehabilitation center in Rockville, Maryland, admitted to stealing the checks out of the center’s incoming mail from February 2014 to July 2015. To effectuate her scheme, Xanten, who was responsible for mailing out the companies’ invoices, would send out invoices to collect payment for services the center performed. One such company who received invoices was located in Chantilly. She would then intercept the incoming check payments and deposit the checks into her personal account without authorization. Xanten, who was responsible for inputting entries into the bookkeeping records, falsified entries related to the stolen checks in order to conceal her scheme.
Xanten faces a maximum penalty of 20 years in prison when sentenced on Jan. 28, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris. Assistant U.S. Attorney Jamar K. Walker is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15cr286.
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Man Who Pointed Laser at Tampa Police Department Helicopter Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Jeremy Wayne Sumpter (31, Garland, TX) to 12 months and one day in federal prison for knowingly aiming a laser at an aircraft. He pleaded guilty on March 24, 2015.
According to court documents, on February 14, 2014, aviation officers with the Tampa Police Department (TPD) were flying in a Bell 407 helicopter during aerial patrol when they observed a green light illuminate the cockpit. The officers observed the laser hit the helicopter four times. They were soon able to locate the suspect who had been standing in the middle of the roadway. As the officers turned the aircraft toward the suspect, he began to run into his residence.
TPD officers made contact with Sumpter at his front door, and observed a broken laser pointer on his coffee table. Sumpter admitted that he had been outside with a laser pointer and that there had been a helicopter in the area where he had been pointing the laser. He also stated that he had destroyed that laser because he thought he was in trouble. Several other lasers were discovered in the residence.
On Feb. 14, 2012, President Barack Obama signed the FAA Modernization and Reform Act, which modernizes the nation's aviation system. This Act establishes a new criminal offense for aiming the beam of a laser pointer at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft. The statute was enacted in response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams.
This case was investigated by Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Man Sentenced to 560 Months in Prison for Robbery and Murder of Two Department of Natural Resources Rangers in March of 2010Read the Press Release
SAN JUAN, Puerto Rico – Jonathan Ortiz-Torres was sentenced to 560 months in prison and five years of supervised release for interference of commerce by robbery, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. Ortiz-Torres pled guilty on May 27, 2014.
On February 9, 2011, Jonathan Ortiz-Torres was charged, along with Ángel Santana-Espinet and Leroy Santana-Rosado, with violations of Title 18, United States Code, Section 1951(b)(3) (interference of commerce by robbery); and Title 18, United States Code, Sections 922(j), 924(a)(2), and 2 (possession of a stolen firearm). Ortiz-Torres and Santana-Espinet were also charged with violations of Title 18, United States Code, Sections 924(c)(1)(A), 924 (j) and 2 (possession and use of a stolen firearm).
According to the superseding indictment, on March 23, 2010, the defendants, aiding and abetting each other, by force, violence and intimidation, did take one .9mm caliber Smith and Wesson Pistol from the person or presence of Rangers of the Department of Natural Resources Félix Rodríguez Gómez and Kenneth Omar Betancourt, then acting as security guards at Reparto Industrial in Río Piedras, PR, and shot and killed them. The defendants fled the scene but were later arrested by PRPD agents after a high speed chase.
Defendant Ángel Santana-Espinet pled guilty on August 21, 2012, to count two of the superseding indictment, Possession of a Stolen Firearm, and was sentenced to 380 months in prison and eight years of supervised release. Defendant Leroy Santana-Rosado plead guilty on March 24, 2014, to count one of the superseding indictment, Interference with Commerce by Threat of Violence, and was sentenced to 87 months in prison and three years of supervised release.
The case was investigated by the FBI and the Puerto Rico Police Department and was prosecuted by Assistant US Attorney Julia Díaz-Rex.
Linn Johnson Sentenced for Child PornographyRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Linn Johnson, age 40, of Michigan City, Indiana, was sentenced Thursday, October 8, 2015, in federal court by Judge Robert L. Miller,Jr. after his guilty plea to possession of child pornography.
Johnson was sentenced to 144 months’ imprisonment and 5 years supervised release.
According to documents in the case, on May 29 and 30, 2013, an undercover officer, working online, was able to download child pornography that was being shared by Johnson on the internet. On December 6, 2013, officers served a search warrant at Johnson’s residence and seized a computer that contained child pornography. His sentence was enhanced because Johnson admitted, when interviewed, to having molested a 7 year old child. Johnson has been in custody since his arrest on December 6, 2014.
This case was the result of an investigation by Federal Bureau of Investigation and Michigan City Police Department. The case was handled by the Assistant United States Attorney John M. Maciejczyk.
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Leader of Butte County Methamphetamine Trafficking Organization Sentenced to 17 Years in Federal PrisonRead the Press Release
SACRAMENTO, Calif. — Federico Sandoval Aguilar, 43, of Biggs, was sentenced today by United States District Judge Kimberly J. Mueller to 17 and half years in prison for conspiring to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Aguilar was the head of a drug trafficking organization that was responsible for distributing pound-quantities of methamphetamine on a weekly basis in Butte County. Over a four-month period in 2013, Aguilar’s organization distributed over 49 pounds of methamphetamine. Aguilar was arrested at his residence in August 2013, where law enforcement officers found 15 cellphones, five guns, and $50,000 in cash concealed within a bathroom air vent.
This case was the product of an investigation by the Drug Enforcement Administration, the Butte Interagency Narcotics Task Force (BINTF), the Butte County Sheriff’s Office, the Butte County Probation Department, the Butte County District Attorney’s Office, the California Highway Patrol, the California Department of Justice Bureau of Gambling Control, the Chico Police Department, and the United States Marshals Service. Assistant United States Attorney Justin Lee prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Kenton County Man Sentenced to 147 Months for Distributing Child Pornography over the InternetRead the Press Release
COVINGTON — A Kenton County man, who previously admitted to distributing images and videos of child pornography, through peer-to-peer files over the internet, was sentenced today to 147 months in federal prison.
U.S. District Judge Amul Thapar sentenced Alan K. Newberry, 43, of Park Hills, Ky., for distribution of child pornography and also ordered him to pay $13,500 in restitution to victims. Under federal law, Newberry must serve at least 85 percent of his prison sentence and he will be required to register as a sex offender for the remainder of his life.
According to Newberry’s plea agreement, authorities with the Kentucky Attorney General’s Office identified numerous images and videos of child pornography that had been made available for download on the internet. They traced the source of those files to Newberry’s computer, which was located at his home in Park Hills. Authorities executed a search warrant at the residence, searched his computer, and found 4,000 images and 700 videos of children engaged in sexually explicit conduct. Many of the images depicted prepubescent children and sadistic abuse.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Jack Conway, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by the Cyber Crimes Unit of the Office of the Kentucky Attorney General.
Justice Department Settles Immigration-Related Discrimination Claim Against Postal ExpressRead the Press Release
The Justice Department announced today that it has reached an agreement with Postal Express Inc., a delivery and logistics company with locations in Oregon, Washington and Idaho. The agreement resolves a charge filed with the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), claiming that the company discriminated against a non-U.S. citizen in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that Postal Express required a Lawful Permanent Resident, who is permanently work authorized by virtue of that status, to produce a particular immigration document to re-verify his employment eligibility even though the employee had already provided sufficient documentation to prove his authorization to work in the United States. Specifically, the department found that Postal Express improperly required him to present a new Permanent Resident Card (also known as a Green Card) and suspended him when he failed to do so. The INA’s anti-discrimination provision prohibits employers from making specific documentary demands or requesting unnecessary work-authorization documents based on citizenship status or national origin when verifying or re-verifying an employee’s employment eligibility.
Under the terms of the settlement agreement, the company has agreed to pay a civil penalty. The company also has agreed, among other terms, to train employees on the anti-discrimination provision of the INA and to revise company policies to avoid discrimination in the employment eligibility verification (Form I-9) process. The company reinstated the suspended employee and paid him lost wages at the start of OSC’s investigation.
“The department is committed to eliminating discriminatory barriers to employment for authorized workers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Civil Rights Division commends Postal Express for working with the division to resolve this matter. We will continue to work with employers to help implement best practices in the employment eligibility verification process.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. Trial Attorney Katherine E. Lamm investigated this matter.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Justice Department Awards Law Enforcement Hiring Grants to Help Build Trust, Reduce Violence and Protect SchoolsRead the Press Release
DALLAS — U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) funding awards to the Arlington Police Department to create, and in some cases protect, 15 law enforcement positions in the Department. More than $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including this $1,875,000 funding for the Arlington Police Department.
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community-policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
"I’m grateful to the Attorney General not only for choosing one of the largest, and most community-focused police departments in the Northern District of Texas to receive this funding, but for recognizing the importance of continuing to support law enforcement agencies as they develop creative and innovative ways to deal with community and public safety issues,” said U.S. Attorney John Parker of the Northern District of Texas.
Will D. Johnson, Chief of the Arlington Police Department, said, “Our partnership with the COPS Office is instrumental in advancing public safety in our community. Arlington is honored to be selected for the COPS Hiring Program. This grant is a positive investment and will allow us to hire 15 additional police officers.”
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.
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Judge Sentences Bedford Man to 12 Years in Prison for Possessing, Distributing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa., has been sentenced in federal court to 144 months in prison, 10 years’ supervised release and must register as a convicted sex offender under the Sex Offender Registration and Notification Act (SORNA) on his conviction of distribution and possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Wade C. Baer, 32.
According to information presented to the court, on Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct, and on March 7, 2013, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Southwest Computer Crime Task Force of the Pennsylvania State Police for the investigation leading to the successful prosecution of Baer.
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 better 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.
Illinois Man Pleads Guilty to Fraud and Assault ChargesRead the Press Release
St. Louis, MO – JASON CRIPE, formerly of Windsor, Illinois, pled guilty to a fraud scheme that criss-crossed Missouri and Illinois and spanned four years.
According to the plea agreement, Cripe admitted to assaulting the federal law enforcement officers who finally came to arrest him for his fraud scheme this past summer. Cripe pled guilty to one count of wire fraud and one count of assaulting a law enforcement officer.
With his plea, Cripe admitted to being “a con artist,” posing as a repossession agent between 2011 and 2015 and, on at least seven different occasions, falsely claiming to be authorized to sell repossessed vehicles and commercial equipment which he, in fact, did not have. After receiving a “deposit,” Cripe would simply pocket the victims’ money, often blaming delays on his purported clients, the financing companies, until the victims tired of calling.
Cripe's cases were eventually consolidated into a federal investigation by the St. Louis office of the U.S. Secret Service. After Cripe was indicted earlier this year, the Secret Service tracked him across Missouri and southern and central Illinois in an attempt to arrest him. On July 8, 2015, the Secret Service finally located Cripe at a St. Louis County gas station. When the federal agents confronted Cripe, he fought with the agents and rammed their vehicle with his before being taken into custody, where he remains.
Cripe entered his plea before United States District Judge Ronnie L. White in St. Louis. Sentencing has been set for January 13, 2016.
The maximum penalty for wire fraud is 20 years in prison and/or a fine of up to $250,000. Restitution to the defendant’s victims is also mandatory. The assault count carries a maximum penalty of one year in prison and/or a fine up to $100,000. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Secret Service, in cooperation with the St. Louis Metropolitan Police Department, the Bridgeton Police Department, the Warrenton (MO) Police Department, the Ray County (MO) Sheriff’s Department, the Shelby County (IL) Sheriff’s Department, the Monroe County (IL) Sheriff’s Department, the Fayette County (IL) Sheriff’s Department and the Macon County (IL) Sheriff’s Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
High Desert Woman Pleads Guilty in Unemployment Insurance Fraud Scheme involving Bogus Movie Production CompaniesRead the Press Release
LOS ANGELES – An Antelope Valley woman pleaded guilty this morning in a mail fraud scheme that used personal data stolen from elderly victims in an effort to defraud California’s unemployment insurance program out of nearly $300,000.
Dena Peterman, who also uses the name Dena Buttram, 32, of Littlerock, pleaded guilty to one count of conspiracy to commit mail fraud pursuant to a plea agreement filed yesterday in United States District Court.
According to the plea agreement and other court documents, over the course of two years, Peterman and her co-conspirators stole social security numbers and other personal identifying information that was used to defraud the California Employment Development Department (EDD), which administers the state unemployment insurance program. Peterman and her co-conspirators targeted senior citizens as part of the scam, obtaining social security numbers and other personal data from the elderly victims in Oregon and California by telling them that they had an opportunity to be cast in remakes of popular movies.
Peterman and her co-conspirators created bogus companies supposedly related to the movie industry with names such as Nine Maids Movie Production, Western Film Animation and High Desert Productions. Using the stolen personal information, a co-conspirator filed fictitious wage reports with the EDD and then fraudulently sought unemployment insurance benefits for the people who supposedly worked for the movie companies. The EDD subsequently provided unemployment insurance benefits in the names of these individuals through debit cards that were mailed to addresses that Peterman or her co-conspirators controlled.
As a result of this scheme, Peterman and her co-conspirators sought more than $290,000 in unemployment insurance benefits, and the EDD suffered losses of approximately $221,612.
Peterman pleaded guilty before United States District Judge Dolly M. Gee, who is scheduled to sentence the defendant on January 6.
As a result of today’s guilty plea, Peterman faces a statutory maximum penalty of five years in federal prison.
This case is the result of a joint investigation by the U.S. Department of Labor - Office of Inspector General and the California Employment Development Department.
Heroin Dealer Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich has sentenced Alexis Rodriguez (38, Kissimmee) to 15 years and 8 months in federal prison for distributing more than 100 grams of heroin. He pleaded guilty on June 29, 2015.
According to court documents, in March 2013, DEA agents began investigating Rodriguez as a supply source for cocaine and heroin. On April 4, 2013, a confidential source (CS) traveled to Tampa to meet with Rodriguez. During the meeting, Rodriguez gave the CS approximately 10 grams of a brown powder substance on consignment and requested payment at a later date. The substance tested positive for the presence of heroin.
The CS called Rodriguez three days later and informed him that he had the money for the heroin, and then made arraignments to deliver the money that morning. During that meeting, the CS provided Rodriguez with $950 for the heroin he had previously supplied. The CS informed Rodriguez that his associates were interested in purchasing additional quantities of heroin from Rodriguez, and arrangements were made for another meeting later that day. During that meeting, Rodriguez provided the CS with a plastic bag containing approximately 113 grams of a brown powder substance that also tested positive for heroin.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Harrisburg Man Indicted on Drug Trafficking and Weapons ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man has been indicted by a federal grand jury in Harrisburg on multiple firearms charges and charges involving possession and distribution of heroin and crack cocaine.
According to United States Attorney Peter Smith, Michael A. Ridgeway, age 23, of Harrisburg, was charged in a five count indictment with unlawfully possessing with the intent to distribute heroin, crack cocaine, marijuana and oxycodone on three separate occasions from January through June of 2015, and with possessing firearms in furtherance of drug trafficking on two of those occasions.
The case was investigated by the Harrisburg Office of the Bureau of Alcohol, Tobacco and Firearms and the Harrisburg Police Department. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment on each of the drug counts, a term of supervised release following imprisonment, and a fine. The maximum penalty for each of the firearms counts is life with a mandatory minimum consecutive sentence of 5 years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grundy County Gun Dealer Sentenced to 4 Years in Prison for Illegally Selling Handguns and RiflesRead the Press Release
CHICAGO ― A Grundy County gun dealer was sentenced today to 4 years in federal prison for selling nearly a dozen firearms to buyers he believed were not legally allowed to purchase the weapons.
PATRICK SEAN KEIRAN, 41, used his federal firearms license to sell eleven weapons to two buyers, one of whom was an undercover law enforcement officer who told Keiran he couldn’t pass the required background check. The other buyer was a convicted felon whose criminal history prevented him from legally purchasing the weapons. In both instances, Keiran doctored the bill of sale and the federal firearms paperwork by using the names of other customers as the purported buyers.
Keiran, who operated American’s Choice Firearms and Ammo in Gardner, pleaded guilty in April to one count of selling a firearm to a prohibited person. In addition to the 48-month prison term, U.S. District Judge Matthew F. Kennelly also imposed three years of supervised release.
“The defendant let these individuals walk out of his store with brand new firearms and no possible paper trail for law enforcement to follow if those guns were ever used for criminal purposes,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. The defendant “put his own greed above the safety of the community.”
Keiran has been a federally licensed firearms dealer since April 2013. On May 29, 2014, Keiran sold three 9mm handguns for $960 to the undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The following month, Keiran sold the undercover agent a .38-caliber revolver for $398.43, and two .22-caliber rifles for approximately $1,390. The rifle transaction was completed at Keiran’s home in Elwood because Keiran wanted to avoid the surveillance cameras in his gun shop.
On June 20, 2014, Keiran sold five 9mm handguns for $1,600 to the convicted felon, who was cooperating with law enforcement. This deal was also conducted inside Keiran’s home.
Keiran was arrested in July 2014, and his gun store was closed.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Will County Sheriff’s Police Department, the Will County Metropolitan Area Narcotics Squad (MANS), and the Grundy County Sheriff’s Department assisted in the investigation.
The government was represented by Mr. Parente.
Fugitive Arrested, Charged with Coercion, Enticement, Production of Child PornographyRead the Press Release
CINCINNATI – Cody Lee Jackson, 20, most recently of Norwood, Ohio, was charged by criminal complaint with coercion and enticement of a minor to engage in illegal sexual activity and production of child pornography. Jackson was arrested last week in Utah.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Norwood Police Chief William Kramer and Blue Ash Police Chief Paul Hartinger announced the charges, which were unsealed today.
According to court documents, investigators were contacted with the information that two females, including a minor, had previously been held against their will by Jackson, in Blue Ash, Ohio. While on electronic monitoring for charges in that case, Jackson allegedly met the minor victim in the instant case, through Facebook. Jackson arranged for a taxi to deliver the minor to his place of residence, and had sexual intercourse with her on multiple occasions.
Over time, Jackson allegedly became more controlling and would not let the victim leave his residence. He established various rules and punishments which included physical abuse.
After pleading guilty on July 31, 2015 to state charges of interference with custody, abduction and kidnapping, Jackson fled to other states including South Carolina and Texas. During that time, he allegedly threatened to kill the minor victim’s family if she did not send him sexually explicit photographs via Facebook.
Coercion and enticement of a minor to engage in illegal sexual activity carries a minimum of ten years and a maximum sentence of life in prison. Production of child pornography is a crime punishable by a range of 15 to 30 years in prison.
Jackson is also facing charges of rape, kidnapping, unlawful sexual conduct with a minor, and interference with custody, brought by the Norwood Police Department and the Hamilton County Prosecutor’s Office.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's 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 as well as to identify and rescue victims.
U.S. Attorney Stewart commended law enforcement for the cooperative investigation, and Assistant U.S. Attorney Christy Muncy who is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Owner of Edgewater Medical Center Sentenced to 21 Months for Willfully Impeding Efforts to Collect $188 Million in Civil JudgmentsRead the Press Release
CHICAGO — The former owner of Edgewater Medical Center on Chicago’s North Side was sentenced today to 21 months in federal prison for his efforts to thwart collection of more than $188 million in civil judgments.
PETER G. ROGAN lied in a federal affidavit when he denied controlling millions of dollars in a trust account in the Bahamas. He also willfully violated multiple court orders as part of a decades-long effort to protect his offshore assets from judgment creditors who had obtained more than $188 million in combined civil judgments arising from fraud during Rogan’s tenure as CEO of the now-shuttered medical center.
Rogan, 69, formerly of Valparaiso, Ind., pleaded guilty last month to one count of perjury. In addition to the 21-month prison term, U.S. District Judge Harry D. Leinenweber ordered Rogan to comply with all outstanding court orders, including orders relating to discovery and financial obligations.
“The defendant’s conduct was abundantly contemptuous and lucrative, as well as exceedingly difficult to detect, investigate, and prosecute,” Assistant U.S. Attorney Andrew S. Boutros argued in the government’s sentencing memorandum. The defendant “substantially interfered with the administration of justice.”
Rogan once owned Edgewater Medical Center and later sold it, but he continued to manage the facility through various companies he owned. The hospital, located at 5700 N. Ashland Ave., closed in 2001 amid a criminal investigation that resulted in the healthcare fraud convictions of a Rogan-owned management company, a hospital administrator and several doctors, the latter of whom performed medically unnecessary surgical procedures and treatments on unsuspecting patients.
In 2006, the United States obtained a civil judgment of $64,259,032 against Rogan for his role in Edgewater’s submission of false claims for reimbursement under the Medicare program. The following year, Dexia Crédit Local, a bank that extended credit financing to the hospital, was awarded a $124 million default judgment in a separate civil fraud suit against Rogan and his companies.
In the course of their respective proceedings against Rogan, the United States and Dexia discovered that Rogan’s Bahamian trust account was being used to hold millions of dollars in secret offshore assets. Rogan had created the trust with the help of FREDERICK M. CUPPY, an Indiana attorney, as well as another attorney described in the indictment as “Florida Lawyer.” Cuppy, formerly of Valparaiso, Ind., and now of Fort Lauderdale, Fla., pleaded guilty to a perjury charge before Judge Leinenweber. He was sentenced in 2013 to one year and a day in prison.
On Dec. 21, 2006, Rogan responded to the government’s collection efforts by filing an affidavit with the Court in which he denied that he exercised control over assets in the trust account. Rogan admitted in a plea agreement that this statement was false and misleading. Rogan also admitted that he willfully and wrongfully violated several court orders in the Dexia litigation, including lying and causing his attorneys to lie to the Court about his control over his offshore trust.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Mr. Boutros and Assistant United States Attorneys Daniel W. Gillogly, Eric S. Pruitt and Joseph A. Stewart.
Former Mercer Island Resident Pleads Guilty to Defrauding Immigrants with Promises of Legal StatusRead the Press Release
A former resident of Mercer Island, Washington, who stole more than $220,000 from immigrants with promises of immigration assistance pleaded guilty today in U.S. District Court in Seattle to Wire Fraud, announced U.S. Attorney Annette L. Hayes. DALIA IVETTE SINGH, 61, also known as Dalia Pena of Clearwater, Florida, defrauded more than 40 immigrants from the Caribbean and Latin America. SINGH charged some families as much as $36,000, claiming she had a contact in the U.S. Citizenship and Immigration Services (USCIS) who could provide the immigrants with legal status in the United States. SINGH claimed her USCIS contact ran a special program the immigrants could use to get legal status. There was no such program and no USCIS contact – SINGH made it all up to defraud the victims. Sentencing before U.S. District Judge Richard A. Jones is scheduled for January 22, 2016.
“This defendant preyed on victims whose dream was to become a U. S. citizen, said U.S. Attorney Annette L. Hayes. “Although she held herself out as someone who could help, she never did, and instead took advantage of the victims' church affiliations and networks of friends to enrich herself.”
According to records filed in the case, between 2008 and 2011 SINGH represented to various people that she could assist them with obtaining legal status in the United States. The victims were immigrants without legal status in the United States. SINGH claimed she had a contact at USCIS who could provide legal status if the victim would pay SINGH a $5,000 fee. SINGH claimed the immigration program required enrollment of a group of people, not just individuals, and so encouraged the victims to recruit more people to enroll with them. In one instance, SINGH defrauded about thirty members of a church of nearly $100,000 with her false promises.
"Those who profit by preying on vulnerable members of the immigrant community will pay a hefty price for their crimes,” said Shawn Fallah, resident agent in charge of the Office of Professional Responsibility in the Pacific Northwest. "We’re committed to safeguarding the public from scam artists and others who exploit people’s false hopes for no other reason than to enrich themselves.”
Under the terms of the plea agreement, SINGH will pay restitution of $222,900. Prosecutors will recommend 18 months in prison and SINGH will request no less than one year in prison. Judge Jones is free to impose any sentence up to the 20 year maximum allowed by law.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and Office of Professional Responsibility (OPR). The case is being prosecuted by Assistant United States Attorney Erin Becker.
Former IRS Employee Indicted for Theft of Public Funds, Conspiring to Defraud United StatesRead the Press Release
FRESNO, Calif. — A former IRS employee was arraigned Wednesday in Fresno on an indictment charging her with conspiracy to defraud the United States, theft of public funds, and unauthorized access of computer information, United States Attorney Benjamin B. Wagner announced.
On October 8, 2015, a federal grand jury returned an indictment against Maria Mora, 55, of Fresno, and her ex-husband, Uriel Perez, 51, of Spring, Texas. Both defendants were arrested Wednesday. Mora pleaded not guilty, and a status conference is scheduled for December 14, 2015. Perez was charged with five counts of theft of public funds, and he will make his initial appearance in Texas.
According to court documents, Mora, an IRS employee since 1993, conspired with Perez to defraud the United States by falsely claiming Perez’s niece as a dependent on his tax returns in order to qualify for the Earned Income Credit. Mora prepared false tax returns for Perez for tax years 2008 through 2012. When the IRS did not issue the tax refunds for the 2008, 2009, and 2010 tax years, Mora prepared and submitted forged letters allegedly from Perez’s sister, claiming that his niece was Perez’s dependent. Mora also used her position as an IRS employee to access without authority tax records of Perez’s sister and brother to further the scheme to defraud the United States and steal funds. In total, Mora and Perez stole approximately $13,000 in tax refunds from the United States.
This case is the product of an investigation by the United States Treasury Inspector General for Tax Administration. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.
If convicted, Mora faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. She will also be precluded from being hired as an IRS employee in the future. 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.
Former Chief Executive Officer of Marketing Agency Sentenced in Manhattan Federal Court for $2 Million Fraud and Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Caroline Ciraolo, Acting Assistant Attorney General of the Justice Department's Tax Division, announced today that MICHAEL J. MITROW, Jr. (“MITROW”), the former CEO and President of a pharmaceutical marketing company (the “Marketing Agency”), was sentenced to three-and-a-half years in prison for participating in a scheme to defraud the Marketing Agency in which MITROW obtained over $2 million in fraud and kickback proceeds, and for willfully failing to report that unlawful income to the Internal Revenue Service (“IRS”). MITROW pled guilty in January 2015 before U.S. District Judge Paul A. Engelmayer, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Michael Mitrow defrauded the marketing agency that he led as its CEO out of over $1 million, using it to pay personal expenses including $600,000 to fly in private jets. His fraud and his failure to report the proceeds as income resulted in a federal conviction for Mitrow. At his sentencing today, he learned that the price of his crimes is not only repayment of the ill-gotten money but also the loss of his liberty.”
Acting Assistant Attorney General Caroline Ciraolo said: “Corporate officers who engage in fraud and kickback schemes and fail to report their illegal gains are defrauding their employers and cheating honest taxpayers. The sentence handed down today sends a strong message that these individuals will be held to account for committing offenses that were made possible by violating their fiduciary obligations.”
According to the Indictment and Superseding Information previously filed in Manhattan federal court, other court filings, and statements made during the proceedings in this case:
MITROW was the CEO and President of the Marketing Agency from 1998 through approximately 2009. From approximately 2008 through 2009, MITROW defrauded the Marketing Agency by submitting fraudulent invoices for consulting services that were purportedly provided to the Marketing Agency but were, in fact, never provided. Instead, Mitrow used the proceeds from those invoices to fund more than $600,000 in private jet travel. MITROW further defrauded the Marketing Company by causing it to pay $415,000 that was ultimately provided to a relative of MITROW and his co-defendant and brother, Matthew Mitrow, despite the representations made by the Mitrows to a private equity firm that acquired the company that the relative had severed all ties to the company. In addition, MITROW willfully failed to report to the IRS his income from the fraudulent consulting invoices, which exceeded $600,000; $1.4 million in kickback payments he received from Creative Press and East Coast Vending, printing and direct mail marketing companies owned by co-defendant Robert Madison and located in Phoenix, in order to help grow the business through additional printing and direct mailing contracts for Creative Press with his company; and more than $200,000 in personal purchases that Mitrow made with his corporate credit card and fraudulently coded as business expenses of the company.
* * *
MITROW, 48, of Whitehouse Station, New Jersey, pled guilty to one count of conspiracy to commit wire fraud and one count of tax evasion. In addition to the prison term, MITROW was sentenced to three years of supervised release and 200 hours of community service in each of those years. He was also ordered to pay restitution in the amount of $83,219 to the IRS and $1,468,259.43 to the Marketing Agency.
Matthew Mitrow, 42, of Westfield, New Jersey, previously pled guilty to one count of filing a false tax return for the 2008 tax year, and was sentenced in July 2015 to three months in prison. As part of his plea agreement with the Government, Matthew Mitrow paid restitution of $30,822 to the IRS.
Robert Madison, 44, of Henderson, Nevada, pled guilty to one count of conspiracy to commit honest services fraud in the payment of undisclosed kickbacks to the Mitrow brothers, and was sentenced in May 2015 to 18 months in prison and 18 months of home confinement. As part of his plea agreement with the Government, Madison will be subject to an order of restitution in an amount to be determined by the Court.
Mr. Bharara thanked the Internal Revenue Service - Criminal Investigations and the United States Postal Inspection Service for their outstanding investigative work in this case. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Andrew Young and Department of Justice Tax Division Senior Litigation Counsel Nanette L. Davis are in charge of the prosecution.
Former CEO of Marketing Agency Sentenced to Prison for $2 Million Fraud and Kickback SchemeRead the Press Release
The former CEO and president of a pharmaceutical marketing company was sentenced to three and one half years in prison for participating in a scheme to defraud the company in which he obtained more than $2 million in fraud and kickback proceeds, and for willfully failing to report that unlawful income to the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Preet Bharara of the Southern District of New York.
Michael J. Mitrow Jr., 48, of Whitehouse Station, New Jersey, was sentenced to serve 42 months in prison to be followed by three years of supervised release and 200 hours of community service in each of those years. He was also ordered to pay $83,219 in restitution to the IRS and $1,468,259.43 to Access Communications. In January 2015, Mitrow pleaded guilty to one count of conspiracy to commit wire fraud and one count of tax evasion before U.S. District Judge Paul A. Engelmayer of the Southern District of New York, who also imposed today’s sentence.
“Corporate officers who engage in fraud and kickback schemes and fail to report their illegal gains are defrauding their employers and cheating honest taxpayers,” said Acting Assistant Attorney General Ciraolo. “The sentence handed down today sends a strong message that these individuals will be held to account for committing offenses that were made possible by violating their fiduciary obligations.”
“Michael Mitrow defrauded the marketing agency that he led as its CEO out of over $1 million, using it to pay personal expenses including $600,000 to fly in private jets,” said U.S. Attorney Bharara. “His fraud and his failure to report the proceeds as income resulted in a federal conviction for Mitrow. At his sentencing today, he learned that the price of his crimes is not only repayment of the ill-gotten money but also the loss of his liberty.”
According to the indictment and superseding information previously filed in Manhattan federal court, other court filings and statements made during the proceedings in this case:
Mitrow was the CEO and president of the company from 1998 through approximately 2009. From approximately 2008 through 2009, Mitrow defrauded the company by submitting fraudulent invoices for consulting services that were purportedly provided to the company but were, in fact, never provided. Instead, Mitrow used the proceeds from those invoices to fund more than $600,000 in private jet travel. Mitrow further defrauded the company by causing it to pay $415,000 in payments by the company to a relative of Mitrow and his co-defendant and brother, Matthew Mitrow, despite the representations made by the Mitrows to a private equity firm that acquired the company that the relative had severed all ties to the company. In addition, Mitrow willfully failed to report to the IRS his income from the fraudulent consulting invoices, which exceeded $600,000; $1.4 million in kickback payments he received from Creative Press and East Coast Vending, printing and direct mail marketing companies owned by co-defendant Robert Madison and located in Phoenix, in order to help grow the business through additional printing and direct mailing contracts for Creative Press with his company; and more than $200,000 in personal purchases that Mitrow made with his corporate credit card and fraudulently coded as business expenses of the company.
Matthew Mitrow, 42, of Westfield, New Jersey, previously pleaded guilty to one count of filing a false tax return for the 2008 tax year, and was sentenced in July 2015 to serve three months in prison. As part of his plea agreement with the government, Matthew Mitrow paid $30,822 in restitution to the IRS.
Robert Madison, 44, of Henderson, Nevada, pleaded guilty to one count of conspiracy to commit honest services fraud in the payment of undisclosed kickbacks to the Mitrow brothers, and was sentenced in May 2015 to serve 18 months in prison and 18 months of home confinement. As part of his plea agreement with the government, Madison will be subject to an order of restitution in an amount to be determined by the court.
Assistant Attorney General Ciraolo and U.S. Attorney Bharara thanked the IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated this case, and Assistant U.S. Attorney Andrew Young of the Southern District of New York and Senior Litigation Counsel Nanette L. Davis of the Tax Division, who are prosecuting this case. The U.S. Attorney’s Office of the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling this case.
Former Bakersfield Real Estate Developers Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Three Bakersfield residents were sentenced Tuesday by Senior United States District Judge Anthony W. Ishii in connection with a mortgage fraud scheme in Bakersfield, United States Attorney Benjamin B. Wagner announced.
Eliseo Jara Jr., 36, was sentenced to six and a half years in prison for conspiracy to commit bank fraud, mail fraud, and wire fraud, and was ordered to pay $4.3 million in restitution. Sergio Jara, 34, was sentenced to six and a half years in prison for conspiracy to commit bank fraud, mail fraud, and wire fraud, and was ordered to pay $3,249,624 in restitution. Melissa Rochelle Jara, 34, was sentenced to time served and five years on supervised release for wire fraud, and was ordered to pay $271,171 in restitution. The Jaras were also ordered to forfeit their interests in six properties in Bakersfield, a 2007 Lexus, and approximately $110,419 seized from a bank account, and to pay personal forfeiture money judgments of $5,664,250 as to Eliseo Jara, $4,743,500 as to Sergio Jara, and $534,750 as to Melissa Jara. Prior to sentencing, Sergio and Melissa Jara also deposited approximately $148,000 with the Court toward their restitution obligations.
According to court documents, from 2007 to 2010, the Jaras conspired with other defendants to use straw buyers to purchase residential properties in Bakersfield developed by Jara Brothers Investments (JBI), owned by Eliseo Jara and Sergio Jara, and Pershing Partners LLC, owned by co-defendant Lucia Chavez. The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers from lenders based on false and fraudulent loan applications. Eliseo Jara and Sergio Jara owned and operated JBI, Paragon Home Mortgage, and Paragon Realty, and developed and sold residential real properties in the Bakersfield area using these companies. Melissa Jara was employed as a real estate broker at Paragon Realty and also owned and operated a limited liability company through which she sold a real property in furtherance of the scheme to defraud.
The loan applications in the names of straw buyers frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded certain of the straw buyers’ down payments. The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that straw buyers had high bank account balances, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from straw buyers’ landlords, false pay stubs, and false verifications of employment.
This case is the product of an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff and Henry Z. Carbajal III prosecuted the case.
Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014 to 46 months in prison, and co-defendant Arlene Jeanette Mojardin was sentenced on May 18, 2015 to 30 months in prison, for their roles in the conspiracy. Co-defendants Lucia Chavez, Joseph Chavez, and Candace Gonzales previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and their sentencing hearings are set for October 19, 2015, as to Lucia and Joseph Chavez, and October 26, 2015, as to Candace Gonzales. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is also set for October 26, 2015.
Federal Indictment Returned Against Two Individuals Involving Two Drug-Related HomicidesRead the Press Release
St. Louis, MO – Two area men have been indicted on charges involving two drug-related homicides occurring in the City of St. Louis.
The indictment charges TERRANCE WILSON and DONALD STEWART for their involvement in the March 26, 2010, murder of Michael McGill, and the July 23, 2010, murder of Darrion Williams, Jr. Both were in connection with drug trafficking crimes. The indictment was returned September 23rd, but remained sealed until the arrest of Donald Stewart last week.
Wilson and Stewart were each indicted on two felony counts of possession of a firearm (with death resulting) in furtherance of a drug-trafficking crime. If convicted, these charges carry penalties that include possible life sentences of imprisonment.
"This is an example of the outstanding collaboration between the St. Louis Metropolitan Police Department, the U.S. Attorney's Office and our regional partners as we find new methods to combat violent crime in the City of St. Louis," said Chief Sam Dotson.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted as part of the Mission SAVE Initiative. Mission SAVE (Strike Against Violence Early) was initiated to reduce violence in the St. Louis area. The hybrid task force is a collaboration between the Federal Bureau of Investigation-St. Louis Division, Drug Enforcement Administration-St. Louis Division, U.S. Attorney’s Office for the Eastern District of Missouri, St. Louis Metropolitan Police Department, St. Louis Circuit Attorney’s Office, St. Louis County Police Department and the St. Louis County Prosecutor’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Federal Grand Jury Indicts Former Prison Supervisor for Sexual Abuse of a WardRead the Press Release
In Del Rio today, a federal grand jury indicted a former GEO Group’s Val Verde Correctional Facility supervisor for allegedly having sexual relations with a prisoner announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs.
The federal indictment charges 58-year-old Leticia Martinez Garza of Del Rio, with one count of sexual abuse of a ward. According to the indictment, between May 2014 and September 2014, the Laundry, Property and Supply Supervisor knowingly engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory, or disciplinary authority.
Upon conviction, Garza faces up to 15 years in federal prison and a maximum $250,000 fine. Garza is currently on bond awaiting further court proceedings.
This case was investigated by FBI and is being prosecuted by Assistant United States Attorneys Goran Krnaich and Matthew H. Watters.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Ethiopian national sentenced to 27 months in prison for resisting deportation ordersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that an Ethiopian national was sentenced Tuesday to 27 months in prison for refusing to leave the country twice after being ordered to depart.
Henok Dejene Retta, 30, of Addis, Ethiopia, was sentenced by U.S. District Judge Dee D. Drell on two counts of failure to depart. Retta was found guilty on both counts after a two-day trial that ended July 1, 2015. Evidence admitted at trial revealed that on two occasions U.S. Immigration Enforcement agents attempted to remove Retta from the country via the Alexandria International Airport by putting him on a commercial flight. The defendant hampered agents’ ability to remove him by verbally and physically resisting agents on November 19, 2013. The defendant also hampered attempts to put him on a commercial flight at the airport on January 7, 2014, when he told those present that he had terrorist ties in Africa and would have the plane attacked should he be put on the plane. These incidents prevented him from boarding the flights because of airline and Transportation Security Administration safety policies.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Robert F. Moore and Howard C. Parker prosecuted the case.
El Dirigente de Una Organización Que Trafica con Metanfetamina en el Condado de Butte a Sido Sentenciado a 17 Años en una Prisión FederalRead the Press Release
SACRAMENTO, California – Federico Sandoval Aguilar, 43, y residente de Biggs, fue sentenciado hoy por la Juez del Distrito de los Estados Unidos Kimberly J. Mueller a 17 años y medio de prisión por conspirar a distribuir metanfetamina, anuncio el Procurador de los Estados Unidos Benjamín B. Wagner.
Según documentos del tribunal, Aguilar era el jefe de una organización que traficaba con droga y que era responsable de la distribución semanal de metanfetamina en cantidades de una libra por el Condado de Butte. En el 2013, y en un periodo de cuatro meses, la organización de Aguilar distribuyó más de 49 libras de metanfetamina. Aguilar fue arrestado en su residencia en agosto del 2013 en donde agentes de la policía encontraron 15 teléfonos celulares, cinco armas de fuego y 50,000 dólares en efectivo ocultos en el conducto del aire dentro de un cuarto de baño.
Este caso es el producto de una investigación llevada a cabo por la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration) o DEA, el Destacamento Especial de Narcóticos Interinstitucional de Butte (Butte Interagency Narcotics Task Force ) o BINTF, la Oficina del Sheriff del Condado de Butte, el Departamento de Libertad Condicional del Condado de Butte, la Fiscalía del Distrito del Condado de Butte, la Patrulla de Carreteras de California, la Oficina de Control de Juegos y Apuestas del Departamento de Justicia de California, el Departamento de Policía de Chico y el Servicio de Mariscal de los Estados Unidos. El Procurador Auxiliar de los Estados Unidos Justin Lee procesó el caso.
Este caso fue parte de un Destacamento Especial de Lucha Contra las Drogas y el Crimen Organizado (Organized Crime Drug Enforcement Task Force) u OCDETF. El programa del OCDETF fue establecido en 1982 para gestionar ataques detallados a varios niveles a las principales organizaciones que se dedican al narcotráfico y al lavado de dinero. La misión fundamental del programa del OCDETF es identificar, interrumpir y desmantelar las más graves organizaciones dedicadas al narcotráfico y al lavado de dinero y ante todo a aquellas personas responsables del suministro de la droga en la nación.
El Dirigente De Una Organización Que Trafica Con Metanfetamina En El Condado De Butte A Sido Sentenciado A 17 Años En Una Prisión FederalRead the Press Release
SACRAMENTO, California – Federico Sandoval Aguilar, 43, y residente de Biggs, fue sentenciado hoy por la Juez del Distrito de los Estados Unidos Kimberly J. Mueller a 17 años y medio de prisión por conspirar a distribuir metanfetamina, anuncio el Procurador de los Estados Unidos Benjamín B. Wagner.
Según documentos del tribunal, Aguilar era el jefe de una organización que traficaba con droga y que era responsable de la distribución semanal de metanfetamina en cantidades de una libra por el Condado de Butte. En el 2013, y en un periodo de cuatro meses, la organización de Aguilar distribuyó más de 49 libras de metanfetamina. Aguilar fue arrestado en su residencia en agosto del 2013 en donde agentes de la policía encontraron 15 teléfonos celulares, cinco armas de fuego y 50,000 dólares en efectivo ocultos en el conducto del aire dentro de un cuarto de baño.
Este caso es el producto de una investigación llevada a cabo por la Agencia Antidrogas de Estados Unidos (Drug Enforcement Administration) o DEA, el Destacamento Especial de Narcóticos Interinstitucional de Butte (Butte Interagency Narcotics Task Force ) o BINTF, la Oficina del Sheriff del Condado de Butte, el Departamento de Libertad Condicional del Condado de Butte, la Fiscalía del Distrito del Condado de Butte, la Patrulla de Carreteras de California, la Oficina de Control de Juegos y Apuestas del Departamento de Justicia de California, el Departamento de Policía de Chico y el Servicio de Mariscal de los Estados Unidos. El Procurador Auxiliar de los Estados Unidos Justin Lee procesó el caso.
Este caso fue parte de un Destacamento Especial de Lucha Contra las Drogas y el Crimen Organizado (Organized Crime Drug Enforcement Task Force) u OCDETF. El programa del OCDETF fue establecido en 1982 para gestionar ataques detallados a varios niveles a las principales organizaciones que se dedican al narcotráfico y al lavado de dinero. La misión fundamental del programa del OCDETF es identificar, interrumpir y desmantelar las más graves organizaciones dedicadas al narcotráfico y al lavado de dinero y ante todo a aquellas personas responsables del suministro de la droga en la nación.
Detroit Man Sentenced to Three Years for Crack Distribution and ConspiracyRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Joiner, Jr., 30, of Detroit, Michigan was sentenced today to three years in prison and five years of supervised release for conspiring to distribute 28 grams or more of cocaine base, often referred to as crack cocaine, and distribution of crack cocaine. Joiner entered a guilty plea to the charges on May 29, 2015.
Court records reveal that between December 2013 and January 2015, Joiner conspired with others, including Russell Gordon and Marco Gordon, to sell crack cocaine in Portland. Russell Gordon would arrange for the acquisition of drugs out of state. Once the drugs were transported to Maine, they were provided to retail distributors who would sell the drugs in the Portland area, and then return the cash proceeds to Russell Gordon. During the course of the investigation, law enforcement officers conducted controlled purchases of crack cocaine from Joiner and other members of the conspiracy.
Russell Gordon and Marco Gordon have both entered guilty pleas and await sentencing.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of investigators from the Federal Bureau of Investigation, the Portland Police Department, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. The Biddeford and Lewiston Police Departments, the Maine Drug Enforcement Agency, and the Maine State Police also assisted with the investigation.
The case also results from the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defendant Vernon Dulei Was Today Sentenced in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam and the Northern Mariana Islands, announced that VERNON SABURO DULEI, was sentenced today, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to sixteen months incarceration, and five years of supervised release.
Defendant DULEI pled guilty on October 30, 2014 to one count of Failure to Register or Update Registration as a Sex Offender in violation of Title 18 U.S.C. Section 2250(a). Defendant DULEI, a Guam resident with a prior Criminal Sexual Conduct offense omitted to register or update his information with the Guam Sex Offender Registry for approximately seven months.
U.S. Attorney Limtiaco states, “Under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction. Sex offenders who travel to Guam or who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school -- they must also periodically update the registration information. The sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders. Guam’s Sex Offender Registry can be found online at www.guamcourts.org.” U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the United States Marshals Service. The case was handled by Assistant U.S. Attorney R. San Nicolas.
Convicted Felon Sentenced to Three Years for Possessing A FirearmRead the Press Release
Tampa, Florida – Senior U.S. District Judge Richard A. Lazzara today sentenced Cory Quintana, aka Corey Quintana, (24, Lakeland) to three years in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a Taurus .38-caliber revolver and 18 rounds of ammunition. He pleaded guilty on July 24, 2015.
According to court documents, approximately three months after his release from state prison with felony convictions for aggravated battery and aggravated assault, Quintana’s probation officer found him in possession of a firearm in violation of his probation order. Because of his prior felony convictions, Quintana also was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Polk County Sheriff’s Office joint Task Force, along with the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachel Jones.