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6 October 2015
Methamphetamine Trafficker Sentenced to 15 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. -- On Oct. 6, 2015, Daniel Martinez, Jr., 39, of Morristown, Tenn., was sentenced to serve 15 years in federal prison by the Honorable R. Leon Jordan, U.S. District Judge. Upon his release from prison, Martinez will serve a 10 year period of supervised release.
Martinez pleaded guilty to a federal grand jury indictment charging him with conspiring to distribute methamphetamine. He admitted to obtaining methamphetamine from sources of supply near Atlanta, Ga., as well as Bakersfield, Calif., and distributing the drug in the Eastern District of Tennessee. Martinez admitted that the drug trafficking network grew out of relationships formed in the over-the-road truck industry and that the conspirators had been trafficking methamphetamine for several years prior to their indictment.
Three others were indicted along with Martinez and have each pleaded guilty to conspiring to distribute methamphetamine. Randy Dean, 49, of Greeneville, Tenn., was sentenced in October 2015 to serve 97 months in prison. Amanda Norton, 36, of Morristown, Tenn., and Terry Mulkey, 49, of Calhoun, Ga., are awaiting sentencing.
The investigation into the drug trafficking of Martinez and his conspirators was the collaborative effort of several law enforcement agencies including the Greene County Sheriff’s Office, Morristown Police Department, Third Judicial Drug Task Force, Tennessee Bureau of Investigation, U.S. Department of Homeland Security Investigations, and Drug Enforcement Administration. The Third Judicial District Attorney’s Office also provided assistance in the prosecution of the case. Assistant U.S. Attorney J. Christian Lampe represented the United States.
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Massachusetts Man Sentenced to 37 Months in Prison for Trafficking Counterfeit Military GoodsRead the Press Release
A Massachusetts man was sentenced today to 37 months in prison for importing thousands of counterfeit integrated circuits (ICs) from China and Hong Kong and reselling them to U.S. customers, including contractors supplying them to the U.S. Navy for use in nuclear submarines.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Matthew J. Etre of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in New England, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office and Special Agent in Charge Leo Lamont of the Naval Criminal Investigative Service (NCIS) Northeast Field Office made the announcement.
Peter Picone, 42, of Methuen, Massachusetts, pleaded guilty on June 3, 2014, to conspiracy to traffic in counterfeit military goods. In addition to imposing the prison term, U.S. District Judge Alvin W. Thompson of the District of Connecticut ordered Picone to pay $352,076 in restitution to the 31 companies whose ICs he counterfeited, and to forfeit $70,050 and 35,870 counterfeit ICs.
“Picone risked undermining our national security so that he could turn a profit,” said Assistant Attorney General Caldwell. “He sold counterfeit integrated circuits knowing that the parts were intended for use in nuclear submarines by the U.S. Navy, and that malfunction or failure of the parts could have catastrophic consequences.”
“Supplying counterfeit electronic components to the U.S. Military is a serious crime,” said U.S. Attorney Daly. “Individuals who choose profit over the health and safety of the men and women of our armed services will be prosecuted.”
“Counterfeit electrical components intended for use in U.S. military equipment put our service members in harm’s way, and our national security at great risk,” said Special Agent in Charge Etre. “HSI will continue to aggressively target individuals and companies engaged in this type of criminal act.”
“The sentencing today demonstrates the continued efforts of the Defense Criminal Investigative Service and our fellow law enforcement partners to protect the integrity of the Department of Defense's infrastructure,” said Special Agent in Charge Rupert. “Distributors who opt for financial gain by introducing counterfeit circuitry into the supply chain of mission critical equipment create an environment ripe for potential failures. Such disregard puts the warfighter at an unnecessary risk, ultimately impacting the mission readiness of our military that the nation depends on. DCIS will continue to shield America's investment in Defense by addressing all attempts to disrupt the reliability of our military's equipment and processes.”
“The U.S. Navy submarine force is a critical component of our national security,” said Special Agent in Charge Lamont. “Protecting the Sailors who make up that force and their supply lines are top priorities for NCIS, to ensure our strategic deterrent remains effective.”
In April 2005, Picone founded Tytronix Inc., and served as its president and director until August 2010, when the company was dissolved. In addition, from August 2009 through December 2012, Picone owned and operated Epic International Electronics (Epic) and served as its president and director.
In connection with his guilty plea, Picone admitted that, from February 2007 through April 2012, first through Titronix and later through Epic, he purchased millions of dollars’ worth of ICs bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola, Xilinx and National Semiconductor, from suppliers in China and Hong Kong. Picone admitted that he resold the counterfeit ICs to customers both in the United States and abroad, including to defense contractors that Picone knew intended to supply the counterfeit ICs to the U.S. Navy for use in nuclear submarines, among other things. Picone further admitted that he knew that malfunction or failure of the ICs likely would cause impairment of combat operations and other significant harm to national security.
On April 24, 2012, federal agents searched Picone’s business and residence, and recovered 12,960 counterfeit ICs. In connection with his guilty plea, Picone admitted that he intended to sell the seized counterfeit ICs to defense contractors doing business with the Navy for use in military applications.
The case was investigated by the Defense Criminal Investigative Service, the NCIS and ICE-HSI. The case is being prosecuted by Senior Counsel Kendra Ervin and Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Assistant U.S. Attorney Sarala Nagala and Special Assistant U.S. Attorney Carol Sipperly of the District of Connecticut, Trial Attorney Anna Kaminska of the Criminal Division’s Fraud Section and Trial Attorney Kristen Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The CCIPS Cybercrime Lab provided significant assistance.
The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.
Manhattan U.S. Attorney, ATF, and NYPD Announce Arrest of Three Individuals for Firearms TraffickingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Delano A. Reid, Special Agent in Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of two individuals charged with firearms trafficking in the Bronx, New York, and one individual charged with firearms trafficking, narcotics distribution, and possession of a firearm during a narcotics offense. The defendants will be presented later today before the Honorable James C. Francis, IV, United States Magistrate Judge.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants brought more than 50 guns into New York so that they could sell them on the streets of the Bronx. Together with our law enforcement partners, we will continue to work to rid our neighborhoods of illegal guns.”
ATF Special Agent-in-Charge Delano A. Reid, stated: “In these especially chaotic times, with firearm related violence pervasive in our society, I am extremely pleased to see that the assigned investigators and prosecutors have remained focused in their pursuit of these alleged firearms traffickers who mistakenly thought they could wreak havoc on the streets of this great city by selling weapons for their own financial gain. Now, as defendants, they will begin to appreciate the depravity of their conduct and will know that law enforcement will leave no stone unturned in the interdiction of interstate firearms trafficking.”
Police Commissioner William J. Bratton said: “The NYPD remains committed to saving lives by stopping the distribution of illegal firearms. We continue bringing traffickers to justice who, by providing easy access to firearms, play a significant role in perpetrating gun violence. As alleged, these individuals engaged in a trafficking operation in which they sold numerous firearms in the Bronx, to the detriment of the safety and welfare of everyone. Thankfully, NYPD investigators and our law enforcement partners dismantled the operation, and this flow of firearms has been shut down.”
As alleged in the criminal Complaint unsealed today in Manhattan federal court[1]:
From at least in or about December 2014 through in or about September 2015, PAUL BARRY, ANTHONY ROMAN, and TIANA WILLIAMS, the defendants, conspired to and did purchase firearms in Ohio for the purpose of illegally reselling the firearms in the Bronx, New York. During the course of the conspiracy, law enforcement officers conducted controlled purchases of over 50 firearms, including a semi-automatic assault rifle, and over 1,000 rounds of ammunition from the defendants. In addition, in or about August and September 2015, law enforcement officers conducted controlled purchases of ethylone, commonly referred to as “Molly,” from ROMAN.
BARRY, 31, of West Carrollton, Ohio, ROMAN, 37, of the Bronx, New York, and WILLIAMS, 24, of the Bronx, New York, are each charged with one count of one count of firearms trafficking, which carries a maximum sentence of 10 years in prison, and one count of conspiracy to traffic in firearms, which carries a maximum sentence of five years in prison. ROMAN is also charged with one count of interstate transportation and receipt of firearms, which carries a maximum sentence of five years in prison; narcotics possession with intent to distribute, which carries a maximum sentence of 20 years in prison; and one count of firearm possession in furtherance of a narcotics offense, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of life in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the ATF and the NYPD. He also thanked the Bronx County District Attorney’s Office for its participation and support in this ongoing investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Dina McLeod and Jason Swergold are in charge of the prosecution.
The charges contained in the criminal Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces $85 Million Settlement with Fifth Third Bancorp over Failures to Self-Report Defective Mortgage Loans to FHARead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Helen R. Kanovsky, General Counsel of the U.S. Department of Housing and Urban Development (“HUD”), and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), announced today an $85 million settlement with FIFTH THIRD BANCORP and its subsidiaries (“FTB” or the “Bank”) resolving civil fraud claims arising from FTB’s origination of residential mortgage loans insured by the Federal Housing Administration (“FHA”). FTB made a voluntary disclosure of approximately 1,400 mortgage loans that the Bank had certified as eligible for FHA insurance, later determined were materially defective and thus ineligible for FHA insurance, but never self-reported to HUD, resulting in millions of dollars in HUD losses. As part of the settlement approved yesterday by United States District Judge Deborah A. Batts, FTB will pay approximately $85 million to cover federal losses on approximately 500 of the loans that defaulted and for which HUD paid insurance claims, and indemnify HUD for all losses HUD may incur on approximately 900 defective loans that have not yet defaulted. FTB admitted and accepted responsibility for failing to self-report mortgage loans it knew to be defective, contrary to HUD requirements. FTB has also reformed its business practices and terminated the employment of responsible employees.
Manhattan U.S. Attorney Preet Bharara said: “Federal insurers rely on banks when they promise that the mortgage loans they originate are eligible for that insurance. When banks discover that some of the loans are lemons and that their promises of quality were false, as Fifth Third Bank did, they must come forward and report it promptly, so that taxpayers don’t get stuck with the bill. With this settlement, Fifth Third Bancorp has admitted to originating about 1,400 materially defective loans that were not eligible to be FHA insured and has taken positive steps to reform its quality control program, including terminating the employees responsible.”
HUD General Counsel Helen R. Kanovsky said: “Lenders have a responsibility to notify us when they discover material defects in the FHA-insured loans they originate. We will continue to protect FHA’s insurance fund and to ensure borrowers have access to affordable and sustainable mortgage financing.”
SIGTARP Special Inspector General Christy Goldsmith Romero said: “Before and during the time Fifth Third was bailed out in TARP, its Quality Control employees made false representations to HUD that residential mortgages the bank originated were of the quality required to be insured by HUD. The bank’s false representations cost HUD millions of dollars to pay insurance claims on 519 of the materially defective loans that later defaulted. Fifth Third’s actions to fire those employees, voluntarily disclose its violations of the False Claims Act and FIRREA to law enforcement, and make corporate changes should stand as an example for others who violated the law. SIGTARP will root out violations of the law related to TARP with our law enforcement partners such as U.S. Attorney Preet Bharara. It is always better to disclose those violations rather than wait for SIGTARP to find them.”
As set forth in the settlement agreement:
HUD offers various mortgage insurance programs through which it insures approved lenders against losses on mortgage loans made to buyers of single-family housing, including FHA’s Direct Endorsement Lender program, which authorizes private-sector mortgage lenders (“Direct Endorsement Lenders”) to underwrite mortgage loans, decide whether the borrower represents an acceptable credit risk for HUD, and certify loans for FHA mortgage insurance without prior HUD review or approval.
Because HUD relies on Direct Endorsement Lenders to determine which loans should be endorsed for FHA insurance, it requires that Direct Endorsement Lenders conduct adequate due diligence on loans before certifying them for FHA insurance. Direct Endorsement Lenders are also required to maintain an adequate quality control program, which includes self-reporting to HUD in writing within 60 days of initial discovery any loans identified during quality reviews that are affected by serious deficiencies, patterns of non-compliance, or fraud.
Direct Endorsement Lenders make a number of certifications to HUD, including annual certifications and individual loan certifications. In the annual certification, the Direct Endorsement Lender represents that it conforms to all HUD-FHA regulations necessary to maintain its HUD-FHA approval, and among the basic requirements necessary to maintain such approval is the implementation of a compliant quality control program, including timely self-reporting to HUD any loans affected by serious deficiencies, patterns of non-compliance, or fraud. In the individual loan certification, the Direct Endorsement Lender represents that each mortgage is eligible for FHA mortgage insurance.
FTB is an Ohio-chartered bank headquartered in Cincinnati, Ohio. FTB has been a Direct Endorsement Lender since at least 2003 and has submitted both annual and individual loan certifications to HUD.
In 2012, FTB made a voluntary disclosure to the Government of certain residential mortgage loans that FTB had originated and certified to HUD as eligible for FHA insurance, but had later found, through post-closing quality reviews, were in fact materially defective and not eligible for FHA insurance. In 2014, FTB made a supplemental voluntary disclosure to the Government identifying additional materially defective mortgage loans that FTB had failed to self-report to HUD. FTB voluntarily disclosed to the Government a total of 1,439 materially defective loans originated from 2003 through 2013. HUD paid insurance claims on 519 of those loans after they defaulted, and no insurance claims have been submitted to HUD for 920 of the loans.
As part of the settlement, the Bank will pay $84,911,018 to resolve liability under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act arising from the 519 loans for which HUD paid insurance claims. FTB will indemnify HUD for all losses HUD may incur on the 914 loans that have not defaulted. The Bank will also make an administrative payment to HUD of $2,044,000 as part of a separate indemnification agreement with HUD.
FTB admitted, acknowledged, and accepted responsibility for its self-reporting violations, including that:
- FTB was required to self-report to HUD any serious deficiencies, patterns of non-compliance, or fraud within 60 days of the initial discovery;
- FTB made annual certifications to HUD that it conformed to all HUD-FHA regulations necessary to maintain its HUD-FHA approval, which included the implementation of a mandatory quality control program by which FTB reported to HUD all serious deficiencies, patterns of non-compliance, or fraud;
- From 2003 through 2013, FTB’s quality control program identified through post-closing reviews 1,436 residential mortgage loans that FTB had originated and certified to HUD as eligible for FHA insurance that were materially defective and thus ineligible for FHA insurance; and
- FTB failed timely to self-report these materially defective loans to HUD pursuant to HUD requirements.
FTB has taken steps to reform its quality control program, including terminating the employment of personnel responsible for FTB’s failure to self-report materially defective loans to HUD.
This matter arose, in part, from the filing of a whistleblower complaint under the False Claims Act.FTB made its voluntary disclosure to the Government without knowledge of the whistleblower complaint filed under seal or the Government’s investigation of that complaint.The Government intervened in the whistleblower lawsuit and entered into this settlement resolving the case.
The case has been handled by the Office's Civil Frauds Unit. Assistant U.S. Attorney Pierre G. Armand is in charge of the case.
Media Notice – Press ConferenceRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Thomas E. Delahanty II, United States Attorney for the District of Maine, Janet T. Mills, Maine Attorney General, and John E. Morris, Maine Commissioner for the Department of Public Safety, will host a press conference to discuss the new Anti-Heroin Opiate Initiative on Thursday, October 8, 2015 at 11:15 a.m. at the U.S. Attorney’s Office, Munjoy Hill Conference Room, 7th Floor, 100 Middle Street, Portland.
U.S. Attorney Delahanty, Attorney General Mills and Commissioner Morris will introduce individuals who have agreed to serve as team leaders and members of three working groups to address issues concerning: law enforcement, public education/harm reduction and treatment/rehabilitation.
Members of the media should plan to arrive at least 15 minutes before the scheduled conference time, entering the office on the 6th Floor to proceed through security screening.
The press conference will be video-conferenced to the U.S. Attorney’s Office at 202 Harlow Street, Bangor and media members can view it there.Louisiana Resident Sentenced for Involvement in Stolen Identity Tax Fraud SchemeRead the Press Release
A resident of Hammond, Louisiana, was sentenced to prison for his involvement in a stolen identity tax fraud scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.
Thaddeus Richardson, 49, was sentenced by U.S District Judge Jay C. Zainey of the Eastern District of Louisiana to serve 51 months in prison to be followed by three years of supervised release. Richardson pleaded guilty on July 2 to seven counts of theft of public money, one count of conspiracy to commit money laundering, and one count of a dual-object conspiracy to defraud the United States and to commit mail fraud and theft of public money. Judge Zainey will determine the amount in restitution Richardson has to pay to the Internal Revenue Service (IRS) at a later date.
According to court documents, Richardson and his co-defendants conspired to prepare and file false income tax returns using stolen identities, including the victims’ names and social security numbers, to claim large tax refunds. The refund checks were mailed to addresses in Louisiana, including post office boxes that were opened by the co-conspirators. Once they received the checks, Richardson and his co-defendants falsely endorsed and deposited the refund checks into bank accounts under their control. The co-conspirators then divided the proceeds of the refund checks amongst themselves.
The indictment also charged Cedrick Mitchell, aka Skeet, 40; Corey Lewis, 37; and others with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. Lewis was also charged with three counts of theft of public money and three counts of aggravated identity theft. On Sept. 15, Mitchell was sentenced to serve 33 months in prison. On Sept. 29, Lewis was sentenced to serve 75 months in prison. All of the remaining defendants in this case have pleaded guilty to various charges and are awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer of the Eastern District of Louisiana and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Louisiana Resident Sentenced for Involvement in Stolen Identity Tax Fraud SchemeRead the Press Release
WASHINGTON – A resident of Hammond, Louisiana, was sentenced to prison for his involvement in a stolen identity tax fraud scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana announced today.
Thaddeus Richardson, 49, was sentenced by U.S District Judge Jay C. Zainey of the Eastern District of Louisiana to serve 51 months in prison to be followed by three years of supervised release. Richardson pleaded guilty on July 2 to seven counts of theft of public money, one count of conspiracy to commit money laundering, and one count of a dual-object conspiracy to defraud the United States and to commit mail fraud and theft of public money. Judge Zainey will determine the amount in restitution Richardson has to pay to the Internal Revenue Service (IRS) at a later date.
According to court documents, Richardson and his co-defendants conspired to prepare and file false income tax returns using stolen identities, including the victims’ names and social security numbers, to claim large tax refunds. The refund checks were mailed to addresses in Louisiana, including post office boxes that were opened by the co-conspirators. Once they received the checks, Richardson and his co-defendants falsely endorsed and deposited the refund checks into bank accounts under their control. The co-conspirators then divided the proceeds of the refund checks amongst themselves.
The indictment also charged Cedrick Mitchell, aka Skeet, 40; Corey Lewis, 37; and others with conspiracy to defraud the United States, conspiracy to commit money laundering, conspiracy to commit mail fraud and conspiracy to commit theft of public money. Lewis was also charged with three counts of theft of public money and three counts of aggravated identity theft. On Sept. 15, Mitchell was sentenced to serve 33 months in prison. On Sept. 29, Lewis was sentenced to serve 75 months in prison. All of the remaining defendants in this case have pleaded guilty to various charges and are awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who investigated the case, and Assistant U.S. Attorneys Hayden Brockett and Dall Kammer of the Eastern District of Louisiana and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting the case.
Longview Men Plead Guilty to Daingerfield Bank RobberyRead the Press Release
MARSHALL, Texas – Two Longview, Texas men have pleaded guilty to their involvement in a Daingerfield Bank Robbery announced U.S. Attorney John M. Bales today.
Latarious Martez Hughes, 21, and Kenneth Duane Hooks, 23, both pleaded guilty today in U.S. Magistrate Roy Payne’s court to their involvement in the armed bank robbery of the 1st National Bank of Hughes Springs, Daingerfield Branch on February 27, 2015. A federal grand jury indicted the two men for robbery on March 18, 2015.
Hughes admitted that he entered the bank with a bandana over his face, brandished a pistol, and pointed the pistol at one of the tellers. Hughes then handed a mesh bag to the teller and instructed her to put money in the bag. The teller complied and put $53,654.00 in the bag and returned the bag to Hughes. Hughes then fled the bank, with the cash, on foot.
Hooks admitted that, following the bank robbery, he drove Hughes, in Hooks’ vehicle, from Daingerfield to Hooks’ residence in Longview, Texas, where the pair were residing together. At approximately 1:30 p.m. that afternoon, F.B.I. agents arrived at Hooks’ residence. The agents advised Hooks of the bank robbery and questioned him about it. Hooks denied that he had been in Daingerfield on the day of the robbery, which was false. Hooks claimed that he had traveled to Mount Pleasant, Texas on the morning of the robbery, which was also false. Hooks further claimed that he had not seen Hughes on the morning of the bank robbery, which was also false. Hooks admitted that he made the false statements to the F.B.I. to assist Hughes in order to hinder or prevent Hughes’ apprehension.
All but $7,566.00 of the stolen cash was recovered from Hughes and Hooks’ residence. Both men will be required to repay the missing $7,566.00 to the bank.
Hughes is facing up to twenty-five years in prison and a $250,000.00 fine. Hooks is facing up to twelve and one half years in prison and a $125,000.00 fine. A sentencing date for the pair has not been set.
This case was investigated by the Daingerfield Police Department, the Longview Police Department, and the F.B.I., Texarkana Office, and prosecuted by Assistant U.S. Attorney Jim Noble.
Len Blavatnik to Pay $656,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Len Blavatnik for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of TangoMe Inc. in August 2014. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Blavatnik has agreed to pay a $656,000 civil penalty to resolve the lawsuit.
The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act, the maximum civil penalty is $16,000 per day.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint.
Lead Defendant in Shoplifting Ring Sentenced to 7 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — The lead defendant in a shoplifting ring that stole over $2.5 million in retail goods and resold them on eBay was sentenced today to seven years in prison, United States Attorney Benjamin B. Wagner announced. A restitution hearing is set for December 1, 2015.
Jason Samuel Schroeder, 36, of Sacramento, is the sixth defendant sentenced to prison in this case. Kirk Arthell Sanderson, 37, of Walnut Creek, was previously sentenced to four years in prison; John Judah Young, 34, of Sacramento, was sentence to two and one half years in prison; and David Reed, 29, of Vacaville, was sentenced to one year in prison. Two others, Andrea Lynn Turner, 34, of Roseville, and Joshua Roy Payne, 30, of Vacaville, were also sentenced to two months in prison. Jason Nathaniel Reed, 36, of Portland, Oregon, is scheduled for sentencing later this year.
On March 3, 2015, Schroeder pleaded guilty to interstate transportation of stolen property. According to the plea agreement, in October 2012, a sporting goods company with retail stores in Sacramento called the FBI stating that an eBay account was listing items for sale it suspected were stolen. Follow-up investigation revealed that the account was controlled by Schroeder using co-defendant Young’s name, and since 2009, it listed more than 17,000 items for sale, including sporting goods, household items, recreational equipment and pet care products. Most of the items were listed as new or with tags. Virtually all of the items sold on the account were stolen by Schroeder, Young, or others, and were sold at a discount to buyers across the country.
The proceeds of the sales were deposited into a PayPal account also controlled by Schroeder and then laundered through ATM withdrawals, cash-back purchases, and the purchase of more than $600,000 in money orders. Surveillance of Schroeder revealed that he spent multiple hours a day traveling to different stores and appearing to steal a variety of items. Those items were later listed on his eBay account.
Wiretaps and surveillance also revealed the specific roles of other members of the conspiracy. According to court documents, David Reed assisted Schroeder with the packaging and shipment of the stolen merchandise. Sanderson assisted in moving items away from Schroeder’s residence when he learned of the federal investigation. Turner and Payne provided false statements to federal agents upon being interviewed regarding their assistance to Schroeder.
“This case is a result of a combined law enforcement effort against a criminal organization motivated by greed and profit,” said Thomas McMahon, Acting Special Agent in Charge, IRS Criminal Investigation. “These defendants stole millions of dollars from retailers, which ultimately got passed down to the American consumer. IRS Criminal Investigation will continue to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
“Schroeder—well known to the loss prevention professionals in California and other states—brazenly and habitually shoplifted from retailers for the sole purpose of selling the stolen merchandise to unsuspecting customers online. The ring’s impact was significant and forever changed how a variety of goods are displayed at retail locations in both states,” said Special Agent Brandon Simpson of the Federal Bureau of Investigation’s Sacramento field office. “We are thankful to IRS-Criminal Investigation, the United States Postal Inspection Service, and eBay for their partnership in this successful investigation.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to protect the public and the U.S. Mail against all forms of criminal misuse.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the United States Postal Inspection Service. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
Kankakee Felon to Serve 12 Years in Federal Prison for Drug, Gun ChargesRead the Press Release
Urbana, Ill. - Brian K. Dalton, 35, was sentenced late yesterday, Monday, Oct. 5, 2015, to serve 12 years in federal prison for distribution of crack cocaine and illegal possession of a firearm by a felon, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Dalton remains on bond and was ordered to report to the federal Bureau of Prisons on Feb. 9, 2016, to begin serving his sentence.
Dalton, who previously lived in St. Paul, Minn., pled guilty on June 3, 2015, to distribution of 28 grams or more of crack cocaine in the Kankakee, Ill., area on Jan. 26, 2012, and to possession of a firearm by a felon in February 2012. According to court documents, Dalton possessed a loaded .45 caliber semi-automatic pistol with an obliterated serial number. At the time of the offenses, Dalton had prior drug convictions in Kankakee County.
The case is the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Indictment: Chanute Man Manufactured Silencers in Violation of Federal Firearms LawsRead the Press Release
WICHITA, KAN. - A Chanute man was indicted Tuesday on charges of manufacturing silencers in violation of federal firearms laws, U.S. Attorney Barry Grissom said.
Shane Cox, 44, Chanute, Kan., who owned an Army surplus store called Tough Guys, is charged with 12 counts. The charges include making a false statement during a federal investigation, possession of an unregistered firearm, conspiracy, transfer of a firearm in violation of the National Firearm Act, making a firearm in violation of the National Firearm Act and engaging in business as a dealer and manufacturer of firearms.
The indictment alleges Cox:
- Advertised for sale silencers that were not registered as required by federal law.
- Manufactured silencers without paying federal taxes.
- Possessed silencers that were not manufactured, sold or registered as required by federal law.
- Manufactured a silencer that was not identified by a serial number as required by federal law.
The indictment alleges that on April 21, 2015, Cox made false statements to agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Upon conviction, the crimes carry the following penalties:
- Making a false statement: A maximum penalty of five years and a fine up to $250,000.
- Possession of an unregistered firearm: A maximum penalty of 10 years and a fine up to $250,000 on each count.
- Conspiracy: A maximum penalty of five years and a fine up to $250,000.
- Transfer of a firearm in violation of the National Firearm Act: A maximum penalty of 10 years and a fine up to $10,000 on each count.
- Making a firearm in violation of the National Firearm Act: A maximum penalty of 10 years and a fine up to $250,000.
- Engaging in business as a dealer and manufacturer of firearms: A maximum penalty of 10 years and a fine up to $10,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
OTHER GRAND JURY INDICTMENTS
Danielle E. Lewis, 40, Wichita, Kan., is charged with three counts of bank fraud and three counts of aggravated identity theft. The crimes are alleged to have occurred in July, August and September 2015 in Sedgwick County, Kan.
If convicted, she faces a maximum penalty of 30 years and a fine up to $1 million on each bank fraud count, and a mandatory two years (consecutive) on each identity theft count. The U.S. Postal Inspection Service investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Houston Woman Pleads Guilty to Defrauding Former EmployerRead the Press Release
HOUSTON – A former employee of United Transport Tankcontainers Inc. (UTT) has been convicted of one count of wire fraud, announced U.S. Attorney Kenneth Magidson. Marcella Jones aka Marcella Jones-Hatch, 44, of Houston, pleaded guilty today, admitting she caused a loss of nearly $1.8 million to her former employer.
Hatch was hired in the accounting department at UTT in 2007. As part of her plea, she admitted that between July 2008 and August 2014, she executed a scheme to defraud her former employer. As part of her scheme, she created fraudulent payment requests and submitted them to UTT. As a result, the company then sent the payments to her personal bank account which she used for her own personal benefit. The estimated total losses to UTT as a result of the scheme was $1,796,945.67.
U.S. District Judge David Hittner accepted the plea to day and set sentencing for Dec. 30, 2015, at which time Jones faces up to 20 years imprisonment and a possible $250,000 maximum fine. She will remain in custody pending that hearing.
The charges are the result of an investigation by the Secret Service. Assistant U.S. Attorney John Braddock is prosecuting the case.
Gun Store Owner Loses Federal Firearms License for Selling a Firearm to a Convicted FelonRead the Press Release
TULSA, Okla.—James Patrick Okey, 45, was sentenced in federal court for knowingly selling a firearm to a convicted felon announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. Okey was a Federal Firearms Licensee (FFL) who owned and operated a gun store, Hunters Choice, located in Sapulpa, Oklahoma. Okey pleaded guilty on July 1, 2015, to a felony indictment charging him with Sale of a Firearm to a Prohibited Person.
As a result of his conviction, Okey lost his federal firearms license, had to liquidate his inventory and close his business. Additionally, United States District Court Judge Claire V. Eagan fined Okey $3,000 and placed him on probation for five years.
“FFL’s have a responsibility to the community to sell firearms lawfully and to the right people,” said U.S. Attorney Williams. “The United States Attorney’s Office is dedicated to making sure that firearms do not end up in the hands of prohibited individuals.”
On May 15, 2014, during the course of an investigation, Okey sold a firearm to a person he knew to be a convicted felon. Convicted felons are prohibited from lawfully possessing a firearm. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Neal C. Hong.
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Greenville Carjacker Sentenced to 327 MonthsRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced David Devonne Battiste, 42, of Greenville to 327 months imprisonment, followed by 5 years of supervised release.
David Devonne Battiste was named in an Indictment filed on September 11, 2014 charging him with Carjacking, Use of a firearm in furtherance of a crime of violence and Possession of a firearm by a convicted felon. On April 7, 2015, Battiste pled guilty to Carjacking and use of a firearm during the commission of a crime of violence.
According to the investigation, on July 15, 2013, officers with the Greenville Police Department were dispatched to a report of a robbery at 413 West 5th Street in Greenville, N.C. Upon arrival, officers made contact with two victims who indicated that they were robbed at gunpoint by two males who demanded the keys to their vehicle and drove away. The victims indicated that as they sat in the vehicle, two suspects approached the driver’s side door. The first suspect, later identified as BATTISTE, tapped on the driver’s side door with a silver hand-gun and demanded that the driver open the door. The driver was forcefully removed from the vehicle, and his wallet and cash removed from his pockets. The passenger was then also ordered out of the vehicle, and when he refused, BATTISTE pointed the handgun at him and pulled the trigger. The weapon initially misfired, however; BATTISTE pulled the trigger a second time and a bullet shattered the passenger side window near the victim’s head. The second victim exited the vehicle and was also robbed. The suspects forced the victims to lie in the grass, entered the truck and drove out of the parking lot. The victims were able to give a description of the suspect with the firearm and BATTISTE was located shortly thereafter near where the stolen vehicle was located. A firearm was located in BATTISTE’S right front pocket, as well as the keys to the stolen vehicle and a bracelet matching one that was stolen from one of the victims. Officers also located two shell casings, one that still contained a bullet but had a primer mark (indicating a misfire) and one empty casing.
Investigation of this case was conducted by the Greenville Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Carrie Randa represented the government.
Government Files Enforcement Actions against Two California Companies and Three Individuals to Stop Importation of Dangerous Children's ProductsRead the Press Release
The Department of Justice announced today that it filed two civil actions in federal court in the Central District of California seeking to enjoin the importation and sales activities of two California companies and three individuals in connection with their importation of illegal and dangerous children’s products. The department filed the two actions at the request of the Consumer Product Safety Commission (CPSC), alleging that the defendants were responsible for importing children’s products containing, among other things, lead, phthalates and small parts posing a choking hazard for children under the age of three. The companies and defendants have agreed to settle the lawsuits and be bound by a consent decree of permanent injunction.
“Companies who do not comply with CPSC’s statutes and regulations regarding toys put American children at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Parents have a right to feel confident that the toys their children play with are safe.”
“We have zero tolerance for companies and individuals who put children at risk,” said CPSC Chairman Elliot F. Kaye. “To protect our children from unsafe and dangerous toys, we’ll continue to use all available enforcement tools at our disposal as well as continue to collaborate with our federal partners. Parents deserve no less when it comes to the safety of their children’s toys.”
“There is no greater responsibility of the Department of Justice than to protect our nation’s children,” said U.S. Attorney Eileen M. Decker of the Central District of California. “Today’s action demonstrates the Department’s commitment to keeping our children safe from all sources of harm.”
Both complaints allege that the defendants imported toys and other children’s products in violation of the Consumer Product Safety Act (CPSA) and the Federal Hazardous Substances Act (FHSA). One complaint was filed against Brightstar Group Inc., a Los Angeles importer and retailer of children’s products and toys, and its owner, Sherry Chen, 61, of Arcadia, California. The complaint alleges that since August 2013, CPSC collected dozens of samples from Brightstar’s import shipments as they attempted to enter the Port of Los Angeles/Long Beach, California, and from Brightstar’s Los Angeles facility. Based on their findings, CPSC issued nine Letters of Advice between September 2013 and April 2015, notifying the Brightstar defendants that their products violated federal standards. CPSC found numerous children’s products, including a fire engine set, a tea set, toy boxing gloves, collapsing stroller and marbles, in violation of the CPSA, the FHSA and their implementing regulations. Most of the violative products were stopped at import and were not sold to consumers. Chen is also sued for violations, which include importing violative infant rattles that occurred while she was the manager of Taifung Corp., a now-dissolved California corporation owned by her husband that also imported and sold children’s products and toys.
A second action was filed against Unik Toyz Trading Inc. (Unik), a Los Angeles importer and retailer of children’s products and toys, its owner, Julie Tran, 33, and its manager, Kiet Tran, 38, both of of Arcadia, California. The complaint alleges that since September 2011, CPSC identified 39 samples of children’s products imported by Unik, including toy cars, toy trains, bubble guns and art materials, that violate federal standards for children’s toys. These violations include illegal levels of lead content and toys intended for children under the age of three that contain small parts and accessible batteries. Most of these violative toys were stopped at import at the Port of Los Angeles/Long Beach and were not sold to consumers.
In conjunction with the filing of the complaints, the defendants in both lawsuits agreed to settle the litigation and be bound by a consent decree of permanent injunction. All of the defendants agreed to immediately cease all importation and sale of toys and children’s products, unless and until the CPSC determines that the firm’s practices have come into compliance with the law and with various remedial measures set out in the decrees. The proposed consent decrees are awaiting judicial approval.
The cases are being handled by Trial Attorneys Melanie Singh and Ann F. Entwistle of the Civil Division’s Consumer Protection Branch, with the assistance of Renee McCune of the CPSC’s Office of the General Counsel. The U.S. Attorney’s Office of the Central District of California also provided assistance.
Fugitive from Justice for 16 Years Sentenced to Eight Years in Prison for Laundering Illegal Drug ProceedsRead the Press Release
NEWARK, N.J. – After spending 16 years as a fugitive from justice, a man was sentenced today to 96 months in prison for his role in a conspiracy to launder almost $700,000 in illegal drug proceeds, U.S. Attorney Paul J. Fishman announced.
Reinaldo Jimenez, 49, most recently of Madrid, Spain, was previously convicted at trial by a federal jury in 1998 of one count of conspiracy to commit money laundering. Jimenez fled the country before his sentencing and lived abroad as a fugitive for 16 years. He was captured in California in 2014. U.S. District Judge Jose L. Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
From October 1996 through March 14, 1997, Jimenez knowingly laundered nearly $700,000 in drug proceeds collected by co-defendants in New Jersey and elsewhere. Jimenez took possession of the cash in $15,000 bundles wrapped in newspaper and scotch tape and then made numerous small deposits into personal, family and business accounts to avoid triggering mandatory reporting requirements. Jimenez then wired the laundered funds to cartel contacts in Columbia and Venezuela.
In addition to the prison term, Judge Linares sentenced Jimenez to three years of supervised release.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office, General Crimes Unit, in Newark.
Defense counsel: Assistant Public Defender K. Anthony Thomas Esq., Newark
Former Water Valley Loan Officer ArrestedRead the Press Release
OXFORD, Miss. - United States Attorney Felicia C. Adams, Special Agent in Charge, FDIC – Office of Inspector General, Dallas Regional Office, Laurie L. Younger, and Special Agent in Charge, USDA – Office of Inspector General, Southwestern Region, Patrick Munday announced today that William J. Pullen, age 38 of Water Valley, MS, was arrested last week on Federal Bank Fraud charges. Pullen has entered a plea of not guilty to all counts of an Indictment charging him with Bank Fraud in violation of Title 18, United States Code, Section 1344 and Embezzlement by a Bank Officer in violation of Title 18, United States Code, Section 656. On both counts of the Indictment, Pullen faces a maximum of thirty years in prison, a $1,000,000 fine, five years of post-release supervision and restitution in the amount of loss.
Pullen was released pending his trial on a $5,000 secured bond. His trial is currently set for November 23, 2015.
This matter is being handled by the United States Attorney’s Office for the Northern District of Mississippi, FDIC – Office of Inspector General, Dallas Regional Office and USDA – Office of Inspector General, Southwestern Region.
Former UN General Assembly President and Five Others Charged in $1.3 Million Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-In-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Thomas E. Bishop, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced today that former United Nations (“UN”) Ambassador for Antigua and Barbuda (“Antigua”) and President of the UN General Assembly (“UNGA”) JOHN W. ASHE, Deputy UN Ambassador for the Dominican Republic FRANCIS LORENZO, NG LAP SENG, a/k/a “David NG” (“NG”), JEFF C. YIN, a/k/a “Yin Chuan,” SHIWEI YAN, a/k/a “Sheri YAN,” and HEIDI HONG PIAO, a/k/a “Heidi Park,” were charged in connection with a multi-year scheme to pay more than $1.3 million in bribes to ASHE in exchange for official actions in his capacity as UNGA President and Antiguan government official in support of Chinese business interests. LORENZO, NG, YIN, YAN, and PIAO are charged with multiple bribery-related counts. ASHE is charged with tax fraud for failure to report or pay income taxes on the over $1 million he received in bribes in 2013 and 2014. YAN and PIAO are also charged with laundering bribery money from China. ASHE was arrested in Dobbs Ferry, New York, and LORENZO, YAN, and PIAO were arrested in New York, New York, this morning, and are scheduled to appear before U.S. Magistrate Judge James C. Francis IV in Manhattan federal court later today. NG and YIN were previously arrested on September 19, 2015, based on a separate complaint alleging that NG and YIN agreed to make false statements to Customs and Border Protection officers about the true purpose of approximately $4.5 million in cash that NG and YIN had brought into the U.S. from China since 2013.
U.S. Attorney Preet Bharara said: “If proven, today’s charges will confirm that the cancer of corruption that plagues too many local and state governments infects the United Nations as well. As alleged, for Rolexes, bespoke suits, and a private basketball court, John Ashe, the 68th President of the UN General Assembly, sold himself and the global institution he led. United in greed, the defendants allegedly formed a corrupt alliance of business and government, converting the UN into a platform for profit. We will continue to do everything we can to root out public corruption – whether we find it in a city council, in Albany, or as here, in the United Nations.”
FBI Assistant Director-In-Charge Diego Rodriguez said: “The charges announced today are sending a message to those who come to the United States from other countries with corruption plans or bags full of cash - no one is above or beyond the law. Investigating public corruption remains a top priority for the FBI.”
IRS-CI Acting Special Agent-in-Charge Bishop said: “IRS-Criminal Investigation is committed to ensuring that everyone pays their fair share of taxes, regardless of an individual’s position, wealth or prominence. Everyone is expected to report all of their income, even if the income comes from an illegal source, including bribes. We are always ready to partner with the United States Attorney’s and the FBI on investigations involving allegations of misuse of positions of public trust and their impact on tax compliance.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
Since approximately 2011, ASHE has been soliciting and accepting bribes from various businesspeople in China seeking to influence the actions of the UN and officials in ASHE’s home country of Antigua. ASHE solicited and took the bribes at the time when he served as UN Ambassador for Antigua and as the 68th President of the UN General Assembly. The bribes were facilitated by LORENZO, NG, YIN, YAN, and PIAO, among others, who arranged for the transmission and laundering of over $1 million of bribery money from sources in China. In exchange for the bribes, ASHE agreed to and did perform official actions for businesspeople who were seeking benefits from the UN and Antigua. Among other things, ASHE accepted over $500,000 of bribes facilitated by LORENZO and YIN from NG, who was seeking to build a multibillion-dollar, UN-sponsored conference center in Macau, China (the “UN Macau Conference Center”). In exchange for these payments from NG, among other actions, ASHE submitted a UN document to the UN Secretary General, which claimed that there was a purported need to build the UN Macau Conference Center. In addition, ASHE received over $800,000 in bribes from various Chinese businessmen arranged through YAN and PIAO and, in return for these bribes, ASHE advocated for these businessmen’s interests within the UN and with senior Antiguan government officials, including the country’s then-Prime Minister (the “Prime Minister”), with whom ASHE shared a portion of the bribe payments.
During the course of the scheme, defendant ASHE solicited and received bribes in various forms, including cash and payments to third parties to cover ASHE’s personal expenses, such as a family vacation and construction of a private basketball court at his house in Dobbs Ferry, New York. ASHE also transferred the bribery money to his personal bank accounts, primarily through checks he wrote to himself for a purported “salary” (although he already collected a salary from the Government of Antigua). ASHE then used the bribe money for his personal expenses, such as paying the mortgage on his house in Dobbs Ferry, making his BMW lease payments, and buying luxury items such as Rolex watches and custom suits. During the same period of time, ASHE failed to report sufficient income to the Internal Revenue Service (“IRS”) to account for the self-described salary and other bribes he received. In total, ASHE underreported his income to the IRS by more than $1.2 million in tax years 2013 and 2014 alone.
The Scheme by LORENZO, NG, and YIN to Bribe ASHE
As alleged in the Complaint, the scheme began in or about the spring of 2011, when ASHE was approached by LORENZO, the Deputy Permanent Representative to the UN for the Dominican Republic. Since in or about 2010, in addition to being the Dominican Republic’s representative to the UN, LORENZO has also been the “Honorary President” of a New York-based nongovernmental organization created by NG (“NGO-1”), which purportedly is a “21st century media platform” whose mission is to advance the implementation of the UN’s Millennium Development Goals
In the spring of 2011, LORENZO invited ASHE to fly to Macau, China, to meet with NG. As alleged in the Complaint, NG was interested in bribing ASHE in order to acquire business interests in Antigua and to obtain UN support for his proposed UN Macau Conference Center. ASHE agreed to meet NG in Macau in exchange for LORENZO buying ASHE and his family a trip to New Orleans, including first-class airline tickets and a luxury hotel suite. After ASHE’s meeting with NG in Macau, ASHE told LORENZO that he had arranged for NG to meet with the then-Prime Minister of Antigua to discuss “concrete investment opportunities, including the immediate acquisition of hotel properties.” ASHE also then began soliciting additional payments from LORENZO to pay for the installation of a private basketball court at ASHE’s house in Westchester County. In addition to agreeing to pay for ASHE’s family vacation and basketball court, LORENZO began paying ASHE’s wife, as a “climate change consultant” for NGO-1, in the amount of $2,500 per month.
After initially focusing on paying ASHE to obtain access to the then-Prime Minister and other Antiguan officials to further NG’s effort to invest and acquire property in Antigua, LORENZO and NG then decided to use ASHE to seek to obtain UN support for NG’s proposed UN Macau Conference Center. In February 2012, LORENZO drafted a UN document in ASHE’s name for ASHE to submit to the UN Secretary General in support of the development of NG’s UN Macau Conference Center. After exchanging several drafts of the UN Document with LORENZO, on February 24, 2012, ASHE submitted the final document to the UN. LORENZO used the UN document in promotional materials for NG’s conference center with other officials and an investment banking firm, using the document to imply that the conference center NG was seeking to develop was likely to be supported in some fashion by the United Nations.
In early 2013, YIN, who serves as NG’s principal assistant, repeatedly pressed LORENZO to make progress on NG’s request and threatened to halt the payments to LORENZO unless progress was made. Following the repeated demands by YIN (on NG’s behalf), LORENZO arranged for ASHE to issue a revised UN document that specifically promoted NG’s private company – by name – as the developer of the proposed conference center.
Later, LORENZO arranged for ASHE to travel to Macau with other UN officials to meet with NG in exchange for a $200,000 payment from NG to an account that ASHE had set up in the name of the President of the General Assembly, his role at the time. Prior to agreeing to make the trip, ASHE told LORENZO, “Even though NG has made a lot of empty promises in the past, I am willing to travel to Macau to see his project, since it is important to him. But it has to [be] made absolutely clear to him that I will not go unless I see the funds - funds which are NOT for my personal use but to help run the PGA office. Period. Please let them know that I am requesting somewhere between $100K and $250K.” Although ASHE claimed the funds would not be used by him personally, as described in detail in the Complaint, ASHE transferred the vast majority of funds that were paid to ASHE to ASHE’s personal account with his wife and used them to pay for personal expenses.
The Scheme by YAN and PIAO to Bribe ASHE
In addition to soliciting bribes from LORENZO, YIN, and NG, ASHE also solicited and received payments from YAN and PIAO, who represented other Chinese businessmen seeking to invest in or obtain favors from Antiguan government officials. In particular, as alleged in the Complaint, YAN and PIAO arranged for over $800,000 of payments to ASHE in exchange for official favors by ASHE and other Antiguan officials for various Chinese businessmen.
The initial payment arranged by YAN and PIAO was a $300,000 payment on behalf of a Chinese media executive referred to as “CC-1” in the Complaint. After receiving the payment, ASHE reported that he had traveled to Antigua “to meet with all the key decision makers to discuss [CC-1’s] plans; that I had the initial resources in hand (and which have now been fully utilized), certainly served the intended purpose of focusing minds and getting the conversation started.” Financial records reflect that ASHE sent $100,000 of CC-1’s payment to the Prime Minister of Antigua, and sent more funds to other Antiguan political interests.
In August 2013, YAN and PIAO began paying ASHE approximately $20,000 per month to be the “Honorary Chairman” of a new New York-based non-governmental organization (“NGO-2”), of which YAN serves as the CEO, which purportedly was formed to promote the UN’s sustainable development goals.
The next month, after ASHE formally assumed his one-year term as UNGA President, YAN and PIAO arranged for another Chinese businessman, referred to as “CC-2” in the Complaint, to send ASHE $100,000 purportedly to pay for a UN reception in honor of ASHE’s presidency. Approximately one month later, YAN and PIAO arranged for PIAO to travel with ASHE and CC-2 to meet with Antiguan officials about a $20 million deal for CC-2’s company to install a “national internet security system” for Antigua. ASHE’s intercession on CC-2’s behalf resulted in a signed “memorandum of understanding” between CC-2’s company and the Government of Antigua to move forward with CC-2’s project. ASHE also used his position as UNGA President to promote CC-2’s company to officials with the Government of Kenya. ASHE paid a portion of these bribe payments to the Prime Minister of Antigua.
In addition, YAN and PIAO arranged for ASHE to be paid $200,000 (plus travel expenses) in exchange for attending and speaking in ASHE’s official capacity at a private conference in China hosted by a Chinese real estate developer identified as CC-3 in the Complaint. In addition to attendance at the conference, CC-3 also sought to “offer [ASHE] a permanent convention venue for the UN meetings on sustainability and climate changes . . . as well as for the 193 members of the UN to convene. . . .”
ASHE’s Tax Fraud
As alleged in the Complaint, in 2013 and 2014, while ASHE was UNGA President, he solicited and received payments from LORENZO, NG, YIN, YAN, PIAO, and others, to business accounts he personally created in the name of the President of the General Assembly. More than $1 million of the money that ASHE solicited to allegedly support his UN Presidency ASHE then transferred to himself, primarily in the form of $25,000 monthly checks written to and by him with the memo line “salary” (notwithstanding the fact that he already received a salary from the Government of Antigua). During these years, ASHE was also paid approximately $200,000 annually in “consulting” income from LORENZO, NG, PIAO, and YAN. For tax years 2013 and 2014, ASHE filed tax returns that materially failed to account for the income he was deriving from his purported salary payments and his “consulting” contracts. Specifically, for year 2013, ASHE and his wife underreported their income by approximately $462,350 and, for year 2014, they underreported his income by approximately $796,329.28.
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ASHE, 61, of Dobbs Ferry, New York, is charged with two counts of subscribing to false and fraudulent U.S. individual income tax returns. Each of these counts carries a maximum penalty of three years in prison. LORENZO, 48, of the Bronx, New York, NG, 67, YIN, 29, YAN, 57, and PIAO, 52, are each charged with bribery conspiracy and bribery. The conspiracy charge carries a maximum penalty of five years in prison and the bribery charge carries a maximum penalty of 10 years in prison. YAN and PIAO are also charged with conspiracy to commit money laundering. This charge carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
LORENZO, YIN, YAN, and PIAO are naturalized U.S. citizens. ASHE is a citizen of Antigua and legal permanent resident of the United States. NG is a citizen of China, Portugal, and the Dominican Republic.
U.S. Attorney Bharara praised the work of the FBI and the IRS-CI, who jointly conducted this investigation, and noted that the investigation is ongoing.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal, Rahul Mukhi, and Janis M. Echenberg are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Former Marin County Mortgage Broker Sentenced to 36 Months in PrisonRead the Press Release
SAN FRANCISCO– Paul Sloane Davis was sentenced to 36 months in prison today for a Ponzi scheme he perpetrated along with co-defendant Diane Cobb, announced acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson. The sentencing follows a guilty plea in which Davis admitted to running a fraudulent scheme. Court documents establish that Davis and Cobb profited by more than a million dollars.
Davis, 76, of Santa Rosa, Calif., was charged by indictment on October 31, 2013, for his part in the scheme. According to the indictment, Davis and Cobb, 58, currently a resident of the State of Ohio, operated a financial services company in Marin County known as DM Financial. Through DM Financial, Davis and Cobb offered investors the opportunity to fund purported short-term “bridge loans” to borrowers who, according to Davis and Cobb, needed short-term financing for residential real estate transactions. The defendants fraudulently provided to these investors, among other things, the identity of the purported borrower, a promissory note reflecting the amount and terms of the loan, and a deed of trust securing the loan to the borrower’s real property. Based upon these documents and other representations made by Davis and Cobb, the investors believed the defendants were directing the funds into secured loans with borrowers.
Purported borrowers received none of the investors’ money and did not even know that their identities were being used to solicit investments. Instead, Davis and Cobb diverted substantially all the money—approximately $2.4 million—for their own personal use or to make interest payments to prior investors to keep them from discovering the true nature of the scheme.
Davis was charged with one count of conspiracy, in violation of 18 U.S.C. § 1349; four counts of mail fraud, in violation of 18 U.S.C. § 1341; and nine counts of wire fraud, in violation of 18 U.S.C. § 1343. On March 19, 2015, Davis pleaded guilty to all counts.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer also sentenced the defendant to a three year period of supervised release, and ordered restitution of approximately $1.7 million to the victims of Davis’s offense. Cobb pleaded guilty to the same charges on July 2, 2014, and is scheduled to be sentenced on January 13, 2016, before Judge Breyer.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Manhattan City Attorney Indicted on Child Porn ChargesRead the Press Release
KANSAS CITY, KAN. - The former city attorney of Manhattan, Kan., is scheduled to appear in U.S. District Court in Kansas City, Kan., today on charges of distributing child pornography, U.S. Attorney Barry Grissom said.
Bill D. Raymond, 53, Andover, Kan., is charged with three counts of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in November 2014, February 2015 and May 2015 in Butler and Riley counties.
A federal grand jury indicted Raymond on Sept. 30, 2015.
If convicted, he faces a penalty of not less than five years and not more than 20 years on each distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Iowa City Head Shop Owner Pleads Guilty to Federal Synthetic Drug ChargesRead the Press Release
A man who owned and operated a head shop in Iowa City pled guilty on October 5, 2015, in federal court in Cedar Rapids.
Robert Carl Sharp, age 37, from Peoria, Illinois, was convicted of conspiring to manufacture and distribute a synthetic drug called AB-FUBINACA. He also was convicted of possessing with intent to distribute it.
Court documents reflect that in 2012, in Peoria, Illinois, Sharp began selling, and later manufacturing, smokeable synthetic cannabinoid products which are commonly known as “Spice,” “incense,” or K2. Sharp sold these products in packets that marketed the substances as incense, and contained a warning that the products were “not for human consumption,” although Sharp knew the products were actually intended for human consumption. The synthetic cannabinoids in these products were actually research chemicals that have not been tested or approved as safe for human consumption, and which have unpredictable short-term effects and unknown long-term effects on users.
Sharp eventually moved to Iowa and opened a head shop called Pipe Dreamz in downtown Iowa City. He employed another individual, Wayne Watkins, to manufacture synthetic cannabinoid products called “Gods of Aroma,” “Bizarro,” “AK-47 Cherry Popper,” “Bling Bling Monkey,” “Super Nova,” and “Darkness.” Sharp would order synthetic cannabinoid chemicals and also purchase bulk quantities of dried damiana leaves, a plant material that resembles dried marijuana. Watkins would dilute the synthetic cannabinoid chemical in acetone, and then spray the mixture onto the damiana leaves. Watkins would then add some flavoring and package the substances into the various brands sold by Sharp.
On May 7, 2015, Sharp’s store, his house and storage unit in Center Point, Watkins’s house in Cedar Rapids, and the Pipe Dreamz store in Iowa City were all searched by federal law enforcement. During the searches, officers seized thousands of synthetic cannabinoid products, including the sprayed-on plant variety and a liquid form of the synthetic cannabinoids that was designed for use in e‑cigarettes. Officers seized an active manufacturing operation in Watkins’s house.
At the plea hearing, Sharp stated he was told by the individuals from whom he purchased the substances that he was buying legal chemicals. He admitted at the plea hearing, however, that despite those statements from his suppliers, he believed there was a high probability that the substances he received and distributed were regulated by federal drug laws, but took deliberate actions to avoid learning of the true identity of the substances by refusing to get them tested by a laboratory.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Sharp remains in the custody of the United States Marshal pending sentencing. Sharp faces a possible maximum sentence of 60 years’ imprisonment, a $3,000,000 fine, $300 in special assessments, and a lifetime of supervised release following any imprisonment. Sharp also agreed to forfeit $200,000 in proceeds from the sale of illegal drugs.
The case was investigated by the Iowa City Police Department and as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-31-1-LRR.
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Florida Man Sentenced to 76 Months in Prison for Drug ConspiracyRead the Press Release
NEWARK, N.J. – A Florida man was sentenced today to 76 months in prison for his participation in a drug distribution conspiracy operating out of a residential housing complex in East Orange, New Jersey, U.S. Attorney Paul J. Fishman announced.
Rafael José Santiago-Soto, 30, previously pleaded guilty before U.S. District Judge Esther Salas to conspiring to distribute methylone, a Schedule I controlled substance. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Santiago-Soto participated in a drug distribution conspiracy that spanned several months from 2012 through 2013. In March 2013, the Drug Enforcement Administration (DEA) conducted an investigation resulting in the seizure of more than six kilograms of methylone from an apartment leased by Santiago-Soto, which was being operated as a drug packaging mill.
In addition to the prison term, Judge Salas sentenced Santiago-Soto to three years of supervised release.
U.S. Attorney Fishman praised special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Jason Foy Esq., Hackensack, New Jersey
Five Persons Charged with Heroin TraffickingRead the Press Release
LAS VEGAS, NEV. – Federal charges have been filed against four men and one woman alleging they are part of a large-scale heroin trafficking organization that operated in the Las Vegas area since December 2014, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Juan Almeda-Vazquez, 27, Maria Landin-Hernandez, 28, Rafael Cruz-Rodriguez, 41, Fausto Cruz-Ochoa, 22, and Julian Cruz-Flores, 24, all of Las Vegas, are charged with conspiracy to distribute heroin. All of the defendants except Cruz-Rodriguez, who is in state custody on unrelated charges, were arrested yesterday by federal agents and made an initial appearance in court today before U.S. Magistrate Judge Nancy J. Koppe. They were detained pending a preliminary hearing on Oct. 20.
A criminal complaint alleges that the defendants are involved in large-scale sales, transportation and distribution of heroin and other controlled substances in the Las Vegas area. Almeda-Vazquez is the leader of the organization, and the other four defendants are narcotics runners. Between December 2014 and Oct. 5, 2015, they allegedly distributed about 1.5 kilograms of heroin in Las Vegas. DEA undercover officers made multiple controlled purchases of heroin from the defendants, and also seized approximately ½ kilogram of heroin, several hundred small balloons and rubber bands, and over $5,000 in cash during a search of an apartment in Las Vegas where two of the defendants were arrested on Oct. 5.
The case is being investigated by a DEA-led task force consisting of agents, officers and detectives from the DEA, FBI, IRS Criminal Investigation, Las Vegas Metropolitan Police Department, and North Las Vegas Police Department. The case is being prosecuted by Assistant United States Attorney Amber M. Craig.
The public is reminded that a criminal complaint is a preliminary charging document and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal jury finds Shreveport man guilty of possessing a firearm after a felony convictionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found a Shreveport man guilty of possessing a firearm after being convicted of a felony.
Marcus Milton, 38, of Shreveport, La., was found guilty of one count of possession of a firearm by a convicted felon. United States District Judge Elizabeth E. Foote presided over the trial. The defendant’s trial started Monday and ended today with the jury returning the guilty verdict after deliberating for approximately 45 minutes. Evidence admitted at trial revealed that after executing a probation violation warrant at Milton’s home on December 4, 2014, law enforcement agents found a Tanfoglio semiautomatic pistol and .40 caliber ammunition in the trunk of his vehicle that was parked in front of his residence. Prior to this offense, Milton had other felony convictions, which precluded him from lawfully possessing a weapon.
Milton faces up to 10 years in prison, three years of supervised release, a $250,000 fine and forfeiture of the weapon seized. A sentencing date of January 28, 2016 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and Louisiana Probation and Parole investigated the case. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Eight People Charged in a Bank Fraud Scheme that Allegedly Used Information Stolen by Wells Fargo Employees to Access AccountsRead the Press Release
LOS ANGELES – Special agents with the FBI and the U.S. Secret Service have arrested the lead defendant in a bank fraud case, an Inglewood man who allegedly orchestrated a scheme in which Wells Fargo Bank employees stole customer account information, and other conspirators used that information to impersonate customers and steal money from their accounts.
Ronald Reed is among eight defendants who were charged in two indictments returned by a federal grand jury last week. Three of the defendants have not yet been identified, and authorities are seeking the public’s help in identifying and apprehending the currently unknown individuals.
Reed was arrested yesterday, and two former bank employees surrendered to federal authorities this morning. All three defendants are expected to be arraigned this afternoon in United States District Court.
The indictments charge Reed, four former bank employees and the three unknown individuals in a scheme that caused Wells Fargo to suffer losses of approximately $1.4 million. The scheme detailed in the indictments alleges that Reed recruited four bank employees in 2013 and 2014, asked them to access the bank’s computer records, and then purchased personal identifying information belonging to bank customers, including dates of birth, account numbers, driver’s license numbers and social security numbers. With this information, the currently unidentified “runners” used fake IDs to impersonate bank customers and made substantial cash withdrawals from the customers’ accounts. In some cases, the runners also used the customer’s account to deposit worthless checks and receive cash back. The fraudulent transactions were made at bank branches across Southern California and in other states, including Minnesota and Nevada.
The defendants charged in the indictments are:
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Ronald Reed, also known as “Disco Ronnie,” 69;
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Michael Hester, 35, of Los Angeles, a former Wells Fargo employee;
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Jamal Hurley, 39, of Garden Grove, a former Wells Fargo employee;
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Garrick James Davis-Looney, 22, of Torrance, a former Wells Fargo employee;
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Jonathan Lawrence Cobbs, Jr., 35, of Los Angeles, a former Wells Fargo employee; and
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three defendants identified in the indictment as FNU LNU (First Name Unknown, Last Name Unknown).
All of these defendants are charged with conspiracy to commit bank fraud, as well as various substantive counts of bank fraud, each of which carry a statutory maximum penalty of 30 years in federal prison. Additionally, each of the defendants is charged with at least one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
This matter was jointly investigated by the Federal Bureau of Investigation and the United States Secret Service. Wells Fargo Bank fully cooperated during the investigation.
Members of the public who have information about the three runners who have not yet been identified are asked to call the Federal Bureau of Investigation at (310) 477-6565.
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East Haven Resident Sentenced to More Than 5 Years in Federal Prison for Operating Investment SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN D’AURIA, 41, of East Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 63 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded investors out of nearly $2.4 million.
According to court documents and statements made in court, D’AURIA conducted an investment business using the name Fifth Street Capital. D’AURIA was a licensed and registered investment adviser but lost his license in approximately 2011. From approximately 2010 to 2014, D’AURIA engaged in a scheme to defraud investors who had provided him with investment funds by failing to invest the funds as represented and by using the majority of the funds for his personal use.
As part of his scheme, D’AURIA made false statements and misrepresentations to his investors regarding the purported returns generated by their investments. He also represented to investors that their funds were fully invested in separate accounts. In truth, D’AURIA did not fully invest the investors’ funds but rather commingled the funds in his own personal bank accounts and his own trading account.
As a result of D’AURIA’s scheme to defraud, seven investors lost a total of $2,375,943.49. Today, Judge Shea ordered D’AURIA to pay full restitution.
On July 13, 2015, D’AURIA waived his right to indictment and pleaded guilty to one count of wire fraud.
D’AURIA, who is released on a $100,000 bond, was ordered to report to prison on December 7, 2015.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Senior Litigation Counsel Richard J. Schechter.
Driver from Pennsylvania Sentenced After Arrest with 13 Pounds of CocaineRead the Press Release
TOPEKA, KAN. - A Pennsylvania man stopped on a highway in Kansas with more than 13 pounds of cocaine was sentenced Monday to 10 years in federal prison, U.S. Attorney Barry Grissom said.
Jamal Shareef Williams, 37, Homestead, Penn., pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. In his plea, he admitted he was driving a rented pickup on July 23, 2014, when the Kansas Highway Patrol stopped him on I-70 near exit 322 in Shawnee County. Investigators found the cocaine in metal compartments attached to the rims inside spare tires.
Grissom commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Greg Hough for their work on the case.
Dover Developer Sentenced to a Year and a Day Imprisonment in Bank Fraud Conspiracy CaseRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Salvatore Leone, age 52, of Dover, was sentenced today by U. S. District Court Judge Gregory M. Sleet to 1 year and one day of imprisonment and 3 years of supervised release. Mr. Leone was also ordered to pay restitution in the amount of $784,568.00 to the Wilmington Trust Company.
The sentencing came after Mr. Leone pleaded guilty on October 7, 2013, to one count of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349.
Leone was a project manager for and partner with a prominent developer in several limited liability companies formed for the purpose of developing real estate in or around Dover, Delaware. Between September 24, 2007 and February 27, 2009, Leone and others submitted, or caused to be submitted, false draw requests to Wilmington Trust Company totaling approximately $483,568,000.00. In addition, defendant misappropriated an escalated lease payment totaling $260,000.00.
U.S. Attorney Oberly stated, “The sentence handed down by the Court was justified. Mr. Leone defrauded a financial institution out of a substantial sum of money for his personal gain. Today’s sentence reflects accountability for those actions. Those who seek to enrich themselves at the expense of financial institutions and those institutions’ shareholders will be prosecuted by this office and brought to face the consequences of their unlawful actions.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Office of Inspector General, Board of Governors of the Federal Reserve System and is being prosecuted by Assistant United States Attorneys Lesley Wolf and Robert Kravetz.
District Man Sentenced to 12 1/2 Years in Prison for Stabbing Woman at Post-Holiday Get-TogetherRead the Press Release
WASHINGTON – Hasan Givens, 37, of Washington, D.C., was sentenced today to 12 ½ years in prison for stabbing a woman who asked him to leave a get-together she was hosting during a holiday weekend last year, announced Acting U.S. Attorney Vincent H. Cohen, Jr.
Givens was found guilty by a jury in August 2015 of charges of aggravated assault while armed, assault with a dangerous weapon, and assault with significant bodily injury. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Senior Judge Robert I. Richter. Upon completion of his prison term, Givens will be placed on five years of supervised release.
According to the government’s evidence, the victim had invited Givens, who was an on-again, off-again boyfriend, and two of his close friends to her apartment in Northeast Washington. The group gathered for a casual get-together on Nov. 29, 2014, during Thanksgiving weekend. In the early morning hours of Nov. 30, 2014, the victim asked the guests to leave. Givens became enraged. He threw over the television, charged at her, and stabbed her in the abdomen with a kitchen knife. One of Givens’s friends summoned an ambulance. Givens’s friends worked to save the victim’s life while Givens sat idly on a couch. The knife lacerated the victim’s liver and she was taken to a hospital for emergency surgery.
The victim remained hospitalized for seven days, during which time she received blood transfusions and constant pain medications.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the work of the U.S. Marshals Service, which provided assistance. He expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Mark Crawford; Victim/Witness Advocate Shawn Slade; former Victim/Witness Advocate Maria Shumar; Paralegal Specialist Mark Morse, and Assistant U.S. Attorney Jason Park. Finally, he praised the work of Assistant U.S. Attorney Kara Traster and former Special Assistant U.S. Attorney Courtney Schaefer, who investigated and prosecuted the case.
Cary Man Sentenced to 20 Years for Receiving Child PornographyRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever sentenced ANDREW STEPHEN LAZETERA, 28, of Cary to 240 months imprisonment followed by 15 years of supervised release.
On June 25, 2015, LAZETERA pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to public information, in October, 2014, an investigation was initiated relating to the distribution and receipt of child pornography through a peer-to-peer file sharing network. An Internet Protocol (IP) address was identified and as the investigation continued the subscriber assigned to the IP address was captured and identified as LAZETERA.
On October 31, 2014, a search warrant was executed at LAZETERA’s residence. An initial onsite preview revealed the presence of child pornography on LAZETERA’S computer. LAZETERA who was present at the time of the search, acknowledged receiving and possessing child pornography. Forensic examination of the defendant’s computer and media storage devices revealed approximately 3,400 images of child pornography.
The criminal investigation of this case was conducted by the Cary Police Department and the North Carolina State Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Brooklyn Man Sentenced to More Than 15 Years in Prison for Enticing A Minor to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was sentenced today to 188 months in prison for using the internet to contact minors to get them to engage in criminal sexual conduct and for possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Alexander Nayda, 26, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct and one count of possession of child pornography.
According to documents filed in the case and statements made in court:
Nayda admitted at his plea hearing that between August 2013 and February 2014 he used the internet to induce a 14-year-old girl to engage in criminal sexual conduct, including having intercourse with Nayda on multiple occasions and taking pictures of her genitals for him. Nayda also admitted to enticing seven or eight other underage girls located in several different states to have sexual intercourse with him. In at least one instance, the victim stated that Nayda refused to stop the sexual act when she objected to his advances. Nayda also admitted to using online chat applications to get multiple girls to self-produce images and videos of child sexual abuse to send to him. In one instance, Nayda chatted online with an individual whom he believed to be an 11-year-old girl. Nayda attempted, on multiple occasions, to meet with the 11-year-old for sexual contact. When the girl stated that she wasn’t allowed out after dark, Nayda responded, “How does 3:30 sound?” Nayda also asked many of his victims if they could introduce him to even younger children.
In addition to the prison term, Judge Hayden sentenced Nayda to lifetime supervised release. As part of his guilty plea, Nayda must forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
Defense counsel: Tony Mirvis Esq. Brooklyn, New York
Biddeford Man Sentenced to Probation for Mail DestructionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jason A. McIntyre, 41, of Biddeford, Maine was sentenced yesterday in U.S. District Court by Judge Nancy Torresen to one year of probation for destruction of mail. He was also fined $500. McIntyre pleaded guilty on June 16, 2015.
According to court documents, in September 2013, the United States Postal Service (USPS) hired McIntyre to be an Assistant City Letter Carrier working out of the Saco Annex in Saco, Maine. On November 19th, 21st, 23rd and 25th, 2013, instead of delivering all of the mail on his route, McIntyre threw 576 pieces of mail addressed to 115 addresses into the trash at the Saco Valley Shopping Center where it was discovered by a maintenance man. When confronted, McIntyre admitted to throwing out the mail to avoid having to bring it back to the Annex and face management.
In pronouncing sentence, Judge Torresen observed that McIntyre made a poor decision that caused a lot of inconvenience and could have been worse being that the mail sometimes contains irreplaceable items.
The investigation was conducted by the USPS’s Office of Inspector General.Berkeley County, WV man convicted of cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Thomas Edward King, Jr., 43, of Falling Waters, West Virginia, was convicted of cocaine trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
King sold cocaine in Berkeley County, West Virginia. He pled guilty today to one count of “Distribution of Cocaine Base.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Stephanie Taylor and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Ava Man Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Ava, Mo., man has been indicted by a federal grand jury for producing child pornography.
Brett Corcoran, 25, of Ava, was charged in an indictment returned under seal by a federal grand jury in Springfield, Mo., on Sept. 30, 2015. That indictment was unsealed and made public today upon Corcoran’s arrest and initial court appearance. Corcoran remains in federal custody pending a detention hearing on Thursday, Oct. 8, 2015.
The federal indictment alleges that Corcoran used a minor victim to produce child pornography between Jan. 1 and May 13, 2015.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Mary’s County, Maryland, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Australian Man, Who Ran Third Largest Car Dealership in the United States and Was Fugitive for 24 Years, Pleads Guilty in $50 Million Scheme that Defrauded Multiple Banks in the 1980sRead the Press Release
LOS ANGELES – An Australian man, who ran the third largest car dealership in the United States before he fled the country 27 years ago, pleaded guilty late yesterday afternoon to federal charges for bank fraud and lying to banks.
Eminiano “Jun” Reodica, Jr., 71, ran a fraud scheme that caused nearly $50 million in loss to the banks in the 1980s. At that time Reodica was the President of the Grand Wilshire Group of Companies, which included Grand Chevrolet, then the third largest car dealership in the country. The Grand Wilshire Group was headquartered in Glendora, California.
In his guilty plea yesterday, Reodica admitted to engaging in schemes to defraud and making false statements to at least five banks, including Union Bank, Imperial Savings, First Los Angeles Bank, Manilabank, and First Central Bank, from 1984 to 1988. Specifically, Reodica admitted to promising the same car contract as collateral to two different banks at the same time. This scheme involved directing employees to forge customer signatures on car contracts and then promising the forged contract to a second bank. The fraudulent conduct also involved repossessing and reselling cars without telling the banks. Reodica also admitted to hiding from the banks that customers were delinquent on their car loans. Reodica admitted that he made his employees sign for car loans for cars that they were not really buying so that Reodica could put more money into his businesses.
As a result of Reodica’s fraud and false statements, the Grand Wilshire Group and Grand Chevrolet collapsed into bankruptcy in August of 1988 while Reodica fled the United States to his native Philippines. He was missing for over 24 years until FBI agents arrested him at Los Angeles International Airport in November of 2012. At the time of his arrest, Reodica was traveling using an Australian Passport in the name of Roberto Coscolluela.
“The guilty pleas by this defendant should be a warning to all fugitives facing charges in federal court that the United States Department of Justice and the United States Attorney’s Office have a very long memory,” said United States Attorney Eileen M. Decker of the Central District of California.
Reodica pleaded guilty before United States District Judge S. James Otero, who is scheduled to sentence the defendant on February 1, 2016. At sentencing, Reodica will face a statutory maximum sentence of 79 years in federal prison and a fine of $6,500,000 or twice the loss resulting from his offenses.
The charges in the indictment are the result of an investigation conducted by the Federal Bureau of Investigation (FBI) in the late 1980s and early 1990s as well as investigation conducted by the FBI in the last three years.
Atlanta Man Sentenced for Fraud Scheme that Used Homeless to Cash Counterfeit ChecksRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Atlanta, Ga., man has been sentenced in federal court for his role in a bank fraud conspiracy that used homeless persons to cash counterfeit checks in the Kansas City metropolitan area and nationwide.
More than $400,000 in counterfeit checks was passed in the Kansas City area over the course of a few months in late 2012 and early 2013. Nationwide, more than $8 million in counterfeit checks was passed by various crews that traveled across the country to steal business mail, create counterfeit payroll checks and recruit homeless men to cash the counterfeit checks.
Marion Anthony Norwood, also known as “Wee-Wee,” 47, of Atlanta, was sentenced by U.S. District Judge Beth Phillips on Monday, Oct. 5, 2015, to 12 years in federal prison without parole. The court also ordered Norwood to pay more than $200,000 in restitution.
On Aug. 20, 2014, Norwood was convicted at trial of participating in a conspiracy to commit bank fraud. Norwood was the leader of a crew that traveled to Kansas City and recruited homeless men to pass computer-generated counterfeit payroll checks at local banks. The scheme also involved the theft of mail at businesses, where the perpetrators looked for company checks to use as templates to make the counterfeit checks. Norwood manufactured and printed the counterfeit checks and gave them to co-conspirators.
Norwood traveled to Kansas City in November 2012 with Gary Merritt, 56, of Kansas City, Kan. (formerly of Atlanta). Merritt’s role in the conspiracy was to find homeless men in Kansas City and recruit them to pass counterfeit payroll checks at local banks. Anthony Bernard Lowe, 53, and Marcus Bryant, 33, both of Atlanta, traveled together from Atlanta and met Norwood and Merritt in Kansas City.
In a separate but related case, Merritt and Bryant each pleaded guilty and were sentenced to five years in federal prison without parole. Lowe pleaded guilty and was sentenced to four years and nine months in federal prison without parole.
Conspirators made a second trip to Kansas City shortly after Christmas in 2012 to continue the scheme with counterfeit checks that were manufactured and printed by Norwood.
Conspirators returned to Kansas City in January 2013 to continue the scheme with counterfeit checks that were manufactured and printed by Norwood. Some of the conspirators then traveled to Lincoln, Neb., to continue the counterfeit check scheme.
This case was prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the U.S. Postal Inspection Service, the Kansas City, Mo., Police Department, the Leawood, Kan., Police Department and the Atlanta, Ga., Police Department.
Albuquerque Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Anthony F. Romero, Jr., 37, of Albuquerque, N.M., pleaded guilty this morning in federal court to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Romero was arrested on May 26, 2015, on an indictment charging him with violating SORNA by failing to update his sex offender registration in Bernalillo County, N.M.
Today, Romero pled guilty to a felony information and admitted that his last registration as a sex offender was on Nov. 20, 2014, and that at the time of his arrest on May 26, 2015, he had not renewed nor attempted to renew his registration.
At sentencing, Romero faces a statutory maximum penalty of ten years in federal prison followed by a minimum of five years of supervised release. Romero will also be required to register as a sex offender following his term of incarceration. Romero remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
31 Defendants Charged with Drug Trafficking, Firearms and Money Laundering Offenses Following Undercover InvestigationRead the Press Release
United States Attorney for the Middle District of Georgia, Michael J. Moore, announced today that an indictment was returned by a grand jury sitting in the United States District Court in Macon, Georgia on September 9, 2015, which charged 31 defendants with drug trafficking, firearms and money laundering offenses. During “Makon Money”, Federal agents, assisted by state and local law enforcement officers, investigated a large scale drug organization based in Macon, Georgia. Over the course of the investigation, federal agents seized large amounts of cocaine, marijuana, and cash.
Penalties for the charges range from a mandatory minimum 5 years up to life in prison without parole. Fines range from $250,000 to 10 million dollars.
United States Attorney Michael Moore stated, “This drug distribution conspiracy was literally responsible for putting tons of poison on the streets of Middle Georgia. Just like we have done here, my office will use all of our resources to make sure that drug dealers go to prison.”
Thomas Noyes, Inspector in Charge of the Charlotte Division stated, “Postal Inspectors’ primary objectives are to rid the mail of illicit drug trafficking, preserve the integrity of the mail, and most important, provide a safe environment for postal employees and the American public. This is an excellent example of partnership between law enforcement agencies.”
“IRS Criminal Investigation is proud to be an integral part of this multi-agency OCDETF investigation,” stated Veronica F. Hyman-Pillot, Special Agent in Charge of the Atlanta Field Office. “It is our goal as financial investigators to assist our law enforcement partners in dismantling drug trafficking organizations at every level. IRS-CI has the financial investigators and expertise that is critical to locating the money and prosecuting the offenders.”
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.
The case was investigated by the US Postal Inspection Service (USPIS), the Drug Enforcement Administration (DEA), the Internal Revenue Service – Criminal Investigation (IRS-CI), the U.S. Department of Homeland Security, the Bibb County Sheriff’s Office, and the Oconee Regional Drug Task Force. Assistant U.S. Attorneys Charles Calhoun and Beth Howard are prosecuting the case for the Government.
For additional information, please contact Pamela Lightsey at (478) 621-2603.
DEFENDANTS
AGE
HOMETOWN
1) JAMES MAXWELL, aka SONNY SPOON
42
Lizella, GA
2) IRA CHRISTOPHER JACKSON
31
Missouri City, TX
3) FREDERICK CARTER
38
Pearland, TX
4) ALEJANDRO SOLORIO
37
Arcata, CA
5) RICHARD HARVEY
26
Arcata, CA
6) CYRON NORMAN
29
Walnut Creek, CA
7) ROME OWENS
24
Arcata, CA
8) SHUKREE SIMMONS
37
Atlanta, GA
9) BERNARD ENGRAM
49
Macon, GA
10) JERIMEE PARKER
37
Macon, GA
11) JOSEPH PIERRE BROWN
40
Macon, GA
12) MICHAEL THOMPSON
42
Macon, GA
13) DONZELL HUDSON
44
Oglethorpe, GA
14) BRIONI JOHNSON
34
Macon, GA
15) CHANCELLOR LUCEAR
34
Macon, GA
16) ALFRED BROWN
32
Macon, GA
17) ADRIAN GREEN
31
Hawkinsville, GA
18) JAMES FAULKES
36
Macon, GA
19) MAURICE PEARSON
36
Macon, GA
20) VONTRAY JOHNSON
31
Macon, GA
21) RODERICK PAUL
43
Cordele, GA
22) WILLIAM STORY
38
Macon, GA
23) KENNA MIDDLETON
34
Macon, GA
24) SHANNA LEWIS
35
Macon, GA
25) AARON HALL
33
Macon, GA & Houston, TX
26) TYREE WALKER
42
Macon, GA
27) CHRISTOPHER DARKINS
41
Houston, TX
28) WILLIAM SHAMONE LEWIS
36
Macon, GA
29) KELLY TIMMS
Unknown
Jackson, GA
30) CAMERON KELLEY
34
Houston, TX
31) JARVIS SMITH
25
Macon, GA
5 October 2015
Wisconsin Man Sentenced for Polo Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lublin, Wisconsin man was sentenced in federal court today for robbing a Polo, Mo., bank.
Oran Woodfin, 31, of Lublin, was sentenced by U.S. District Judge Dean Whipple to seven years and six months in federal prison without parole.
On April 2, 2015, Woodfin pleaded guilty to stealing $7,867 from Bank Northwest, 305 Main Street in Polo, on Friday, Jan. 9, 2015.
According to court documents, Woodfin entered the bank, approached a bank teller and ordered her, “Give me your money.” He kept his left hand inside his jacket as though he had a weapon. The teller pleaded with him, “Don’t shoot me,” and placed the cash from her teller drawer on the counter. Woodfin picked up the money and walked out of the bank.
Bank surveillance photos indicated the robber was driving a red Dodge extended cab pickup truck with a black canvas tonto cover in the bed of the truck. A witness to the robbery observed the truck had a broken driver’s side taillight cover although the bulb was still functioning. Photographs of the robber and the pickup truck were disseminated to the media.
On the same day as the robbery, Woodfin checked into the Super 8 Motel in Richmond, Mo. Employees at the motel saw the surveillance photos on a television newscast, thought that Woodfin and his vehicle matched the descriptions from the bank robbery and the photos, and notified the police department.
Richmond police officers arrested Woodfin without incident outside his motel room. Officers executed a search warrant at the motel room and seized $7,145, a new computer, clothes and a container of alcohol. The pickup truck had been reported as stolen out of Clark County, Wisconsin. Woodfin had a warrant for his arrest out of Wisconsin for a probation and parole violation.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Caldwell County, Mo., Sheriff’s Department, the Polo, Mo., Police Department, the Richmond, Mo., Police Department, the Ray County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
Whittier Woman Sentenced to Nearly 6 Years in Prison for Having Duped 400 Victim Homeowners – Many Spanish Speakers – of Nearly $4 Million with False Promises of Eliminating Their MortgagesRead the Press Release
LOS ANGELES—A Whittier woman was sentenced today to nearly 6 years in prison for her lead role in a scheme that falsely promised to eliminate mortgage debts for approximately 400 distressed homeowners who each paid a $15,000 fee, totaling nearly $4 million in victim payments. Instead of working on behalf of the homeowners, the woman simply sent worthless “Sovereign Citizen” paperwork to lenders—paperwork that did nothing to affect the mortgage of a single homeowner.
Maria Marcela Gonzalez, 45, was sentenced by Judge Stephen V. Wilson in United States District Court in Los Angeles, for two counts of making a false bankruptcy declaration. In rejecting her request for a probationary sentence and imposing the 70-month sentence, Judge Wilson said that the defendant’s actions were “callous and in gross disregard of the law.”
Gonzalez, who pled guilty in July of this year, started the Crown Point Education Inc. scheme in early 2010 and operated from offices in Montebello. She admitted in her plea agreement that she spoke at seminars to recruit distressed homeowners and salespersons in the Crown Point program and ran the day-to-day operations of the scheme. Many of the victims were primarily or exclusively Spanish speakers.
In her plea agreement, Gonzalez admitted that she and others promised distressed homeowners at these seminars that, in exchange for fees that were generally $15,000 per property, Crown Point would eliminate the homeowners’ mortgages within six to eight months through a secret process that involved sending packets of documents to lenders. Even though she told victims that she could eliminate their mortgage woes, Gonzalez admitted in her plea agreement that the process had never been successful. Gonzalez failed to tell distressed homeowners that earlier Crown Point clients had lost their houses to foreclosure and been evicted from their houses.
In the plea agreement, Gonzalez admitted that she worked with co-schemer Jude Lopez, who was also convicted and sentenced to a probationary term, and Ernesto Diaz, who was charged but failed to appear and is currently a fugitive. Lopez admitted in his plea agreement that he filed bankruptcy documents in the names of Crown Point clients to delay foreclosure and eviction. Diaz admitted in his plea agreement that Crown Point filed many bankruptcy documents without the knowledge of the company’s clients and that signatures of debtors and notaries were forged on many documents filed with the bankruptcy court.
The claims made to distressed homeowners were based on discredited Sovereign Citizen claims that mortgages are invalid because the banks did not actually lend the money used to fund mortgages, and the notes were securitized.
The case against Gonzalez, Diaz, and Lopez was conducted by the Federal Bureau of Investigation.
Wheeling man convicted in Pittsburgh, PA to WV and OH heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – John D. McKee, 30, of Wheeling, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
McKee participated in a drug trafficking operation in which heroin was transported across state lines from Pittsburgh, Pennsylvania to locations in West Virginia and Ohio for redistribution and sale. McKee was among six individuals charged in an 18-count federal indictment in June 2015.
McKee, along with other individuals, sold heroin in January 2015 near a private elementary school in Marshall County, West Virginia. He pled guilty today to one count of “Aiding and Abetting the Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge James E. Seibert presided.
Wettengel Elementary School Invites Assistant U.S. Attorney Rosetta San Nicolas for Career DayRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Assistant U.S. Attorney (AUSA) Rosetta San Nicolas was invited to speak at Wettengel Elementary School for Career Day on May 21, 2015. AUSA San Nicolas spoke to three 5th grade classes with approximately 25 students in each class. AUSA San Nicolas shared the educational process of becoming an attorney and her duties as an AUSA. She also conducted a “Bullying, Cyberbullying and Internet Safety presentation.”
The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands, continues to conduct presentations at various schools on the topics of “Bullying, Cyberbullying and Internet Safety.” If your school would like a presentation by U.S. Attorney Limtiaco, please email [email protected] to make arrangements.
AUSA San Nicolas addressing the students
AUSA San Nicolas addressing the studentsWest Hartford Tax Preparer to Serve Time in Prison for Filing False ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HAI T. LE, 44, of West Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 10 days of imprisonment and three years of supervised release for filing false tax returns. Judge Meyer also ordered LE to perform 240 hours of community service and pay full restitution to the U.S. Treasury.
According to court documents and statements made in court, LE prepared federal income tax returns for individuals in his community, many of whom were family or friends. When undertaking the tax return preparation, LE typically asked his clients to provide him their prior returns, purportedly so that LE could verify relevant information. LE prepared the current year return, but also made and kept copies of the prior returns. After certain clients received the current year refund, LE improperly used the prior returns to prepare false amended returns purportedly on behalf of his clients. The amended returns included false information, including unwarranted residential energy credits, education credits, and tuition and fees deductions, and incorrectly reflected that the taxpayer was entitled to an additional refund.
Unbeknownst to his clients, LE filed the amended returns with the Internal Revenue Service and included his own residence as the return address. In most cases, the IRS sent a refund check to the listed address. LE then endorsed his client’s name and his own on the reverse of the check to make it appear that the check had been signed over to him. He then deposited the check into one of his bank accounts and used the funds for living expenses and the purchase of a $50,000 Certificate of Deposit.
Between March 2010 and August 2010, LE prepared and filed 28 fraudulent federal amended tax returns, utilizing his clients’ information without their knowledge in order to obtain a total of $138,826 in refunds. Six refunds totaling $32,752 were stopped prior to a check being issued, resulting in an initial actual loss to the IRS of $106,074. LE returned approximately $77,000 of the stolen monies when confronted by the IRS, and now owes the remainder with the ordered restitution.
On April 28, 2015, LE pleaded guilty to three counts of filing a false claim with the Internal Revenue Service.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
United States Obtains $255,000 Settlement of Disability Discrimination Lawsuit Against Continuing Care Retirement Community in Lincolnshire, IllinoisRead the Press Release
The Justice Department announced today that it has reached a settlement that resolves allegations that the owners and managers of a continuing care retirement community known as Sedgebrook violated the Fair Housing Act by instituting policies and maintaining practices that discriminated against residents with disabilities at the facility, which is located in Lincolnshire, Illinois.
The proposed settlement, which still must be approved by the court, was filed today, along with a complaint, in the United States District Court for the Northern District of Illinois. The complaint alleges that since 2011, Sedgebrook has instituted a series of policies that prohibited, and then limited, residents’ ability to dine in the communal dining rooms of the independent living wing of the facility if they required assistance eating due to a disability. Additionally, the complaint alleges that Sedgebrook maintained a policy prohibiting residents of the independent living wing from hiring live-in caregivers and refused to grant reasonable accommodations to that policy that would have allowed Sedgebrook residents with disabilities to use and enjoy their apartments.
Under the settlement, Sedgebrook will pay $210,000 into a settlement fund to compensate residents and family members who were harmed by these policies. Sedgebrook will also pay a $45,000 civil penalty to the United States. In addition, Sedgebrook will appoint a Fair Housing Act compliance officer and will implement a new dining and events policy, a new policy applicable to residents’ private employment of caregivers, and a new reasonable accommodation policy. Additionally, Life Care Services LLC, the company that manages Sedgebrook and is a named defendant in the lawsuit, will take steps to implement similar policies at the over 100 independent living and continuing care retirement communities it owns or manages across the country.
“This consent order will ensure that all residents with disabilities at Sedgebrook are treated equally and that residents are able to get the assistance they need in the dining room and in the other central areas of their lives,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We are very pleased with the steps Life Care Services and Sedgebrook are taking to embrace new, non-discriminatory policies and help make them the standard, industry-wide.”
“Equal opportunities must be afforded to individuals who require assistance due to a disability,” said U.S. Attorney Zachary T. Fardon of the Northern District of Illinois. “The proposed settlement represents a significant step towards ensuring all members of the Sedgebrook community are treated justly.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the consent order. Persons who believe they were subjected to unlawful discrimination at Sedgebrook should contact the Justice Department toll-free at 1-800-896-7743 mailbox #995, or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 and leave a message at mailbox #995, e-mail the Justice Department at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
U.S. and Five Gulf States Reach Historic Settlement with BP to Resolve Civil Lawsuit over Deepwater Horizon Oil SpillRead the Press Release
The United States today joins the five Gulf states in announcing a settlement to resolve civil claims against BP arising from the April 20, 2010 Macondo well blowout and the massive oil spill that followed in the Gulf of Mexico.
This global settlement resolves the governments’ civil claims under the Clean Water Act and natural resources damage claims under the Oil Pollution Act, as well as economic damage claims of the five Gulf states and local governments. Taken together this global resolution of civil claims is worth $20.8 billion, and is the largest settlement with a single entity in the department’s history.
Also today, consistent with the settlement, the Deepwater Horizon Trustees Council, made up of representatives of the five Gulf states and four federal agencies, has published a draft damage assessment and restoration plan and a draft environmental impact statement. The plan includes a comprehensive assessment of natural resource injuries resulting from the oil spill and provides a detailed framework for how the trustees will use the natural resource damage recoveries from BP to restore the Gulf environment.
“Building on prior actions against BP and its subsidiaries by the Department of Justice, this historic resolution is a strong and fitting response to the worst environmental disaster in American history,” said Attorney General Loretta Lynch. “BP is receiving the punishment it deserves, while also providing critical compensation for the injuries it caused to the environment and the economy of the Gulf region. I am proud that the Department of Justice has helped lead the way from tragedy to opportunity, and I am confident that our actions today will help to ensure that Gulf communities emerge from this disaster stronger and more resilient than ever before.”
“Five years after one of the worst environmental disasters in our nation's history, which claimed 11 lives and caused untold damage, we have reached a historic milestone with today's settlement,” said Secretary of Commerce Penny Pritzker. “With this settlement, federal, state and local governments and the Gulf coast communities will have the resources to make significant progress toward restoring ecosystems, economies, and businesses of the region. We are committed to ensuring the Gulf Coast comes back stronger and more vibrant than before the disaster. If made final, the settlement will provide the U.S. and Gulf states with the resources and certainty needed for effective restoration planning and improvements.”
“This agreement brings renewed hope for a fully restored Gulf of Mexico to millions of Americans who value the Gulf for its contributions to our economy, our environment and plentiful recreational opportunities,” said Interior Secretary Sally Jewell. “Today’s settlement is a significant step in restoring the natural resources that were impacted by the Deepwater Horizon oil spill and a breakthrough for building back the resilience of this region. The Trustees will continue to work with people along the coast to ensure they have every opportunity to be engaged in these meaningful recovery and restoration efforts that will generate jobs, improve water quality, support our tribal responsibilities and result in an improved wildlife habitat for migratory birds and hundreds of vulnerable species.”
“Through this historic settlement, USDA will continue working with rural communities, landowners and other partners to conserve watersheds and working lands,” said Agriculture Secretary Tom Vilsack. “This work will benefit the Gulf of Mexico and its associated natural resources as well as help local economies that were damaged by the Deepwater Horizon Oil Spill.”
“Today is a day of justice for every family and every Gulf community whose health, land, water, and livelihoods were threatened by the Deepwater Horizon disaster,” said Administrator Gina McCarthy of EPA. “This settlement puts billions of dollars to work to help restore the Gulf, and holds BP publically accountable for changes to its practices, to prevent this kind of disaster from happening again.”
“Today’s settlement ensures that BP repays the Government for its costs in responding to the Deepwater Horizon tragedy,” said Admiral Paul Zukunft of the U.S. Coast Guard Commandant. “The historic civil penalty also sends a clear message of accountability for those who pollute the U.S. environment. In addition, this settlement is a positive step toward restoring our Gulf Coast to health and to ensure that it remains a national centerpiece for economic prosperity, a place of recreation and, most importantly, a pristine home to the generations of Americans who work and reside along its bays, rivers and estuaries.”
On April 10, 2010, less than 50 miles off the coast of Louisiana, the Macondo well suffered a catastrophic blowout. The ensuing explosion and fire destroyed the Deepwater Horizon drilling rig, killing 11 men aboard and sending more than three million barrels of oil into the Gulf of Mexico over a period of nearly three months. Oil flowed within deep ocean water currents hundreds of miles away from the blown-out well, resulting in oil slicks that extended across more than 43,000 square miles, affecting water quality and exposing aquatic plants and wildlife to harmful chemicals. Oil was deposited onto at least 400 square miles of the sea floor and washed up onto more than 1,300 miles of shoreline from Texas to Florida.
The spill damaged and temporarily closed fisheries vital to the Gulf economy, oiled hundreds of miles of beaches, coastal wetlands and marshes and killed thousands of birds and other marine wildlife, among other economic and natural resource injuries.
On Dec. 15, 2010, Attorney General Eric Holder announced a civil lawsuit against BP and several co-defendants, seeking to hold them accountable for the Deepwater Horizon disaster. The federal lawsuit culminated in a three-phase civil trial in which the United States proved, among other things, that the spill was caused by BP’s gross negligence.
Each of the Gulf States – Alabama, Florida, Louisiana, Mississippi and Texas – also filed civil claims against BP relating to the spill, including claims for economic losses and natural resource damages.
Under the terms of a consent decree lodged in federal court in New Orleans this morning, BP must pay the following:
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$5.5 billion federal Clean Water Act penalty, plus interest, 80 percent of which will go to restoration efforts in the Gulf region pursuant to a Deepwater-specific statute, the RESTORE Act. This is the largest civil penalty in the history of environmental law.
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$8.1 billion in natural resource damages, this includes $1 billion BP already committed to pay for early restoration, for joint use by the federal and state trustees in restoring injured resources. BP will also pay up to an additional $700 million, some of which is in the form of accrued interest, specifically to address any later-discovered natural resource conditions that were unknown at the time of the agreement and to assist in adaptive management needs. The natural resource damages money will fund Gulf restoration projects that will be selected by the federal and state trustees to meet five different restoration goals and 13 restoration project categories. These include restoration focusing on supporting habitats such as coastal wetlands, but also provide for specific resource types, such as marine mammals, fish and water column invertebrates, sturgeon, submerged aquatic vegetation, oysters, sea turtles, birds and lost recreational use, among others.
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$600 million for other claims, including claims for reimbursement of federal and state natural resource damage assessment costs and other unreimbursed federal expenses and to resolve a False Claims Act investigation due to this incident.
The payments will be made over time and are backed by parent company guarantees from BP Corporation North America Inc. and BP P.L.C.
Additionally, BP has entered into separate agreements to pay $4.9 billion to the five Gulf states and up to a total of $1 billion to several hundred local governmental bodies to settle claims for economic damages they have suffered as a result of the spill.
Notice of both the consent decree and the draft damage assessment and restoration plan are published in the federal register. Both will be available for public comment for 60 days. The materials and instructions for commenting on the consent decree can be found at http://www.justice.gov/enrd/deepwater-horizon. The materials and instructions for commenting on the draft damage assessment and restoration plan and draft environmental impact statement can be found at www.gulfspillrestoration.noaa.gov. A series of public meetings will be held in the Gulf region and Washington, D.C. to solicit comments on the proposed consent decree and the draft restoration plan.
Earlier settlements:
The settlements announced today are in addition to several earlier criminal and civil settlements of federal government claims concerning the Deepwater Horizon disaster.
First, on Feb. 17, 2012, MOEX Offshore 2007 LLC, which had a 10 percent stake in the well, agreed to settle its liability for the Deepwater Horizon oil spill in a settlement with the United States valued at $90 million. Approximately $45 million of the $90 million settlement was dedicated to directly benefit the Gulf in the form of penalties, as well as coastal and habitat protection projects.
On Jan. 29, 2013, BP Exploration and Production Inc. pleaded guilty to illegal conduct leading to and after the 2010 Deepwater Horizon disaster, and was sentenced to pay $4 billion in criminal fines, penalties and restitution, including $2.4 billion for natural resource restoration.
On Feb. 14, 2013, Transocean Deepwater Inc., the Deepwater Horizon’s owner and operator, pleaded guilty to violating the Clean Water Act and was sentenced to pay $400 million in criminal fines and penalties, for its conduct in relation to the disaster. A separate civil settlement imposed a record $1 billion Clean Water Act penalty on Transocean and required the company to take significant measures to improve its performance and prevent recurrence of this conduct.
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U.S. Attorney’s Office Participates in Student Island Leadership DayRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that Zoie Susuico, the first place essay winner at the middle school level, was the student counterpart for the U.S. Attorney for Law Week 2015. Ms. Susuico is an 8th grade student at McCool Middle School, Department of Defense Educational Activities.
Ms. Susuico met with several staff of the U.S. Attorney’s Office who shared their duties, including the Victim Witness Coordinator, the National Security Specialist, the Grand Jury Coordinator, Legal Assistant, Budget Officer, Assistant Systems Manager, and Assistant U.S. Attorney.
In addition to shadowing the U.S. Attorney’s Office staff for the day, Ms. Susuico and the other students who participated in the Law Week Student Island Leadership Day, attended presentations by the U.S. Marshal Service, U.S. Probation Office, and the U.S. Secret Service.
U.S. Attorney’s Office staff from left to right: Student Clerk Sean Perez, Student Clerk John Ruane, USA Stephen Leon Guerrero, AUSA Mohammad Khatib, Legal Assistant Noreen Soriano, Zoie Susuico, AUSA Jessica Cruz, Paralegal Jackie Emmanuel, Legal Assistant Roxanne Ferrer, LEC/Victim Witness Specialist Mae Blas, and National Security Specialist Joe Quitano
U.S. Attorney’s Office Donates Water for Yap Victims of Supertyphoon MaysakRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the staff of the U.S. Attorney’s Office, District of Guam, donated 80 cases of water for delivery to victims of Supertyphoon Maysak in the State of Yap in the Federated States of Micronesia, in April 2015. Senator Frank Blas, 33rd Guam Legislature, coordinated with the Office of the Mayor of the village of Barrigada, Guam regarding the logistics.
U.S. Attorney Limtiaco and her staff know all too well the devastation caused by typhoons and were grateful for the opportunity to assist our neighboring islands.
From left to right: (kneeling) John Ruane and Ed Talato, (standing) Irving Vida, Gil Mones, Connie San Nicolas, Patrick O’Keefe, Noreen Soriano, Mikel Schwab, Michelle Perez, Jennifer Mafnas, Shirley Baza, Jackie Emmanuel, Roxanne Ferrer, Joe Quitano, Alicia Limtiaco, Greg Helm and Mae Blas
U.S. Attorney Announces Settlement with Bus Company to Ensure Accessibility for People with DisabilitiesRead the Press Release
HOUSTON – The United States has entered into a settlement agreement under the Americans with Disabilities Act (ADA) with Autobuses Regiomontanos Inc. that ensures their buses are accessible to people with disabilities, including individuals who use wheelchairs or other mobility aids, announced U.S. Attorney Kenneth Magidson. Autobuses Regiomontanos is a bus transportation company located in Houston.
The settlement is the result of collaborative enforcement efforts between the United States Attorney’s Office, Department of Justice - Civil Rights Division and the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation (DOT). The agreement remedies violations by Autobuses Regiomontanos, including failing to have an ADA training program in place for its employees and contractors, failing to file required ADA compliance reports with the DOT and failing to ensure that all lifts on its buses are properly maintained. The settlement agreement requires Autobuses Regiomontanos to:
- Comply with all ADA requirements for accessible service and not exclude persons with disabilities from their transportation services;
- Ensure that all required reports regarding ADA compliance are filed with the DOT;
- Establish a lift maintenance program to ensure that this accommodation is available when needed;
- Train all employees and contractors on the requirements of the ADA.
“People with disabilities in the Southern District of Texas must be able to count on accessible bus service that is equal to the service provided to others,” said Magidson. “This settlement agreement demonstrates the United States Attorney’s Office’s commitment to ensure that individuals with disabilities receive equal access to public accommodations, including transportation services.”
Title III of the ADA prohibits discrimination against people with disabilities by public accommodations, including large over-the-road bus companies. DOT’s regulations implementing the ADA require that these companies perform regular maintenance checks to ensure that wheelchair lifts work, provide prompt accessible service with an alternative carrier if the company does not have a lift-equipped bus, train their employees on accessibility requirements and file annual accessibility reports with the FMCSA.
Assistant U.S. Attorney Jimmy Rodriguez handled the matter on behalf of the U.S. Attorney’s Office.
People interested in finding out more about the ADA or this settlement can call the toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Topeka Man Sentenced in Junction City Drug Trafficking CaseRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to 20 years for supplying crack cocaine to a drug trafficking operation in Junction City and Manhattan, Kan., U.S. Attorney Barry Grissom said.
Johnny Lee Ivory, III, 29, Topeka, Kan., was convicted after a jury trial in June on one count of conspiracy to distribute crack cocaine, one count of possession with intent to distribute crack cocaine and one count of unlawful possession of a firearm following a felony conviction.
During trial, prosecutors presented evidence that in late 2012 and early 2013 agents of Kansas Bureau of Investigation and detectives from the Junction City Police Department investigated a large crack cocaine trafficking organization in Junction City and Manhattan. The organization was led by co-defendants Albert Banks and Anthony Thompson, who acquired the drugs from Ivory and two other suppliers. Banks and Thompson sold the drugs to distributors who resold them on the streets.
Ivory’s co-defendants include:
Albert Dwayne Banks, 33, Junction, City, Kan., who is set for sentencing Oct. 26.
Martye Madabuti Madkins, III, 34, Junction City, Kan., who is set for sentencing Nov. 23.
Anthony Caryle Thompson, 33, Junction City, Kan., who is set for sentencing Nov. 23.
Grissom commended the Kansas Bureau of Investigation, the Junction City Police Department, the Geary County Attorney’s Office and Assistant U.S. Attorney Tony Mattivi for their work on the case.