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1 October 2015
El Salvadoran Man Guilty of Illegally Reentering the United States After Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Willian Santos-Velasques, of El Salvador, pleaded guilty to an Information charging him with illegally reentering the United States after having been previously deported, announced Acting United States Attorney Donald Feith.
Santos-Velasques was found in Manchester, New Hampshire, on July 13, 2015 when he was observed by agents of the Department of Homeland Security Immigration and Customs Enforcement riding as a passenger in a vehicle. Santos-Velasques was familiar to ICE agents because he had been previously deported by ICE officers working in New Hampshire. An investigation determined that Santos-Velasques was deported twice in 2014 from Louisiana and Texas and once in 2015 from Texas.
Santos-Velasques pled guilty to knowingly reentering the United States after previously having been deported to his native El Salvador and was sentenced to time served since his arrest by Bureau of Immigration and Customs Enforcement on July 13, 2015.
Santos-Velasques will again be deported.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Ecuadorian National Charged with Tax Refund FraudRead the Press Release
BOSTON – An Ecuadorian national residing in New York City was arrested and charged on Tuesday, Sept. 29th in connection with his role in a stolen identity tax refund fraud scheme.
Ricardo E. Candelo, 58, was charged with one count of theft of public money. He was arrested at his home in Queens, New York and had an initial appearance in U.S. District Court in Brooklyn, New York. Candelo was released on conditions and ordered to appear in U.S. District Court in Boston on Oct. 6, 2015, before Magistrate Judge David H. Hennessy.
According to the criminal complaint, in 2012, federal agents learned that a New York criminal organization was searching for a way to cash fraudulently obtained federal income tax refund checks. Thereafter, with the assistance of a cooperating witness, agents arranged a series of undercover meetings with members of the New York organization. During these meetings, which took place in South Attleboro, Mass. between July and September 2012, Candelo and his associates delivered federal income tax refund checks totaling over $75,000. As part of the undercover operation, agents cashed these checks and returned the proceeds to the New York organization as instructed. All of the refund checks involved in the scheme trace back to fraudulent federal income tax filings submitted without the authorization of the tax payer.
The charging statute provides a sentence of no greater than 10 years in prison, three years supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Lisa A. Quinn, Special Agent in Charge of U.S. Secret Service, made the announcement today. The case is being prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Dominican Man Pleads Guilty to Misrepresenting A Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Richard Arias-Aquasvivas, of the Dominican Republic, has pleaded guilty to a one-count indictment alleging that he misrepresented a social security number while attempting to get a New Hampshire drivers license at the Nashua office of the New Hampshire Department of Motor Vehicles.
Agents of the Department of Homeland Security Immigration and Customs Enforcement were called to the Nashua office of the New Hampshire Division of Motor Vehicles on July 15, 2015 to provide investigative assistance relating to a man attempting to obtain a New Hampshire driver’s license. The individual insisted he was an American citizen born in Puerto Rico. ICE officers attempted to obtain digital fingerprints of the individual but his fingertips had been mutilated and the agents were unable to obtain a positive identification.
Subsequent investigation allowed the agents to identify the individual as Arias-Aquasvivas. Inked fingerprints confirmed that identity and that Arias-Aquasvivas was the subject of a previous deportation order.
Arias-Aquasvivas will be sentenced at 11:00 AM on January 12, 2016, and will be deported after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the New Hampshire State Police. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Dominican Man Guilty of Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – Onix Abreu, of the Dominican Republic, pled guilty late this morning to a one-count Information alleging that he illegally reentered the United States after having been previously deported.
On June 15, 2015 agents of the Department of Homeland Security Immigration and Customs Enforcement approached Abreu at the Salem office of the New Hampshire Division of Motor Vehicles. Abreu was at the office attempting to obtain a New Hampshire driver’s license under a false identity. Abreu admitted to the agents that his real name was Onix Abreu and that he had been deported previously. Fingerprint analysis confirmed Abreu’s identity. An investigation established that Abreu was deported in 2005 at Alexandria, Louisiana.
Abreu will be sentenced at 10:00 AM on January 6, 2016, and will be deported after serving his sentence.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Doctor Arrested for Illegal Distribution of More Than Ten Thousand Oxycodone Pills, Resulting in One Known DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James A. Hunt, Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William J. Bratton, Commissioner of the New York Police Department (“NYPD”), announced the unsealing of a Complaint against a doctor and a co-conspirator who are alleged to have participated in a drug distribution conspiracy involving the prescription painkiller oxycodone. As alleged, the doctor, ALFRED RAMIREZ, sold medically unnecessary prescriptions for over 10,000 oxycodone tablets over a four-year period, resulting in at least one death.
RAMIREZ, a psychiatrist, and JAMES COONEY, a co-conspirator, were arrested this morning on the charges in the Complaint. Both defendants were presented before U.S. Magistrate Judge Paul E. Davison this afternoon in White Plains federal court.
U.S. Attorney Preet Bharara said: “Abuse of prescription pills is a national health epidemic – causing more overdose deaths than heroin and cocaine combined. Unscrupulous healthcare professionals like Doctor Alfred Ramirez, who is alleged to have prescribed over 10,000 medically unnecessary oxycodone pills over a four-year period, and his alleged distributor, James Cooney, fuel this epidemic of poison by prescription. The danger of this type of criminal distribution of prescription pills was brought home by a tragic death allegedly resulting from Dr. Ramirez’s prescriptions.”
DEA Special Agent-in-Charge James A. Hunt said: “Criminals are constantly scheming ways to make an illegal profit, and Dr. Ramirez was no different. Allegedly selling scripts for money, Dr. Ramirez supplied opioid addicts with their fix and supplied street distributors, like James Cooney, with doses of death. Today’s arrests come after a five-month investigation into the illegal practices of Dr. Ramirez and the subsequent consequences of James Cooney’s street distribution.”
NYPD Commissioner William J. Bratton said: “As alleged, this doctor traded cash for prescriptions, pushing pills into the illegal drug market, resulting in the senseless death of at least one person. I commend the work of the NYPD investigators and our law enforcement partners for holding these individuals accountable for their actions.”
The following allegations are based on the Complaint unsealed today in White Plains federal court[1]:
Starting in approximately 2012 and continuing until his arrest, RAMIREZ operated out of offices in Orange and Dutchess Counties, where RAMIREZ, a Board certified doctor and State licensed psychiatrist, wrote medically unnecessary prescriptions for more than ten thousand oxycodone pills in exchange for cash payments. On numerous occasions over the course of this four-year period, RAMIREZ charged hundreds of dollars in cash for “patient visits” that involved little, if any, actual examination and resulted in the issuance of multiple prescriptions for large quantities of 30-milligram oxycodone tablets, sometimes for patients who were not even present.
Also charged in the Complaint is COONEY, who obtained prescriptions for thousands of oxycodone tablets from RAMIREZ, including in the name of third persons. COONEY resold many of these pills for profit.
The pills distributed by RAMIREZ and COONEY caused one known death: On March 23, 2015, a school teacher was found dead in his Yonkers, New York, apartment. Medical reports concluded that the death resulted from an overdose of oxycodone and alprazolam, another drug frequently prescribed by RAMIREZ and distributed by COONEY. Records show that the victim obtained the lethal oxycodone, and likely the alprazolam as well, from COONEY, and that RAMIREZ had issued prescriptions for those drugs in COONEY’s name.
Oxycodone is a prescription-strength Schedule II narcotic used to treat severe and chronic pain conditions. Oxycodone can result in addiction similar to an addiction to codeine or morphine, and there is an illegal market for oxycodone, as a substitute for – or adjunct to – other illegal narcotics, such as heroin.
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The defendants are charged with violations of the federal narcotics laws carrying a maximum sentence of twenty years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as the judge will determine any sentence imposed on the defendants.
Mr. Bharara praised the outstanding investigative work of the DEA’s Tactical Diversion Squad, composed of agents and officers of the DEA New York Division, the NYPD, the New York State Police, the New York Bureau of Narcotics Enforcement, the Westchester County Police Department, and the Town of Orangetown Police Department. Mr. Bharara also thanked the Town of New Windsor Police Department, the New York Bureau of Narcotics Enforcement, the U.S. Department of Health and Human Services, the Westchester County Department of Public Safety, the New York State Department of Financial Services, the Orange County Drug Task Force, the New York Office of Professional Medical Conduct, and the Town of Woodbury Police Department.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Lauren Schorr and Hagan Scotten 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 herein constitute only allegations, and every fact described should be treated as an allegation.
District Man Found Guilty of Charges in 2010 Murder in Northeast WashingtonRead the Press Release
WASHINGTON - Emanuel Guzeh, 29, of Washington, D.C., has been found guilty of charges stemming from a 2010 murder in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced today.
Guzeh was found guilty by a jury on Sept. 29, 2015, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed and possession of a firearm during a crime of violence. Guzeh is to be sentenced on Dec. 11, 2015, by the Honorable Jennifer Anderson.
At trial, the government’s evidence showed that on Feb. 15, 2010, at approximately 11:30 p.m., officers with the Metropolitan Police Department (MPD) were called to an apartment in the 900 block of 48th Street NE, and discovered the body of Michaeldeon Talley, 33, who was dead on the hallway floor of the apartment, having been shot several times.
MPD homicide detectives learned, and the subsequent investigation revealed, that on the night of the murder, Mr. Talley was inside the apartment with his male friend, a girlfriend, and (later) two prostitutes who had advertised on “Backpage.com.” The two prostitutes knew Mr. Talley and were invited over to “party” with the group. One of the prostitutes had recently begun dating the defendant, Emmanuel “Manny” Guzeh, who accompanied the prostitutes to the apartment, but remained outside. The prostitutes went over to the apartment, socialized with the group, and looked around the apartment for money or valuables to later take with them. They did not find anything of value at first but, while the prostitutes were still inside the apartment, Guzeh came inside, went to a back room, and started a struggle with Mr. Talley, eventually shooting him four times. Guzeh and the prostitutes fled the apartment.
In announcing the verdicts, Acting U.S. Attorney Cohen expressed his appreciation for the work of the Metropolitan Police Department. He also commended the efforts of Paralegal Specialists Debra Joyner, Meridith McGarrity, and Zekiah Wright; Paralegal Supervisor Sharon Newman; Law Clerk Adam Bereston; Victim/Witness Advocate Marcey Rinker; Information Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin; Victim/Witness Specialists Wanda Queen and M. LaVerne Forrest; Supervisory Victim/Witness Specialist Michael Hailey; Victim/Witness Services Coordinator Katina Adams-Washington, and Supervisory Victim/Witness Services Coordinator David Foster. Finally, he commended former Assistant U.S. Attorney Holly Shick, who assisted in the investigation of this case, and Assistant U.S. Attorneys David Gorman and Robert Eckert, who investigated and prosecuted the case at trial.
Derry Man Sentenced to Ten Years for Child Pornography DistributionRead the Press Release
CONCORD, NEW HAMPSHIRE - Stephen Cote, 51, of Derry, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire on one count of distributing child pornography and one count of possessing child pornography, announced Acting United States Attorney Donald Feith. The Court imposed a term of 10 years’ imprisonment, to be followed by an 8 year term of supervised release.
Cote’s sentencing capped an extensive multi-agency investigation, which began in 2013 when Cote sent an e-mail containing child pornography to an undercover federal agent. Search warrants were subsequently executed on Cote’s e-mail account and residence, leading to the discovery of hundreds of images and videos of child pornography. Cote used his e-mail account to store those images and distribute them to dozens of other individuals by e-mail over the course of several months.
The case was investigated by Manchester, New Hampshire Homeland Security Investigations and the Portsmouth and Washington D.C. offices of the Federal Bureau of Investigation, in conjunction with the New Hampshire Crimes Against Children Task Force (NH ICAC) and the Derry and Manchester, New Hampshire Police Departments. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals, federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant Charged with Alleged Participation in the Murder of Ice Special Agent Jaime Zapata and the Attempted Murder of Ice Special Agent Victor Avila Extradited from MexicoRead the Press Release
Four Others Have Already Pleaded Guilty to Charges in the Case
A Mexican national was extradited from Mexico to face charges for his alleged participation in the February 2011 murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico.
The charges and extradition were announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Assistant Director Joseph S. Campbell of the FBI Criminal Investigative Division and Director Sarah R. Saldaña of ICE.
Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, Zafado or Safado, 34, of San Luis Potosi, Mexico, was charged on May 6, 2013, in a four-count indictment with one count of murder of an officer or employee of the United States; one count of attempted murder of an officer or employee of the United States; one count of attempted murder of an internationally protected person; and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Garcia Sota made his initial appearance before Chief U.S. District Judge Royce C. Lamberth of the District of Columbia. His next appearance in court is scheduled for Oct. 9, 2015.
“It has been over four and a half years since ICE Special Agent Jaime Zapata valiantly lost his life and Special Agent Victor Avila suffered grave injuries when they were ambushed by gunfire while on assignment in Mexico,” said Assistant Attorney General Caldwell. “As evidenced by today’s announcement, the passage of time has not lessened our resolve to keep our promise to the family of Special Agent Zapata and to Special Agent Avila and his family, and bring to justice those responsible for this senseless and brutal attack. And we are grateful to the Government of Mexico for its continued partnership in this case.”
“Four years ago, on a Mexican roadside, two American heroes came under attack in a violent ambush by members of Los Zetas, a dangerous criminal cartel,” said Acting U.S. Attorney Cohen. “Four people have already accepted responsibility for their actions, and now a fifth will be brought to an American courtroom for justice. We will not stop in the pursuit of justice – no matter how far away and how long it takes.”
“Today's announcement is the direct result of unwavering resolve and unrelenting cooperation to bring to justice those accountable for the murder of Jaime Zapata and the attempted murder of Victor Avila,” said Assistant Director Campbell. “Although this cowardly act of violence occurred more than four years ago, this investigation remains a priority for the FBI.”
“This extradition is another step closer to the justice Special Agents Zapata and Avila deserve,” said ICE Director Saldaña. “ICE is grateful to our partners whose tireless efforts brought about today's news. Their dogged pursuit of justice, often in face of great danger, enables us to continue in our quest to make these criminals pay for their deeds. While nothing can ever truly heal such a loss, we hope today's news brings Agent Zapata's family and friends a measure of peace. His ultimate sacrifice will always be honored by the men and women of ICE.”
Four defendants previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. Julian Zapata Espinoza, aka Piolin, 34, pleaded guilty on May 23, 2013, to the murder of Special Agent Zapata and the attempted murder of Special Agent Avila. Ruben Dario Venegas Rivera, aka Catracho, 27, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, aka Cacho, 33, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, aka Dalmata, 40, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack.
An indictment is a formal charging document and defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Customs and Border Patrol, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office of the District of Columbia. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Garcia Sota Indictment
Defendant Charged with Alleged Participation in the Murder of ICE Special Agent Jaime Zapata and the Attempted Murder of ICE Special Agent Victor Avila Extradited from MexicoRead the Press Release
WASHINGTON – A Mexican national was extradited from Mexico to face charges for his alleged participation in the February 2011 murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico.
The charges and extradition were announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Assistant Director Joseph S. Campbell of the FBI Criminal Investigative Division and Director Sarah R. Saldaña of ICE.
Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, Zafado or Safado, 34, of San Luis Potosi, Mexico, was charged on May 6, 2013, in a four-count indictment with one count of murder of an officer or employee of the United States; one count of attempted murder of an officer or employee of the United States; one count of attempted murder of an internationally protected person; and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Garcia Sota made his initial appearance before Chief U.S. District Judge Royce C. Lamberth of the District of Columbia. Garcia Sota was ordered detained without bail. His next appearance in court is scheduled for Oct. 9, 2015.
“It has been over four and a half years since ICE Special Agent Jaime Zapata valiantly lost his life and Special Agent Victor Avila suffered grave injuries when they were ambushed by gunfire while on assignment in Mexico,” said Assistant Attorney General Caldwell. “As evidenced by today’s announcement, the passage of time has not lessened our resolve to keep our promise to the family of Special Agent Zapata and to Special Agent Avila and his family, and bring to justice those responsible for this senseless and brutal attack. And we are grateful to the Government of Mexico for its continued partnership in this case.”
“Four years ago, on a Mexican roadside, two American heroes came under attack in a violent ambush by members of Los Zetas, a dangerous criminal cartel,” said Acting U.S. Attorney Cohen. “Four people have already accepted responsibility for their actions, and now a fifth will be brought to an American courtroom for justice. We will not stop in the pursuit of justice – no matter how far away and how long it takes.”
“Today's announcement is the direct result of unwavering resolve and unrelenting cooperation to bring to justice those accountable for the murder of Jaime Zapata and the attempted murder of Victor Avila,” said Assistant Director Campbell. “Although this cowardly act of violence occurred more than four years ago, this investigation remains a priority for the FBI.”
“This extradition is another step closer to the justice Special Agents Zapata and Avila deserve,” said ICE Director Saldaña. “ICE is grateful to our partners whose tireless efforts brought about today's news. Their dogged pursuit of justice, often in face of great danger, enables us to continue in our quest to make these criminals pay for their deeds. While nothing can ever truly heal such a loss, we hope today's news brings Agent Zapata's family and friends a measure of peace. His ultimate sacrifice will always be honored by the men and women of ICE.”
Four defendants previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. Julian Zapata Espinoza, aka Piolin, 34, pleaded guilty on May 23, 2013, to the murder of Special Agent Zapata and the attempted murder of Special Agent Avila. Ruben Dario Venegas Rivera, aka Catracho, 27, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, aka Cacho, 33, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, aka Dalmata, 40, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack.
An indictment is a formal charging document and defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Customs and Border Patrol, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office for the District of Columbia. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Crescent City Keepers Mentoring Program Made a Part of the President’s My Brother’s Keeper InitiativeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that the White House has brought Crescent City Keepers (“CCK”), a mentoring program launched by U. S. Attorney Polite in 2014, under the umbrella of the President’s My Brother’s Keeper (“MBK”) Initiative. MBK seeks to address persistent opportunity gaps faced by boys and young men of color and ensures that all young people can reach their full potential.
To date, Crescent City Keepers is the only MBK initiative created by a U.S. Attorney. CCK focuses on all young people, including boys and young men of color, ages 14 through 16, who are considered as having a "high risk" of being killed as a result of gun violence. CCK identifies its participating mentees based on data compiled by the City of New Orleans, in its capacity as one of ten cities participating in DOJ’s National Forum on Youth Violence Prevention. Each participant has been identified as "high risk" because he/she either has already been the victim of gun violence or is in the social network of another homicide victim of gun violence. While the average New Orleans resident has a homicide rate of 24/100,000, individuals falling into this high risk category have a homicide rate of 1,600/100,000. That is, these young people, predominantly boys and young men of color, are nearly 63 times more likely to be killed by gun violence than the average New Orleans resident. By providing intensive mentoring and other support, CCK would intervene in the lives of these young people and help direct them towards safe, productive, and successful pathways.
In a shift from the more traditional one-on-one or group mentoring techniques, CCK will utilize an "institutional mentoring" concept. Capitalizing on the role that faith-based and other community organizations have historically played as a foundation for community development and preservation, CCK will pair one mentee with one faith-based or other community organization. The faith-based or other community organization will, in essence, "adopt" each mentee, and its membership will provide guidance and support. Each participating organization will recruit three members within the congregation or membership to serve as primary mentors. Using a team approach, these primary mentors will be the first-line personnel to engage with the young person. By relying on "what already works" – i.e., well-established and –recognized mentoring programs in the New Orleans area – CCK will develop a life skills curriculum as part of the mentoring process. Other members of the organization will also play a vital role in CCK. The entire membership – which in most cases will include individuals with a variety of professional backgrounds, including entrepreneurs, teachers, and skilled laborers – will provide the ancillary mentoring and support necessary to address some of the immediate needs of the mentee and his or her family. Furthermore, these organizations can leverage their relationships with various social services agencies to provide additional resources for those issues that are beyond the capacity of a traditional mentor program, including, but not limited to, housing, transportation, and health care.
U.S. Attorney Polite said: “It is not enough for us to wait for these young people to show up in a police report, or worse, on a coroner’s slab. We must intervene in order to save their lives. This initiative is about public safety in its truest sense, and it allows our community’s organizations and residents to be part of the solution.”
To date, the following organizations have now been matched with CCK mentees:
The New Orleans Chapter of Links, Inc.
Progressive Baptist Church
St. Peter Claver Catholic Church
St. Pius X Catholic Church
Urban League of Greater New Orleans
If you or your organization is interested in participating in CCK, please contact Shane M. Jones at 504-680-3000 or [email protected], or visit our website at www.justice.gov/usao-edla.
Collinsville Man Pleads Guilty to Sexual Exploitation of a Child and EnticementRead the Press Release
TULSA, Okla.–Derick Dean Brown, 24, of Collinsville, pleaded guilty today to sexual exploitation of a child and enticement, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. A sentencing date has been set before United States District Court Judge Claire V. Eagan on January 8, 2016.
At the change of plea hearing, Brown admitted, that in March 2015, he communicated with a female minor in Montana via text messaging and the Internet and enticed her to produce a sexually explicit video. Further, Brown admitted, that from January to March 2015, he communicated via cellphone and the Internet with a female minor in Oklahoma and enticed her to engage in sexual activity. Both victims were under the age of 18 years old.
At the time of sentencing, for the sexual exploitation charge, Brown faces the statutory minimum penalty of 15 years and up to 30 years in prison; and the enticement charge carries the statutory minimum penalty of not less than 10 years or up to life in prison. As part of his sentence, Brown’s Ford Mustang used to commit or facilitate the commission of the enticement offense will be forfeited to the United States.
The case was investigated by the Federal Bureau of Investigation and the Tulsa Police Department. Assistant United States Attorneys Jeff Gallant and Catherine Depew prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Page 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.justice.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Co-Founder of Oxywater Sentenced for Wire Fraud and Money LaunderingRead the Press Release
WASHINGTON – A co-founder of Imperial Integrative Health Research and Development LLC (Imperial) was sentenced to serve 83 months in prison in federal court today for his role in a fraud scheme related to Imperial and its product, OXYwater, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Carter M. Stewart of the Southern District of Ohio.
Thomas E. Jackson, 40, of Powell, Ohio, was sentenced by U.S. District Court Judge Gregory L. Frost of the Southern District of Ohio. In addition to the prison sentence, Jackson was ordered to serve three years of supervised release and to pay approximately $8.8 million in restitution to victims of the fraud. On March 25, Jackson was convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, eight counts of wire fraud and 12 counts of money laundering.
Jackson’s business partner, Preston J. Harrison, 43, and Harrison’s wife, Lovena Harrison, 42, both of Lewis Center, Ohio, also went to trial in March and were convicted of multiple crimes. Preston Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return, conspiracy to commit wire fraud, conspiracy to commit money laundering and 12 counts of money laundering. Lovena Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return and structuring financial transactions to evade currency reporting requirements.
The Harrisons were sentenced on Aug. 25. Preston Harrison was also sentenced to serve 83 months in prison to be followed by three years of supervised release, and ordered to pay approximately $8.8 million to victims of the fraud and approximately $376,000 in restitution to the Internal Revenue Service (IRS). He was also ordered to forfeit $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account. Lovena Harrison was sentenced to serve 12 months and one day in prison to be followed by three years of supervised release, and ordered to pay approximately $376,000 in restitution to the IRS.
According to court testimony, Jackson and Preston Harrison operated Imperial, based in Westerville, Ohio, and developed OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The defendants engaged in a scheme to deceive Imperial’s investors about Imperial and OXYwater’s structure, composition, finances, sales and profits in order to make the company appear to be a lucrative and profitable financial investment. Jackson and Preston Harrison produced and sent false and fraudulent documents intended to deceive investors in order to obtain additional investments in Imperial. They then misappropriated that money for their own personal use, which included purchasing jewelry, a Cadillac Escalade, a BMW vehicle, weapons, clothing, home improvements and a swimming pool.
Between August 2010 and spring 2013, Jackson and Preston Harrison misappropriated approximately $2 million of the investors’ funds. The defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of the defendants’ conduct, investors lost approximately $9 million.
In 2011, Preston Harrison misappropriated approximately $1.1 million from Imperial, which he and Lovena Harrison diverted into an account in the name of a daycare business and used for personal expenses. The Harrisons did not report the money as income on their 2011 income tax return.
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge Kathy A. Enstrom of the IRS-Criminal Investigation (CI) Cincinnati Field Office. “Today's sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Stewart commended special agents of IRS-CI and the FBI, who investigated the case, as well as Assistant U.S. Attorney Jessica Kim of the Southern District of Ohio and Trial Attorney Jason Scheff of the Tax Division, who prosecuted the case.
Co-Founder of OXYwater Sentenced for Wire Fraud and Money LaunderingRead the Press Release
A co-founder of Imperial Integrative Health Research and Development LLC (Imperial) was sentenced to serve 83 months in prison in federal court today for his role in a fraud scheme related to Imperial and its product, OXYwater, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Carter M. Stewart of the Southern District of Ohio.
Thomas E. Jackson, 40, of Powell, Ohio, was sentenced by U.S. District Court Judge Gregory L. Frost of the Southern District of Ohio. In addition to the prison sentence, Jackson was ordered to serve three years of supervised release and to pay $8,840,706 in restitution to victims of the fraud. On March 25, Jackson was convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, eight counts of wire fraud and 12 counts of money laundering.
Jackson’s business partner, Preston J. Harrison, 43, and Harrison’s wife, Lovena Harrison, 42, both of Lewis Center, Ohio, also went to trial in March and were convicted of multiple crimes. Preston Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return, conspiracy to commit wire fraud, conspiracy to commit money laundering and 12 counts of money laundering. Lovena Harrison was convicted of conspiracy to defraud the United States, filing a false income tax return and structuring financial transactions to evade currency reporting requirements.
The Harrisons were sentenced on Aug. 25. Preston Harrison was sentenced to serve 83 months in prison to be followed by three years of supervised release, and ordered to pay approximately $8.8 million to victims of the fraud and approximately $376,000 in restitution to the Internal Revenue Service (IRS). He was also ordered to forfeit $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account. Lovena Harrison was sentenced to serve 12 months and one day in prison to be followed by three years of supervised release, and ordered to pay approximately $376,000 in restitution to the IRS.
According to court testimony, Jackson and Preston Harrison operated Imperial, based in Westerville, Ohio, and developed OXYwater, a beverage that promoters claimed was an all-natural, vitamin-enhanced sports drink that contained added oxygen for improved physical performance.
The defendants engaged in a scheme to deceive Imperial’s investors about Imperial and OXYwater’s structure, composition, finances, sales and profits in order to make the company appear to be a lucrative and profitable financial investment. Jackson and Preston Harrison produced and sent false and fraudulent documents intended to deceive investors in order to obtain additional investments in Imperial. They then misappropriated that money for their own personal use, which included purchasing jewelry, a Cadillac Escalade, a BMW vehicle, weapons, clothing, home improvements and a swimming pool.
Between August 2010 and spring 2013, Jackson and Preston Harrison misappropriated approximately $2 million of the investors’ funds. The defendants’ scheme caused investors to suffer substantial losses when the corporation was forced to declare bankruptcy with no assets. As a result of the defendants’ conduct, investors lost approximately $9 million.
In 2011, Preston Harrison misappropriated approximately $1.1 million from Imperial, which he and Lovena Harrison diverted into an account in the name of a daycare business and used for personal expenses. The Harrisons did not report the money as income on their 2011 income tax return.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Stewart commended special agents of IRS-CI and the FBI, who investigated the case, as well as Assistant U.S. Attorney Jessica Kim of the Southern District of Ohio and Trial Attorney Jason Scheff of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Clovis Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Michael Montoya, 37, of Clovis, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Montoya will be sentenced within the range of 121 to 151 months in federal prison followed by a term of supervised release to be determined by the court.
Montoya and his co-defendants, Brian Acuna, 23, and Dianna Hernandez-Trujillo, 24, both of Clovis, N.M., and Alexander Page, 28, of Tucumcari, N.M., were arrested in Nov. 2013, on a six-count indictment charging them with trafficking methamphetamine in three New Mexico counties. Count 1 charged Montoya and his co-defendants with conspiracy to distribute methamphetamine in Curry County, N.M., between Oct. 2007 and Nov. 2013. Count 2 charged Montoya with possession of methamphetamine with intent to distribute on Oct. 11, 2011 in Curry County. Count 3 charged Montoya and Acuna, and Hernandez-Trujillo with possession of methamphetamine with intent to distribute on March 27, 2012, in Cibola County. Count 4 charged Montoya and Page with possession of methamphetamine with intent to distribute on Nov. 7, 2012, in Socorro County. Count 5 charged Montoya with money laundering for purchasing a residence with money derived from a drug trafficking activity on Sept. 22, 2010. Count 6 charged Acuna with using and carrying a firearm in relation to a drug trafficking crime on March 27, 2012, in Cibola County.
During today’s proceedings, Montoya pled guilty to Count1 of the indictment charging him with conspiracy to distribute methamphetamine and Count 5 charging him with money laundering. In his plea agreement, Montoya admitted arranging for drivers to travel to California in vehicles he provided so that they could transport methamphetamine from his sources of supply. Montoya then distributed the methamphetamine in New Mexico. He also admitted being the owner of the 1.7 kilograms of methamphetamine seized from Acuna on March 27, 2012, and the 1.2 kilograms of methamphetamine seized from Page on Nov. 7, 2012, as well as providing the vehicles Acuna and Page were driving.
In entering his guilty plea, Montoya also admitted that on Sept. 22, 2010, he purchased a residence Clovis with proceeds from his ongoing narcotics activities. He also admitted that drug trafficking proceeds were his only source of income from 2005 through 2011, and that he did not file federal income tax returns on that income during those years.
Montoya is in federal custody pending his sentencing hearing, which has yet to be scheduled.
On July 7, 2015, Page pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In his plea agreement, Page admitted that he was stopped for driving 85 miles per hour in a 35 mile per hour zone by a deputy of the Socorro County Sheriff’s Office on Nov. 7, 2012, while traveling near Socorro, N.M. During a search of the vehicle driven by Page, the deputy found approximately 1259 grams of methamphetamine in a hidden compartment in the vehicle. At the time, Page was transporting the methamphetamine to Clovis where the drugs were to be sold and where Page was to be paid for transporting the drugs. His sentencing hearing is currently scheduled for Oct. 13, 2015.
Acuna pled guilty on June 26, 2014, to Counts 1 and 3 of the indictment, charging him with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. He also pled guilty to Count 6 of the indictment, charging him with using and carrying a firearm in relation to and in furtherance of a drug trafficking crime. In entering his guilty plea, Acuna admitted that on March 27, 2012, he and a co-defendant were stopped by police while transporting methamphetamine from California to Clovis. At the time of the stop, Acuna and the co-defendant knew that a large quantity of methamphetamine was concealed in a secret compartment in the vehicle and that additional methamphetamine was in a backpack in the vehicle. Acuna also admitted that he had a revolver and ammunition in the vehicle for protection.
At sentencing, Acuna faces a mandatory minimum of 10 years to a maximum of life imprisonment on the methamphetamine trafficking charges. On the gun charge, Acuna faces a mandatory minimum of five years in prison which must be served consecutive to any sentence imposed on the drug charges. Acuna remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
Hernandez-Trujillo has entered a not guilty plea to the indictment and is participating in a judicial pretrial diversion program. Charges in indictments are merely accusation and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Socorro County Sheriff’s Office. Assistant U.S. Attorneys Sean J. Sullivan and Jennifer M. Rozzoni are prosecuting this case.
Chinese Businessman Charged with Theft of Trade SecretsRead the Press Release
CHARLOTTE, N.C. – A criminal bill of information was filed today in federal court in Charlotte, charging a Chinese businessman, Xiwen Huang, 55, of Charlotte, with one count of theft of trade secrets, announced Acting U.S. Attorney Jill Westmoreland Rose and Special Agent in Charge John A. Strong, of the FBI’s Charlotte Division. A plea agreement was also filed today and Huang is expected to appear in court on Friday, October 2, 2015, at 10:30 a.m. to enter his formal guilty plea.
“After having received the benefit of an American education, the defendant worked for companies in the U.S. which developed technology for the U.S. government and private enterprises. The defendant then stole secret information from these entities to bring back to China to benefit himself and others. For this reprehensible conduct the defendant is going to federal prison. We will do the same to other industry thieves in a continued effort to protect American intellectual property and maintain fairness in the marketplace,” said Acting U.S. Attorney Rose.
“For years Xiwen Huang targeted U.S. companies intending to steal the intellectual property others had worked so diligently to develop. The research and product development information he stole from a North Carolina business put our state’s economy and people’s jobs at risk. The FBI will work tirelessly to hold accountable the criminals who try to profit off the work of others,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
According to court documents filed today, from about 2006 through May 2015, Huang engaged in a scheme to steal trade secrets from multiple companies within the United States, and intellectual property from the United States government, to further his aspirations of forming and operating his own company in the People’s Republic of China (China). Huang is a native of China and naturalized U.S. Citizen.
Filed court documents show that prior to coming to the United States to obtain his doctorate degree in Chemical Engineering, Huang wrote that he “had a dream of learning more advanced technology to serve [his] homeland” of China and decided that to “fulfill [his] wish” he needed to go abroad and then “return to China with [his] newly acquired methodology and research skills to teach in China.”
According to court records, Huang came to the United States in 1998 to study and work. From approximately December 2004 until he was fired by his employer in approximately March 2014, court records show that Huang stole proprietary and confidential information, including trade secret information and other intellectual property belonging to a Government Research Facility and two United States companies, with the intent to use the stolen information for the economic benefit of himself, a Chinese company, and others.
Filed court documents show that Huang stole a large amount of intellectual property from the Government Research Facility, including technology related to military vehicle fuel cells. Court records also show that Huang stole from one U.S. company more than 500 documents containing confidential and proprietary information, including trade secret information related to 30 different products with research and development costs associated therewith of more than $65 million. According to court records, Huang stole from a second U.S. company, more than 100 documents containing trade secret, confidential and proprietary information with research and development costs associated therewith of more than $25 million.
Court documents filed today show that upon being fired from the second U.S. company in 2014, Huang returned to China and began working for a Chinese company in a managerial role. According to court records, Huang took with him to China all of the intellectual property and trade secrets he stole with the intent to use that stolen property to further his personal goals and the business interests of the Chinese company.
According to court records, after returning to China, upon attaining his goals first annunciated in 2003, Huang recounted his accomplishments of stealing U.S. intellectual property in a document he titled, “Trip of Dream Realization.” In the document, translated from Chinese, court records show that Huang states in sum and substance: “Throughout these 16 years, I always have a dream of returning to China to develop my ambition. In order to realize this dream, I have worked in US national research academies [laboratories], largest chemical companies in the world. I have also worked in small companies in the US. My goal was to learn, digest, accumulate, and make preparations for realizing the dream. . .Consequently, I started scheming, planning that last for close to 2 years, and returned to China formally in this year, and initiated my own ‘Trip of Dream Realization’. . . As the main thrust during the country’s development, it is necessary an obligatory for our generation to fulfill our share of responsibility in contributing towards the societal progress of China.”
Huang has been in federal custody since May 2015, when he was arrested following his return from China. He has agreed to plead guilty to stealing trade secrets from multiple U.S. companies. The theft of trade secrets charge carries a maximum term of 10 years in prison. In determining Defendant’s actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide advisory sentencing ranges.
The Charlotte Division of the FBI is investigating the case. Assistant United States Attorneys Kevin Zolot and Maria K. Vento of the U.S. Attorney’s Office in Charlotte are handing the prosecution for the government.
Chicago Man Sentenced to 37 Months in Federal Prison for Trafficking Dozens of Guns from Indiana to the Streets of ChicagoRead the Press Release
CHICAGO — A Chicago man who helped purchase 43 firearms in Indiana and transport them to Illinois for sale on the streets of Chicago was sentenced today to 37 months in prison.
After purchasing the weapons at gun shows and from individual vendors in Crown Point and Indianapolis, WINSTON GERALDS helped bring the firearms into Illinois and sell them on the South Side of Chicago. Unbeknownst to Geralds, the Chicago buyer was cooperating with law enforcement officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Geralds, 25, pleaded guilty in May to one count of illegally transporting firearms across state lines. U.S. District Judge John Z. Lee imposed the 37-month sentence in federal court in Chicago.
“The defendant arranged for the sale of unregistered and untraceable firearms on the side streets and back alleys of Chicago’s neighborhoods,” Assistant U.S. Attorneys Bethany K. Biesenthal and Christopher V. Parente argued in the government’s sentencing memorandum. “By directly assisting in the supply of firearms to this city, the defendant very directly contributed to the cycle of gun violence.”
Geralds used middlemen to facilitate selling the guns to the cooperating source. In four separate meetings on April 22, 2012, the middlemen sold 20 weapons to the cooperating source at locations in the Greater Grand Crossing and Chinatown neighborhoods of Chicago. The following day, the middlemen sold 23 more guns to the cooperating source in a Chinatown parking lot.
Five other defendants, including one middleman, were charged in connection with this investigation:
- Levaine Tanksley, of Chicago, served as a middleman in the transactions with the cooperating source. Tanksley pleaded guilty to unlawfully transporting a firearm and was sentenced to more than 11 years in prison.
- Charles Lemle, of Chicago, acted as security for at least one of the firearm deals with the cooperating source. Lemle pleaded guilty to unlawfully transporting a firearm and was sentenced to 10 years in prison. Prior to the guilty plea, Lemle violated the terms of his pretrial release by possessing a gun on New Year’s Eve 2013. An additional indictment was filed, and Lemle pleaded guilty to being a felon in possession of a firearm. He is set to be sentenced by Judge Lee on Oct. 7, 2015.
- Michael Hall, of Chicago, acted as security for at least one of the firearm deals. Hall pleaded guilty to unlawfully transporting a firearm and is scheduled to be sentenced by U.S. District Judge Ronald A. Guzman on Nov. 18, 2015.
- David Lewisbey, of South Holland, served as the leader of the Indiana-to-Illinois gun trafficking ring. He was convicted at trial of dealing and transporting firearms. Lewisbey was sentenced to more than 16 years in prison.
- Maurice Strickland, of Chicago, lived in a residence in the Greater Grand Crossing neighborhood where the guns were sold to the cooperating source. He pleaded guilty to unlawfully transporting a firearm and was sentenced to 42 months in prison.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Federal Bureau of Investigation, the Chicago Police Department and the Illinois State Police assisted in the investigation, which was conducted with the Chicago High Intensity Drug Trafficking Task Force (HIDTA).
The government is represented by Ms. Biesenthal and Mr. Parente.
Chattanooga Pill Mill Owner Sentenced to 44 Years in PrisonRead the Press Release
CHATTANOOGA, Tenn. -- On Oct. 1, 2015, Faith Blake, 40, of Chattanooga, Tenn., was sentenced to serve 44 years in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Upon her release from prison, Blake will serve a three year period of supervised release. Additionally, she was ordered to forfeit $2,700,000 to the United States, which represented the gross income generated by her illegal clinics.
Blake pleaded guilty to a federal grand jury indictment charging her with conspiring to distribute prescription drugs outside the scope of professional practice and not for a legitimate medical purpose. She admitted to being involved in two drug conspiracies. One conspiracy involved Superior One Medical Clinic, which she co-owned with her mother Barbara Lang, who was also charged in this case. The other conspiracy involved Elite Care Medical Clinic, which was solely owned by Blake. Blake also pleaded guilty to failing to appear after she was released on conditions of bond and became a fugitive. She was apprehended five months later in Maryland, living under an assumed name.
Three others involved in the operation of the clinics were separately convicted and have been sentenced. Dr. Jerome Sherard, the medical director for Superior One and Elite Care, was sentenced to serve five years in prison. Charles Larmore, a nurse practitioner who worked at Superior One and co-defendant Barbara Lang’s clinic, Primary Care, received a 13 year prison sentence. Barbara Lang, Blake’s mother, was convicted after trial of several offenses including drug conspiracies involving Superior One and Primary Care. She was sentenced to serve 280 years in prison. Over $500,000 in seized assets were forfeited as part of their sentences.
Blake’s clinics distributed over 28 kilograms of oxycodone (or almost 1,000,000 tables of Oxycodone 30mg pills) to thousands of individuals, many of whom illegally abused the drugs and redistributed them to others. Oxycodone pills are typically sold on the street for $1 per milligram. The clinics catered to pill-seeking individuals from the Southeastern United States.
At the sentencing hearing, Judge Collier noted that prescription pill abuse is the fastest growing drug problem in the United States. He remarked that Blake’s substantial sentence was intended to deter others from engaging in this illegal activity and to keep her from ever committing this type of crime in the future.
“The substantial sentences ordered for these individuals will act as a deterrent for others who may be considering the illegal selling of highly addictive opioids. The defendants’ use of the medical training of others to effectuate this criminal scheme was particularly reprehensible. The public should be aware that federal law enforcement officials, in conjunction with the state and local authorities, are focusing on these illegal opioid transactions,” said U.S. Attorney Bill Killian.
Daniel R. Salter, Special Agent in Charge of the DEA Atlanta Field Division said, “DEA and its law enforcement counterparts will continue to target and crack down on pill mill operators who distribute pain medications for non-medical reasons. The success of this investigation is a direct result of the hard work and dedication put forth by our federal, state and local law enforcement counterparts.”
“Illegally prescribing narcotics for profit is a serious offense,” stated Christopher A. Henry, Special Agent in Charge, IRS, Criminal Investigation. “Today’s sentencing should send a message to operators of these illegal pill mills that this activity will be investigated and prosecuted. IRS Criminal Investigation is proud to work with our law enforcement partners to stop the flow of these illegal drugs into our communities.”
Law enforcement agencies participating in this joint investigation included the Drug Enforcement Administration, Internal Revenue Service, U.S. Trustee’s office, Tennessee Bureau of Investigation, Hamilton County Sheriff’s Office, Chattanooga Police Department, Roane County Sheriff’s Department, and Rockwood Police Department. Assistant U.S. Attorneys Gregg L. Sullivan and Michael D. Porter represented the United States at trial. Assistant U.S. Attorney Tracy Stone prosecuted other individuals involved in the drug conspiracies.
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Calmar Bank Robber Sentenced to 87 Months in Federal PrisonRead the Press Release
A man who robbed the State Bank in Calmar, Iowa in May of this year was sentenced today in United States District Court to more than seven years in federal prison.
Tyrone Wilson, age 49, from Postville, Iowa, received the prison term after a June 25, 2015, guilty plea to one count of bank robbery.
Wilson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wilson was sentenced to 87 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make over $1400 in restitution to State Bank. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
At the sentencing hearing, the Court found Wilson entered the State Bank in May, reached across the teller counter, grabbed the teller’s wrist, and demanded the money in the teller’s drawer. Wilson then jumped onto the counter and grabbed $900 from the teller’s drawer. Wilson fled the area, spent most of the $900 on cocaine, and ultimately was arrested without incident in the Rock Island, Illinois, area. The Court’s restitution award includes the $900 Wilson robbed from the bank, over $500 in lost profits to the Bank, and prejudgment interest.
Wilson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy Vavricek and investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Calmar Police Department, the Iowa State Patrol, the Iowa Division of Intelligence, the Rock Island County Sheriff’s Office, the East Moline Police Department, the Milan Police Department, the Postville Police Department, the Decorah Police Department, the Allamakee County Sheriff’s Office, and the Winneshiek County Sheriff’s Office.
Court file information available: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-2014.
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Buffalo Man Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alvin L. Livingston, Jr., 36, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute five kilograms or more of cocaine. The charge carries a maximum penalty of life in prison and a $10,000,000 fine.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the complaint, on September 26, 2015, law enforcement officers executed a search warrant at the defendant’s residence on Stevenson Street. Livingston was alone in the residence at the time. Officers recovered bundled U.S. currency, a money counter, two digital scales containing suspected cocaine residue, and a vacuum sealing package device.
Following the search of the residence, officers searched a car rented to Livingston, which was parked outside. Inside, they found approximately five kilograms of cocaine in vacuum-sealed packages in the trunk of the vehicle.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held in custody pending a detention hearing on October 20, 2015, at 11:00 a.m.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bristol Man Sentenced for Domestic Violence ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Robert W. McCandless, 38, of Bristol, Florida, was sentenced to 151 months in prison today for interstate domestic violence and interstate violation of a protection order. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea on July 9, 2015, McCandless admitted to violating a protection order by unlawfully entering the victim’s residence on January 16, 2015. McCandless and the victim had lived together previously for approximately five years and had two children. After strangling the victim with a communications cord and assaulting the victim, McCandless forced her and their children to travel with him out of Florida. Approximately eight hours later, law enforcement agents arrested McCandless, rescuing the victim and her children on Interstate 95 in South Carolina. The victim received medical treatment for injuries consistent with strangulation.
The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Liberty County Sheriff’s Office, and the Clarendon County Sheriff’s Office in South Carolina. It was prosecuted by Assistant United States Attorney Stephen M. Kunz.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Bossier City man pleads guilty to possessing ammunition after being convicted of feloniesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Bossier City pleaded guilty to possessing shotgun shells and bullets even though he was prohibited from doing so because he had prior felony convictions.
Sidney Joseph Patterson, 44, of Bossier City, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of possession of ammunition by a convicted felon. According to evidence presented at the guilty plea, on January 9, 2015, Bossier Parish Sheriff’s deputies began investigating the discharge of a homemade “zip gun” firearm at Patterson’s residence which wounded Patterson in his back. Found at the residence was the discharged “zip gun” and three other “zip guns” loaded with two rounds of 12 gauge shotgun ammunition and one round of .380 caliber ammunition. Prior to this offense, Patterson had other felony drug convictions.
Patterson faces up to 10 years in prison, one to three years of supervised release and a $250,000 fine. A sentencing date of February 17, 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 the Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Annapolis Residential Developer Pleads Guilty in Fraudulent Mortgage SchemeRead the Press Release
Baltimore, Maryland – Timothy L. Ritchie, age 44, of Annapolis, Maryland, pleaded guilty today to making false statements arising from a real estate closing.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.
Ritchie owned and operated Richland Homes, Inc., and was in the business of building, purchasing and selling homes.
According to his plea agreement, on July 7, 2005, Ritchie attended a residential closing for his purchase of three lots located at 24058 St. Michael’s Road in St. Michael’s, Maryland. John Davis, a real estate agent, conducted the closing, and listed Ritchie on the HUD statement as the buyer/ borrower. The HUD statement falsely stated that Ritchie provided $1,153,937.23 in cash at the closing. In fact, Ritchie did not provide any funds to Davis at the closing. As a result of the false statement, Ritchie fraudulently obtained approximately $2,445,102 from a mortgage lender by wire transfer to fund the settlement.
Ritchie faces a maximum sentence of five years in prison. U.S. District Judge Richard D. Bennett scheduled his sentencing for January 14, 2016, at 10:00 a.m.
In a related case, John L. Davis, age 55, of Chestertown, Maryland, previously pleaded guilty to conspiracy to commit mail fraud and wire fraud arising from his participation in the scheme, and awaits sentencing. Davis admitted that the loss arising from his participation in the scheme is between $400,000 and $1 million.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
United States Attorney Rod J. Rosenstein commended the FHFA - OIG and FDIC – OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Kevin V. DiGregory and Assistant U.S. Attorney Kathleen O. Gavin, who are prosecuting the case.
Alleged Fraudster Used Social Media as Crime ToolRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging Aaron Dashawn Caple, 23, of Philadelphia, PA, in a fraud scheme involving bad checks and social media. Caple is charged with four counts of bank fraud and 22 counts of aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the indictment, Caple used social media services Twitter and Facebook to solicit potential co-schemers to message him if they wanted to make quick cash and had an account at a bank or other financial institution. From those that responded, he obtained their bank ATM cards and PIN numbers and allegedly used that information to deposit bad checks into those accounts and withdraw the funds before the banks and other financial institutions realized that the checks were bad. He also allegedly used the ATM cards and PIN numbers at various stores to purchase goods and obtain cash back prior to the banks discovering that the checks were bad. It is further alleged that Caple paid the account holders a portion of the more than $45,000 he unlawfully obtained as a result of the scheme.
If convicted, defendant Caple faces a mandatory minimum term of two years in prison with a statutory maximum sentence of 144 years, up to five years of supervised release, a fine of up to $9.5 million, and restitution of at least $47,000.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
Albuquerque Man Sentenced to Prison for Federal Synthetic Drug Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Sabah Al-Washah, 48, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison followed by three years of supervised release for his conviction on “spice” trafficking. Sabah Al-Washah is one of three men arrested in the District of New Mexico in May 2014, as part of Project Synergy Phase II, a nationwide investigative effort by the DEA, Customs and Border Protection, Homeland Security Investigations, FBI, IRS and other federal, state, and local partners. Project Synergy Phase II targeted every level of the dangerous global synthetic designer drug market. From Jan. 2014 through May 2014, nationwide enforcement operations took place targeting the drug trafficking organizations that have operated in communities across the country.
Sabah Al-Washah and his co-defendants, Iman Al-Washah, 25, and Amjad Al-Washah, 26, also of Albuquerque, were charged with “spice” trafficking charges in criminal complaints. Sabah Al-Washah, the owner of Carlos’ Smoke Shop, was charged with conspiracy and aiding and abetting the distribution of a controlled substance analogue based on a sale of synthetic cannabinoid to an undercover officer at the smoke shop on Jan. 7, 2014. Sabah Al-Washah also was charged with maintaining drug-involved premises. Amjad Al-Washah was charged with distribution of a controlled substance analogue based on his sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop at 806 Old Coors Drive SW in Albuquerque on Dec. 4, 2013. Iman Al-Washah was charged with conspiracy and distribution of a controlled analogue based on his participation in the sale of synthetic cannabinoid to an undercover officer at Carlos’ Smoke Shop on Jan. 7, 2014.
The three men subsequently were charged in a four-count indictment filed on May 21, 2014. Count 1 charged the three men with conspiracy to distribute a controlled substance analogue from Dec. 4, 2013 through May 7, 2014. Count 2 charged Sabah Al-Washah and Amjad Al-Washah with distributing a controlled substance analogue on Dec. 4, 2013. Count 3 charged Sabah Al-Washah and Iman Al-Washah with distributing a controlled substance on Jan. 7, 2014, and Count 4 charged Sabah Al-Washah with maintaining a place, Carlos Smoke Shop, for the purpose of manufacturing, distributing, and using a controlled substance analogue. The indictment also called for the forfeiture of multiple vehicles and cash obtained through the drug offenses charged in the indictment.
On April 28, 2015, Sabah Al-Washah pled guilty to Count 3 of the indictment and admitted that Iman Al-Washah and he sold 30 packets of “spice” to an undercover law enforcement officer. In his plea agreement, Sabah Al-Washah agreed to forfeit a 2011 Cadillac, a 2012 Camaro, a 2013 Dodge Viper, a 2008 Lamborghini, a 2004 Dodge Viper, a 2005 Cadillac and a 2011 Camaro.
Amjad Al-Washah pled guilty on Feb. 11, 2015, to Count 2 of the indictment and admitted that on Dec. 4, 2013, he sold ten packets of “spice” to an undercover law enforcement officer for $200.00 at Carlos’ Smoke Shop. At his sentencing hearing, which has not been scheduled, Amjad Al-Washah faces a statutory maximum penalty of 20 years in federal prison followed by a minimum of three years of supervised release.
Iman Al-Washah pled guilty on April 9, 2015, to Count 3 of the indictment, and admitted that he sold 30 packets of “spice” along with Sabah Al-Washah to an undercover law enforcement officer. Iman Al- Washah was sentenced on July 23, 2015, to three years of probation.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Stephen R. Kotz.
The controlled substance analogues charged in the complaints and indictment are commonly referred to as synthetic marijuana or “spice.” According to the DEA, over the past several years, there has been a growing use of synthetic cannabinoids. Smoke-able herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular because they are easily available and, in many cases, more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These substances, however, have not been approved by the Food and Drug Administration for human consumption, and there is no oversight of the manufacturing process. Synthetic cannabinoids often are labeled as incense to mask their intended purpose.
Albuquerque Man Pleads Guilty to Armed Robbery of Eight Albuquerque-Area Businesses in Summer 2014Read the Press Release
ALBUQUERQUE – Jose Rodriguez, 23, of Albuquerque, N.M., pleaded guilty today in federal court to violating the Hobbs Act and firearms laws by robbing eight businesses involved in interstate commerce at gunpoint. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department.
Rodriguez was charged in March 2014, in a four-count indictment alleging that he robbed two Albuquerque-area businesses that were engaged in interstate commerce. It further alleged that Rodriguez brandished firearms during each of the two robberies. Rodriguez was arrested on April 22, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges which were later dismissed in favor of federal prosecution.
During today’s proceedings, Rodriguez entered a guilty plea to a nine-count felony information charging him with violating the Hobbs Act and federal firearms laws. The first eight counts of the information charged Rodriguez with interfering with interstate commerce by robbing the following eight businesses between June 2014 and Aug. 2014:
- Papa John’s Pizza on Gibson Blvd. SE in Albuquerque on June 29, 2014;
- Twisters on Gibson Blvd SW in Albuquerque on July 5, 2014;
- Flowers Bakery on Gibson Blvd. SE in Albuquerque on July 14, 2014;
- Pump-N-Save gas station on Menaul Blvd. NE in Albuquerque on July 17, 2014;
- Krispy Kreme on Wyoming Blvd NE in Albuquerque on July 30, 2014;
- M&M Gas Station on Coors Blvd. NW in Albuquerque on Aug. 5, 2014;
- Phillips 66 Gas Station on Coors Blvd. NW in Albuquerque on Aug. 6, 2014;
- Church’s Chicken on Central Ave NW in Albuquerque on Aug. 7, 2014.
The ninth count of the information charged Rodriguez with brandishing a firearm during a crime of violence, specifically, the robbery of the Church’s Chicken on Aug. 7, 2014. In addition, in his plea agreement, Rodriguez admitted that he used a firearm, which he brandished at employees of the businesses he robbed, during seven of the eight robberies.
Under the terms of his plea agreement, Rodriguez will be sentenced to a prison term within the range of 36 to 60 months on Counts 1 through 8, the Hobbs Act charges, of the information, and to 84 months on Count 9, the firearms charge. The 84 months must be served consecutive to the sentence imposed on the Hobbs Acts counts for a prison sentence of not less than 120 months and not more than 144 months. Rodriguez has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Alaska Resident Pleads Guilty to Drug Dealing, Money LaunderingRead the Press Release
SACRAMENTO, Calif. — DuWayne LeDoux, 55, of Kodiak, Alaska, pleaded guilty today to possession with intent to distribute methamphetamine and conspiracy to structure cash deposits, United States Attorney Benjamin B. Wagner announced.
According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.
Kodiak, Alaska is on an island off the southern coast of Alaska, with approximately 14,000 residents.
This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force. Assistant United States Attorneys Jason Hitt and Jean M. Hobler are prosecuting the case.
Co-defendant MacDougal pleaded guilty in November 2012, and is currently serving a five-year sentence.
LeDoux is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 7, 2016. LeDoux faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Alabama Man’s Minor Role in Heroin Transaction Leads to 18 Month Prison SentenceRead the Press Release
SCRANTON--The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 19-year-old Alabama man was sentenced to 18 months in prison today by Senior U.S. District Court Judge James M. Munley in Scranton, for playing a minor role in a single heroin transaction in October 2014.
According to United States Attorney Peter Smith, the defendant, Corey Wortham, of Montgomery, Alabama, previously pleaded guilty to conspiracy to distribute heroin. Wortham admitted to traveling from Alabama to Luzerne County to participate with others in a heroin transaction on October 11, 2014. Agents arrested Wortham and others after the transaction.
Wortham was indicted by a federal grand jury in October 2014, as a result of an investigation by agents of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kingston Police Department.
Judge Munley ordered Wortham to serve three years on supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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"Purse Man" Charged with Trafficking Counterfeit GoodsRead the Press Release
PHILADELPHIA – Lassana Nianghane, 52, of Philadelphia, PA, was charged by information, filed yesterday, with trafficking in counterfeit goods, announced United States Attorney Zane David Memeger. According to the information, Nianghane, also known as “the Purse Man,” sold counterfeit womens’ designer purses and counterfeit sneakers, among other items, on the sidewalk near Germantown and Chelten Avenues in Philadelphia PA.
According to the information, between September 2011 and June 2014, Nianghane intentionally trafficked in approximately $127,200 worth of goods and used counterfeit marks identical to and substantially indistinguishable from the shape and imprints found on genuine designer purses and sneakers.
If convicted, defendant Nianghane faces a maximum possible sentence of 10 years in prison, a fine of up to $2 million, a $100 special assessment and up to three years of supervised release.
The case was investigated by U.S. Department of Agriculture Office of Inspector General and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Floyd Miller.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
30 September 2015
YMM Gang Members Sentenced to 21-Plus Years in Prison for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALFRED COBBINS, age 23, and SHAWN GRACIN, age 22, both residents of New Orleans, were sentenced today for their participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”
U.S. District Judge Kurt D. Engelhardt sentenced COBBINS to 252 months (21 years) of imprisonment and GRACIN to 270 months (22.5 years) imprisonment. Each defendant was also given 5 years of supervised release following their term of incarceration.
COBBINS and GRACIN were originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, COBBINS and GRACIN and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
“This is just another example of how serious the federal government is in helping turn the tide of violence that is occurring in New Orleans,” stated U.S. Attorney Polite. “These local gangs have caused serious harm to the neighborhoods of this City, and the federal government will continue to work with local authorities to bring these individuals to justice.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (MAG) Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
Wisconsin man found guilty of federal drug and Racketeering chargesRead the Press Release
LUFKIN, Texas – A 41-year-old man from Milwaukee, Wisconsin has been convicted on federal drug and money trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Henry Korvett Bams, of Milwaukee, Wisconsin, was found guilty by a jury today after a three day trial before the Honorable Michael H. Schneider. Bams was found guilty of conspiracy to possess with the intent to distribute cocaine in an amount of five kilograms or more and use of an interstate facility in aid of racketeering.
Bams and his co-defendant, Frederick Mitchell, were indicted on September 3, 2014. On Sunday, July 6, 2014, Bams and Mitchell were stopped for a traffic violation by the Texas Department of Public Safety while traveling southbound on US Highway 259 in Nacogdoches County, Texas. The officer eventually conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana. Following an arrest on state charges, both men were released when the charges were dismissed. In addition, the Nacogdoches County District Attorney’s office returned all but $100,000 of the seized currency to Bams and Mitchell. On July 22, 2014, Bams and Mitchell were stopped for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30. The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside hidden compartments within the vehicle. Two bank deposit slips were also discovered within the vehicle. On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account referenced in the deposit slips and seized approximately $135,015.14 in drug proceeds.
Mitchell pleaded guilty to the charges on January 7, 2015 and was sentenced to a term of imprisonment of 84 months on April 9, 2015.
Bams faces a minimum of 10 years to life in federal prison for the drug distribution violation and up to five years for the interstate transportation in aid of racketeering violation. A sentencing date has not been set.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, Milwaukee, Wisconsin District Office, the Federal Bureau of Investigation, and the Texas Department of Public Safety, and is being prosecuted by Assistant U.S. Attorneys Baylor Wortham and Lauren Gaston.
Winston-Salem Man Sentenced for Firearms ViolationRead the Press Release
GREENSBORO, N.C. – A Winston-Salem man was sentenced to 180 months of imprisonment for possession of a firearm by a felon, announced United States Attorney Ripley Rand.
Xavier Pierre Walker, 44, of Winston-Salem, North Carolina, pleaded guilty to one count of possession of a firearm by a felon. Walker was sentenced on September 29, 2015, by United States District Judge Catherine C. Eagles, to 180 months imprisonment followed by five years of supervised release and a special assessment of $100.00.
Walker was arrested on June 1, 2014, in Chatham County on state charges. At that time, Walker possessed two firearms, in violation of federal of federal law.
This case was investigated by the Chatham County Sheriff’s Office, North Carolina State Bureau of Investigation, Bureau of Alcohol, Tobacco and Firearms Division and was prosecuted by Assistant United States Attorney Michael A. DeFranco.
Docket Number 1:15CR117
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Wilmington Man Sentenced for Drug and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court, Senior United States District Judge W. Earl Britt sentenced ADREAN LAMONT JONES, 29, of Wilmington, to 90 months imprisonment followed by 5 years of supervised release. On June 1, 2015 JONES pleaded guilty to possession with intent to distribute a quantity of Phencyclidine (PCP) and possession of a firearm in furtherance of a drug trafficking crime on June 3, 2014.
According to the investigation, a deputy with the Duplin County Sheriff’s Office attempted to make a traffic stop after observing a vehicle on I-40 operated by JONES swerving back and forth across the center line. After deputies successfully forced JONES to stop, JONES refused to exit his vehicle. It was later revealed that JONES was under the influence of phencyclidine (PCP), a Schedule II controlled substance. In the vehicle, law enforcement located a loaded handgun and PCP.
Investigation of this case was conducted by the Duplin County Sheriff’s Office, the North Carolina State Highway Patrol, and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Verona Man Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Verona, Mo., man was indicted by a federal grand jury today for producing and receiving child pornography.
Allen S. Worley, 41, of Verona, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Worley attempted to use a minor, identified as Jane Doe #1, to produce child pornography between Dec. 9, 2014, and April 16, 2015. Worley is also charged with receiving child pornography over the Internet.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Aurora, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Upton Woman Sentenced for Defrauding Federal Benefits ProgramsRead the Press Release
BOSTON – An Upton, Mass. woman was sentenced today in U.S. District Court in Worcester for stealing more than $128,000 in Social Security benefits and providing false information in applications for subsidized housing.
Patricia Kwiatkowski, 64, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years of probation, including three months of home or community confinement, and ordered to pay restitution of $128,101 to the Social Security Administration and $2,391 to the U.S. Department of Housing and Urban Development. In June 2015, Kwiatkowski pleaded guilty to stealing public money.
Kwiatkowski’s father died in 2006, but the father’s monthly Social Security benefits continued to be directly deposited into his bank account. Although she was not entitled to this money, Kwiatkowski signed her late father’s name on more than 100 checks written from his account to pay her own bills. She also made more than 150 ATM withdrawals from the account, and spent money from the account at retail stores. In total, from 2006 to 2014, Kwiatkowski received and spent $128,101 in Social Security funds to which she was not entitled.
During the entire time that she was removing Social Security benefits from her late father’s account, Kwiatkowski was also receiving her own Social Security benefits of about $1,000 per month. In addition, she began receiving food stamps in 2009, MassHealth benefits in 2011, and subsidized housing in 2013. In 2013 and 2014, she provided false information on her applications for subsidized housing.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money:
In April 2015, Graeme Griffith, of Andover, was sentenced for stealing $149,285 from Social Security from 2003 to 2014.
Also in April 2015, Frances Kenney Moseley, of Boston, was sentenced for stealing $222,172 from Social Security from 2003 to 2010.
In February 2015, Charles Gerbutavich, of Manchester, was sentenced for stealing $161,587 from Social Security from 1993 to 2014.
In October 2014, Mary Murphy, of Dorchester, was sentenced for stealing $206,679 from Social Security and $143,098 from the Civil Service Retirement System from 1977 to 2013.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The Kwiatkowski case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
U.S. Department of Justice Awards Grant Funding to Iowa to Combat MethRead the Press Release
CEDAR RAPIDS – Earlier this week the United States Department of Justice announced that nearly $18 million in Community Oriented Policing Services Office (COPS) grant funding was awarded through the COPS Anti-Gang Initiative, COPS Anti-Heroin Task Force Program, and the COPS Anti-Methamphetamine Program. Iowa was one of seven states to receive grant funding through the COPS Anti-Methamphetamine Program (CAMP). The amount awarded to the Iowa Division of Narcotics Enforcement was $282,561.
Only state law enforcement agencies authorized by law or by state agency to engage in or supervise anti-methamphetamine investigative activities are eligible to apply for CAMP funding. Agencies that applied as part of a new or existing anti- methamphetamine task force with multi-jurisdictional reach and an inter- disciplinary team structure received additional consideration.
“We look forward to the work of our local and state law enforcement partners,” said COPS Office Director Ronald Davis. “By getting methamphetamine off the streets and shutting down laboratories, investigating illicit activities related to the distribution of heroin or unlawful distribution of prescriptive opioids, and combating gang activity through enforcement, prevention, education and intervention, we can make the country safer for everyone.”
Kevin W. Techau, United States Attorney for the Northern District of Iowa said, “Methamphetamine continues to be a scourge in Iowa. This federal grant will allow law enforcement at the federal, state, and local levels to continue to work together against methamphetamine in communities across Iowa. The United States Attorney’s Office for the Northern District of Iowa will continue to work with our law enforcement partners every day in every way possible."
CAMP is a competitive grant program designed with a focus on advancing public safety by providing funds directly to state law enforcement agencies to investigate illicit activities related to the manufacture and distribution of methamphetamine. CAMP provides funding directly to state law enforcement agencies in states with high seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures for the purpose of locating and investigating illicit activities, including precursor diversion, laboratories and methamphetamine traffickers. For more information about the COPS Anti-Methamphetamine Program and a list of grant recipients, visit http://cops.usdoj.gov/Default.asp?Item=2716.
Since 1995, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance. For additional information about COPS, please visit www.cops.usdoj.gov.
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U.S. Attorney Sharpe Commends VI for Receiving Multiple GrantsRead the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe today commended the Virgin Islands Government for receiving several additional grants from the U.S. Justice Department’s Office of Justice Programs. Five grants totaling over $2 million were awarded on September 23, 2015. Sharpe said the U.S. Department of Justice and the U.S. Attorney’s Office are committed to improving the effectiveness and efficiency of law enforcement by providing resources and supporting programs that strengthen the community.
The largest of the five grants awarded is a $1.123 million grant to the Law Enforcement Planning Commission. The grants are:
The Edward Byrne Memorial Justice Assistance Grant for $610,774 was awarded to the Virgin Islands Law Enforcement Planning Commission. The grant will assist in improving the operational effectiveness of law enforcement using evidence-based and data driven efforts in reducing crime, improve investigations and prosecutions efforts for drug and violent crime and increase funding assistance to communities and neighborhoods to prevent delinquency and reduce juvenile crime.
The VOCA Victim Assistance Formula Grant for $1,123,431 was awarded to the Law Enforcement Planning Commission to provide competitively awarded grants to state and local community-based organizations that provide direct services to crime victims.
The Paul Coverdell Forensic Science Grant for $63,705 was awarded to the Virgin Islands Department of Justice to assist VIDOJ in improving the quality, quantity and timeliness of forensic science in the territory.
The Victim Assistance Discretionary Grant Training Program for $57,292 was awarded to the Virgin Islands Law Enforcement Planning Commission to support training and technical assistance for victim grantees and others who work with crime victims.
The Victim Compensation Formula Grant for $163,000 was awarded to the Virgin Islands Department of Human Services on St. Croix to enhance state victim compensation payments to eligible crime victims.
Two Tennessee Men Each Sentenced to 28 Years in Prison for Killing During Home Invasion Robbery in ClarksvilleRead the Press Release
Michael Massey, 26, of Lexington, Tennessee, and Demario Winston, 27, of Clarksville, Tennessee, were each sentenced to 28 years in prison for killing during a home invasion robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. Massey was sentenced yesterday and Winston was sentenced on September 2, 2015. Both pleaded guilty on May 29, 2015, before Chief U.S. District Court Judge Kevin H. Sharp, to conspiracy to commit Hobbs Act Robbery and use of a firearm in a crime of violence resulting in death. Massey also pleaded guilty to a separate count of Hobbs Act Robbery, and was ordered to pay $17,000 in restitution.
According to admissions reflected in the plea agreements, on May 7, 2011, Massey, Winston and others attempted to rob a home in Clarksville, and Massey used a sledge hammer to gain entry. The conspirators previously had been advised that a large amount of cocaine and cash was stored inside a safe in the basement of the home.
The defendants further admitted that, while inside the home, Winston, who was armed with a 9mm pistol, engaged in a gun fight with the homeowner on the first floor as other conspirators attempted to force one of the occupants of the home, Raul Triana, to open the safe, and pistol-whipped him in the face in the process. Evidence introduced in the plea hearing indicated that, in response to the shooting on the first floor, some of the conspirators fled the home, and Massey, who was armed with an assault rifle, fled through the basement where he encountered Triana and shot and killed him.
In addition, Massey admitted that, on Oct. 21, 2011, he and a co-defendant planned the robbery of the owner of a Clarksville-based construction company. Massey, together with two others executed the robbery at gunpoint.
This case was investigated by the Clarksville Police Department and the DEA. The case was prosecuted by Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee and Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
Two Orlando Men Federally Indicted on Carjacking ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Orlando residents Dante Askins (18) and Gregory McDonald (18) with carjacking and using a firearm while committing that offense. Each faces a maximum penalty of 25 years in federal prison for the carjacking conviction and a mandatory 7-year consecutive term of imprisonment for the firearm conviction.
According to court documents, on August 12, 2015, Askins and McDonald committed an armed carjacking of a U.S. Customs and Border Protection (CBP) officer at a hotel in Orlando. The victim, who was on vacation with his family, had gone down to his vehicle in the hotel parking lot to preload his GPS for a trip to Destin the next morning. Askins, McDonald, and two minors approached the victim with a firearm, pistol whipped him, and forced him into the back of his vehicle. The carjackers held the victim for approximately two hours. When OnStar location services contacted the vehicle, the carjackers fled and the victim escaped.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Orange County Sheriff’s Office, the Florida Department of Law Enforcement, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Update: Arraignment has been set for Tuesday, October 6, 2015, at 10:00 AM in Orlando Courtroom 4 C before Magistrate Judge Thomas B. Smith.
Two North Carolina Men Sentenced to Prison for Conspiracy and Identity TheftRead the Press Release
A resident of Raleigh, North Carolina, was sentenced to prison today for his role in a conspiracy to file false claims and for aggravated identity theft, Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina announced.
Christian Rhodes, 39, was sentenced to serve 144 months in prison to be followed by three years of supervised release and ordered to pay $1,036,918 in restitution to the Internal Revenue Service (IRS). Rhodes pleaded guilty on May 11 to one count of conspiracy to file false claims and one count of aggravated identity theft.
“Today’s sentence reflects the heavy price that will be paid by those individuals who steal identities and file fraudulent claims for refunds to line their own pockets,” said Acting Assistant Attorney General Ciraolo. “The department remains committed to working with the IRS and other federal and state law enforcement agencies to identify, prosecute and seek lengthy incarceration of these offenders.”
On Aug. 4, 2015, Senior U.S. District Court Judge James C. Fox of the Eastern District of North Carolina sentenced Rhodes’ brother and co-conspirator, Rodney Wright, 33, to serve 15 months in prison to be followed by three years of supervised release, and ordered him to pay $86,447 in restitution. Wright pleaded guilty to one count of conspiracy to file false claims.
According to court documents, Rhodes, Wright and others conspired to prepare and file false income tax returns with the IRS. Wright obtained personal identification information of taxpayers and provided this information to Rhodes so that Rhodes, and to a more limited degree Wright, could prepare and file false tax returns that fraudulently claimed refunds. Rhodes also obtained the personal information of taxpayers from other sources, which he used to prepare and file false tax returns. The false information on the returns included deductions, credits, employers, wages and withholdings. Rhodes and Wright charged taxpayers a fee for preparing false returns.
Rhodes also recruited his sister, Virginia Parks-Bert, and Kellian James to join his scheme. Parks-Bert and James pleaded guilty to conspiracy to file false claims with the IRS in the Eastern District of Virginia and were sentenced to serve 42 months and 15 months in prison, respectively. Rhodes taught Parks-Bert to file false tax returns and explained how to make it more difficult for the IRS to trace false returns back to her. Rhodes introduced James and Parks-Bert to each other so that James could recruit clients and Parks-Bert could prepare and file more tax returns. The total intended tax loss of the fraudulent claims filed in this conspiracy was more than $3 million.
Rhodes also filed false claims for refund using stolen identities. He used the identification of clients from previous tax years to file false tax returns in their names and then kept the entire fraudulently obtained refund. Rhodes deposited the fraudulently obtained refunds into his own bank accounts or the accounts of third parties, including family members and girlfriends. He then withdrew cash from his accounts or directed the accountholders to withdraw the funds and deliver them to him.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina and Trial Attorneys Lauren M. Castaldi and Rebecca Perlmutter of the Tax Division, who prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
Two Men Plead Guilty to Defrauding Memphis VA Medical Center of $1 MillionRead the Press Release
Memphis, TN – Two men have pled guilty to conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
According to the indictment, from August 2007 to July 2013, Andre Reddix, 59, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.
Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.
In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.
For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.
Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments amongst themselves, using the funds for personal expenses.
Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.
On Wednesday, September 30th, Reddix pled guilty to conspiracy to defraud the VA of approximately $1 million.
On Friday, September 11th, White pled guilty to conspiracy to defraud the VA of approximately $1 million.
Both pleas included $1 million criminal forfeiture provisions.
White is scheduled to be sentenced by Judge Samuel H. Mays Jr. on December 11, 2015.
Reddix is scheduled to be sentenced by Judge Samuel H. Mays Jr. on January 7, 2016.
Both defendants face individual sentences of up to five years imprisonment when sentenced. In addition to the $1 million criminal forfeiture provisions, the defendants face individual fines of up to $250,000.
Two Men Convicted of Operating Multimillion Dollar Advance Fee Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that on September 29, 2015, a federal jury in New Haven found DAVID C. JACKSON, also known as “C. David Manns,” “Charles Jackson” and “Andrew D. Smithson,” 53, and ALEXANDER D. HURT, also known as Alex Hurt and “Alex Dante,” 45, guilty of conspiracy and wire fraud related to an advance fee fraud scheme they conducted that defrauded more than 40 individuals out of more than $4.5 million.
On December 22, 2014, a federal grand jury returned an 11-count indictment charging JACKSON, formerly of Maryland, Ohio and Pennsylvania, and HURT, of Scottsdale, Arizona, and formerly of Massachusetts, with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. The indictment also charged HURT with one count of making a false statement to federal law enforcement. The trial before U.S. District Judge Janet Bond Arterton began on September 9, 2015, and the jury returned a verdict of guilty on all counts after deliberating for approximately three hours.
“This was a sophisticated advanced fee scheme operated across numerous states that preyed on more than 40 victims, including Connecticut citizens and businesses,” said U.S. Attorney Daly. “These defendants and their co-conspirators took advantage of individuals and business owners who had limited options in acquiring business loans in the difficult financial environment that existed after the recession of 2008. The hard-working small business owners, developers and even family farmers who were victimized by these defendants when all they wanted to do was to get funding to create, expand, or operate their businesses. Moreover, as part of the scheme, Mr. Jackson used multiple identities to conceal his criminal past and thwart background checks. Those seeking business loans need to be wary of any provider of funding that requires significant fees in advance – especially those who use the internet to prey upon trusting people who are unable to verify the representations made.”
“Driven by greed, and through lies, deceit, and deception, Mr. Hurt and Mr. Jackson took advantage of unsuspecting individuals and stole millions of dollars so they could line their own pockets and, in the case of Mr. Hurt, travel to numerous countries on four continents,” said FBI Special Agent in Charge Ferrick. “The false representations and empty promises that were made to the victims in this case were not worth the paper the fraudulent loan documents were printed on. The FBI will continue to vigorously pursue and bring to justice those who would operate advance fee fraud schemes.”
According to the evidence presented during the trial, in approximately September 2009, JACKSON, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio. In 2011, JACKSON changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania. Soon after changing the business name, JACKSON began introducing himself to victim clients as “Charles Jackson” and then also used the name “Andrew Smithson” to prevent victims from learning his true identity and the true nature of his background and his scheme.
HURT held himself out as Vice President of Brightway Financial Group, LLC, a company that used a business addresses in Grapevine, Texas. As established during the trial, HURT used his background as a pastor with a Brockton, Massachusetts church to gain the confidence of at least one victim who lost money in the scheme.
JACKSON, HURT and others defrauded individuals, including Connecticut residents, who wired funds to them in anticipation of receiving large business loans. The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.” The victims were promised a refund of the upfront fees if their loan transactions were not completed. In order to convince victim-borrowers that the loans were legitimate and Jalin and ACH had successfully secured loans in the past, JACKSON provided victims and potential victims the name and phone number of a co-conspirator and told them that they could contact her for a reference. After she was contacted, the co-conspirator falsely represented to victims and potential victims that she had, in fact, received funding from JACKSON for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin. The reference she gave was false and was just another part of the scam.
Through this scheme, more than 40 individuals provided JACKSON and HURT with more than $4.5 million in advance fees and funds that were to be held in escrow for business loans that were never provided. Some of the individuals received partial refunds of the advance fees they had provided, but the refunds were made using fees that had been paid by other victims in a Ponzi-like scheme.
JACKSON was previously convicted of federal bank fraud and money laundering offenses in October 2006 and was sentenced to 41 months in prison, followed by five years of supervised release. He was released from federal prison in September 2009 and operated this advance fee fraud scheme while on supervised release
Judge Arterton scheduled a forfeiture hearing for October 27, 2015, during which the government will seek an order of forfeiture ordering the defendants to forfeit all proceeds traceable to the scheme. Judge Arterton will schedule sentencing after the forfeiture hearing.
The charges of conspiracy to commit wire fraud and wire fraud carry a maximum term of imprisonment of 20 years on each count, and the charge of making a false statement to federal law enforcement carries a maximum term of imprisonment of five years.
JACKSON has been detained since his arrest on August 26, 2014. HURT is released on bond under the supervision of the U.S. Probation Office.
This matter has been investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Michael S. McGarry.
Two Defendants from Georgia Sentenced in Credit Card Fraud SchemeRead the Press Release
BOISE –Rakeen Anderson, 32, of Atlanta, Georgia and Jean Estinville, 27, of Lawrenceville, Georgia, were sentenced today in United States District Court for their roles in a credit card scheme that targeted local retailers in October 2014, U.S. Attorney Wendy J. Olson announced.
Rakeen Anderson was sentenced to 18 months in prison followed by three years of supervised release for conspiracy to commit wire fraud. Chief U.S. District Judge B. Lynn Winmill also ordered Anderson to pay $22,679.54 in restitution, along with the other co-defendants, and to forfeit $49,953.41 in cash proceeds from the offense. He pleaded guilty on May 27, 2015.
Jean Estinville was sentenced to 46 months in prison followed by three years of supervised release for conspiracy to commit wire fraud and aggravated identity theft. Judge Winmill also ordered Estinville to pay restitution in the amount of $22,679.54, along with the other co-defendants, and to forfeit $49,953.41 in cash proceeds from the offense. He pleaded guilty on May 12, 2015.
According to the plea agreements, Anderson and Estinville each admitted traveling to the District of Idaho, along with their co-defendants, for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded onto stock debit cards. Each defendant admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers.
Anderson admitted to traveling to three separate retail stores, and attempted to make a purchase using three different credit card numbers he was not authorized to use. Upon his arrest, officers found four debit cards encoded with unauthorized credit card numbers in his possession.
Estinville admitted to traveling to three separate retail stores, and making 14 total purchases, using six different credit card numbers that he was not authorized to use. Upon his arrest, officers found 55 access devices in his rental vehicle, consisting of various gift cards and pre-paid debit cards, as well as a Citizen EcoDrive watch in his possession that was purchased with an unauthorized credit card number.
Anderson and Estinville were indicted along with Kyandre Banks, 34, of Lilburn, Georgia, Clarence Collins, 34, of Douglasville, Georgia, Charles Moore, 25, of Stone Mountain, Georgia, Jonathan Penn, 20, of Suwanee, Georgia, Terrance Barimah, 26, of Lawrenceville, Georgia, Brian Treadwell, 25, of Buford, Georgia, Mikki Williams, 25, of Loganville, Georgia, and Rashine Kale, 39, of Lawrenceville, Georgia, on charges relating to a wire fraud and identity theft scheme. Collins, Banks, Estinville, Kale, Moore, Penn, Williams and Treadwell were each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson was charged with conspiracy to commit wire fraud and wire fraud. Barimah was charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
Co-defendants Brian Treadwell and Mikki Williams were sentenced on June 16, 2014. Treadwell received 75 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Williams received three years of probation and 200 hours of community service for misprision of a felony. Clarence Collins was sentenced on July 6, 2015, to 78 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Charles Moore was sentenced on July 7, 2015, to 51 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Jonathan Penn was sentenced on July 8, 2015, to 24 months in prison for conspiracy to commit wire fraud. Rashine Kale was sentenced on July 22, 2015, to 30 months in prison for conspiracy to commit wire fraud and aggravated identity theft.
Co-defendant Kyandre Banks is awaiting extradition to the District of Idaho on the warrant issued as a result of the Indictment. Terrance Barimah remains a fugitive.
The case was investigated by the United States Secret Service and the Boise Police Department.
Two Colombian Nationals Arrested for Attempting to Sell Fraudulent $1 Billion U.S. Bearer BondRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALMA DE JESUS MOJICA HERRERA, age 51, and LEONARDO SERRATO POLANIA, age 41, both residents of Bogota, Colombia, were arrested and charged in a federal complaint with attempting to sell a fictitious U.S. Bearer Bond.
According to court records, Homeland Security Investigations (“HSI”) received information alleging that HERRERA was seeking to sell fictitious obligations in the form of a United States Bearer Bond with a face value of $1,000,000,000 U.S. dollars. HERRERA made representations that the bond was worth much more than $1,000,000,000 due to the accrual of interest. On September 28, 2015, HERRERA and POLANIA, travelled from Bogota, Columbia and arrived in the United States at the New Orleans International Airport.
On September 29, 2015, HERRERA and POLANIA met over lunch with an HSI undercover agent (“UA”) to discuss the details of the sale of the U.S. Bearer Bond to the UA for a fee of $1,500,000,000. HERRERA and POLANIA agreed to meet the UA later that day at a local bank to make the exchange.
During the meeting at the bank, POLANIA displayed a United States Bearer Bond valued at $1,000,000,000 and handed the Bearer Bond to the UA. In return for the Bearer Bond, the UA gave HERRERA a check in the amount of $750,000,000 payable to “Alma MOJICA” constituting partial payment for the Bearer Bond. HERRERA then asked the UA to give her two checks. HERRERA requested one check payable to SERRATO POLANIA and a second check payable to MOJICA HERRERA in the amount of her commission. The UA requested that HERRERA and POLANIA write their names and the amounts they wanted on an envelope. POLANIA then wrote his name with the amount of $705,000,000 and MOJICA HERRERA'S name with the amount $45,000,000. The UA then left the bank with the Bearer Bond and HERRERA and POLANIA were taken into custody by HSI agents.
If convicted, HERRERA and POLANIA face a maximum term of imprisonment of 25 years, a fine of $250,000 and up to 3 years of supervised release.
U.S. Attorney Polite reiterated that the complaint is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
“Con artists who attempt to pass bogus securities typically fabricate detailed stories as part of their scam to take advantage of potential victims,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. “You would think a $1 billion face value would be a give-away that the currency is fake, but some people are still taken in, and HSI will continue to make investigating and seeking prosecution of financial criminals one its highest priorities.”
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Customs and Border Protection in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
Tractor Supply Company Agrees to Pay Penalty and Implement Company-Wide Compliance Program to Resolve Clean Air Act ViolationsRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with Tractor Supply Company Inc. and Tractor Supply Company of Texas L.P., that resolves allegations that the companies imported and sold more than 28,000 all-terrain vehicles, off-highway motorcycles and engines that did not comply with federal Clean Air Act certification and emission information labeling requirements. Under the settlement, Tractor Supply Company will implement a compliance plan to prevent future violations and mitigation projects to reduce air pollution. Tractor Supply Company will also pay a $775,000 civil penalty.
“We will take strong action to ensure that foreign-made vehicles and engines that are imported and sold in the U.S. comply with the same Clean Air Act requirements that apply to domestically-made products,” said Assistant Attorney General John C. Cruden, for the Department of Justice’s Environment and Natural Resources Division. “Under this settlement, Tractor Supply Company will not only pay a civil penalty and mitigate the potential adverse environmental effects of having sold noncompliant vehicles and engines, but will also take steps to ensure future imports and sales of its vehicles and engines meet Clean Air Act standards.”
“Emissions from vehicles and engines can cause serious health and environmental problems, so it’s imperative that importers and vendors ensure their products comply with federal clean air standards,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “It is also critical that we ensure a level playing field for companies that follow the law -- that is a cornerstone of our environmental enforcement programs.”
The Clean Air Act requires that every vehicle and engine sold in the United States be covered by a valid, EPA-issued certificate of conformity, which manufacturers obtain by certifying that vehicles meet applicable federal emissions standards for various pollutants. EPA and the Justice Department alleged that from 2006 to 2009, Tractor Supply Company imported from China and sold in the U.S. over 28,000 vehicles and engines, representing at least 10 vehicle and engine models, that varied from the certificates of conformity that had been submitted to EPA.
The vehicles had adjustable carburetors that were not described in the applications for certification, were produced by different manufacturers than the ones specified in the applications, were manufactured prior to the dates of the certificates of conformity, had model names that were not identified on the certificates of conformity, or were significantly more powerful than described. Some engines were incorrectly certified as non-road engines rather than as recreational vehicles and some, like certain of the vehicles, were significantly more powerful than described in the allegedly applicable certificate of conformity. The Department of Justice and EPA also alleged that the emission control information labels on certain vehicles did not comply with federal regulations, and that Tractor Supply Company provided an incomplete and inaccurate response to EPA’s information request.
The settlement requires Tractor Supply Company to implement a rigorous corporate compliance plan that requires regular vehicle and engine inspections, emissions and catalyst testing, staff training and reporting for five years. Tractor Supply Company will also mitigate potential adverse environmental effects of equipment already sold to consumers, which is estimated by EPA to be up to 23.5 tons of excess hydrocarbon and nitrogen oxide emissions and 12.2 tons of excess carbon monoxide emissions.
Motorcycles, recreational vehicles and spark-ignited engines emit carbon monoxide, a gas that is poisonous at high levels in the air even to healthy people and is especially dangerous to people with heart disease. These machines also emit hydrocarbons and nitrogen oxides, which contribute to the formation of ground-level ozone, commonly known as smog. Exposure to even low levels of ozone can cause respiratory problems and repeated exposure can aggravate pre-existing respiratory diseases.
This settlement is part of an ongoing effort by the EPA to ensure that importers of vehicles and engines comply with the requirements of the Clean Air Act and that retailers exercise due diligence in ensuring that their products comply fully with the regulations. In a similar case settled with The Pep Boys - Manny, Moe & Jack (Pep Boys) in 2010, EPA required implementation of a similarly extensive corporate compliance plan.
Tractor Supply Company is a national rural lifestyle retail supply chain. The company has stores in 49 states and its headquarters is in Tennessee.
The settlement, lodged Sept. 30, 2015 in the U.S. District Court for the District of Columbia, is subject to a 30-day public comment period and approval by the federal court.
For more information on this settlement or to read the consent decree, go to http://www.justice.gov/enrd/consent-decrees.
Tobyhanna Man Sentenced to Prison for Scheme to File False Tax Returns Resulting in Unwarranted Tax RefundsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Tobyhanna man was sentenced yesterday in federal court in Scranton by Senior United States District Judge Edwin M. Kosik to serve 51 months in prison on the charges of filing fraudulent claims and income tax returns with the IRS.
According to United States Attorney Peter Smith, Brandon Hill, age 34, pleaded guilty to filing false or fraudulent claims with the IRS and assisting in the filing of fraudulent Income Tax returns in October 2013.
The charges were brought as a result of an investigation by the Internal Revenue Service, Criminal Investigations which discovered that Hill was preparing and filing false and fraudulent tax returns from his residence in Tobyhanna. It was part of the scheme that coconspirators provided Hill with their name and true social security number, from which information Hill prepared and filed tax returns with inflated earnings and manufactured false credits and adjustments, thereby inflating the refund issued by the IRS.
In addition to the prison term, Judge Kosik also ordered that Hill should pay restitution to the IRS in the amount of $291,103, and be supervised by the U.S. Probation Department for three years following his release from prison.
The Internal Revenue Service, Criminal Investigations conducted the investigation. The case was prosecuted by Assistant United States Attorney Todd K. Hinkley.
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Three convicted of heroin, cocaine, painkiller traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Three individuals were convicted in federal court this week for their role in a drug trafficking operation involving heroin, cocaine, and oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
Donald White, 40, of Cleveland, Ohio, along with Kari Jako, 26, and Christina Crupe, 33, both of Wheeling, conspired to sell heroin, cocaine, and prescription painkillers throughout 2014 in Ohio and Marshall Counties in West Virginia.
White and Jako each pled guilty to one count of “Conspiracy.” Crupe pled guilty to a criminal Information charging her with one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” Each of the defendants 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 defendants.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Three Martinsburg residents convicted in Baltimore to West Virginia heroin trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Three individuals were convicted in federal court this week for their involvement in a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
The defendants convicted this week participated in a drug trafficking scheme in which heroin was transported across state lines from Baltimore, Maryland into West Virginia. The operation was interrupted in June 2015 by a 163-count federal indictment encompassing 41 defendants.
Veronica Gladden, 32, of Martinsburg, pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” She faces up to five years in prison and a fine of up to $250,000.
Scott Andrew Ours, 33, and James Miner Jenkins, 37, both of Martinsburg, each pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” They each face 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 defendants.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Federal Bureau of Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
Teamsters Indicted for Attempted Extortion of Reality Television Production CompanyRead the Press Release
BOSTON – Four members of Teamsters Local 25 were arrested today in connection with attempting to extort a television production company that was filming a reality show in the Boston area in spring 2014.
“The indictment alleges that a group of rogue Teamsters employed old school thug tactics to get no-work jobs from an out of town production company,” said United States Attorney Carmen M. Ortiz. “In the course of this alleged conspiracy, they managed to chase a legitimate business out of the City of Boston and then harassed the cast and crew when they set up shop in Milton. This kind of conduct reflects poorly on our city and must be addressed for what it is – not union organizing, but criminal extortion.”
“While unions have the right to advocate on behalf of their members, they do not have the right to use violence and intimidation,” said Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The strong-arm tactics the FBI has seen in this case are egregious and our investigation is far from over. Today’s arrests should send a message to those who think they can get away with manipulating the system that they better think twice.”
Mark Harrington, 61, of Andover; John Fidler, 51, of Holbrook; Daniel Redmond, 47, of Medford; and Robert Cafarelli, 45, of Middleton, were indicted on conspiracy to extort and attempted extortion of a television production company in order to obtain no-work jobs for fellow Teamsters.
According to the indictment, beginning in spring 2014, a non-union production company began filming a reality television show in and around Boston. The company hired its own employees, including drivers, for the filming of the show and did not need work performed by union members. Beginning on June 5, 2014, the defendants conspired to force the production company to pay Local 25 members for unnecessary work by threatening physical and economic harm to the company.
Among other things, the indictment alleges that on June 10, 2014, the defendants showed up at a restaurant in Milton where the production company was filming. The defendants entered the production area and began walking in lockstep toward the doors of the restaurant where they accosted film crew members and attempted to forcibly enter the restaurant. Throughout the morning, the defendants yelled racial and homophobic slurs at the film crew and others, threatened crew and cast members, and shouted profanities. The defendants also blocked vehicles from the entryway to the set, and used physical violence and threats of physical violence to try and prevent people from entering the set.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz; FBI Acting SAC Bonavolonta; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Milton Police Chief Richard G. Wells, Jr., made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan and Kristina E. Barclay of Ortiz’s Organized Crime and Gang Unit and Public Corruption Unit, respectively.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
CORRECTION: This press release has been revised to reflect the dismissal of charges against Richard Jeffrey due to misidentification. A fifth defendant, Michael Ross, was arrested and charged on Oct. 1, 2015.
Springfield Woman Pleads Guilty to Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman pleaded guilty in federal court today to her role in a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Lisa Lorre DeHaven, 34, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to making a false and fraudulent income tax return.
Co-defendant Cherie Christine Dupuis, 43, of Springfield, pleaded guilty on July 21, 2015, to leading the fraudulent tax return preparation conspiracy. Dupuis admitted that she and co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
For the 2009 and 2010 tax years, DeHaven knowingly aided and abetted Dupuis, and was aided and abetted by Dupuis, in the filing of a false federal income tax return with the IRS, claiming a tax refund to which DeHaven knew she was not entitled. DeHaven provided her personal information to Dupuis, which Dupuis then used to file false income tax returns.
DeHaven admitted that she filed false federal income tax return for the 2009 and 2010 tax years that falsely listed wages that had not been earned and federal income tax withholdings that had not been withheld. As a result, DeHaven fraudulently received a total of $19,791 in fraudulent income tax refunds. DeHaven gave Dupuis approximately half of the proceeds each year.
DeHaven is among a dozen defendants who have pleaded guilty. In addition to Dupuis, co-defendants Claudia Dorsey, 33, Amanda Leigh Boyd, 33, Johnny L. Cooper, 28, and Jeannie Marie Rhodes, 34, both of Springfield, Shawna Marie Hughey, 37, of Joplin, Mo., formerly of Springfield, Heather Nicole Drennen, 32, of Cameron, Mo., formerly of Springfield, William J. Coonce, 29, of Otterville, Mo., Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield, Asia Michelle Couchman, 26, of Oak Grove, Mo., and Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield, have also pleaded guilty.
Under federal statutes, DeHaven is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Service Members' Compensation for Unlawful Foreclosures Under the Servicemembers Civil Relief Act Rises to $311 MillionRead the Press Release
The Justice Department announced today that an additional 1,461 service members and their co-borrowers are eligible to receive over $186 million for home foreclosures under the department’s settlements with five of the nation’s largest mortgage servicers. Those settlements implement the protections of the Servicemembers Civil Relief Act (SCRA). Together with other foreclosure-related compensation announced by the department in February, a total of 2,413 service members and their co-borrowers are eligible to receive over $311 million. The five mortgage servicers are JP Morgan Chase Bank N.A. (JP Morgan Chase); Wells Fargo Bank N.A. and Wells Fargo & Co. (Wells Fargo); Citi Residential Lending Inc., Citibank, NA and CitiMortgage Inc. (Citi); GMAC Mortgage LLC, Ally Financial Inc. and Residential Capital LLC (GMAC Mortgage); and Bank of America N.A., Countrywide Home Loans Inc., Countrywide Financial Corp., Countrywide Home Loans Servicing L.P. and BAC Home Loans Servicing L.P. (Bank of America).
The compensation results from the SCRA portion of the 2012 settlement known as the National Mortgage Settlement (NMS) and an earlier settlement with Bank of America, for foreclosures that took place between Jan. 1, 2006, and Apr. 4, 2012, where the servicer obtained a foreclosure without a judicial proceeding or where the servicer obtained a default foreclosure judgment without filing a proper affidavit with the court stating that the service member was in military service.
“While this compensation will provide some financial relief to more than 2,400 service members and their families, the fact is no one serving our country in the Armed Forces should ever have to worry about losing their home to an illegal foreclosure,” said Acting Associate Attorney General Stuart F. Delery. “Through the Servicemembers and Veterans Initiative, the Department of Justice will continue to use every tool at our disposal to protect service members and their families from such unjust actions.”
“We are very pleased that the men and women of the armed forces who were subjected to unlawful foreclosure judgments while they were serving our country are now receiving compensation,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We look forward, in the coming months, to facilitating the compensation of additional service members who were subjected to excess interest charges on their mortgages. We appreciate that JP Morgan Chase, Wells Fargo, Citi, GMAC Mortgage and Bank of America have been working cooperatively with the Justice Department to compensate the service members whose rights were violated.”
Section 533 of the SCRA prohibits non-judicial foreclosures against service members who are in military service or within the applicable post-service period, as long as they originated their mortgages before their period of military service began. Even in states that normally allow mortgage foreclosures to proceed non-judicially, the SCRA prohibits servicers from doing so against protected service members during their military service and applicable post-military service coverage period. Section 521 of the SCRA prohibits mortgage servicers from obtaining default judgments against service members unless they file an affidavit with the court stating whether the defendant is in military service. If the affidavit shows that the person is in military service, the court must appoint an attorney to represent the service member and may delay or “stay” the foreclosure proceeding for a minimum of 90 days.
Under the NMS, for mortgages serviced by Bank of America, Wells Fargo, Citi and GMAC Mortgage, the identified service members will each receive $125,000, plus any lost equity in the property and interest on that equity. Eligible co-borrowers will also be compensated for their share of any lost equity in the property. To ensure consistency with an earlier private settlement, JP Morgan Chase will provide any identified service member either the property free and clear of any debt or the cash equivalent of the full value of the home at the time of sale, and the opportunity to submit a claim for compensation for any additional harm suffered, which will be determined by a special consultant, retired U.S. District Court Judge Edward N. Cahn. Payment amounts have been reduced for those service members or co-borrowers who have previously received compensation directly from the servicer or through a prior settlement, such as the independent foreclosure review conducted by the Office of the Comptroller of the Currency and the Federal Reserve Board.
The NMS process for identifying service members eligible for foreclosure-related relief is now complete. The department expects that additional service members will be identified in the coming months based upon ongoing reviews of Bank of America’s non-judicial foreclosures pursuant to the earlier settlement.
The NMS also provides compensation for service members who gave proper notice to the servicer, but were denied the full benefit of the SCRA’s 6 percent interest rate cap on pre-service mortgages. The service members entitled to compensation under this provision will be identified in the upcoming months.
The following chart shows the number of service members who will be compensated by each of the servicers for both non-judicial and judicial foreclosures:
Non-Judicial Judicial
Amount of Money to be Distributed
# of Servicemembers Eligible for Compensation
Amount of Money to be Distributed
# of Servicemembers Eligible for Compensation
Bank of America
$35,369,756
286
$63,686,567
490
Citi
$14,880,578
126
$24,146,544
197
GMAC Mortgage
$13,720,588
113
$11,516,002
89
JP Morgan Chase
$32,488,293
188
$27,424,558
204
Wells Fargo
$28,290,790
239
$59,484,334
481
TOTALS
$124,750,005
952
$186,258,005
1,461
Today the parties filed a joint motion with the federal district court in Washington, D.C., to extend the term of the SCRA compensation provisions in the National Mortgage Settlement, which would allow additional time to reach all the service members entitled to foreclosure relief, as well as to complete the interest-rate reviews, which are ongoing.
Borrowers should use the following contact information for questions about SCRA payments under the National Mortgage Settlement:
- Bank of America borrowers should call Rust Consulting Inc., the settlement administrator, toll-free at 1-855-793-1370 or write to BAC Home Loans Servicing Settlement Administrator, c/o Rust Consulting Inc., P.O. Box 1948, Faribault, MN 55021-6091.
- Citi borrowers should call Citi toll-free at 1-888-326-1166.
- GMAC Mortgage borrowers should call Rust Consulting Inc., the settlement administrator, toll-free at 1-866-708-0915 or write to P.O. Box 3061, Faribault, Minnesota 55021-2661.
- JPMorgan Chase borrowers should call Chase toll-free at 1-877-469-0110 or write to P.O. Box 183224, OH-7160/DOJ, Columbus, Ohio 43219-6009.
- Wells Fargo borrowers should call the Wells Fargo Home Mortgage Military Customer Service Center toll free at 1-877-839-2359.
Service members and their dependents who believe that their SCRA rights have been violated should contact an Armed Forces Legal Assistance office. To find the closest office, consult the military legal assistance office locator at http://legalassistance.law.af.mil and click on the Legal Services Locator. Additional information about the Justice Department’s enforcement of the SCRA and the other laws protecting service members is available at www.servicemembers.gov.