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25 September 2015
Nebraska Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced September 24, 2015, to six years in federal prison.
Jose William Orellana, 42, from South Sioux City, Nebraska, received the prison term after a May 22, 2015, jury verdict finding him guilty of conspiracy to distribute methamphetamine.
Evidence at trial showed Orellana participated in a conspiracy that distributed methamphetamine in Sioux City, Iowa and South Sioux City, Nebraska. Law enforcement officers gathered incriminating evidence through surveillance, and a series of covert drug buy operations from September 2013 through May 13, 2014.
Orellana was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Orellana was sentenced to 72 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system.
Orellana 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 Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4046.
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Mortgage Loan Originator Pleads Guilty, Unlicensed Appraiser Charged in Ongoing Mortgage Fraud InvestigationRead the Press Release
PROVIDENCE, R.I. – An ongoing federal and state law enforcement investigation into alleged mortgage fraud in Rhode Island has resulted to date in a former mortgage originator pleading guilty in federal court to conspiracy to commit bank fraud, and an unlicensed real estate appraiser being charged with allegedly stealing the identity of other appraisers when performing and submitting real estate appraisals to banks as documentation for mortgage loan applications.
Franchesco Franco, 34, of Providence, a former mortgage loan originator, pleaded guilty in federal court to conspiracy to commit bank fraud for his participation with a local real estate attorney and others in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to him who had recently died, in order to secure a loan in the amount of $157,102 for the purchase of a residence at 63 Wendell Street in Providence.
According to court documents, after the mortgage was issued, Franco filed fraudulent documents in the deceased person’s name in order to have his own name added to the deed for the property. Loan payments were never made to Flagstar Bank, an FHA-insured lender, by Franco or anyone else. As a result, the U.S. Department of Housing and Urban Development (HUD) paid an insurance claim to Flagstar Bank for the unpaid balance of the loan in the amount of $165,062. According to court documents, a corporation formed by the real estate attorney, an alleged co-conspirator in this matter, later purchased the note for $35,000.
In a separate matter discovered during the investigation into mortgage fraud in Rhode Island which resulted in the charges being brought against Franco, it is alleged that Dylan T. Kelly, 40, whose real estate appraiser’s license expired in September 2008, has continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of licensed appraisers without the licensed appraisers’ permission or knowledge. Kelly has been charged in federal court with conspiracy to commit bank fraud, false statements in loan applications and aggravated identity theft.
Franchesco Franco’s guilty plea and charges brought against Dylan T. Kelly are announced by United States Attorney Peter F. Neronha; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Franco admitted to the court that beginning in January 2010, he participated in a conspiracy in which he made false statements on a mortgage loan application and provided false documentation, including fraudulent tax returns, pay stubs, verification letters and bank statements, all in the name of a deceased person known to Franco, in order to secure a federally insured mortgage from Flagstar Bank in the amount of $157,102. Franco also provided copies of the deceased person’s social security card and driver’s license.
According to court documents, as part of the scheme, on April 15, 2010, more than three weeks after the death of the individual known to Franco, Franco filed a tax return for tax year 2009 in the deceased person’s name. In the filing, Franco provided the IRS his own personal bank account number, purporting that the bank account number belonged to the deceased individual and was to be used for direct deposit of a tax refund. The tax form was later provided by Franco to Flagstar Bank as supporting documentation for the mortgage loan application in the deceased person’s name.
According to court documents, in September 2010, one month after Flagstar issued the mortgage and a closing took place for purchase of the Wendell Street property, Franco forged or caused to be forged documents and the deceased person’s signature in order to have his name added to the deed for the property. No payments were ever made on the mortgage loan by Franco or anyone else. As a result, in July 2011, HUD paid an insurance claim to Flagstar Bank in the amount $165,062, which represented the balance of the mortgage loan. In March 2012, the real estate attorney allegedly involved in the conspiracy bought the note, which was in the deceased person’s name, for $35,000.
In a separate matter discovered by federal and state law enforcement and prosecutors from the U.S. Attorney’s Office during the ongoing investigation into mortgage fraud in Rhode Island, it is alleged that on at least four occasions Dylan Kelly, whose real estate appraiser’s license expired in September 2008, continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of licensed appraisers without the licensed appraisers’ permission or knowledge. It is alleged that between February 19, 2014, and December 2, 2014, Kelley fabricated and submitted appraisals in support of mortgage loans being sought on at least four properties in Providence and Pawtucket.
This matter, which is being investigated by the U.S. Department of Housing and Urban Development Office of Inspector General, U.S. Secret Service, Rhode Island State Police and the United States Attorney’s Office, is being prosecuted by Assistant U.S. Attorney’s Sandra R. Hebert and William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Missouri Man Sentenced for Wildlife TraffickingRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Rex Dale Rains II, 54, of Maryland Heights, Missouri, was sentenced on two counts of Wildlife Trafficking and two counts of False Labelling under the Lacey Act. For each of these misdemeanors, the United States District Court in East Saint Louis sentenced Rains to serve 24 months of probation. The district court ordered Rains to pay a $500 fine and a $100 special assessment. The district court also ordered Rains to pay restitution of $3,000 each to the U.S. Fish and Wildlife Service’s Lacey Act Reward Account and the Illinois Department of Natural Resources, Conservation Police Operations Assistance Fund, totaling $6,000. Rains must also pay $3,120 for the Collateral Forfeiture of the tilapia and he will forfeit the payment he received for the illegal transaction of $1,325. In all, Rains will owe $11,040 for committing the offenses.
Court records indicate that on June 12, 2012, and June 22, 2013, Rains illegally transported and sold blue tilapia which he obtained from out of Illinois. He also falsely labelled the blue tilapia as blue gill.
Tilapia, a non-native fish from tropical and subtropical Africa and the Middle East, have caused significant damage to the native ecosystems in which they have been released. The blue tilapia is considered a competitor with native species for spawning areas, food and space. In water in which the species is abundant, there has been a significant loss of vegetation and nearly all native fishes.
The case was investigated by the Special Agents from the U.S. Fish and Wildlife Service, Office of Law Enforcement, and the Illinois Department of Natural Resources, Conservation Police. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Michigan Man Sentenced to Federal Prison Term for Investment FraudRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges has sentenced Bryan T. Zuzga (39, Coldwater, Michigan) to 6 years in federal prison for conspiracy to commit wire fraud. He was also ordered to pay more than $10.7 million in restitution. Zuzga pleaded guilty on June 17, 2015.
According to court documents, Zuzga and his two conspirators, Jenifer E. Hoffman (38, Clermont) and John C. Boschert (43, Apopka), defrauded over $11 million from more than 100 victims through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the conspirators represented to investors that money would be placed in a Performing Private Placement Investment, and that Boschert had connections to the trading program being used. Investors were told that their investments would be safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line of credit, which would then be used in trading.
None of those representations were true. Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. The three also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The government obtained more than $850,000 from the sale of the properties. The proceeds from those sales were distributed to the victims of the scheme.
Boschert previously pleaded guilty for his role in this case, and was sentenced to nine years in federal prison on June 23, 2015. Hoffman has pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false tax return. Her sentencing hearing is scheduled for October 22, 2015.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Miami Gardens Resident Pleads Guilty to Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A Miami Gardens resident pled guilty to a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Rosheem Oneil Williams, 19, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, Williams faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to court documents, IRS-CI investigators noticed that, from January 17, 2015 through June 6, 2015, 187 tax returns claiming refunds totaling $363,457 were filed from Williams’ residence. A search warrant was executed at the residence on June 19, 2015, and law enforcement found and seized numerous items containing personal identification information (PII) (including names, dates of birth, and social security numbers). Specifically, agents found computer-generated lists and an Apple iPad containing hundreds of individuals’ PII.
Agents interviewed Williams, and he admitted that he possessed the PII found in the residence on June 19, 2015, and that he prepared and filed at least 180 tax returns without the permission of the individuals in whose names the returns were filed.
Williams is scheduled to be sentenced on December 2, 2015 at 2:00 p.m. United States District Judge Marcia G. Cooke.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to 97 Months for Trafficking Methamphetamine in New MexicoRead the Press Release
ALBUQUERQUE – Jorge Luis Garcia-Valenzuela, 22, a Mexican national illegally residing in Lakeside, Ariz., was sentenced this afternoon in federal court in Albuquerque, N.M., to 97 months in prison for conspiring to distribute methamphetamine in Socorro and Catron Counties, N.M. Garcia-Valenzuela will be deported following his term of incarceration.
Garcia-Valenzuela and his co-defendant Emery Lee Begay, 32, of Lakeside, Ariz., were arrested on Oct. 25, 2014, after they traveled to Quemado, N.M., with the intention of selling methamphetamine and marijuana to undercover officers. According to court records, on Aug. 19, 2013, Begay delivered 22.6 grams of methamphetamine and approximately three kilograms of marijuana to the undercover officers in Socorro, after Garcia-Valenzuela negotiated the drug deal with the officers. On Oct. 25, 2014, Garcia-Valenzuela and Begay traveled to Quemado where they intended to consummate a drug deal with undercover officers and were arrested. The officers seized 800 grams of methamphetamine and more than eight kilograms of marijuana when they arrested the two men.
Begay and Garcia-Valenzuela were indicted on Nov. 19, 2014, and charged with conspiracy to distribute methamphetamine and marijuana, distribution of methamphetamine and marijuana, and possession of methamphetamine and marijuana with intent to distribute. According to the indictment, the offenses were committed between Aug. 19, 2014 and Oct. 25, 2014, in Socorro and Catron Counties.
Garcia-Valenzuela entered a guilty plea on June 19, 2015, to a felony information charging him with conspiracy to distribute and possess methamphetamine.
On May 21, 2015, Begay pled guilty to a felony information charging him with participation in a methamphetamine trafficking conspiracy. Begay was sentenced on Aug. 20, 2015, to 60 months in prison followed by three years of supervised release.
This case was investigated by the Albuquerque and Gallup offices of the FBI, the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Ramah Navajo Tribal Police Department. It was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Meth Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Calvin James Monceaux, 38, of Daphne, was sentenced today in federal court. Monceaux pled guilty to conspiracy to possess with intent to distribute methamphetamine in May of 2015.
United States District Court Judge Callie V. S. Granade ordered that Monceaux serve a sentence of 122 months imprisonment, which will be followed by a five-year term of supervised release, which will commence when he is released from prison. As a special condition of his supervision, Monceaux will undergo drug testing and treatment. Judge Granade ordered that Monceaux pay $100 in special mandatory assessments, but she did not impose a fine.
The case was investigated by the the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Massachusetts Probation Officer Charged with Making False StatementsRead the Press Release
BOSTON – A Massachusetts Department of Probation officer was charged today with making a false statement to the FBI in connection with a public corruption investigation.
Lawrence Plumer, 46, of Brockton, was charged in an Information with one count of making a false statement to the FBI. Plumer has been a Massachusetts probation officer since 2000.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The plea agreement also filed today states that Plumer has agreed to resign his position as a probation officer. 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; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office also acknowledges the cooperation of the Massachusetts Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert A. Fisher of Ortiz’s Public Corruption Unit and Special Prosecutions Unit.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Probation Officer Charged with Making False StatementRead the Press Release
BOSTON – A Massachusetts Department of Probation officer was charged today with making a false statement to the FBI in connection with a public corruption investigation.
Lawrence Plumer, 46, of Brockton, was charged in an Information with one count of making a false statement to the FBI. Plumer has been a Massachusetts probation officer since 2000.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The plea agreement also filed today states that Plumer has agreed to resign his position as a probation officer. 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; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office also acknowledges the cooperation of the Massachusetts Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Robert A. Fisher of Ortiz’s Public Corruption Unit and Special Prosecutions Unit.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lee County Man Convicted of Bank Robbery with A Dangerous WeaponRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Jose Benitez, Jr. (46, Cape Coral) guilty of bank robbery with a dangerous weapon. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for January 4, 2016. Benitez was indicted on October 29, 2014.
According to evidence presented at trial, on October 8, 2014, Benitez robbed the Iberia Bank located at 812 Del Prado Boulevard South in Cape Coral. During the commission of the robbery, he walked into the bank dressed all in black with his face covered. He pointed a weapon at various bank employees, putting them in fear of their lives. He also threatened the employees, and forced them to get on the ground. Benitez fled the bank after the robbery, but left his glasses behind. A fingerprint recovered from the glasses was traced to Benitez.
This case was investigated by the Federal Bureau of Investigation and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.
Lake Charles man sentenced to more than 17 years in prison for receiving child pornography on computerRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles man was sentenced Thursday to 210 months in prison for receiving child pornography on his home computer.
Ricky Joseph Guidry, 31, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi on one count of receiving child pornography. He was also sentenced to serve a lifetime of supervised release and must register as a sex offender. According to evidence presented at the March 14, 2015 guilty plea, a witness told law enforcement agents there was child pornography on Guidry’s computer. After conducting an examination of the computer, it was determined that the defendant downloaded child pornography on October 2nd and 3rd of 2014. The images included prepubescent child pornography that was sadistic in nature.
Homeland Security Investigations and the Calcasieu Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
“The internet is no longer a safe haven for child predators to view illegal images and encourage child abuse,” Finley stated. “This office will prosecute those who download, view and distribute child pornography. Law enforcement officers and prosecutors will continue in their work to bring these abusers to justice.”
“Criminals who trade in child pornography steal the innocence of children and contribute to the destruction of innocent lives,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. “HSI special agents are actively working to identity and arrest those who abuse children as well as those who further exploit them by recording the abuse.”
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
La Jolla Bank Manager Conspired with Senior Bank Officials to Issue Hundreds of Millions of Dollars in Bad LoansRead the Press Release
Assistant U.S. Attorney Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – September 25, 2015
SAN DIEGO – Amalia Martinez, the head of Small Business Administration (“SBA”) lending at the now- defunct La Jolla Bank, pleaded guilty today to conspiracy to misapply bank funds, admitting that she and other senior bank executives accepted cash bribes and kickbacks from borrowers in return for issuing hundreds of millions of dollars in loans to borrowers they knew were unqualified and unlikely to repay. The mismanagement contributed to the bank’s collapse in February 2010, when the Federal Deposit Insurance Corporation (“FDIC”) took over and absorbed its outstanding debt of more than $1 billion. That $1 billion tab was ultimately passed on to the taxpayers.
Beginning in 2004, Martinez and senior bank officers agreed to issue loans under favorable terms to high-volume borrowers they referred to as “Friends of the Bank,” or “FOBs.” They accepted fraudulent loan applications from the FOBs, and overlooked negative information about the borrowers’ creditworthiness. When the FOBs defaulted on their repayment obligations, the bank executives would issue more loans, so that the borrowers could use bank funds to make payments on their existing loans. In this way, the executives covered up the bank’s true poor performance, and allowed the bad loans to inflate their performance measures—which, in turn, increased their compensation from the bank.
Several of the FOBs participated in the conspiracy by making large cash payments in return for loans. In late 2007, one construction borrower handed $100,000 in cash to a senior bank official, who went on to share that money with Martinez and others. Another borrower, who received $75 million in loans, met with the same bank official in Las Vegas in 2008, where he hand-delivered $250,000 in cash. In 2006, a restaurant owner paid $50,000 in cash in return for loans; later, when the borrower struggled to repay his debts, Martinez arranged to issue another $150,000 loan, to be used to make payments on existing debts.
The conspirators also took efforts to cover up the scheme. In 2009, as the bank was failing, regulators began to investigate La Jolla Bank’s poor performance. In order to conceal the mismanagement and self-dealing from the regulators, senior bank officials directed Martinez and other co-conspirators to destroy fraudulent financial statements and “FOB” designations contained within the bank’s files, according to Martinez’s plea agreement.
Martinez admitted that she arranged to lend more than $55 million in SBA-backed loans as part of the conspiracy, and lost nearly $20 million in bank funds when those loans defaulted. The bank’s conventional lending portfolio was much larger, resulting in hundreds of millions of dollars in loans issued as part of the conspiracy.
To date, three other defendants have been charged in this case. SBA borrower Annand Sluman pled guilty and admitted paying cash bribes to Martinez in return for several SBA loans he was issued between 2006 and 2008. By 2008, Sliuman was not qualified to borrow, and he submitted fraudulent documents as part of his loan application that made his businesses appear to be qualified. Sliuman’s assistant, Laura Ortuondo, assisted in creating the fraudulent loan documents. She pled guilty to making false statements to investigators about her involvement in the case; as part of her plea, she also admitted that she destroyed evidence and instructed her then-husband to testify falsely on her behalf to help cover up the crime.
In August 2015, La Jolla Bank loan broker Jocelyn Brown was indicted for paying bribes to Martinez and others, in return for their help arranging loans for Brown’s borrowers. According to the indictment, Brown kicked back a portion of her broker commission to ensure that loans she referred to the bank were approved, regardless of the soundness of the loans and their benefit to the bank. Brown was arrested on August 7, 2015, and her case is pending before United States District Judge Anthony J. Battaglia. No trial date has yet been set.
“By accepting bribes in exchange for lending out the bank’s money, corrupt officials at La Jolla Bank exposed the bank to a substantial risk and, ultimately, ran the bank into the ground. Their greed cost the taxpayers, who had to step in and repay its depositors,” said U.S. Attorney Laura E. Duffy. “Attacking corruption at financial institutions is one important tool we have to protect taxpayers and reduce the likelihood that our country will have to ‘bail out’ another bank.” U.S. Attorney Duffy noted that the investigation of La Jolla Bank continues, and anyone with information is encouraged to call the Federal Bureau of Investigation at 858-320-1800.
“The Treasury Inspector General for Tax Administration is committed to investigating and prosecuting individuals to the fullest extent of the law when they choose to commit acts of bribery,” said Special Agent in Charge Rod Ammari. “Bribery will never be tolerated and TIGTA is committed to rooting out such illegal activity, especially when the millions of dollars that are lost from bribery are passed on to the hard working American taxpayer.”
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing today’s guilty plea,” said Wade V. Walters, Special Agent in Charge of the FDIC’s Office of Inspector General. “We are proud to have played a role in uncovering a complex conspiracy that contributed to substantial losses to the Deposit Insurance Fund. We are committed to continuing investigative efforts to protect the viability of the fund and ensure integrity in our nation’s banks.”
“Ms. Martinez abused her position of trust to unjustly enrich herself at the expense of American taxpayers," stated FBI Special Agent in Charge, Eric S. Birnbaum. "The FBI is committed to using our investigative and intelligence capabilities to identify, disrupt and dismantle corrupt business practices within our financial industry.”
“When individuals defraud a bank they are in effect defrauding the community as well,” said Special Agent in Charge Leslie P. DeMarco of the Federal Housing Finance Agency’s Office of Inspector General. “It is particularly egregious when the individuals engaging in the fraud are the very individuals entrusted by the bank to serve the community. These individuals caused great harm to the bank, the community, and ultimately the taxpayers. We are committed to holding all bad actors accountable for their actions.”
Martinez’s guilty plea was taken before U.S. Magistrate Judge Bernard G. Skomal. She is scheduled to be sentenced by Judge Battaglia on November 30, 2015 at 9:00 a.m. On September 12, 2014, Judge Battaglia sentenced Laura Ortuondo to three years’ probation including 12 months of home detention, and ordered her to pay a $3,000 fine. Annand Sliuman is scheduled to be sentenced by Judge Battaglia on December 14, 2015, at 9:00 am.
DEFENDANTS AND CHARGES:
Amalia Martinez, 15CR2471-AJB Age 51 San Diego, CA
Conspiracy to misapply bank funds, in violation of 18 U.S.C. § 371
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary loss or gain, three years supervised release, $100 special assessment, restitution.
Jocelyn J. Brown, 15CR2049-AJB Age: 59 San Diego, CA
Conspiracy to commit bank bribery, in violation of 18 U.S.C. § 371
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary loss or gain, three years supervised release, $100 special assessment, restitution.
Bank bribery, in violation of 18 U.S.C. § 215
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or three times the value of the thing given, offered, or promised, five years’ supervised release, $100 special assessment, restitution.
Making a false statement to a federal agent, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
Annand Sliuman, 13CR3673-AJB Age 34 Spring Valley, CA
Bank bribery, in violation of 18 U.S.C. § 215
Maximum Penalties: 30 years’ imprisonment, $1,000,000 fine or three times the value of the thing given, offered, or promised, five years’ supervised release, $100 special assessment, restitution.
Laura Ortuondo, 13CR3879-AJB Age 34 Cupertino, CA
Making a false statement to a federal agent, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
AGENCIES
Federal Bureau of Investigation
U.S. Small Business Administration – Office of Inspector General
Treasury Inspector General for Tax Administration
Federal Deposit Insurance Corporation – Office of Inspector General
Department of the Treasury – Office of Inspector General
Federal Housing Finance Agency – Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Justice Department Announces Two Banks Reach Resolutions under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Migros Bank AG (Migros) and Graubündner Kantonalbank (Graubündner) have reached resolutions under the department’s Swiss Bank Program. These banks will collectively pay penalties totaling more than $18 million.
“It is abundantly clear from the agreements reached to date that for decades, many foreign financial institutions engaged in a pattern of conduct designed to facilitate the concealment of accounts owned by U.S. taxpayers, and to profit from these relationships,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “With each agreement reached under the Swiss Bank Program, and each U.S. accountholder who initiates and completes a voluntary disclosure to the Internal Revenue Service, we move a step closer to eliminating secret undisclosed accounts.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Migros was founded in 1957 and is headquartered in Zurich. As of Dec. 31, 2014, Migros Bank had 66 offices (all in Switzerland) and more than 1,300 employees. In January 2001, Migros Bank entered into a Qualified Intermediary (QI) Agreement with the Internal Revenue Service (IRS). The QI regime provided a comprehensive framework for U.S. information reporting and tax withholding by a non-U.S. financial institution regarding U.S. securities. Migros Bank issued several directives to its employees concerning the QI Agreement. An October 2000 directive stated that persons subject to U.S. taxes who did not want to be disclosed to the “U.S. tax authority” would not be authorized to hold or purchase U.S. securities in their accounts beginning on Jan. 1, 2001. The directive further stated that persons subject to U.S. taxes who disclosed their identities to the U.S. tax authority via an IRS Form W-9 could purchase and sell U.S. securities without restriction.
Migros Bank also created a handbook regarding the QI Agreement, which was first issued to its employees in 2003. The handbook recognized that “the U.S. retains the right to full taxation of its citizens,” but also that a “U.S. person has the option not to disclose to U.S. tax authorities.” The handbook instructed Migros Bank employees that “[i]f a U.S. person does not wish to disclose to U.S. tax authorities, it is sufficient if the W-9 form is not filled out for Migros Bank,” and that the customer could sign a waiver to forego investing in U.S. securities. The handbook further instructed Migros Bank employees that clients residing in the United States “who would like to refrain from disclosure” could be “tended to” by, among other things, retaining their mail in Switzerland through hold-mail agreements, not making regular fund transfers to the United States and not sending payment orders from the United States.
From 2001 until 2005, Migros Bank accepted referrals of U.S. persons as new clients from an external asset manager based in Switzerland. The external asset manager brought a total of 165 U.S.-related accounts to Migros Bank during that period, and most of those accountholders were U.S. residents. The maximum value of these accounts during that period was approximately $62 million. The external asset manager had full control of his clients’ accounts, and Migros Bank’s relationship managers usually interacted with him rather than with his clients. In 2005, Migros Bank decided to terminate its relationship with the external asset manager, but it did not end the relationship until the end of 2006 in order to provide the external relationship manager with additional time to contact his clients and possibly move their funds to other depositary banks. Alternatively, his clients could elect to stay at Migros Bank and give the external asset manager powers of attorney to continue managing their accounts.
In December 2008, Migros Bank’s executive board established a working group of bank officials to study the situation of U.S.-domiciled clients, whom Migros Bank considered to be the riskiest U.S. persons from a U.S. tax-enforcement perspective, identify any related risks to Migros Bank and propose measures to limit such risks. The working group assessed the risk of U.S. tax authorities taking actions against additional Swiss banks as moderate and the risk of Migros Bank’s website and e-banking services causing it to fall under U.S. bank supervision as low. They also assessed the risk of relationship managers’ insufficient legal and linguistic knowledge causing erroneous advice to U.S.-domiciled clients as moderate.
The working group considered discontinuing business with all U.S.-domiciled clients to be a “low priority” because that business generated earnings with hardly any additional expenditure and had “further potential as various banks are discontinuing the provision of advisory services.” Instead, the working group considered the creation of a U.S. desk to be a top priority. The working group presented a business case for this option that envisioned obtaining an additional one percent share of the total U.S.-domiciled clients with more than 1 million Swiss francs in assets then being served by all Swiss banks. The working group estimated that there were more than 2,500 UBS clients alone in that category. The business case also envisioned potentially obtaining an additional two percent share of all other U.S.-domiciled clients, “depending on the strategy.” The working group estimated that this course of action would result in Migros Bank having 250 million Swiss francs under management from U.S.-domiciled clients.
The executive board ultimately decided, starting in 2009, to create a U.S. desk by re-assigning all U.S.-domiciled clients, whether in premium or retail banking, to a group of premium-banking relationship managers who spoke English and had received specialized regulatory training. The head of the premium-banking department had ultimate responsibility over this team, which eventually included nine relationship managers. In May 2009, Migros Bank issued a directive requiring that the head of the premium-banking department approve all new U.S.-domiciled clients, prohibiting Migros Bank employees from sending correspondence to the United States or accepting orders received by telephone, fax or mail from the United States, and prohibiting U.S.-domiciled clients from initiating transactions through the e-banking system. After issuing the directive, Migros Bank accepted 37 new U.S.-related accounts in the remainder of 2009. Of these, 17 were funded by transfers from banks with operations already under investigation by the department, or Category 1 banks.
Since Aug. 1, 2008, Migros Bank provided banking services for 898 U.S.-related accounts, with more than $273 million in assets. Migros Bank will pay a penalty of $15.037 million.
Graubündner was founded in 1870. It is headquartered in Chur, Switzerland, and has 63 branches, all located within the Canton of Graubünden.
With respect to its U.S.-related accounts, Graubündner offered a variety of traditional Swiss banking services that, though available to all of its clients, were used by some U.S. taxpayers to conceal their undeclared assets and income. These services included code word or numbered accounts and assisting U.S. clients in executing forms that directed Graubündner not to disclose their names to the IRS. For approximately 76 U.S-related accounts, Graubündner provided hold mail services, through which Graubündner held bank statements and other mail in Switzerland rather than sending the documents to the United States. In a few cases, Graubündner processed substantial cash withdrawals in connection with U.S. clients’ closure of their accounts. For example, at an account closing in December 2009, the bank permitted a U.S. taxpayer to withdraw approximately $112,000 in cash. Graubündner also closed a U.S.-related account held by a U.S. citizen and resident by transferring the account funds to another Graubündner account held in the name of the U.S. client’s parents, who lived in Switzerland.
Graubündner opened and maintained accounts for seven U.S. taxpayers in the names of offshore structures where the U.S taxpayer’s interest in the account was not reported to the IRS. Five U.S. citizens were the beneficial owners of accounts held in the names of nominee entities, including four Liechtenstein foundations and a British Virgin Islands company. Two of these accounts had traded in U.S. securities, but Graubündner did not report account earnings or transmit withholding taxes to the IRS as required. Graubündner also opened and maintained two accounts in the names of Swiss companies, one for a Swiss citizen and one for a German citizen, both of whom resided in the United States.
In December 2008, Graubündner required that all new and existing U.S. clients, irrespective of domicile, submit a handwritten declaration of compliance with their U.S. tax obligations, waive Swiss banking secrecy and provide a Form W-9. Graubündner also prohibited the opening of new accounts for entities with a U.S. beneficial owner, even with a Form W-9 and confirmation of tax compliance. New U.S. clients who failed to submit the requested documents were not supposed to be accepted, though initially some relationship managers continued to accept U.S. customers without securing a Form W-9. Existing clients who failed to meet these requirements were to be exited by June 2010. In July 2009, Graubündner stopped accepting any new U.S. clients, with the exception of U.S. nationals residing in Switzerland or Swiss nationals temporarily residing in the United States.
Graubündner has fully cooperated with the department, providing all relevant and requested information and documents as part of its participation in the Swiss Bank Program. Further evidencing Graubündner’s cooperation is the fact that its employees and members of the board of directors have not objected to the disclosure of their names and functions at Graubündner to the department. In compliance with Swiss privacy laws, Graubündner has sought and obtained bank secrecy waivers from many of its U.S. customers, whose names were then provided to the U.S. government.
Since Aug. 1, 2008, Graubündner had 364 U.S.-related accounts with an aggregate maximum balance of approximately $105.5 million. Graubündner will pay a penalty of $3.616 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“Today’s resolution with Migros Bank AG and Graubündner Kantonalbank continues the progress of DOJ’s Swiss Bank Program,” said acting Deputy Commissioner International David Horton of the IRS Large Business & International Division. “This settlement aids our efforts to make sure U.S. taxpayers report their foreign accounts and pay taxes on the income earned on those accounts. Working with DOJ, we continue to make progress fighting offshore tax evasion and those who aid such illegal activity.”
“The Swiss Bank Program continues to pay dividends due to the strength of our partnership with the Department of Justice,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “A significant element of this program has been the influx of highly-detailed account data along with information about the variety of schemes used to hide assets overseas. This information will continue to be used on both an individual and global basis to combat international tax evasion.”
Acting Assistant Attorney General Ciraolo thanked the IRS, and in particular, IRS-CI and the IRS Large Business & International Division for their substantial assistance. Ciraolo also thanked Gregory E. Van Hoey, Michael R. Pahl, John E. Sullivan and Thomas G. Voracek, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jury Finds Springdale Man Guilty of Drug Conspiracy and Firearm ChargesRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Gilberto Ray Ramos, age 41, of Springdale, was found guilty on one count of Conspiracy to Distribute Methamphetamine, three counts of Distribution of Methamphetamine, one count of Possession with Intent to Distribute Methamphetamine and one count of Felon in Possession of a Firearm following a two day jury trial. The Honorable Timothy L. Brooks presided over the trial in the United States District Court in Fayetteville.
According to evidence presented to the jury, during the course of an ongoing operation, investigators learned that Ramos was distributing suspected methamphetamine from his residence in Springdale. Detectives then obtained and executed a search warrant at the defendant’s residence. During the execution of the search warrant, methamphetamine, digital scales, plastic baggies, a large amount of U.S. currency, and a Kimber .45 caliber handgun were discovered. In a separate DEA investigation agents learned that Ramos was conspiring with others to distribute methamphetamine in the Northwest Arkansas area.
Ramos will be sentenced at a later date. The maximum sentence for Conspiracy to Distribute Methamphetamine and Distribution of Methamphetamine are not more than 30 years imprisonment, not more than $2,000,000 fine, or both. The maximum sentence for felon in possession of a firearm is not more than 10 years imprisonment, not more than $250,000 fine, or both. The sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense, and the characteristics of the violations.
This case was investigated by the 4th Judicial Drug Task Force, the DEA and the ATF. Assistant United States Attorneys David Harris and Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Joint Statement by Attorney General Loretta E. Lynch and Secretary of Homeland Security Jeh JohnsonRead the Press Release
We welcome recent progress made with the People’s Republic of China on cyber issues of concern to both the United States and China. Through the efforts of President Obama and President Xi Jinping, as well as officials from both sides, we have made several key commitments focused on concrete actions and arrangements to address our differences on cyber issues. These include:
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The United States and China committed that both sides should increase law enforcement communications regarding malicious cyber activities, including breaches of sensitive information, and provide timely responses to requests for information and assistance concerning those activities. Further, both sides agreed to provide updates to the other side on the status and results of those investigations and to take action, as appropriate.
- The United States and China committed that neither country’s government will conduct or knowingly support cyber-enabled theft of intellectual property, including trade secrets or other confidential business information, with the intent of providing competitive advantages to companies or commercial sectors.
As a means of ensuring that these commitments are upheld and responses are provided in a timely and comprehensive manner, the United States and China committed to establish a high-level joint dialogue mechanism on cybercrime and related issues. We will co-chair the dialogue for the United States, with participation from representatives of the FBI, the U.S. Intelligence Community and other agencies. China will designate an official at the Ministerial level to lead representatives from the Ministry of Public Security, Ministry of State Security, Ministry of Justice and the State Internet and Information Office. This dialogue will enable both sides to periodically assess our progress; address any issues related to investigative cooperation or information exchanges; and outline means for relevant agencies on both sides to enhance cooperation. Further, the two countries will establish a hotline to address urgent issues or difficulties that have not otherwise been successfully resolved. We look forward to scheduling the first session of this dialogue before the end of the calendar year.
We intend to remain personally engaged on these issues to ensure that both sides take concrete and reciprocal steps to advance progress made thus far. These commitments do not resolve all our challenges with China on cyber issues. However, they do represent a step forward in our efforts to address one of the sharpest areas of disagreement in the U.S.-China bilateral relationship. The United States is prepared to fulfill our commitments and make reciprocal efforts. We expect China to do the same and have been clear with the Chinese government that their words must be matched by actions.
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Iowa Man to Federal Prison for Firearm and Meth ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced September 15, 2015, to ten years in federal prison.
William Dean Rees, 27, from Fort Dodge, Iowa, received the prison term after a May 5, 2015, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possession of a firearm by a felon.
At the guilty plea, Rees admitted his involvement in a conspiracy from May 2014 through August 2014 that distributed more than 150 grams of actual (pure) methamphetamine. On August 18, 2014, law enforcement executed a search warrant at Rees’ residence and seized a number of items, including over 53 grams of actual (pure) methamphetamine, 9mm handgun, ammunition, digital scales, over $4,000, and other drug paraphernalia. Rees further admitted he had Jacob Jamison purchase two Hi-Point 9mm handguns for him as Rees was unable to purchase or possess firearms since he was a felon.
Rees was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Rees was sentenced to 120 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Rees 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 Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Fort Dodge Police Department, Webster County Sheriff’s Office, Pocahontas Police Department, Pocahontas Sheriff’s Office, and Calhoun County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-3045.
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Indictment Charges 9 Individuals with Obtaining Oxycodone in Fraudulent Prescription SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that nine individuals have be charged by indictment with participating in a drug trafficking ring that obtained more than 80,000 oxycodone pills by way of fraudulent prescriptions.
“The diversion and trafficking of prescription narcotics is a serious threat to public health, and disrupting criminal organizations involved in this activity and prosecuting those involved is a priority of the U.S. Attorney’s Office,” said U.S. Attorney Daly. “I commend the DEA and all the members of the Tactical Diversion Squad for their efforts in this long-running investigation.”
“The DEA is committed to investigating and bringing to justice those who illicitly distribute oxycodone,” said DEA Special Agent in Charge Ferguson. “Opiate abuse is a major problem in Connecticut and throughout New England. The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Office to aggressively pursue any group that traffics these drugs.”
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
Since February 2013, the organization has stolen the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills.
On September 22, 2015, a federal grand jury in New Haven returned a six-count indictment charging the following individuals:
JULIAN CINTRON, a.k.a. “Papi” and Jay,” 36, of New Haven
DAVID THOMPSON, a.k.a. “Super Dave,” 41, of New Haven
ALEJANDRINO DeJESUS, a.k.a. “Baby Boo,” 37, of New Haven
ANGEL MATEO, a.k.a., “Chickyding,” 36, of New Haven
ROBERT WILLIAMS, a.k.a., “Bo,” “Positive” and “Shawn,” 35, of Meriden
LARISSA ARABOLOS, 25, of East Haven
MATTHEW GIGLIETTI, 35, of East Haven
CHRISTOPHER LEVIX, a.k.a. “Scarface,” 33 of New Haven
ANTHONY PALMIERI, a.k.a. “Ant” and “Turtle,” 38, of New HavenAs alleged in court documents, CINTRON and THOMPSON have been leaders of the conspiracy since 2013. CINTRON, THOMPSON and ARABOLOS manufactured fraudulent oxycodone prescriptions for the organization, and DeJESUS, MATEO, WILLIAMS, GIGLIETTI and LEVIX recruited and transported runners. PALMIERI transported runners, and also distributed oxycodone obtained by CINTRON and THOMPSON.
The indictment charges each of the defendants with one count of conspiracy to distribute and to possess with intent to distribute oxycodone, an offense the carries a maximum term of imprisonment of 20 years, and one count of conspiracy to acquire oxycodone by fraud and forgery, an offense that carries a maximum term of imprisonment of four years.
The indictment also charges THOMPSON with two counts of possession with intent to distribute and distribution of oxycodone, and DeJESUS with one count of possession with intent to distribute and distribution of heroin and cocaine, and one count of possession with intent to distribute and distribution of heroin. Each of these charges carries a maximum term of imprisonment of 20 years.
CINTRON, THOMPSON, WILLIAMS, ARABOLOS, GIGLIETTI, LEVIX and PALMIERI were arrested on federal criminal complaints on September 10, 2015, and DeJESUS was arrested on a federal criminal complaint on September 11, 2015. MATEO currently is in state custody.
The indictment also seeks the forfeiture of $10,207.39 that was seized from PALMIERI’s residence on September 10, 2015, and five vehicles owned by several of the defendants.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA Tactical Diversion Squad includes members from the Greenwich, Shelton, Hamden, Vernon, West Hartford, Bristol and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Health Care Plan Supervisor Submitted False Statements, Netted $184K in PaymentsRead the Press Release
PITTSBURGH – An Armstrong County resident pleaded guilty in federal court to charges of mail fraud and health care fraud, United States Attorney David J. Hickton announced today.
Francine Ann Priestas, 48, of Rural Valley, Pennsylvania, pleaded guilty to 11 counts before Senior United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that Priestas was employed as a supervisor in the UPMC Health Plan Claims Department. Priestas generated billing statements which falsely represented that she and others received medical services. She submitted 156 false statements on the UPMC system and received payments totaling $184,835.
Judge McVerry scheduled sentencing for Jan. 8, 2016 at 9:30 a.m. The law provides for a total sentence of 210 years in prison, a fine of $2,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Priestas on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Priestas.
Gretna Woman Indicted for Theft of Federal FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DANIELLE RANDALL, 42, of Gretna, was charged today in a four-count Indictment for theft of federal funds.
According to the Indictment, on or about August 29, 2012, Hurricane Isaac struck southeastern Louisiana. Shortly thereafter, the Federal Emergency Management Agency (“FEMA”) declared a major disaster in parts of southeastern Louisiana, including the Eastern District of Louisiana. To assist individuals in coping with damage to their personal property and primary residences, FEMA established an application process for temporary disaster assistance. The Indictment alleges that RANDALL submitted an application for Disaster Assistance for damage to her apartment and personal property. After she received an initial disbursement of approximately $3,000, RANDALL continued to apply for housing assistance while falsely representing her rental address and housing expenses. In total, RANDALL received four U.S. Treasury checks to which she was not entitled. RANDALL’s false submissions to FEMA allowed her to steal a total $10,951 in federal funds.
If convicted, RANDALL faces a maximum penalty of 10 years imprisonment, a maximum fine of $250,000 and a special assessment of $100, as to each of the four counts. She also faces mandatory restitution of at least $10,951.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this case. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Granite City Man Sentenced for Methamphetamine DistributionRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today that Antonio M. Avila, age 46, of Granite City, Illinois, was sentenced to 92 months imprisonment on September 24, 2015 for Possession With Intent to Distribute Methamphetamine
Avila had earlier pled guilty to the federal charge on May 14, 2015 in United States District Court in East St. Louis, Illinois.
At his change of plea hearing in May, the Government presented evidence that Avila was arrested in Madison, Illinois on June 1, 2013 in possession of 17 grams of methamphetamine and a digital scale. Avila admitted to arresting officers that he had been dealing ounce quantities of methamphetamine in and around Granite City for several weeks.
Avila has been continuously confined in federal custody since December 2014. Upon release from prison, Avila will be placed on supervised release for a term of 3 years.
The investigation which resulted in Avila’s arrest and conviction was conducted by the Madison, Illinois Police Department and by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Fugitive Who Operated San Fernando Valley Chiropractic Clinic Indicted on Federal Health Care Fraud and Identity Theft ChargesRead the Press Release
LOS ANGELES – A federal grand jury has named an Encino-based chiropractor in a 15-count indictment that accuses him defrauding health care programs by submitting more than $300,000 in fraudulent bills for office visits that never took place and for medical equipment that was never provided.
Yoav Stein, 39, who until about a year ago resided in Encino, was indicted yesterday in a scheme that allegedly defrauded several health care plans, including the National Railroad Passenger Corporation’s (Amtrak) health care plan.
According to the indictment, Stein participated in corporate health care fairs, where he induced employees to provide insurance information by offering Transcutaneous Electrical Nerve Stimulus units for no “out-of-pocket costs.” Armed with the employees’ insurance information, Stein allegedly submitted fraudulent claims to health care plans.
The indictment charges Stein with 13 counts of health care fraud and two counts of aggravated identity theft.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in a court.
Stein is currently a fugitive believed to be in Israel.
If he were to be convicted of the charges in the indictment, Stein would face up to 10 years in federal prison for each of the health care fraud counts, as well as a mandatory two-year consecutive sentence for aggravated identity theft.
This case is a product of an investigation by the Amtrak Office of Inspector General and United States Department of Labor, Employee Benefits Security Administration.
Forty-One Facing Drug Trafficking Charges as a Result of Multi-Agency Investigation in Chaves CountyRead the Press Release
ALBUQUERQUE – Forty-one individuals are facing drug trafficking charges as a result of an eight-month multi-agency investigation led by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office, the New Mexico State Police. Twenty-one of the defendants charged are facing federal charges and the remaining 20 are facing state charges.
The results of the investigation were announced by U.S. Attorney Damon P. Martinez, Fifth Judicial District Attorney Dianna Luce, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division, New Mexico State Police Chief Pete Kassetas, Chaves County Sheriff Britt Snyder and Roswell Police Chief Phil Smith.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Joseph Ray Mendiola, 34, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sixteen of the 21 defendants facing federal charges are charged in a 24-count indictment that was filed by a grand jury on Sept. 22, 2015. The remaining five federal defendants are charged in criminal complaints. Each of the 20 defendants facing state charges is charged by criminal complaint.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles. Five of the federal defendants, including alleged DTO leader Mendiola, were arrested on July 31, 2015, the date on which the officers executed the 14 federal search warrants.
U.S. Attorney Damon P. Martinez commended the investigating agencies on the outstanding results of their investigation and said, “The charges filed and drugs seized as a result of this investigation illustrate the success of our District’s federal, state, county and local law enforcement collaboration in rooting out drug traffickers operating in Chaves County and improving the quality of life for people who live there.”
“The months of collaboration of federal, state and local law enforcement agencies led to the arrest of numerous active drug traffickers in Chaves County,” said Fifth Judicial District Attorney Dianna Luce. “The District Attorney's Office expresses a special thank you to the agents of the New Mexico State Police for their work on this operation.”
“This operation demonstrates how a team of federal, state and local law enforcement agencies, working closely with the U.S. Attorney’s Office, can make a big difference in the communities we serve and protect. Dozens of special agents, state troopers, sheriff’s deputies, police officers, intelligence analysts and other professionals worked together to take some of the worst of the worst drug offenders off our streets,” said FBI Special Agent in Charge Carol K.O. Lee. “The FBI and our partners will continue to go after drug-traffickers and others who try to harm our communities, regardless of where these criminals hide or how long it takes.”
“Today’s law enforcement activity in the Roswell area once again makes it abundantly clear that DEA and our law enforcement partners will use all of our investigative tools and resources to keep our smaller communities safe from drug trafficking organizations,” said DEA Special Agent in Charge Will R. Glaspy. “Criminal activity that threatens the safety and well-being of our citizens will not be tolerated.”
“The citizens of New Mexico are safer today as the result of this cooperative effort between law enforcement agencies,” said New Mexico State Police Chief Pete Kassetas. “The cooperation was outstanding and I cannot express my gratitude enough to all the agencies involved. Together, we have made a difference in our state. This operation reinforces to those that choose to break the law, that they will suffer the consequences.”
“Teamwork with our federal, state and local partners is how we got to today,” said Chaves County Sheriff Britt Snyder. “I greatly appreciate that team effort.”
Roswell Police Chief Phil Smith said, "The investigation was a great collaborative effort between the Roswell Police Department and the FBI, successfully removing both drugs and their dealers/pushers from our Roswell community."
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. The state cases were investigated by the New Mexico State Police In addition to the aforementioned agencies, the Pecos Valley Drug Task Force and Lea County Drug Task Force participated in today’s law enforcement operation. Assistant U.S. Attorney Randy M. Castellano is prosecuting the federal cases, and the Fifth Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force.
Indictment in United States v. Mendiola, et al., 15-CR-3386-RB
Summary of the Charges
Count 1 of the Indictment charges 15 of the 16 defendants with conspiracy to distribute methamphetamine in Chaves County between June 2015 and July 2015. For 11 of the federal defendants, the statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life. For four defendants, the statutory penalty for a conviction on this count is not more than 20 years of imprisonment.
Count 2 charges three defendants with conspiracy to distribute cocaine in Chaves County in July 2015. The statutory penalty for a conviction on this count is not more than 20 years of imprisonment.
Count 3 charges certain defendants with possession of methamphetamine with intent to distribute in Chaves County on July 17, 2015. The statutory penalty for a conviction on this count is imprisonment for not less than five years and not more than 40 years.
Counts 4, 5, 6 and 7 charge certain defendants with possession of methamphetamine with intent to distribute in Chaves County in July 2015. The statutory penalty for a conviction on this count is imprisonment for not less than ten years or more than life.
Counts 8 through 24 charge certain defendants with using communications devices (telephone) to facilitate drug trafficking crimes. The statutory penalty for a conviction on each of these counts is imprisonment for not more than four years.
Charges Against Federal Defendants
- Joseph Ray Mendiola, 34, of Roswell, N.M., is charged in Counts 1, 2, 4, 5 and 10 to 24. Mendiola was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Francisco Fernando Aguilar-Larios, 34, a Mexican national who illegally resides in Phoenix, Ariz., is charged in Counts 1, 4, 5 and 18. Aguilar-Larios was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Rodney Boughton, 48, of Roswell, N.M., is charged in Counts 1, 6 and 9. Boughton was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- James H. Lewis, 50, of Roswell, N.M., is charged in Counts 1 and 6. Lewis was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Stephanie Leyba, 41, of Roswell, N.M., is charged in Counts 1 and 6. Leyba was arrested on July 31, 2015, on a criminal complaint and has been in federal custody since that time.
- Louis Escobar, 46, of Roswell, N.M., is charged in Counts 1 and 11. Escobar has yet to be arrested and is considered a fugitive.
- Sergio Ureta-Castro, 38, of Roswell, N.M., is charged in Counts 1, 7 and 14. Ureta-Castro has yet to be arrested and is considered a fugitive.
- Jonathan Ureta-Lopez, 19, of Roswell, N.M., is charged in Counts 1, 7, 10 and 14. Ureta-Lopez has yet to be arrested and is considered a fugitive.
- Gerald Sentell, 44, of Roswell, N.M., is charged in Counts 1, 3, 8 and 9. Sentell has yet to be arrested and is considered a fugitive.
- Susana Ceballos, 35, of Roswell, N.M., is charged in Counts 1, 4, 12, 13 and 16. Cebollos has yet to be arrested and is considered a fugitive.
- Ana Solis, 22, of Roswell, N.M., is charged in Counts 1, 4, 5, 17 and 23. Solis was arrested during this morning’s law enforcement operation and made her initial appearance earlier today in federal court in Roswell.
- Destiny Stephenson, 34, of Roswell, N.M., is charged in Counts 1 and3. Stephenson was arrested during this morning’s law enforcement operation and made her initial appearance earlier today in federal court in Roswell.
- Ty Livingston, 36, of Roswell, N.M., is charged in Counts 1, 22 and 24. Livingston has yet to be arrested and is considered a fugitive.
- Ismael Molina, 29, of Roswell, N.M., is charged in Counts 1, 2 and 15. Molina was rested during this morning’s law enforcement operation and made his initial appearance earlier today in federal court in Roswell.
- Cipriano Anaya, 33, of Las Cruces, N.M., is charged in Counts 1 and 21. Anaya was arrested during this morning’s law enforcement operation and made his initial appearance earlier today in federal court in Roswell.
- Christopher Bernard Larez, 41, of Roswell, N.M., is charged in Counts 1, 2, 19 and 20. Larez has yet to be arrested and is considered a fugitive.
Federal Defendants Charged by Criminal Complaint
The following defendants were arrested during today’s law enforcement operation on federal criminal complaints and made their initial appearances in federal court in Roswell:
- Mia Coy Campbell, 32, of Carlsbad, N.M., is charged by criminal complaint 15-MJ-3315 with being a felon in possession of a firearm. If convicted, Campbell faces a statutory maximum penalty of ten years in prison.
- James Hill, 33, of Roswell, N.M., is charged by criminal complaint with possession of methamphetamine with intent to distribute. If convicted, Hill faces a statutory penalty of not less than five years and not more than 40 years of imprisonment.
- Jason Martinez, 27, of Roswell, N.M., is charged in criminal complaint 15-MJ-3319 with conspiracy and possession of methamphetamine with intent to distribute. If convicted, each faces a statutory penalty of not less than five years and not more than 40 years of imprisonment. His co-defendant Joseph Vallejos, 23, of Roswell, N.M., has yet to be arrested and is considered a fugitive.
- Renee Rodriguez, 31, of Roswell, N.M., is charged in criminal complaint 15-MJ-3314 with conspiracy, possession of methamphetamine with intent to distribute, and using and carrying a firearm in relation to a drug trafficking crime. If convicted, she faces a statutory penalty of not less than five years and not more than 40 years of imprisonment on the drug charges and a minimum five years of imprisonment on the firearms charge that must be served consecutive to the sentence imposed on the drug charges. As noted above, co-defendant Joseph Vallejos is a fugitive.
Photographs of the following federal fugitives are attached to this press release: Susana Ceballos, Christopher Larez, Ty Livingston, Gerald Sentell and Joseph Vallejos. Anyone with information on the whereabouts of this/these fugitive(s) is asked to contact the Albuquerque FBI (24 hours) at (505) 889-1300. Tips also can be submitted online at https://tips.fbi.gov.
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
State Defendants Charged by Criminal Complaint
The following defendants were arrested today on state drug trafficking charges:
- Michael Albarez, 33 of Roswell, N.M.
- Raymond Amador, 22, of Roswell, N.M.
- Frederick Bersane, 36, of Roswell, N.M.
- Aaron Brockman, 27, of Roswell, N.M.
- Ann Escamilla Cobos, 41 of Roswell, N.M.
- Lorenzo Cobos, 41, of Roswell, N.M.
- James Dennis, 25, of Roswell, N.M.
- Jose Dimas, 27, of Roswell, N.M.
- Jerry Garcia, 37, of Roswell, N.M.
- Andres Granado, 27, of Roswell, N.M.
- Angelo Hidalgo, 22, of Roswell, N.M.
- Annette Lucero, 44, of Roswell, N.M.
- Jason Lucero, 37, of Artesia, N.M.
- Larissa Madril, 23, of Roswell, N.M.
- Domenic Montes, 25, of Roswell, N.M.
- Danielle Paslay, 24, of Roswell, N.M.
- Armando Primera, 46, of Dexter, N.M.
- Alexander Roberson, 24, of Roswell, N.M.
- Brandon Dean Shelton, 44, of Roswell, N.M.
- Jose Trujillo, 25, of Albuquerque, N.M.
Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Former U.S. Army Physician Sentenced to Federal Prison for his Role in an Estimated $7.3 Million Health Care Fraud SchemeRead the Press Release
In El Paso today, former William Beaumont Army Medical Center (WBAMC) physician and Army Lt. Col. Richard Craig Rooney of Medina, WA, age 46, was sentenced to 30 months in federal prison for his role in an estimated $7.3 million Health Care fraud scheme announced United States Attorney Richard L. Durbin, Jr.; Janice M. Flores, Special Agent in Charge of the Defense Criminal Investigative Service’s Southwest Field Office, Arlington, TX; Special Agent in Charge Scott Wilk of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, Arlington, TX; and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Rooney pay a $15,000 fine and be placed on supervised release for a period of three years after completing his prison term.
The Government is also seeking the forfeiture of approximately $4.27 million seized from financial institutions. The Government has already forfeited a residential real estate property located in the State of Washington. A hearing to determine restitution is scheduled for December 1, 2015, before Judge Briones.
On January 9, 2015, Rooney pleaded guilty to aiding and abetting Acts Affecting a Personal Financial Interest. By pleading guilty, Rooney admitted that, beginning in 2005 and continuing through June 2010, he was employed by two medical device development and sales companies, Altiva Corporation (“Altiva”) and Allure Spine Consulting, LLC (“Allure”), as a consultant regarding the efficacy of existing medical devices and the design development and marketing of prospective medical devices. During the time Rooney was receiving money from both Altiva and Allure, he was also recommending that Darnall Army Medical Center at Ft. Hood, TX (DAMC) and WBAMC purchase Altiva and Allure products for his use in surgical procedures at the two hospitals. At the time Rooney was making the decisions to use Altiva and Allure products and was recommending the two military hospitals contract with Altiva and Allure to purchase said products, Rooney had an undisclosed financial interest in Altiva and Allure products.
This investigation was conducted by agents with the Defense Criminal Investigative Service (DCIS); agents of the Criminal Investigation Command Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command; and agents of the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Debra Kanof and Anna Arreola are prosecuting this case on behalf of the Government.
Former North Texas Pharmacist Charged with Federal Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – A 29-year-old Granbury, Texas man has been charged with federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
John Christopher Esparza was indicted by a federal grand jury on Sep. 10, 2015 and charged with conspiracy to distribute and possession with intent to distribute oxycodone. Esparza appeared before U.S. Magistrate Judge Don D. Bush on Sep. 24, 205, and was ordered to be detained until trial.
According to information presented in court, from November 2012 to September 2015, Esparza was the pharmacist in charge of Trinity Pharmacy on Rosemeade Parkway in Carrollton, Texas. During this time he is alleged to have illegally sold large quantities of oxycodone to an informant. During the investigation it was revealed that a review of the pharmacy’s inventory records suggests that a large amount of oxycodone with a street value of approximately $2.9 million was unaccounted for.
If convicted, Esparza faces up to 20 years in federal prison. A trial date has not been set.
This case was investigated by the Drug Enforcement Administration – Dallas Field Division Tactical Diversion Squad, the Texas Department of Public Safety, the Texas Board of Pharmacy, and the McKinney Police Department. This case is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
It is important to note that a grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former German Soldier Sentenced in Manhattan Federal Court to 20 Years in Prison for Conspiring to Murder A DEA Agent and Conspiring to Import CocaineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DENNIS GOGEL, a former member of the German Army and a trained sniper, was sentenced to 20 years in prison for his participation in a conspiracy to murder a Drug Enforcement Administration (“DEA”) agent and a confidential informant working at the direction of the DEA, a conspiracy to import cocaine into the United States, a conspiracy to possess a firearm in furtherance of the murder conspiracy, and a conspiracy to import cocaine on board an aircraft registered in the United States. GOGEL was arrested in September 2013 along with co-defendants Joseph Hunter, Timothy Vamvakias, Slawomir Soborski, and Michael Filter following a long-term DEA undercover investigation. Each defendant pled guilty before U.S. District Judge Laura Taylor Swain, who imposed yesterday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Dennis Gogel used his elite German military training to support a network of underground criminals who were prepared and willing to kill a DEA agent and informant, and import 300 kilograms of cocaine to New York. Thanks to the efforts of the DEA and coordination with law enforcement partners from around the world, Gogel and his co-conspirators are now safely behind bars.”
According to the Indictment filed against GOGEL, Hunter, Vamvakias, Soborski, and Filter, as well as sentencing proceedings and other filings in Manhattan federal court:All five defendants have previously served in the armed forces of their respective nations. GOGEL served in the German armed forces until 2010; Hunter served in the U.S. Army between approximately 1983 and 2004; Vamvakias served in the U.S. Army between approximately 1991 and 2004; Filter served in the German armed forces until 2009; and Soborski served in the Polish armed forces until 2011. GOGEL attained the rank of corporal and served as a sniper from 2007 to 2010. Hunter served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics; and Soborski and Filter were also trained as snipers.
In 2013, GOGEL was recruited by Hunter to serve as security for a Colombian drug trafficking organization and to perform contract killings. Hunter recruited GOGEL based on his military training and experience in the private security industry. During meetings in Asia, Africa, and the Caribbean, beginning in January 2013 and continuing through late September 2013, Hunter communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. Hunter agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of GOGEL, Vamvakias, Filter, and Soborski. Hunter also told the CSs that he had previously been involved in contract killings – referred to as “bonus jobs” – and that some team members wanted to do as much “bonus work” as possible.
Hunter and his co-defendants thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. Furthermore, GOGEL, Vamvakias, and Hunter agreed to commit murder-for-hire in Liberia by assassinating both a DEA Special Agent and a person who, according to the CSs, was providing information to the DEA about the CSs’ narcotics trafficking organization. In exchange for the murders, GOGEL and Vamvakias were together to be paid approximately $700,000, and Hunter was to receive an additional $100,000 for his leadership role. Communications between the defendants and the CSs occurred by telephone, over email, and in a series of surreptitiously audio-recorded and videotaped meetings over an approximately nine-month period.
In March 2013, GOGEL, Filter, and Soborski conducted counter-surveillance of a boat in Thailand that the CSs had represented would be used to transport narcotics, seeking to detect law enforcement monitoring of the vessel.
In April 2013, GOGEL acted as team leader as he, Filter, and Soborski provided security for meetings in Mauritius between the CSs and representatives of a bona fide international drug trafficking organization. The security team also performed counter-surveillance of additional individuals that the CSs met with to discuss international weapons dealers.
In late June 2013, GOGEL, Vamvakias, Filter, and Soborski conducted surveillance of a purported U.S.-registered aircraft at the direction of the third CS (“CS-3”), who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York.
With respect to the murder-for-hire scheme, in mid-May 2013, at a meeting with the CSs in Thailand, GOGEL, Vamvakias, Hunter, and Soborski were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in email communications, Hunter confirmed that his team would be willing to murder both a U.S. law enforcement agent and an informant (a boat captain) who was providing information to U.S. law enforcement authorities. Hunter confirmed by email that his team would kill both the DEA agent and the informant who was providing information to law enforcement about the CSs’ narcotics trafficking organization. At a meeting in late June 2013, CS-3 explained to GOGEL and Vamvakias that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. GOGEL and Vamvakias discussed the weapons that could be used and masks to be worn for the murders, and Vamvakias stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, Hunter sent via email a list of the items needed for the murders, including “[t]wo submachine guns with silencers . . . [t]wo .22 pistols with silencers.”
In mid-August 2013, at a meeting in Thailand, GOGEL, Vamvakias, and Hunter discussed in detail the weapons that would be used and the possibility of entering Liberia without having their passports stamped. They suggested that CS-3 fly them out of the country via private plane following the murders. Vamvakias stated that among other weapons, a sub-machine gun and two .22 caliber pistols would be needed for the murders, and CS-3 agreed to deliver the weapons to Liberia. The next day, at a meeting with GOGEL, CS-3 confirmed that an order for the requested weapons had been made. Later that same day, GOGEL met again with CS-3 and provided CS-3 with two highly sophisticated latex facemasks, which can make the wearer appear to be of another race, for CS-3 to transport to Liberia. Discussing his work with the purported drug cartel, GOGEL told the CS that, “That’s fun. It is for me. I love that, I love this work.”
In late September 2013, GOGEL and Vamvakias arrived in Liberia to commit the planned murders-for-hire.
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GOGEL, 30, pled guilty on January 13, 2015, to conspiracy to import cocaine into the United States (Count One); conspiracy to murder a federal law enforcement agent and a person assisting a federal law enforcement agent (Count Two); conspiracy to possess a firearm in furtherance of a crime of violence (Count Four); and conspiracy to distribute cocaine on board an aircraft registered in the United States (Count Five). In addition to the 20-year prison term, GOGEL was sentenced to five years of supervised release.
The remaining defendants, Hunter, 50, Vamvakias, 43, Soborski, 43, and Filter, 30, each pled guilty to conspiracy to import cocaine into the United States (Count One). Hunter and Vamvakias also pled guilty to conspiracy to murder a law enforcement agent and a person assisting a law enforcement agent (Count Two); and conspiracy to possess a firearm in furtherance of a crime of violence (Count Four). Each count carries a maximum possible term of life in prison; Count One carries a mandatory minimum term of 10 years in prison. The maximum potential sentences faced by these remaining defendants are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants will be determined by the judge.
Vamvakias was sentenced on July 16, 2015, to 20 years in prison by Judge Swain. Filter was sentenced on September 9, 2015, to eight years in prison by Judge Swain. Hunter is scheduled to be sentenced on October 13, 2015, and Soborski is scheduled to be sentenced on October 22, 2015.
The prosecution was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration; the Royal Thai Attorney General’s Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General’s Office; the Estonian Police and Border Guard; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutors Office; the Royal Bahamas Police Force and Drug Enforcement Unit; the Romanian National Police; Interpol; and the U.S. Department of Justice Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Anna Skotko, Emil Bove, and Aimee Hector are in charge of the prosecution.
Former Correctional Officer Sentenced to over 6 Years in Prison in Baltimore Jail Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced former correctional officer Travis Paylor, age 27, of Baltimore, today to 76 months in prison, followed by three years of supervised release, for participating in a racketeering conspiracy and drug conspiracy, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC). Paylor was convicted on February 5, 2015, after a more than two month long jury trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services (DPSCS); Interim Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
“Travis Paylor received the longest sentence of any correctional officer in the case, which is appropriate because he continued to engage in illegal activity even after he was convicted in this case,” said U.S. Attorney Rod J. Rosenstein.
“We commend our task force partners for yet another successful prosecution in the wide-ranging corruption cases that plagued the now closed Baltimore City Detention Center. This sentence once again emphasizes we will not tolerate corruption within our correctional system and those found to be engaged in such criminal activity will be prosecuted to the fullest extent of the law,” said Secretary Stephen T. Moyer.
According to trial testimony and court documents, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, including the Baltimore Central Booking Intake Center, the Women’s Detention Center, which houses many men, and in the Jail Industries Building. Tavon White and other BGF leaders and members incarcerated at BCDC were involved with and often directed the smuggling of contraband into BCDC, including cell phones, tobacco and drugs, through the services of correctional officers (COs), who received payments, gifts, or a share of the profits.
According to evidence presented at trial, Paylor was a correctional officer (CO) at the BCDC who smuggled contraband into the jail for distribution by BGF inmates. In return, Paylor and other COs received payments, gifts or a share of the profits.
According to trial evidence and other court documents, Paylor was an important source of supply of Percocet pills for BGF leader Tavon White, who bought Percocet pills from Paylor once or twice a week. Paylor worked with other correctional officers to sell contraband to White, as well as to other inmates. Paylor charged various rates, depending on the amount of items purchased. For example, Paylor charged $300 just to bring in 50 Percocet pills provided by the inmate’s outside source of supply. From 2009 through 2010, when Paylor was moved to the Baltimore Central Booking and Intake Center (BCBIC), Tavon White paid Paylor approximately $10,000 for drugs. Paylor continued selling contraband to inmates after he was moved to BCBIC.
This case was developed as a result of the efforts of the Maryland Prison Task Force, formed in 2011 with the Maryland Department of Public Safety and Correctional Services, local, state and federal law enforcement agencies, and prosecutors. The Task Force has met regularly for over three years, generating recommendations to reform prison procedures and producing leads that have been pursued by state, local and federal criminal investigators. Investigations are continuing.
Forty of the 44 defendants charged in the racketeering conspiracy have been convicted, including 24 correctional officers. Thirty-five defendants pleaded guilty and five defendants were convicted after trial. Three defendants were acquitted and one defendant died.
To date, 23 of the correctional officers, including Paylor, have been sentenced to up to 76 months in prison.
BGF leader Tavon White, age 37, pleaded guilty to his participation in the racketeering conspiracy and testified at the trial and was sentenced to 12 years in prison. Inmates and leaders in the BGF gang, Russell Carrington, a/k/ Rutt, age 34, and Joseph Young, a/k/a Monster, age 33, both of Baltimore, were convicted after trial and sentenced to 210 months in prison and 15 years in prison, respectively. Former correctional officer Ashley Newton, age 31, of Baltimore, was sentenced to 51 months in prison, after being convicted after trial of participating in racketeering, drug, and money laundering conspiracies, involving the smuggling of drugs and contraband inside the Baltimore City Detention Center (BCDC).
U.S. Attorney Rosenstein recognized the efforts of the other members of the Maryland Prison Task Force, including: the Maryland State Police, Prince George’s County Police Department, United States Marshals Office, DEA, Washington-Baltimore High Intensity Drug Trafficking Area and Maryland Coordination and Analysis Center.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, and Maryland Prison Task Force, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Former Business Owner and Son Sentenced for Arson and Insurance FraudRead the Press Release
ALEXANDRIA, Va. – Lawrence Wayne Reese, 56, and his son, Lance Terrell Reese, 28, both from Fort Belvoir, were sentenced today for their roles in burning down the Sub Shop, a business Lawrence Reese owned in Lorton.
Lawrence Reese was sentenced to 15 years in prison, five years of supervised release, and ordered to pay $34,000 in restitution. Lance Reese was sentenced to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.
Lawrence and Lance Reese were convicted at trial on June 19, 2015, for their respective roles in the Feb. 6, 2013, arson of the Sub Shop. Lawrence Reese owned and operated the business. Through over 500 hours of financial analysis performed by an ATF Senior Forensic Auditor, the United States proved at trial that the business was financially insolvent. Specifically, Lawrence Reese’s business reported losses of approximately $60,000 on its 2012 U.S. income tax return. Due to financial strain, Lawrence Reese recruited his son and Horace Thompson to burn down the Sub Shop. Thompson was convicted of arson at trial on Oct. 3, 2013, and was sentenced on Dec. 19, 2013, to five years in prison, two years of supervised release, and ordered to pay $34,000 in restitution.
The evidence presented at trial established that Lawrence Reese and Thompson, through the use of the accelerant gasoline, caused an explosion followed by a fire at the Sub Shop. The fire destroyed the business and left Lawrence Reese and Thompson badly burned. Following the fire, Lawrence Reese submitted a claim for approximately $200,000 to his insurance company. His submission of this claim, for an intentionally set fire, resulted in his commission of multiple counts of mail and wire fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
This case was investigated by the Fairfax County Police Department’s Homicide Unit and the Arson Group in ATF’s Washington Field Division, with special assistance from ATF’s Financial Investigative Services Division. Assistant U.S. Attorneys Michael Rich and Zachary Terwilliger prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-32.
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Former Air National Guard Contract Employee Sentenced to Probation for FraudRead the Press Release
PITTSBURGH - A resident of Maryland has been sentenced in federal court to two years of probation, six months of home detention and community service on his conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Robert St. Clair, 51, of Bel Air, Maryland.
According to the information presented to the court, between 2002 and 2011, St. Clair, a contract employee at the National Guard Bureau at Andrews Air Force Base, conspired with another person at the 171st Air Refueling Wing in Coraopolis, Pennsylvania, to defraud the United States by accepting a “no show” enlistment position as a “contracting specialist’ at the 171st, in exchange for St Clair providing military work days to the conspirator, a former commander at the 171st ARW.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Air Force Office of Special Investigations and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Robert St. Clair.
Federal Authorities Arrest Three El Paso Family Members on Federal Charges in Connection with Murder-For-Hire PlotRead the Press Release
In El Paso, two brothers and a sister are in custody based on a federal grand jury indictment alleging a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
The federal indictment, returned on Tuesday and unsealed today, charges El Paso residents Dalia Valencia, age 43, Samuel Velasco Gurrola, age 40, and Emmanuel Velasco Gurrola, age 29, with three counts of conspiracy to commit murder and three counts of conspiracy to cause foreign travel for murder for hire.
According to published reports, on October 3, 2008, Francisco Maria Sagredo Villareal was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo was ambushed and murdered.
According to the indictment, in September 2008, the defendants conspired to have the above mentioned people murdered. The indictment further alleges that from September 2008 until November 22, 2008, the defendants conspired to pay someone to travel from the United States into Mexico to carry out their murder plot or caused someone to travel into Mexico, intending that a murder be committed, and that money was exchanged as part of the conspiracy.
Upon conviction of the murder related charges, the defendants face up to life in federal prison.
Federal agents arrested Dalia Valencia and Samuel Velasco yesterday without incident. Emmanuel Velasco was already in custody on a separate federal indictment which charges Emmanuel, Samuel and others with various offenses, including drug and money laundering charges.
This indictment resulted from an investigation conducted by the Drug Enforcement Administration, Homeland Security Investigations and the Federal Bureau of Investigation. Assistant United States Attorney Daphne Newaz is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
District Man Sentenced to 26 Months in Prison for Assaulting Deputy U.S. MarshalRead the Press Release
WASHINGTON - Jared Thompson, 46, of Washington, D.C., was sentenced today to 26 months in prison for forcibly assaulting a Deputy United States Marshal during an incident at a courthouse earlier this year, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Thompson was found guilty on July 23, 2015, following a trial in the U.S. District Court for the District of Columbia, of assaulting, resisting or impeding a federal law enforcement officer. He was sentenced by the Honorable Senior Judge Gladys Kessler. Upon completion of his prison term, Thompson will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 8, 2015, Thompson was ordered by a Superior Court judge to be detained in a previous and unrelated criminal case; he was not in custody at this time. Thompson then was taken into custody by a Deputy U.S. Marshal. The deputy marshal escorted Thompson to the cellblock hall area at Superior Court and attempted to search and pat down the defendant’s clothing for possible contraband.
During this initial search, the deputy marshal found a pipe and a small container containing a green weed substance which was consistent with marijuana. While the search continued, Thompson asked the deputy marshal, “Did you find my weed yet?” The deputy marshal searched inside Thompson’s pants area, and then instructed Thompson to pull up his pants. Thompson refused, cursed, and stated, “You pulled them down, you pull them up.” He then began turning toward the deputy marshal in a threatening manner.
Thompson then balled his hand into a fist, tensed his arm, and began to turn to stand face-to-face with the deputy marshal. The deputy marshal attempted to re-apply the handcuffs on Thompson to gain control of the defendant and for the safety of the court, staff, and all others in the cellblock. Thompson cursed, kicked his feet towards the deputies, and bit the deputy marshal’s forearm. The bite broke the deputy marshal’s skin, caused his forearm to bleed, and caused great pain. Because of his injury and the possibility of infection, the deputy marshal was taken to a hospital for treatment of his injury.
In announcing the sentence, Acting U.S. Attorney Cohen and Marshal Hughes commended the actions of the U.S. Marshals Service. They also commended those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz, Candace Battle, and Teesha Tobias. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
District Man Sentenced to 21 Years in Prison for Sexually Assaulting Woman in Northwest Washington AlleyRead the Press Release
WASHINGTON – George Cocroft, 38, of Washington, D.C., was sentenced today to 21 years in prison for sexually assaulting a woman in an alley in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Cocroft, a prior sex offender, was found guilty in March 2015 of first-degree sexual abuse, with aggravating circumstances. The verdict, in the Superior Court of the District of Columbia, followed a bench trial before the Honorable Robert E. Morin. Judge Morin ordered that Cocroft be placed on five years of supervised release following the prison term. Cocroft also will be required to register as a sex offender for the remainder of his life.
According to the government’s evidence, on Nov. 25, 2012, the victim, then 19, traveled alone by Metro into the District of Columbia. She has an intellectual disability and autism. At approximately 7 p.m., she went into a fast-food restaurant in the Chinatown neighborhood. Once inside, she encountered the defendant, a homeless man, who sat down with her and began complimenting her and holding her hand.
Cocroft and the victim left the restaurant together, at which time the defendant led the victim into a dark alley. The victim initially believed the defendant’s house was in the alley and that they were going to talk so that they could get to know each other better.
Once in the alley, Cocroft began groping the victim and telling her he had not had sex in a long time. The victim was scared and told Cocroft that she did not want to have sex. She said that they should wait until they were older and married. Cocroft did not stop, however. He led her to a more secluded part of the alley and had her lie face down on concrete barriers. Despite her continued protests, he sexually assaulted her. After the assault, the victim reported what had happened to her to a Metro station manager. Cocroft was subsequently arrested pursuant to an arrest warrant and has been in custody ever since.
In announcing the sentence, Acting U.S. Attorney Cohen praised the work performed by those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the critical services provided to the victim at the District of Columbia Children’s Advocacy Center. In addition, he expressed appreciation for the work of those who handled the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan; Paralegal Supervisor Jason Manuel; Paralegal Specialist Tierra Nanches; Information Technology Specialist Michael Richards; Victim/Witness Security Specialists David Foster and La June Thames; and former Assistant U.S. Attorney Heide Herrmann.
Finally, he commended the work of Assistant U.S. Attorneys Amy Zubrensky and Jeff T. Cook, who investigated and prosecuted the matter.
District Court Enters Permanent Injunction against Miami Dietary Supplement Manufacturer and its Two Owners to Stop Distribution of Adulterated ProductsRead the Press Release
The U.S. District Court for the Southern District of Florida entered a consent decree of permanent injunction against Miami-based Sunset Natural Products Inc. and the firm’s co-owners, Teresa Martinez and Elsy Cruz, to prevent the distribution of adulterated dietary supplements, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Southern District of Florida at the request of the U.S. Food and Drug Administration (FDA), alleging that the defendants violated the law by manufacturing and distributing dietary supplements that were deemed to be adulterated. Under the law, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition.
According to the complaint, several FDA inspections between 2012 and 2014 allegedly revealed that Sunset failed to conduct at least one appropriate test or examination to verify the identity of every dietary ingredient before using the ingredient, and that the firm failed to establish product specifications for the identity, purity, strength and composition of finished batches of dietary supplements. The defendants allegedly failed to use equipment and utensils of appropriate design, construction and workmanship to enable them to be adequately cleaned and properly maintained.
The firm and its owners agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing further violations of the federal Food, Drug and Cosmetic Act. The consent decree requires Sunset to cease all operations and requires that if the defendants seek to resume manufacturing and distributing dietary supplements, the FDA first must determine that the firm’s manufacturing practices have come into compliance with the law. The consent decree also requires the defendants to recall all dietary supplements that the defendants manufactured, prepared, processed, packed, labeled, held and/or distributed at any time since April 2014. The defendants are then required to destroy all dietary supplements in their possession, custody and/or control.
“Manufacturers of dietary supplements who do not follow the appropriate federal regulations put the public at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to protect consumers from adulterated products.”
On March 19, 2013, the FDA issued a warning letter to Martinez, detailing numerous violations of current Good Manufacturing Practice (cGMP) regulations the FDA observed during the 2012 inspection. According to the complaint, all of the cGMP violations described in the warning letter were the same as, or similar to, the violations the FDA observed during the April 2014 and September 2014 inspections. As noted in the complaint, the warning letter stated that it was the defendants’ responsibility to ensure compliance with the law and cautioned that failure to take prompt action to correct the deviations, and prevent their recurrence, may result in legal action.
According to the complaint, Martinez responded to the 2013 warning letter with promises to correct the cGMP violations. However, according to the allegations, the defendants either did not follow through on their promises to correct and/or failed to fully correct these violations, as shown by the FDA investigators’ observation and documentation of ongoing, significant cGMP deficiencies during the subsequent inspections in 2014.
The government is represented by Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch, with the assistance from Senior Counsel Michele Svonkin of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
Dickson Resident Found Guilty of Being in the U.S. Illegally Possessing FirearmsRead the Press Release
Hector Palma Zapien, 43, of Dickson, Tennessee, was found guilty today by a federal jury of illegally re-entering the United States after being deported and of being an illegal alien in possession of firearms, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. After a three-day trial, the jury returned guilty verdicts on both counts against Mr. Zapien.
According to the proof at trial, Zapien was removed from the United States in 2001 after being found here illegally. Zapien was again found to be in the U.S. illegally in February 2014. When federal agents searched his home pursuant to a federal search warrant, agents found 6 firearms, including rifles, shotguns and pistols, along with ammunition, and over $180,000 in cash. Proof and at trial also showed that during the past several years, Zapien had made numerous attempts to enter the U.S. with false identification documents.
Zapien faces a maximum penalty of 20 years in prison and a $250,000 fine on the conviction for illegal reentering the United States. He faces a maximum penalty of 10 years in prison and a $250,000 fine on the conviction for being an illegal alien unlawfully possessing firearms. Sentencing will be scheduled at a later date.
A co-defendant charged with unlawfully possessing firearms was acquitted at the trial.
This case was investigated by the Department of Homeland Security, the IRS-Criminal Investigation and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys Thomas J. Jaworski and Sandra G. Moses prosecuted the case.
DOJ Human Trafficking Grant for $1.5 Million Awarded to the Eastern District of LouisianaRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that, as part of more than $44 million in grant funding to combat human trafficking, the Justice Department awarded $1.5 million to the Eastern District of Louisiana to support law enforcement efforts and victim services for the next three years.
The list of this year’s grantees include:
Covenant House New Orleans $900,000
Jefferson Parish Sheriff’s Office $600,000
“Human traffickers prey on some of the most vulnerable members of our society, and their crimes – which are nothing short of modern-day slavery – have no place in this country,” said Attorney General Lynch. “These grants – administered by the Office of Justice Programs’ Bureau of Justice Assistance (BJA), the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime (OVC) and the National Institute of Justice – will fund efforts across the country to fight human trafficking, to provide services for survivors and to expand research going forward.”
“These grant awards will help continue our District’s fight against human trafficking,” stated U.S. Attorney Polite. “I congratulate Jim Kelly and Sheriff Newell Normand for their work in this area. They are among a group of community leaders who are dedicated to eliminating modern-day slavery here in Southeast Louisiana.”
The grants are part of a government-wide effort to combat human trafficking and provide services to survivors, as outlined in Coordination, Collaboration, Capacity: Federal Strategic Action Plan on Services for Victims of Human Trafficking in the United States, 2013–2017, released by the White House in January 2014.
DEA to Hold 10th National Prescription Drug Take-Back Day This SaturdayRead the Press Release
September 22 - (Washington, D.C.) – This Saturday from 10 a.m. to 2 p.m. local time, come to one of the almost 5,000 collection sites around the nation to return all unwanted, unneeded, or expired prescription drugs for safe and anonymous disposal. This is the U.S. Drug Enforcement Administration’s (DEA’s) 10th National Prescription Drug Take-Back Day in the past five years. Collection sites in every local community, manned by DEA and its local law enforcement and community partners, can be found by going to www.dea.gov or calling 800-882-9539. All states and some territories will be participating Saturday (with the exception of Pennsylvania and Delaware, which held their events earlier in the month).
The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards.
“Our goal is to reduce the risk of addiction and the 46,000 overdose deaths a year that come with prescription drug abuse. Take Back Day is a great opportunity for folks to help reduce the threat,” Rosenberg said. "Please clean out your medicine cabinet and make your home safe from drug theft and abuse.”
DEA’s previous nine nationwide Take-Back events collected 4,823,251 pounds—more than 2,411 tons—of drugs.
DEA 10th National Drug Take Back Day, Saturday 26Read the Press Release
Contact Person: Chuvalo Truesdell (404) 893-7124
Event will take place from 10am to 2pm on Saturday, September 26.
Columbia, SC - The Drug Enforcement Administration’s (DEA) South Carolina District Office is partnering with national, state, local, and tribal law enforcement officials, as well as community coalition groups, to hold its 10th state-wide Prescription Drug Take-Back Day on Saturday, September 26, 2015 from 10 a.m. to 2 p.m. local time. This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, South Carolinians will be able to drop off their expired, unused, and unwanted pills at sites across the state free of charge, no questions asked. By doing so, they will help prevent prescription drug abuse and theft. South Carolinians participating in DEA’s last take-back, held on September 27, 2014, yielded 4,776 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. Collection can be found by going to www.dea.gov or calling 800-882-9539.
The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.
Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards.
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “DEA is committed to making our communities safer by raising public awareness about the dangers of prescription drug abuse. The Prescription Drug Take-Back program will allow Americans to properly and safely dispose of their prescription medication which could otherwise be abused for non-medical purposes. This event is free and anonymous. Simply turn in your unused, unwanted, unneeded medication, no questions asked. This is just one of example of how DEA is working hand-in-hand with its law enforcement and community partners in an effort to stem the tide of prescription drug abuse.”
The DEA encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
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Clearwater Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Sylvester Banks (56, Clearwater) to two years and three months in federal prison for his role in a conspiracy to commit stolen identity refund fraud. He was ordered to pay restitution to the Internal Revenue Service in the amount of $755,900.00. The Court also entered a money judgment in the same amount.
Banks pleaded guilty on June 18, 2015.
According to court documents, between April 2011 and March 2013, Banks received and deposited into his bank account approximately $755,900 in U.S. Treasury and other checks, which were all made payable to persons other than himself. Those checks were income tax refund checks that were the result of numerous false and fraudulently filed income tax returns. During an interview with federal agents in February 2015, Banks acknowledged that he had realized that the checks were fraudulent income tax refund proceeds, and that it was unlawful for him to have received and deposited them into his own account.
This case was investigated by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Certified Public Accountant Pleads Guilty to Using Her Tax Preparation Business to Facilitate an Income Tax Refund Fraud SchemeRead the Press Release
A Certified Public Account (CPA) pled guilty today to using her tax preparation business to facilitate an income tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Pamella B. Watson, 60, of Davie, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. At sentencing, the defendant faces a maximum statutory sentence of twenty years in prison.
According to court documents, Watson operated Watson & Associates Business Services, Inc., a tax preparation business in Miami. Defendant Watson prepared the client’s tax return and provided them a copy showing a refund amount and/or an amount payable to the IRS. Without the client’s knowledge or authorization, the figures on the return were changed, and a tax return showing a higher refund amount was filed with the IRS. The client’s bank account received the refund amount reflected on the copy they received from defendant Watson, and the remainder of the tax refund was deposited into an account controlled by Watson. The client did not have any knowledge of the refund falsification and splitting.
Court documents state that Watson prepared approximately 557 U.S. Individual Income Tax Returns (Forms 1040) for tax years 2010 through 2013 for her clients. Approximately 395 (71%) had refunds split into an account controlled by defendant Watson, or the entire refund diverted into Watson’s bank account. From approximately January 2011 through September 2014, defendant Watson deposited $3,405,479.20 of client tax refunds from 183 individual taxpayers into accounts she controlled.
According to court documents, Watson also diverted checks totaling $222,676 into her personal IRS account, and an additional $56,766 in IRS payments from Watson’s clients was applied to an associate’s tax account. These checks were generated by clients who were informed by defendant Watson that they were paying their own tax liability.
Watson is scheduled to be sentenced on December 4, 2015 at 9:00 a.m. before Judge James I. Cohn.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Senior Litigation Counsel Neil Karadbil.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Butler County Couple Pleads Guilty in Identity Theft Scheme Perpetrated at Walmart StoresRead the Press Release
PITTSBURGH – A Butler County couple has pleaded guilty in federal court to charges of conspiracy, and aggravated identity theft, United States Attorney David J. Hickton announced today.
Robert W. MacVittie, 35, and Jennifer MacVittie, aka Jennifer Dinwiddie, 32, formerly of Cranberry, Twp., each pleaded guilty to two counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, beginning around October 2013, through May, 2014, the MacVitties’ used cell phone cameras to “shoulder surf” Social Security numbers from Walmart customers nationwide by taking cell phone video images of the customers who were cashing checks at the customer service counters. The stolen information was later used by the MacVittie’s to negotiate counterfeit checks at Walmart stores throughout the U.S., including Pennsylvania, West Virginia, Florida, Texas, Mississippi, Alabama, Kansas and other states. The MacVittie’s were arrested at a casino by law enforcement in Nevada on Nov. 29, 2014.
Judge Conti scheduled the sentencing for Jennifer MacVittie on Jan. 8, 2016, at 11 a.m. and Robert MacVittie on Jan. 15, 2016, at 10 a.m. The law provides for a maximum total sentence of not more than seven years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment of the MacVitties. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Atlanta Doctor Indicted for Tax EvasionRead the Press Release
ATLANTA – Dr. Debra Johnson-Jordan, a physician in East Point, Georgia, has been arraigned on federal charges of tax evasion and failing to file a federal income tax return.
“The indictment alleges that, despite earning significant income, this doctor failed to file tax returns for several years in a row, and then claimed that she was exempt from paying taxes,” said U.S. Attorney John Horn.
“IRS Criminal Investigation is sworn to protect the tax system and bring to justice those who steal from the Treasury,” stated Veronica F. Hyman-Pillot, Special Agent in Charge. “Dr. Jordan stole from the American people by failing to file tax returns and pay the taxes that she owed for numerous years.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Johnson-Jordan, who practices medicine in East Point, Georgia, is charged with two counts of tax evasion for filing false W-4 forms with her employer claiming that she was exempt from paying federal income taxes for tax years 2011 and 2012. Johnson-Jordan claimed she was exempt from paying federal income taxes despite earning at least $363,376. Johnson-Jordan is also charged with one count of failing to file a federal income tax return for 2010, despite earning at least $175,943. The indictment also alleges that Johnson-Jordan failed to file federal income tax returns for tax years 1997-2007 and 2010-2012.
Debra Johnson-Jordan, 58, of Winder, Georgia, was arraigned before U.S. Magistrate Judge Janet F. King. She was indicted by a federal grand jury on August 26, 2015.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Nick Somphonphakdy, 19, of Bayou La Batre, was sentenced today in federal court for his role in a marijuana distribution conspiracy. Somphonphakdy pled guilty to conspiracy to possess with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking felony in June of 2015.
United States District Court Judge William H. Steele ordered that Somphonphakdy serve a total sentence of 90 months imprisonment, consisting of 30 months on the drug charge consecutive to 60 months on the gun charge. He also ordered that Somphonphakdy serve a five-year term of supervised release, which will commence when he is released from prison. As a special condition of his supervision, Somphonphakdy will undergo drug testing and treatment. Judge Steele ordered that Somphonphakdy pay $200 in special mandatory assessments, but he did not impose a fine.
The case was investigated by the United States Postal Inspectors and the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Armed Bank Robber Sentenced to 32 Years in Federal PrisonRead the Press Release
MEDFORD, Ore.—Bradley William Monical, 45, of The Dalles, Oregon, was sentenced on September 23, 2015 by U.S. District Judge Michael McShane to 32 years in prison for committing seven bank robberies in Southern Oregon, Eastern Washington and Idaho, all in 2010. Judge McShane ordered the sentence to be served concurrently with state sentences previously imposed in Jackson and Coos County Circuit Courts for robbery in the first degree, robbery in the second degree, unlawful use of a weapon, felon in possession of a firearm, and escape. Monical was also ordered to pay $68,698 in restitution and to serve three years of supervised release.
The bank robberies Monical plead guilty to include:
- June 11, 2010, at Bank of America in Redmond, Oregon;
- August 27, 2010, at Wells Fargo Bank in Coeur d’Alene, Idaho;
- September 4, 2010, at Banner Bank in Walla Walla, Washington;
- October 2, 2010, at Sterling Savings Bank in Spokane Valley, Washington;
- November 9, 2010, at Sterling Savings Bank in Medford, Oregon;
- December 2, 2010, at U.S. Bank in Kennewick, Washington; and
- December 20, 2010, at Sterling Savings Bank in Klamath Falls, Oregon.
During the Oregon robberies, Monical was armed with a pistol. In the Washington and Idaho robberies he was armed with what appeared to be a hand gun.
Monical was in custody on Oregon bank robbery charges when he escaped from the Jackson County Jail on November 19, 2012. Defendant was later found in Oregon City and was arrested by the U.S. Marshals Service. At the time of his arrest, he was found with his girlfriend, Carolyn Gibson. Gibson pled guilty to concealing a person from arrest and providing money and a vehicle for Monical after his escape. Gibson was sentenced to probation on February 2, 2015.
Monical also has pending charges of robbery and attempted murder in Marion County, Oregon.
The bank robbery and escape investigations were conducted by the FBI, U.S. Marshals Service, Redmond Police Department, City of Coeur d’Alene Police Department, Walla-Walla Police Department, Spokane Valley Police Department, Ashland Police Department, Medford Police Department, Jackson County Sheriff’s Office, Kennewick Police Department and Klamath Falls Police Department. The federal case was prosecuted by Assistant U.S. Attorney Judith R. Harper.
Albuquerque Man and Mexican National Sentenced to Prison for Violating Federal Narcotics Trafficking Laws in New MexicoRead the Press Release
ALBUQUERQUE – Luis Juan Contreras-Cano and Carlos Davenport were sentenced to prison today in federal court in Albuquerque, N.M., for violating the federal narcotics trafficking laws. Contreras-Cano, 20, a Mexican national residing in Albuquerque, was sentenced to 97 months in prison. He will be deported following his incarceration. Davenport, 41, of El Paso, Texas, was sentenced to 15 years in prison followed by five years of supervised release.
Contreras-Cano and Davenport were arrested on Dec. 13, 2014, in Bernalillo County, N.M., after law enforcement officers, on a criminal complaint, searched the vehicle in which the two men were traveling and found ten pounds of methamphetamine and two firearms. Contreras-Cano and Davenport were subsequently indicted on Jan. 8, 2015, and charged with conspiracy to possess methamphetamine with intent to distribute, possession of methamphetamine with intent to distribute, and using and carrying firearms in relation to a drug trafficking crime. All offenses took place in Bernalillo County.
On June 24, 2015, Contreras-Cano pled guilty to a felony information charging him with conspiracy to distribute methamphetamine. In entering the guilty plea, Contreras-Cano admitted that while driving through Bernalillo County on Dec. 13, 2014, he and Davenport were stopped by Albuquerque Police officers who found ten pounds of methamphetamine, two firearms and ammunition during a search of their vehicle. Contreras-Cano further admitted that he and Davenport had acquired to the methamphetamine in Phoenix, Ariz., and were planning to redistribute the methamphetamine.
On June 17, 2015, Davenport pled guilty to Counts 1 and 3 of the indictment charging him with conspiracy to distribute methamphetamine and using and carrying a firearm in relation to a drug trafficking crime.
This case was investigated by the Albuquerque offices of the FBI and Homeland Security Investigations (HSI) and the Albuquerque Police Department. Assistant U.S. Attorneys James R.W. Braun and Joel R. Meyers prosecuted the case.
Albany Man Pleads Guilty to Facebook ThreatsRead the Press Release
EUGENE, Ore. – Timothy Loren McCoy Fleming, 23, of Albany pled guilty today in U.S. District Court to transmitting a threat in interstate commerce. Fleming admitted in his plea agreement that he posted on Facebook threats to kill a police officer at the Albany City Hall, along with a picture of himself holding a pistol.
Transmitting a threat in interstate commerce is a felony offense punishable by up to five years in prison and a $250,000 fine.
Fleming made the threats last January and was arrested on a state probation violation. He was transferred to federal custody in April after a complaint was filed in U.S. District Court. Fleming remains in custody pending his sentencing hearing on January 4 before U.S. District Judge Michael McShane in Eugene.
This case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney William “Bud” Fitzgerald is prosecuting the case.
***Corrected*** U.S. Attorney's Office Resolves Complaint Against Restaurant for Refusing Service to Customer with Service AnimalRead the Press Release
Contact Person: John Douglas (843) 727-4381
Columbia, SC– United States Attorney Bill Nettles today announced an agreement with Cook Out – Conway, Inc., which operates a Cook Out restaurant in Conway, South Carolina. The agreement resolves allegations that the restaurant violated the Americans with Disabilities Act (ADA) by refusing service to an individual on the basis of his disability. The Settlement Agreement concludes an investigation which began in August of 2014, when a complaint was filed with the U.S. Attorney’s Office. The complaint alleged that a man attempted to obtain service at the Cook Out, but was refused because he was accompanied by his service animal.
Pursuant to the terms of the Settlement Agreement, Cook Out – Conway, Inc. agreed not to discriminate against any individual on the basis of disability and to provide service to all persons with disabilities, including those accompanied by a service animal. Cook Out – Conway, Inc. also agreed to adopt an ADA compliant service animal policy.
The Settlement Agreement is part of a broader effort by the Department of Justice to enforce the ADA and to educate the public about the ADA’s requirements. “This settlement exemplifies the U.S. Attorney’s Office commitment to protecting the civil rights of all citizens of South Carolina, including those with disabilities,” United States Attorney Nettles said.
The ADA prohibits public and private entities from discriminating against persons with disabilities. Under the ADA, state and local governments, businesses, and nonprofit organizations that serve the public generally must allow service animals to accompany people with disabilities in all areas of the facility where the public is normally allowed, including restaurants, movie theaters, stores, hospitals, doctor’s offices, and fairs.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including guidance on service animals. Those publications can be found online at www.ada.gov/service_animals_2010.htm. For more information about the Americans with Disabilities Act, go to www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed with the U.S. Attorney’s Office or online at www.ada.gov/filing_complaint.htm.
This case was handled by Assistant United States Attorney John Douglas.
** The restaurant name was misidentified in the previous press release that was issued on 23 September 2015. It should have read “Cook Out.”
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24 September 2015
Whitesboro Man Pleads Guilty to Methamphetamine Distribution and Ammunition PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that KENNY RAY SMITH, age 52, of Whitesboro, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841 (b)(1)(C), punishable by not more than 20 years imprisonment, up to a $1,000,000.00 fine or both and FELON IN POSSESSION OF AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine of up to $250,000.00 or both.
The Indictment alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
It was further alleged that on or about February 13, 2015, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Oklahoma Bureau of Narcotics and the District 16 District Attorney’s Drug Task Force.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Wheeling man sentenced for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Sharod Hodge, 37, of Wheeling, was sentenced today to 21 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Hodge was discovered in possession of cocaine in April 2014 near a public housing authority facility, known as Riverview Towers, in Ohio County, West Virginia. He pled guilty in May 2015 to one count of “Possess Cocaine with Intent to Distribute Near a Protected Location.”
Assistant U.S. Attorney Robert McWilliams prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force and the Ohio Valley Drug and Violent Crime Task Force, both HIDTA-funded initiatives, investigated.
U.S. District Judge John Preston Bailey presided.
Washington D.C. Man Charged with Transporting Teenage Boy to Engage in Sexual ActivityRead the Press Release
BOSTON – Jason Michael Wolf, 29, was arrested and charged today in U.S. District Court in Boston with one count of transportation of a minor in interstate commerce to engage in illegal sexual activity. Wolf was ordered detained during an initial appearance today before U.S. Magistrate Judge Marianne B. Bowler.
According to court documents, on Aug. 17, 2015, the Massachusetts Bay Transportation Authority (MBTA) Police received information that an adult man and a minor were acting inappropriately at the South Station Bus Terminal. Law enforcement arrived on scene and interviewed the two individuals who were identified as Wolf and a 14-year-old boy from Maryland. The two admitted that they had met on a mobile dating app in July, had traveled to Boston from Maryland, and had engaged in sexual activity in Maryland, Washington D.C., New York, and Boston.
Wolf was arrested by the Boston Police in August and charged with aggravated statutory rape of a child under state law. He is currently being held by local authorities.
The charge of transportation of a minor in interstate commerce to engage in illegal sexual activity provides for a minimum mandatory term of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $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; Joseph R. Bonavolonta, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; James V. Buthorn, Acting Inspector in Charge of the U.S. Postal Inspection Service; Boston Police Commissioner William Evans; and Acting Chief Kenneth Green of the MBTA Transit Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virgin Islands Water and Power Authority signs legal agreement with EPA and U.S. Department of Justice to reduce air pollution at two power plantsRead the Press Release
WASHINGTON – Under an agreement announced today by the Department of Justice and the Environmental Protection Agency, the Virgin Islands Water and Power Authority (VIWAPA) will come into compliance with the federal Clean Air Act at its Krum Bay facility on St. Thomas and Cruz Bay facility on St. John, U.S. Virgin Islands. The settlement resolves numerous violations of the Clean Air Act, including VIWAPA’s failure to properly operate pollution control equipment to reduce emissions of nitrogen oxides and particulate matter that can cause serious respiratory illness. These pollutants are linked to health problems, including asthma, lung and heart disease. VIWAPA will spend approximately $12.2 million to comply with the agreement’s requirements. VIWAPA will also pay a $1.3 million penalty.
Separate from the settlement, VIWAPA has been in the process of converting several of its oil-fired turbines at the St. Thomas facility to be capable of burning liquefied petroleum gas or liquefied natural gas. The settlement requires that at least 85 percent of the power VIWAPA generates from the converted units be from burning liquefied petroleum gas or liquefied natural gas at the converted units and renewable sources. The agreement will result in a reduction of nitrogen oxide emissions by approximately 1,300 tons per year and particulate matter emissions by approximately 185 tons per year. In addition, the conversion to LPG or LNG will reduce the amount of carbon dioxide, a greenhouse gas, from the St. Thomas facility by approximately 66,000 tons per year and sulfur dioxide by approximately 200 tons per year.
“Today’s settlement marks another milestone in our ongoing efforts to enforce the Clean Air Act and reduce air pollution from power plants,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement will eliminate thousands of tons of harmful air pollution each year, significantly improving air quality in the Virgin Islands.”
“This settlement will drastically reduce the amount of air pollution in the Virgin Islands and bring the St. Thomas power plant, one of the most significant sources of air pollution in the U.S. Virgin Islands, into compliance with the Clean Air Act,” said Regional Administrator Judith A. Enck for EPA.
Under the Clean Air Act, large industrial facilities that make modifications that increase air pollution emissions must install best available control technology. VIWAPA operates with a permit that requires it to use the best available control technology to control emissions of nitrogen oxides and particulate matter. The complaint, which this settlement resolves, alleged numerous violations, including that VIWAPA had not properly operated nor maintained its water injection pollution control system during various times from October 2005 through December 2013. The complaint also alleged that the St. Thomas facility failed to meet the opacity (smoke) emission limits during normal operations and failed to conduct continuous monitoring to ensure compliance with its limits, and to keep proper records.
Under the agreement, at the St. Thomas facility, VIWAPA will:
- Properly operate and maintain the water injection pollution control system;
- Properly operate and maintain the continuous monitoring equipment;
- Develop and maintain an inventory of spare parts for the St. Thomas facility’s water injection pollution control system and emission monitoring equipment;
- Arrange for third-party audits and self-audits to ensure compliance with the water injection pollution control system requirements and emission monitoring requirements;
- Install a pollution control device to reduce visible emissions from one unit; and
- Install a video camera system to monitor visible emissions from the stacks and conduct visible emission monitoring when visible emissions are observed.
Under the agreement, at the St. John facility, VIWAPA will:
- Use cleaner fuel; and
- Submit a request to the Virgin Islands government to modify the permit to designate the unit as an emergency unit.
EPA has worked with VIWAPA over the past several years to address its violations and operations at the St. Thomas facility and the St. John facility. As a result of that work, VIWAPA has already repaired and replaced pollution controls and monitoring equipment at the St. Thomas facility. It replaced its data acquisition system and installed an improved water system, which it now uses in its water injection pollution control system.
For more information on this settlement or to read the proposed consent decree, go to: http://www.justice.gov/enrd/consent-decrees
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IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Virgin Islands Water and Power Authority Signs Legal Agreement with EPA and U.S. Department of Justice to Reduce Air Pollution at Two Power PlantsRead the Press Release
Under an agreement announced today by the Department of Justice and the Environmental Protection Agency, the Virgin Islands Water and Power Authority (VIWAPA) will come into compliance with the federal Clean Air Act at its Krum Bay facility on St. Thomas and Cruz Bay facility on St. John, U.S. Virgin Islands. The settlement resolves numerous violations of the Clean Air Act, including VIWAPA’s failure to properly operate pollution control equipment to reduce emissions of nitrogen oxides and particulate matter that can cause serious respiratory illness. These pollutants are linked to health problems, including asthma, lung and heart disease. VIWAPA will spend approximately $12.2 million to comply with the agreement’s requirements. VIWAPA will also pay a $1.3 million penalty.
Separate from the settlement, VIWAPA has been in the process of converting several of its oil-fired turbines at the St. Thomas facility to be capable of burning liquefied petroleum gas or liquefied natural gas. The settlement requires that at least 85 percent of the power VIWAPA generates from the converted units be from burning liquefied petroleum gas or liquefied natural gas at the converted units and renewable sources. The agreement will result in a reduction of nitrogen oxide emissions by approximately 1,300 tons per year and particulate matter emissions by approximately 185 tons per year. In addition, the conversion to LPG or LNG will reduce the amount of carbon dioxide, a greenhouse gas, from the St. Thomas facility by approximately 66,000 tons per year and sulfur dioxide by approximately 200 tons per year.
“Today’s settlement marks another milestone in our ongoing efforts to enforce the Clean Air Act and reduce air pollution from power plants,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This settlement will eliminate thousands of tons of harmful air pollution each year, significantly improving air quality in the Virgin Islands.”
“This settlement will drastically reduce the amount of air pollution in the Virgin Islands and bring the St. Thomas power plant, one of the most significant sources of air pollution in the U.S. Virgin Islands, into compliance with the Clean Air Act,” said Regional Administrator Judith A. Enck for EPA.
Under the Clean Air Act, large industrial facilities that make modifications that increase air pollution emissions must install best available control technology. VIWAPA operates with a permit that requires it to use the best available control technology to control emissions of nitrogen oxides and particulate matter. The complaint, which this settlement resolves, alleged numerous violations, including that VIWAPA had not properly operated nor maintained its water injection pollution control system during various times from October 2005 through December 2013. The complaint also alleged that the St. Thomas facility failed to meet the opacity (smoke) emission limits during normal operations and failed to conduct continuous monitoring to ensure compliance with its limits, and to keep proper records.
Under the agreement, at the St. Thomas facility, VIWAPA will:
-
Properly operate and maintain the water injection pollution control system;
-
Properly operate and maintain the continuous monitoring equipment;
-
Develop and maintain an inventory of spare parts for the St. Thomas facility’s water injection pollution control system and emission monitoring equipment;
-
Arrange for third-party audits and self-audits to ensure compliance with the water injection pollution control system requirements and emission monitoring requirements;
-
Install a pollution control device to reduce visible emissions from one unit; and
-
Install a video camera system to monitor visible emissions from the stacks and conduct visible emission monitoring when visible emissions are observed.
Under the agreement, at the St. John facility, VIWAPA will:
-
Use cleaner fuel; and
-
Submit a request to the Virgin Islands government to modify the permit to designate the unit as an emergency unit.
The EPA has worked with VIWAPA over the past several years to address its violations and operations at the St. Thomas facility and the St. John facility. As a result of that work, VIWAPA has already repaired and replaced pollution controls and monitoring equipment at the St. Thomas facility. It replaced its data acquisition system and installed an improved water system, which it now uses in its water injection pollution control system.
For more information on this settlement or to read the proposed consent decree, go to: http://www.justice.gov/enrd/consent-decrees
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