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Thursday 6 August 2015
Colombian Crime Syndicate Leader Sentenced to Prison for Role in Mediating Drug Money DisputesRead the Press Release
BOSTON – A leader of a criminal syndicate based in Medellín, Colombia, was sentenced today in U.S. District Court in Boston in connection with his role in a conspiracy to invest the proceeds from the sale of hundreds of kilograms of cocaine.
Fredy Alonzo Mira Perez, a/k/a Fredy Colas 49, of Medellín, Colombia, was sentenced by U.S. District Court Judge Douglas P. Woodlock to seven years in prison, three years of supervised release, a $25,000 fine, and forfeiture of $4 million. Mira Perez surrendered to U.S. law enforcement officials in Bogotá, Colombia in March 2015, and pleaded guilty to conspiracy to invest illicit drug profits in April 2015.
From approximately 2001 to September 2014, Mira Perez was a high-ranking member of La Oficina de Envigado (Oficina) a Colombia-based organized crime syndicate involved in the distribution of thousands of kilograms of cocaine from Colombia to locations worldwide, including the United States. Among other things, the organization served as a debt-collection agency for narcotics traffickers; controlled the flow of narcotics through Medellín and its surroundings; and invested in shipments of narcotics to the United States and elsewhere around the world. Members of Oficina have been known to employ kidnapping, violence, and extortion to achieve these ends.
As one of the leaders of Oficina, Mira Perez conspired with others to import cocaine into the United States and to invest the proceeds from those sales. For years, including from 2012 to 2014, Mira Perez’s served as Oficina’s principal debt collector. Mira Perez also was responsible for the collection of debts on behalf of other drug-trafficking organizations in Mexico and Colombia. These organizations contracted with Oficina to recoup missing drugs and drug proceeds. Among other things, Mira Perez adjudicated disputes regarding any drugs or drug money that was lost, stolen, or seized by law enforcement, and he conducted investigations to determine which parties would bear responsibility for the missing drugs and drug money. Mira Perez then set a repayment schedule. Mira Perez typically charged a forty-percent commission on behalf of Oficina for all recovered drug money, and he invested the commissions to fund the ongoing operations of Oficina.
This case is the result of an international undercover operation that was launched in Boston in 2011. The U.S. Drug Enforcement Administration (DEA) ultimately coordinated numerous undercover operations across the world and transferred millions of dollars, sometimes using the Black Market Peso Exchange in Colombia, in order to identify and prosecute criminal organizations like those led by Mira Perez.
According to the DEA, the larger investigation has led to seizure of approximately $15.2 million in illicit drug proceeds and the seizure in the United States and Colombia of approximately 3,970 kilograms of cocaine, 32,000 doses of MDMA (i.e., ecstasy), nine kilograms of methamphetamine, and 1,180 kilograms of marijuana, and the arrest of more than 60 Colombian nationals by Colombian law enforcement.
The investigation also resulted in the designation of multiple individuals and entities to the Specially Designated Nationals (SDN) list maintained by the Office of Foreign Assets Control (OFAC) within the U.S. Treasury Department. OFAC administers and enforces economic and trade sanctions against international narcotics traffickers. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope, and involve close cooperation with allied governments.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and John Smith, Director of the U.S. Treasury Department, Office of Foreign Assets Control, made the announcement today. The case was prosecuted by Assistant U.S. Attorney David J. D’Addio of Ortiz’s Narcotics and Money Laundering Unit.
Career Offender Sentenced to More than 12 Years in Prison for Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – Richard Palmisano, 41, formerly of Central Falls, a career offender with a criminal history dating back more than twenty years, including convictions on drug trafficking, firearms and assault charges, was sentenced today to 150 months in federal prison for trafficking more than 90 grams of crack cocaine, announced United States Attorney Peter F. Neronha; Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF; and Central Falls Police Chief Colonel James J. Mendonca.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Palmisano to serve five years supervised release upon completion of his prison term. Palmisano pleaded guilty on February 19, 2015, as charged in a six-count indictment to six counts of distribution of crack cocaine. No plea agreement was filed in this matter.
According to court records and information presented to the court, a joint investigation in the spring and summer of 2014 by ATF agents and Central Falls Police into Palmisano’s drug trafficking activities included five purchases of crack cocaine from Palmisano by an ATF undercover agent between April 24 and July 18. The purchases were of between 7.45 grams and more than 31grams for between $400 and $1,700.
Additionally, a court-authorized search of Palmisano’s residence, with the assistance of Rhode Island State Police and Providence Police, resulted in the seizure of 31 grams of crack cocaine which the undercover ATF agent had previously arranged to purchase from Palmisano.
Palmisano has been detained in federal custody since his arrest by ATF agents and Central Falls Police on August 7, 2014.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Canadian Marijuana Traffickers Convicted After TrialRead the Press Release
SYRACUSE, NEW YORK – On Wednesday, August 05, 2015, Canadian citizens Michael C. Woods and Gaetan Dinelle were convicted of multiple federal felony drug charges following a six day jury trial, announced United States Attorney Richard S. Hartunian. The defendants were found guilty of membership in three separate but related conspiracies, each involving 1,000 kilograms or more of marijuana destined for the United States. The jury also found both defendants guilty of being leaders of a continuing criminal enterprise (CCE), an ongoing, structured organization distributing marijuana over a period of years generating substantial income.
As a result of the CCE convictions, both Woods and Dinelle face the possibility of mandatory life imprisonment. Sentencing is scheduled for December 8, 2015, in Syracuse.
The evidence at trial showed that Woods, assisted by Dinelle, ran a vast international marijuana operation from Cornwall, Ontario, Canada, that operated from at least 2005 until 2008. During the trial, witnesses testified that Woods procured large quantities of marijuana from his sources in Canada and with Dinelle arranged for it to be smuggled across the border into the United States, where it was temporarily stored at various locations in Northern New York on the Akwasasne Mohawk Indian Reservation. From there the marijuana was driven by couriers who were selected and supervised by Woods and Dinelle to buyers throughout the Eastern United States.
Between 2006 and February 2008, law enforcement seized approximately $2,000,000 in currency that was marijuana proceeds and approximately 400 kilograms of marijuana from couriers working for Woods and Dinelle. Evidence during the trial included law enforcement estimates that the Woods organization distributed over 22,000 pounds of high-grade marijuana with gross wholesale receipts of $47,300,000 during the life of the conspiracy.
This prosecution in the United States followed the extradition of 15 individuals from Canada, including Woods and Dinelle, in the largest use of the extradition treaty between the two countries in a single case.
The trial witnesses included employees of the U.S. Drug Enforcement Administration (DEA) and DEA Northeast Regional Laboratory; the U.S. Department of Homeland Security, U.S. Border Patrol, Immigration and Customs Enforcement; the New York State Police and New York State
Police Forensic Investigation Center; the Massachusetts State Police and Massachusetts State Laboratory, the Warren County (New York) Sheriff’s Office, and the New Hampshire State Police Laboratory. The Royal Canadian Mounted Police also provided assistance throughout the investigation. The case was prosecuted by Assistant U.S. Attorney Carl G. Eurenius.
CEO of Chicago-Based Health Care Company Charged with Billing Medicare for Phony and Non-Existent Treatment of the Elderly in $1.2 Million SchemeRead the Press Release
CHICAGO — The chief executive officer of Chicago-based Home Physician Services LLC was arrested Thursday on charges that he billed Medicare for up to $1.2 million in fraudulent or non-existent services purportedly provided to the elderly and homebound.
HENRY SMILIE, 54, of Lake Zurich, was taken into custody Thursday morning. At the same time, federal agents executed search warrants at the Chicago and Schaumburg offices of Home Physician Services, where Smilie serves as chief executive officer. He was charged with Medicare fraud in a federal criminal complaint that was unsealed after his arrest.
The charges against Smilie are part of an ongoing investigation into a scheme to fraudulently increase Medicare bills for doctors of home health patients for care that did not qualify for reimbursement or simply wasn’t performed at all. According to a federal affidavit filed with the complaint, doctors employed by Smilie billed Medicare for treatment provided to elderly patients who were supposedly confined to their homes, enabling his company to claim physician fees for in-home treatment. In reality, the patients were not confined to their homes and thus were not qualified to receive the in-home services, according to the affidavit. From February 2012 to July 2014, Medicare paid Home Physician Services $1.2 million for Care Plan Oversight, the billing code for doctor supervision of treatment of a home-health patient, the affidavit states.
Smilie is scheduled to make an initial appearance at 2:00 p.m. this afternoon before U.S. Magistrate Judge Daniel G. Martin. The Medicare fraud count carries a maximum penalty of 10 years in prison, a $250,000 fine and mandatory restitution. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.
“Home health care fraud carries a very high price tag in our communities,” Mr. Fardon said. “Our partners at the federal, state and local level are committed to rooting out and combatting fraud, waste and abuse in the home health care system.”
According to the affidavit, Home Physician Services, whose principal office is located at 6002 N. Keating Ave. in Chicago, arranges in-home visits for elderly and homebound patients, and contracts with doctors who perform house calls and oversee the patients’ treatment plans. The physicians assign their bill-collecting rights to Home Physician Services, in return for being paid directly by the company. As part of the scheme, Smilie reported to Medicare that his physicians had performed services for the patients, when, in fact, little or no such treatment was rendered, the affidavit states.
According to the affidavit, federal agents have interviewed several current and former employees of Home Physician Services, including some who claimed to have reported fraudulent billing practices to Smilie before they were contacted by federal agents. One former employee, identified in the affidavit as “Individual F,” reported to agents that Smilie instructed him on how to complete the Care Plan Oversight paperwork so that the company could bill the maximum amount to Medicare – even if the treatment was not fully performed, the affidavit states. Another former employee of Home Physician Services – identified in the affidavit as “Individual H” – said the company performed a routine swab of each patient and then billed $1,000 to Medicare for each swab, according to the affidavit.
Individual F told agents Smilie stressed to employees that the minimum duration of the purported treatment needed to add up to 30 minutes, which is the barometer for triggering maximum payment by Medicare for certain Care Plan Oversight service, according to the affidavit. “Individual F told agents that Smilie instructed him to find whatever he could in the patient file to use to document the CPO, and if he did not find enough events to total 30 minutes, to just ‘make it up,’” the affidavit states.
The affidavit goes on to state that Individual F told agents that home-health agency workers from outside entities, such as nurses and therapists, called Smilie to get signed physician orders for treatment. Individuals F and H said they saw Smilie using rubber stamps of physicians’ signatures to create those orders, according to the affidavit. Individual F said that when he notified Smilie that the rubber stamping of physicians’ signatures may be illegal, Smilie “laughed and said that Home Physician Services’ CPO activities were also illegal,” the affidavit states.
As part of the investigation, a confidential source posed undercover as a 71-year-old Medicare recipient, according to the affidavit. Although able-bodied and not confined to his home, the confidential source was certified as homebound by Home Physician Services, the affidavit states. During secretly recorded visits by physicians from Home Physician Services, the confidential source is seen walking outside of his home to tend to his dogs, and explaining to the doctors that he enjoys gardening and visiting friends outside the home, the affidavit states. The confidential source received several house calls from doctors at Home Physician Services, who continued to certify him as homebound in bills submitted to Medicare.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Renato Mariotti.
To report health care fraud or to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), logon to: StopMedicareFraud.gov.
Complaint
Bradford Resident Pleads Guilty to Drug and Gun ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Harold Peters, III, 37, of Bradford, Maine pleaded guilty today in U.S. District Court to conspiring to distribute and possess with the intent to distribute bath salts and being a felon in possession of firearms.
According to court records, the defendant joined a conspiracy that distributed the “bath salt” Alpha-PVP in Penobscot County between January 2012 and March 2014. The defendant helped acquire Alpha-PVP from China; got distribution size quantities of it from other conspirators; distributed it to dealers and users in the Bangor area; collected drug proceeds from customers and delivered it to his suppliers; and used cellular telephones to coordinate the criminal activity.
In March 2014, the defendant illegally possessed two Winchester rifles that he purchased from another conspirator in exchange for Alpha-PVP. The defendant was prohibited from possessing firearms because he had previously been convicted of three felony offenses (unlawful sexual contact, trafficking in prison contraband, and failure to comply with sex offender registry act). The firearms were recovered from a family member’s residence where the defendant stored them.
On the drug charge, the defendant faces up to 20 years in prison, a $1,000,000 fine, and between three years and life of supervised release. On the gun charge, he faces up to 10 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine Drug Enforcement Agency, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven (Connecticut) Police Department.
Bossier City man sentenced to 10 months in prison for bankruptcy fraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City man was sentenced to 10 months in prison for concealing his business assets during bankruptcy proceedings.
John M. Santoro, 43, of Bossier City, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of concealment of assets in a bankruptcy proceeding. He was also sentenced to one year of supervised release. According to evidence presented at the April 7, 2015 guilty plea, Santoro filed for Chapter 7 bankruptcy protection on May 20, 2011, as the owner and for Santoro’s Catering Inc. After filing, Santoro had a third party sell a 2007 Dodge Ram 3500, which belonged to Santoro’s Catering Inc., and also sold some of the company’s catering equipment. Santoro failed to disclose the existence of the truck and the catering equipment to the bankruptcy trustee or list it on his bankruptcy petition. In bankruptcy proceedings, debtors are required to fully disclose all assets and liabilities.
The FBI conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Cytheria D. Jernigan prosecuted the case.
Arizona Woman Sentenced to Six Years Jail in Identity Theft Tax Fraud CaseRead the Press Release
U.S. Attorney Richard S. Hartunian of the Northern District of New York and Acting Special Agent in Charge Thomas E. Bishop of the Internal Revenue Service-Criminal Investigations (IRS-CI) New York Field Office announced that Elaine Monique Zavalla-Charres, 34, of Winslow, Arizona, was sentenced yesterday in federal court in Utica, New York, in connection with her convictions for mail fraud and aggravated identity theft in a case involving false federal income tax returns that resulted in the theft of over $400,000 from the IRS. Zavala-Charres was sentenced to serve a total of 72 months in jail: 48 months for mail fraud and a consecutive term of 24 months for aggravated identity theft. She was also sentenced to serve three years of supervised release following her release from prison and ordered to pay restitution to the IRS in the amount of $411,309.
The fraud scheme occurred in 2011 through 2013. A co-defendant of Zavala-Charres, Lacey Hollinger, 27, of Massena, New York, contacted Massena-area residents via Facebook and other electronic media to tell them they were eligible for a tax refund, even though they were unemployed and had no income, as part of a U.S. government “stimulus program.” No such program existed. Several dozen responded, giving Hollinger their personal identification information (date of birth, social security number, etc.). Hollinger forwarded this information to Zavala-Charres, who used it to create false and fraudulent tax returns that, with others obtained from Arizona residents, generated over $400,000 in tax refunds. Zavala-Charres, Hollinger and others involved in the fraud scheme stole these funds after they were electronically deposited in bank accounts in Arizona.
The Massena-area residents never saw the tax returns, which falsely represented that they were self-employed and entitled to a refund. Some received pre-paid debit cards that Zavala-Charres directed to them through the U.S. mail. Many got nothing, with Zavala-Charres and Hollinger keeping most of the refund money. On May 22, 2013, IRS-CI special agents executed a search warrant at the former residence of Zavala-Charres in Phoenix resulting in the recovery of a computer used to create and file the fraudulent tax returns and numerous other documents used in the scheme.
Co-defendant Hollinger was sentenced on May 22, 2015, to serve a term of 36 months imprisonment, three years of supervised release and restitution.
“People who use identity theft to steal money by filing fake tax returns hurt honest taxpayers and cost the United States billions of dollars,” said U.S. Attorney Hartunian. “Cross-country crime connections cannot be allowed to evade the reach of the law. This was a serious crime warranting significant jail sentences and full restitution.”
“The Internal Revenue Service has made the investigation of individuals who orchestrate tax refund schemes using stolen identities a top priority,” said Acting Special Agent in Charge Bishop. “The sentence that Zavala-Charres received illustrates the consequences of committing this type of crime and how seriously the government is about prosecuting it. It will hopefully serve as a deterrent to others.”
The case was investigated by special agents of the IRS-CI Syracuse, New York, Field Office. The case was prosecuted by Assistant U.S. Attorney Richard Southwick of the Northern District of New York.
Arizona Woman Sentenced to Six Years Jail in Identity Theft Tax Fraud CaseRead the Press Release
SYRACUSE, NEW YORK –United States Attorney Richard S. Hartunian and IRS-Criminal Investigations, New York Field Office, Acting Special Agent in Charge Thomas E. Bishop announced that Elaine Monique Zavalla-Charres, 34, of Winslow, Arizona was sentenced yesterday in federal court in Utica, New York in connection with her convictions for mail fraud and aggravated identity theft in a case involving false federal income tax returns that resulted in the theft of over $400,000 from the IRS. Charres was sentenced to serve a total of seventy-two 72 months in jail: 48 months for mail fraud and a consecutive term of 24 months for aggravated identity theft. She was also sentenced to serve 3 years of supervised release following her release from prison and ordered to make restitution to the IRS of $411,309.
The fraud scheme which gave rise to the sentence occurred in 2011 through 2013. A co-defendant of Elaine Monique Zavalla-Charres, Lacey Hollinger, 27, of Massena, New York, contacted Massena area residents via Facebook and other electronic media to tell them they were eligible for a tax refund even though they were unemployed and had no income as part of a U.S. Government "stimulus program." No such program existed. Several dozen responded, giving Hollinger their personal identification information (date of birth, social security number, etc.). Hollinger forwarded this information to Charres, who used it to create false and fraudulent tax returns that, with others obtained from Arizona residents, generated over $400,000 in tax refunds. Charres, Hollinger, and others involved in the fraudulent scheme stole these funds after they were electronically deposited in bank accounts in Arizona.
The Massena area residents never saw the tax returns, which falsely represented that they were self-employed and entitled to a refund. Some received pre-paid debit cards that Elaine Monique Zavalla-Charres directed to them through the U.S. Mail. Many got nothing, with Charres and Hollinger keeping most of the refund money. On May 22, 2013, IRS-CI Special Agents executed a search warrant at the former residence of Charres in Phoenix, Arizona, resulting in the recovery of a computer used to create and file the fraudulent tax returns and numerous other documents used in the scheme.
Co-defendant Lacey Hollinger was sentenced on May 22, 2015 to serve a term of 36 months imprisonment, three years of supervised release and restitution.
United States Attorney Richard S. Hartunian stated, "People who use identity theft to steal money by filing fake tax returns hurt honest taxpayers and cost the United States billions of dollars. Cross-country crime connections cannot be allowed to evade the reach of the law. This was a serious crime warranting significant jail sentences and full restitution."
"The Internal Revenue Service has made the investigation of individuals who orchestrate tax refund schemes using stolen identities a top priority. The sentence that Ms. Zavala-Charres received illustrates the consequences of committing this type of crime and how seriously the government is about prosecuting it. It will hopefully serve as a deterrent to others," said IRS-Criminal Investigations in the New York Field Office, Acting Special Agent in Charge Thomas E. Bishop.
The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigations (Syracuse, New York Field Office). It was prosecuted by Assistant United States Attorney Richard Southwick.
Arch Coal Subsidaries to Make System-Wide Upgrades to Reduce Pollution Entering U.S. WatersRead the Press Release
The Department of Justice and Environmental Protection Agency (EPA) announced today that Arch Coal Inc., one of the nation’s largest coal companies, and 14 of its subsidiaries under the International Coal Group Inc. (ICG) have agreed to conduct comprehensive upgrades to their operations to ensure compliance with the Clean Water Act. The settlement resolves hundreds of Clean Water Act violations related to illegal discharges of pollutants at the companies’ coal mines in Kentucky, Pennsylvania, Maryland, Virginia and West Virginia. The states of West Virginia, Virginia and Pennsylvania are co-plaintiffs in today’s settlement. The companies will also pay a $2 million civil penalty.
“This joint enforcement effort, with three states, has resulted in a settlement that will require changes that will benefit the health and environment of Appalachian communities for many years to come,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Under the terms of the agreement, Arch Coal and its subsidiaries will pay a significant penalty, improve their pollution control systems and provide for independent monitoring and data tracking that will make it a better company and a better neighbor to these communities.”
“Businesses have an obligation to ensure that their operations don’t threaten the communities they serve, especially those that are overburdened by or more vulnerable to pollution,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This settlement will prevent future environmental and public health risks by making sure these companies comply with federal and state clean water laws.”
“Today’s settlement is good news for water quality in the Appalachian region, especially people living in vulnerable and underserved communities,” said Regional Administrator Shawn M. Garvin for EPA. “It represents an important next step forward by requiring these companies to take necessary actions to reduce pollution from their mining operations.”
In addition to paying the penalty, under the proposed consent decree the companies must implement measures to ensure compliance and prevent future Clean Water Act violations, which will help protect communities overburdened by pollution, including:
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Developing and implementing a compliance management system.
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Periodic internal and third-party environmental compliance audits.
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Maintaining a data management system to track violations, water sampling data and compliance efforts.
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Providing training for environmental managers and others responsible for the consent decree.
Paying escalating stipulated penalties if violations continue to occur.
The government complaint filed concurrently with the settlement alleged that in the last six years, ICG operations have violated discharge limits for aluminum, manganese, iron and total suspended solids in their state-issued National Pollution Discharge Elimination System permits on more than 1,200 occasions, resulting in over 8,900 days of violations. Of those violations, 700 have been previously resolved by state enforcement actions in Kentucky and West Virginia.
EPA discovered the violations through inspections of ICG facilities and projects, reviewing various information provided by the companies and coordinating with the affected state governments.
The proposed consent decree, lodged in the U.S. District Court for the Southern District of West Virginia, is subject to a 30-day public comment period and approval by the federal court.
The proposed settlement will be available online at: http://www.justice.gov/enrd/consent-decrees
More information on Clean Water Act Enforcement: http://www.epa.gov/compliance/civil/cwa/index.html
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Albuquerque Man Pleads Guilty to Making Anti-Semitic Threats Against Businesswoman and is Sentenced to ProbationRead the Press Release
ALBUQUERQUE – An Albuquerque man entered a guilty plea to a misdemeanor hate crime arising out of anti-Semitic threats he made against a Jewish woman who owns and operates the Nosh Jewish Delicatessen and Bakery in Albuquerque. After Ng entered his guilty plea, he was sentenced to four years of probation.Ng was arrested by the FBI on March 7, 2014, on a criminal complaint charging him with interfering with the victim’s federally protected rights by threatening her and interfering with her business because of her religion and because she owned a Jewish restaurant.
Proceedings in the case were delayed during the pendency of competency proceedings. Ng remained in federal custody from the time of his arrest until the court found him competent in May 2015, at which time he was released on conditions that included supervision by the U.S. Pretrial Services Agency.According to the indictment filed on April 23, 2014, Ng posted threatening, anti-Semitic notes on the door of the victim’s business on Jan. 22, 2014, and Feb. 8, 2014. One of the notes read, “TO: The [racial slur] who should die.” Another read, “FROM: The one you scarred for life scumbags[;] TO: The [racial slur] who will die like rats.”
During today’s proceedings, Ng pled guilty to the second count of the indictment, and admitted posting anti-Semitic notes on the door of the victim’s business on Feb. 8, 2014. Ng acknowledged that he intentionally posted the notes knowing that or in reckless disregard of the fact that notes would be perceived as threatening. Ng also admitted that on Feb. 11, 2014, he told the FBI that he had a bad history with Jews and targeted the Nosh Jewish Delicatessen because he believed it was a good location to ensure that his message would reach as many Jews as possible.
This matter was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico and Trial Attorney Angie Cha of the U.S. Department of Justice’s Civil Rights Division.
4 South Georgia Residents Indicted on Federal Drug Trafficking ChargesRead the Press Release
BRUNSWICK, GA – An Indictment returned by a federal grand jury sitting in Savannah in July and unsealed yesterday has charged 4 Georgia residents with conspiring to traffic cocaine and marijuana from 2014 to 2015 in the McIntosh, Glynn, Wayne, and Liberty County areas. The indicted defendants are:
Sterling Hunter “Tuffy” Bond, 53, from Townsend, Georgia,
Jeannette Bond, 48, from Townsend, Georgia,
Nik Kodros, 49, from Townsend, Georgia, and,
Lawrence Dewayne Floyd, 53, from Jesup, Georgia.
If convicted of the charged drug trafficking conspiracy charge, the defendants face a maximum of 20 years in prison and a $1 million fine.
Tuffy Bond, Jeanette Bond and Nik Kodros appeared in federal court in Brunswick yesterday for their initial appearances before U.S. Magistrate Judge R. Stan Baker. The Government asked that Tuffy Bond be detained pending trial; his detention hearing will be held on Monday in Brunswick. Kodros and Jeannette Bond were released yesterday on bond.
United States Attorney Edward Tarver emphasized that the indictments are only accusations and are not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The charges resulted from a federal investigation by the FBI and the DEA, with assistance from the McIntosh County Sheriff’s Office and the Darien Police Department. Assistant United States Attorney Charlie Bourne is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Wednesday 5 August 2015
Warren County, Kentucky Resident Guilty of Scheming with Others to File False Tax Returns to Obtain Fraudulent Tax RefundsRead the Press Release
Paid Mexican Nationals for Identification
Agreement includes $731,293.52 restitution
BOWLING GREEN, Ky. – A resident of Bowling Green, KY, pleaded guilty in U.S. District Court this week, before U.S. District Judge Greg N. Stivers, to charges of mail fraud and of entering into an agreement to defraud the Internal Revenue Service (IRS) by obtaining the payment of fraudulent claims, announced U.S. Attorney John E. Kuhn, Jr.
According to the plea agreement, Fernando Diaz Herrera conspired with others between June 23, 2010, and August 8, 2012 to defraud the IRS and U.S. Department of Treasury, by obtaining false claims. Specifically, Herrera paid Mexican Nationals, who lived outside the United States, for their means of identification, including birth certificates, immunization records and voter cards. The defendant and others then used these documents to obtain Individual Taxpayer Identification Numbers (ITIN). Herrera then used the ITINs to prepare and file fraudulent federal income tax returns – which caused federal income tax refunds to be dispersed. Herrera admits to cashing the fraudulent refund checks at financial institutions and businesses in Kentucky. Further, for the purposes of executing the scheme, Herrera admits to mail fraud when he caused a letter providing a falsely obtained ITIN to be sent from the IRS office in Austin, Texas, to an address in Bowling Green.
Herrera was charged by grand jury indictment, along with co-defendants Maria Chavez Salazar and Julio Ramos, on December 10, 2014.
If convicted at trial, Herrera could have been sentenced to a combined maximum term of 30 years in prison, fined $500,000 and served a three-year term of supervised release.
Sentencing is scheduled before Judge Stivers on November 23, 2015, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the United States Secret Service.
U.S. Attorney General Loretta E. Lynch Meets with Attorneys General of All Central American NationsRead the Press Release
A Department of Justice official released the following background statement at the conclusion of Attorney General Loretta E. Lynch’s meeting with Attorneys General from all Central American nations:
“On Wednesday, Attorney General Lynch convened the first ever ‘Dialogue’ with the Attorneys General of all seven Central American nations: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The goal of the Dialogue is to strengthen law enforcement cooperation against the threats common to all our countries. The Attorneys General discussed enhanced coordination against transnational cartels, gangs and terrorists; the Dialogue also focused on the rapidly rising issue of cybercrime and the persistent problem of human trafficking and smuggling. Attorney General Lynch and her counterparts agreed that this meeting was only a first step and that these vital discussions would continue, so as to enhance citizen security both in Central America and the U.S.”
DELEGATION
Belize:
Wilfred Peter Elrington, Attorney General and Minister of Foreign AffairsCosta Rica:
Jorge Chavarria Guzman, Attorney GeneralEl Salvador:
Luis Antonio Martinez Gonzalez, Attorney GeneralGuatemala:
Thelma Aldana Hernandez, Attorney GeneralHonduras:
Oscar Fernando Chinchilla Banegas, Attorney GeneralNicaragua:
Ana Julia Guido Ochoa, Attorney GeneralPanama:
Kenia Porcell De Alvarado, Attorney GeneralU.S. Attorney Davis Announces Federal Indictments Resulting from Jackson Violent Crime InitiativeRead the Press Release
Jackson, Miss – Five individuals were indicted by a federal grand jury this week as part of a new Jackson Violent Crime Initiative aimed at reducing violent crime in the City of Jackson, announced U.S. Attorney Gregory K. Davis.
The following individuals were indicted by a federal grand jury on August 4, 2015:
Recardeo Harris, age 32, of Jackson, was charged with possessing a firearm on June 5, 2015, after having been previously convicted of a felony.
James Homan, age 33, of Jackson, was charged with possessing a firearm on June 22, 2015, after having been previously convicted of a felony.
Len Arthur Bracey, age 38, of Jackson was charged with possessing a firearm on December 29, 2013, after having been previously convicted of a felony.
Aarron Harris, age 29, of Byram, was charged with possessing a firearm on July 4, 2015, after having been previously convicted of a felony.
Maurice King, age 29, of Jackson, was charged with three counts of possessing a firearm on August 1, 2014, September 20, 2014, and March 2, 2015, after having been previously convicted of a felony.
The maximum penalty for possession of a firearm by a convicted felon is ten years in federal prison and a $250,000 fine on each count.
Additional defendants previously indicted as a result of the Jackson Violent Crime Initiative include:
Antonio Anderson, age 22, of Jackson, was indicted on May 20, 2015, for possession of a firearm by a convicted felon. He pled guilty on July 23, 2015, and will be sentenced on October 15, 2015. He faces a maximum penalty of ten years in prison and a $250,000 fine.
Jarvis Durr, age 22, of Crystal Springs, was indicted on May 20, 2015, for carjacking and brandishing a firearm during a crime of violence. He is currently scheduled for trial on November 3, 2015. If convicted, he faces a maximum penalty of fifteen years in prison for carjacking and a maximum of life in prison for brandishing a firearm during a crime of violence, and a maximum $250,000 fine on each charge.
Richard Barnes, age 29, of Byram, was indicted on June 23, 2015, for possessing a firearm on April 10, 2015, after having previously been convicted of a felony. He is currently scheduled for trial on September 1, 2015. If convicted, he faces a maximum penalty of ten years in prison and a $250,000 fine.
Ira McGruder, age 23, of Jackson, was indicted on June 23, 2015, for carjacking and brandishing a firearm during a crime of violence. He is scheduled for trial on September 1, 2015. If convicted, he faces a maximum penalty of fifteen years in prison for carjacking and a maximum of life in prison for brandishing a firearm during a crime of violence, and a maximum $250,000 fine on each charge.
Demario Webster, age 19, of Jackson, was indicted on June 23, 2015, for carjacking and brandishing a firearm during a crime of violence. He is scheduled for trial on September 1, 2015. If convicted, he faces a maximum penalty of fifteen years in prison for carjacking and a maximum of life in prison for brandishing a firearm during a crime of violence, and a maximum $250,000 fine on each charge.
The Jackson Violent Crime Initiative is a joint initiative between federal, state and local law enforcement agencies who are working together to reduce violent crime in the city of Jackson and to remove violent offenders from the streets of this community. The Initiative is an ongoing operation aimed at making the streets of Jackson and the surrounding communities safe for all citizens. Jackson Violent Crime Initiative partners include the Jackson Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigations (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Secret Service.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Two men sentenced in federal court for firearms chargesRead the Press Release
Evansville – Josh J. Minkler, the United States Attorney, announced today that two men were sentenced in federal court by U.S. District Chief Judge Richard L. Young for firearms charges.
“This office remains committed to keeping our neighborhoods safe by taking violent felons off our streets,” said Minkler. “Those individuals who choose to carry illegal firearms and live a life of crime should plan to spend a great deal of time in federal prison.”
Danyon Dowlen, 28, Clarksville, TN, was arrested in March 2013, on South Morton Street in Evansville on an outstanding warrant for murder from Clarksville, Tennessee. Federal, state and local law enforcement found Dowlen in a residence and when they knocked, he ran to the rear of the house. When the residence was cleared, officers found a fully loaded 9mm handgun in the house which belonged to Dowlen. He had multiple felony convictions from Montgomery County, Tennessee, which include aggravated assault, escape and several narcotics charges. Dowlen was sentenced to 10 years in prison.
Terronta Booker, 27, Evansville, was sentenced to 41 months after his conviction in May 2015, for being a felon in possession of a firearm. In September 2014, Booker was shot by an Evansville Police Officer after he was seen exchanging gunfire with another individual on South Kentucky Street. Booker threw a .380 caliber handgun down as officers pursued him. It was recovered a short time later. Booker has a felony conviction for armed robbery and criminal confinement from Vanderburgh County in 2010.
According to Assistant U.S. Attorney Lauren Wheatley who prosecuted this case for the government, Dowlen must serve five years of supervised release after serving their sentences; Booker must serve three.
Two Springfield Men Plead Guilty to Stealing Guns from Pawn ShopRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Springfield, Mo., men have pleaded guilty in federal court to stealing 23 firearms during a burglary at an Ozark, Mo., pawn shop.
Matthew James Oakley, 24, of Springfield, pleaded guilty today before U.S. District Judge M. Douglas Harpool to aiding and abetting in the theft of firearms from a licensed firearm dealer. Co-defendant Corey Lee Downard, 33, of Springfield, pleaded guilty to the same charge on Tuesday, Aug. 4, 2015.
Co-defendants Daryl Bradley Maples, 28, of Springfield, and Michael Cameron Heston, 26, of Republic, Mo., have pleaded guilty to the same charge. Maples was sentenced on April 16, 2015, to six years in federal prison without parole. The court also ordered Maples to pay $5,900 in restitution.
Oakley, Downard, Maples and Heston each admitted that they broke into Sutton Gun and Pawn, 3994 N. 20th St., Ozark, at 2:16 a.m. on Dec. 21, 2012. Maples admitted that he smashed out the glass from the front door. Then he, Maples and Downard went inside and took firearms from the display cases. Oakley admitted that he was the getaway driver during the robbery.
They stole 23 firearms and various amounts of ammunition. After the burglary, Oakley sped off with Maples, Heston and Downard to Maples’ residence, where they divided the spoils of the burglary and set up plans to exchange or barter the stolen firearms for cash or drugs. It was Oakley’s understanding that he would receive money from the sale of the guns for his role as the getaway driver.
When Maples was arrested on Dec. 26, 2012, he had in his possession two of the firearms that were stolen in the pawn shop burglary, an F.N. 9mm pistol and a Colt .38-caliber revolver, as well as assorted ammunition.
Under federal statutes, Oakley, Downard and Heston are each subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ozark, Mo., Police Department and the Springfield, Mo., Police Department.
Two Men Sentenced and Another Pleads Guilty in Las Vegas for International Biofuels Fraud SchemeRead the Press Release
James Jariv, 64, of Las Vegas, Nevada, was sentenced in federal court in Las Vegas today to ten years in prison for his role in illegal schemes to generate fraudulent biodiesel credits and to export biodiesel without providing biodiesel credits to the United States. Jariv was also ordered to make restitution in the amount of $6,345,830.91 and to forfeit between $4 to $6 million in cash and other assets.
Jariv was the second defendant to be sentenced for the scheme. Nathan Stoliar, 64, of Australia, was sentenced to two years in prison in April for his role in the conspiracy and ordered to pay more than $1.4 million in restitution and to forfeit of $4 million in cash. In addition, in court papers unsealed last week, Alex Jariv, 28, also of Las Vegas, pleaded guilty in the scheme and his sentencing was scheduled for Aug. 18, 2015.
James Jariv and Stoliar both pleaded guilty to one count of conspiracy, one count of conspiracy to engage in money laundering, two counts of wire fraud and one count of making false statements under the Clean Air Act. Alex Jariv pleaded guilty to one count of conspiracy to commit wire fraud, make false statements and launder monetary instruments.
“This was an egregious scheme to defraud fuel suppliers, the United States, and a program designed to strengthen our nation’s petroleum independence and improve our air quality” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “We will not tolerate such fraud and will vigorously prosecute those who put their own enrichment above our nation’s interests.”
“Mr. Jariv and his co-defendant defrauded the United States government of millions of dollars through this biodiesel fraud scheme,” said U.S. Attorney Daniel Bogden for the District of Nevada. “They used a Las Vegas company and Las Vegas bank accounts to facilitate the scheme. Fortunately, in addition to convicting both defendants, we were able to seize and forfeit millions of dollars from numerous bank accounts, as well as real property in Nevada and California, jewelry and other assets.”
“EPA's criminal enforcement program goes after the most egregious offenders,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA. “For his role in undermining the Renewable Fuel Standard, developed to reduce the nation’s impact on climate change and lessen our dependence on foreign oil, Mr. Jariv is going to prison. Let today’s sentence send a clear message to others who engage in biofuel fraud that EPA takes seriously its responsibility to bring violators of this important program to justice.”
The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production and use of renewable fuels such as biodiesel in the United States. Biodiesel producers and importers can generate and attach credits known as renewable identification numbers (RINs) to the gallons of biodiesel they produce or import. Because certain companies (such as companies that sell transportation fuel in the United States) need RINs to comply with regulatory obligations, RINs have significant market value. They are routinely bought and sold in the marketplace. In addition, to ensure that RINs are generated for renewable fuel used only in the United States and in order to create an incentive for biodiesel in the United States to be used here, anyone who exports biodiesel is required to obtain these valuable RINs for all exported gallons and provide the RINs to EPA.
Beginning around September of 2009, James Jariv and Stoliar operated and controlled a company -- City Farm Biofuel in Vancouver, British Columbia, Canada -- that represented itself as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils. James Jariv and Stoliar also formed a company called Canada Feedstock Supply – that represented itself as City Farm’s supplier of feedstocks necessary to produce biodiesel. James Jariv operated and controlled a company based in Las Vegas called Global E Marketing (GEM).
Alex Jariv worked for and on behalf of these companies. Using these three and other closely-held companies, the three defendants claimed to produce biodiesel at the City Farm facility and to import and sell biodiesel to GEM and then generated and sold RINs based upon this claimed production, sale and importation. In reality, no biodiesel produced at City Farm was ever imported and sold to GEM as claimed. The Jarivs and Stoliar used GEM to claim to blend the biodiesel with petroleum diesel, allowing them to sell the RINs separately from any actual biodiesel. Using this scheme, the three men falsely claimed to import, purchase and blend more than 4.2 million gallons of biodiesel. They then sold the RINs, and fraudulently generated more than $7 million.
James Jariv and Stoliar also purchased and resold RIN-less B-99 biodiesel as B-100 biodiesel, which allowed them to charge substantially more for this product than if it has been accurately labeled. They exported significant amounts of the RIN-less B-99 they bought in the United States to Canada and Australia. They then sold the biodiesel in those countries and conspired to not acquire and provide RINs to the United States for these exports as they were required to do by law. In doing so, James Jariv and Stoliar failed to give to the United States RINs worth in excess of $34 million, keeping this money for themselves instead.
Finally, James and Alex Jariv and Stoliar conspired to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to promote their illegal schemes and distribute the proceeds of their crimes. Accounts were utilized in Canada, Nevada and Australia and transactions between the defendants’ closely-held companies were described as other legitimate transactions involving biodiesel, when in reality they were not.
The investigation into the Jarivs’ and Stoliar’s activities was the result of collaborative work by the EPA’s Criminal Investigation Division and the FBI, with assistance from the United States Secret Service, the Internal Revenue Service-Criminal Investigations, the Department of Homeland Security and the Royal Canadian Mounted Police.
The case was prosecuted by Wayne D. Hettenbach of the Environmental Crimes Section, U.S. Department of Justice, Assistant U.S. Attorneys Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney’s Office in Nevada and Assistant Deputy Chief Darrin L. McCullough of the Justice Department’s Criminal Division, Asset Forfeiture and Money Laundering Section, with the assistance of the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Texas.
Two Men Sentenced and Another Pleads Guilty in Las Vegas for International Biofuels Fraud SchemeRead the Press Release
WASHINGTON – James Jariv, 64, of Las Vegas, Nevada, was sentenced in federal court in Las Vegas today to ten years in prison for his role in illegal schemes to generate fraudulent biodiesel credits and to export biodiesel without providing biodiesel credits to the United States. Jariv was also ordered to make restitution in the amount of $6,345,830.91 and to forfeit between $4 to $6 million in cash and other assets.
Jariv was the second defendant to be sentenced for the scheme. Nathan Stoliar, 64, of Australia, was sentenced to two years in prison in April for his role in the conspiracy and ordered to pay more than $1.4 million in restitution and to forfeit of $4 million in cash. In addition, in court papers unsealed last week, Alex Jariv, 28, also of Las Vegas, pleaded guilty in the scheme and his sentencing was scheduled for Aug. 18, 2015.
James Jariv and Stoliar both pleaded guilty to one count of conspiracy, one count of conspiracy to engage in money laundering, two counts of wire fraud and one count of making false statements under the Clean Air Act. Alex Jariv pleaded guilty to one count of conspiracy to commit wire fraud, make false statements and launder monetary instruments.
“This was an egregious scheme to defraud fuel suppliers, the United States, and a program designed to strengthen our nation’s petroleum independence and improve our air quality” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “We will not tolerate such fraud and will vigorously prosecute those who put their own enrichment above our nation’s interests.”
“Mr. Jariv and his co-defendant defrauded the United States government of millions of dollars through this biodiesel fraud scheme,” said U.S. Attorney Daniel Bogden for the District of Nevada. “They used a Las Vegas company and Las Vegas bank accounts to facilitate the scheme. Fortunately, in addition to convicting both defendants, we were able to seize and forfeit millions of dollars from numerous bank accounts, as well as real property in Nevada and California, jewelry and other assets.”
“EPA's criminal enforcement program goes after the most egregious offenders,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA. “For his role in undermining the Renewable Fuel Standard, developed to reduce the nation’s impact on climate change and lessen our dependence on foreign oil, Mr. Jariv is going to prison. Let today’s sentence send a clear message to others who engage in biofuel fraud that EPA takes seriously its responsibility to bring violators of this important program to justice.”
The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production and use of renewable fuels such as biodiesel in the United States. Biodiesel producers and importers can generate and attach credits known as renewable identification numbers (RINs) to the gallons of biodiesel they produce or import. Because certain companies (such as companies that sell transportation fuel in the United States) need RINs to comply with regulatory obligations, RINs have significant market value. They are routinely bought and sold in the marketplace. In addition, to ensure that RINs are generated for renewable fuel used only in the United States and in order to create an incentive for biodiesel in the United States to be used here, anyone who exports biodiesel is required to obtain these valuable RINs for all exported gallons and provide the RINs to EPA.
Beginning around September of 2009, James Jariv and Stoliar operated and controlled a company -- City Farm Biofuel in Vancouver, British Columbia, Canada -- that represented itself as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils. James Jariv and Stoliar also formed a company called Canada Feedstock Supply – that represented itself as City Farm’s supplier of feedstocks necessary to produce biodiesel. James Jariv operated and controlled a company based in Las Vegas called Global E Marketing (GEM).
Alex Jariv worked for and on behalf of these companies. Using these three and other closely-held companies, the three defendants claimed to produce biodiesel at the City Farm facility and to import and sell biodiesel to GEM and then generated and sold RINs based upon this claimed production, sale and importation. In reality, no biodiesel produced at City Farm was ever imported and sold to GEM as claimed. The Jarivs and Stoliar used GEM to claim to blend the biodiesel with petroleum diesel, allowing them to sell the RINs separately from any actual biodiesel. Using this scheme, the three men falsely claimed to import, purchase and blend more than 4.2 million gallons of biodiesel. They then sold the RINs, and fraudulently generated more than $7 million.
James Jariv and Stoliar also purchased and resold RIN-less B-99 biodiesel as B-100 biodiesel, which allowed them to charge substantially more for this product than if it has been accurately labeled. They exported significant amounts of the RIN-less B-99 they bought in the United States to Canada and Australia. They then sold the biodiesel in those countries and conspired to not acquire and provide RINs to the United States for these exports as they were required to do by law. In doing so, James Jariv and Stoliar failed to give to the United States RINs worth in excess of $34 million, keeping this money for themselves instead.
Finally, James and Alex Jariv and Stoliar conspired to launder the proceeds of their crimes, utilizing foreign banking institutions and complex financial transactions to promote their illegal schemes and distribute the proceeds of their crimes. Accounts were utilized in Canada, Nevada and Australia and transactions between the defendants’ closely-held companies were described as other legitimate transactions involving biodiesel, when in reality they were not.
The investigation into the Jarivs’ and Stoliar’s activities was the result of collaborative work by the EPA’s Criminal Investigation Division and the FBI, with assistance from the United States Secret Service, the Internal Revenue Service-Criminal Investigations, the Department of Homeland Security and the Royal Canadian Mounted Police.
The case was prosecuted by Wayne D. Hettenbach of the Environmental Crimes Section, U.S. Department of Justice, Assistant U.S. Attorneys Crane M. Pomerantz and Daniel D. Hollingsworth of the U.S. Attorney’s Office in Nevada and Assistant Deputy Chief Darrin L. McCullough of the Justice Department’s Criminal Division, Asset Forfeiture and Money Laundering Section, with the assistance of the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Texas.
Three Tax Return Preparers Charged with Conspiracy and Preparing False Tax Returns at Tax Preparation Business with Multiple Locations in VirginiaRead the Press Release
Three tax return preparers were indicted today by a federal grand jury in Richmond, Virginia, on charges of conspiracy to defraud the United States and aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to the allegations in the indictment, from around December 2011 to spring 2012, Erik Pittman, 35, Jeremy Blanchard, 35, and Corey Taylor, 25, operated three locations of a tax return preparation business known as Mo Money Taxes. The indictment alleges that the three men, along with others, created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity Credit, to claim tax refunds that customers were not entitled to receive. All three defendants are charged with conspiracy to defraud the United States. Pittman is charged with six counts of assisting in the preparation of false federal income tax returns, Blanchard is charged with eight counts of assisting in the preparation of false federal income tax returns and Taylor is charged with five counts assisting in the preparation of false federal income tax returns.
If convicted, each defendant faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the conspiracy count and a statutory maximum sentence of three years in prison and a $250,000 fine for each count of preparing false tax returns.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente commended the special agents of IRS–Criminal Investigation, the FBI and the U.S. Postal Inspection Service, who investigated the case, as well as Assistant U.S. Attorney Stephen W. Miller of the Eastern District of Virginia and Trial Attorneys Todd P. Kostyshak and Kevin F. Sweeney of the Tax Division, who are prosecuting the case.
An indictment merely alleges that a crime has been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Three Members of 2012 Presidential Campaign Staff Charged with Concealing Payments Made to State SenatorRead the Press Release
Three members of a 2012 presidential campaign committee were charged with offenses relating to the concealment of payments made to a former Iowa State Senator.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge David J. LeValley of the FBI’s Washington, D.C., Field Office’s Criminal Division made the announcement.
“Federal campaign finance laws are intended to ensure the integrity and transparency of the federal election process,” said Assistant Attorney General Caldwell. “When political operatives make under-the-table payments to buy an elected official’s political support, it undermines public confidence in our entire political system.”
“Violating campaign finance laws by concealing payments to an elected official undermines our electoral system and deceives the public,” said Special Agent in Charge LeValley. “The FBI will aggressively investigate those who corrupt the integrity of our democratic process.”
Jesse R. Benton, 37, of Louisville, Kentucky; John M. Tate, 53, of Warrenton, Virginia; and Dimitrios N. Kesari, 49, of Leesburg, Virginia, are charged by indictment with conspiracy, causing false records to obstruct a contemplated investigation, causing the submission of false campaign expenditure reports to the Federal Election Commission (FEC) and engaging in a scheme to make false statements to the FEC. Benton is additionally charged with making false statements to the FBI, and Kesari is also charged with obstruction of justice.
Kesari appeared in the U.S. District Court for the Southern District of Iowa today. Benton and Tate are scheduled to appear on Sept. 3, 2015.
The defendants were members of a campaign for a candidate in the 2012 presidential election. According to allegations in the indictment, former Iowa State Senator Kent Sorenson initially supported one candidate in the 2012 presidential election, but between October and December 2011, secretly negotiated with the defendants to switch his support to their candidate in exchange for money. On Dec. 28, 2011, at a political event in Des Moines, Iowa, Sorenson publicly announced his switch of support.
The payments to Sorenson were allegedly made in monthly installments of approximately $8,000 each and ultimately amounted to over $70,000. The indictment alleges that the defendants concealed the payments by causing them to be recorded – both in campaign accounting records and in FEC filings – as campaign-related audio-visual expenditures, and by causing them to be transmitted to a film production company and then to a second company that was controlled by Sorenson. According to the indictment, the conspirators concealed their campaign’s payments to Sorenson from their candidate and also from the FEC, the FBI and the public.
The indictment further alleges that, in response to criticism of Sorenson’s change of support from one candidate to the other, the conspirators arranged for Sorenson to issue public statements denying allegations that he was offered money for his endorsement and noting that the campaign committee’s FEC filings would show that it made no payments to Sorenson.
On Aug. 27, 2014, Sorenson pleaded guilty to causing a campaign committee to falsely report its expenditures to the FEC and to obstruction of justice. He has not yet been sentenced.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI’s Washington, D.C., Field Office, with assistance from the Omaha, Nebraska, Field Office and the Des Moines Resident Agency. The case is being prosecuted by Director Richard C. Pilger of the Criminal Division’s Public Integrity Section’s Election Crimes Branch and Trial Attorney Jonathan I. Kravis of the Public Integrity Section.
Benton et al Indictment
Three Defendants Sentenced in Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ARTHUR MCKINNIS, age 25, NARCISSE TROTTER, age 44, and AARONISHA LEWIS, age 26, all of New Orleans, were sentenced today for their roles in a heroin conspiracy. MCKINNIS pled guilty in March to conspiring to distribute at least one kilogram of heroin in the New Orleans area, and TROTTER and LEWIS pled to charges of using cell phones in furtherance of the heroin trafficking conspiracy.
U.S. District Judge Kurt D. Engelhardt sentenced MCKINNIS to 172 months in prison, to be followed by five years of supervised release, and a $100 special assessment. The Court sentenced TROTTER to 42 months in prison, to be followed by one year of supervised release, and a $200 special assessment. LEWIS was sentenced to 24 months in prison, to be followed by one year of supervised release, and a $100 special assessment.
On June 24, 2015, U.S. District Judge Engelhardt sentenced BOLDEN to 300 months in prison for heroin distribution and distribution of heroin resulting in an overdose death. NOEL JONES received a sentenced of 162 months in prison for distribution of heroin. TAYLOR, PERCY DEPRON, ERNEST DIAZ, and MELVIN SMITH are awaiting sentencing. THEODORE GRIFFIN and TREY MITCHELL are scheduled for trial on September 14, 2015.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by dealers to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that the defendants had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically one of the dealers would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
According to the record, in July 2013, a court-authorized wiretap of the ‘dope’ phone used by defendant TERENCE TAYLOR intercepted a series of calls relating to the sale of heroin to a person who had recently been through treatment for heroin addiction, and who died later that day as a result of a heroin overdose. Intercepted calls helped to demonstrate that TAYLOR negotiated this particular sale of heroin and that defendant MALCOLM BOLDEN subsequently met with the decedent to complete the sale.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF, with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Texas man sentenced to more than 15 years in prison for traveling to Ohio to have sex with 13-year-old girlRead the Press Release
A Texas man was sentenced to more than 15 years in prison for traveling to Ohio in an attempt to have sex with what he believed to be a 13-year-old girl, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Samuel E. Condo, Jr., 32, of Arlington, Texas, was sentenced to 188 months in prison by U.S. District Judge Benita Pearson. He pleaded guilty earlier this year to four counts: enticement, receipt and distribution of minors engaged in sexually explicit conduct, transportation of visual depictions of minors engaged in sexually explicit conduct and travel to engage in sexually explicit conduct.
From on or about October 20, 2014, through on or about October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly used facilities and means of interstate and foreign commerce, that is, a cell phone and a computer connected to the Internet, to attempt to persuade, induce, entice and coerce an individual who had not attained the age of 18 years, that is, a 13-year-old girl to engage in illegal sexual activity with him. He also knowingly distributed numerous computer files which files contained visual depictions of real minors engaged in sexually explicit conduct, according to court documents.
On October 24, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Condo knowingly transported numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. He also knowingly traveled in interstate commerce, from Texas to Ohio, for the purpose of engaging in illicit sexual conduct with another person, that is, a 13-year-old girl, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
Tax Defier Sentenced to Two Years in Prison for Failing to Pay Federal Taxes for More Than Seven YearsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of TAMI MAE MAY, 56, to two years in federal prison for failing to pay federal taxes for more than seven years. MAY pleaded guilty on June 9, 2014, to one count of obstruction of due administration of Internal Revenue laws. MAY was sentenced on August 4, 2015, before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, from 1998 through 2004, MAY failed to file any income tax returns for the excavating business she ran with her husband, despite that fact that the business earned substantial income during that time. When notified by the IRS in April 2005 that the business owed tax debt, penalties and interest, MAY embarked on an eight-year campaign of frivolous filings, in an effort to obstruct the administration of Internal Revenue laws.
According to the defendant’s guilty plea and documents filed in court, MAY filed a host of fake documents with the IRS, including a “zero income” tax return, Forms 1099-OID falsely claiming that her husband had made payments to various IRS Revenue Officers, falsely claiming that the Mays or their business had received “original issue discounts” and had “federal tax withheld” by various banks and credit card companies, and forms claiming that the Mays were not United States Citizens, but instead were permanent residents of the “Kingdom of Heaven.”
According to the defendant’s guilty plea and documents filed in court, MAY also made nonsensical tax-defier-scheme-related statements to the IRS, including that her social security number was her “corporate fiction’s” social security number, that her family’s business was a foreign trust of which she was the trustee, and that there is no such thing as money.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigations.
Assistant U.S. Attorney Kimberly A. Svendsen prosecuted the case.
Defendant Information:
TAMI MAE MAY, 56
Anoka, Minn.
Convicted:
- Obstruction of due administration of Internal Revenue laws, 1 count
Sentenced:
- 2 years in prison
- 1 year supervised release
- $192,495 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Seven Indicted for Unlawfully Obtaining Unemployment BenefitsRead the Press Release
St Louis, MO – Federal indictments were returned today against seven defendants who are accused of unlawfully obtaining unemployment benefits through the Missouri Division of Employment Security. In each case, the indictments allege that the defendants applied for and received unemployment benefits which they were ineligible to receive. In some cases, the defendants allegedly underreported their income in order to appear eligible for benefits to which they were not in fact entitled. In other cases, the defendants allegedly claimed they were available to work when they were incarcerated at the time they applied for benefits. In two cases, the defendants are alleged to have conspired with others in order to carry out their crimes. The fraudulent benefits obtained by the defendants are said to range from as little as $3,840 to as much as $24,821.
The defendants named in today’s indictments are identified as ROCKSANN COFFMAN, of St. Louis, Missouri; BELINDA GRIFFIN, of Florissant, Missouri; MARK DAVID McKAY, of St. Louis, Missouri; KIRA McLAUGHLIN, of St. Louis, Missouri; KELLI PRIOR, of Wright City, Missouri; KRISTOPHER PRIOR, of Wright City, Missouri; and BRYANT HENRY WATKINS, of Dallas, Texas.
If convicted, each count of theft of government property carries a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
he cases are being investigated by the Missouri Division of Employment Services, and in some cases the U.S. Department of Labor and U.S. Postal Service-Office of Inspector General. Assistant United States Attorney Richard E. Finneran is handling the cases for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Real Estate Investment Firm Owner Pleads Guilty to FraudRead the Press Release
PHILADELPHIA - Michael Goldner, 44, of Glen Mills, PA, pleaded guilty today to a wire fraud and tax evasion after bilking would-be investors. U.S. District Court Judge Gerald A. McHugh scheduled a sentencing hearing for November 16, 2015.
Goldner was an accountant who owned a real estate investment firm, Arcadia Capital Group, Inc., which he started in 2003 with three other people. Arcadia ceased operations in the 4th quarter of 2009 and was out of business since the first quarter of 2009. Prior to 2007 and continuing into 2009, Goldner solicited individuals to invest in various real estate investments. Goldner promised a promissory note to at least one victim which, he said, would provide for regular payments and “occasional payments on the side.” One victim invested $25,000 on July 25, 2008, via a wire from his self-directed IRA. That victim then received a promissory note. At the time of that investment, the Arcadia bank account was overdrawn. Immediately following that investment, Goldner repaid three earlier investors and made one payment to LG Financial, which held a mortgage on a property Goldner part owned. Records from the Arcadia bank account show that from 2007 until Goldner closed the account in 2009, nearly $10 million was withdrawn from the account with less than $1 million going toward possible real estate deals. The remaining funds went to Goldner, his associates, and prior investors.
Goldner also owned an interest in Settlement Funds, LLC, and handled the day to day business of the company. Records from the Settlement Funds LLC bank account, which Goldner used after closing the Arcadia account, through April 2010 show that Goldner used the majority of the funds in the account on himself, his associates, and prior investors.
Goldner also had three tax clients from whom he stole funds the clients gave him to forward to the IRS. The clients gave Goldner funds to pay their tax obligations to the IRS but, instead, Goldner used the funds for his personal and business expenses.
Goldner faces a maximum possible sentence of 25 years in prison, possible restitution to the victims of more than $6 million, a $200 special assessment, and up to three years of supervised release.
The case was investigated by Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney David J. Ignall.
Reading City Council President Admits Taking Bribe to Repeal Ethics LawRead the Press Release
PHILADELPHIA - Francisco Acosta, 39, of Reading, PA, pleaded guilty today to an information charging him with conspiracy to commit bribery offenses, announced United States Attorney Zane David Memeger. At the time of the offense and until this morning, Acosta was the President of Reading City Council.
Certain anti-corruption statutes were enacted in Reading, PA, to limit the influence of money on political candidates and public officials. Section 1012 of Reading’s Code of Ethics establishes limits on campaign contributions to candidates seeking public office in Reading and Section 1006(H) of the Code prohibits the awarding of “no-bid contracts” to donors who have given campaign contributions in excess of those limits. During the guilty plea hearing, Acosta admitted the following:
In the spring of 2015, Acosta conspired with a person identified as “Public Official #1” to repeal these restrictions before the May 19, 2015 primary election through a bribery scheme, in violation of federal criminal law. Public Official #1 was a Reading public official who had the power to sign into law ordinances that had been passed by City Council. Public Official #1 was also a candidate in the Democratic Party’s primary election, scheduled for May 19, 2015. Public Official #1 decided to offer Acosta an $1,800 “loan” to the campaign committee of Acosta’s ally ( “Public Official #2”), which would be “forgiven” upon Acosta successfully orchestrating a repeal of Sections 1012 and 1006(H). Acosta accepted the payment on April 10, 2015 and then, three days later, introduced legislation to eliminate certain restrictions in the Code of Ethics in accordance with Public Official #1’s wishes (“the repeal bill”). As agreed to by Public Official #1 and Acosta, the repeal bill would have repealed Section 1012 in its entirety, thereby eliminating the restrictions on campaign contributions and nullifying Section 1006(H)’s prohibition on awarding “no-bid contracts” to certain donors.
To conceal his participation in the scheme, Public Official #1 sought to finance any campaign contributions to Public Official #2 with funding from third parties. Public Official #1 also sought to offer Acosta additional funding for the campaign committee of Public Official #2 as a reward for Acosta successfully orchestrating the passage of the repeal bill, although only a single payment – an $1,800 check payable to the campaign of Public Official #2 (“the bribe check”) – was ever provided to Acosta. When Acosta took possession of the bribe check, he agreed that, in order to avoid scrutiny of his agreement with Public Official #1, neither Acosta nor Public Official #2 would deposit the bribe check until a later date.
Acosta attempted to persuade other members of City Council to pass the repeal bill before the primary election by falsely asserting that he was motivated solely by the best financial interests of Reading and by concealing that he had received the bribe check. Then, on April 21, 2015, Acosta made materially false statements to FBI agents who were investigating the bribery scheme. Acosta falsely denied that he had accepted a bribery offer from Public Official #1 and that he had ever possessed or received the bribe check. In fact, as Acosta well knew, he had previously agreed to Public Official #1’s bribery offer and still had possession of the bribe check at the time of his false statements to the agents.
Within 24 hours of his interview with FBI agents on April 21, 2015, Acosta took affirmative steps to withdraw from the conspiracy, all without alerting other members of the conspiracy of the FBI’s inquiry into this matter. Acosta then met with the government at his earliest opportunity in order to accept responsibility for his wrongdoing. Acosta subsequently absented himself from the vote on the repeal bill, which was defeated unanimously by the remaining members of Reading City Council.
“Elected officials have an obligation to provide their constituents with honest services,” said Memeger. “When officials sell their services, particularly to repeal anti-corruption legislation, as Acosta admitted here, they do tremendous damage to the integrity of our governmental system. This office remains committed to investigating and prosecuting public corruption at all levels of government.”
“When government officials agree to sell their services, they betray their constituents who rightfully expect high ethical standards,” said FBI Special Agent-in-Charge William F. Sweeney. “The FBI will continue to aggressively investigate allegations of public corruption, and work with our partners to ensure that those who violate their obligation to the public are held accountable.”
After accepting Acosta’s guilty plea, U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for November 18, 2015. Acosta faces a maximum possible sentence of five years in prison, a fine of up to $250,000, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Joe Khan and Nancy Beam Winter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pitt County Behavioral Health Businessman Pleads Guilty to Defrauding Medicaid After Threatening to Kill WitnessRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that yesterday in federal court, TERRY LAMONT SPELLER, 37, of Winterville, North Carolina, pleaded guilty to Health Care Fraud and Engaging in Monetary Transactions Involving Criminally Derived Property.
“Illegal schemes like this one waste tax dollars and divert funds that are supposed to go toward needed medical care. Our investigators and attorneys will continue to work closely with federal officials to fight health care fraud and recover the public’s money,” said North Carolina Attorney General Roy Cooper.
“Criminals such as Speller, who engage in healthcare fraud, are among the worst, enriching themselves at the expense of others,” said Thomas J. Holloman, Special Agent in Charge of Internal Revenue Service, Criminal Investigation. “IRS Criminal Investigation remains steadfast in our commitment to bring those that would engage in this type of criminal activity to justice.”
"Fraudulently billing for behavioral health services costs the Medicaid program millions of dollars each year and diverts precious resources from those who need it most," said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "The OIG and our law enforcement partners will continue to aggressively pursue these thieves to ensure they are held accountable."
The Criminal Information to which SPELLER pleaded guilty provides that between 2010 and 2015, TERRY LAMONT SPELLER was an individual doing business through various Outpatient Behavioral Health and Outpatient Health Service providers in Pitt County and surrounding areas. Through these providers, SPELLER recruited hundreds of Medicaid beneficiaries, mostly children, from various communities in Eastern North Carolina to receive alleged services compensable by Medicaid.
In 2010, North Carolina’s Division of Medical Assistance (DMA), which administers the Medicaid program in this state, began an investigation of one of SPELLER’s companies based upon allegations that the company was billing for services that were not actually rendered. When requested, SPELLER failed to provide records to support the services that were billed. As such, the company was suspended from further participation in Medicaid programs.
Although excluded from the Medicaid program, over the next several years SPELLER concocted various schemes to continue getting paid. The schemes included getting various other providers to bill the Medicaid program on his behalf and submitting a forged document to Medicaid in order for payments to be wired into a bank account controlled by SPELLER.
In total, SPELLER fraudulently caused in excess of $4 Million to be billed to Medicaid using another provider’s number for service not provided and caused the proceeds to be deposited into an account controlled by SPELLER. SPELLER used the proceeds of the false and fraudulent claims to fund various purchases, including a $20,000 check to purchase a Shelby Cobra automobile.
Prior to pleading guilty, SPELLER was arrested and detained for threatening to kill a witness if she spoke to law enforcement. SPELLER will remain detained until the time of his sentencing, which will occur later in 2015.
At sentencing, SPELLER faces up to 20 years in prison. The maximum term of imprisonment for Health Care Fraud is 10 years. The maximum term of imprisonment for Engaging in Transactions Using Fraudulent Proceeds is 10 years. SPELLER also faces up to 3 years of supervised release, $500,000 in fines, and an order of restitution for the full amount of the fraud.
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office.
Assistant United States Attorney William M. Gilmore of the Economic Crimes Division, and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, represent the United States.
Panama City Man Sentenced for Possessing Firearm as a Convicted FelonRead the Press Release
PANAMA CITY, FLORIDA –Sammie Lee Underwood III, 22, of Panama City, was sentenced to 120 months in prison for being a felon in possession of a loaded .380 caliber pistol. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2014, Panama City police officers were on patrol in the Glenwood neighborhood when Underwood, driving a white Chevrolet Tahoe, ran a stop sign. He then led the officers on a chase through the neighborhood. As officers finally approached Underwood’s still-moving vehicle, he jumped out and fled on foot. The driverless vehicle then collided with a residence on East 13th Court. Under the Tahoe’s driver seat, officers found the loaded firearm and baggies of crack cocaine, bath salts, and marijuana. Testimony from Florida Department of Law Enforcement Crime Laboratory analysts showed that DNA recovered from the firearm matched Underwood. Underwood was convicted in March 2015.
The case was investigated by the Panama City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorneys Gayle E. Littleton and Katy D. Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pair of Philadelphians Charged with Counterfeiting SEPTA TransPassesRead the Press Release
PHILADELPHIA – Mark Cooper, 35, of Philadelphia, PA, was charged by indictment, unsealed today, in a conspiracy involving more than 2,000 counterfeit monthly passes for Southeastern Pennsylvania Transportation Authority (SEPTA), announced United States Attorney Zane David Memeger. Cooper is charged with conspiracy to commit access device fraud and possession of access device making equipment. Kimberly Adams, 35, of Philadelphia, PA, is charged by separate information, also unsealed today.
According to the indictment, between August 2013 and June 2015, Cooper conspired with Adams to produce and sell counterfeit SEPTA monthly TransPasses, which allow passengers to board SEPTA buses, trolleys and subway trains. Once Cooper created the counterfeit passes, he gave them to Adams who then met customers, predominately City of Philadelphia employees, inside and outside of City Hall and elsewhere, and sold the counterfeit passes, which normally sell for $91, for approximately $50. Cooper and Adams then split the proceeds. It is alleged that between August 2013 and June 2015, the defendants counterfeited and sold in excess of 2,000 monthly passes.
“This office will not tolerate fraud involving valuable government property,” said Memeger. “Those who counterfeit SEPTA passes, as the defendant allegedly did here, will be prosecuted and face serious criminal penalties.”
“We’re not going to let city employees siphon money away from one of the region’s public agencies—especially not in City Hall of all places,” said Philadelphia Inspector General Kurland. “Our administrative investigation into other employees who were involved in this conspiracy is ongoing.”
If convicted of all charges, the defendants each face a statutory maximum possible sentence of 20 years in prison, a fine of up to $500,000, four years of supervised release, and a $200 special assessment.
The case was initiated by the City of Philadelphia Office of the Inspector General, jointly investigated with the FBI and the SEPTA Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Karen Marston.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Office on Violence Against Women Announces Online Resource Center for Institutions of Higher EducationRead the Press Release
The U.S. Department of Justice’s Office on Violence Against Women (OVW) today announced the launch of The Center for Changing Our Campus Culture (www.changingourcampus.org), a new comprehensive online clearinghouse on sexual assault, domestic violence, dating violence, and stalking on campus. This new website provides the latest information, materials and resources for campus administrators, faculty and staff, as well as campus and community law enforcement, victim service providers, students, parents and other key stakeholders to use to improve campus safety.
“The launch of this website reaffirms the department’s commitment to providing campuses with tools to develop and implement effective responses to sexual and dating violence on campus,” said Deputy Attorney General Sally Quillian Yates. “The department commends campus leaders for championing these issues and for their dedication to bringing about lasting changes on their campuses.”
Since the release of Not Alone: The First Report of the White House Task Force to Protect Students from Sexual Assault on Jan. 22, 2014, the Justice Department, in partnership with the Department of Education, has strengthened federal enforcement efforts and provided institutions of higher education with tools to help combat sexual assault and domestic violence on campus.
“Colleges and universities across the country are looking for resources to improve their response to sexual assault, domestic violence, dating violence and stalking on campus," said Principal Deputy Director Bea Hanson of the Office on Violence Against Women. "Visitors to the website will have access to cutting-edge tools, including sample policies, protocols, and best practices, that can be adapted and replicated on colleges and universities across the county."
Content for The Center for Changing Our Campus Culture website was provided by OVW and its Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence and Stalking on Campus Program technical assistance providers, in partnership with the U.S. Department of Education, the U.S. Department of Health and Human Services and the Centers for Disease Control and Prevention.
The center will continue to work collaboratively to update and maintain the website and will seek guidance and input from campus-based experts, campus communities, and grassroots groups committed to ending sexual assault, domestic violence, dating violence and stalking.
Office on Violence Against Women Announces Online Resource Center for Institutions of Higher EducationRead the Press Release
WASHINGTON – The U.S. Department of Justice’s Office on Violence Against Women (OVW) today announced the launch of The Center for Changing Our Campus Culture (www.changingourcampus.org), a new comprehensive online clearinghouse on sexual assault, domestic violence, dating violence, and stalking on campus. This new website provides the latest information, materials and resources for campus administrators, faculty and staff, as well as campus and community law enforcement, victim service providers, students, parents and other key stakeholders to use to improve campus safety.
“The launch of this website reaffirms the department’s commitment to providing campuses with tools to develop and implement effective responses to sexual and dating violence on campus,” said Deputy Attorney General Sally Quillian Yates. “The department commends campus leaders for championing these issues and for their dedication to bringing about lasting changes on their campuses.”
Since the release of Not Alone: The First Report of the White House Task Force to Protect Students from Sexual Assault on Jan. 22, 2014, the Justice Department, in partnership with the Department of Education, has strengthened federal enforcement efforts and provided institutions of higher education with tools to help combat sexual assault and domestic violence on campus.
“Colleges and universities across the country are looking for resources to improve their response to sexual assault, domestic violence, dating violence and stalking on campus," said Principal Deputy Director Bea Hanson of the Office on Violence Against Women. "Visitors to the website will have access to cutting-edge tools, including sample policies, protocols, and best practices, that can be adapted and replicated on colleges and universities across the county."
Content for The Center for Changing Our Campus Culture website was provided by OVW and its Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence and Stalking on Campus Program technical assistance providers, in partnership with the U.S. Department of Education, the U.S. Department of Health and Human Services and the Centers for Disease Control and Prevention.
The center will continue to work collaboratively to update and maintain the website and will seek guidance and input from campus-based experts, campus communities, and grassroots groups committed to ending sexual assault, domestic violence, dating violence and stalking.
New Orleans Man Sentenced for Maliciously Conveying False InformationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAHVAR HOOKS, age 31, of New Orleans, was sentenced today after previously pleading guilty a one-count superseding Indictment charging him with maliciously conveying false information in violation of Title 18, United States Code, Section 844(e).
U.S. District Judge Lance Africk sentenced HOOKS to time served and a three-year term of supervised release. HOOKS has been in federal custody since his arrest on August 20, 2013. According to court records, from August 12, 2013 through August 19, 2013, HOOKS made in excess of forty telephonic bomb threats. Victims of these threatening phone calls include the Orleans Parish Criminal District Court and the New Orleans Municipal/Traffic Court along with schools, hotels, casinos, and other government buildings. In an interview with officers of the New Orleans Police Department, HOOKS admitted to making the telephone calls.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Gregory M. Kennedy was in charge of the prosecution.
New Iberia man sentenced to 30 years in prison for producing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a New Iberia man was sentenced to 360 months in prison for videoing boys over the internet engaging in sexual activity.
Raymond F. Doyle III, 41, of New Iberia, La., was sentenced by U.S. District Judge Richard T. Haik on one count of producing child pornography. He was also sentenced to a lifetime of supervised release and ordered to pay $735.95 restitution. According to evidence presented at the April 16, 2015 guilty plea, Doyle began communicating with numerous boys in the summer of 2011 using the internet and the video streaming internet service Skype. Doyle caused one of the boys to engage in sex acts while being videoed using Skype. A search of Doyle’s home computer revealed evidence that Doyle had contact with more than 60 boys. In most cases, Doyle pretended to be a female in order to encourage the boys to communicate with him.
“This case shows that exploitation of children has severe consequences for those who engage in these depraved activities,” Finley stated. “This sentence will help keep this defendant from harming more children. I also want to thank the prosecutor and law enforcement agencies for their help in securing this prosecution. Protecting children from predators requires cooperation among law enforcement agencies.”
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
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.
New Haven Man Sentenced to 37 Months in Federal Prison for Illegally Possessing Semi-Automatic RifleRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY REID, 26, of New Haven, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on October 20, 2014, REID was arrested on state narcotics warrants. On that date, New Haven Police officers searched a residence where REID had stayed the prior night and seized a Global Machine and Tool, model M70AB2 7.62 x 39 millimeter semi-automatic rifle. The firearm was loaded with 35 rounds of ammunition. The search also revealed approximately 147 grams of suspected marijuana.
REID has admitted that he possessed the firearm for approximately three weeks.
REID’s criminal history includes felony convictions for stealing a firearm and possession with intent to distribute a controlled substance. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
REID has been detained since his arrest. On April 30, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. This case was prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Nelson.
Navajo Man Pleads Guilty to Discharging Firearm While Assaulting Four Indian Women and Two ChildrenRead the Press Release
ALBUQUERQUE – Jeffrey J. Franklin, 31, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today in Albuquerque, N.M., to violating the federal firearms laws by discharging a firearm during an act of violence. Under the terms of his plea agreement, Franklin will be sentenced to ten years in federal prison.
Franklin was arrested in Aug. 2014, on a criminal complaint charging him with assault with a dangerous weapon and abusing a child by placing the child in a situation that could endanger the child’s life. The complaint alleged that Franklin committed these crimes on Aug. 9, 2014, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, on Aug. 9, 2014, Franklin assaulted four Indian women and two Indian children by firing shots while inside the residence of one of the victims and by firing shots at the victims’ vehicles. Two children were inside one of the vehicles when Franklin shot at the vehicle.
Franklin was subsequently indicted on Nov. 19, 2014, and charged with four counts of assault with a dangerous weapon with intent to do bodily harm, negligently placing minors in a situation that endangered the children’s health, and two counts of using and discharging a firearm during and in relation to a crime of violence.
During today’s proceedings, Franklin pled guilty to one count of using and discharging a firearm during and in relation to a crime of violence.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback are prosecuting the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Mo’ Money Tax Preparers Charged in Tax Return SchemeRead the Press Release
RICHMOND, Va. – Erik Pittman and Jeremy Blanchard, both 35 and from Memphis, Tennessee, and Corey Taylor, 25, of Richmond, were indicted by a federal grand jury today on charges of conspiracy to defraud the United States and aiding in the preparation of 19 false and fraudulent U.S. individual tax returns.
According to the indictment, Pittman, Blanchard and Taylor held themselves out as tax preparers for tax year 2011, operating three locations of a business known as Mo’ Money Taxes. The indictment alleges that the three men, along with others, created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity credit, to claim tax refunds that customers were not entitled to receive.
If convicted, Pittman faces a maximum penalty of 23 years in prison; Blanchard 29 years; and Taylor 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Caroline Ciraolo, Acting Assistant Attorney General for the Department of Justice Tax Division; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’S Richmond Field Office; and David G. Bowers, Acting Inspector in Charge of the U.S. Postal Inspection Service (USPIS), made the announcement after the indictment was returned by the grand jury.
This case was investigated by IRS-CI, the FBI’s Richmond Field Office, and the USPIS. Assistant U.S. Attorney Stephen W. Miller, and Department of Justice Attorneys Todd Kostyshak and Kevin Sweeney are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-196.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Michigan Man Sentenced to 18 Months in Prison for Transporting Oxycodone from Detroit to PittsburghRead the Press Release
PITTSBURGH - A Michigan man has been sentenced in federal court to 18 months imprisonment and three years supervised release on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Lamont Whitfield, 34.
According to information presented to the court, Whitfield was responsible for transporting 1,326 Oxycodone 30 mg pills from Detroit to Allegheny County in June and July of 2014.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Federal Bureau of Investigation, Pennsylvania Attorney General’s Office, Pennsylvania State Police, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Whitfield.
Metairie Man Pleads Guilty to Recording Movies in a Local Theater and Criminal Infringement of a CopyrightRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK HOLLOWAY, age 31, of Marrero, pled guilty today to both counts of a two-count Bill of Information charging him with unauthorized recording of a motion picture and criminal infringement of a copyright.
According to court documents, in 2014, HOLLOWAY used a digital camcorder to record approximately ten first-run motion pictures at the AMC Westbank Palace, located in Harvey, including When the Game Stands Tall and The Equalizer. HOLLOWAY subsequently duplicated and sold copies of some or all of the motion pictures. Additionally, HOLLOWAY manufactured and sold CDs and DVDs containing copyrighted musical works and motion pictures out from his business, Gold Teeth Kingz, located in Harvey. Specifically, during the execution of a search warrant at Gold Teeth Kingz in early January 2015, law enforcement authorities found and seized approximately 2,932 pirated DVDs containing copyrighted motion pictures, including When the Game Stands Tall and American Sniper, and 749 pirated CDs containing copyrighted musical works, including “Kingdom Come,” by Jay-Z and “Dangerously in Love,” by Beyoncé.
HOLLOWAY faces a maximum term of imprisonment of not more than three years as to Count 1 and five years as to Count 2, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Kurt D. Engelhardt set sentencing for November 4, 2015.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Member of Young Melph Mafia (YMM) Neighborhood Gang Sentenced to 18 Years for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RUBEN GEIGER, age 22, a resident of New Orleans, was sentenced today for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”
U.S. District Judge Kurt D. Engelhardt sentenced GEIGER to 220 months imprisonment, to be followed by four years of supervised release.
GEIGER was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, GEIGER and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
McCall Woman Sentenced for Shipping a Loaded Gun in MailRead the Press Release
BOISE – Tami Dee Bachart, 47, of McCall, Idaho, was sentenced yesterday to one year of probation for mailing injurious articles and causing a firearm to be present in a federal facility, U.S. Attorney Wendy J. Olson announced. As part of her sentence, Chief U.S. District Judge B. Lynn Winmill ordered Bachart to serve 200 hours of community service, pay $3,397.28 in restitution and pay a $1,000 fine. Bachart pleaded guilty to the crimes on May 12, 2015.
According to the plea agreement, on December 2, 2014, Bachart deposited a package containing a handgun and ammunition into the mail at the United States Postal Service in McCall, Idaho. The package was addressed to a location in Windsor, Connecticut. The U.S. Postal Service transported the package for delivery. While in route to Connecticut, the package arrived at a processing and distribution center in Springfield, Massachusetts. When a U.S. Postal Service employee picked up the package for further distribution, the handgun, which was a loaded Ruger Blackhawk .357 revolver, discharged while in the hands of the employee. The employee was not seriously injured, but sought medical attention due to ringing ears and stinging hands. When the police officers opened the package, they discovered the loaded revolver with additional ammunition and other items. U.S. Postal Inspectors and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives contacted the intended recipient in Connecticut who confirmed Bachart mailed the package. A U.S. Postal Inspector and a Police Officer with McCall Police Department later interviewed Bachart who admitted to sending the package containing the revolver. Bachart denied knowing the firearm was loaded and stated she did not intend to hurt anyone.
During sentencing, Judge Winmill noted that Bachart did not intend to hurt anyone and made a mistake. However, he cautioned her about the tragic loss of life that could have occurred. Federal law prohibits the mailing of concealable firearms, except under limited circumstances as prescribed in the U.S. Postal Service regulations. Federal law also prohibits the mailing of ammunition.
This case was investigated by United States Postal Service Inspection Service in Boise, Idaho, Springfield, Massachusetts, and Windsor, Connecticut; Bureau of Alcohol, Tobacco, Firearms and Explosives; McCall Police Department; and Springfield Police Department.
Massachusetts Man Sentenced on Misbranding ChargesRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced that Mohamed Alam, 62, of North Andover, Massachusetts, was sentenced today to one year probation in U.S. District Court after pleading guilty to Causing Misbranded Drugs to be Introduced into Interstate Commerce. Alam was also ordered to pay a $1000 fine and a money forfeiture of $18,737.00.
On October 3, 2012, the North Andover, Massachusetts Police Department responded to a call for a female having seizures due to a possible drug overdose. The female was interviewed at the Lawrence General Hospital and stated that she had been using “Crazy Monkey” which she purchased at the Richdale convenience store located at 4 Main St., North Andover, Massachusetts. “Crazy Monkey” is a synthetic cannabinoid.
The North Andover Police Department and DEA conducted an investigation using a confidential informant (CI) who purchased a variety of the “Monkey” products, all synthetic cannabinoids, from the convenience store between October 9, 2012 through June 20, 2013. On June 26, 2013, a federal search warrant was executed at the Richdale convenience store. The agents seized several packages of the “Monkey” product.
The synthetic cannabinoids were misbranded in that: (1) the product was sold as potpourri when in fact the product was intended for use as a drug for human consumption; (2) its label, in package form, failed to include the name and address of the manufacturer, packer, or distributor; (3) its labeling did not bear adequate directions for use; and (4) its labeling did not bear such adequate warnings against use in those pathological conditions and by children.
“Our office will continue to work with local, state and federal law enforcement to combat the sale of synthetic controlled substances,” said Acting United States Attorney Donald Feith. “The sale of these substances has been banned in New Hampshire, and we will continue to fight against the illegal distribution of these substances.”
“The North Andover Police Department appreciates the United States Attorney’s Office and DEA working with local law enforcement to combat our current problems with synthetic drugs and opiates. Our School Resource officers are educating students of these illicit drugs and their unknown ingredients that can cause traumatic overdose and other medical issues. We will continue to work tirelessly with our law enforcement and community partners to stem the flow of these substances that harm our citizens,” stated Paul J. Gallagher, Chief of Police, North Andover Police Department.
The case was investigated by the Drug Enforcement Administration (DEA) and the North Andover Police Department. This case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Massachusetts Businessman Indicted for Tax FraudRead the Press Release
The owner of a heating, ventilation and air conditioning (HVAC) installation and repair company from West Bridgewater, Massachusetts, was arraigned today in U.S. District Court in Boston on an indictment filed on July 23 charging him with one count of tax evasion, five counts of filing false federal income tax returns and four counts of failing to file tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Keith A. Eaton failed to file tax returns for tax years 1998 through 2003. In 2004, the Internal Revenue Service (IRS) assessed him with approximately $280,000 in taxes, interest and penalties, which he failed to pay. Eaton also filed delinquent false tax returns for tax years 2000 through 2008, on which he failed to report the income that he had earned working for another HVAC company located in Brockton, Massachusetts. Eaton allegedly attached false IRS Forms 1099, Miscellaneous Income, to some of the false tax returns that he submitted. The Forms 1099 purportedly reflected the compensation he had received from companies for whom he had performed work, but Eaton altered the forms to falsely show that he had not received compensation.
The indictment further alleges that in 2008, Eaton began operating his own HVAC company, Eaton Mechanical LLC. In order to obstruct the IRS from collecting taxes that Eaton owed, he caused the HVAC company to be registered in the name of a nominee and caused the nominee to be listed as the signatory on the business bank account. To further conceal his financial transactions from the IRS, Eaton used cash to pay his personal expenses.
If convicted, Eaton faces a statutory maximum sentence of five years in prison for tax evasion, a statutory maximum sentence of three years in prison for each count of filing a false return and a statutory maximum sentence of one year in prison for failing to file a return. He also faces substantial monetary penalties, including fines and restitution to the IRS. His arraignment is scheduled for Aug. 28 at 10:00 a.m. in Boston.
Acting Assistant Attorney General Ciraolo commended the special agents of the IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Kenneth C. Vert and Brittney N. Campbell of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the District of Massachusetts for their substantial assistance.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Marion man indicted for distributing heroin and fentanyl that resulted in overdose deathRead the Press Release
A nine-count federal indictment was filed charging a Marion man with selling heroin and fentanyl that resulted in an overdose death, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and U.S. Drug Enforcement Administration’s Special Agent in Charge Joseph P. Reagan.
Eric L. Creagh, 32, was indicted on one count of distribution of heroin and fentanyl that resulted in death, three counts of distribution of heroin and fentanyl, three counts of distribution of heroin and two counts of being a felon in possession of firearms.
Creagh is accused of selling heroin and fentanyl on May 22 that resulted in the death of Christopher Wolford. He is also charged with possessing more than a kilogram of a mixture of heroin and fentanyl, as well as selling heroin and fentanyl at various dates in May and June 2015. Creagh is also accused of possessing a Ruger .380-caliber pistol and a Heritage .22-caliber revolver, despite a 2008 conviction for felonious assault.
“This defendant is charged with selling the blue-drop heroin that caused so many overdoses, heartache and even death,” Dettelbach said. “The DEA is to be commended for working with the local police to protect the citizens of Marion. This case should serve as yet another reminder that heroin and fentanyl should be avoided. Trying heroin is not only a mistake -- it may be the last mistake a person ever makes.”
Reagan said: “We have made it a priority to investigate the distribution of narcotics that result in death. Today’s charges send a strong message to all narcotic traffickers that they will face real consequences, for the harm that they inflict on the user and society. The level of cooperation by all of the law enforcement agencies in this investigation has been extraordinary and serves as a model for the future.”
According to a federal affidavit filed in the case earlier this year:
A confidential informant purchased more than 20 grams of "blue drop" heroin from Creagh on five separate occasions between May 30 and June 8.
Members of the Drug Enforcement Administration, the Marion Metro Drug Enforcement Unit (MARMET), the Marion Police Department and the Marion County Sheriff's Office executed search warrants at two homes owned by Creagh on June 10. Creagh was arrested and law enforcement agents recovered two firearms, approximately one kilogram of a heroin/fentantyl mixture, blue fabric dye, a face mask with a filtration system and rubber gloves, two hydraulic presses and approximately $45,000 in cash.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Thomas Weldon following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Local Daycare Worker Arrested for Allegedly Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old woman from Corpus Christi has been taken into custody upon the filing of a criminal complaint alleging she produced and distributed child pornography, announced U.S. Attorney Kenneth Magidson. The complaint alleges Christina Cortez produced the graphic images while working at a daycare facility in Corpus Christi and further distributed them to Matthew Harbin, 29, of Brownsville. Harbin is also charged in the complaint.
Cortez is expected to make her initial appearance before U.S. Magistrate Judge Jason Libby in Corpus Christi at 2:00 p.m. today.
Harbin is currently in state custody on related charges and is expected to be transferred to federal custody and make his initial appearance in the near future.
According to the criminal complaint, the case began after Harbin was identified as providing images to an undercover officer in England. Using the email address [email protected], Harbin allegedly first provided three photos of a child clothed and not sexually posed, but that appeared to be taken at a daycare facility. The complaint alleges that he stated he had more pictures, wanted to trade and asked the person if they had a daughter and how young they were “in to.” Harbin later allegedly sent five more pictures of what appears to be the same female child, but that were sexually explicit in nature. One image depicts the child laying down on a blue mat with her dress lifted and her lower body exposed, according to the charges. Other images allegedly depict an adult female’s hand making contact with a child’s private area.
Further investigation revealed Harbin had previously received the images from Cortez in July 2014, according to the complaint. In their communications, Cortez claimed to work at a daycare facility where she allegedly obtained the images. Cortez allegedly sent images of the same female child involved in sexually explicit conduct. The child’s genitals appear to be the focus of all three of the aforementioned images, according to the complaint, one of which includes the child fondling herself.
In their communications, both Harbin and Cortez allegedly indicate a desire to engage with children. During one conversation, the complaint alleges Cortez told Harbin “I would love to watch us with her. 2 & half.”
If convicted of the production charges, both face a minimum of 15 and up to 30 years in federal prison, while the distribution of child pornography carries a minimum of five and up to 20 years of imprisonment.
The charges are the result of an investigation by Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Laplace Men Plead Guilty to Fraudulent Claims for Oil Spill CompensationRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that HARDELL MACK, age 43, and MICHEGEL BUTLER, age 40, residents of LaPlace, each pled guilty today to one count of conspiracy to commit wire fraud relating to fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (“GCCF”), for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, beginning in or about September 2010, MACK and BUTLER recruited claimants, requested their personal information, and submitted or caused to be submitted fraudulent GCCF claim forms generated online and transmitted to the GCCF falsely stating that the claimants worked as non-owner captain/deckhands on a shrimp boat in Venice, Louisiana, and suffered economic loss. Based on the fraudulent documentation, the GCCF issued approximately $65,300 to undeserving individuals. MACK and BUTLER shared in the claims proceeds.
MACK and BUTLER each face a maximum term of imprisonment of five years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment. MACK owes restitution in the amount of $36,500, and BUTLER owes restitution in the amount of $28,800. U.S. District Judge Sarah S. Vance set sentencing for December 16, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The United States Attorney’s Office for the Eastern District of Louisiana praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of the prosecution.
Kentucky Resident Pleads Guilty in Manhattan Federal Court to Hiding Hundreds of Thousands of Dollars in Secret Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PETER CANALE, a United States Citizen and resident of Jamestown, Kentucky, pled guilty today to willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) with the Internal Revenue Service (“IRS”) regarding secret bank accounts that he maintained and controlled in Switzerland. CANALE maintained his undeclared accounts at multiple different Swiss banks for approximately ten years, from 2000 through 2010. During that time, CANALE’s undeclared assets reached a high value of over $780,000. CANALE entered his guilty plea before U.S. District Judge Katherine B. Forrest.
According to the superseding Information filed in Manhattan federal court, other court documents, and statements made in connection with CANALE’s guilty plea:
Beginning in the early 1990s, a relative of CANALE (the “Relative”) maintained an undeclared offshore bank account at a predecessor firm of the Swiss bank UBS AG. Upon the Relative’s death in July 2000, CANALE met in Manhattan with two Swiss bankers, Hans Thomann and Beda Singenberger, and discussed the continued maintenance of the assets that CANALE and his brother, Michael Canale, had inherited from the Relative. They agreed that Thomann, working with Singenberger, would continue to maintain the assets in an undeclared bank account in Switzerland for the benefit of CANALE and Michael Canale. Later, in July 2005, with the assistance of Singenberger, CANALE opened an undeclared account at Wegelin & Co. (“Wegelin”), a Swiss private bank. CANALE’s undeclared account at Wegelin was opened in the name of a sham foundation organized under the laws of Liechtenstein, called the Janara Foundation. CANALE, however, remained the beneficial owner of the assets in the Janara Foundation account. As of December 31, 2009, the Janara Foundation account at Wegelin held assets valued at approximately $788,920.
In May 2010, Singenberger, acting under the authority given to him by CANALE, opened an undeclared bank account in the name of the Janara Foundation at another Swiss private bank (“Swiss Bank A”), and transferred the assets from the Janara Foundation account at Wegelin to the Janara Foundation account at Swiss Bank A. As of October 31, 2010, the Janara Foundation bank account at Swiss Bank A, of which CANALE was the beneficial owner, held assets valued at approximately $718,143.
As charged in the superseding Information, for each of the calendar years from 2007 through 2010, CANALE was required, but failed, to file FBARs with the IRS disclosing his signatory or other authority over the Janara Foundation accounts held at Wegelin and Swiss Bank A, which had an aggregate value of more than $10,000 during each of these years. For each of the calendar years from 2007 through 2010, CANALE also filed false Forms 1040 with the IRS, in which he failed to report as income the dividends, interest, and other income received by him from the Janara Foundation accounts at Wegelin and Swiss Bank A.
* * *
CANALE, 62, faces a maximum sentence of five years in prison. As part of his plea, CANALE has agreed to pay a civil penalty of $394,460, file amended tax returns, and pay back taxes of $106,820. He is scheduled to be sentenced by Judge Forrest on December 3, 2015 at 1:00 p.m. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the IRS-CI in the investigation. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Jorge Almonte (of the Tax Division) and Assistant United States Attorney Sarah E. Paul are in charge of the prosecution.
Kenneth Stephen Fagin, Jr. and Terry Bruce Tate Sentenced to Serve 30 Months in Prison for Illegally Excavating Civil War Artifacts from Public LandsRead the Press Release
CHATTANOOGA, Tenn. - Kenneth Stephen Fagin, Jr., 39, of South Pittsburgh, Tenn., and Terry Bruce Tate, 61, of Manchester, Tenn., were sentenced on July 30, 2015, by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 30 months in federal prison. Fagin was ordered to pay $22,463.59 in restitution to the Tennessee Valley Authority (TVA) and the National Park Service to cover the cost of restoration and repair to the sites. Tate was ordered to pay $21,619.59 in restitution to the TVA. Upon their release from prison, Fagin and Tate will each serve a one-year term of supervised release.
Fagin and Tate pleaded guilty in February 2015 to multiple counts of violating the Archaeological Resources Protection Act (ARPA), including violations in the Eastern District of Tennessee, Northern District of Alabama, and Western District of Tennessee. ARPA first became law in 1979 as a way to protect against the loss and destruction of archaeological resources found on public and Indian lands that are an “irreplaceable part of the nation’s heritage.”
From September 2007 to July 2011, Fagin, Tate and others excavated Civil War era artifacts from the bottom of Fort McCook, also known as Battle Creek, which is located on TVA property. Specifically, Fagin, Tate and others recovered Civil War Hotchkiss shells, which are pieces of artillery used during the Civil War. Fagin and Tate did not have permits as required under the ARPA nor did they have authority from TVA or any other entity to excavate artifacts from Battle Creek.
In August 2009, Fagin and Tate also excavated Civil War era U-rails from public lands in Bridgeport, Alabama. In March 2010, Fagin and Tate transported and delivered a counterfeit “Sherman Bow-Tie” that was made from Civil War era U-rails that Fagin and Tate excavated from public lands in Bridgeport, Alabama, without permission or authorization.
In August 2010, Fagin also excavated Civil War era artifacts from Shiloh National Military Park, including a .57 cal. three-ring rifle bullet; five fired three-ring rifle bullets and Schenkl artillery shell fragments. Fagin had no permit or authorization from the National Park Service to excavate artifacts from Shiloh National Military Park.
Agencies involved in this investigation included TVA and the National Park Service. Anne-Marie Svolto, Assistant U.S. Attorney represented the United States.
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Justice Department Settles Citizenship Discrimination Claim Against City of Eugene, OregonRead the Press Release
The Justice Department announced today that it has reached an agreement with the city of Eugene, Oregon, to resolve allegations that the city violated the anti-discrimination provision of the Immigration and Nationality Act (INA). The city of Eugene is the second largest city in the state of Oregon.
The Justice Department’s investigation found that the city of Eugene improperly restricted law enforcement positions to U.S. citizens at the time of hire, even though no law, regulation, executive order or government contract authorized such a restriction. The investigation revealed that the city of Eugene asked police officer applicants about their citizenship status with the intent to exclude any applicant who was not a U.S. citizen at the time of hire. The INA’s anti-discrimination provision prohibits employers from limiting jobs to U.S. citizens except where the employer is required to do so by law, regulation, executive order, or government contract.
Under the settlement agreement, the city of Eugene must pay a civil penalty, train its employees about the anti-discrimination provision of the INA and be subject to monitoring by the Justice Department for a period of three years.
“The Civil Rights Division is committed to ensuring that individuals who are authorized to work in the United States do not face unlawful discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Civil Rights Division commends the city of Eugene for cooperating with the Justice Department and taking swift remedial action to address the situation.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination in hiring, firing, or recruitment or referral for a fee based on an individual’s citizenship, immigration status, or national origin. The case was handled by OSC Trial Attorney Pablo A. Godoy.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Reaches Agreement with Los Angeles County to Implement Sweeping Reforms on Mental Health Care and Use of Force Throughout the County Jail SystemRead the Press Release
The Justice Department has reached a comprehensive settlement agreement with the county of Los Angeles and the Los Angeles County Sheriff to protect prisoners from serious suicide risks and excessive force in the Los Angeles County Jails, announced Deputy Assistant Attorney General Mark J. Kappelhoff of the Civil Rights Division and U.S. Attorney Eileen M. Decker of the Central District of California. The settlement agreement was filed simultaneously with a complaint this morning alleging a pattern or practice of inadequate mental health care and excessive force at the jails in violation of prisoners’ federal constitutional rights. The Justice Department, together with the county and the Sheriff, has requested that the District Court enter the settlement agreement as an order to bring court oversight to the reforms, to ensure that the reforms are implemented fully and transparently, and to strengthen public confidence in the jails.
Today’s settlement resolves claims stemming from the Justice Department’s long-standing civil investigation into mental health care at the jails, which found a pattern of constitutionally deficient mental health care for prisoners, including inadequate suicide prevention practices. In addition, the settlement agreement includes remedial measures to address a separate civil investigation into use of force by jails staff. The Justice Department’s investigations involved an in-depth review of thousands of pages of documents and other records, on-site visits and interviews with numerous jails staff members, prisoners and others. The Justice Department was assisted by subject matter experts in the fields of mental health care, suicide prevention and correctional practices. The county and the Sheriff cooperated with the civil investigations and have begun to implement many of the negotiated reforms in the settlement agreement, which was negotiated by attorneys in the Justice Department’s Civil Rights Division and the U. S. Attorney’s Office for the Central District of California.
“This historic settlement represents a renewed commitment by the county and Sheriff McDonnell to provide constitutionally adequate care for prisoners with serious mental illness,” said Deputy Assistant Attorney General Kappelhoff. “The agreement also puts in place a structure that will help turn around a persistent culture in which the use of excessive force on prisoners was sometimes tolerated. I want to thank the sheriff and county for their cooperation and leadership. Their efforts are critical to the long-term success of this agreement.”
“The Justice Department will continue to vigorously protect the federal civil rights of all individuals, including those who are imprisoned and who must depend on jail officials for their most basic needs and safety,” said U.S. Attorney Decker. “The settlement agreement avoids protracted litigation and provides a blue print for durable reform that will foster continued collaboration among sheriff deputies, healthcare professionals and other stakeholders. We commend the county and Sheriff McDonnell for their cooperation and for their commitment to make this historic settlement agreement possible.”
Under the settlement agreement filed today, the county and the Sheriff have agreed to implement comprehensive reforms to ensure constitutional conditions in the jails and restore public trust. The settlement agreement will be court-enforceable once approved by the District Court and will be overseen by an independent monitor and a team of mental health and corrections experts. The settlement agreement is designed to prevent and respond more effectively to suicides and self-inflicted injuries through measures that include:
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additional steps to recognize, assess and treat prisoners with mental illness, from intake to discharge;
-
significant new training on crisis intervention and interacting with prisoners with mental illness for new and existing custody staff;
-
improved documentation in prisoners’ medical and mental health records to ensure continuity of care;
-
improved communication between custody and mental health staff and increased supervision of mentally ill and suicidal prisoners;
-
steps to mitigate suicide risks within the jails;
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increased access to out-of-cell time for mentally ill prisoners; and
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improved investigation and critical self-analysis of suicides, suicide attempts and other critical events.
With respect to use of force, the settlement agreement expands critical reforms agreed to by the county and the Sheriff in Rosas v. McDonnell to cover all facilities within the jails system. These reforms include:
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enhanced leadership and executive staff engagement;
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significant revisions to use-of-force policies, which should significantly reduce the use of excessive force, with added protections for use of force against prisoners with mental illness;
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enhanced training for custody and mental health staff;
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enhanced data collection and analysis;
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enhanced accountability measures, including use-of-force reporting, use-of-force reviews and discipline; and
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enhanced grievance procedures.
The Justice Department’s investigation was originally opened in 1996, under the Civil Rights of Institutionalized Persons Act (CRIPA). The Justice Department found constitutional deficiencies in mental health care, suicide prevention and the use of excessive force against prisoners with mental illness. In 2002, the Justice Department entered into a memorandum of agreement with the county and the Sheriff to address these concerns. Despite considerable progress over the years of monitoring the memorandum of agreement, the Justice Department concluded in 2014 that the jails were failing to provide adequate mental health care, including suicide prevention, and that conditions under which prisoners with mental illness were housed exacerbated the risk of suicide.
In addition, in 2013, the Justice Department initiated a separate civil investigation into allegations of use of excessive force by jails staff under both CRIPA and the Violent Crime Control and Law Enforcement Act of 1994. While the use of force investigation was ongoing, the county and the Sheriff settled, the Rosas v. McDonnell class-action lawsuit, which alleged excessive force by jails deputies in three downtown facilities. The settlement agreement incorporates all of the reforms in Rosas and extends them to all jails facilities to cover prisoners throughout the jails system.
The civil investigations were conducted by attorneys and staff from the Civil Rights Division’s Special Litigation Section and the Civil Division of the U. S. Attorney’s Office for the Central District of California.
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Justice Department Reaches Agreement with Los Angeles County to Implement Sweeping Reforms on Mental Health Care and Use of Force throughout the County Jail SystemRead the Press Release
LOS ANGELES – The Justice Department has reached a comprehensive settlement agreement with the County of Los Angeles and the Los Angeles County Sheriff to protect prisoners from serious suicide risks and excessive force in the Los Angeles County jails, United States Attorney Eileen M. Decker and Deputy Assistant Attorney General Mark J. Kappelhoff announced today.
The settlement agreement was filed this morning, along with a complaint that alleges a pattern or practice of inadequate mental health care and excessive force at the jails in violation of prisoners’ federal constitutional rights. The Justice Department, together with the county and the Sheriff, has requested that the District Court enter the settlement agreement as an order to bring court oversight to the reforms, to ensure that the reforms are implemented fully and transparently, and to strengthen public confidence in the jails.
Today’s settlement resolves claims stemming from the Justice Department’s long-standing civil investigation into mental health care at the jails, which found a pattern of constitutionally deficient mental health care for prisoners, including inadequate suicide prevention practices. In addition, the settlement agreement includes remedial measures to address a separate civil investigation into use of force by jails staff.
The Justice Department’s investigations involved an in-depth review of thousands of pages of documents and other records, on-site visits and interviews with numerous jails staff members, prisoners and others. The Justice Department was assisted by subject matter experts in the fields of mental health care, suicide prevention and correctional practices.
The County and the Sheriff cooperated with the civil investigations and have begun to implement many of the negotiated reforms in the settlement agreement, which was negotiated by attorneys with the United States Attorney’s Office and the Justice Department’s Civil Rights Division.
“The Justice Department will continue to vigorously protect the federal civil rights of all individuals, including those who are imprisoned and who must depend on jail officials for their most basic needs and safety,” said United States Attorney Decker. “The settlement agreement avoids protracted litigation and provides a blue print for durable reform that will foster continued collaboration among sheriff deputies, healthcare professionals and other stakeholders. We commend the County and Sheriff McDonnell for their cooperation and for their commitment to make this historic settlement agreement possible.”
“This historic settlement represents a renewed commitment by the county and Sheriff McDonnell to provide constitutionally adequate care for prisoners with serious mental illness,” said Deputy Assistant Attorney General Kappelhoff. “The agreement also puts in place a structure that will help turn around a persistent culture in which the use of excessive force on prisoners was sometimes tolerated. I want to thank the sheriff and county for their cooperation and leadership. Their efforts are critical to the long-term success of this agreement.”
Under the settlement agreement filed today, the County and the Sheriff have agreed to implement comprehensive reforms to ensure constitutional conditions in the jails and restore public trust. The settlement agreement will be court-enforceable once approved by the District Court and will be overseen by an independent monitor and a team of mental health and corrections experts. The settlement agreement is designed to prevent and respond more effectively to suicides and self-inflicted injuries through measures that include:
• additional steps to recognize, assess and treat prisoners with mental illness, from intake to discharge;
• significant new training on crisis intervention and interacting with prisoners with mental illness for new and existing custody staff;
• improved documentation in prisoners’ medical and mental health records to ensure continuity of care;
• improved communication between custody and mental health staff and increased supervision of mentally ill and suicidal prisoners;
• steps to mitigate suicide risks within the jails;
• increased access to out-of-cell time for mentally ill prisoners; and
• improved investigation and critical self-analysis of suicides, suicide attempts and other critical events.
With respect to use of force, the settlement agreement expands critical reforms agreed to by the County and the Sheriff in Rosas v. McDonnell to cover all facilities within the jail system. These reforms include:
• enhanced leadership and executive staff engagement;
• significant revisions to use-of-force policies, which should significantly reduce the use of excessive force, with added protections for use of force against prisoners with mental illness;
• enhanced training for custody and mental health staff;
• enhanced data collection and analysis;
• enhanced accountability measures, including use-of-force reporting, use-of-force reviews and discipline; and
• enhanced grievance procedures.
The Justice Department’s investigation was originally opened in 1996, under the Civil Rights of Institutionalized Persons Act (CRIPA). The Justice Department found constitutional deficiencies in mental health care, suicide prevention and the use of excessive force against prisoners with mental illness. In 2002, the Justice Department entered into a memorandum of agreement with the County and the Sheriff to address these concerns. Despite considerable progress over the years of monitoring the memorandum of agreement, the Justice Department concluded in 2014 that the jails were failing to provide adequate mental health care, including suicide prevention, and that conditions under which prisoners with mental illness were housed exacerbated the risk of suicide.
In addition, in 2013, the Justice Department initiated a separate civil investigation into allegations of use of excessive force by jails staff under both CRIPA and the Violent Crime Control and Law Enforcement Act of 1994. While the use-of-force investigation was ongoing, the County and the Sheriff settled the Rosas v. McDonnell class-action lawsuit, which alleged excessive force by jails deputies in three downtown facilities. The settlement agreement incorporates all of the reforms in Rosas and extends them to all county jail facilities to cover prisoners throughout the jails system.
The civil investigations were conducted by attorneys and staff from the Civil Division of the United States Attorney’s Office and the Civil Rights Division’s Special Litigation Section.