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Tuesday 4 August 2015
Baldwin Borough Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
PITTSBURGH – A resident of Baldwin Borough, Pa., pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Eric Charles Smith, 37, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on or about July 27, 2014, officers of the Baldwin Borough Police Department arrested Eric Smith at his residence in Baldwin for domestic violence assault against his girlfriend and their five-year-old. Two days later, while Smith was still in jail on that charge, officers were called out to Smith’s residence by Smith’s girlfriend who indicated that she had obtained a Protection from Abuse Order against Smith and wanted his items removed from the residence, thereby giving officers consent to enter and seize items. Upon their entry, officers observed numerous (approximately 20) improvised explosive devices, explosive precursor chemicals, written calculations and recipes for explosives, bombmaking literature (such as the Anarchist Cookbook), remote detonating devices and various white supremacist and Nazi paraphernalia (including a podium and business cards which seemed to indicate that his residence was the meeting location for a group known as the “White Church Supremacists”). Among the devices was a six-inch long fused cylinder device which has been determined by the ATF to contain a perchlorate-based powder explosive containing aluminum and potassium perchlorate, as well as nails and other fragmentation taped to the outside of the cylinder. This device has been determined to be in operable condition and to fall within the legal definition of a “destructive device” by the ATF. In addition to being a convicted felon that is prohibited from possessing such a weapon, Smith has no items registered to him in the National Firearms Registration and Transfer Record.
Judge Hornak scheduled sentencing for Dec. 3, 2015. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded the defendant into custody.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Smith.
Annapolis Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – Cecil Scott Wiggins, age 49, of Annapolis, Maryland, pleaded guilty today to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
Annapolis Police Chief Michael Pristoop stated, “Violent crime in Annapolis is at a historic low due in part to the outstanding federal and local partnerships we enjoy. This is another clear example and I thank our law enforcement partners for their work in this case.”
According to Wiggins’ plea agreement, on December 19, 2014, Annapolis Police Department (APD) officers were called to the1300 block of Tyler Avenue in Annapolis for reports of shots fired. When officers arrived, the victim stated that her boyfriend, Cecil Scott Wiggins, fired a shot into her home. At the time Wiggins fired the shot, the victim and her fourteen-year old son were attempting to prevent Wiggins from getting inside the home. The shot hit the ceiling of the kitchen, without going through the upstairs floor or causing any injuries.
APD and the Anne Arundel County Police Department eventually located Wiggins at his mother’s home in Annapolis. APD personnel spoke to Wiggins’ mother, who gave consent to search her residence, and signed a consent form. In the basement where Wiggins resided, APD recovered a .22 caliber spent shell casing on the floor near the couch, and a silver/black .22 caliber revolver in the nearby laundry room. The revolver had black tape and multicolored rubber bands around the handle, and was loaded with one round of .22 caliber ammunition that matched the type of shell casing found on the floor.
Wiggins was arrested and transported to APD headquarters. Wiggins acknowledged he had a gun when he went to the victim’s home. He claimed that he accidentally pulled the trigger when he stuck his arm through the open door and the door closed on his arm.
Wiggins had previous felony convictions which prohibited him from possessing firearms or ammunition.
Wiggins and the government have agreed that if the Court accepts the plea agreement Wiggins will be sentenced to between 37 and 66 months in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for September 17, 2015, at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the ATF, Annapolis and Anne Arundel County Police Departments and Anne Arundel County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg and Special Assistant U.S. Attorney Shelly S. Glenn, who are prosecuting the case.
Monday 3 August 2015
Yakama Tribal Members Sentenced and Fined for Killing EaglesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Willard Phillip Maldonado and Austin Henry Phillips were sentenced in Yakima for their involvement in the commercialization of eagles. Maldonado, 41, of Union Gap, Washington, was sentenced to 9 months in custody, 6 of which will be served in home confinement. United States District Judge Salvador Mendoza also ordered Maldonado to serve a term of 3 years of supervision and to pay fines and assessments totaling $1,805. Maldonado also agreed to forfeit certain property, including firearms, a vehicle used to transport eagles, and eagle parts. Maldonado pled guilty on April 22, 2015, to six counts involving the killing and transporting of bald and golden eagles for commercial purposes and to offering eagle parts for sale in violation of the Bald and Golden Eagle Protection Act (16 U.S.C. § 668(a)) and the Lacey Act (16 U.S.C. §§ 3372(a)(1) and 3373(d)(1)(b). The offenses occurred over a period of more than three years from December of 2010 through January of 2014. The investigation revealed that Maldonado was using animal carcasses as bait to hunt eagles and was offering their feathers for sale through social media on the internet. One eagle carcass was found wearing a leg band that was later determined to have been placed on the bird by a biologist in Oregon.
Phillips, 39, of Granger, Washington, plead guilty on April 8, 2015, to a misdemeanor stemming from his killing of a bald eagle on January 17, 2014, while hunting with Maldonado. Phillips was sentenced to 3 years of supervised probation with 30 days in home confinement. As a condition of his probation, he will not be allowed to hunt outside of the Yakama Indian Reservation.
As members of the Yakama Indian Tribe, both Maldonado and Phillips can lawfully possess eagle feathers for non-commercial purposes. All members of federally recognized Indian tribes can obtain eagle feathers from a national repository maintained by the U.S. Fish and Wildlife Service for that purpose. However, it is unlawful for anyone to offer eagle feathers for sale or to sell eagle feathers.
The investigation identified people around the country and in Canada who responded to solicitations made by Maldonado. The investigation is one of a number of similar investigations in recent years that have led to convictions of Yakama tribal members, including United States v. Hawk, 09-CR-02034-001; United States v. Wahchumwah, 09-CR-02035-001; and United States v. Arquette, 14-CR-02057.
Michael C. Ormsby said, “The eagle is our country’s national symbol and is a national treasure. Importantly, it is an important and valuable resource evidenced in part by Congress’ enactment of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act. The eagle also has cultural and religious significance to Native Americans and it is important to protect eagles as part of Native American heritage. The United States Attorney’s Office, together with its law enforcement partners, will continue to investigate and prosecute aggressively those individuals who wantonly choose to violate these statutes.”
This investigation was conducted by agents with the U.S. Fish and Wildlife Service, the Washington Department of Fish and Wildlife and Yakama tribal authorities. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
Violent Fugitive Captured After Four Year SearchRead the Press Release
On Friday, July 31st, Andrew Smith, also known as “Back-it,” was arrested by members of the United States Marshals Service New York/New Jersey Regional Fugitive Task Force; the United States Marshals Service Southern Ohio Fugitive Apprehension Strike Team; Immigration and Customs Enforcement and Removal; and the Cincinnati Police Department. Smith was arrested with the assistance of a K-9 unit at approximately 1:30 a.m. in Cincinnati, Ohio, after a brief stand-off.
Smith is allegedly a member of the violent Fatherless Crew marijuana trafficking organization, which for years used violence and intimidation to control drug trafficking in portions of Queens, New York.
The capture was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Charles Dunne, United States Marshal for the Eastern District of New York.
Smith has been a fugitive since October 2010. He narrowly escaped arrest when, following a year-long investigation, federal, state, and local law enforcement officers conducted a search of the Fatherless Crew’s stash house in Queens. That search resulted in the arrest of more than a dozen individuals and the seizure of nearly 300 pounds of marijuana, three loaded handguns, and a variety of drug trafficking paraphernalia, including electronic scales, heat-sealing machines, and a vehicle outfitted with a with a hydraulic trap for concealing firearms. Smith was allegedly responsible for both the distribution of marijuana at the organization’s stash house and the use of violence against rival drug dealers. In March 2010, Smith was also allegedly involved in a shootout with a rival drug gang during a baby shower in St. Albans, Queens. Detectives from the NYPD recovered more than 30 shell casings and bullets, including one bullet that ricocheted off the door of a neighboring daycare center. One individual was shot in the chest during the gunfight but survived.
To date, more than 15 members and associates of the Fatherless Crew have been convicted, including four who were convicted following a five week trial in early 2012.
“Andrew Smith thought he could evade justice by living his life on the run. He learned today that he was wrong,” stated Acting United States Attorney Currie. “Law enforcement will work cooperatively and tirelessly to find and capture violent fugitives.” Mr. Currie expressed his appreciation to each of the agencies that participated in the arrest and thanked the Drug Enforcement Administration, United States Postal Inspection Service, New York City Police Department, and U.S. Attorney’s Office for the Southern District of Ohio for their assistance in this case.
“This fugitive was located because multiple federal, state and local law enforcement agencies cooperated with each other over a period of several years through the United States Marshals Service’s Fugitive Task Forces both in New York and Ohio. These Task Forces produce results like this every day,” stated United States Marshall Dunne.”
The defendant was arraigned on Friday afternoon before United States Magistrate Judge Stephanie Bowman at the federal courthouse in Cincinnati, Ohio, and was ordered to be removed to the Eastern District of New York to face drug tracking and firearms charges. The defendant was remanded without bail. The charges are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Steven Tiscione, Gina Parlovecchio, and Tyler Smith are in charge of the prosecution.
The Defendant:
ANDREW SMITH
Age: 41E.D.N.Y. Docket No. 10-CR-809 (KAM)
Victoria Man Convicted of Sexual Exploitation of a ChildRead the Press Release
VICTORIA, Texas – Mathew Kelly Millegan, 31, of Victoria, has pleaded guilty to production of child pornography, announced U.S. Attorney Kenneth Magidson.
Millegan came to the attention of law enforcement after authorities had learned of the sexual assault of two children. The children were identified and confirmed the abuse. Millegan was identified as the perpetrator and admitted to sexual assaulting the two children and taking sexual explicit photographs of the incident.
Authorities executed a search warrant at Millegan’s residence and seized several electronic media storage devices. Forensic examination led to the discovery of several photographs of the children involved in sexual explicit conduct.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Nov. 2, 2015. At that time, Millegan faces a minimum of 15 and up to 30 years in federal prison as well as possible $250,000 fine. Upon completion of any prison term imposed, Millegan also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect and prohibit the use of the Internet.
Millegan was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
Homeland Security Investigations and the Victoria County Sherriff’s Office investigated with the assistance of 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."
Victoria Man Convicted of Sexual Exploitation of a ChildRead the Press Release
VICTORIA, Texas – Mathew Kelly Millegan, 31, of Victoria, has pleaded guilty to production of child pornography, announced U.S. Attorney Kenneth Magidson.
Millegan came to the attention of law enforcement after authorities had learned of the sexual assault of two children. The children were identified and confirmed the abuse. Millegan was identified as the perpetrator and admitted to sexual assaulting the two children and taking sexual explicit photographs of the incident.
Authorities executed a search warrant at Millegan’s residence and seized several electronic media storage devices. Forensic examination led to the discovery of several photographs of the children involved in sexual explicit conduct.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Nov. 2, 2015. At that time, Millegan faces a minimum of 15 and up to 30 years in federal prison as well as possible $250,000 fine. Upon completion of any prison term imposed, Millegan also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect and prohibit the use of the Internet.
Millegan was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
Homeland Security Investigations and the Victoria County Sherriff’s Office investigated with the assistance of 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."
United States Files Complaint Against Three Wisconsin Dietary Supplement ManufacturersRead the Press Release
WASHINGTON – The Department of Justice filed a complaint today alleging that three Wisconsin companies that manufacture dietary supplements were not complying with the U.S. Food and Drug Administration’s (FDA’s) current good manufacturing practices and were misbranding their products. The complaint was filed in the Eastern District of Wisconsin against Atrium Inc., Aspen Group Inc., Nutri-Pak of Wisconsin Inc., and the owners of the three firms, James F. Sommers and Roberta A. Sommers. The companies, located in Wautoma, Wisconsin, sell dietary supplements to retail stores, healthcare professionals and directly to consumers via the Internet.
The complaint alleged that the firms were violating the federal Food, Drug and Cosmetic Act (FDCA) by failing to comply with current good manufacturing practices that, among other things, require manufacturers to establish specifications to ensure the identity and potency of the ingredients in dietary supplements. The complaint also alleged that the firms’ products were misbranded because they failed to identify the part of the plant from which the ingredients were derived, did not list the number of servings per container and failed to identify the serving size.
Supplements manufactured by the firms included Atrium brands Chole-Sterin, Di-Acid Stim, Ocu-Comp and Super-Flex; Aspen brand Flexile-Plus; and Nutri-Pak brands Glucobiotic Supreme and Ocu-Comp.
“Makers of dietary supplements who do not follow the FDA’s regulations put the public at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with the FDA to try to make sure that consumers are ingesting safe products and are getting what they paid for.”
“This case and the remedial actions required by the consent decree reflect the continuing focus of our office and the Justice Department generally in safeguarding and promoting the health and well-being of our people,” said U.S. Attorney James L. Santelle of the Eastern District of Wisconsin. “The corrections that these companies are required to accomplish along with oversight and inspection of them, will ensure compliance with the law and responsible sales to consumers.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from violating the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that their manufacturing practices have come into compliance with the law. The proposed consent decree is awaiting approval by the court.
The case is being handled by Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Susan M. Knepel of the Eastern District of Wisconsin, with assistance from Deeona Gaskin of the FDA’s Office of the Chief Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
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U.S. Attorney's Office Obtains ADA Settlement with Doctor's Office for Denying Treatment to Disabled PatientRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with a Flint ophthalmology office to resolve allegations that it denied treatment to a patient in violation of the Americans with Disabilities Act (ADA), U.S. Attorney Barbara L. McQuade announced today. The settlement resolves a complaint that Park Eye and Surgi-Center refused to complete an assessment for cataract surgery for a patient because of his disability. The investigation showed that the medical practice did not fully assess the patient because it inaccurately assumed that the patient could not complete the normal battery of tests required for cataract surgery because of his mobility disability. The ADA requires that places of public accommodation, such as medical offices, modify their practices to reasonably accommodate persons with disabilities. The patient later received treatment at another local ophthalmologist practice that made the necessary modifications to fully assess him for cataract surgery. “Health care providers are required to provide patients with disabilities the same medical care that is available to other patients,” McQuade said. “Medical practitioners cannot simply make assumptions about any patients. They must engage in a meaningful consideration of what can reasonably be done to assist them.” Under the settlement, the medical practice agreed to update its policies and training materials to ensure compliance with the ADA and to pay compensatory damages to the Complainant. In addition, the practice must train its staff on the ADA and develop and implement an anti-discrimination policy. The U.S. Attorney’s Office is continuing to investigate complaints involving hospitals and other medical offices related to physical access to medical care for people with mobility disabilities, and effective communication for people who are deaf or have hearing loss as part of the Department of Justice’s Barrier Free Healthcare Initiative, which prioritizes enforcement efforts on this critical area. For more information on the ADA and the DOJ’s Barrier Free Healthcare Initiative, visit http://www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements, the obligations of public accommodations under the ADA, or filing a complaint may contact the U.S. Attorney’s Office via email at [email protected], or by calling 313-226-9151. They may also contact the Justice Department through its toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), access its ADA website at www.ada.gov, or file a complaint by email at [email protected].Two convicted on child pornography chargesRead the Press Release
WHEELING, WEST VIRGINIA – Robert J. Gongloff, 25, of Weirton, West Virginia, and Matthew A. Amedeo, 69, of Chester, West Virginia, were each convicted today of child pornography offenses in federal court, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by Immigration and Customs Enforcement and the West Virginia State Police revealed that Gongloff produced numerous images and videos depicting nude minors and minors engaged in sexually explicit conduct. Gongloff, originally from Preston County, West Virginia, also misrepresented his name and age on a website known as MeetMe.com, claiming to be 17 years old and using the name “Johnny Williamson,” in order to transmit sexually explicit photographs to minor females. Gongloff pled guilty today to one count of “Production of Child Pornography.” He faces between 15 and 30 years in prison and a fine of up to $250,000.
Amedo utilized an online file sharing website to share and download various images of child pornography in Hancock County, West Virginia throughout 2014. He pled guilty today to one count of “Possession of Child Pornography,” following an investigation by the West Virginia State Police. He faces up to 20 years in prison and a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen Vogrin prosecuted the cases on behalf of the government.
U.S. Magistrate Judge James E. Seibert presided.
Two Brothers Sentenced on Food Stamp Fraud ChargesRead the Press Release
Two Detroit brothers have been sentenced to federal prison for the roles they played in a fraudulent food stamp scheme, U.S. Attorney Barbara L. McQuade has announced. McQuade was joined in the announcement by Special Agent-in-Charge Anthony V. Mohatt, of the United States Department of Agriculture’s Office of Inspector General. On July 20, 2015 U.S. District Court Judge Robert H. Cleland sentenced Yousef Haddad, age 57, to 42 months in prison, three years of supervised release and ordered him to pay $1,182,705.00 in restitution. Previously, on June 9, 2015 Haddad’s brother, Khalil Haddad, was sentenced by Judge Cleland to 34 months imprisonment, 36 months supervised release, and ordered to pay $978,277.00 in restitution. According to court records, between January of 2008 and September of 2011 Yousef and Khalil Haddad engaged in a scheme of fraudulently obtaining in excess of $1 million from the Supplemental Nutritional Assistance Program, more commonly known as the Food Stamp Program. The scheme involved their convenience store, Dollar City, located on Rosa Parks Blvd. in the City of Detroit. The Haddads would pay cash for food stamps usually at 50 cents to the dollar. They would then obtain 100% reimbursement from the United States Department of Agriculture through its Food and Nutrition Services Agency. Special Agent-in-Charge Mohatt stated: “The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the Internal Revenue Service – Criminal Investigations (IRS-CI) and Michigan State Police – Bridge Card Enforcement Team (MSP-BCET) has brought Yousef and Khalil Haddad to justice. The USDA Office of Inspector General will continue to dedicate resources and work with our federal and state law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”Three Gaston County Men Arrested for Conspiracy to Violate Laws Governing Firearms, Explosive Devices and Related ChargesRead the Press Release
CHARLOTTE, N.C. – Walter Eugene Litteral, 50, Christopher James Barker, 41, of Gastonia, and Christopher Todd Campbell, 30, of Mt. Holly, N.C., were arrested on Saturday, August 1, 2015, for conspiring to violate federal laws governing firearms and explosive devices and related charges, announced Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. Criminal complaints against the men were filed in late July 2015 and remained sealed until today.
Special Agent in Charge John A. Strong of the FBI’s Charlotte Division joins Acting U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the affidavits filed with the criminal complaints:
Beginning on or about June 18, 2015, law enforcement received information that Litteral and Barker were attempting manufacture explosive or destructive devices. On or about July 22, 2015, law enforcement received information that Campbell was reconstructing live grenades from “dummy grenades” sold legally as military artifacts. Litteral, Campbell and others believed that the United States government intended to use the armed forces to impose martial law, which they planned to resist with violent force. Litterral had been purchasing numerous military equipment in preparation for the alleged attack, including ammunition for a .338 caliber rifle, handheld radios with throat microphones for communication, military issue Kevlar helmets, body armor vests and balaclavas (a form of cloth headgear designed to expose only parts of the face).
The FBI became aware that Litteral and Campbell wanted to manufacture destructive devices such as pipe bombs and grenades and possessed some of the needed components. According to the investigation, Barker provided Litteral with pipe fittings, which are needed to manufacture pipe bombs. Litteral also discussed testing the destructive devices in Shelby, N.C., with Barker present for the testing. Making reference to the explosion, court records indicate that Litteral said, “it is going to be great.”
In addition to purchasing the military supplies, Litteral also tried to purchase a firearm and ammunition for Barker. According to court records, Litteral filled out the required form with his own information, even though the gun was intended for Barker. Using his own debit card, Barker purchased ammunition and a large capacity magazine for the gun. Barker’s prior criminal felony convictions prohibit him from purchasing or possessing a firearm or ammunition.
The three men had their initial appearances today in court and will in remain in federal custody pending their detention hearings, which have been set for Thursday, August 6, 2015.
The charge of conspiracy to violate laws governing firearms and explosive devices carries a maximum potential penalty of five years in prison and a $250,000 fine. Campbell is also charged with receiving, possessing and making a firearm – which definition includes a destructive device – for which the maximum penalty is 10 years in prison and a $10,000 fine.
The charges contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Joint Terrorism Task Force (JTTF) of which the North Carolina Highway Patrol, the Federal Air Marshal Service, the Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charlotte Mecklenburg Police Department are members. In making today’s announcement, Acting U.S. Attorney Rose thanked the Belmont Police Department, the Mount Holly Police Department, Gaston County Police Department, the Gastonia Police Department, and the Mecklenburg County Sheriff’s office for their assistance with the investigation.
The case is being prosecuted by Assistant U.S. Attorney and Senior Litigation Counsel Michael E. Savage of the Western District of North Carolina.
Texas Man Sentenced to 14 Years in Prison for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Steven Sawyer, 37, of Splendora, Texas, was sentenced today in U.S. District Court by Judge Jon D. Levy to 14 years in prison and 10 years of supervised release for transporting child pornography. Sawyer pleaded guilty to the charge on March 25, 2015.
According to court records, in October 2014, Sawyer, who was in Texas, sent an email message to the undercover email account of a Special Agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Maine. Attached to the email was a video file depicting a young girl engaging in sexually explicit conduct.
The investigation was conducted by HSI. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Texas Fugitive Pleads Guilty to Aggravated Identity Theft and Manufacturing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that John Thomas Humphreys (46, Texas) has pleaded guilty to manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. He faces a maximum penalty of 25 years in federal prison for the counterfeit note and false representation charges, to be followed by a consecutive mandatory minimum of 2 years in federal prison for the aggravated identity theft charge.
According to the plea agreement, on February 2, 2015, the Green Cove Springs Police Department received information that two individuals, later identified as Humphreys and Joe Eugene Loving, were manufacturing counterfeit Federal Reserve notes in their hotel room at the Astoria Hotel in Clay County. The two men had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by deputies from the Clay County Sheriff’s Office. Deputies found a counterfeit $100.00 note on Loving after his arrest.
During an interview with law enforcement, Humphreys and Loving stated, among other things, that they were involved in a drug deal in Texas in December 2014 and had been on the run ever since. They estimated printing and passing at least $10,000.00 in counterfeit currency. In addition, they printed counterfeit checks using the identities of others.
During a subsequent search of the hotel room, agents located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media which had been used to manufacture the counterfeit currency.
A third individual, Paul Corbin Pennington, Jr., was also charged in this case for passing counterfeit currency. Pennington, a maintenance worker at the Astoria Hotel, loaned Loving and Humphreys his computer to watch movies. Loving and Humphreys used the computer to print counterfeit checks. Pennington confessed to law enforcement officers that he had passed counterfeit currency in Clay County.
On July 9, 2015, Pennington pleaded guilty to one count of passing counterfeit currency. His sentencing hearing is scheduled for October 13, 2015. Loving’s case is set for trial in September 2015.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Tampa Man Sentenced to Twenty Years for Trading Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Richard Donald Ragsdale (57, Tampa) to 20 years in federal prison for transportation and receipt of child pornography. He pleaded guilty on December 18, 2014.
According to the complaint, on May 5, 2014, an undercover agent downloaded child pornography from an Internet Protocol (IP) address that was connected to Ragsdale’s residence. Further investigation revealed online chats by Ragsdale, in which he admitted to having prior sexual contact with children and discussed the sexual abuse of children. On June 24, 2014, a federal search warrant was executed at Ragsdale’s Tampa residence. Agents found hundreds of videos and images depicting child pornography on Ragsdale’s laptop.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Stamford Man Admits Trafficking Marijuana, Agrees to Pay $200,000 to Resolve Forfeiture CaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALAN WILSON, 24, of Stamford, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of possession with intent to distribute 20 kilograms or more of marijuana.
According to court documents and statements made in court, in late 2013, the Stamford Police Department received information that WILSON was selling marijuana from his residence located at 15 Mead Street in Stamford. In January 2014, law enforcement officers conducted a search of WILSON’s residence and discovered 8.77 pounds of marijuana stored in Foodsaver bags and Tupperware containers, a Foodsaver sealing machine and three boxes of new Foodsaver bags, a digital scale, $1,548 in cash, a .32 caliber long revolver, a loaded .22 caliber semi-automatic rifle, a .38 caliber revolver; a .25 caliber automatic pistol, 229 assorted rounds of ammunition and financial records.
WILSON is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 14, 2015, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000.
As part of the resolution of this case, WILSON also agreed to pay the government $200,000 to resolve a related civil forfeiture action (USA v. 15 Mead Street, Stamford, Connecticut, 3:14cv645).
This matter is being investigated by the Bridgeport Drug Enforcement Administration Task Force and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
Shelton Tax Preparer Sentenced to 3 Years in Federal Prison for Preparing and Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BELLARMIN NAMEGABE, 47, of Shelton, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 36 months of imprisonment, followed by one year of supervised release, for preparing false tax returns.
According to court documents and statements made in court, NAMEGABE, while operating a tax preparation business based in Shelton, falsely reported expenses, deductions and credits on numerous clients’ tax returns without his clients’ knowledge or consent. The false returns included fabricated Schedule A’s, Schedule C’s, number of dependents, fuel tax credits and other items.
As part of the investigation, special agents with the Internal Revenue Service – Criminal Investigation Division interviewed 11 of NAMEGABE’s clients who stated that NAMEGABE had falsified their returns. In addition, as part of an undercover operation, an agent simply dropped off his Form W-2 at NAMEGABE’s business, provided his name and some identifying information, such as his Social Security Number, and left. With the information provided, the undercover agent was only entitled to a refund of $632. Approximately two weeks later, the undercover agent’s return was posted to the IRS database. The return was prepared falsely and generated a refund of $3,235.
On December 4, 2014, NAMEGABE pleaded guilty to one count of aiding and assisting the filing of a false tax return.
As part of his sentence, NAMEGABE is required to pay back taxes, penalties and interest related to the false tax returns he prepared during the 2007 through 2011 tax years for the 11 individuals who were interviewed as part of the investigation. The tax loss attributed to those false returns is approximately $240,196.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Sequoia National Park Marijuana Cultivation Operation Results in Federal Prison SentenceRead the Press Release
FRESNO, Calif. — Toribio Cruz-Galvan (Cruz), 30, of Turicato, Michoacán, Mexico, was sentenced today to two years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.
His sentence follows his guilty plea earlier this year. According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants and processing 51 pounds of dried marijuana in the Yucca Mountain area of the Sequoia National Park. Although he was not found at the cultivation site, Cruz was linked to the grow site through his fingerprints, which were found on equipment and materials located in the grow site, as well as a supply vehicle intercepted several days before the discovery of the grow site.
The Yucca Mountain area is generally known for its spring wildflower display. In addition to the marijuana plants, park rangers found processed marijuana, a shotgun, ammunition for various firearms, and a digital scale at the cultivation site. The operation caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.
This case was the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Salem Man Sentenced to Prison for Defrauding OctogenarianRead the Press Release
During a sentencing hearing this morning in federal court in East St. Louis, Paul P. Gierten, 47, of Salem, Illinois, was sentenced to 15 months in prison on his federal fraud conviction, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The court also ordered Gierten to pay $38,300 in restitution to the victim of his crime.
Gierten pled guilty to the fraud charge on April 21, 2015. Gierten’s conviction relates to his former employment as an investment advisor in Centralia, Illinois. The victim of Gierten’s crime was one of Gierten’s clients. The victim is a military veteran who is in his 80s. In August of 2009, Gierten falsely told the victim that he had an investment opportunity with a business that assisted military victims. Because he is a veteran himself, the victim agreed to invest with this business. From August 2009, through March 2011, the victim provided a total of $39,000 to Gierten for investment in this company. Gierten did not invest the victim’s funds as promised. Instead, Gierten used the victim’s funds for his own personal expenses and to pay operating expenses of his own business.
In commenting on today’s conviction, United States Attorney Wigginton stated: "Any fraud by an Investment Advisor against his or her clients is intolerable. Gierten’s crime was even more heinous, because he took advantage of one of our elderly citizens. I hope today’s sentence sends a message to would-be fraudsters that stealing from elderly persons in Southern Illinois will land you behind bars and my office will continue to pursue restitution for our victim until our victim is made whole."
The investigation was being conducted by the Securities Department of the Illinois Secretary of State’s Office. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Otis Willis, Jr., 33, of Rochester, NY, pleaded guilty to conspiracy to commit sex trafficking of a minor before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of life in prison and a $250,000 fine. The plea was entered during the trial of this case.Assistant U.S. Attorneys Tiffany H. Lee and Bradley Tyler, who are handling the case, stated that between January 2012 and August 2012, the defendant conspired with Tiffany St. Denis to entice a female victim under the age of 18 to engage in commercial sex acts. Specifically, St. Denis posted ads for the female victim to engage in prostitution and Willis paid for hotel rooms at a Red Roof Inn.
Tiffany St. Denis has been convicted and is awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Sentencing is scheduled for November 10, 2015 at 3:00 p.m. before Judge Geraci.
Rochester Man Pleads Guilty to Filing False ReturnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced that today Anselmo Barilla, 48, of Rochester, NY, pleaded guilty before U.S. District Court Judge Charles J. Siragusa to filing a false tax return with the Internal Revenue Service. The charge carries a maximum penalty of three years in prison and a $250,000 fine.Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant was self-employed as a mason in Rochester. For the tax years 2007 and 2008, Barilla underreported the amount of income he had received from his mason business. The total amount of unreported income was $171,364, resulting in the failure to pay federal taxes in the amount of $56,152.
The plea is the culmination of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Sentencing is scheduled for November 4, 2015, at 10:30 a.m. before Judge Sirgusa.
Pediatric Services of America and Related Entities to Pay $6.88 Million to Resolve False Claims Act AllegationsRead the Press Release
ATLANTA – The U.S. Attorney’s Office announced that Pediatric Services of America Healthcare, Pediatric Services of America, Inc., Pediatric Healthcare, Inc., Pediatric Home Nursing Services (collectively, “PSA”), and Portfolio Logic, LLC agreed to pay $6.88 million ($6,882,387) to resolve allegations that PSA, a provider of home nursing services to medically fragile children, knowingly (1) failed to disclose and return overpayments that it received from federal health care programs such as Medicare and Medicaid, (2) submitted claims under the Georgia Pediatric Program for home nursing care without documenting the requisite monthly supervisory visits by a registered nurse, and (3) submitted claims to federal health care programs that overstated the length of time their staff had provided services, which resulted in PSA being overpaid.
“Participants in federal health care programs are required to actively investigate whether they have received overpayments and, if so, promptly return the overpayments,” said Acting U.S. Attorney for the Northern District of Georgia John Horn. “This settlement is the first of its kind and reflects the serious obligations of health care providers to be responsible stewards of public health funds.”
United States Attorney for the Southern District of Georgia, Edward J. Tarver said, “The failure to report and return a known overpayment is a serious offense that ultimately drives up the costs of health care for all of us. This U.S. Attorney’s Office and its federal and state law enforcement partners will continue to work together to ensure that health care providers, who receive millions of tax dollars every year, play by the rules and do not waste critical program funds.”
“The healthcare system is trust-based and providers who willfully ignore their fiscal responsibilities will be held accountable for their actions. This precedent-setting case should send the message that we will not tolerate any provider keeping American taxpayer dollars unjustly. Special thanks to the United States Attorney's Office for recognizing the importance of this case and partnering with us to pursue justice,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta.
John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office, stated, “This collaborative investigative effort reflects the Defense Criminal Investigative Service’s ongoing commitment to ensuring accountability throughout the military health care system, protecting the integrity of Department of Defense programs, and preserving precious taxpayer dollars.”
This is the first settlement under the False Claims Act involving a health care provider’s failure to investigate credit balances on its books to determine whether they resulted from overpayments made by a federal health care program. Under section 6402 of the Affordable Care Act, health care providers must report and return any overpayments by the later of (i) 60 days after the overpayment was identified or (ii) the date any corresponding cost report is due (if applicable).
PSA had been maintaining numerous credit balances on its books that related to claims it had submitted to various federal health care programs, some of which had been on PSA’s books for several years. Additionally PSA wrote off and absorbed credit balances that had resulted from overpayments into their revenue because they had not investigated the reason for the credit balances before doing so. At the government’s request, PSA cooperated with a joint audit of the credit balances on its books in order to identify all outstanding overpayments.
As part of the settlement, PSA has agreed to enter into a corporate integrity agreement with the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), which will require PSA to put in place procedures and reviews to avoid and promptly detect conduct similar to that which gave rise to the settlement.
The settlement resolves allegations filed by Yvette Odumosu and Sheila McCray, former employees of PSA, under the qui tam or whistleblower provisions of the False Claims Act, which authorize private parties to sue for false claims on behalf of the United States and share in the recovery. Ms. Odumosu’s lawsuit was filed in the Northern District of Georgia and is captioned U.S. ex rel. Yvette Odumosu v. Pediatric Services of America Healthcare, No. 1:11-CV-1007-AT and Ms. McCray’s lawsuit subsequently was filed in the Southern District of Georgia and is captioned United States ex rel. Sheila McCray, et al. v. Pediatric Services of America, Inc., Pediatric Services of America, Pediatric Healthcare, Inc., Pediatric Home Nursing Services, collectively d/b/a PSA Healthcare; and Portfolio Logic, LLC, No. CV413-12. Ms. Odumosu and Ms. McCray will receive a share of the settlement payment that resolves the qui tam suits that they filed in the amount of $1.1 million ($1,121,729). The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia, the U.S. Department of Health & Human Services, U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, the Medicaid Fraud Control Unit of the Georgia State Attorney General’s Office, and the National Association of Medicaid Fraud Control Units, comprised, in part, of the 20 states that are parties to the settlement.
The civil settlement was reached by Assistant United States Attorneys Neeli Ben-David, Darcy Coty and Charles Mulaney.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Owner of Investment Firm Sentenced to Eight Years for Orchestrating $4.7 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced the owner of a North Carolina investment firm to 96 months in prison today, for orchestrating a Ponzi scheme that solicited victims to invest millions in the foreign currency market (“FOREX”), announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. James H. Mason, 67, of Graham, N.C., was also ordered to serve three years under court supervision and to pay $4,325,820.79 as restitution to the victims of his fraud.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), join Acting U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in 2010 and continuing through March 2013, Mason solicited at least 500 victims to invest over $4.7 million in his fraudulent Ponzi scheme. Court records indicate that Mason executed the scheme by inducing victims to invest with his investment companies, “JHM Forex Only Pool” and “Forex Trading at Home Association,” and other related entities, for the supposed purpose of investing in Over-the-Counter (OTC) foreign currency exchange. Mason lulled his victims into a false sense of security by falsely projecting substantial returns on their investments, as much as $100 million, depending on the amount of their initial investment. Furthermore, Mason lied to his victims, falsely claiming that he had over 35 years of experience in commodity futures and options trading, when he had no such experience. According to court records, Mason also failed to disclose to his investor victims a wire fraud conviction in 2000, for which he was sentenced to 18 months in prison.
According to court records, Mason put only a portion of investors’ money into the foreign currency exchange, and lost essentially all the money he did invest while conducting FOREX trading. Court records indicate that Mason failed to disclose his actual trading results to his victims, and instead made false oral representations and provided bogus statements to clients, fraudulently reporting profits. According to court records, in order to induce individuals to further invest in his fraudulent foreign currency commodity pool, Mason established a website so that investors could access their accounts online, which fraudulently depicted that investors were making money – in some cases significant profits – through successful FOREX trading. The profits depicted on individual investor accounts were in fact false, and, in many cases, there was no actual money in the victims’ accounts.
According to court documents, rather than investing the funds as promised, Mason simply deposited victims’ money into various bank accounts he controlled and used a substantial portion of it to pay for personal and business expenses, real estate, cars and other expenses unrelated to any foreign exchange. For example, court records indicate that Mason spent approximately $435,000 of the investors’ money on a residence in Greensboro, N.C., and more than $222,000 for two residences and office space in Hickory, N.C. Court records show that Mason did not claim the additional income on his federal income tax returns filed with the IRS. Mason also used the rest of investors’ money to make “Ponzi” payments to other victims, fraudulently claiming they were “profits” from successful FOREX trading.
Mason pleaded guilty in June 2014 to one count of securities fraud conspiracy and one count of filing a false federal income tax return for tax year 2011. He has been in federal custody since April 2013 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by the North Carolina Secretary of State, Securities Division with assistance from the FBI, Charlotte Division, and IRS-CI. Acting U.S. Attorney Rose also thanked the Commodities Futures Trading Commission for their assistance in this case.
The prosecution is being handled by Special Assistant United States Attorney Kevin M. Harrington and Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position is reflection of the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Novi Man Sentenced to Prison for Food Stamp Fraud, Perjury and Unlawful Possession of FirearmsRead the Press Release
A Novi man was sentenced to 2 1/2 years in prison on July 30, 2015, for defrauding the Supplemental Nutrition Assistance Program of more than $520,000, perjury before an immigration court, and being a felon in possession of firearms and ammunition, United States Attorney Barbara L. McQuade announced today. Chief U.S. District Judge Gerald E. Rosen imposed sentenced on Laith Dallo, 46. According to information provided to the court at the defendant’s guilty plea and sentencing hearings, from June 2008 through May 2011, Dallo owned and operated Tweeny’s Pizza and Party Shop on McNichols Road in Detroit. During that period, the defendant engaged in a form of federal program fraud known as “discounting” by which SNAP benefits issued to legitimate beneficiaries were sold to Tweeny’s at a discount of approximately 50 percent. Thus, the beneficiaries received cash for half of the value of the SNAP benefits, which were intended for use only for the purchase of authorized food items, while 100 percent of the benefits were credited to Tweeny’s account. The defendant also sold unauthorized products, such as cigarettes and liquor, in exchange for SNAP benefits at highly inflated prices. On May 18, 2011, agents of the U.S. Department of Agriculture Office of Inspector General executed a search warrant at Tweeny’s and discovered two loaded pistols, a loaded semi-automatic rifle and high-capacity magazines in the store, as well as ammunition for the pistols and a holster in Dallo’s vehicle. Dallo was not authorized to possess firearms or ammunition due to prior felony convictions. Dallo testified at a 2010 immigration hearing pertaining to his Application for Asylum and for Withholding of Removal, that he was leading a crime-free life, when, in fact, he was in the midst of executing the SNAP fraud scheme against the government. This testimony resulted in Dallo’s perjury conviction. After serving his sentence in this case, Dallo will be turned over to immigration authorities on their detainer for deportation proceedings. In addition to the custodial sentence, was ordered to pay restitution of $520,962.15. This case was investigated by USDA-Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Craig A. Weier.New Haven Man Sentenced to More Than 3 Years in Federal Prison for Bankruptcy and Tax Fraud SchemesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON SHEEHAN, 41, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for engaging in an extensive bankruptcy and tax fraud scheme. In addition, Judge Thompson sentenced SHEEHAN’s wife, GLORVINA CONSTANT, 36, to one year of probation for participating in a related mortgage fraud scheme.
According to court documents and statements made in court, SHEEHAN was the sole member of a limited liability company known as Infinistaff, LLC, which provided temporary workers to employers. In September 2010, Infinistaff filed a voluntary chapter 11 bankruptcy petition with the Connecticut Bankruptcy Court. As part of the bankruptcy case, SHEEHAN filed operating reports that falsely claimed that another company was being paid to process Infinistaff’s payroll checks and to prepare and file its payroll tax returns and tax payments. During this time, SHEEHAN also falsely represented to the Internal Revenue Service that this other company was making tax deposits under its taxpayer identification number. Although Infinistaff had such an arrangement with the other company for a period of time, the arrangement was terminated at the time SHEEHAN made these representations. After the arrangement with the other company was terminated, SHEEHAN continued to file operating reports with the bankruptcy court indicating that the arrangement was still in place, and that this other company was being paid monthly “administration fees.” SHEEHAN filed these reports in order to conceal his embezzlement of more than $1 million from Infinistaff’s bankruptcy estate.
In addition, between 2011 and 2013, Infinistaff failed to account for and pay to the IRS more than $2.5 million in employment taxes the company had withheld from employee paychecks, and also failed to pay approximately $1.4 million in employer payroll taxes.
The investigation further revealed that CONSTANT received Infinistaff payroll checks totaling $354,000 during the bankruptcy proceedings even though she performed no work for the company.
SHEEHAN and CONSTANT used the stolen money to support a lavish lifestyle, including foreign travel and the purchase of a $650,000 home in CONSTANT’s name.
In 2013, CONSTANT purchased a home using proceeds from a $390,000 mortgage loan she obtained from a local bank, as well as approximately $260,000 embezzled by SHEEHAN from the Infinistaff bankruptcy estate. The mortgage loan application falsely stated that CONSTANT worked for Infinistaff and earned approximately $16,000 per month, when in fact, she did not work for Infinistaff at all. After a bankruptcy trustee was appointed in the Infinistaff bankruptcy case and the company was no longer operating, CONSTANT applied for a second mortgage loan of $131,000 from the bank. CONSTANT again misrepresented on the loan application that she was employed by Infinistaff and earning a substantial salary.
On October 8, 2014, SHEEHAN pleaded guilty to one count of willful failure to collect, account for and pay tax, one count of embezzlement from a bankruptcy estate and one count of making a false declaration statement under penalty of perjury in a bankruptcy case.
On October 7, 2014, CONSTANT pleaded guilty to one count of conspiracy to commit bank fraud.
Judge Thompson will hold a subsequent hearing to determine restitution.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation, with the assistance of the U.S. Trustee Program.
The U.S. Trustee Program is the Department of Justice component that promotes and protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the civil bankruptcy laws. Members of the public can report suspected bankruptcy fraud via email to [email protected].
In the District of Connecticut, the U.S. Attorney’s Office coordinates a Bankruptcy Fraud Working Group that includes representatives from the U.S. Attorney’s Office, the Office of the U.S. Trustee, the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation, the U.S. Secret Service, and the Social Security Administration Office of the Inspector General.
This case was prosecuted by Assistant U.S. Attorney Heather Cherry and Senior Litigation Counsel Richard J. Schechter.
New Hampshire Woman Sentenced on Firearm ChargeRead the Press Release
CONCORD, N.H. – Sandra Egbert, 26, of Goshen, New Hampshire, was sentenced today in the United States District Court for the District of New Hampshire to 18 months in federal prison after pleading guilty to conspiracy to make a false statement during the acquisition of a firearm and making a false statement during the acquisition of a firearm, announced Acting United States Attorney Donald Feith. Upon her release, Egbert will be placed on three years of supervised release which is monitored by the United States Probation and Pretrial Services Office.
Beginning in March 2014, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New Hampshire State Police, New Hampshire Attorney General’s Drug Task Force, Keene Police Department and Boston Police Department were involved in an investigation of the illegal purchase and sale of firearms involving Ronald Scott, Mitchell Riddell and Sandra Egbert. During the investigation, law enforcement learned that Scott, a Massachusetts resident, solicited Riddell, a New Hampshire resident, to purchase firearms. Riddell then solicited Egbert, whom he met in a homeless shelter, to purchase the firearms.
Between March 10, 2014 and April 3, 2015, Egbert purchased nine firearms on four separate occasions. During each transaction, Egbert made a material misrepresentation to the federally licensed firearms dealer by claiming that she was the actual purchaser of the firearm when she was in fact purchasing the firearms for Riddell. One of the firearms purchased by Egbert was recovered in Boston, Massachusetts during a drug arrest. The other eight firearms have not been recovered.
Riddell was convicted of conspiracy to make a false statement during the acquisition of a firearm and sentenced to 37 months imprisonment. Scott was convicted of conspiracy to make a false statement during the acquisition of a firearm, possession of ammunition by a convicted felon and possession with intent to distribute cocaine base (crack) and was sentenced to 33 months imprisonment.
“Straw purchasing is designed to avoid the regulatory controls implemented to ensure that firearms are possessed only by those individuals who may legally own them, said Acting United States Attorney Donald Feith. “Our office will work with laws enforcement to investigate those individuals who seek to end run the regulatory scheme and prosecute those who put firearms in the hands of those persons not legally entitled to possess them.”
“ATF will continue to combat firearms trafficking, especially the use of straw purchasers to facilitate this illegal trade,” stated ATF Special Agent in Charge Daniel Kumor. “We will aggressively pursue straw purchasers of firearms because they are responsible for placing guns into the hands of criminals and for placing public safety in jeopardy.”
The case was investigated by ATF, New Hampshire State Police, New Hampshire Attorney General’s Drug Task Force, Keene Police Department and Boston Police Department. The case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Miami-Dade County Brothers Sentenced to 70 Months in Prison for Identity Theft Schemes Involving Unemployment Insurance Fraud and Federal and State Tax FraudRead the Press Release
Two Miami-Dade County brothers were each sentenced to 70 months in prison for identity theft schemes involving unemployment insurance fraud, federal income tax fraud, and state income tax fraud.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Densom Beaucejour, 22, and Winzord Beaucejour, 21, both of Miami Gardens, each previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, the investigation in this case began in January 2015, when a local police officer reported that he/she was the victim of identity theft and that a fraudulent unemployment insurance claim had been filed in his/her name. A subsequent investigation by federal law enforcement revealed that 234 fraudulent unemployment claims were filed from the defendants’ residence. The total intended loss associated with these claims is $239,510.
On March 11, 2015, law enforcement agents executed a federal search warrant at the defendants’ residence. Inside several bedrooms in the defendants’ home, law enforcement found numerous sheets of paper, ledgers, and other documents with personal identifying information (PII) – including names, dates of birth, and Social Security numbers – of more than 1,000 individuals. Agents also discovered three handguns, $8,600 in cash, and several credit cards embossed with names of individuals who did not appear to live at the defendants’ residence. Approximately 365 fraudulent tax returns were filed with the IRS from the residence seeking $413,279 in fraudulent tax refunds, as well as 2 fraudulent state tax returns with Ohio seeking $15,004. In total, the amount of intended loss is $917,973.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Trafficking Methamphetamine in Yakima Sentenced to 10 Years in Federal PrisonRead the Press Release
Spokane - Michael C. Ormsby, the United States Attorney for the Eastern District of Washington, announced today that Armando Godinez-Ramos, age 33, of Michoacán, Mexico, was sentenced for possession with intent to distribute methamphetamine. United States District Court Judge Salvador Mendoza, Jr., sentenced Godinez-Ramos to a 10 year term of imprisonment, to be followed by an 8-year term of court supervision upon release from Federal prison
According to information disclosed during the court proceedings, on July 22, 2014, Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI) arrested Godinez-Ramos on a federal immigration warrant. During the execution of a search warrant for his residence, officers located drugs and drug trafficking tools, including approximately 300 grams of methamphetamine, 120 grams of heroin, a drug cutting agent, surveillance cameras, and a firearm. Godinez-Ramos has prior convictions for alien in possession of a firearm and delivery of methamphetamine.
Michael C. Ormsby said, “I commend the officers of ICE/HSI, ATF, the Yakima DEA Drug Task Force, and the Yakima Police Department for their efforts in investigating this methamphetamine case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities.”
This case was investigated by the cooperative efforts of ICE/HSI, ATF, the Yakima DEA Drug Task Force, and the Yakima Police Department. The case was prosecuted by Ian L. Garriques, Assistant United States Attorney for the Eastern District of Washington.
Memphis Man Pleads Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Memphis, Tennessee, pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Saburi Adeyemi, 58, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Adeyemi obtained stolen identity information which he shared with co-conspirators who used that information to file fraudulent federal tax returns seeking tax refunds. The information provided by Adeyemi was also used to open bank accounts that were used as repositories for the fraudulently obtained federal tax refunds.
Judge Cercone scheduled sentencing for December 7, 2015. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
Martinsburg man sentenced for unlawful distribution of explosivesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Chris O’Connor, 37, of Martinsburg, was sentenced today to 12 months in prison for unlawful distribution of explosives, United States Attorney William J. Ihlenfeld, II, announced.
In December 2014, O’Connor sold explosives in Berkeley County, West Virginia without the requisite license. He pled guilty in May 2015 to a criminal Information charging him with one count of “Unlicensed Distribution of Explosive Materials.”
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Jose Roberts, 62, of Martinsburg, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
A federal grand jury recently charged Roberts with multiple heroin trafficking offenses following the death of a female victim who used heroin allegedly purchased from Roberts in Berkeley County, West Virginia in May 2014.
Roberts, also known as “Jose,” pled guilty today to a criminal Information charging him with one count of “Aiding and Abetting Distribution of Heroin.” As a result of the plea agreement executed today, Roberts will be sentenced to 84 months in prison.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office led the investigation.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Who Placed Improvised Explosive Device at Colorado Springs Building Pleads GuiltyRead the Press Release
DENVER – Thaddeus Cheyenne Murphy, age 44, of Colorado Springs, Colorado, pled guilty this morning before U.S. District Court Judge William J. Martinez to damage to a building by means of fire and explosion and felon in possession of a firearm, U.S. Attorney John Walsh, FBI Denver Division Special Agent in Charge Thomas Ravenelle and ATF Denver Division Acting Special Agent in Charge David Booth announced, in conjunction with the Colorado Springs Police Department. Judge Martinez is scheduled to sentence Murphy on November 3, 2015 at 2:00 p.m. Murphy, who appeared at the hearing in custody, was remanded at its conclusion.
Murphy was first charged by Criminal Complaint on February 20, 2015. He was indicted by a federal grand jury in Denver on February 23, 2015. He pled guilty today, August 3, 2015. According to the stipulated facts contained in the plea agreement, on January 6, 2015 at 10:48 a.m., the Colorado Springs Police Department (“CSPD”) received a 911 call about an explosion that occurred at 603 S. El Paso Street in Colorado Springs, Colorado. The caller said someone tried to blow up the building by putting stick of dynamite next to a container of gasoline and lighting it. He, along with others, reportedly heard a huge explosion inside the building. When one of the building’s occupants went outside, he saw a gas can sitting next to the building where the explosion happened.
The explosion occurred at the northeast (back) corner of the building. The building houses two businesses, including Mr. G’s Hair Design Studios and the Colorado Springs Chapter of the National Association for the Advancement of Colored People (“NAACP”). The business closest to the explosion was Mr. G’s Hair Design Studios. The NAACP was on the south side of the building opposite the blast site. Also on the building was a sign that read “Income Tax”, but that business had not been active for some time.
Investigators arrived and examined the scene of the blast. The building had charring on its side and a concrete wall about six feet away had also been damaged. The resultant damage was minimal. At the blast site itself, investigators found a piece of metal pipe as well as a piece of a road flare and the gas can. The gas can, which was about ¾ full, failed to ignite. Analysis of the material recovered from the scene showed that the device used to cause the explosion and fire at the building was an improvised explosive device (“IED”) commonly known as a pipe bomb.
Witnesses told investigators that the person who placed the bomb was a white male, in his 30s or 40s, either bald or close shaved hair with a medium to heavy build. Witnesses also described the suspect vehicle as a white truck with a black or dark colored hood. They said the tailgate of the truck was up before the blast, but was left down after the blast driving away from the scene. Through investigation, agents found surveillance video from a residence in a neighborhood near. The video showed a distinctive white Ford truck with a black hood driving toward the location with its tailgate up shortly before the blast; and, the same distinctive truck driving away from the location with its tailgate down right after the blast.
A Colorado Springs Police Department detective familiar with the investigation found a truck matching the description, and investigators found that it matched the truck from the surveillance video. Investigators observed the truck parked at the defendant’s residence, and found that the truck was registered to the defendant. In reviewing the defendant’s driver’s license photo, investigators also found the defendant matched the description of the suspect given by the witnesses. A records check of the defendant’s criminal history showed that he had previously been convicted of two felony thefts, crimes punishable by a term exceeding one year.
Agents from the FBI-JTTF obtained a search warrant for the defendant’s truck and residence. When they executed the warrant, agents found seven (7) firearms inside the residence, including two assault rifles, a handgun, two shotguns, and a WWII era Russian made battle rifle. A homemade silencer was found with the firearms as well. Investigators also found components left over from the defendant’s IED, including the remaining road flares, galvanize pipe, “Dragon’s Breath” shotgun shells, and duct tape.
Agents determined that the defendant made the pipe bomb in his garage out of galvanized pipe and a “Dragon’s Breath” shotgun shell. He placed the pipe bomb, along with a gas can, on the back side of the building and lit the bomb fuse with a road flare. The defendant told investigators that he placed the bomb in an effort to get back at his former accountant who had failed to return the defendant’s calls. The defendant admitted that he knew he was not allowed to possess firearms because he was a convicted felon.
Murphy faces not less than 5 years, and up to 20 years in federal prison for arson of a building, and not more than 10 years in federal prison for being a felon in possession of a firearm. There is also a fine of not more than $250,000 for each of the two counts.
This case was investigated by the FBI’s Colorado Springs Joint Terrorism Task Force, the ATF, and the Colorado Springs Police Department with support from the El Paso County Sheriff.
The defendant is being prosecuted by Assistant U.S. Attorney Gregory Holloway.
Louisville Man Charged with Enticement, Production, Distribution and Possession of Child PornographyRead the Press Release
Defendant used 16 different minors to produce child pornography using social media
LOUISVILLE, Ky. – A Louisville man previously employed by a parochial high school located in Jefferson County, Kentucky, as a high school teacher and assistant coach with the school’s athletics department, was charged in a felony Information, filed on July 31, 2015, with violating child exploitation laws, announced United States Attorney John E. Kuhn, Jr. Under certain circumstances a person can be charged by Information rather than Indictment. The case, Criminal Action Number 3:15CR-83-DJH, will be set for an arraignment and change of plea hearing by further Order of the Court.
Patrick Newman, age 33, had previously been charged by Criminal Complaint with engaging in unlawful online communications resulting in the production of child pornography with a 13-year-old male (“John Doe”). He now faces 16 counts of knowingly using, persuading, inducing, enticing, or coercing minors to produce child pornography that was transported in interstate or foreign commerce. The charges involve 16 different victims. Additionally, Newman is charged with online enticement, distributing and possessing child pornography.
According to the Affidavit attached to the criminal complaint, the investigation started earlier this year when the National Center for Missing and Exploited Children received a CyberTip from Twitter, Inc. regarding the upload of child pornography materials to VINE (a video sharing website owned by Twitter) from the same IP address in Texas, between 12-28-2014 and 12-30-2014. Law enforcement officials in Texas identified the child depicted in the images and later identified Newman as the adult who had been communicating with the child and obtaining sexually explicit images of the child.
Law enforcement officials executed a federal search warrant on Newman’s Louisville home. Homeland Security Investigations (HSI) within the Department of Homeland Security (DHS) arrested Newman that same day. He has remained in federal custody since June 1, 2015.
Upon conviction, Newman faces a mandatory minimum prison term of 15 years followed by 5 years of Supervised Release. The maximum potential penalties are life in prison, a $4,750,000.00 fine, and up to and including a life period of Supervised Release.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by HSI Louisville Division of the Department of Homeland Security.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
***
The charging of a person by an Information is an accusation
only and that person is presumed innocent until and unless proven guilty.
Louisiana Felon Sentenced to Five Years in Prison for Possessing FirearmsRead the Press Release
TULSA, Okla.—Freddie Allen Hayes, 34, was sentenced to 60 months in prison for being a felon in possession of firearms and ammunition, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Judge Claire V. Eagan also sentenced Hayes to three years of supervised release following his prison sentence.
On June 18, 2013, the Northern Oklahoma Violent Crimes Task Force attempted to serve a felony arrest warrant on Hayes. Hayes fled in a vehicle, leading law enforcement on a car chase until he crashed into a tree. An investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) revealed that Hayes had been in possession of a pistol, a shotgun and numerous rounds of ammunition. Hayes has multiple felony convictions.
This case was investigated by ATF and the Tulsa Police Department. Assistant United States Attorneys Neal C. Hong and Gary L. Davis II prosecuted the case.
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Los Angeles Pharmacist Sentenced to 18 Months in Prison for Medicare Part D SchemeRead the Press Release
The owner and operator of a Los Angeles pharmacy was sentenced today to 18 months in prison for his role in a fraud scheme involving the Medicare Part D prescription drug program.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division made the announcement.
Rouzbeh Javaherian, 35, of Beverly Grove, California, pleaded guilty to health care fraud on March 16, 2015. In addition to imposing the prison term, U.S. District Court Judge Stephen V. Wilson of the Central District of California ordered Javaherian to pay $644,060 in restitution to Medicare.
Javaherian was a licensed pharmacist and owner of Emoonah Inc., doing business as Westaid Pharmacy and Medical Supply (Westaid), which was located in Los Angeles. According to admissions in the plea agreement, from January 2008 to November 2014, Javaherian devised and executed a scheme to defraud the Medicare Part D program by paying illegal cash kickbacks to Medicare beneficiaries to induce them to submit their prescriptions to Westaid. Javaherian then filled some of those prescriptions, but also submitted false and fraudulent claims to Medicare Part D plan sponsors for prescriptions that he did not actually fill. Javaherian received approximately $644,060 in overpayments from Medicare as the result of the fraud scheme.
The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. The case is being prosecuted by Trial Attorney Alexander F. Porter of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team, go to: www.stopmedicarefraud.gov.
Lexington Park Man Sentenced for Gun Charges and Trafficking Contraband CigarettesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced William Terrance Proctor, a/k/a “Boobie,” and “Booby,” age 32, of Lexington Park, Maryland, today to 78 months in prison followed by three years of supervised release for aiding and abetting the theft of a firearm, possession of an unregistered firearm, unlawful sale of a firearm to a prohibited person; and receipt, possession and transportation of contraband cigarettes.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; St. Mary’s County Sheriff Tim Cameron; Charles County Sheriff Troy Berry; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on October 27, 2012, individuals who stole approximately 48 firearms from a gun shop in Lexington Park transported the guns to Proctor’s residence. Knowing that the guns were stolen, Proctor agreed to store the guns at his house. Thereafter and until June 2014, Proctor arranged for the sale of approximately 45 of the stolen firearms.
On March 20, 2014, Proctor sold a rifle for $1,000 which had a barrel measuring less than 16 inches. From April to June, 2014, Proctor sold seven more firearms in exchange for contraband cigarettes – that is, cigarettes for which the applicable Maryland cigarette taxes were not paid. Of those seven firearms, two were stolen during the 2012 theft from the Tackle Box. Proctor knowingly sold them to an individual who had been previously convicted of a felony. Proctor then sold most of the contraband cigarettes.
On June 27, 2014, Proctor was arrested in Maryland in connection with his attempt to sell an eighth firearm in exchange for contraband cigarettes.
United States Attorney Rod J. Rosenstein commended the ATF, St. Mary’s County and Charles County Sheriffs’ Offices and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who prosecuted the case.
Lackawanna Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Carvis McCutcheon, 35, of Lackawanna NY, who was convicted of conspiracy to possess with the intent to distribute crack cocaine, was sentenced to 46 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney John M. Alsup, who handled the case, stated that the defendant conspired with others to sell crack cocaine in Lackawanna. In February 2013, McCutcheon sold crack cocaine on two occasions within 1000 feet of the Gates Public Housing Complex in the City of Lackawanna.
“Residents living in public housing projects, including those with families, children and the elderly, deserve the same safety and security as every American,” said U.S. Attorney Hochul. “Today’s sentencing makes it clear that law enforcement will not allow drug traffickers to contaminate these areas with their dangerous and often violent criminal endeavors.”
The sentencing is the culmination of an investigation on the part of the Lackawanna Police Department, under the direction of Chief James Michel and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Kennewick Man Sentenced to Five Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Dan Richard Dickey, age 68, of Kennewick, Washington, was sentenced today, after having previously pled guilty on February 24, 2015 to Receipt of Child Pornography. Senior United States District Court Judge Edward F. Shea sentenced Dickey to a five year term of imprisonment, to be followed by a twenty year term of court supervision after he is released from Federal prison. In addition, Dickey was ordered to forfeit to the United States the computer equipment and digital media used to receive and store his child pornography collection and ordered to pay restitution to one of his victims in the amount of $5,500. Dickey was ordered to pay a fine of $10,000. Dickey will also be required to register as a sex offender.
According to information disclosed during the court proceedings, a Corrections Officer at the Walla Walla Penitentiary reported to the Kennewick Sheriff’s Office that Dickey was in possession of child pornography images. On November 27, 2012, Dickey was interviewed by Detectives from the Benton County Sheriff’s Office. Dickey admitted he had taken pictures of a minor female undressing using a pinhole camera that he had hidden in a bedroom of his Kennewick residence. On November 27, 2012, a state search warrant was obtained for Dickey’s Kennewick residence. Several computers and other digital devices were seized from Dickey’s residence and examined forensically. Law enforcement discovered Dickey had an extensive collection of child pornography which contained over 61,000 images of child pornography, some which depicted minor children in bondage, and included prepubescent female children under the age of twelve. A forensic examiner determined that Dickey had collected child pornography images from at least January of 2005 until the search warrant was executed at his residence on November 27, 2012.
Michael C. Ormsby stated, “The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Investigating and prosecuting offenders who are collecting and making child pornography is a priority of the Federal Bureau of Investigations and the United States Attorney’s Office. I commend the outstanding investigative efforts and symbiotic partnership demonstrated by the Benton County Sheriff’s Office and the FBI in this case.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation and Benton County Sheriff’s Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
Jury Convicts Arizona Man of Mortgage Fraud CrimesRead the Press Release
LAS VEGAS - - An Arizona man, whose conviction on mortgage fraud charges had been overturned by the Ninth Circuit Court of Appeals and remanded for a new trial, was convicted again today of conspiracy and fraud charges, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Following a four-day jury trial, and 1½ days of deliberations, Brett Depue, 42, of Gilbert, Ariz., was convicted of one count of conspiracy to commit mail, bank and wire fraud, and seven counts wire fraud. Depue was remanded to custody and sentencing is scheduled for Nov. 9 at 9:00 a.m.
“We are pleased that a second jury determined that Mr. Depue had committed fraud,” said U.S. Attorney Bogden. “There were over 100 homes used as part of this conspiracy to defraud the financial institutions of millions.”
Depue, representing himself, was first convicted by a jury in 2012, and sentenced to almost 22 years in prison. Depue appealed, and the Ninth Circuit found that his waiver of his right to counsel did not comport with established standards, so they vacated his convictions and remanded the case for a new trial.
During 2005 to 2007, Depue operated a number of Nevada businesses in Las Vegas, including, ABS Investments Group, LLC, and Liberty Group Investments, LLC. From about February 1, 2005, to May 31, 2007, Depue participated in a conspiracy with about 13 others to defraud federally insured banks. The conspiracy consisted of recruiting straw buyers, typically friends or family members with good credit, to purchase homes that they had no intent to occupy and which Depue would control. Depue paid the straw buyers about $5,000 to put houses in their name, sometimes up to five houses. Depue then directed co-conspirators to prepare mortgage applications containing false and fraudulent information, so that the straw buyers could qualify for the loans. During the beginning of the scheme, Depue orchestrated simple straw buyer transactions in which the straw buyers purchased properties using 100 percent financing. The properties were purchased at a price above the asking price, and the difference was disbursed at closing to one of defendant’s entities. Later, Depue began using “double escrows” in which a buyer purchased a property and soon thereafter resold it to a straw buyer at an inflated price, often on the same day.
Using this scheme, Depue and his co-conspirators obtained mortgage loans for 110 homes in Las Vegas and Henderson between April 2005 and April 2007. The houses went into foreclosure, and it is estimated that financial institutions lost more $24 million as a result of Depue’s fraud.
Ten co-conspirators were also convicted for their roles in the offense.
The investigation was conducted by the FBI. The case was prosecuted by Assistant United States Attorneys Sarah E. Griswold and Lisa Cartier-Giroux.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Jordan Pleads Guilty in Scheme to Steal Feeding Program FundsRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that Kattie Jordan, 50, of Dermott, pled guilty to Count 1 of the Superseding Indictment charging her with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year and summer.
Today’s plea hearing took place in Little Rock before United States District Judge Susan Webber Wright.
"Jordan and others stole money that was intended to feed poor and hungry children," Thyer said. "We are pleased that Ms. Jordan has accepted responsibility for her conduct. We are committed to investigating and prosecuting those who abuse a system designed to help those in need."
In April 2015, a federal grand jury returned a Superseding Indictment against Gladys Elise Waits, f/k/a Gladys Elise King, Tonique D. Hatton, Jacqueline D. Mills, and Kattie Lannie Jordan, charging them with conspiring to fraudulently obtain USDA program funds. Additionally, Mills is charged with wire fraud, paying bribes, and engaging in money laundering. King and Hatton are charged with accepting bribes. The Superseding Indictment seeks forfeiture of the proceeds obtained as a result of the fraud.
King and Hatton worked for the Arkansas Department of Human Services, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Jordan and Mills operated as sponsors for separate feeding programs. King and Hatton were responsible for approving Jordan’s and Mills’ programs at various times.
The Superseding Indictment alleges that Mills and Jordan made bribe payments to King and Hatton. Mills and Jordan submitted claims for many more meals than they actually served, and King and Hatton approved these inflated numbers so the programs could receive DHS payments.
King, Hatton, and Mills are scheduled to stand trial beginning January 4, 2016. The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
Jordan will be sentenced by Judge Wright at a later date.
The investigation remains ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture—Office of Inspector General, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg. If anyone is aware of any fraudulent activity regarding feeding programs, please email that information to the United States Attorney’s office at [email protected].
Jefferson County woman convicted of heroin traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sarah Marie Weant, 27, of Kearneysville, West Virginia, was convicted on charges stemming from last month’s 41-person Baltimore-to-West Virginia heroin trafficking indictment, United States Attorney William J. Ihlenfeld, II, announced.Weant admitted that she utilized a telephone to facilitate the purchase of heroin that she knew would subsequently be distributed throughout Northern West Virginia.
Weant pled guilty to one count of “Use of a Telephone to Facilitate the Distribution of Heroin.” She faces up to four years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the case on behalf of the government. The matters were investigated by the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative.
U.S. Magistrate Judge Robert W. Trumble presided.
James Moorcroft Imprisoned for Stolen Truck/Tractor CaperRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that James Moorcroft, 50, of Brookfield, Vermont, was sentenced today in United States District Court in Burlington to six months of imprisonment following his guilty plea to charges that he possessed eight trucks and tractors which had crossed state lines after being stolen. U.S. District Judge William K. Sessions III ordered that Moorcroft serve three years of supervised release following completion of his prison term. As a condition of supervised release, the court required Moorcroft to serve an additional six months of home confinement when he gets out of jail. The court ordered Moorcroft to pay restitution of more than $122,000. Moorcroft was directed to surrender to the Bureau of Prisons on September 8 to begin serving his sentence.
On August 13, 2014, a federal grand jury in Rutland returned a seven count indictment accusing Moorcroft of possessing six trucks and two farm tractors which had been transported across state lines after being stolen. According to the indictment, between 2000 and 2012, Moorcroft orchestrated the thefts of eight trucks and tractors from locations in Vermont, New York, Massachusetts and Maine. Moorcroft then transported the stolen equipment to a farm he lives on in Brookfield, where he used the vehicles. Moorcroft stripped the vehicle identification numbers off the stolen equipment, affixed replacement VINs and registered the vehicles in Vermont. The pieces of equipment were worth about $193,000 when stolen.
In February 2014, police in Connecticut examined one of the stolen vehicles at the home of a relative of Moorcroft's and discovered that the public VIN did not match a confidential VIN hidden within the vehicle. At that point, authorities theorize, Moorcroft panicked and decided to dispose of the stolen equipment he had on his farm. In February and March 2014, authorities recovered all eight stolen trucks and tractors after they had been abandoned or moved to locations in Vermont, Connecticut, New York, Massachusetts and New Hampshire.
This case was investigated by the Vermont Department of Motor Vehicles.
Moorcroft is represented by Natasha Sen. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Holyoke Man Charged with Possessing Child PornographyRead the Press Release
BOSTON – A Holyoke man was charged today in U.S. District Court in Springfield with possessing child pornography.
Edward F. Dupont, 73, was charged in a criminal complaint with one count of possession of material involving the sexual exploitation of children.
According to court documents, it is alleged that on June 23, 2015, federal law enforcement agents executed a search warrant at Dupont’s residence. Dupont waived his Miranda rights and stated during the interview that: he has a sexual interest in young children; he has used his computer to access child pornography sites on the Internet and to download child pornography images and videos; and he possessed child pornography on his home computer.
Dupont denied ever having sexual contact with children, although he admitted that neighborhood children came over to play in his backyard and in his basement. It is also alleged that, he had given copies of his house keys to the neighbors so that their children could come over any time they wanted, and he maintained a cupboard with games for the children to play.
During the search, federal agents seized a personal computer that contained over 16,000 images and 35 videos of child pornography. These included four video files that depicted the rape of girls as young as five years old. The computer also contained a 170-page manual entitled “How to practice child love”. The manual is a professionally designed document that presents itself as “an education and a step-by-step guide for adults to engage and practice sexual relationships with underage children.” The manual also stated, “You do not even need to leave your own house or lot to meet new children and child love candidates. If you are bound to stay at your house, and preferably living alone, you can actually get the kids all the way to your front door – and even inside. This might even be a very safe option too – since as soon as you get the kids inside, no one can watch your activities from outside.”
Dupont faces a maximum sentence of twenty years in prison, to be followed by a minimum of five years and a maximum lifetime term of supervised release, and a maximum fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information related to this case, or any information relating to the sexual exploitation of children, should call (617) 748-3274.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Grants Man Pleads Guilty to Federal Distribution of Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Richard J. Dates, 70, of Grants, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a distribution of child pornography charge. Under the terms of his plea agreement, Dates will be sentenced within the range of five to 12 years in prison followed by not less than five years of supervised release. Dates will be required to register as a sex offender upon his release from prison.
Dates was arrested in Grants in Aug. 2012, on a criminal complaint charging him with possession of visual depictions of minors engaged in sexually explicit conduct from Aug. 23, 2009 through Aug. 23, 2012. According to court documents, Dates was arrested by Homeland Security Investigations (HSI) agents after an investigation by HSI in Boston, Mass., identified him as an individual who was distributing child pornography images through the internet.
Dates was indicted on Sept. 5, 2012, and charged with possession of visual depictions of minors engaging in sexually explicit conduct from Aug. 23, 2009 through Aug. 23, 2012. A superseding indictment was filed on Sept. 25, 2013, charging Dates with two counts of distribution of child pornography, two counts of receiving child pornography, and possession of visual depictions of child pornography. A second superseding indictment was filed on June 24, 2014, charging Dates with one count of advertising child pornography, three counts of distribution of child pornography, two counts of receipt of child pornography, and seven counts of possession of child pornography.
During today’s proceedings, Dates pled guilty to one count of distribution of child pornography, and admitted distributing child pornography on June 15, 2011. Dates has been in federal custody since his arrest, and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of HSI and is being prosecuted by Assistant U.S. Attorneys Jacob Wishard and Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMOAG. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Fresno Man Sentenced for Extensive Fraudulent Bonding Scheme and Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Abel Martin Carreon, 57, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to five years and five months in prison for one count of mail fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Carreon was also ordered to pay $1,253,000 in restitution.
According to court documents, between April 2005 and May 2011, Carreon carried out a scheme to defraud the United States and private companies seeking to perform contracted work for the United States. Through his company Tripartite Escrow Corporation (TEC), he offered bonding services to prospective government contractors throughout the United States that included bid bonds to secure a bid on a government contract and performance and payment bonds to insure the work on a government contract.
Surety bonds are required for certain federal government contracts. If a contractor defaults, the surety bonds compensate the government for the financial loss incurred. To be acceptable under federal regulations the bonding company must pledge acceptable assets with a value equal to or exceeding the amount of each bond, and submit a sworn affidavit disclosing the identity of the surety and verifying the existence and acceptability of the assets under penalty of prosecution.
According to the plea agreement, the bond packages Carreon submitted contained false statements and fraudulent documents. He pledged as collateral common stock that did not exist, was worth substantially less than represented, or was pledged across multiple bonds without full disclosure. He used forged notary stamps and notary signatures and other forged signatures on the bond documents.
Once the false and fraudulent performance and payment bonds were accepted by the contracting government agency and work began under the contract, the government would make payments on the contract to the contractor, including Carreon’s bond premium. The United States and government contractors paid Carreon for false and fraudulent payment and performance bonds, which resulted in a loss of approximately $1,250,000.
"As evidenced by the sentence handed down against Able Carreon, the Department of Transportation Office of Inspector General (DOT OIG) remains steadfast in its commitment to maintaining the integrity of the Nation’s transportation infrastructure programs," said William Swallow, regional Special Agent-In-Charge, DOT OIG. "Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
“Today’s sentencing of Abel Martin Carreon reaffirms the Department of Homeland Security (DHS), Office of Inspector General’s (OIG) commitment to aggressively pursue, investigate, and hold accountable those who commit fraud against DHS and the Federal Emergency Management Agency. Protecting the integrity of DHS programs and operations remains one of the highest priorities of DHS OIG. We would like to thank our law enforcement partners and the U.S. Attorney’s Office for their outstanding efforts in this matter.” Roger T. Merchant, Special Agent in Charge, DHS OIG, Los Angeles Field Office.
This case was the product of an investigation by the U.S. Department of Transportation, Office of Inspector General; the U.S. Department of the Interior, Office of Inspector General; the U.S. Department of Defense, Office of Inspector General; the U.S. Army, Criminal Investigation Command; the U.S. Air Force, Office of Special Investigations; the Defense Criminal Investigative Service; the U.S. Department of Agriculture, Office of Inspector General; the Department of Homeland Security, Office of Inspector General; and the U.S. General Services Administration, Office of Inspector General. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.
Frederick Man Arrested for Alleged Fire Bombing of Loudoun County Department of Community Corrections BuildingRead the Press Release
ALEXANDRIA, Va. – Jonathan Ernesto Godoy, 25, of Frederick, Maryland, made his initial appearance in federal court today on charges of using a destructive device during or in relation to the arson of the Loudoun County Department of Community Corrections building.
According to court documents and court proceedings, in the fall of 2012 Godoy was on supervised probation in Loudoun County stemming from possession of narcotics charges. In danger of violating his conditions of probation due to missed appointments, adulterated urine samples, and positive drug tests, Godoy, along with a co-conspirator, allegedly made two destructive devices using glass bottles, gasoline, and scraps of cotton t-shirt, commonly known as “Molotov cocktails,” and attempted to throw the devices into Godoy’s probation officer’s window.
According to court documents, at least one of the devices exploded inside of the Loudoun County Department of Corrections building and caused severe fire damage. The fire, which occurred during the early morning hours of Nov. 14, 2012, caused such destruction that the occupants of the Corrections building had to move to an alternate location.
Godoy faces a mandatory minimum of 30 years in prison and a maximum penalty of life in prison if convicted. 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; Linda Hale, Chief Fire Marshal, Loudon County Department of Fire, Rescue, and Emergency Management; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Godoy’s initial appearance before U.S. District Magistrate Judge Theresa Buchanan.
This case was investigated by the Loudoun County Fire Marshal’s Office and the ATF. Assistant U.S. Attorneys Michael Rich and Zach Terwilliger are prosecuting the case, with assistance from the Loudoun County Commonwealth Attorney’s Office.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-mj-382.
Four Men Charged with Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
Update: The indictment against one of the defendants below, Iain Nigel MacKeller, was dismissed without prejudice on May 22, 2022.
An indictment was recently unsealed in Houston charging four men with various offenses based on their roles in smuggling pet products with counterfeit labels into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Catherine A. Hermsen of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Missouri, Field Office and Special Agent in Charge Brian M. Moskowitz of the U.S. Immigration and Customs Enforcement Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Iain Nigel MacKellar, 58, of England; Lam Ngoc Tran, aka Mark Tran, 40, of Fountain Valley, California; Allen Smith, 49, of Phoenix; and William Humphreys, 58, of Laguna Hills, California, were indicted on July 9, 2015. They are charged with conspiracy to commit wire fraud, mail fraud and trafficking in counterfeit labels, and smuggling goods into the United States. Mackellar and Tran also are charged with additional counts of wire fraud, mail fraud, trafficking in counterfeit labels and smuggling. The defendants were suspected members of one of the largest known groups of importers of counterfeit packaged pet products.
Smith turned himself in to authorities this morning and made his initial appearance before U.S. Magistrate Judge Mary Milloy. Humphreys and Tran were taken into custody in Phoenix and in California, respectively. Tran made his initial appearance in Houston on July 29, while Humphreys is set to appear tomorrow before Judge Milloy. MacKellar is considered a fugitive and a warrant remains outstanding for his arrest.
The indictment alleges the defendants smuggled veterinary products that were not manufactured for the U.S. market into the United States for distribution under false labels, including Frontline and Frontline Plus pesticides manufactured by Merial Pharmaceutical Company (Merial). In some cases, the defendants allegedly imported the products into the U.S. under the pretense that the products were destined for use by charitable organizations, but instead distributed the products to large retail outlets for commercial sale, according to the indictment.
Merial did not participate in or authorize the alleged unlawful conduct. All known counterfeit veterinary products have been removed from store shelves.
The charges contained in an indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the FDA-OCI, HSI and the Environmental Protection Agency. The case is being prosecuted by Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jennifer Lowery and Kebharu Smith of the Southern District of Texas. The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
Four Men Charged with Trafficking in Pet Products with Counterfeit LabelsRead the Press Release
HOUSTON - An indictment was recently unsealed charging four men with various offenses based on their roles in smuggling pet products with counterfeit labels into the United States.
U.S. Attorney Kenneth Magidson of the Southern District of Texas, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Catherine A. Hermsen of the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI) Kansas City, Missouri, Field Office and Special Agent in Charge Brian M. Moskowitz of the U.S. Immigration and Customs Enforcement Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.
Iain Nigel MacKellar, 58, of England; Lam Ngoc Tran, aka Mark Tran, 40, of Fountain Valley, California; Allen Smith, 49, of Phoenix; and William Humphreys, 58, of Laguna Hills, California, were indicted on July 9, 2015. They are charged with conspiracy to commit wire fraud, mail fraud, trafficking in counterfeit labels and smuggling goods into the United States. Mackellar and Tran also are charged with additional counts of wire fraud, mail fraud, trafficking in counterfeit labels and smuggling. The defendants were suspected members of one of the largest known groups of importers of counterfeit packaged pet products.
Smith turned himself in to authorities this morning and made his initial appearance before U.S. Magistrate Judge Mary Milloy. Humphreys and Tran were taken into custody in Phoenix and in California, respectively. Tran made his initial appearance in Houston on July 29, while Humphreys is set to appear tomorrow before Judge Milloy at 10:00 a.m. MacKellar is considered a fugitive and a warrant remains outstanding for his arrest.
The indictment alleges the defendants smuggled veterinary products that were not manufactured for the U.S. market into the U.S. for distribution under false labels, including Frontline and Frontline Plus pesticides manufactured by Merial Pharmaceutical Company (Merial). In some cases, the defendants allegedly imported the products into the U.S. under the pretense that the products were destined for use by charitable organizations, but, instead, distributed the products to large retail outlets for commercial sale, according to the indictment.
Merial did not participate in, or authorize, the alleged unlawful conduct. All known counterfeit veterinary products have been removed from store shelves.
The charges are the result of an investigation conducted by FDA-OCI, HSI and the Environmental Protection Agency. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Lowery and Kebharu Smith of the Southern District of Texas and Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). The U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab provided significant assistance.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former TSA Agent Charged with Production of Child PornographyRead the Press Release
HOUSTON – A 27-year-old man from the North Houston area appeared in federal court this morning on charges of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Christopher Lynn Persky was arrested over the weekend upon the filing of a federal criminal complaint alleging he produced child pornography.
This morning, Persky made an initial appearance before U.S. District Judge Mary Milloy, at which time he was ordered temporarily into custody pending a probable cause and detention hearing set for Wednesday, Aug. 5, 2015, at 10:00 a.m.
Court documents allege that Persky claimed to work for the Department of Homeland Security – Transportation Security Administration (TSA). At the hearing today, Persky told the court he has now been fired.
According to the allegations, an individual identified online as CHRISPYTWEAK had sent images of child erotica to an undercover agent using the chat feature on a known child pornography site. At that time, Persky provided his full name and further claimed to work for TSA, according to the complaint.
The charges allege that he took sexually explicit photographs of a minor male under the age of five. According to the complaint, Persky took the images and was to send them to another individual with whom he was communicating in exchange for more images of child pornography.
The criminal complaint further alleges that while at his previous residence in Spring, Persky allegedly took partially nude images of a minor relative’s female friend while she was sleeping. Persky also allegedly took photos of a female relative as she was getting out of the shower to show to his online child pornography community.
If convicted, Persky faces a minimum of 15 and up to 30 years in federal prison.
The charges are the result of an investigation by Homeland Security Investigations.
This case, prosecuted by Assistant U.S. Attorneys Sherri Zack and Kim Leo, 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.Former Saline County Sheriff Pleads Guilty to Wire FraudRead the Press Release
Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that Bruce Pennington, age 64, of Fayetteville, Arkansas, the former Saline County Sheriff, pleaded guilty to a one-count Information charging him with wire fraud for using money from his campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa card.
Pennington held the office of Saline County Sheriff from 2008 until he resigned on October 1, 2013. At his plea hearing in open court on August 3, 2015, before U.S. District Court Judge Kristine G. Baker, and in his plea documents in Case No. 4:15CR00132 KGB, Pennington admitted the following conduct:
On or about December 14, 2007 PENNINGTON opened the "Bruce Pennington Sheriff Campaign Account" bank account at Alcoa Community Federal Credit Union (hereinafter, "campaign account"). PENNINGTON had sole signatory authority over the campaign account. The campaign account was used to fund PENNINGTON’s campaigns, including his 2010, 2012 and 2014 re-election campaigns for Saline County Sheriff. Contributors paid by checks payable to PENNINGTON’s campaign, which were deposited into the campaign account. Between June 1, 2011 and September 9, 2013, campaign deposits were made into the campaign account totaling $36,661.80.
During the Saline County Sheriff’s elections in 2010 and 2012, candidates for county office were required by Arkansas law to
file Campaign Contribution and Expenditure Reports ("CCE reports") with the county clerk to evidence compliance with campaign finance disclosure laws and provide a public record of all contributions and expenditures of a candidate’s campaign. Arkansas Code Annotated § 7-6-203(g)(1) provides, in part, that "a candidate shall not take any campaign funds as personal income." Arkansas Code Annotated § 7-6-203(g)(4)(A) provides, the "a candidate who uses campaign funds to fulfill any commitment, obligation, or expense that would exist regardless of the candidate’s campaign shall be deemed to have taken campaign funds as personal income." Campaign funds may not be used to pay personal expenses. Personal expenses include household food items and supplies, clothing, mortgage, rent, or utility payments, among other items.
PENNINGTON converted contributions for his 2012 and 2014 campaigns to his personal use and profit, and concealed his conversion of campaign funds from the public, the county clerk, and law enforcement authorities. More specifically, PENNINGTON filed CCE reports for the 2012 campaign on or about May 12, 2012; July 2, 2012; October 30, 2012; and December 31, 2012, with the Saline County Clerk. PENNINGTON withdrew from the 2014 Saline County Sheriff’s race before CCE reports came due. In those reports, which were available to the public, including contributors and prospective contributors, PENNINGTON represented that the contributions received were used to pay for campaign related expenses and that all expenditures of campaign funds had been reported. These representations on PENNINGTON’s CCE reports were false.
In fact, PENNINGTON issued checks and withdrew cash from the campaign account to pay for personal items and expenses. These personal items and expenses included mortgage payments, utility bills, household groceries, casino visits, and personal charges on his Saline County Sheriff’s Office First Security Bank Visa (Sheriff’s Office Visa), among other items. Between June 1, 2011 and September 9, 2013, PENNINGTON withdrew approximately $20,969 in cash from the campaign account, and effected a $1000 transfer from his campaign account to his personal bank account, to pay for personal items and expenses. Between June 1, 2011 and September 9, 2013, PENNINGTON made expenditures by checks in the amount of approximately $378.09 from the campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa.
The checks written by PENNINGTON from the campaign account to pay for personal items and expenses charged to his Sheriff’s Office Visa were written to "Visa" and delivered to a representative of the Saline County Sheriff’s Office. That representative deposited those checks at First Security Bank, Benton, Arkansas. First Security Bank in Benton, Arkansas, then wired those funds to Visa’s account at Wells Fargo Bank in Tampa, Florida.
On or about January 1, 2013, PENNINGTON charged $231.67 in skin-care products to his Sheriff’s Office Visa. On or about January 30, 2013, PENNINGTON wrote a check for $231.67 from his campaign account to Visa and delivered this check to a representative of the Saline County Sheriff’s Office. That representative deposited the check at First Security Bank, Benton, Arkansas, which wired those funds to Visa’s account at Wells Fargo Bank in Tampa, Florida.
In the plea agreement, Pennington stipulated to a sentencing enhancement for abusing a position of public trust. The advisory U.S. Sentencing Guidelines also take into account the dollar amount of the fraud and the number of victims involved in the scheme. The plea agreement also provides that the parties will jointly recommend that any sentence of imprisonment will run concurrent with any sentence imposed in Saline County Circuit Court Case No. 63CR-14-313; however, that recommendation, even if made by the federal court, is not binding on the state court.
"Former Sheriff Pennington betrayed the trust placed in him by the people of Saline County," Thyer said. "Citizens of the Eastern District of Arkansas deserve to know that their law enforcement members are trustworthy, law-abiding citizens and when they are not, they will be held accountable for their illegal actions."
"Pennington defrauded his constituents by using money donated to his election campaign for his own personal use," Resch said. "Along with our federal, state and county partners, we will continue to pursue all such political corruption."
The maximum potential penalty for a violation of Title 18, United States Code, Section 1343 (wire fraud) is up to twenty years imprisonment, up to three years supervised release, and a fine of up to $250,000. Judge Baker will set a sentencing hearing date after a Presentence Investigation Report has been completed.
The case was investigated by the Federal Bureau of Investigation’s Ark Trust Public Corruption Task Force. It is being prosecuted by Assistant U.S. Attorney Julie Peters, in cooperation with Faulkner County Prosecuting Attorney Cody Hiland who is serving as a Special Prosecutor in in Saline County Circuit Court Case No. 63CR-14-313.
Former Owner of Mortgage Lending Company GuiltyRead the Press Release
Submitted fraudulent funding requests for nonexistent mortgage loans
LOUISVILLE, Ky. – The former owner of an Orange County, California mortgage lending company pleaded guilty to bank fraud today, in U.S. District Court, for devising a scheme to defraud National City Bank of $12,744,678 of money under its control, by submitting fraudulent funding requests for nonexistent mortgage loans announced United States Attorney John E. Kuhn, Jr.
In 2007 and 2008, Brady Bunte owned and operated Trust One Mortgage, a mortgage lender located in Orange County, California. Trust One Mortgage funded mortgages by maintaining a warehouse line of credit with various banks, including National City Bank. National City Bank was a federally insured financial institution. Its warehouse lending offices were located in Louisville, Kentucky. As a warehouse lender, National City Bank provided revolving, short-term loans, known as warehouse lines of credit, to mortgage lenders.
In 2007 and 2008, Trust One Mortgage maintained a revolving warehouse line of credit with National City Bank to fund mortgages. In order to obtain funding from National City Bank for a particular mortgage, Trust One Mortgage submitted a funding request to National City Bank’s warehouse lending offices in Louisville, Kentucky. Once National City Bank received the funding request via fax or electronic request, it transferred the funds to the account specified by Trust One Mortgage in the funding request. National City Bank required Trust One Mortgage to pay off each specific loan within a set number of days. As part of its business, Trust One Mortgage sold or attempted to sell the individual mortgages to third-party investors.
From March 2007 through November 2008, Bunte caused Trust One to submit fraudulent funding requests on its warehouse line of credit to National City Bank. The fraudulent funding request caused National City Bank to incur a loss of $12,744,678.16.
Bunte was charged in a sealed indictment on September 18, 2014 and arraigned on the charge on September 29, 2014, in U.S. District Court located in Santa Ana, California.
Bunte is scheduled for sentencing before Chief District Judge Joseph H. McKinley Jr. on November 2, 2015 at 11am in Louisville.
This case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).