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Friday 19 June 2015
Houston Woman Convicted for Sex Trafficking of a Minor in Two-Day Bench TrialRead the Press Release
HOUSTON – A bench trial concluded late yesterday ultimately convicting Luisa Vargas, 53, a legal permanent resident residing in Houston of sex trafficking of a minor and conspiracy to harbor illegal aliens, announced U.S. Attorney Kenneth Magidson.
The evidence at trial proved that in or about February 2012 until approximately May 2013, Vargas employed women and a girl less than age 18 as prostitutes in the Westview apartments used as a brothel. These women and young girl were instructed as to how much money to charge their clients for commercial sex. Approximately half of the proceeds were given to Vargas. As a general practice, the price paid was $40 for 15 minutes of sex. Vargas knew that most, if not all, of the ladies employed for the purpose of prostitution were aliens illegally within the United States.
United States District Judge Lynn N. Hughes handed down the conviction and set sentencing for Sept. 21, 2015. At that time, she faces at least 10 years and up to life in prison and a possible $250,000 maximum fine.
Co-defendants Dolores Vargas, Blasina Vargas and Ignacio Escandon pleaded guilty in March 2015 to conspiracy to engage in sex trafficking of minors and will be sentenced Oct. 19, 2015.
All will remain in custody pending their sentencing hearings.
The charges were the of an investigation by Homeland Security Investigations, FBI, Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorneys Doug Davis and Julie Searle prosecuted the case.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAROL DAVID SOSA-PALMA, age 34, a citizen of Honduras, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, JAROL DAVID SOSA-PALMA reentered the United States after having been previously deported on June 21, 2013. If convicted, JARONL DAVID SOSA-PALMA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Jarol David Sosa-Palma Indictment (732.89 KB)
Highland Resident Pleads Guilty to Securities Fraud in Connection with HelpMed, Inc., A Company He OwnedRead the Press Release
SALT LAKE CITY – Ryan Lynn Cook, age 35, of Highland, Utah, pleaded guilty Thursday morning in federal court to one count of securities fraud in connection with an investment scheme involving his company, HelpMed, Inc.
Cook was president and owner of HelpMed, a Utah company organized in April 2011 in Utah. He represented to potential investors that HelpMed provided medical recruiting services for medical facilities to hire temporary doctors and other medical providers.
According to a Felony Information filed Wednesday, Cook represented to potential investors that he was willing to sell a 10 percent ownership interest in his company through the issuance of company stock in exchange for $2 million. The Felony Information alleges that starting around February 2015 and continuing to May 11, 2015, Cook devised a scheme to defraud investors and took steps to execute the scheme through the use of materially false representations.
As a part of the his guilty plea Thursday, Cook admitted that he represented to investors that HelpMed earned approximately $3.8 million in revenue in January and February 2015, when in fact, HelpMed had no revenue. He represented there were more than 12,000 health care providers in HelpMed’s system ready to be connected with hospitals and clinics, when in fact, the system contained approximately 100 health care providers. He also represented there were more than 8,000 hospitals and clinics in the company’s system, when in fact, the system contained about five hospitals.
He also represented to potential investors that HelpMed’s software developer had signed a non-disclosure agreement with a senior official from the Department of Labor and was being paid $40,000 per month on the agreement, when in fact, there was no such agreement.
As a part of the plea agreement, Cook admitted sending an email in early March to potential investors containing an untrue statement of material facts with willful intent to defraud them saying, “We are continuing to grow more clients everyday so as jobs get filled new ones come in as hospital systems now have to use us to remain competitive . . . At our current rate we will hit more than 11,000 provider openings this year.”
Documents filed in court allege Cook directly solicited two investors and received approximately $2 million from about five individuals who invested in his scheme.
According to a complaint filed in the case, investors demanded Cook provide them access to HelpMed’s server. Once they obtained server access, associates of the investors determined there were not thousands of hospitals and doctors in the system, but only a few hospitals and a few dozen doctors.
According to the complaint, an investor confronted Cook about the lack of purported clients. Cook claimed the data had been moved from the server. Cook also told the investor that FBI agents had shown up at his door, that his office had been bugged and that his cell phone had been tapped by the federal government.
Cook was arrested on a federal warrant after a May 11, 2015, incident in the west desert. Cook drove to the west desert and called one of his investor victims claiming he was being followed, a person identified in the complaint as the “Software Developer” had been kidnapped by the government, and that the government had stolen his truck. Later, Cook asked the investor to come out to the west desert and take his (Cook’s) gun from him or he was going to do something drastic, according to the complaint. The investor called 911 and Cook was subsequently arrested.
As part of the plea agreement executed in court Thursday morning, federal prosecutors and Cook agreed to recommend the court impose a 24-month sentence to be followed by two years of supervised release. Cook agreed to pay restitution in the amount of $1,974,250 to the victims in the case. He also agreed to forfeit a 2015 Lexus RC; cash seized from a bank account; and real property located in Highland, Utah, in addition to a money judgment of $1,974,250. He acknowledged that the money, car, and property were proceeds of illegal conduct or helped to facilitate illegal conduct.
U.S. Magistrate Judge Dustin Pead, who presided at the change of plea hearing, set sentencing in the case for Sept. 9, 2015, at 2:30 p.m.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by the FBI.
Gulf Breeze Attorney Indicted for Bank Fraud and Money Laundering ChargesRead the Press Release
PENSACOLA, FLORIDA – Richard Michael Colbert, 54, of Pensacola Beach, was charged by a federal grand jury with 15 felony counts, including one count of conspiracy to commit bank fraud and/or mail fraud affecting a financial institution, four counts of false statement to a federally insured financial institution, one count of theft, embezzlement or misapplication by a person connected with a financial institution, and nine counts of money laundering. The indictment, unsealed today, was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that Colbert, while the manager of Beach Title Services, a subsidiary of Beach Community Bank, participated in a scheme to defraud and obtain money and/or property by fraudulent means from federally insured financial institutions. As a part of the scheme, Colbert allegedly signed and submitted false settlement statements to Bank of America and Beach Community Bank. The indictment also alleges that Colbert signed and submitted a false settlement statement to the now defunct GulfSouth Private Bank, so former builder Lawrence Wright could obtain a loan. The indictment further alleges that Colbert, while acting as an escrow agent for Beach Community Bank, embezzled and misapplied funds being held at Beach Community Bank. Thereafter, Colbert allegedly conducted a series of financial transactions thereby laundering the embezzled funds.
Colbert was arrested this morning, and his initial appearance was this afternoon at the U.S. Courthouse in Pensacola, Florida. Trial will be scheduled at Colbert’s arraignment next Wednesday, June 24.
The case is being investigated by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation-Office of Inspector General, and the Okaloosa County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Office
(850) 216-3854, [email protected]Grand Jury Returns 45-Count Rico Indictment Against Violent New Orleans GangRead the Press Release
U.S. Attorney Kenneth A. Polite announced that yesterday, an Indictment was unsealed charging members of a violent New Orleans street gang known as “the 39ers” with violating federal racketeering statutes and committing twelve homicides as well as multiple violations of federal drug and firearm laws. The defendants include: LEROY PRICE, a/k/a “Lee,” age 29; ASHTON PRICE, a/k/a “Pound,” age 24; ALONZO PETERS, a/k/a “Woo-dee,” age 25; JASMINE PERRY, a/k/a “J-Real,” a/k/a “Rell,” age 24; McCOY WALKER, a/k/a “Rat,” age 25; TERRIOUES OWNEY, a/k/a “T-Red,” age 28; EVANS LEWIS, a/k/a “Easy,” age 23; CURTIS NEVILLE, a/k/a “Pooney,” a/k/a “Poonie,” age 22; RICO JACKSON, a/k/a “Freaky,” age 33; TYRONE KNOCKUM, a/k/a “T-Bone,” age 24; SOLOMON DOYLE, a/k/a “Black,” a/k/a “Sol,” age 29; WASHINGTON McCASKILL, a/k/a “Big Wash,” age 36, and DAMIAN BARNES, a/k/a “AD,” age 27.
The 45-count indictment charges that the “39ers” gang was formed through an alliance between the “G-Strip gang,” which operated in the Ninth Ward on Gallier Street, and the “3NG” gang, which operated on or near the corner of Third Street and Galvez Street in the City of New Orleans, with the purpose of increasing their drug trafficking and ability to commit crimes of violence. Each defendant is alleged to have participated in at least one homicide.
All defendants are facing a mandatory life sentence if convicted of committing a murder in furtherance of racketeering activity, in violation of Title 18, United States Code Section 1959.
The Indictment is a product of an ongoing investigation into the drug trafficking and violent crime by this and other New Orleans gangs. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Federal Bureau of Investigations’ New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, and Firearms, and the Orleans Parish District Attorney’s Office.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
Assistant United States Attorneys Maurice Landrieu, Myles Ranier, and Sharan Lieberman are in charge of the prosecution.
39ers Indictment.pdf (2.31 MB)
Glen Burnie Man Sentenced to 18 Months in Prison for Stealing $4 Million from a CharityRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced William Peters, age 64, of Glen Burnie, Maryland, today to 18 months in prison followed by three years of supervised release for conspiring to commit mail and wire fraud, and conspiring to commit money laundering. Judge Motz also entered an order that Peters forfeit and pay restitution of $4 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea, Peters was a board member of a charity that provided financial support to Native American communities and individuals. Peters and coconspirator Brian Brown, the former president of the charity, falsely represented that if the charity funded Charity One, Inc., a nonprofit corporation Brown created and controlled to effectuate the fraud scheme, Charity One would use the funds for scholarships for American Indians. Peters and Brown, however, intended to use the funds for their own benefit.
Peters used his board membership position to cause the charity to execute a series of endowment agreements in which the charity agreed to fund Charity One with $1 million per year for five years. Charity One purportedly agreed to maintain and invest the funds for scholarships for American Indians.
In fact, however, Peters and Brown distributed the proceeds of their fraud scheme to themselves. To do so, Peters created and controlled a corporation called August First, Inc., which he used to receive and distribute to himself $950,244 of the fraud proceeds. Brown created and controlled a corporation called Aria Inc. to receive and distribute to himself $3,011,751 of the proceeds. Peters and Brown falsely characterized the funds as consulting fees on their federal income tax returns filed for 2006 to 2009 in order to conceal the source of these funds.
Peters has agreed that the actual loss to the charity is $4 million.
Brian J. Brown, age 58, of Beaverton, Oregon previously pleaded guilty to his participation in the conspiracy and was sentenced in federal court in Oregon on May 7, 2015 to 37 months in prison.
Today’s announcement is part of the efforts undertaken 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.
United States Attorney Rod J. Rosenstein commended the FBI and IRS Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Seth D. Uram for the District of Oregon and Jefferson M. Gray for the District of Maryland, who prosecuted the case.
Former Tamaulipas Governor Indicted in Money Laundering Scheme with Brother-in-LawRead the Press Release
CORPUS CHRISTI, Texas – An indictment has been officially unsealed charging Eugenio Hernandez Flores, the former governor of Tamaulipas, Mexico, with conspiring to launder monetary instruments and aiding and abetting the operation of an unlicensed money transmitting business, announced U.S. Attorney Kenneth Magidson.
Hernandez Flores, 57, was indicted along with Oscar Gomez Guerra, 43, on May 27, 2015. Following a motion filed by the United States, the court officially unsealed that indictment late yesterday.
Hernandez Flores was the governor of the Mexican State of Tamaulipas from 2005 to 2010. Gomez Guerra is married to his sister.
The U.S. government intends to seek a personal money judgment from both men in the amount of $30 million. Also included in the indictment is a notice of criminal forfeiture regarding four real properties, three of which are located in McAllen and are valued at more than $2 million. The other property is located in Austin.
If convicted of the money laundering conspiracy, the two face up to 20 years in federal prison and a fine of up to $500,000 (or twice the value of the monetary instrument or funds involved in the transactions or both). They will also face up to five years in federal prison and a $250,000 maximum fine if convicted of operating an unlicensed money transmitting business.
Both men are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 713-693-3000.
The investigation leading to the indictment was conducted through OCDETF in Houston, San Antonio, Brownsville, Laredo, McAllen and Corpus Christi. The DEA, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, FBI, and the U.S. Marshals Service conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Jesse Salazar and Julie K. Hampton.
Former State Employee Sentenced 13 Years for Receiving Child PornographyRead the Press Release
LONDON — A former state employee in London, Ky., who previously admitted to downloading images of child pornography from the internet while at work, has been sentenced to 13 years in federal prison.
On Thursday, U.S. District Judge Gregory Van Tatenhove sentenced 51 year-old Gordon Bowers for receiving child pornography. Under federal law, Bowers must serve at least 85 percent of his prison sentence, and following his release, he will be under the supervision of the U.S. Probation Office for 15 years. Judge Van Tatehove also ordered Bowers to pay $35,000, in restitution to multiple victims, for costs associated with psychological counseling services.
According to his plea agreement, in February of 2014, law enforcement identified several child pornography images and videos online. Authorities traced the source of the images to a computer at the London State Office Building. Agents executed a search warrant at Bowers’ office and found over 40,000 images of child pornography on his state-issued computer and other electronic storage devices. The images depicted children engaged in sexually explicit conduct.
Bowers pleaded guilty in January of this year. He worked as an environmental scientist.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky;, Jack Conway, Kentucky Attorney General;, and Gary Hartwig, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), jointly made the announcement.
The investigation was conducted by the Office of the Kentucky Attorney General and HSI. Assistant U.S. Attorney Kathleen Coffey prosecuted this case on behalf of the federal government.
Former Restaurant Owner Convicted at Trial for Arson and Insurance FraudRead the Press Release
Owner’s Son Convicted of Conspiracy and Arson
ALEXANDRIA, Va. – Lawrence Wayne Reese, 56, formerly of Ft. Belvoir, Virginia, was convicted by a jury yesterday of nine separate offenses, including arson, use of fire in commission of another federal offense, and multiple counts of fraud related to the submission of Reese’s fraudulent insurance claim. Lawrence Reese’s son, Lance Terrell Reese, 28, formerly of Ft. Belvoir, Virginia, was also convicted of arson and conspiracy to commit arson following a jury trial in which he was a co-defendant with his father.
The Reeses were indicted on February 12, 2015, for their respective roles in the February 6, 2013, arson of the “Sub Shop,” which was located on Richmond Highway in Lorton, Virginia. Lawrence Reese owned and operated the business. Through over five hundred hours of financial analysis performed by an ATF Senior Forensic Auditor, the United States proved at trial that the business was financially insolvent. Specifically, Lawrence Reese’s business reported losses of approximately $60,000 on its 2012 U.S. income tax return. Due to financial strain, Lawrence Reese recruited his son, co-defendant Lance Reese, and Horace Thompson to burn down the Sub Shop. Horace Thompson was previously tried and convicted in the Eastern District of Virginia.
The evidence presented at trial established that Lawrence Reese and Horace Thompson, through the use of the accelerant gasoline, caused an explosion followed by a fire at Lawrence Reese’s business. The fire destroyed the business and left Lawrence Reese and Horace Thompson badly burned. Following the fire, Lawrence Reese submitted a claim for approximately $200,000 to his insurance company. His submission of this claim, for an intentionally set fire, resulted in his commission of multiple counts of mail and wire fraud.
Lawrence and Lance Reese will be sentenced on September 25, 2015. Lawrence Reese faces a mandatory minimum of ten years and a maximum of twenty years of imprisonment and Lance Reese faces a mandatory minimum of five years and a maximum of ten years in prison at sentencing. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants 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; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the verdict was accepted by U.S. District Judge Liam O’Grady.
This case was investigated by the Fairfax County Police Department’s Homicide Unit and the Arson Group in ATF’s Washington Field Division, with special assistance from ATF’s Financial Investigative Services Division. Assistant U.S. Attorneys Michael Rich and Zachary Terwilliger are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-32.
Former President of Law Enforcement Labor Union Pleads Guilty in Manhattan Federal Court to Defrauding Union of FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Andriana Vamvakas, the New York District Director of the U.S. Department of Labor’s Office of Labor‑Management Standards (“DOL-OLMS”), announced today that JOHN EARVIN, the former president of the United Federation of Law Enforcement Officers (“UFLEO” or the “Union”), pled guilty to an Indictment charging him with wire fraud. The UFLEO represents Special Inspectors employed by the Metropolitan Transportation Authority of New York (“MTA”). EARVIN pled guilty before U.S. District Judge Paul A. Engelmayer.
According to the allegations in the Indictment and statements made in court:
From February 2007 through April 2010, EARVIN was the Union’s president, supervising the affairs of the Union and managing the Union’s finances, including through sole control of the Union’s bank account (the “Account”). Through his presidency, EARVIN perpetrated a scheme to defraud the Union by diverting Union dues payments deposited into the Account for his own benefit, principally by making hundreds of ATM withdrawals at off-track betting facilities and other locations and making personal use of the funds. In perpetuating the scheme and preventing its discovery, EARVIN repeatedly lied to Union members about the Account by, for example, claiming that he could not provide an accounting of funds to Union members because an independent auditor was reviewing the Union’s finances. As a result of the scheme, EARVIN defrauded the Union and its members of approximately $28,012.
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EARVIN, 67, of New Rochelle, New York pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The Indictment also seeks forfeiture of crime proceeds. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
EARVIN is scheduled to be sentenced before Judge Engelmayer on October 22 at 10 a.m.
U.S. Attorney Preet Bharara thanked the DOL-OLMS for its work in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen and Jennifer Gachiri are in charge of the prosecution.
Former Deputy Mayor of the Village of Spring Valley Sentenced to Three Years in Prison for Role in Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSEPH DESMARET was sentenced yesterday in White Plains federal court to three years in prison for his participation in a scheme in which he accepted over $10,000 in cash bribes in exchange for his votes, as a member of the Spring Valley Board of Trustees, to sell Village land and steer a state-funded transportation contract to a real estate development company. DESMARET was sentenced before U.S. District Judge Kenneth M. Karas, before whom DESMARET pled guilty on January 29, 2014.
Manhattan U.S. Attorney Bharara stated: “Joseph Desmaret’s sentence is a reminder that every politician, no matter how high the office he holds, must act only in the interest of the public he serves.”
According to the Indictment and other documents filed in this case:
DESMARET accepted approximately $10,500 in cash bribes from an undercover FBI agent (“UC”) and a cooperating witness in exchange for his vote in favor of a sale of land owned by Spring Valley to a company he believed was controlled by the UC. In addition, DESMARET agreed to steer to the UC’s company New York State funding for road work associated with the project that he believed the UC’s company was developing.
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In addition to the prison term, DESMARET, 57, formerly of Monsey, New York, was also sentenced to two years of supervised release, and ordered to forfeit $10,500. Noramie Jasmin, DESMARET’s co-defendant and the then-mayor of Spring Valley, New York, was convicted for her role in the bribery scheme in April 2015 and is currently scheduled to be sentenced by Judge Colleen McMahon on August 7, 2015.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation and Rockland County District Attorney’s Office.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant U.S. Attorneys Douglas B. Bloom and Justin Anderson are in charge of the prosecution.
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Former CEO Pleads Guilty to Bribery and Fraud Scheme Involving Red Light Camera ContractsRead the Press Release
A former chief executive officer of a red light camera vendor pleaded guilty today to participating in an eight-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
Karen L. Finley, 55, of Cave Creek, Arizona, pleaded guilty before U.S. Magistrate Judge Terence P. Kemp of the Southern District of Ohio to a one-count information charging her with conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley’s sentencing hearing will be scheduled at a later date.
From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company. As part of her plea agreement, Finley admitted that, between 2005 and 2013, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus and Cincinnati through a consultant retained by the company. According to admissions made in connection with her plea, Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a photo red light enforcement contract with the City of Columbus. Finley also admitted she and her co-conspirators concealed the true nature and source of the payments by the consultant’s submission and the company’s payment of false invoices for “consulting services,” which funds the consultant then provided to the campaigns of the elected public officials.
The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.
Finley Plea Agreement
Former CEO Pleads Guilty to Bribery and Fraud Scheme Involving Red Light Camera ContractsRead the Press Release
WASHINGTON – A former chief executive officer of a red light camera vendor pleaded guilty today to participating in an eight-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
Karen L. Finley, 55, of Cave Creek, Arizona, pleaded guilty before U.S. Magistrate Judge Terence P. Kemp of the Southern District of Ohio to a one-count information charging her with conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley’s sentencing hearing will be scheduled at a later date.
From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company. As part of her plea agreement, Finley admitted that, between 2005 and 2013, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus and Cincinnati through a consultant retained by the company. According to admissions made in connection with her plea, Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a photo red light enforcement contract with the City of Columbus. Finley also admitted she and her co-conspirators concealed the true nature and source of the payments by the consultant’s submission and the company’s payment of false invoices for “consulting services,” which funds the consultant then provided to the campaigns of the elected public officials.
The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.
Former Army Contracting Official Sentenced in Pentagon Bribery SchemeRead the Press Release
Manassas man, a retired Army Sergeant Major, was working as a civilian contracting official for the Army at the Pentagon
ALEXANDRIA, Va. – James Glenn Warner, 44, of Manassas, Virginia, was sentenced today to 42 months in prison, followed by three years of supervised release, for soliciting a $500,000 bribe from executives working for a private company on a contract that Warner managed out of the Pentagon. Warner was also ordered to pay $50,000 in forfeiture.
According to court documents, in October 2014, Warner made arrangements to meet with two executives of Company A, a Virginia-based company which held a five-year contract with the Department of the Army worth up to $120 million. At the meeting, which took place at a restaurant located in the Pentagon Centre in Arlington, Virginia, Warner instructed the two executives to communicate with him by typing messages into his cell phone, which was passed around the table. Warner then passed a menu to the two executives. Inside the plastic covering for the center section of the menu was a piece of paper which outlined a bribe and extortion solicitation, suggesting that if Company A paid $500,000 it would secure a contract renewal from the Department of the Army and that alleged damaging information about Company A would be destroyed. The Company A executives declined Warner’s solicitation, reported the conduct and began cooperating with law enforcement agents. Acting at the direction of law enforcement, a Company A executive then met with Warner on five subsequent occasions, paying Warner a total of $150,000 cash bribes out of the total $500,000 solicited by Warner. On Jan. 28, 2015, at the last of these meetings, Warner was arrested while in possession of $100,000 in bribe payments.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Special Agent in Charge, Mid Atlantic Field Office, Defense Criminal Investigative Service; and Frank Robey, Director, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the FBI’s Washington Field Office, the Defense Criminal Investigative Service, and the U.S. Army Criminal Investigative Command. Assistant U.S. Attorneys Kosta S. Stojilkovic and Mark D. Lytle are prosecuting the case.
Any person who believes they may have information regarding public corruption or fraud in the Northern Virginia area is encouraged to call the FBI's Northern Virginia Public Corruption Hotline at 703-686-6225, or the Defense Criminal Investigative Service Hotline at 800-424-9098, or the U.S. Army Criminal Investigative Command Hotline at 844-276-9243.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-77.
Federal Court Sentences Man as Armed Career CriminalRead the Press Release
DAVENPORT, IA - On June 18, 2015, Jonathon Adam Lamb, age 36, formerly of Bettendorf, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 180 months in prison, after pleading guilty to felon in possession of a firearm and being found an armed career criminal, announced United States Attorney Nicholas A. Klinefeldt. Lamb was also ordered to serve three years of supervised release following imprisonment, and to pay $100 towards the Crime Victims Fund.
On May 8, 2014, Lamb knowingly possessed a stolen Colt .45 caliber semi-automatic pistol. As a result of two prior Michigan convictions for unarmed robbery in 2000 and a Wisconsin conviction for burglary of a building in 2006, Lamb qualified as an armed career criminal under federal law. On May 8, 2014, Lamb knowingly possessed this same .45 caliber pistol and fired a shot breaking the front window of the Expo Mart Liquor Store on State Street in Bettendorf, Iowa. Later that morning, Lamb was found in possession of the firearm as he sat in a Dodge mini-van in Le Claire, Iowa and was arrested.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rock Island County Sheriff’s Department, the Bettendorf, Iowa, Police Department, and the Le Claire, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhoods initiative.
Federal Court Sentences Colorado Man for Conspiracy to Manufacture and Distribute MarijuanaRead the Press Release
DAVENPORT, IA - On June 18, 2015, George Peter Podes, age 44, formerly of Denver, Colorado, was sentenced by Chief United States District Court Judge John A. Jarvey to 96 months in prison, after pleading guilty to conspiracy to distribute at least 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Podes was also ordered to serve four years of supervised release after the imprisonment, and to pay $100 towards the Crime Victims Fund.
From approximately May 2011 to March 6, 2013, Podes agreed with several individuals, including Jared Fromknecht, Morgan Hermiston, Charles Williams, Harrison Summers, Jacob Aldrich, Michael Wood and Austin Iossi to manufacture and distribute marijuana. Podes was involved in the growing and manufacturing of multiple pounds of marijuana in Colorado that were provided to Jared Fromknecht for distribution in Iowa. Podes also acted as a middleman for marijuana transactions involving 20 to 40 pounds of marijuana at a time. In furtherance of this conspiracy, Podes obtained equipment and plant materials to manufacture multiple marijuana grows, for a total of in excess of 500 plants, at his Colorado residence. Podes admitted that he was responsible for at least 100 kilograms of marijuana and/or 100 marijuana plants.
This case was investigated by the Drug Enforcement Administration, the Iowa Department of Public Safety-Division of Narcotics Enforcement, the United States Postal Inspections Service, and the Davenport, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Federal Corrections Officer Arrested for Accepting BribesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Robert L. Brown (32, Clermont) on a criminal complaint charging him with receipt of a bribe by a public official. If convicted, he faces up to 15 years in federal prison. Brown was arrested late yesterday, and he has been released on a $25,000 bond pending resolution of the matter. Brown is employed as a corrections officer at the Coleman Federal Correctional Institution in Sumter County, Florida.
According to court documents, beginning in January 2015, Brown allegedly used his position as a corrections officer to begin accepting illegal monetary payments to smuggle contraband to inmates. On June 18, 2015, federal agents monitored a meeting between Brown and a cooperating witness. During that meeting, Brown accepted a $2,600 bribe for illegal items that he had already smuggled into the prison. When confronted by investigators, Brown admitted that he had illegally negotiated for $7,100 in cash payments, in return for smuggling cellular telephones, prescription pills, tobacco, and other items to federal inmates.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the U.S. Department of Justice - Office of the Inspector General, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Federal Charges Filed Against Armed Man Arrested in Penn North After Baltimore RiotsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Robert “Meech” Tucker, age 23, of Baltimore, yesterday for being a felon in possession of a gun.
The indictment 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; Baltimore City State’s Attorney Marilyn Mosby; and Baltimore Police Commissioner Anthony W. Batts.
“Police officers save lives when they detect, investigate and arrest armed criminals, and we are thankful for their proactive work,” said U.S. Attorney Rod J. Rosenstein. “People who throw bricks and bottles at police officers should be arrested and go to jail, just as they would if they attacked any other human being.”
According to the allegations in the federal indictment and documents filed in state court, on May 4, 2015, police, who were patrolling in the Pennsylvania Avenue/North Avenue section of Baltimore, the same area impacted by street riots several days earlier, noticed that Robert “Meech” Tucker was displaying characteristics of an armed gunman. When police approached Tucker, he ran and threw a Ruger Blackhawk .357 handgun to the ground, causing it to fire. Fortunately no one was hit by the bullet. When police caught Tucker, he repeatedly screamed as if he had been injured, but Tucker was not injured. Bystanders then threw bricks and bottles at police officers.
The U.S. Attorney’s Office sponsors statewide training seminars for police officers to identify characteristics of armed gunmen and safely investigate them.
Tucker faces a maximum sentence of 10 years in prison. Tucker is presently in state custody. His initial appearance in U.S. District Court in Baltimore has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew Hoff, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Federal Authorities Arrest Four Individuals for Possession of Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, a federal grand jury indicted four individuals in four separate indictments for possession of child pornography, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The first indictment alleges that, in or about the month of November 2013, William Camacho-Ríos, from San Juan, did knowingly possess materials which contained an image of child pornography, as defined in Title 18, United States Code, Section 2256(8)(A). Camacho-Ríos, did knowingly possess in his Acer laptop computer and a red thumb drive, which were not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least 44 images and 39 videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
The second indictment alleges that, on or about April 15, 2015, Luis Caraballo, from Carolina, did knowingly possess in his Hewlett Packard laptop computer, which was not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least 15 images and 120 videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
The third indictment alleges that, on or about June 10, 2015, Carlos Colón-Rivera, from Toa Baja, did knowingly possess in his Western Digital hard drive, which was not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least 200 gigabytes of images and videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
The fourth indictment alleges that, on or about November 12, 2014, Donato Ruiz-Rivera, from Quebradillas, did knowingly possess in his Gateway laptop computer and his Western Digital 320 gigabyte hard drive, which were not manufactured in Puerto Rico and which had been transported in interstate and foreign commerce, at least eighty-four (84) videos depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
“People need to understand that the minors depicted in those images and videos are re-victimized every time someone downloads and/or watches them,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to investigate and prosecute sexual predators who possess child pornography, in order to protect the vulnerable victims of these crimes, our children.”
“The FBI is committed in detecting, investigating and criminally processing these sexual deviants who rob our children of their innocence,” said Carlos Cases, Special Agent in Charge of the FBI, San Juan Field Office.
The cases are being prosecuted by Assistant U.S. Attorney Ginette Milanes. If convicted, the defendants face a mandatory minimum sentence of incarceration of ten years.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, 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 www.projectsafechildhood.gov.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Eleven Defendants Charged in Nationwide Conspiracy to Manufacture and Distribute Counterfeit 5-Hour ENERGY DrinkRead the Press Release
Defendants Sold Millions of Bottles of Counterfeit 5-Hour ENERGY Drink
U.S. Attorney Melinda Haag of the Northern District of California, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Agent in Charge Lisa L. Malinowsk of the U.S. Food and Drug Administration’s (FDA) Los Angeles Field Office of Criminal Investigations announced today that 10 people were arrested after being charged with conspiracy to traffic in counterfeit goods, conspiracy to commit criminal copyright infringement and conspiracy to introduce misbranded food into interstate commerce. The defendants were arrested on charges stemming from the illegal distribution and counterfeit of the liquid dietary supplement 5-Hour ENERGY. One further defendant was not arrested but remains subject to an arrest warrant.
According to the indictment that was unsealed yesterday, all 11 defendants were involved in the illegal repackaging and eventual counterfeiting of 5-Hour ENERGY. The supplement is owned by a group of entities referred to in the indictment as Living Essentials, which manufactured all 5-Hour ENERGY at factories in Wabash, Indiana. Living Essentials has registered and owns all 5-Hour ENERGY trademarks and a copyright, including the “5-Hour ENERGY” name and various graphical elements of the product’s labeling and packaging. The 5-Hour ENERGY trademarks and copyrighted material are displayed on every bottle of 5-Hour ENERGY and display boxes. Living Essentials does not provide licenses to any individual or entity to manufacture 5-Hour ENERGY.
According to the indictment, defendants Joseph Shayota and Adriana Shayota, his wife, through their company Baja Exporting LLC, agreed with Living Essentials to distribute 5-Hour ENERGY in Mexico. Living Essentials manufactured the liquid 5-Hour ENERGY product and provided Spanish-language labeling and display boxes to Baja Exporting. Living Essentials additionally provided Baja a complete product package under the agreement that the 5-Hour ENERGY with Spanish-language labeling was only to be distributed by Baja in Mexico. Nevertheless, according to the indictment, rather than distributing authentic 5-Hour ENERGY with Spanish-language labeling in Mexico, the defendants attempted instead to divert the product and to sell it in the United States at a higher price. After initial efforts to sell the product failed because of the Spanish-language labeling and display boxes, the defendants replaced the labeling and display boxes with counterfeit labels and boxes designed to imitate Living Essentials’ packaging in the United States. The defendants repackaged over 350,000 bottles of 5-Hour ENERGY and sold them in the United States at a price that was 15 percent lower than what Living Essentials charged for authentic United States 5-Hour ENERGY. By December 2011, Joseph and Adriana Shayota had sold off Baja’s remaining stock of the repackaged/relabeled 5-Hour ENERGY.
Also according to the indictment, by early 2012, the defendants had moved into counterfeiting the entire 5-Hour ENERGY product. The defendants manufactured the counterfeit 5-Hour ENERGY liquid at an unsanitary facility using untrained day workers. The defendants mixed unregulated ingredients in plastic vats while attempting to mimic the real 5-Hour ENERGY products.
From December 2011 through October 2012, the defendants allegedly ordered more than seven million counterfeit label sleeves and hundreds of thousands of counterfeit display boxes and placed false lot and expiration codes on the bottles and boxes. The defendants often changed the lot and expiration codes on the counterfeit bottles and boxes to parallel the valid codes being used on the authentic product.
The indictment further alleges that the defendants travelled to Guadalajara, Mexico, and hired manufacturers for the blank plastic bottles and plastic bottle caps imprinted with the Living Essentials-trademarked “Running Man” logo. They also purchased equipment, including a steam tunnel machine, to shrink-wrap the counterfeit 5-Hour ENERGY labels on the counterfeit bottles and an inkjet printer to place false lot numbers and expiration dates on the bottoms of the counterfeit bottles.
The defendants also allegedly used code words in purchase orders and invoices for counterfeit 5-Hour ENERGY. For example, defendants Walid Jamil, Juan Romero and Leslie Roman referred to the counterfeit 5-Hour ENERGY liquid contents as “michelada,” “juice blend” and “spices.”
In addition, the indictment alleges that from May 2012 to October 2012, Midwest Wholesale Distributors, a company owned by Jamil, distributed more than four million bottles of counterfeit 5-Hour ENERGY into commercial channels throughout the United States. Midwest sold approximately 508,032 counterfeit 5-Hour ENERGY bottles to Baja Exporting and 3,521,232 counterfeit 5-Hour ENERGY bottles to the Dan-Dee Company, which was owned by defendants Kevin Attiq and Raid Attiq. A partial list of retail vendors and wholesale distributors to whom the alleged counterfeit product was sold is attached.
“The defendants’ alleged conduct demonstrates a complete disregard of the health and safety of consumers,” said U.S. Attorney Haag. “My office will continue to vigorously prosecute those individuals who place greed over the well-being of the community by distributing counterfeit dietary products.”
“The business of trafficking in counterfeit merchandise harms victims in many ways," said Special Agent in Charge Johnson. “Intellectual property crimes are anything but victimless. Intellectual property crimes can destroy jobs, suppress innovation and jeopardize the public health and safety. In this complex case, the suspects allegedly produced a product to counterfeit a popular dietary supplement that was ultimately consumed by the public. The FBI and its partners will continue to bring these types of criminals to justice.”
“U.S. consumers rely on FDA oversight of foods to ensure that they are safe and wholesome,” said Special Agent in Charge Malinowski. “Criminals who produce and sell counterfeit and misbranded dietary supplements put the public health at risk by utilizing unknown and unregulated ingredients that could put the consumer in danger of serious illness or death. This alleged counterfeit operation was especially egregious as the investigation revealed this product was sold, distributed and placed on the shelves of numerous retailers throughout the United States. We will continue to investigate violators of our laws and work to bring them to justice.”
The 11 indicted defendants, all of whom are charged with conspiracy to traffic in counterfeit goods, conspiracy to commit criminal copyright infringement and conspiracy to introduce misbranded food into interstate commerce, include:
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Joseph Shayota, 63, of El Cajon, California. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable U.S. Magistrate Judge Nita L. Stormes in the Southern District of California, who ordered him released on $250,000 bond and to surrender his passport. Shayota’s next scheduled court appearance will be on July 9, 2015, at 1:30 p.m., before the Honorable U.S. Magistrate Judge Howard R. Lloyd to schedule further proceedings in U.S. District Court in San Jose, California.
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Adriana Shayota, 44, also of El Cajon. Shayota was arrested yesterday at her residence. She made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who ordered her released on $100,000 bond and to surrender her passport. Shayota’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Justin Shayota, 32, of Troy, Michigan. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable U.S. Magistrate Judge David T. Grand in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and to surrender his passport by noon tomorrow. Shayota’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Walid Jamil, aka Wally Jamil, 65, also of Troy. Jamil self-surrendered to the FBI yesterday. He made an initial appearance before U.S. Magistrate Judge Grand in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before the U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Raid Jamil, aka Brian Jamil, 46, of West Bloomfield, Michigan. Jamil surrendered to the FBI yesterday. He made an initial appearance before U.S. Magistrate Judge Grand in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Kevin Attiq, 51, of El Cajon. Attiq was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 bond and to surrender his passport. Attiq’s next scheduled court appearance is on July 9, 2015, before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Fadi Attiq, 57, of El Cajon. Attiq was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 bond and to surrender his passport. Attiq’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Leslie Roman, 61, of Rancho Cucamonga, California. Roman was arrested yesterday at his residence. He made an initial appearance before the Honorable U.S. Magistrate Judge David T. Bristow in the Central District of California, who released him on $50,000 bond after he surrendered his passport. Roman’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Mario Ramirez, 55, of San Diego.Ramirez was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 cash via cashier’s check and ordered him to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Camilo Ramirez, 30, of San Diego. Ramirez was arrested yesterday at his residence. He made an initial appearance before U.S. Magistrate Judge Stormes in the Southern District of California, who released him on $100,000 cash via cashier’s check and ordered him to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015, at 1:30 p.m., before U.S. Magistrate Judge Lloyd to schedule further proceedings in U.S. District Court in San Jose.
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Juan Romero, 68, of Upland, California. An arrest warrant remains outstanding for Romero.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum statutory penalties:
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For each count of conspiracy to traffic in counterfeit goods: 10 years imprisonment, a $2 million fine, three years of supervised release and a $100 special assessment.
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For each count of conspiracy to commit criminal copyright infringement: five years imprisonment, a $250,000 fine, three years of supervised release and a $100 special assessment.
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For each count of conspiracy to introduce misbranded food into interstate commerce: five years imprisonment, a $250,000 fine, three years of supervised release and a $100 special assessment.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
Assistant U.S. Attorneys Matt Parrella and Susan Knight of the Northern District of California are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI and the FDA’s Office of Criminal Investigations.
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Eleven Defendants Charged in Nationwide Conspiracy to Manufacture and Distribute Counterfeit 5-Hour ENERGY DrinkRead the Press Release
SAN JOSE – United States Attorney Melinda Haag, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office, and Lisa L. Malinowski, Special Agent in Charge, FDA Los Angeles Field Office of Criminal Investigations, announced that ten people were arrested after being charged with conspiracy to traffic in counterfeit goods, conspiracy to commit criminal copyright infringement, and conspiracy to introduce misbranded food into interstate commerce. The defendants were arrested on charges stemming from the illegal distribution and counterfeiting of the liquid dietary supplement 5-Hour ENERGY. One further defendant was not arrested, but remains subject to an arrest warrant.
According to the indictment that was unsealed yesterday, all 11 defendants were involved in the illegal repackaging and eventual counterfeiting of 5-Hour ENERGY. The supplement is owned by a group of entities referred to in the indictment as Living Essentials, which manufactured all 5-Hour ENERGY at factories in Wabash, Indiana. Living Essentials has registered and owns all 5-Hour ENERGY trademarks and a copyright, including the “5-Hour ENERGY” name and various graphical elements of the product’s labeling and packaging. The 5-Hour ENERGY trademarks and copyrighted material are displayed on every bottle of 5-Hour ENERGY and display boxes. Living Essentials does not provide licenses to any individual or entity to manufacture 5-Hour ENERGY.
According to the indictment, defendant Joseph Shayota and his wife Adriana Shayota, through their company Baja Exporting, LLC, agreed with Living Essentials to distribute 5-Hour ENERGY in Mexico. Living Essentials manufactured the liquid 5-Hour ENERGY product and provided Spanish-language labeling and display boxes to Baja Exporting. In addition, Living Essentials provided Baja a complete product package under the agreement that the 5-Hour ENERGY with Spanish-language labeling was only to be distributed by Baja in Mexico. Nevertheless, according to the indictment, rather than distributing authentic 5-Hour ENERGY with Spanish-language labeling in Mexico, the defendants attempted instead to divert the product and to sell it in the United States at a higher price. After initial efforts to sell the product failed because of the Spanish-language labeling and display boxes, the defendants replaced the labeling and display boxes with counterfeit labels and boxes designed to imitate Living Essentials’ packaging in the United States. The defendants repackaged over 350,000 bottles of 5-Hour ENERGY and sold them in the United States at a price that was 15 percent lower than what Living Essentials charged for authentic United States 5-Hour ENERGY. By December 2011, Joseph and Adriana Shayota had sold off Baja’s remaining stock of the repackaged/relabeled 5-Hour ENERGY.
Also according to the indictment, by early 2012, the defendants moved into counterfeiting the entire 5-Hour ENERGY product. The defendants manufactured the counterfeit 5-Hour ENERGY liquid at an unsanitary facility using untrained day workers. The defendants mixed unregulated ingredients in plastic vats while attempting to mimic the real 5-Hour ENERGY products.
From December 2011 through October 2012, the defendants allegedly ordered more than seven million counterfeit label sleeves and hundreds of thousands of counterfeit display boxes, and placed false lot and expiration codes on the bottles and boxes. The defendants often changed the lot and expiration codes on the counterfeit bottles and boxes to parallel the valid codes being used on the authentic product.
The indictment further alleges that the defendants travelled to Guadalajara, Mexico and hired manufacturers for the blank plastic bottles and plastic bottle caps imprinted with the trademarked “Running Man” logo. They also purchased equipment, including a steam tunnel machine, to shrink-wrap the counterfeit 5-Hour ENERGY labels on the counterfeit bottles, and an inkjet printer to place false lot numbers and expiration dates on the bottoms of the counterfeit bottles.
The defendants also allegedly used code words in purchase orders and invoices for counterfeit 5-Hour ENERGY. For example, defendants Walid Jamil, Juan Romero, and Leslie Roman referred to the counterfeit 5-Hour ENERGY liquid contents as “michelada,” “juice blend,” and “spices.”
In addition, the indictment alleges that from May 2012 to October 2012, Midwest Wholesale Distributors, a company owned by defendant Walid Jamil, distributed more than four million bottles of counterfeit 5-Hour ENERGY into commercial channels throughout the United States. Midwest sold approximately 508,032 counterfeit 5-Hour ENERGY bottles to Baja Exporting and 3,521,232 counterfeit 5-Hour ENERGY bottles to the Dan-Dee Company, which was owned by defendants Kevin Attiq and Raid Attiq. A partial list of retail vendors and wholesale distributors to whom the alleged counterfeit product was sold is attached.
United States Attorney Melinda Haag stated, “The defendants’ alleged conduct demonstrates a complete disregard of the health and safety of consumers. My office will continue to vigorously prosecute those individuals who place greed over the well-being of the community by distributing counterfeit dietary products.”
"The business of trafficking in counterfeit merchandise harms victims in many ways," said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office. "Intellectual property crimes are anything but victimless. Intellectual property crimes can destroy jobs, suppress innovation, and jeopardize the public health and safety. In this complex case, the suspects allegedly produced a product to counterfeit a popular dietary supplement that was ultimately consumed by the public. The FBI and its partners will continue to bring these types of criminals to Justice."
“U.S. consumers rely on FDA oversight of foods to ensure that they are safe and wholesome. Criminals who produce and sell counterfeit and misbranded dietary supplements put the public health at risk by utilizing unknown and unregulated ingredients that could put the consumer in danger of serious illness or death. This alleged counterfeit operation was especially egregious as the investigation revealed this product was sold, distributed, and placed on the shelves of numerous retailers throughout the United States,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to investigate violators of our laws and work to bring them to justice.”
The eleven indicted defendants - all of whom are charged with conspiracy to traffic in counterfeit goods, in violation of 18 U.S.C. § 2320(a); conspiracy to commit criminal copyright infringement, in violation of 18 U.S.C. § 371; and conspiracy to introduce misbranded food into interstate commerce, in violation of 18 U.S.C. § 371 - include:
- Joseph Shayota, 63, of El Cajon, California. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who ordered him released on $250,000 bond and ordered to surrender his passport. Shayota’s next scheduled court appearance will be on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Adriana Shayota, 44, of El Cajon, California. Shayota was arrested yesterday at her residence. She made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who ordered her released on $100,000 bond and ordered to surrender her passport. Shayota’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Justin Shayota, 32, of Troy, Michigan. Shayota was arrested yesterday at his residence. He made an initial appearance before the Honorable David T. Grand, United States Magistrate Judge, Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and ordered to surrender his passport by noon tomorrow. Shayota’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Walid Jamil, a/k/a Wally Jamil, 65, of Troy, Michigan. Jamil self-surrendered to the FBI yesterday. He made an initial appearance before the Honorable David R. Grand, United States Magistrate Judge in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and ordered to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Raid Jamil, a/k/a Brian Jamil, 46, of West Bloomfield, Michigan. Jamil surrendered to the FBI yesterday. He made an initial appearance before the Honorable David R. Grand, United States Magistrate Judge in the Eastern District of Michigan, who ordered him released on a $10,000 unsecured bond and ordered to surrender his passport by noon tomorrow. Jamil’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Kevin Attiq, 51, of El Cajon, California. Attiq was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who released him on $100,000 bond and ordered to surrender his passport. Kevin Attiq’s next scheduled court appearance is on July 9, 2015 before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Fadi Attiq, 57, of El Cajon, California. Attiq was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who released him on $100,000 bond and ordered to surrender his passport. Fadi Attiq’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Leslie Roman, 61, of Rancho Cucamonga, California. Roman was arrested yesterday at his residence. He made an initial appearance before the Honorable David T. Bristow, United States Magistrate Judge in the Central District of California, who released him on $50,000 bond after he surrendered his passport. Roman’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Mario Ramirez, 55, of San Diego, California. Ramirez was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Central District of California, who released him on $100,000 cash via cashier’s check and ordered to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Camilo Ramirez, 30, of San Diego, California. Ramirez was arrested yesterday at his residence. He made an initial appearance before the Honorable Nita L. Stormes, United States Magistrate Judge in the Southern District of California, who released him on $100,000 cash via cashier’s check and ordered to surrender his passport. Ramirez’s next scheduled court appearance is on July 9, 2015 at 1:30 p.m. before the Honorable Howard R. Lloyd, United States Magistrate Judge, to schedule further proceedings in District Court in San Jose.
- Juan Romero, 68, of Upland, California. An arrest warrant remains outstanding for Romero.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum statutory penalties:
- Count One: Conspiracy to Traffic in Counterfeit Goods, in violation of 18 U.S.C. § 2320(a): 10 years imprisonment, $2,000,000 fine, 3 years supervised release, $100 special assessment.
- Count Two: Conspiracy to Commit Criminal Copyright Infringement, in violation of 18 U.S.C. § 371: 5 years imprisonment, $250,000 fine, 3 years supervised release, $100 special assessment.
- Count Three: Conspiracy to Introduce Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371: 5 years imprisonment, $250,000 fine, 3 years supervised release, $100 special assessment.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Matt Parrella and Susan Knight are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Food and Drug Administration Office of Criminal Investigations.
Eleven Charged in White Plains Federal Court with Cocaine Trafficking in Orange, Rockland, and Bronx CountiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge, New York Division of the Drug Enforcement Administration (“DEA”), and Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), announced the unsealing yesterday of an indictment and two complaints charging a total of 11 defendants with allegedly engaging in the distribution of cocaine in and around Orange, Rockland, and Bronx Counties, New York. Ten defendants were taken into custody on June 17 and June 18, 2015, and were presented in White Plains federal court on June 18 and June 19, 2015, before U.S. Magistrate Judge Paul E. Davison.
U.S. Attorney Preet Bharara stated: “These arrests strike at the heart of an entrenched group of alleged drug dealers. Their alleged sales of narcotics in public locations affected communities in Orange County and surrounding areas. We thank the Drug Enforcement Administration, the New York State Police, and our many local law enforcement partners for their extraordinary efforts on this case.”
DEA Special Agent in Charge James J. Hunt stated: “Wherever this alleged drug trafficking crew went, drug addiction allegedly followed. By joining forces and using investigative resources, law enforcement has arrested those responsible for selling cocaine throughout Orange County and our neighboring towns.”
NYSP Superintendent Joseph A. D’Amico said: “The partnership between the Drug Enforcement Administration, New York State Police and U.S. Attorney's Office has resulted in the arrests of these allegedly dangerous individuals. For more than a decade, these people allegedly sold large quantities of cocaine in our New York communities – a crime that we won't tolerate. The dedication of these law enforcement agencies and our local partners, the City of Middletown and Town of Warwick Police Departments, resulted in these charges and the seizure of cocaine, crack cocaine, heroin, and cash. I applaud our partners for the hard work that brought this operation, and its supply of drugs, to an end.”
As alleged in the Indictment and the Complaint unsealed today in White Plains federal court[1]:
United States v. Cheyenne Simpson, et al., 15 Cr. 370
Between 2009 and 2015, CHEYENNE SIMPSON, MICHAEL BRANDS, LASHANTA MENDOZA, and EDWIN DELMORAL conspired to sell cocaine in Middletown, Goshen, and elsewhere. During the course of the conspiracy, law enforcement officers observed the defendants selling cocaine to multiple buyers, some of whom were confidential informants working with the police. Law enforcement officers using court-authorized wiretaps also recorded numerous conversations in which the defendants discussed trafficking in cocaine.
Similarly, between 2013 and 2015, EDWIN DELMORAL, PEDRO BARBOSA, JAMES CHRISTIANO, GENNARO COSTAGLIOLA, JASON KEATING, and ROSA BARBOSA conspired to sell cocaine in Middletown and elsewhere. During the course of the conspiracy, law enforcement also observed these defendants selling cocaine to multiple buyers, some of whom were confidential informants working with the police, and used court-authorized wiretaps to record numerous conversations in which these defendants discussed trafficking in cocaine.
United States v. Eliseo Llanos, 15 Mag. 2086
Between 2012 and 2015, ELISEO LLANOS sold over five kilograms of cocaine operating out of Mountaindale, New York. LLANOS sold as much as a quarter kilogram to a single buyer every two to four weeks. Law enforcement officers using court-authorized wiretaps also recorded conversations in which Llanos agreed to supply another cocaine trafficker who supplied street-level cocaine dealers.
United States v. Thomas Garcia, 15 Mag. ___
Since in or about 2001, THOMAS GARCIA sold over five kilograms of cocaine in Bronx and Rockland Counties. On or about June 18, 2015, DEA agents and NYSP investigators seized approximately 1.5 kilograms of cocaine, over one kilogram of heroin, and a loaded firearm from GARCIA’s car and apartment in the Bronx.
The defendants in United States v. Simpson, et al. face maximum terms of life in prison and mandatory minimum terms of 10 years in prison. The defendant in United States v. Llanos also faces a maximum term of life in prison and a mandatory minimum term of 10 years in prison. The defendant in United States v. Garcia faces a maximum term of life in prison and a mandatory minimum term of 15 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
A chart containing the names of the defendants who were arrested today, and the charges and maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of the Drug Enforcement Administration, the New York State Police, the City of Middletown Police Department, the New Jersey State Police, and the Town of Warwick Police Department.
This investigation was conducted by the DEA’s Westchester Task Force, the New York State Police CNET Campbell Hall, and the U.S. Marshals Service. Assistance was provided by Town of Warwick Police Department, the Vernon Police Department, the New Jersey State Police, Sussex County Drug Trask Force, City of Middletown Police Department, Sullivan County District Attorney's Office, and Fallsburgh Police Department. The DEA’s Westchester Resident Office comprises agents and officers of the DEA, Westchester Police Department, New Rochelle Police Department, Yonkers Police Department, Mount Vernon Police Department, White Plains Police Department and Port Chester Police Department..
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jessica K. Feinstein and Hagan Scotten are in charge of the prosecution.
The charges contained in the Indictment and the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.)
CHEYENNE SIMPSON MICHAEL BRANDS
LASHANTA MENDOZA a/k/a “LA,” a/k/a “Lynn,” EDWIN DELMORAL
PEDRO BARBOSA a/k/a “Pete,” a/k/a “P,”
JAMES CHRISTIANO, a/k/a “Jimmy,”
GENNARO COSTAGLIOLA
a/k/a “Gerry,” a/k/a “Big Nose,”
JASON KEATING
ROSA BARBOSA
Life in prison
Mandatory minimum: 10 years in prison
Distribution and possession with intent to distribute over five kilograms of cocaine
ELISEO LLANOS, a/k/a “Eli,”
THOMAS GARCIA, a/k/a “Biggz”
Life in prison
Mandatory minimum: 10 years in prison
Distribution and possession with intent to distribute over one kilogram of heroin
THOMAS GARCIA, a/k/a “Biggz”
Life in prison
Mandatory minimum: 10 years in prison
Possession of a firearm in furtherance of a narcotics trafficking offense
THOMAS GARCIA, a/k/a “Biggz”
Life in prison
Mandatory minimum: five years, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaints, and the description of the Indictment and the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
El Departamento de Justicia Resuelve una Queja de Discriminacion Relacionada a Inmigración en Contra de una Agencia de EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia llego a un acuerdo hoy con Accountemps, una división de la empresa Robert Half International, Inc., una compañía con sede en Menlo Park, California, resolviendo alegaciones de que la compañía estaba involucrada en discriminación a base del estatus de cuidadania en violación del Acto de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento, basada en una queja por una cuidadana Estadounidense naturalizado, concluyo que Accountemps se rehusó a referir a la denuciante para una posición de contrato con el gobierno federal por que, como cuidadana naturalizada, la denuciante no había nacido en los Estados Unidos. Bajo el INA, los empleadores no pueden discriminar en contra de cuidadanos Estadounidenses basado en su estatus de cuidadania, incluyendo reuirse a contratarlos a causa de que hayan sido nacidos fuera de los Estados Unidos.
Bajo el acuerdo, Accountemps continuará refiriendo a la denunciante a posiciones para las cuales ella califíque, pagará $2,500 en sanciones civiles, proveerá adistramiento para su personal acerca de la provision anti-discriminación del INA, y será sujeto a monitoreo por un periodo de un año.
“La provision anti-discriminación del INA no reconoce diferencias en clases de cuidadanos Estadounidenses cuando se trata de su derecho a trabajar en los Estados Unidos,” dijo la Principal Deputada Assistente Procuradora General Vanita Gupta para la Divisiόn de Derechos Civiles. “Nosotros aplaudimos a Accountemps por su cooperación en resolver las preocupaciones planteadas por este asunto.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración es la oficina responsable por hacer cumplir con la provisión antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía o del origen nacional durante la contrataciόn, el despido, el reclutamiento o la referencia por comisiόn, las prácticas injustas de documentación, represalias, e intimidación. Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva), llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva), o para registrarse para un seminario gratis ofrecido a través del internet visite www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al [email protected], o visite el sitio de Internet www.justice.gov/crt/about/osc.
Los solicitantes o empleados que consideren que fueron sujetos a (1) diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o (2) discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido y el reclutamiento o la referencia por comisión, deberán comunicarse a la línea dedicada a los trabajadores anteriormente citada para poderlos ayudar.
El Departamento de Justicia Resuelve Quejas de Discriminacion Contra Tres Agencias de Empleo en MemphisRead the Press Release
WASHINGTON – El Departamento de Justicia anunció que llegó a un acuerdo hoy con tres agencias de trabajo en Memphis: Prestigious Placement; PFSWeb, Inc.; y su sucursal, Priority Fulfillment Services, Inc. El acuerdo resuelve dos quejas alegando discriminación bajo la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del Departamento de Justicia encontró que las compañías se rehusaron a contratar a dos individuos de Puerto Rico quienes tenían suficientes cualificaciones porque las compañías creían que ellas nacieron en un país extranjero. Las compañías negaron los certificados de nacimiento validos de Puerto Rico de las trabajadoras y exigieron que presentaran certificados de naturalización aunque los puertorriqueños son estadounidenses de nacimiento. Bajo la provisión anti-discriminación de la INA, los empleadores no pueden discriminar durante la contratación o ponerle barreras adicionales a los trabajadores durante el proceso de verificación de elegibilidad de empleo basado en su ciudadanía o la ciudadanía percibida.
Bajo del acuerdo, las compañías recompensarán a los denunciantes sus sueldos perdidos; pagarán sanciones civiles as los Estados Unidos; se someterán a adiestramiento sobre la provisión anti-discriminación de la INA; cambiarán sus políticas de empleo y materiales de adiestramiento; y serán sujetos a monitoreo de sus prácticas de verificación de empleo por dos años.
“Los puertorriqueños son ciudadanos nativos y tienen el mismo derecho a trabajar como cualquier otro estadounidense,” dijo la Principal Deputada Asistente Procuradora General Vanita Gupta para la División de Derechos Humanos “No deberían tener que enfrentar estos tipos de barreras discriminatorias, y el Departamento de Justicia está comprometido en asegurar la igualdad de oportunidades de empleo.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC por sus siglas en inglés) es la oficina responsable por hacer cumplir con la provisión anti-discriminación de la INA. La ley prohíbe, entre otras cosas, discriminación basada en el estatus de ciudadanía y en el origen nacional en la contratación, el despido, o el reclutamiento o la referencia por comisión, las prácticas injustas de documentación, y represalia e intimidación.
Para obtener más información acerca de las protecciones contra la discriminación en el empleo según las leyes de inmigración, o para registrarse para un seminario gratis ofrecido a través del Internet, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 o al 1-800-237-2515, TTY (para personas con problemas de audición); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con problemas de audición); o visite el sitio web de la OSC en www.justice.gov/crt/about/osc.
Solicitantes o trabajadores que creen que fueron sometidos a: (1) requisitos diferentes de documentación o discriminación por causa de su estatus de ciudadanía, estatus migratorio o su origen nacional; o (2) discriminación por causa de su estatus de ciudadanía, estatus migratorio o el origen nacional en la contratación, el despido o el reclutamiento o referencia por comisión, deben comunicarse a la línea del trabajador de la OSC para obtener ayuda.
Dorchester Man Sentenced to 29 ½ Years for Role in Postal Letter Carrier ShootingRead the Press Release
BOSTON – A Dorchester man was sentenced today to 29 ½ years in prison in connection with the assault, robbery and kidnapping of a U.S. Postal letter carrier that took place just before Christmas, 2013.
Keyon Taylor, 22, was sentenced today by U.S. District Court Judge Denise J. Casper to 29½ years in prison and five years of supervised release after a federal jury convicted him in March 2015 of assault, robbery, kidnaping and firearm charges following a two-week trial. Taylor was also ordered to pay restitution to the victim in the amount of $625,000.
Taylor’s co-defendant Maurice Williams Miner-Gittens, 24, previously pleaded guilty to robbery and conspiracy, and possession of a firearm and was sentenced in May 2015 to 10 years in prison and three years of supervised release.
On Dec. 20, 2013, Taylor and Gittens rented a U-Haul van and followed a U.S. Postal delivery truck as a letter carrier was delivering holiday packages. When the letter carrier returned to his truck after making a delivery, Taylor confronted him with a gun pointed inches away from his head and demanded his wallet. While handing Taylor his wallet, the victim tried to move the gun away from his temple and was shot. The bullet entered his wrist, shattering a bone, and lodging in his forearm.
Taylor then repeatedly demanded the “drawer,” presumably in reference to a cash drawer. When the letter carrier told Taylor that the truck had no cash drawer, Taylor repeatedly pistol-whipped him. Taylor struck the victim so hard that a piece of the pistol grip broke off. Taylor then ordered the letter carrier into the back of the truck, and continued to beat him. He demanded the keys to the postal truck and the letter carrier’s postal uniform which Taylor then used to try to wipe up some of the victim’s blood.
Taylor, who was partially disguised, told the letter carrier not to look at him and threatened to kill him if the carrier did so. Moments later, frightened for his life, the letter carrier jumped out of the moving postal truck through the back cargo door. At the time, Taylor had carjacked the postal truck with the bleeding carrier inside. The victim ran for his life, in long johns and stocking feet. Civilians in the area provided assistance and called the police.
While the assault took place, Gittens was in the U-Haul van right behind the postal truck. In fact, Gittens got out and was directing traffic around the van and postal truck while Taylor was assaulting the letter carrier and then followed closely in the U-Haul van when Taylor drove off in the postal truck.
When the letter carrier jumped out of the postal truck, Taylor lost control of the truck and crashed into a snowbank. Taylor then fled through four backyards, carrying the victim’s pants and vest, as well as the revolver. His flight path, which led to two chair link fences, was marked by a trail of boot prints in the snow. While jumping over one of the fences, Taylor punctured his hand leaving blood and a piece of a purple nitrile glove on the top of the fence. He also left more blood on a second fence and on the handle of a recycling bin. The blood was matched to Taylor by DNA analysis. Taylor dumped the victim’s pants and vest in the bin; further DNA analysis showed that both the letter carrier and Taylor had bled on the uniform. The victim’s blood was also found on a black jacket which Taylor wore. The jacket was recovered days later from a coat closet outside Taylor’s mother’s house in Attleboro, some 34 miles away from where the shooting took place.
Around 10:00 p.m. on the night of the robbery, Gittens was stopped in the U-Haul van. Inside were two pairs of purple nitrile gloves that matched the one found on the fence along Taylor’s escape path. On the outside of the van was a smear of the victim’s blood.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William B. Evans made the announcement today. The Attleboro Police Department also assisted in the investigation. The case was prosecuted by Assistant U.S. Attorneys William F. Bloomer and Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
District Man Sentenced to 10 Years in Prison for Sexually Assaulting 17-Year-Old Victim in Broad Daylight Attack in Northwast WashingtonRead the Press Release
WASHINGTON - Gerald Canty, 24, of Washington, D.C., was sentenced today to a 10-year prison term, to be served after he completes a 21-year term he already is serving, for sexually assaulting a 17-year-old woman in a mid-morning attack that took place in December 2013 in Northeast Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Canty pled guilty in April 2015, in the Superior Court of the District of Columbia to one count of attempted first-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for the 10-year prison sentence to be served consecutively to a 21-year prison term Canty already is serving. The Honorable Lynn Leibovitz accepted the plea today.
In the other case, Canty earlier pled guilty in May 2014 to sexually assaulting an 18-year-old woman and attempting to kidnap three additional young women in a series of other incidents that took place between February and March of 2014, near the Minnesota Avenue Metro Station. In those matters, he pled guilty to one count of first-degree sexual abuse, one count of attempted kidnapping while armed, and two counts of attempted kidnapping. He was sentenced in July 2014 by the Honorable Jennifer Anderson to 21 years in prison.
Following his prison terms, Canty will be placed on supervised release for the rest of his life. He also must register as a sex offender for the rest of his life.
Today’s sentence involved an attack that took place on Dec. 17, 2013. According to the government=s evidence, at approximately 9:20 a.m. that day, the 17-year-old victim was walking alone in the 4600 block of Nannie Helen Burroughs Avenue NE. Canty approached her, brandished an object that she believed was a gun, and said, “Hey! Don’t move.” He demanded the victim’s property, reached his hand into her pocket and removed $3. Canty then told the victim to follow him, and walked her under a footbridge a short distance away. Under the footbridge, Canty demanded that the young woman perform a sexual act on him. She initially refused, but ultimately submitted to the defendant’s demand.
After the assault, the victim made an immediate report to the Metropolitan Police Department (MPD). Officers and detectives with MPD’s Sixth District, Youth Investigations Division, and Mobile Crime Division, responded immediately. The victim was taken to Washington Hospital Center, where she received a Sexual Assault Nurse Examination. DNA later linked Canty to the attack.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the Metropolitan Police Department, including officers and detectives from the Youth Division and the Sixth District, as well as mobile crime scene officers and technicians. He also expressed appreciation for the work of MPD’s Sexual Assault Unit and the Sixth District, which investigated the crimes that led to Canty’s earlier plea. He acknowledged the work of the District of Columbia Department of Forensic Sciences. Finally, he praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jason Manuel and Erica Vample; Victim/Witness Advocate Tracey Hawkins, and Assistant U.S. Attorney Amy H. Zubrensky, who investigated and prosecuted the case.
Cumberland Woman Pleads Guilty to Filing a False Tax ReturnRead the Press Release
Kathy Cullen admitted to failing to report funds to the IRS that she embezzled from her employer.
DES MOINES, IA – On June 17, 2015, Kathy Joan Cullen appeared in United States District Court, before the Honorable Celeste F. Bremer, and pled guilty to filing a false 2009 tax return, announced United States Attorney Nicholas A. Klinefeldt.
According to the plea agreement, Cullen embezzled money from her employer, 21st Century Cooperative. Over a period of six years, Cullen wrote over $1.3 million in checks to herself and deposited the proceeds into a personal bank account. Cullen admitted that she failed to account for the embezzled funds in her 2009 tax return.
Cullen is scheduled to be sentenced before the Honorable John A. Jarvey on October 1, 2015, at 3:30 p.m., in Des Moines, IA. Filing a false tax return carries a maximum term of three years imprisonment, up to a $100,000 fine, and up to one year of supervised release. Cullen is also required to pay restitution, in an amount ordered by the Court.
This case was investigated by the Internal Revenue Service – Criminal Investigation, and the Cass County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chesterfield Man Sentenced on Embezzlement ChargesRead the Press Release
St. Louis, MO – JOEL WISHNE was sentenced to 30 months in prison involving his embezzlement of approximately $825,500 from SafeVision, LLC, during a three year period. In addition to the prison sentence, he was ordered to pay $782,500 restitution.
According to court documents, Wishne was a managing member of SafeVision, LLC, a company in the business of providing optical and optometry services. SafeVision also manufactured, sold and distributed eyewear products, including safety, industrial, sport, dress and other eyewear products both nationally and internationally. Wishne served as the accountant for the company and ran the day-to-day operations, which included the deposit of funds received, as well as payment of the company’s expenses. He maintained the account records and prepared the yearly financial statements, which were emailed to the other managing members of SafeVision. Unbeknownst to the managing members, Wishne inflated certain expenses and the cost of goods within the annual financial statement, while underreporting certain income that the company received in order to conceal the fact that he was embezzling money from the company and using these stolen funds for his own personal benefit.
Wishne, Chesterfield, MO, pled guilty in February to two felony counts of wire fraud. He appeared Thursday afternoon for sentencing before United States District Judge Catherine D. Perry.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney’s Office.
Bridgeport Man Charged with Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport returned an indictment yesterday charging LORENZO CARTER, 20, of Bridgeport, with possession of a firearm by a convicted felon.
The indictment alleges that, on April 8, 2015, CARTER possessed a .22 caliber handgun.
Prior to April 2015, it is alleged that CARTER had sustained felony convictions for carrying a pistol without a permit and illegally receiving a pistol. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted, CARTER faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
CARTER has been detained in state custody since his arrest on April 8, 2015.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI Safe Streets Task Force and the Bridgeport Police Department. This case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.
Benld Physician Indicted for Unlawfully Writing Prescriptions and for Making False StatementsRead the Press Release
A Benld physician was indicted by a federal grand jury on Tuesday, June 16, 2015, for use of a suspended or revoked DEA registration number when prescribing a controlled substance and for making false statements or material omissions from a DEA registration application, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Prescription medications are lawfully dispensed through a closed distribution system. The closed system begins with the importer who brings raw material into the United States, and extends to the manufacturer, distributor, physician, and finally to the dispensers or practitioners who provide the controlled substances to the customer or ultimate user. The Controlled Substances Act is designed to eliminate the diversion of drugs from legitimate channels to illegitimate channels by requiring strict registration and documentation requirements for all persons, including physicians, who are authorized by state law to dispense controlled substances. Federal law states that a prescription may only be issued by a practitioner who is (a.) authorized by a licensing state; and (b.) is also properly registered with the US Drug Enforcement Administration (DEA).
The Indictment explains that Larry Leone was a medical doctor licensed by the state of Illinois, until his state licenses to practice medicine and to prescribe controlled substances were suspended for one year in 2010. After serving his suspension, Leone was placed on probation by the Illinois Department of Professional Regulation. At the time that his Illinois medical license and his state license to prescribe controlled substances were suspended, Leone also voluntarily surrendered his federal DEA registration that authorized him to prescribe medications. That federal license was never renewed. Leone is charged in nine counts for unlawfully issuing nine (9) prescriptions for 1,260 Zolpidem Tartrate (Ambien) pills and 540 Diazepam (Valium) pills that were dispensed under the authority Leone’s DEA registration number, which had been surrendered and was revoked at the time the prescriptions were written.
Leone is also charged with one count of making a false statement. That count alleges that on November 11, 2014, the Defendant completed DEA Form 224 and applied for a DEA registration that would have authorized him to lawfully dispense controlled substances again. On that form, Leone was asked the following question,
"Has the applicant ever surrendered (for cause) or had a state professional license or controlled substance registration revoked, suspended, denied, restricted, or placed on probation, or is any such action pending?"Leone was charged for falsely answered "No" to that question and omitting material information from his application by failing to disclose prior disciplinary proceedings against his Illinois Physician and Surgeon License and his Illinois Controlled Substance License.
If convicted, Leone faces a maximum of 4 years in federal prison, not more than a $250,000 fine, and not more than 1 year of supervised release on each count. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing.
The investigation is being conducted by agents from the Drug Enforcement Administration (DEA) Office of Diversion Control. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Baton Rouge Man Convicted of Possessing Child Pornography and Making False Statements to the FBIRead the Press Release
BATON ROUGE, LA - United States Attorney J. Walter Green announced today that PIERRE A. MOOSEBROKER, JR., age 46, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge James J. Brady to possession of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(5)(B), and making false statements to Special Agents with the Federal Bureau of Investigation, in violation of Title 18, United States Code, Section 1001(a)(2).
During the guilty plea hearing yesterday, the defendant admitted to obtaining and possessing images of prepubescent child pornography and to lying to the FBI about, among other things, having never planned to force a female child to engage in sexual activity with him. In the plea agreement, which remains subject to Court approval, the parties agree that the defendant will be sentenced to 25 years imprisonment, followed by a lifetime term of supervised release.
The investigation is being handled by the FBI and the United States Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Chris Dippel.
Baltimore Heroin Trafficker Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ronald Ross, age 27, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute heroin.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from January to June 24, 2014, members of the conspiracy obtained bulk quantities of heroin and packaged the heroin for retail distribution. The prepackaged heroin was provided to Ross on a daily basis, who then sold the heroin to retail customers at an open-air drug “shop” in the vicinity of the intersection of Baltimore and Bentalou Streets in Baltimore.
During his participation in the drug conspiracy, Ross admitted that he and others distributed between 100 and 400 grams of heroin of heroin.
Co-defendants Eric Johnson, age 38, Keith Gilliam, age 21, Sara Jones, age 29 and Nicholas Jones, age 23, all of Baltimore, previously pleaded guilty to their participation in the conspiracy. Johnson, Gilliam and Sara Jones are scheduled to be sentenced on July 23, 2015. Nicholas Jones is scheduled to be sentenced on August 31, 2015.
United States Attorney Rod J. Rosenstein praised ATF, the Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant U.S. Attorney Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
Albany Man Pleads Guilty to Filing 62 Fraudulent Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Bryant T. Johnson, aged 26, of Albany, Georgia entered a guilty plea to one count of wire fraud and one count of aggravated identity theft on June 17, 2015 before the Honorable W. Louis Sands, Senior U. S. District Court Judge, in Albany.
In March 2012, a juvenile in the Dougherty County School System was interviewed about the theft of 65 “Student Emergency Contact Cards” from a local high school personnel office. The cards contained identity data, including date of birth and Social Security numbers, of students and were recovered from his backpack. The juvenile admitted that he had talked about using the stolen cards with Mr. Johnson. A search warrant of Mr. Johnson’s home recovered evidence which linked him to 62 online federal income tax returns linked to him via e-mail, hard copy address, or other data. The filings claimed a total of $419,028. Mr. Johnson actually received a total of $76,631. The police also seized numerous pre-paid debit cards in the name of 3rd parties that were funded with fraudulent income tax refunds.
For wire fraud, Mr. Johnson faces 20 years maximum imprisonment, a fine of $250,000, or both. For aggravated identity theft, he faces a mandatory minimum of two years imprisonment consecutive to any other term of imprisonment imposed, a fine of $250,000, or both. Sentencing is set for September 10, 2015 before Judge Sands.
“Identity theft has become one of the most pervasive crimes in our community and its results can be devastating to the victims who often lose their money and their property as well as suffer injury to their credit rating and their reputation. It is my policy that my office shall prosecute the perpetrators of these types of crimes to the fullest extent of the law,” said United States Attorney Michael J. Moore.
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," stated Acting Special Agent in Charge, James E. Dorsey. "Individuals who devise schemes to steal public money face federal prosecution and federal prison."
The case was investigated by the Internal Revenue Service - Criminal Investigation and the Dougherty County School System Police Department. Assistant United States Attorney Jim Crane is prosecuting the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Acting U.S. Attorney Cohen to Host Fifth Annual Youth Summit at Friendship Collegiate Academy in Northeast WashingtonRead the Press Release
WASHINGTON – Acting U.S. Attorney Vincent H. Cohen, Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, and a wide variety of law enforcement and community partners are teaming up to sponsor a Youth Summit on Friday, June 26, 2015, at Friendship Collegiate Academy.
The fifth annual summit is themed “Breaking the Silence on Youth Violence” and will focus on teaching young people about their rights and how to interact with law enforcement. The event will include a line-up of dynamic speakers, entertainment, and resources. The guest emcee is DJ Flava of WKYS Radio (93.9 FM), and entertainment will be provided by performers such as Motive, KRU3H, Young Motive, D.O.P.E. Jam, DAWeapon01, and Chi Chi Monet.
Youths from the District of Columbia are invited to the program, which runs from 11 a.m. to 3 p.m., and is free of charge. Doors open at 10 a.m. Friendship Collegiate Academy, 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is one of the largest events sponsored by the U.S. Attorney’s Office each year, typically drawing hundreds of youths. The fast-paced program assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. The goal of the program is to reach out to area youth on current public safety topics in an informative and inspiring way.
This year, given recent national events, organizers decided to equip young people with the information that they need about interacting with the police and give them more insight into the important role of law enforcement in their communities. Acting U.S. Attorney Cohen is expected to be joined in panel discussions by District of Columbia Mayor Muriel Bowser, District of Columbia Attorney General Karl A. Racine, and others.
In addition to the panels and performers, this year’s event also features a skit, poetry reading, and discussion of topics including Internet safety. The summit also will include an information fair where non-profit organizations provide information on youth development programs, mentoring, and education activities.
Several partners will be coming together to present the day’s programs, including the East of the River Family Support Collaborative, Collaborative Solutions for Communities, Friendship Collegiate Academy Public Charter School, District of Columbia Youth Advisory Council, Metropolitan Police Department and our various other partners.. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit may contact Lenney Lowe at the U.S. Attorney’s Office at (202)-698-1452 or [email protected].
Follow the event on Twitter: @DCNews1 or @YouthSummitDC.
Acting U.S. Attorney Cohen Reaches Out to Area Clergy in Aftermath of Violence in CharlestonRead the Press Release
Dear Clergy:
I am writing to offer my deepest condolences in the wake of the tragic shooting that occurred yesterday evening at Emanuel African Methodist Episcopal Church in Charleston, South Carolina. My thoughts and prayers are with the victims who lost their lives, the A.M.E. church family, and all congregations and places of worship in our community. There is no place in our society for this type of vicious attack, and the U.S. Attorney's Office seeks to offer encouragement to everyone affected by this tragedy.
As you may have heard, the Department of Justice has opened a hate crimes investigation. Earlier today, I spoke by phone with the Civil Rights Division of the Department of Justice and the United States Attorney for South Carolina about the work that they are doing to investigate and prosecute this terrible act. As our colleagues in law enforcement continue to investigate this matter, please know that my office continues to be a resource for all clergy and places of worship in the District.
This horrific event reminds us of the importance of discussing ways to improve safety, even within the most sacred of places and assemblies. In the following days, we will seek to hear from you about how my office and our law enforcement partners can assist clergy during this troubling time. It is our desire to work together as a community to best identify proactive techniques that might aid places of worship with enhancing overall safety for their congregants and respective communities.
I look forward to continuing our partnership as we strengthen the bonds in our community. Thank you for your work and leadership.
Sincerely,
Vincent H. Cohen, Jr.
Acting United States Attorney
Thursday 18 June 2015
Woodring Sentenced to 15 Years for Attacks on Central Arkansas Power GridRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Assistant Attorney General for National Security John P. Carlin, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, and Grover Crossland, Resident Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)—Little Rock Field Office announced today that Jason Woodring, 38, of Jacksonville, Arkansas, was sentenced to 15 years imprisonment on charges related to his attacks on central Arkansas’ power grid between August and October 2013.
In addition to the term of imprisonment, Woodring will be required to pay $4,792,224.06 in restitution to Entergy for Woodring’s attacks on the power lines and electrical tower near Cabot, Ark., and a switching station in Scott, Ark. Woodring will also have to pay $48,729.39 to First Electric Cooperative for damage to the downed power lines and poles in Jacksonville, Ark. There is no parole in the federal system. Upon his release from prison he must serve five years of supervised release.
Woodring’s 2013 attacks included sabotaging an electrical support tower and downing a 500,000-volt power line onto a railroad track near Cabot, Ark., which resulted in approximately $550,000 worth of damage; setting fire to and destroying an Extra High Voltage (EHV) switching station in Scott, Ark., causing over $4,000,000 in damages; and cutting down two power poles, which led to the temporary loss of power to approximately 9,000 people in Jacksonville, Ark. Woodring was charged in an eight-count indictment by a federal grand jury on November 6, 2013.
On March 10, 2015, Woodring pleaded guilty to counts 2, 3, 4, and 8 of the indictment, including destruction of an energy facility for downing the Cabot power lines (Count Two) and for setting fire to the Scott power station (Count Three). He also 425 West Capitol Avenue, Suite 500 (501) 340-2600 Post Office Box 1229 Little Rock, Arkansas 72203-1229 pleaded guilty to using fire to commit a felony (Count Four) in relation to the arson in Scott. Finally, Woodring pleaded guilty to being an illegal drug user in possession of various firearms and ammunition (Count Eight) and agreed to forfeit the firearms and ammunition.
On Thursday, United States District Judge Billy Roy Wilson accepted the parties’ plea agreement and imposed the recommended 15-year sentence. Upon acceptance of the plea and sentence, the United States dismissed counts 1, 5, 6, and 7 of the indictment against Woodring.
This investigation was conducted by the FBI, Joint Terrorism Task Force, ATF, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission.
Winchester Man Sentenced on Child Pornography Production ChargeRead the Press Release
Harrisonburg, VIRGINIA – A 65-year-old Winchester man, who previously pled guilty to exploiting two young girls, was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
Phillip Daniel Rush, 65, of Winchester, Va., previously pled guilty to one count of production of child pornography. Yesterday in District Court, Rush was sentenced to 30 years in prison and a lifetime of supervised release thereafter. Rush was also ordered to pay a $25,000 fine.
“Mr. Rush has admitted to sexually exploiting young girls. His actions earned him a lengthy stay in federal prison,” Acting United States Attorney Anthony P. Giorno said today. “Mr. Rush is a sexual predator and he and others who engage in such acts will be held criminally accountable for their acts. We will continue to use every legal tool available to us in order to protect the most vulnerable amongst us, our children.”
According to a factual summary filed during Rush’s guilty plea hearing, around July 2012, Rush exploited a seven-year-old girl and an eight-year-old girl while they were visiting him. The defendant filmed the two girls engaging in sexually explicit conduct.
Specifically, Rush turned on the webcam of his computer and provided a sexual device to one of the girls. He also later provided a jar of Vaseline. The defendant can be seen during various portions of the hour-long film. An adult pornography movie can be heard playing in the background.
The Winchester Police Department began the investigation into Rush after the mother of an older child notified police that her child had viewed the video of the two minor girls Rush’s computer.
The investigation of the case was conducted by the Winchester Police Department, the United States Secret Service and the Frederick County Sheriff’s Office. Assistant United States Attorney Nancy S. Healey prosecuted the case for the United States.
Warrensburg Man Sentenced to 21 Years for Thousands of Images of Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Warrensburg, Mo., man was sentenced in federal court today for distributing and possessing hundreds of thousands of images of child pornography.
Richard Alan Sigsbury, 52, of Warrensburg, was sentenced by U.S. District Judge Gary A. Fenner to 21 years and 10 months in federal prison without parole.
On Oct. 30, 2014, Sigsbury pleaded guilty to four counts of distributing child pornography, four counts of advertising child pornography, one count of possessing child pornography and one count of possessing child obscenity.
According to court documents, Sigsbury actively advertised the contents of his collection to other like-minded pedophiles and distributed images of the sexual abuse of children to these individuals.
Sigsbury admitted that he was in possession of more than 500,000 images of child pornography and more than 600 videos of child pornography, including images of prepubescent children in bondage. Sigsbury admitted that he was involved in child pornography for more than a decade.
Federal agents in Texas identified Sigsbury’s e-mail address during an undercover investigation into online child pornography distribution. Agents executed a search warrant at Sigsbury’s residence on April 17, 2012, and seized computers, recording devices and electronic storage devices.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
United States Attorney Stephen R. Wigginton Announces "Home Alone IV" and Nationwide Takedown of Health Care ScamsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services Office of Inspector General, Office of Investigations for Region 7 (Kansas City office) today announced indictments and arrests arising out of Operation Home Alone IV. The indictments are a fourth wave of charges targeting the abuse of a Medicaid program in Illinois that provides personal assistants to Medicaid recipients to assist them with general household activities and personal care. The program is intended for recipients under 60 years of age and is designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.
This morning, Attorney General Loretta Lynch, and Department of Health and Human Services Secretary Sylvia Mathews Burwell, together with FBI Director James Comey and HHS Inspector General Daniel R. Levinson, announced the largest health care fraud takedown in the nation's history. The Southern District of Illinois was one of seventeen United States Attorney's Offices participating in the nationwide takedown. Several hundred federal agents took part in the arrests that began on Tuesday, June 16th.
The nationwide takedown centered on both medical services that were never performed but billed to the government together with medical services that were performed but were medically unnecessary. In the indictments returned in the Southern District of Illinois, the defendants are being charged with submitting bills for claimed personal assistant services that were purportedly medically necessary, but were not performed. Eleven of the twelve defendants were purported personal assistants and the other was a supposed recipient of the services.
Among the Operation Home Alone IV cases, are the following:
- A recipient was found in her home in an incoherent state and partially covered in dried excrement. She was discovered by a friend checking on her welfare after she had been unable to reach the recipient by phone for many days. The daughter of the customer was her Personal Assistant ("PA") and submitted claims for services.
- A recipient, who purportedly was unable to drive a car to work, indeed did drive to work as an East St. Louis School teacher. He also failed to disclose to the Social Security Administration that he was substantially gainfully employed as a teacher. A PA submitted false claims for services purportedly rendered in Illinois while the PA was actually in Costa Rica.
- A PA submitted claims while the recipient was in jail.
- A PA submitted claims for services at the same time she was working as a PA for a social services agency in East St. Louis.
- Several PA’s submitted claims while their customers were in the hospitals and nursing homes.
The following individuals were charged and arrested locally as part of Home Alone IV:
- Kevin Landis Boyd, 58, East St. Louis, IL
- Shirley A. Hair, 49, East St. Louis, IL
- Kiara S. Hopkins, 24, Belleville, IL
- Lisa Jorden, 50, Cottage Hills, IL
- Shelia Vickery, 40, Alton, IL
- Alfreda E. Perkins, 53, East St. Louis, IL
- Ann Marie Sheppard, 54, O’Fallon, IL
- LaTasha Stevenson, 37, Belleville, IL
- Jessica A. Teets, 27, Mulberry Grove, IL
- Terry L. Waeltermen, 30, Pocahontas, IL
Two other defendants have been charged, but not yet arrested.
Previous Operations Home Alone I through III had resulted in the indictment of 43 individual defendants. Of those, 42 were convicted (one died before sentencing) and given federal sentences ranging up to three years in federal prison.
Past cases involved personal assistants who were in jail at the time they were purportedly providing care to their customer, a customer who was in jail at the time he was ostensibly receiving the medically necessary services, PAs who lived out of state who were claiming to provide services in Illinois and PAs who billed for services while their customers were in a hospital and nursing home. In one case, a customer died of neglect at the same time as her PA was billing for providing for her care.
"After three previous rounds of indictments, I am truly mystified how these defendants thought they could get away with defrauding Medicaid through bogus claims of personal assistant services," said United States Attorney Wigginton. "I know that we can't prosecute our way out of this problem; but the fact remains that I will continue to prosecute until there is no such widespread abuse of this program. People who cheat this system rob from a very worthy program and steal directly from our fellow citizens."
"The home-care program provides vital services for many of our state’s most vulnerable residents," Attorney General Lisa Madigan said. "These prosecutions are critical to ensure that the integrity of the program is maintained."
"I find billing for personal assistant services while the customer was in a nursing home or hospital to be especially galling." said Special Agent in Charge Gerald Roy. "The whole purpose of the program is to save federal and state tax money by providing assistance to recipients so that they don't need to go to a hospital or nursing home."
"Working with federal officials, other agencies and the public, we will continue to fight fraud, waste and abuse in the Medicaid system." said Felicia Norwood, Director of the Illinois Department of Healthcare and Family Services. Norwood added that HFS has been coordinating closely with the Illinois Department of Human Services to provide oversight over programs.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of the jury.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General, the Illinois State Police - Medicaid Fraud Control Bureau and the Federal Bureau of Investigation. The individual cases are being prosecuted by Assistant United States Attorneys Adam Hanna, William E. Coonan, Ranley R. Killian and Michael Hallock.
U.S. Attorney Notifies Manistique Residents of Mail DestructionRead the Press Release
MARQUETTE, MICHIGAN —U.S. Attorney Patrick Miles announced the indictment of Sarah Jane Paradise, a former U.S. Postal Service City Carrier, on charges of delaying, detaining and destroying U.S. Mail entrusted to her for delivery in Manistique, Michigan.
On the basis of an investigation by the U.S. Postal Service’s Office of Inspector General, the indictment alleges that Paradise, who was employed as a USPS City Carrier in Manistique, Michigan, delayed, detained and destroyed Standard A Mail, which is bulk business mail, that she was supposed to deliver to residences on her route from March 2013 until early March 2014. Her route in Manistique, which USPS identifies internally as "City Route 1," covered hundreds of residences in the heart of Manistique.
PARTS OF MANISTIQUE, MICHIGAN WITHIN CITY ROUTE 1
If you believe you are a victim of this alleged crime, you will be able to obtain court notices relating to this case by checking: http://www.justice.gov/usao-wdmi/victim-and-witness-assistance-program/vw-large-cases/Paradise.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Two More Sentenced for Racketeering in Case Involving Ironworkers Local 401Read the Press Release
TWO MORE SENTENCED FOR RACKETEERING IN CASE INVOLVING IRONWORKERS LOCAL 401
PHILADELPHIA- Christopher Prophet, 44, of Richboro, PA, was sentenced today to 63 months in prison for his role in the corruption case involving Ironworkers Local 401. In addition to the prison term, U.S. District Court Judge Michael Baylson ordered three years of supervised release, $138,000 restitution, and a $200 special assessment. In December 2014, Prophet pleaded guilty to RICO conspiracy and attempted extortion which interferes with interstate commerce. Co-defendant Richard Ritchie, 45, of Philadelphia, was sentenced yesterday to four years in prison, three years of supervised release, $25,000 restitution, and a $300 special assessment.
During the offense conduct, Prophet acted as a business agent for the Ironworkers Local 401 and participated in more than five extortions or attempted extortions with the intent to force non-union contractors to hire union labor. Prophet recruited other members of the Ironworkers Local 401, whom he called his “Shadow Gang,” to assist him in these crimes. If a contractor refused to hire union labor, Prophet and the “Shadow Gang” typically would enter a non-union construction site at night, use sledgehammers to destroy anchor bolts, and cause tens of thousands of dollars in damage.
Ritchie, 45, of Philadelphia, pleaded guilty in December 2014 to RICO conspiracy, attempted extortion which interferes with interstate commerce and violent crime in aid of racketeering. The 12 defendants in the case were charged with conspiring to use violence and intimidation to get union members assigned to jobs on non-union worksites.
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, Upper Merion Township Police, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance provided by Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Two Individuals Sentenced to Federal Prison for Participation in Long-Running Online Child Pornography RingRead the Press Release
Two men were sentenced today for their roles in a sophisticated conspiracy to distribute child pornography online, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Joshua J. Minkler of the Southern District of Indiana.
John D. Gries, 48, of Bayshore, New York, and James McCullars, 56, of Huntsville, Alabama, were sentenced to 30 years and to life in prison, respectively, by U.S. District Court Judge Sarah Evans Barker of the Southern District of Indiana. In November 2014, the defendants were convicted by a federal jury of conspiracy to distribute and receive child pornography, conspiracy to advertise child pornography and engaging in a child exploitation enterprise.
According to evidence presented at trial, from 2000 to 2012, Gries and McCullars operated various members-only online chat rooms dedicated to the advertisement, distribution, receipt and possession of child pornography. The trial evidence, as well as admissions by other defendants prosecuted in connection with “Operation Rounder,” showed that McCullars, Gries and other members of the conspiracy used these chat rooms and a number of online servers to expand their personal collections of materials depicting the exploitation of children, and sought to evade law enforcement through the use of sophisticated data encryption software.
Operation Rounder has identified nearly 100 children around the world who have been identified as victims of abuse. Other defendants who have been convicted in connection with this investigation include:
John Edwards, 62, of Indianapolis, sentenced to 17.5 years;
Thomas Vaughn, 45, of Anderson, Indiana, sentenced to 11 years;
John Rex Powell, 43, of Fort Myers, Florida, sentenced to 30 years;
Donald Printup, 36, of Niagara Falls, New York, sentenced to 14 years;
Michael Fredette, 46, of Waterford, New York, sentenced to 27 years;
Robert Guillen, 43, of Wesley Chapel, Florida, sentenced to 14 years;
David Bebetu, 51, of Agoura Hills, California, sentenced to 12.5 years;
Stephen Harvey Dault, 48, of McKinney, Texas, sentenced to 17 years; and
Rick Ricardo Leon, 53, of Arlington, Virginia, sentenced to 12.5 years.
This case was investigated by the U.S. Postal Inspection Service, with assistance from the Indiana Internet Crimes Against Children Task Force and the Department of Justice’s High Technology Investigative Unit, as a part of Project Safe Childhood. This case is being prosecuted by Trial Attorney Amy Larson of the Criminal Division’s Child Exploitation and Obscenity Section and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana.
Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Twelve charged for healthcare fraud violations totaling $28 millionRead the Press Release
Twelve people were charged in federal court this week as part of a nationwide sweep targeting healthcare fraud violations, law enforcement officials said.
Locally, the charges represent more than $28 million in money fraudulently obtained from Medicaid, Medicare or other insurance providers. The charges stem from three unrelated cases.
Details of cases filed this week:
United States v. Knight et. al.: Five people were named in an 18-count indictment for their roles in a $7 million home healthcare fraud conspiracy in which they provided forged documents and fraudulent forms to bill for services that were not provided.
Indicted are: Delores L. Knight, 69, of Cleveland Heights; Theresa L. Adams, 42, of Twinsburg; Isaac R. Knight, 28, of Macedonia; Sonja N. Ferrrell, 43, of Cleveland, and Juliet L. Bonner, 60, of Cleveland.
All five worked in some capacity for Just Like Familee II, Inc., and Just Like Familee III, Inc., which the defendants incorporated in 2005 and 2006, respectively, to provide home health services for elderly and disabled clients. The companies had locations at various times in Cleveland Heights, Twinsburg and Mentor, according to the indictment.
Together they defrauded Medicaid, Medicare and the Department of Veteran Affairs out of more than $7 million as a result of the conspiracy in which they prepared and submitted forged or false records in support of previously submitted and reimbursed billings for patients they did not actually provide face-to-face services, according to the indictment.
Prosecutors are seeking to forfeit all money that was illegally obtained, as well as a home at 1048 Morning Glory Drive in Macedonia owned by Delores L. Knight, and a home at 7915 Ridgetop Drive in Twinsburg owned by Theresa L. Adams.
United States v. Warsame et. al.: Five people were named in a 10-count indictment for their roles in a $3 million conspiracy involving a home health service company with offices in Cleveland to defraud government insurance programs by billing for services not provided.
Indicted are: Abdulazis Warsame, 50, of Cleveland; Yasin Warsame, 48, Amir Ahmed, 50, both of Columbus; George Epps, 42, of Cleveland, and Norma Lauer, 67, of Reynoldsburg.
All five worked for Lifeline Home Health Services, which was incorporated in 2006 and had an office at 12200 Fairhill Road in Cleveland.
The defendants conspired between 2009 to 2013 to defraud Medicaid by submitting false documentation to become an accredited home healthcare provider, forging documents to make it appear doctors had approved specific plans of care, fabricating and billing for home health visits that had not taken place. Ahmed also recruited patients by offering cash kickbacks in exchange for becoming patients of Lifeline, according to the indictment.
Collectively, Ahmed, Lauer and the Warsames received payment for more than $3 million in fraudulent claims, according to the indictment.
United States v. Ward: Queen Ward, 64, of Cleveland Heights, was charged with one count of healthcare fraud while her daughter, Sharon Ward, 45, of Richmond Heights, was charged with one count each of healthcare fraud and aggravated identity theft related to the fraudulent billing of more than $18.1 million.
Together, they owned and operated Heritage Home Healthcare Agency in Cleveland Heights, despite the fact that Sharon Ward was previously convicted of Medicaid fraud, which precluded her participation in all federal health care programs for five years. Sharon Ward continued to own Heritage Home Health while she was excluded, as well as continued to see patients as a nurse, conducted nursing visits and bill Medicaid for her and her employees’ services. Queen Ward continued to bill Medicaid for her daughter’s services, and continued to pay Sharon Ward, despite the fact that she had been told by the Ohio Medicaid Fraud Control Unit that Sharon Ward was an excluded provider and had never been reinstated as an accredited provider, according to court documents.
Queen Ward also created fraudulent background checks for prospective employees that had criminal records and therefore would have been disqualified, according to court documents.
Between 2006 and 2014, Heritage Home Health received more than $18.1 million from Medicaid and Sharon Ward received a salary of more than $2.2 million, all during Sharon Ward’s period of exclusion from federal health care programs, according to court documents.
“The conduct detailed in these cases is egregious,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “These programs were designed to help the sick and infirm, and these defendants defrauded them out of millions of dollars for their own personal gain.”
“Health care fraud affects every American,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Waste, fraud and abuse take critical resources out of our health care system, contribute to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care. This week’s efforts send a message to those defrauding our system that authorities will collaboratively address this significant crime problem.”
“Today’s announcement illustrates the OIG’s continued efforts in combating health care fraud,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG and our law enforcement partners are steadfast in our commitment to detecting and dismantling health care fraud schemes and holding perpetrators of these crimes accountable.”
“Ohio has one of the best Medicaid Fraud Control Units in the country, and we diligently work with our state, local, and federal partners to weed out those who bill Medicaid and Medicare for services they did not provide or services that are not medically necessarily,” said Attorney General Mike DeWine. “Heath care fraud diverts funds from people who legitimately need care, and through joint efforts like this one, we intend to continue to aggressively go after those who steal from taxpayers and take money that they are not entitled to receive.”
“Healthcare Fraud Task Force investigations are vital in identifying and holding accountable those who would steal from taxpayers, Medicare beneficiaries and veterans,” said Gavin McClaren, Cleveland Resident Agent in Charge, Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division.
“IRS-Criminal Investigation is dedicated to ensuring those that choose to launder their ill-gotten gains are held accountable for their crimes,” said Kathy Enstrom, Special Agent in Charge of IRS-Criminal Investigation Cincinnati Field Office. “Forfeiture of these assets should serve as a warning that law enforcement will not tolerate such flagrant abuse of our safety net programs.”
These are the just latest healthcare fraud cases filed by federal prosecutors following investigations by federal and state agencies. Others include indictments against Dr. Harold Persaud, who is awaiting trial on charges that he performed unnecessary catheterizations, tests, stent insertions and caused unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $7.2 million; seven people and a company for their roles in a multi-million dollar fraud conspiracy involving an experimental form of chiropractic manipulation performed in Shaker Heights; three people who operated Eman Transportation Services in Cleveland charged with defrauding Medicaid of approximately $245,000 by billing for rides of patients who did not use or need wheelchairs and for transporting Medicaid recipients to non-covered appointments and an Akron physician was sentenced to 10 years in prison for illegally prescribing hundreds of thousands of doses of painkillers and defrauding health insurance by submitting insurance claims for unperformed services, billing insurance providers for services after collecting a cash payment, and other fraudulent practices.
These cases are being prosecuted by Assistant U.S. Attorneys Michael L. Collyer, Mark Bennett, Adam Hollingsworth and Special Assistant U.S. Attorney Maritsa Flaherty, following investigations by the Federal Bureau of Investigation; U.S. Department of Health & Human Services, Office of Inspector General; Ohio Attorney General’s Medicaid Fraud Control Unit; the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division; the Internal Revenue Service – Criminal Investigations.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment or information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twelve Charged in Western District of Kentucky as Part of Largest National Medicare Fraud Takedown in HistoryRead the Press Release
Six cases charged during three day sweep totaling approximately $7.8 million in false billings
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the results of a health care fraud sweep in the Western District of Kentucky as part of the largest national Medicare fraud takedown led by the Justice Department and Department of Health and Human Services (HHS) Medicare Fraud Strike Force. The three day sweep, in the Western District of Kentucky, resulted in charges against 12 individuals, including three medical physicians, for their alleged participation in health care fraud schemes, involving approximately $7.8 million in fraudulent billings.
“Losses caused by health care fraud are staggering, amounting to tens of billions of dollars every year,” said Acting U.S. Attorney John Kuhn. “Sadly, these fraud losses are passed along to the rest of us in the form of increased health care costs. For that reason, investigating and prosecuting health care fraud is one of the Department of Justice’s highest priorities. As these cases demonstrate, federal, state and local law enforcement agencies are working together to turn the tide by prosecuting more fraudsters and recovering more money. And our enforcement efforts make great financial sense, too: when we pursue fraud against federal health care programs, we know we recover almost eight dollars for every dollar we expend in investigative and prosecution costs.”
“The Healthcare industry is massive and as a result Health Care Fraud is big business for criminals,” stated FBI Special Agent in Charge Howard S. Marshall. “HCF is one of our top Complex Financial Crime priorities and we continue to dedicate significant investigative resources to address it. We work closely with our local, state and federal partners; I am proud of our investigators who work hard to hold these criminals accountable.”
“Kentucky is facing an epidemic of prescription drug abuse,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Physicians who overprescribe narcotics not only waste valuable taxpayer dollars and defraud Medicare and Medicaid, they also threaten the health and safety of their patients.”
In the Western District of Kentucky, three physicians were charged in separate cases. The charges included billing for services at a higher code than the service provided, prescribing pain medications that resulted in the deaths of patients, and billing for non FDA approved IUDs.
Further, in a separate scheme, five defendants were charged with operating chiropractic clinics that falsely billed health care benefit programs approximately $5 million for injections that patients never received. Another charged scheme involved the alleged staging of an auto accident for passenger participants to seek unnecessary pain management treatment. (Indictments and press releases are attached)
Nationally, the sweep resulted in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings. In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act. The coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.
U.S. Attorney Kuhn acknowledged and credited the law enforcement agencies investigating these cases: Federal Bureau of Investigation (FBI), the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), the U.S. Drug Enforcement Administration (DEA), the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation, the National Insurance Crime Bureau, FDA – Office of Criminal Investigations, Kentucky State Police (KSP), Indiana and Kentucky Medicaid Fraud Control Units, Warren County Drug Task Force and Louisville Metro Police Department.
Tulare County Man Charged with Committing More Mail Theft Crimes While Pending Trial in Mail Theft CaseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a superseding indictment today alleging that Shannon Lester Sorrells, 36, of Dinuba, committed bank fraud and aggravated identity theft while awaiting trial for the original indictment, United States Attorney Benjamin B. Wagner announced.
According to the indictment, in May and June 2014, Sorrells stole three neighborhood delivery collection box units containing United States mail in Visalia. On July 3, 2014, a federal grand jury charged him with three counts of theft of government property and three counts of theft of U.S. Mail. Sorrells was released on his own recognizance, and trial was scheduled for August 4, 2015.
The superseding indictment returned today alleges that between December 2014 and February 2015, Sorrells obtained United States mail containing personal identification and financial information, including checks, of victims without their knowledge. He opened bank accounts in victims’ names and altered the checks and deposited them into the accounts. At times when committing the fraud, Sorrells presented himself as one of the victims whose identities he stole. Sorrells has been in custody since March 5, 2015.
This case is the product of an investigation by the United States Postal Inspection Service and the Visalia Police Department. Assistant United States Attorneys Megan A. S. Richards and Jeffrey Spivak are prosecuting the case.
If convicted, Sorrells faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the bank fraud charges, five years in prison and a $250,000 fine for theft of mail, and a mandatory two-year consecutive sentence for the aggravated identity theft charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Trio Charged with Running Illegal Pill Mill in Scioto CountyRead the Press Release
CINCINNATI – A federal grand jury has charged Margaret Temponeras, 50, of Portsmouth, Ohio, John Temponeras, 80, of Portsmouth, Ohio and Raymond Fankell, 60, of Wheelersburg, Ohio, with illegally running a pain clinic and distributing pain killers not for a legitimate purpose and outside the scope of medical practice in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy, and the Ohio High Intensity Drug Trafficking Area (HIDTA) announced the indictment returned today.
The indictment alleges that Margaret Temponeras and John Temponeras were physicians specializing in family practice and OBGYN respectively, who changed their medical focus to pain management and began operating Unique Pain Management LLC in Wheelersburg, Ohio. Margaret Temponeras also opened Unique Relief LLC in Wheelersburg, Ohio. Raymond Fankell owned and operated Prime Pharmacy Group Inc., doing business as Medi-Mart Pharmacy in Portsmouth, Ohio.
It is alleged that all three defendants dispensed diazepam, hydrocodone and oxycodone not for a legitimate purpose and outside the scope of medical practice. Margaret and John Temponeras allegedly “examined” more than 20 customers per day, and provided large amounts of prescription medications to customers that they knew or had a reasonable cause to believe were drug addicts or diverting/selling the medication.
The five-count indictment states that in furtherance of the conspiracy, the father and daughter would charge customers cash amounts that started at approximately $200 per office visit; they would not accept insurance payments. They allegedly referred patients to Fankell to have Fankell fill prescriptions. The court document also indicates that at least eight individuals were found dead after consuming medications prescribed by and dispensed from the defendants.
The three were charged with two counts of illegally distributing medication, which each carry a maximum penalty of 20 years in prison and a million dollar fine; these charges also carry an enhanced penalty of 20 years to life in prison if death resulted. John Temponeras and Raymond Fankell were charged with one count and Margaret Temponeras with two counts of maintaining a place for the purpose of distributing controlled substance, a crime punishable by up to 20 years in prison and a fine of up to $500,000.
U.S. Attorney Stewart commended the investigation of this case by the DEA, FBI, Ohio State Board of Pharmacy, and Ohio HIDTA.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Three Individuals Charged in South Florida for Possessing with the Intent to Distribute alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka”Read the Press Release
Two central Florida residents have been charged by indictment with conspiracy to import alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a "Flakka" from China. A Broward County resident has also been charged by indictment with distributing “Flakka” within 1000 feet of a Ft. Lauderdale elementary school and possession of a firearm in furtherance of drug trafficking crime.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Franklin Adderley, Chief, City of Fort Lauderdale Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Michael J. Hernandez, 25, from Orlando, and Jonell Philip Vega-Mercado, 19, from Clermont, were charged with conspiracy to import, conspiracy to possess with the intent to distribute, and possession with the intent to distribute a Schedule I controlled substance, alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka.” If convicted, the defendants face a maximum statutory sentence of 20 years in prison for each offense.
According to allegations contained in court records, U.S. Customs and Border Protection (CBP) Officers in Chicago identified, searched and detained multiple parcels destined for Broward County, in the Southern District of Florida. Each of the parcels was shipped from China and allegedly contained multi-kilogram packages of a controlled substance, alpha-Pyrrolidinopentiophenone (a-PVP), a/k/a “Flakka.” The parcels were mailed to locations in Broward County. Hernandez and Vega-Mercado were apprehended while picking up two (2) of the packages in Fort Lauderdale. In total, law enforcement seized approximately 24 pounds of “Flakka,” with a total street value of approximately $500,000.
In a separate indictment, Brandon Laquaine Anderson, 29, was also charged with possession with intent to distribute “Flakka” within 1000 feet of a Ft. Lauderdale elementary school, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a convicted felon. If convicted of possession with intent to distribute “Flakka” within 1000 feet of a Ft. Lauderdale elementary school and possession of a firearm in furtherance of a drug trafficking crime, Anderson faces a minimum sentence of six years in prison and a maximum sentence of life imprisonment.
United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack the trafficking and importation of “Flakka,” and protect our community from exposure to this dangerous and potentially deadly drug, is of paramount importance. Today’s charges demonstrate that we are dedicated to improving public safety and the quality of life for law-abiding residents by protecting our neighborhoods and schools, adopting proactive law enforcement initiatives, and prosecuting repeat offenders, firearms violators, and narcotics traffickers.”
“These dangerous synthetic drugs compromise the public safety of our communities,” said HSI Miami Special Agent in Charge Alysa D. Erichs. “As today’s charges demonstrate, HSI will continue to aggressively target this emerging threat to the South Florida region.”
DEA Special Agent in Charge A.D. Wright stated, “Synthetic drugs are the most lethal drugs out there today no matter what trendy names these drugs dealers attach to them. Last year it was Molly, now it’s Flakka, and who knows what it will be called next. These are only street terms and these drugs can contain anything. The users are allowing themselves to be utilized as guinea pigs. They have no idea what they are putting into their bodies. The DEA will continue to work with our law enforcement partners to keep our citizens safe and put these dangerous drug dealers out of business.”
“Law enforcement in Florida are working collaboratively to combat the distribution of a very dangerous synthetic drug called “Flakka,” stated Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “We will aggressively investigate those that use the mail for criminal activity and bring them to justice.”
“The Fort Lauderdale Police Department will continue to work with various federal agencies and local partners to break the pipeline of flakka entering our community.”
“These drug dealers are only interested in padding their pockets and have complete disregard for the damage they cause to our families and our communities,” Sheriff Scott Israel said. “In addition to our enforcement efforts, I’ve put together a team of experts from our agency to educate the community about the dangers of this deadly drug in an effort to prevent more deaths.”
Mr. Ferrer commended the investigative efforts of HSI, DEA, USPIS, CBP, Fort Lauderdale Police Department and BSO. Both cases are being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
Three Defendants in Bristol Virginia Utilities Kickback Scheme SentencedRead the Press Release
ABINGDON, VIRGINIA – Three of the four defendants convicted in a kickback scheme at the Bristol Virginia Utilities Authority were sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
Robert James Kelley, 61, of Lexington, Va., David Copeland, 44, of Bristol, Va., and Michael Clark, 63, of Colbert, Ga., were all sentenced today for their roles in the scheme.
“This is a sad day for these defendants and their families. They have chosen to use their positions to enrich themselves at the expense of those who put their trust in them. Identifying public corruption is a priority for my office and prosecuting the offenders is necessary to maintain the public’s trust in our government institutions,” Acting United States Attorney Anthony P. Giorno said today. “I am proud of the cooperative work done by the investigators in this case, and I believe justice has been served.”
“Public corruption erodes the foundation of trust and confidence of a government’s procurement system,” Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division said today. “The FBI, recognizing public corruption as our top criminal priority, pledges to continue to work with our law enforcement partners and community members to hold accountable those who circumvent and manipulate the system for personal gain.”
“It is unacceptable to help yourself to the American public’s money and violate their trust,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today's sentencing’s stand as examples that IRS-CI, along with the United States Attorney and our law enforcement partners, will continue to investigate and prosecute crimes involving financial fraud and in particular fraud that erodes the public’s confidence.”
Kelley Jr., who is a former Vice President of Field Operations for BVU, previously pled guilty to one count of a multi-object conspiracy to commit mail fraud, money laundering and to defraud the United States. Today in District Court, Kelley was sentenced to 30 months in prison and ordered to pay $330,510 in restitution. In addition, he will forfeit $165,375.
Copeland, who is also a former Vice President of Field Operations for BVU, previously pled guilty to one count of a multi-object conspiracy to commit wire fraud and money laundering. Today in District Court, he was sentenced to 24 months in prison and ordered to pay $144,000 in restitution. In addition, he will forfeit $50,000.
Clarke, who previously performed contract work for BVU and submitted false invoices to Kelley Jr., previously pled guilty to one count of engaging in a conspiracy to defraud the Internal Revenue Service. Today in District Court, he was sentenced to eight months of federal incarceration. Clark was also issued a $2,000 fine and ordered to pay $110,065 in restitution.
A fourth defendant, James Todd Edwards, has yet to be sentenced for his role in the conspiracy.
The investigation of the case, which remains ongoing, is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
Temple Hills Man Sentenced to Seven Years in Prison for Distributing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Justin Alonza Jefferson, age 22, of Temple Hills, Maryland, today to seven years in prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Chuang ordered that upon his release from prison, Jefferson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Under the law, children who are abused to produce child pornography, and whose images are traded on the internet are entitled to restitution. Judge Chuang also ordered Jefferson to pay restitution totaling $7,500 to three such identified victims, whose images were among the child pornography Jefferson possessed.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to Jefferson’s plea agreement, in December 2012, Jefferson uploaded files depicting children engaged in sexually explicit conduct. On April 5, 2013, a search warrant was executed at Jefferson’s residence and law enforcement seized Jefferson’s laptop computer and an external hard drive, among other items. Jefferson was interviewed and admitted that he had been collecting child pornography since he was 12 years old and that his laptop and external hard drive contained images and videos of child pornography. A subsequent review of the laptop and external hard drive revealed approximately 8,000 image files and 800 movie files depicting minors engaged in sexually explicit conduct. Jefferson further admitted that he traded child pornography via the internet. A search warrant was executed for Jefferson’s email account and law enforcement seized numerous emails to and from Jefferson attaching image files of child pornography.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation, and thanked the National Center for Missing and Exploited Children for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Nicolas A. Mitchell and Michael T. Packard, who prosecuted the case.
Tampa Man Convicted for Receiving Stolen Government PropertyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Charvester Anthony guilty of five counts of receiving stolen government property. He faces a maximum penalty of 10 years in federal prison on each count. His sentencing hearing is scheduled for September 18, 2015. Anthony was indicted on February 13, 2014.
According to testimony presented at trial, Anthony, who owned and operated two restaurants in Tampa, also conducted a fencing operation by cashing a series of stolen U.S. Treasury income tax refund checks and subsequently depositing them into his business and personal bank accounts. Most of the refund checks were obtained by means of fraudulent income tax returns that were filed using stolen identities. All of the checks bore forged signatures. According to the evidence presented at trial, Anthony knew that the checks were stolen when he cashed them, and consequently charged huge fees for doing so.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Bob Mosakowski.