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5 August 2015
New Iberia man sentenced to 30 years in prison for producing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a New Iberia man was sentenced to 360 months in prison for videoing boys over the internet engaging in sexual activity.
Raymond F. Doyle III, 41, of New Iberia, La., was sentenced by U.S. District Judge Richard T. Haik on one count of producing child pornography. He was also sentenced to a lifetime of supervised release and ordered to pay $735.95 restitution. According to evidence presented at the April 16, 2015 guilty plea, Doyle began communicating with numerous boys in the summer of 2011 using the internet and the video streaming internet service Skype. Doyle caused one of the boys to engage in sex acts while being videoed using Skype. A search of Doyle’s home computer revealed evidence that Doyle had contact with more than 60 boys. In most cases, Doyle pretended to be a female in order to encourage the boys to communicate with him.
“This case shows that exploitation of children has severe consequences for those who engage in these depraved activities,” Finley stated. “This sentence will help keep this defendant from harming more children. I also want to thank the prosecutor and law enforcement agencies for their help in securing this prosecution. Protecting children from predators requires cooperation among law enforcement agencies.”
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.
New Haven Man Sentenced to 37 Months in Federal Prison for Illegally Possessing Semi-Automatic RifleRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY REID, 26, of New Haven, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on October 20, 2014, REID was arrested on state narcotics warrants. On that date, New Haven Police officers searched a residence where REID had stayed the prior night and seized a Global Machine and Tool, model M70AB2 7.62 x 39 millimeter semi-automatic rifle. The firearm was loaded with 35 rounds of ammunition. The search also revealed approximately 147 grams of suspected marijuana.
REID has admitted that he possessed the firearm for approximately three weeks.
REID’s criminal history includes felony convictions for stealing a firearm and possession with intent to distribute a controlled substance. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
REID has been detained since his arrest. On April 30, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. This case was prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Nelson.
Navajo Man Pleads Guilty to Discharging Firearm While Assaulting Four Indian Women and Two ChildrenRead the Press Release
ALBUQUERQUE – Jeffrey J. Franklin, 31, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today in Albuquerque, N.M., to violating the federal firearms laws by discharging a firearm during an act of violence. Under the terms of his plea agreement, Franklin will be sentenced to ten years in federal prison.
Franklin was arrested in Aug. 2014, on a criminal complaint charging him with assault with a dangerous weapon and abusing a child by placing the child in a situation that could endanger the child’s life. The complaint alleged that Franklin committed these crimes on Aug. 9, 2014, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, on Aug. 9, 2014, Franklin assaulted four Indian women and two Indian children by firing shots while inside the residence of one of the victims and by firing shots at the victims’ vehicles. Two children were inside one of the vehicles when Franklin shot at the vehicle.
Franklin was subsequently indicted on Nov. 19, 2014, and charged with four counts of assault with a dangerous weapon with intent to do bodily harm, negligently placing minors in a situation that endangered the children’s health, and two counts of using and discharging a firearm during and in relation to a crime of violence.
During today’s proceedings, Franklin pled guilty to one count of using and discharging a firearm during and in relation to a crime of violence.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys Novaline D. Wilson and Kyle T. Nayback are prosecuting the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Mo’ Money Tax Preparers Charged in Tax Return SchemeRead the Press Release
RICHMOND, Va. – Erik Pittman and Jeremy Blanchard, both 35 and from Memphis, Tennessee, and Corey Taylor, 25, of Richmond, were indicted by a federal grand jury today on charges of conspiracy to defraud the United States and aiding in the preparation of 19 false and fraudulent U.S. individual tax returns.
According to the indictment, Pittman, Blanchard and Taylor held themselves out as tax preparers for tax year 2011, operating three locations of a business known as Mo’ Money Taxes. The indictment alleges that the three men, along with others, created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity credit, to claim tax refunds that customers were not entitled to receive.
If convicted, Pittman faces a maximum penalty of 23 years in prison; Blanchard 29 years; and Taylor 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Caroline Ciraolo, Acting Assistant Attorney General for the Department of Justice Tax Division; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Adam S. Lee, Special Agent in Charge of the FBI’S Richmond Field Office; and David G. Bowers, Acting Inspector in Charge of the U.S. Postal Inspection Service (USPIS), made the announcement after the indictment was returned by the grand jury.
This case was investigated by IRS-CI, the FBI’s Richmond Field Office, and the USPIS. Assistant U.S. Attorney Stephen W. Miller, and Department of Justice Attorneys Todd Kostyshak and Kevin Sweeney are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-196.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Michigan Man Sentenced to 18 Months in Prison for Transporting Oxycodone from Detroit to PittsburghRead the Press Release
PITTSBURGH - A Michigan man has been sentenced in federal court to 18 months imprisonment and three years supervised release on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Lamont Whitfield, 34.
According to information presented to the court, Whitfield was responsible for transporting 1,326 Oxycodone 30 mg pills from Detroit to Allegheny County in June and July of 2014.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Federal Bureau of Investigation, Pennsylvania Attorney General’s Office, Pennsylvania State Police, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Whitfield.
Metairie Man Pleads Guilty to Recording Movies in a Local Theater and Criminal Infringement of a CopyrightRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK HOLLOWAY, age 31, of Marrero, pled guilty today to both counts of a two-count Bill of Information charging him with unauthorized recording of a motion picture and criminal infringement of a copyright.
According to court documents, in 2014, HOLLOWAY used a digital camcorder to record approximately ten first-run motion pictures at the AMC Westbank Palace, located in Harvey, including When the Game Stands Tall and The Equalizer. HOLLOWAY subsequently duplicated and sold copies of some or all of the motion pictures. Additionally, HOLLOWAY manufactured and sold CDs and DVDs containing copyrighted musical works and motion pictures out from his business, Gold Teeth Kingz, located in Harvey. Specifically, during the execution of a search warrant at Gold Teeth Kingz in early January 2015, law enforcement authorities found and seized approximately 2,932 pirated DVDs containing copyrighted motion pictures, including When the Game Stands Tall and American Sniper, and 749 pirated CDs containing copyrighted musical works, including “Kingdom Come,” by Jay-Z and “Dangerously in Love,” by Beyoncé.
HOLLOWAY faces a maximum term of imprisonment of not more than three years as to Count 1 and five years as to Count 2, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Kurt D. Engelhardt set sentencing for November 4, 2015.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Member of Young Melph Mafia (YMM) Neighborhood Gang Sentenced to 18 Years for Drug and Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RUBEN GEIGER, age 22, a resident of New Orleans, was sentenced today for his participation in a drug conspiracy and a conspiracy to possess and use firearms in connection with the drug trafficking activities of a local gang known as the “Young Melph Mafia” or “YMM.”
U.S. District Judge Kurt D. Engelhardt sentenced GEIGER to 220 months imprisonment, to be followed by four years of supervised release.
GEIGER was originally charged in a five-count Superseding Indictment with nine other YMM members, who frequented the area of the former Melpomene Housing Project. According to the factual basis filed in open court, GEIGER and other YMM members participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court last year. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward J. Rivera and Maurice E. Landrieu, Jr. were in charge of the prosecution.
McCall Woman Sentenced for Shipping a Loaded Gun in MailRead the Press Release
BOISE – Tami Dee Bachart, 47, of McCall, Idaho, was sentenced yesterday to one year of probation for mailing injurious articles and causing a firearm to be present in a federal facility, U.S. Attorney Wendy J. Olson announced. As part of her sentence, Chief U.S. District Judge B. Lynn Winmill ordered Bachart to serve 200 hours of community service, pay $3,397.28 in restitution and pay a $1,000 fine. Bachart pleaded guilty to the crimes on May 12, 2015.
According to the plea agreement, on December 2, 2014, Bachart deposited a package containing a handgun and ammunition into the mail at the United States Postal Service in McCall, Idaho. The package was addressed to a location in Windsor, Connecticut. The U.S. Postal Service transported the package for delivery. While in route to Connecticut, the package arrived at a processing and distribution center in Springfield, Massachusetts. When a U.S. Postal Service employee picked up the package for further distribution, the handgun, which was a loaded Ruger Blackhawk .357 revolver, discharged while in the hands of the employee. The employee was not seriously injured, but sought medical attention due to ringing ears and stinging hands. When the police officers opened the package, they discovered the loaded revolver with additional ammunition and other items. U.S. Postal Inspectors and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives contacted the intended recipient in Connecticut who confirmed Bachart mailed the package. A U.S. Postal Inspector and a Police Officer with McCall Police Department later interviewed Bachart who admitted to sending the package containing the revolver. Bachart denied knowing the firearm was loaded and stated she did not intend to hurt anyone.
During sentencing, Judge Winmill noted that Bachart did not intend to hurt anyone and made a mistake. However, he cautioned her about the tragic loss of life that could have occurred. Federal law prohibits the mailing of concealable firearms, except under limited circumstances as prescribed in the U.S. Postal Service regulations. Federal law also prohibits the mailing of ammunition.
This case was investigated by United States Postal Service Inspection Service in Boise, Idaho, Springfield, Massachusetts, and Windsor, Connecticut; Bureau of Alcohol, Tobacco, Firearms and Explosives; McCall Police Department; and Springfield Police Department.
Massachusetts Man Sentenced on Misbranding ChargesRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced that Mohamed Alam, 62, of North Andover, Massachusetts, was sentenced today to one year probation in U.S. District Court after pleading guilty to Causing Misbranded Drugs to be Introduced into Interstate Commerce. Alam was also ordered to pay a $1000 fine and a money forfeiture of $18,737.00.
On October 3, 2012, the North Andover, Massachusetts Police Department responded to a call for a female having seizures due to a possible drug overdose. The female was interviewed at the Lawrence General Hospital and stated that she had been using “Crazy Monkey” which she purchased at the Richdale convenience store located at 4 Main St., North Andover, Massachusetts. “Crazy Monkey” is a synthetic cannabinoid.
The North Andover Police Department and DEA conducted an investigation using a confidential informant (CI) who purchased a variety of the “Monkey” products, all synthetic cannabinoids, from the convenience store between October 9, 2012 through June 20, 2013. On June 26, 2013, a federal search warrant was executed at the Richdale convenience store. The agents seized several packages of the “Monkey” product.
The synthetic cannabinoids were misbranded in that: (1) the product was sold as potpourri when in fact the product was intended for use as a drug for human consumption; (2) its label, in package form, failed to include the name and address of the manufacturer, packer, or distributor; (3) its labeling did not bear adequate directions for use; and (4) its labeling did not bear such adequate warnings against use in those pathological conditions and by children.
“Our office will continue to work with local, state and federal law enforcement to combat the sale of synthetic controlled substances,” said Acting United States Attorney Donald Feith. “The sale of these substances has been banned in New Hampshire, and we will continue to fight against the illegal distribution of these substances.”
“The North Andover Police Department appreciates the United States Attorney’s Office and DEA working with local law enforcement to combat our current problems with synthetic drugs and opiates. Our School Resource officers are educating students of these illicit drugs and their unknown ingredients that can cause traumatic overdose and other medical issues. We will continue to work tirelessly with our law enforcement and community partners to stem the flow of these substances that harm our citizens,” stated Paul J. Gallagher, Chief of Police, North Andover Police Department.
The case was investigated by the Drug Enforcement Administration (DEA) and the North Andover Police Department. This case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Massachusetts Businessman Indicted for Tax FraudRead the Press Release
The owner of a heating, ventilation and air conditioning (HVAC) installation and repair company from West Bridgewater, Massachusetts, was arraigned today in U.S. District Court in Boston on an indictment filed on July 23 charging him with one count of tax evasion, five counts of filing false federal income tax returns and four counts of failing to file tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the indictment, Keith A. Eaton failed to file tax returns for tax years 1998 through 2003. In 2004, the Internal Revenue Service (IRS) assessed him with approximately $280,000 in taxes, interest and penalties, which he failed to pay. Eaton also filed delinquent false tax returns for tax years 2000 through 2008, on which he failed to report the income that he had earned working for another HVAC company located in Brockton, Massachusetts. Eaton allegedly attached false IRS Forms 1099, Miscellaneous Income, to some of the false tax returns that he submitted. The Forms 1099 purportedly reflected the compensation he had received from companies for whom he had performed work, but Eaton altered the forms to falsely show that he had not received compensation.
The indictment further alleges that in 2008, Eaton began operating his own HVAC company, Eaton Mechanical LLC. In order to obstruct the IRS from collecting taxes that Eaton owed, he caused the HVAC company to be registered in the name of a nominee and caused the nominee to be listed as the signatory on the business bank account. To further conceal his financial transactions from the IRS, Eaton used cash to pay his personal expenses.
If convicted, Eaton faces a statutory maximum sentence of five years in prison for tax evasion, a statutory maximum sentence of three years in prison for each count of filing a false return and a statutory maximum sentence of one year in prison for failing to file a return. He also faces substantial monetary penalties, including fines and restitution to the IRS. His arraignment is scheduled for Aug. 28 at 10:00 a.m. in Boston.
Acting Assistant Attorney General Ciraolo commended the special agents of the IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Kenneth C. Vert and Brittney N. Campbell of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the District of Massachusetts for their substantial assistance.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Marion man indicted for distributing heroin and fentanyl that resulted in overdose deathRead the Press Release
A nine-count federal indictment was filed charging a Marion man with selling heroin and fentanyl that resulted in an overdose death, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and U.S. Drug Enforcement Administration’s Special Agent in Charge Joseph P. Reagan.
Eric L. Creagh, 32, was indicted on one count of distribution of heroin and fentanyl that resulted in death, three counts of distribution of heroin and fentanyl, three counts of distribution of heroin and two counts of being a felon in possession of firearms.
Creagh is accused of selling heroin and fentanyl on May 22 that resulted in the death of Christopher Wolford. He is also charged with possessing more than a kilogram of a mixture of heroin and fentanyl, as well as selling heroin and fentanyl at various dates in May and June 2015. Creagh is also accused of possessing a Ruger .380-caliber pistol and a Heritage .22-caliber revolver, despite a 2008 conviction for felonious assault.
“This defendant is charged with selling the blue-drop heroin that caused so many overdoses, heartache and even death,” Dettelbach said. “The DEA is to be commended for working with the local police to protect the citizens of Marion. This case should serve as yet another reminder that heroin and fentanyl should be avoided. Trying heroin is not only a mistake -- it may be the last mistake a person ever makes.”
Reagan said: “We have made it a priority to investigate the distribution of narcotics that result in death. Today’s charges send a strong message to all narcotic traffickers that they will face real consequences, for the harm that they inflict on the user and society. The level of cooperation by all of the law enforcement agencies in this investigation has been extraordinary and serves as a model for the future.”
According to a federal affidavit filed in the case earlier this year:
A confidential informant purchased more than 20 grams of "blue drop" heroin from Creagh on five separate occasions between May 30 and June 8.
Members of the Drug Enforcement Administration, the Marion Metro Drug Enforcement Unit (MARMET), the Marion Police Department and the Marion County Sheriff's Office executed search warrants at two homes owned by Creagh on June 10. Creagh was arrested and law enforcement agents recovered two firearms, approximately one kilogram of a heroin/fentantyl mixture, blue fabric dye, a face mask with a filtration system and rubber gloves, two hydraulic presses and approximately $45,000 in cash.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Thomas Weldon following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Local Daycare Worker Arrested for Allegedly Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old woman from Corpus Christi has been taken into custody upon the filing of a criminal complaint alleging she produced and distributed child pornography, announced U.S. Attorney Kenneth Magidson. The complaint alleges Christina Cortez produced the graphic images while working at a daycare facility in Corpus Christi and further distributed them to Matthew Harbin, 29, of Brownsville. Harbin is also charged in the complaint.
Cortez is expected to make her initial appearance before U.S. Magistrate Judge Jason Libby in Corpus Christi at 2:00 p.m. today.
Harbin is currently in state custody on related charges and is expected to be transferred to federal custody and make his initial appearance in the near future.
According to the criminal complaint, the case began after Harbin was identified as providing images to an undercover officer in England. Using the email address [email protected], Harbin allegedly first provided three photos of a child clothed and not sexually posed, but that appeared to be taken at a daycare facility. The complaint alleges that he stated he had more pictures, wanted to trade and asked the person if they had a daughter and how young they were “in to.” Harbin later allegedly sent five more pictures of what appears to be the same female child, but that were sexually explicit in nature. One image depicts the child laying down on a blue mat with her dress lifted and her lower body exposed, according to the charges. Other images allegedly depict an adult female’s hand making contact with a child’s private area.
Further investigation revealed Harbin had previously received the images from Cortez in July 2014, according to the complaint. In their communications, Cortez claimed to work at a daycare facility where she allegedly obtained the images. Cortez allegedly sent images of the same female child involved in sexually explicit conduct. The child’s genitals appear to be the focus of all three of the aforementioned images, according to the complaint, one of which includes the child fondling herself.
In their communications, both Harbin and Cortez allegedly indicate a desire to engage with children. During one conversation, the complaint alleges Cortez told Harbin “I would love to watch us with her. 2 & half.”
If convicted of the production charges, both face a minimum of 15 and up to 30 years in federal prison, while the distribution of child pornography carries a minimum of five and up to 20 years of imprisonment.
The charges are the result of an investigation by Homeland Security Investigations and the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Laplace Men Plead Guilty to Fraudulent Claims for Oil Spill CompensationRead the Press Release
The United States Attorney’s Office for the Eastern District of Louisiana announced that HARDELL MACK, age 43, and MICHEGEL BUTLER, age 40, residents of LaPlace, each pled guilty today to one count of conspiracy to commit wire fraud relating to fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (“GCCF”), for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, beginning in or about September 2010, MACK and BUTLER recruited claimants, requested their personal information, and submitted or caused to be submitted fraudulent GCCF claim forms generated online and transmitted to the GCCF falsely stating that the claimants worked as non-owner captain/deckhands on a shrimp boat in Venice, Louisiana, and suffered economic loss. Based on the fraudulent documentation, the GCCF issued approximately $65,300 to undeserving individuals. MACK and BUTLER shared in the claims proceeds.
MACK and BUTLER each face a maximum term of imprisonment of five years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment. MACK owes restitution in the amount of $36,500, and BUTLER owes restitution in the amount of $28,800. U.S. District Judge Sarah S. Vance set sentencing for December 16, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The United States Attorney’s Office for the Eastern District of Louisiana praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of the prosecution.
Kentucky Resident Pleads Guilty in Manhattan Federal Court to Hiding Hundreds of Thousands of Dollars in Secret Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PETER CANALE, a United States Citizen and resident of Jamestown, Kentucky, pled guilty today to willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) with the Internal Revenue Service (“IRS”) regarding secret bank accounts that he maintained and controlled in Switzerland. CANALE maintained his undeclared accounts at multiple different Swiss banks for approximately ten years, from 2000 through 2010. During that time, CANALE’s undeclared assets reached a high value of over $780,000. CANALE entered his guilty plea before U.S. District Judge Katherine B. Forrest.
According to the superseding Information filed in Manhattan federal court, other court documents, and statements made in connection with CANALE’s guilty plea:
Beginning in the early 1990s, a relative of CANALE (the “Relative”) maintained an undeclared offshore bank account at a predecessor firm of the Swiss bank UBS AG. Upon the Relative’s death in July 2000, CANALE met in Manhattan with two Swiss bankers, Hans Thomann and Beda Singenberger, and discussed the continued maintenance of the assets that CANALE and his brother, Michael Canale, had inherited from the Relative. They agreed that Thomann, working with Singenberger, would continue to maintain the assets in an undeclared bank account in Switzerland for the benefit of CANALE and Michael Canale. Later, in July 2005, with the assistance of Singenberger, CANALE opened an undeclared account at Wegelin & Co. (“Wegelin”), a Swiss private bank. CANALE’s undeclared account at Wegelin was opened in the name of a sham foundation organized under the laws of Liechtenstein, called the Janara Foundation. CANALE, however, remained the beneficial owner of the assets in the Janara Foundation account. As of December 31, 2009, the Janara Foundation account at Wegelin held assets valued at approximately $788,920.
In May 2010, Singenberger, acting under the authority given to him by CANALE, opened an undeclared bank account in the name of the Janara Foundation at another Swiss private bank (“Swiss Bank A”), and transferred the assets from the Janara Foundation account at Wegelin to the Janara Foundation account at Swiss Bank A. As of October 31, 2010, the Janara Foundation bank account at Swiss Bank A, of which CANALE was the beneficial owner, held assets valued at approximately $718,143.
As charged in the superseding Information, for each of the calendar years from 2007 through 2010, CANALE was required, but failed, to file FBARs with the IRS disclosing his signatory or other authority over the Janara Foundation accounts held at Wegelin and Swiss Bank A, which had an aggregate value of more than $10,000 during each of these years. For each of the calendar years from 2007 through 2010, CANALE also filed false Forms 1040 with the IRS, in which he failed to report as income the dividends, interest, and other income received by him from the Janara Foundation accounts at Wegelin and Swiss Bank A.
* * *
CANALE, 62, faces a maximum sentence of five years in prison. As part of his plea, CANALE has agreed to pay a civil penalty of $394,460, file amended tax returns, and pay back taxes of $106,820. He is scheduled to be sentenced by Judge Forrest on December 3, 2015 at 1:00 p.m. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the IRS-CI in the investigation. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Jorge Almonte (of the Tax Division) and Assistant United States Attorney Sarah E. Paul are in charge of the prosecution.
Kenneth Stephen Fagin, Jr. and Terry Bruce Tate Sentenced to Serve 30 Months in Prison for Illegally Excavating Civil War Artifacts from Public LandsRead the Press Release
CHATTANOOGA, Tenn. - Kenneth Stephen Fagin, Jr., 39, of South Pittsburgh, Tenn., and Terry Bruce Tate, 61, of Manchester, Tenn., were sentenced on July 30, 2015, by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 30 months in federal prison. Fagin was ordered to pay $22,463.59 in restitution to the Tennessee Valley Authority (TVA) and the National Park Service to cover the cost of restoration and repair to the sites. Tate was ordered to pay $21,619.59 in restitution to the TVA. Upon their release from prison, Fagin and Tate will each serve a one-year term of supervised release.
Fagin and Tate pleaded guilty in February 2015 to multiple counts of violating the Archaeological Resources Protection Act (ARPA), including violations in the Eastern District of Tennessee, Northern District of Alabama, and Western District of Tennessee. ARPA first became law in 1979 as a way to protect against the loss and destruction of archaeological resources found on public and Indian lands that are an “irreplaceable part of the nation’s heritage.”
From September 2007 to July 2011, Fagin, Tate and others excavated Civil War era artifacts from the bottom of Fort McCook, also known as Battle Creek, which is located on TVA property. Specifically, Fagin, Tate and others recovered Civil War Hotchkiss shells, which are pieces of artillery used during the Civil War. Fagin and Tate did not have permits as required under the ARPA nor did they have authority from TVA or any other entity to excavate artifacts from Battle Creek.
In August 2009, Fagin and Tate also excavated Civil War era U-rails from public lands in Bridgeport, Alabama. In March 2010, Fagin and Tate transported and delivered a counterfeit “Sherman Bow-Tie” that was made from Civil War era U-rails that Fagin and Tate excavated from public lands in Bridgeport, Alabama, without permission or authorization.
In August 2010, Fagin also excavated Civil War era artifacts from Shiloh National Military Park, including a .57 cal. three-ring rifle bullet; five fired three-ring rifle bullets and Schenkl artillery shell fragments. Fagin had no permit or authorization from the National Park Service to excavate artifacts from Shiloh National Military Park.
Agencies involved in this investigation included TVA and the National Park Service. Anne-Marie Svolto, Assistant U.S. Attorney represented the United States.
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Justice Department Settles Citizenship Discrimination Claim Against City of Eugene, OregonRead the Press Release
The Justice Department announced today that it has reached an agreement with the city of Eugene, Oregon, to resolve allegations that the city violated the anti-discrimination provision of the Immigration and Nationality Act (INA). The city of Eugene is the second largest city in the state of Oregon.
The Justice Department’s investigation found that the city of Eugene improperly restricted law enforcement positions to U.S. citizens at the time of hire, even though no law, regulation, executive order or government contract authorized such a restriction. The investigation revealed that the city of Eugene asked police officer applicants about their citizenship status with the intent to exclude any applicant who was not a U.S. citizen at the time of hire. The INA’s anti-discrimination provision prohibits employers from limiting jobs to U.S. citizens except where the employer is required to do so by law, regulation, executive order, or government contract.
Under the settlement agreement, the city of Eugene must pay a civil penalty, train its employees about the anti-discrimination provision of the INA and be subject to monitoring by the Justice Department for a period of three years.
“The Civil Rights Division is committed to ensuring that individuals who are authorized to work in the United States do not face unlawful discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Civil Rights Division commends the city of Eugene for cooperating with the Justice Department and taking swift remedial action to address the situation.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination in hiring, firing, or recruitment or referral for a fee based on an individual’s citizenship, immigration status, or national origin. The case was handled by OSC Trial Attorney Pablo A. Godoy.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact the worker hotline above for assistance.
Justice Department Reaches Agreement with Los Angeles County to Implement Sweeping Reforms on Mental Health Care and Use of Force Throughout the County Jail SystemRead the Press Release
The Justice Department has reached a comprehensive settlement agreement with the county of Los Angeles and the Los Angeles County Sheriff to protect prisoners from serious suicide risks and excessive force in the Los Angeles County Jails, announced Deputy Assistant Attorney General Mark J. Kappelhoff of the Civil Rights Division and U.S. Attorney Eileen M. Decker of the Central District of California. The settlement agreement was filed simultaneously with a complaint this morning alleging a pattern or practice of inadequate mental health care and excessive force at the jails in violation of prisoners’ federal constitutional rights. The Justice Department, together with the county and the Sheriff, has requested that the District Court enter the settlement agreement as an order to bring court oversight to the reforms, to ensure that the reforms are implemented fully and transparently, and to strengthen public confidence in the jails.
Today’s settlement resolves claims stemming from the Justice Department’s long-standing civil investigation into mental health care at the jails, which found a pattern of constitutionally deficient mental health care for prisoners, including inadequate suicide prevention practices. In addition, the settlement agreement includes remedial measures to address a separate civil investigation into use of force by jails staff. The Justice Department’s investigations involved an in-depth review of thousands of pages of documents and other records, on-site visits and interviews with numerous jails staff members, prisoners and others. The Justice Department was assisted by subject matter experts in the fields of mental health care, suicide prevention and correctional practices. The county and the Sheriff cooperated with the civil investigations and have begun to implement many of the negotiated reforms in the settlement agreement, which was negotiated by attorneys in the Justice Department’s Civil Rights Division and the U. S. Attorney’s Office for the Central District of California.
“This historic settlement represents a renewed commitment by the county and Sheriff McDonnell to provide constitutionally adequate care for prisoners with serious mental illness,” said Deputy Assistant Attorney General Kappelhoff. “The agreement also puts in place a structure that will help turn around a persistent culture in which the use of excessive force on prisoners was sometimes tolerated. I want to thank the sheriff and county for their cooperation and leadership. Their efforts are critical to the long-term success of this agreement.”
“The Justice Department will continue to vigorously protect the federal civil rights of all individuals, including those who are imprisoned and who must depend on jail officials for their most basic needs and safety,” said U.S. Attorney Decker. “The settlement agreement avoids protracted litigation and provides a blue print for durable reform that will foster continued collaboration among sheriff deputies, healthcare professionals and other stakeholders. We commend the county and Sheriff McDonnell for their cooperation and for their commitment to make this historic settlement agreement possible.”
Under the settlement agreement filed today, the county and the Sheriff have agreed to implement comprehensive reforms to ensure constitutional conditions in the jails and restore public trust. The settlement agreement will be court-enforceable once approved by the District Court and will be overseen by an independent monitor and a team of mental health and corrections experts. The settlement agreement is designed to prevent and respond more effectively to suicides and self-inflicted injuries through measures that include:
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additional steps to recognize, assess and treat prisoners with mental illness, from intake to discharge;
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significant new training on crisis intervention and interacting with prisoners with mental illness for new and existing custody staff;
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improved documentation in prisoners’ medical and mental health records to ensure continuity of care;
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improved communication between custody and mental health staff and increased supervision of mentally ill and suicidal prisoners;
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steps to mitigate suicide risks within the jails;
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increased access to out-of-cell time for mentally ill prisoners; and
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improved investigation and critical self-analysis of suicides, suicide attempts and other critical events.
With respect to use of force, the settlement agreement expands critical reforms agreed to by the county and the Sheriff in Rosas v. McDonnell to cover all facilities within the jails system. These reforms include:
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enhanced leadership and executive staff engagement;
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significant revisions to use-of-force policies, which should significantly reduce the use of excessive force, with added protections for use of force against prisoners with mental illness;
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enhanced training for custody and mental health staff;
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enhanced data collection and analysis;
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enhanced accountability measures, including use-of-force reporting, use-of-force reviews and discipline; and
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enhanced grievance procedures.
The Justice Department’s investigation was originally opened in 1996, under the Civil Rights of Institutionalized Persons Act (CRIPA). The Justice Department found constitutional deficiencies in mental health care, suicide prevention and the use of excessive force against prisoners with mental illness. In 2002, the Justice Department entered into a memorandum of agreement with the county and the Sheriff to address these concerns. Despite considerable progress over the years of monitoring the memorandum of agreement, the Justice Department concluded in 2014 that the jails were failing to provide adequate mental health care, including suicide prevention, and that conditions under which prisoners with mental illness were housed exacerbated the risk of suicide.
In addition, in 2013, the Justice Department initiated a separate civil investigation into allegations of use of excessive force by jails staff under both CRIPA and the Violent Crime Control and Law Enforcement Act of 1994. While the use of force investigation was ongoing, the county and the Sheriff settled, the Rosas v. McDonnell class-action lawsuit, which alleged excessive force by jails deputies in three downtown facilities. The settlement agreement incorporates all of the reforms in Rosas and extends them to all jails facilities to cover prisoners throughout the jails system.
The civil investigations were conducted by attorneys and staff from the Civil Rights Division’s Special Litigation Section and the Civil Division of the U. S. Attorney’s Office for the Central District of California.
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Justice Department Reaches Agreement with Los Angeles County to Implement Sweeping Reforms on Mental Health Care and Use of Force throughout the County Jail SystemRead the Press Release
LOS ANGELES – The Justice Department has reached a comprehensive settlement agreement with the County of Los Angeles and the Los Angeles County Sheriff to protect prisoners from serious suicide risks and excessive force in the Los Angeles County jails, United States Attorney Eileen M. Decker and Deputy Assistant Attorney General Mark J. Kappelhoff announced today.
The settlement agreement was filed this morning, along with a complaint that alleges a pattern or practice of inadequate mental health care and excessive force at the jails in violation of prisoners’ federal constitutional rights. The Justice Department, together with the county and the Sheriff, has requested that the District Court enter the settlement agreement as an order to bring court oversight to the reforms, to ensure that the reforms are implemented fully and transparently, and to strengthen public confidence in the jails.
Today’s settlement resolves claims stemming from the Justice Department’s long-standing civil investigation into mental health care at the jails, which found a pattern of constitutionally deficient mental health care for prisoners, including inadequate suicide prevention practices. In addition, the settlement agreement includes remedial measures to address a separate civil investigation into use of force by jails staff.
The Justice Department’s investigations involved an in-depth review of thousands of pages of documents and other records, on-site visits and interviews with numerous jails staff members, prisoners and others. The Justice Department was assisted by subject matter experts in the fields of mental health care, suicide prevention and correctional practices.
The County and the Sheriff cooperated with the civil investigations and have begun to implement many of the negotiated reforms in the settlement agreement, which was negotiated by attorneys with the United States Attorney’s Office and the Justice Department’s Civil Rights Division.
“The Justice Department will continue to vigorously protect the federal civil rights of all individuals, including those who are imprisoned and who must depend on jail officials for their most basic needs and safety,” said United States Attorney Decker. “The settlement agreement avoids protracted litigation and provides a blue print for durable reform that will foster continued collaboration among sheriff deputies, healthcare professionals and other stakeholders. We commend the County and Sheriff McDonnell for their cooperation and for their commitment to make this historic settlement agreement possible.”
“This historic settlement represents a renewed commitment by the county and Sheriff McDonnell to provide constitutionally adequate care for prisoners with serious mental illness,” said Deputy Assistant Attorney General Kappelhoff. “The agreement also puts in place a structure that will help turn around a persistent culture in which the use of excessive force on prisoners was sometimes tolerated. I want to thank the sheriff and county for their cooperation and leadership. Their efforts are critical to the long-term success of this agreement.”
Under the settlement agreement filed today, the County and the Sheriff have agreed to implement comprehensive reforms to ensure constitutional conditions in the jails and restore public trust. The settlement agreement will be court-enforceable once approved by the District Court and will be overseen by an independent monitor and a team of mental health and corrections experts. The settlement agreement is designed to prevent and respond more effectively to suicides and self-inflicted injuries through measures that include:
• additional steps to recognize, assess and treat prisoners with mental illness, from intake to discharge;
• significant new training on crisis intervention and interacting with prisoners with mental illness for new and existing custody staff;
• improved documentation in prisoners’ medical and mental health records to ensure continuity of care;
• improved communication between custody and mental health staff and increased supervision of mentally ill and suicidal prisoners;
• steps to mitigate suicide risks within the jails;
• increased access to out-of-cell time for mentally ill prisoners; and
• improved investigation and critical self-analysis of suicides, suicide attempts and other critical events.
With respect to use of force, the settlement agreement expands critical reforms agreed to by the County and the Sheriff in Rosas v. McDonnell to cover all facilities within the jail system. These reforms include:
• enhanced leadership and executive staff engagement;
• significant revisions to use-of-force policies, which should significantly reduce the use of excessive force, with added protections for use of force against prisoners with mental illness;
• enhanced training for custody and mental health staff;
• enhanced data collection and analysis;
• enhanced accountability measures, including use-of-force reporting, use-of-force reviews and discipline; and
• enhanced grievance procedures.
The Justice Department’s investigation was originally opened in 1996, under the Civil Rights of Institutionalized Persons Act (CRIPA). The Justice Department found constitutional deficiencies in mental health care, suicide prevention and the use of excessive force against prisoners with mental illness. In 2002, the Justice Department entered into a memorandum of agreement with the County and the Sheriff to address these concerns. Despite considerable progress over the years of monitoring the memorandum of agreement, the Justice Department concluded in 2014 that the jails were failing to provide adequate mental health care, including suicide prevention, and that conditions under which prisoners with mental illness were housed exacerbated the risk of suicide.
In addition, in 2013, the Justice Department initiated a separate civil investigation into allegations of use of excessive force by jails staff under both CRIPA and the Violent Crime Control and Law Enforcement Act of 1994. While the use-of-force investigation was ongoing, the County and the Sheriff settled the Rosas v. McDonnell class-action lawsuit, which alleged excessive force by jails deputies in three downtown facilities. The settlement agreement incorporates all of the reforms in Rosas and extends them to all county jail facilities to cover prisoners throughout the jails system.
The civil investigations were conducted by attorneys and staff from the Civil Division of the United States Attorney’s Office and the Civil Rights Division’s Special Litigation Section.
Jefferson County Man Guilty of Sexual Exploitation of a ChildRead the Press Release
BEAUMONT, Texas – A 28-year-old Guatemalan man living in Beaumont, Texas has pleaded guilty to federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Cesar Estuardo Hernandez-Cruz pleaded guilty to production of child pornography on Aug. 4, 2015 before U.S. District Judge Marcia Crone.
According to information presented in court, on Dec. 4, 2014, law enforcement officers were notified by a parent that they had discovered sexually explicit photographs of their child. The photographs had been taken by the child on a cellular phone and had been sent by text message to Hernandez-Cruz at his request. Hernandez-Cruz admitted to knowing the child was only 12-years-old. Hernandez-Cruz was indicted by a federal grand jury on June 3, 2015.
Hernandez-Cruz faces a minimum of 15 years and up to 30 years in federal prison. A sentencing date has not been set.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.
This case is being investigated by Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Jefferson City Attorney Pleads Guilty to Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., attorney has pleaded guilty in federal court to enlisting a U.S. citizen to marry a Ukrainian national (with whom he was having an affair) so that she could remain in the United States and seek citizenship.
James Douglas Barding, 62, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, Aug. 4, 2015, to participating in the marriage fraud conspiracy.
Barding, an attorney and a married U.S. citizen, had a long-running affair with a Ukrainian national who entered the United States on a student visa. She formerly lived a couple of blocks from the Jefferson City residence where Barding and his wife resided but has since moved out of the state; their two children live with Barding.
Barding admitted that he met with the Ukrainian national and another co-conspirator (who had agreed to marry her before her visa expired) on April 20, 2010, the day before they were scheduled to be questioned by representatives of the U.S. Citizenship and Immigration Service. The purpose of the meeting was to go over their testimony and Barding advised them to stick to their false stories regarding their fraudulent marriage. On April 21, 2010, Barding gave them a ride to the interview in St. Louis, Mo., where the Ukrainian national made false statements with Barding’s knowledge.
Soon afterward, Barding assured co-conspirator that, if they stayed together and stuck to their stories, they would not get caught with their plan to deceive the government, and she could remain in the United States.
Barding also admitted that he told his co-conspirator in late 2004 that, if he agreed to marry the Ukrainian national, he would not have to live with her and could get divorced after she gained sufficient status to remain in the United States. They were married on March 13, 2005, in Cape Girardeau, Mo., so that persons they knew in Cole County, Mo., would not be likely to find out about the marriage. Barding flew to Cape Girardeau and acted as a witness to their wedding.
Although they never lived together, according to the plea agreement, they each filled out forms falsely claiming they shared a Jefferson City apartment. She also submitted documents that purported to show they shared accounts and bills when, in truth, the majority of the submissions were in name only and no accounts or bills were actually shared. The only purpose for their marriage was so that she could evade immigration laws and remain in the United States with Barding. At various times she made material false statements regarding her address and the true purpose of her marriage, which resulted in her being granted conditional permanent resident status on Nov. 27, 2008.
Approximately nine months and 16 days after the fraudulent marriage, a child was born to Barding and the Ukrainian national. A second child was born to them the following year, which she falsely claimed on immigration forms and on the birth certificate was the biological child of her husband in the fraudulent marriage, to prevent federal officials from suspecting the marriage was fraudulent.
Under federal statutes, Barding is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), U.S. Citizenship and Immigration Services (USCIS) and the Jefferson City, Mo., Police Department.
Jackson County Man Pleads Guilty to Illegally Purchasing Native American Human RemainsRead the Press Release
COLUMBUS, Ohio – Mark M. Beatty, 56, of Wellston, Ohio, pleaded guilty in U.S. District Court to violating the Native American Graves Protection and Repatriation Act by purchasing human remains of Native Americans. The case is the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Jackson County Sheriff Tedd Frazier and Rick Perkins, Chief Ranger, National Park Service at Hopewell Culture National Historical Park, announced the plea entered into today before U.S. Magistrate Judge Elizabeth Preston Deavers.
According to court documents, individuals were observed digging in a rock shelter in Salt Creek Valley in Jackson County, Ohio. When they were approached, they ran off into the woods and left behind shovels, dirt sifters, buckets and trash. Investigators confirmed that at least two individuals were digging on the property and had unburied human remains. Beatty admitted to purchasing those remains.
An anthropologist confirmed that the human remains were consistent with Native Americans, specifically identifiable by cradle boarding, a cultural activity used only by Native American Indians in North America. The identity of the remains was also confirmed by an archeologist, who verified that rockshelters were used extensively for burials in Southern Ohio and specifically in Jackson County.
DNA testing concluded a direct connection to present day Native American Indians living in the United States today.
“We are going to continue to investigate crimes against the Native American Graves Protection and Repatriation Act,” Jackson County Sheriff Tedd Frazier said.
The parties involved in the case have agreed to a proposed sentence of three years of probation including three months home confinement, a $3,500 fine and restitution in the amount of $1,000 to the Miami Tribe of Oklahoma, to be used for re-burial of the Native American remains. The remains will be transferred to the federally recognized tribes who have assisted with this case, and re-buried in Ohio at an undisclosed location and in private once all the court proceedings are completed.
Beatty has also agreed to publish an advertisement in a circulation warning others not to engage in illegal excavation of Native American bones and artifacts. As part of his plea, he has agreed to perform 100 hours of community service for a program that protects or promotes the interests of Native Americans.
U.S. Attorney Stewart commended the investigation by the Jackson County Sheriff’s Office and FBI and the participation from an archeologist from Wayne National Forest and researchers from Ohio University, The Ohio State University and Washington State University, as well as Assistant United States Attorneys J. Michael Marous and Brian Martinez, who are representing the United States in this case.
Irwin Lipkin, Former Controller at Bernard L. Madoff Investment Securities LLC, Sentenced in Manhattan Federal Court to Six Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that IRWIN LIPKIN, the former Controller at Bernard L. Madoff Investment Securities LLC (“BLMIS”), was sentenced today to six months in prison for fraud and other offenses set forth in a two-count Superseding Information to which LIPKIN pled guilty. Specifically, LIPKIN pled guilty in November 2012 to one count of conspiracy to commit securities fraud, to falsify records, to make false filings with the Securities and Exchange Commission (“SEC”), and to falsify statements in relation to documents required by the Employee Retirement Income Security Act (“ERISA”), and to one substantive count of falsifying statements in relation to documents required by ERISA. The overt acts in the conspiracy included, among other things, falsifying financial information BLMIS filed with the SEC, causing fake trades to be created in investment accounts LIPKIN and his family members maintained at BLMIS, and arranging to keep himself and his wife on the BLMIS payroll after his retirement in 1998 – even though neither was working for the firm – so they could collect benefits to which they were not entitled. LIPKIN was sentenced in Manhattan federal court by U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Preet Bharara said: “Bernard Madoff did not commit his massive fraud alone. Irwin Lipkin, hired in the 1960s as BLMIS’s third employee, right after Madoff and Madoff’s wife, was among Madoff’s most loyal accomplices. Year after year, Lipkin helped keep Madoff’s house of cards from collapsing, falsifying the very financial records that Lipkin, as the Controller, was supposed to monitor. In exchange, Lipkin reaped the rewards of fake trades and no-show jobs for himself and his family. Lipkin’s sentencing – the last among the 15 defendants convicted for their participation in Madoff’s fraud – marks the close of another chapter in this tragic tale of unchecked greed.”
According to the Superseding Information to which LIPKIN pled guilty and other court filings:
LIPKIN was employed by BLMIS from 1964 through 1998, and was the first person who was not a family member to be hired by Bernard L. Madoff. In his role as Controller, LIPKIN participated in maintaining the firm’s financial books and records since at least the mid-1970s. At the direction of Bernard L. Madoff, LIPKIN, along with Daniel Bonventre, Enrica Cotellessa-Pitz, and others, made false and misleading entries concerning BLMIS’s profit and loss numbers (“P&L”) in the General Ledger and Stock Record, and in supporting books and records.
As an SEC-registered broker-dealer, BLMIS was required to file Financial and Operational Combined Uniform Single (“FOCUS”) Reports on a monthly, quarterly, and annual basis, as well as annual financial statements concerning BLMIS’s assets, liabilities, revenues, and expenses. The information contained in the FOCUS Reports and the annual financial statements was derived principally from information recorded in the BLMIS General Ledger and the Stock Record. Because those numbers were false and misleading, the corresponding numbers contained in the FOCUS Reports and annual financial statements were false and misleading as well. The annual financial statements provided to various BLMIS Investment Advisory customers also failed to accurately reflect the P&L of BLMIS. “These filings,” LIPKIN admitted when pleading guilty in November 2012, “helped Mr. Madoff run the Ponzi scheme that harmed thousands of people.”
When LIPKIN retired from BLMIS in 1998, he taught his successor as Controller how to manipulate the revenues at BLMIS in order to reach a particular P&L result, thereby allowing the fraud at BLMIS to continue.
In addition, since at least 1975, LIPKIN and his wife maintained their own personal Investment Advisory accounts at BLMIS. On multiple occasions, LIPKIN asked Annette Bongiorno, a BLMIS employee who worked in the Investment Advisory business, to execute fake, back-dated trades in both his account and the accounts of his family members. In an effort to reduce his capital gains income, LIPKIN also asked Bongiorno either to cancel the sales of shares in his account well after those sales had purportedly occurred, or to document nonexistent purchases of shares near the monthly high price, and nonexistent sales near the monthly low price, weeks later. No such trades actually occurred.
LIPKIN also arranged “no-show” jobs at BLMIS for both himself and his wife. As a result, they received income from salaries, health care insurance, 401(k) plans, and other benefits to which they were not entitled.
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In addition to the prison term, Judge Swain sentenced LIPKIN, 77, of Paramus, New Jersey, to three years’ supervised release, including eighteen months of home confinement. LIPKIN was also ordered to forfeit $170 billion dollars and various pieces of property, including a house in Florida, stocks from brokerage and retirement accounts, and artwork. This amount represents all of the investor funds paid into BLMIS from the mid-1970s – when LIPKIN became involved with the conspiracy – through December 2008.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission and the U.S. Department of Labor for their assistance on this case.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christopher Frey, Andrea Griswold, and David Abramowicz are in charge of the prosecution. Assistant U.S. Attorneys Jonathan Cohen, Paul Monteleoni, and Niketh Velamoor are responsible for the forfeiture aspects of the case.
Individual Convicted of Conspiracy and Money Laundering for Role in Costa Rican Telemarketing SchemeRead the Press Release
An Ohio man was convicted yesterday after a two-day jury trial in the Western District of North Carolina for his role in a Costa Rican telemarketing scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina made the announcement.
Paul Ronald Toth Jr., 40, of Wintersville, Ohio, was convicted of one count of conspiracy to commit money laundering and six counts of international money-laundering concealment. Sentencing before U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina will be scheduled at a later date.
According to the evidence presented at trial, Toth was involved in a telemarketing scheme in which his co-conspirators contacted U.S. residents from call centers in Costa Rica, falsely informing them that they had won substantial cash prizes in “sweepstakes.” To claim the cash prizes, the victims – many of whom were elderly – were instructed to send a purported “refundable insurance fee.”
The trial evidence showed that, between approximately November 2009 and November 2010, Toth was a United States-based “smasher” who facilitated the laundering of funds received from the elderly victims. Specifically, according to the evidence presented at trial, Toth and others he recruited and supervised received over $300,000 from victims and, using various individuals as senders and recipients to conceal the fraudulent nature of the transactions, wired over $200,000 of those funds to co-conspirators in Costa Rica. The evidence further demonstrated that Toth kept the remainder as his profit.
This case is being investigated by the U.S. Postal Inspection Service, the FBI, the Internal Revenue Service, Federal Trade Commission and Department of Homeland Security. The case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorneys William Bowne and Anna Kaminska of the Criminal Division’s Fraud Section.
Illinois Man Sentenced for Violating the Lacey ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KEITH CANTORE, age 35, of Monee, Illinois, was sentenced today for violating the Lacey Act by attempting to purchase threatened turtles that were captured in violation of state law.
U.S. District Judge Kurt D. Engelhardt sentenced CANTORE to 41 months incarceration, to be followed by three years of supervised release and $100 special assessment. Additionally, CANTORE was ordered to pay approximately $41,000 in restitution.
According to court records, CANTORE was charged with three counts of purchasing and/or attempting to purchase threatened species of turtles that were illegally captured from the wild. CANTORE pled guilty to attempted purchase of 100 North American Wood Turtles for $40,000.
According to court documents, the charges against CANTORE stemmed from undercover operations conducted by agents from the United States Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service. Court documents also note that CANTORE was previously convicted of federal charges related to the illegal sale of turtles and that he continued to illegally sell turtles while on bond for the current charges.
“The illicit trade in threatened and endangered species represents the destructive results of unfettered greed,” said Special Agent in Charge Raymond R. Parmer, head of ICE Homeland Security Investigations in New Orleans. “The poaching of Wood Turtles has had a significant negative impact on its population in the wild. In effect, this defendant was willing to help drive this species to extinction to make a few bucks. Law enforcement agencies like HSI and our partners at the U.S. Fish and Wildlife Service and U.S. Postal Inspection Service are eager to work with conservation services to stop the illegal trade in wildlife to ensure future generations get to enjoy these species in their native habitats.”
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
Idaho Summit on Prescription Drug Diversion Set for September 9 in BoiseRead the Press Release
BOISE - U.S. Attorney Wendy J. Olson today announced that the Treasure Valley’s hospital community, the State of Idaho health professional licensing boards, private law firms, law enforcement agencies and other organizations are partnering to host the Idaho Summit on Prescription Drug Diversion on Wednesday, September 9, 2015, at Washington Group Plaza.
“Prescription drug abuse and prescription drug diversion have created a national public health and public safety crisis. Idaho is not immune,” said Olson. “Prescription drug addiction can lead directly to heroin use and addiction, and to accidental death. Prescription drug abuse is responsible for impaired driving and property crimes as addicts seek means to fuel their addiction. Fortunately, Idaho’s health care leaders and federal and local law enforcement are committed to educating providers and the community about the dangers associated with prescription drug diversion.”
Olson said that her office in the last few years has prosecuted an increasing number of defendants who have illegally obtained, diverted or sold prescription drugs. Nationally, a Center for Diseases Control analysis found that one in twenty people in the United States ages 12 and older used prescription painkillers non-medically in 2010. Prescription painkiller overdoses killed nearly 15,000 people in 2008, triple the number from 1999. Moreover, according to the 2010 National Survey on Drug Use and Health, more than half of those 12 and over who used prescription painkillers non-medically for the first time obtained them from a family member or friend who had been prescribed the painkiller by a health care provider. The statistics are also alarming in Idaho. There were 456 drug-induced deaths in Idaho from 2007-2009. Of those, 262 involved narcotics, with 68 deaths from Hydrocodone and 43 from Oxycodone prescriptions alone.
The four-hour summit will involve presentations from the Drug Enforcement Administration, Boise Police Department and U.S. Attorney’s Office on how prescriptions are diverted to street sales, the community impact, the law enforcement response, and criteria for prosecution of cases. Medical professionals and regulators will provide tools for health care providers and health care organizations to identify diversion and diversion risks. They will also discuss medical standards in Idaho for safely prescribing prescription drugs.
“This conference is intended to provide medical providers of all specialties with critical information on simple steps they can take every day to help stop the flow of these prescription drugs from would-be patients while at the same time learning how these government agencies work to protect our community,” said Terrence S. Jones, partner at Quane Jones McColl, PLLC, and one of the event organizers.
“Our objective is not only to slow the flow of diverted prescription drugs, but also to open a dialogue and promote understanding between the medical community and law enforcement about each other’s practices and concerns,” said Olson. “This is a community health care and public safety problem and I am pleased that so many members of Idaho’s law enforcement and health care community are committed to finding community solutions.”
The Summit sponsors are: the Idaho Boards of Medicine, Pharmacy, and Nursing, the Idaho Bureau of Occupational Licenses, the Idaho Office of Drug Policy, the Idaho Medical Association, Boise State University, Idaho State University, the Drug Enforcement Administration, C.N.A. Professional Insurance, West Valley Medical Center, St. Luke’s Health Systems, Independent Doctors of Idaho, the Boise City Police Department, St. Alphonsus Hospital, Garrett Richardson, PLLC, and Quane Jones McColl, PLLC. The Summit will be held from 1:30 p.m. to 5:30 p.m. at the Washington Group Plaza Main Auditorium. Interested providers can enroll online at http://usaoidtraining.org/idahodrugsummit.
Hancock County man convicted of possessing stolen firearmRead the Press Release
WHEELING, WEST VIRGINIA – Timothy J. Jackson, 56, of New Cumberland, West Virginia, was convicted of possessing a stolen firearm, United States Attorney William J. Ihlenfeld, II, announced.
Jackson was discovered in Hancock County, West Virginia in December 2014 in possession of a stolen firearm. He pled guilty to one count of “Possession of a Stolen Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, led the investigation.
U.S. Magistrate Judge James E. Seibert presided.
Georgia Man Charges with Transporting Stolen Range Rover Across State LinesRead the Press Release
PITTSBURGH- A resident of Fayetteville, Georgia, has been indicted by a federal grand jury in Pittsburgh on a charge of interstate transportation of a stolen vehicle, United States Attorney David J. Hickton announced today.
The one-count indictment named Tom E. Smith, 53, as the sole defendant.
According to the indictment, Smith unlawfully transported a stolen Land Rover Range Rover Sport from Western Pennsylvania into West Virginia on or about July 1, 2015.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Northern Regional Police Department of Allegheny County, Monroeville Police Department of Allegheny County, Allegheny County Police Department, West Virginia State Police, and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Las Vegas Couple Guilty of Defrauding over 400 Vulnerable Homeowners in $3.8 Million Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Kristen Michelle Ayala, aka “Amber Lynch,” aka “Olivia Benet,” aka “Grace Williams,” 30, and Joshua Manuel Sanchez, aka “Nelson Cruz,” aka “Chris Ward,” “Daniel Mora,” 34, both formerly of Las Vegas, have pleaded guilty to conspiracy to commit wire fraud for their role in a $3.8 million dollar mortgage modification scam.
In a statement of facts filed with the plea agreement, from in and around October 2012 through September 2014, Ayala, Sanchez, and others, executed a scheme to defraud vulnerable victim homeowners who were at risk of foreclosure. Ayala and Sanchez developed fraudulent documents, telephone scripts, and aliases in an effort to defraud the victim homeowners. Their scheme lulled victim homeowners into believing that the defendants were part of the legitimate U.S. Government “Home Affordable Modification Program” (“HAMP”). During the execution of the ruse, the Ayala and Sanchez used documents containing fraudulent government seals, made statements regarding modification of the victims’ mortgages through the HAMP program, and the victims’ mortgage payments to their own accounts rather than to the victims’ lenders. To date, the scheme defrauded more than 400 victims, caused losses of over $3.8 million dollars, and resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.
Ayala and Sanchez were indicted by a federal grand jury on May 1, 2015. Each faces a maximum penalty of 20 years in prison when sentenced on Oct. 29, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris.
This case was investigated by SIGTARP. Assistant U.S. Attorneys Zach Terwilliger and James P. Gillis 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-147.
Former Executives of Wilmington Trust Indicted for Conspiracy and False StatementsRead the Press Release
WILMINGTON, Del. – Robert V.A. Harra, age 66, of Wilmington, David Gibson, age 58, of Wilmington, William North, age 55 of Bryn Mawr, Pennsylvania, and Kevyn Rakowski, age 61, of Lakewood Ranch, Florida, were indicted today for their respective roles in concealing from the Federal Reserve, the Securities and Exchange Commission (SEC) and the investing public the total quantity of past due loans on Wilmington Trust’s books from October 2009 until November 2010. The Nineteen-Count Superseding Indictment charges defendants with making false statements in securities filings and to agencies of the United States government.
All defendants are charged with conspiracy to defraud the United States, to commit fraud in connection with the purchase and sale of securities, and making false statements to regulators (18 U.S.C. § 371). All defendants are charged with one count of false statements in connection with the purchase or sale of securities (18 U.S.C. § 1348), four counts of making false entries in banking records (18 U.S.C. § 1005), seven counts of making false statements to agencies of the United States government (18 U.S.C. § 1001), and two counts of making false statements in SEC reports (15 U.S.C. §§ 78m(a) and 78ff). Harra and Gibson are also charged with two additional counts of making false statements in SEC reports and Gibson is charged with three counts of falsely certifying financial reports (18 U.S.C. § 1348). North and Rakowski were previously charged with two counts of making false statements to an agency of the United States, relating to the concealment from the market and the Federal Reserve the total quantity of past due loans on the bank’s books during the months of October and November 2009.
Wilmington Trust was required to report in its quarterly filings with both the SEC and the Federal Reserve the quantity of its loans for which payment was past due for 90 days or more. Investors and banking regulators consider the 90-day number in evaluating the health of a bank’s loan portfolio. According to the Superseding Indictment, Harra, Gibson, North, and Rakowski helped conceal the truth about the health of Wilmington Trust’s loan portfolio from the SEC, the investing public and from the bank’s regulators.
The Superseding Indictment alleges that Harra, Gibson, North, and Rakowski participated in Wilmington Trust’s failure to include in its reporting a material quantity of past due loans, despite the reporting requirements and knowing the significance of past due loan volume to investors and regulators. North, as the bank’s Chief Credit Officer, approved the exclusion or “waiver” of such loans from internal reports that he knew would be used to generate the bank’s external financial reports. As the bank’s President and Head of Regional Banking, Harra encouraged the “waiver” of past due loans. He served as a primary point of contact with the bank’s regulators during 2009 and 2010, signed bank regulatory filings, participated in quarterly earnings calls with investors, and did not disclose the bank’s failure to report “waived” loans. The Chief Financial Officer, Gibson, also knew the bank had “waived” loans from public reporting and failed to disclose this. Despite this knowledge, Gibson helped to draft and approved SEC filings and certified that those same filings fairly presented the financial condition of Wilmington Trust. Rakowski, as Controller, approved the bank’s filings with the SEC and the Federal Reserve knowing that those reports did not include past due loans that had been “waived.”
In November 2010, Wilmington Trust was acquired by another bank at a discount of approximately 46% from the bank’s share price the prior trading day.
In announcing the Superseding Indictment, United States Attorney for the District of Delaware Charles M. Oberly, III, stated, “This Superseding Indictment marks the next significant step in our investigation into the illegal conduct by at Wilmington Trust. The failure by these individuals to properly inform regulators and investors about the true financial condition of Wilmington Trust resulted in significant harm to those investors and losses to the Delaware community. As high-ranking bank executives, these individuals had an obligation to accurately report important financial metrics which enable investors to make informed decisions. Even in the wake of the financial crisis, their deception was neither permissible nor excusable.”
“The deception explained in this indictment shows the defendants set out to hide information from the federal government. The men and women named in this case not only hid financial details from regulators but from the general public and investors,” said acting Special Agent in Charge Scott Hinckley of the FBI in Delaware. “These aren’t victimless crimes and those who committed them will be held accountable.”
“The criminal charges filed today allege that four senior executives of a TARP bank did not want to face the consequences of telling the truth about past due loans on the bank’s books, and in reporting to regulators, investors and shareholders,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “These TARP bankers allegedly engaged in a practice of waiving past-due loans from their external reports, and making mass extensions of past-due loans with limited – if any – underwriting and many lacking updated appraisals. In 2008 Treasury, on behalf of American taxpayers, invested $330 million in TARP bailout funds in Wilmington Trust. In 2010, the bank then turned to the market to raise capital using its falsely reported past due numbers. The bank was then sold at a severe discount, roughly half its discount from the prior day. Bankers across the nation were faced with declining economic conditions and rising past-due loans, and told the truth about those loans and losses. Bankers at Wilmington Trust did not. We commend United States Attorney Charles Oberly, III and our law enforcement partners for standing firm with SIGTARP to combat TARP-related crime.”
“Bank executives hold positions of trust not only within their banks but also in the eyes of the public. That trust is broken when such executives abuse their power and commit crimes. This latest indictment should serve as a continued warning to anyone who is contemplating similar financial fraud, that their illegal activity will not go unnoticed” said Akeia Conner, Special Agent In Charge, IRS Criminal Investigation.
“Today’s indictment sends a clear message that bank executives who engage in fraud to deceive regulators and the public will be held accountable for their actions,” said Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.The case is being investigated by the Federal Bureau of Investigation, the Department of Treasury’s Special Inspector General for the Troubled Asset Relief Program, the Internal Revenue Service’s Criminal Investigative Division, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. The Securities and Exchange Commission has also contributed to the investigation. The case is being prosecuted by Assistant U.S. Attorneys Robert Kravetz and Lesley Wolf of the District of Delaware.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
Former Employee of Hobbs Gun Shop Sentenced to Prison for Federal Firearms ConvictionRead the Press Release
ALBUQUERQUE – Carlos Carlon Cruz, the father of a the former owner of a gun shop in Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., for violating the federal firearms laws. Carlos Carlon Cruz was sentenced to 18 months in prison followed by three years of supervised release. His wife, Norma M. Cruz was sentenced last week to three years of supervised release for her conviction on firearms charges. Their son, Carlos Jonathan Cruz was sentenced on Feb. 4, 2015, to 12 months and one day in prison followed by three years of supervised release.
Carlos Carlon Cruz, 61, Norma M. Cruz, 58, and their son Carlos Jonathan Cruz, 32, the former owner of Hobbs Satellite Company Guns & Ammo, were indicted in June 2013. The indictment charged the three defendants with violating federal firearms laws by making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser” and buying firearms on behalf of others. Carlos Jonathan Cruz also was charged with unlawfully selling thousands of rounds of ammunition to an alien illegally in the United States, unlawfully possessing an unregistered sawed-off shotgun, and unlawfully possessing firearms with obliterated serial numbers.
Carlos Carlon Cruz and Norma M. Cruz pled guilty on Jan. 7, 2014, to felony informations charging them with making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and unlawfully selling ammunition to a prohibited person. In entering their guilty pleas, the couple admitted that on April 9, 2013, they sold 2,500 rounds of ammunition to an alien who was illegally in the United States. They also admitted that on April 23, 2013, they knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at the gun shop for an individual who was working as a confidential informant for the ATF.
Carlos Jonathan Cruz also pled guilty on Jan. 7, 2014, to a felony information charging him with making false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser,” and unlawfully possessing firearms with obliterated serial numbers. In entering his guilty plea, Carlos Jonathan Cruz admitted that on April 23, 2013, he knowingly aided and abetted the making of a false statement by a straw purchaser who bought two firearms at his gun shop for an individual who was working as a confidential informant for the ATF. Cruz also admitted possessing a firearm with an obliterated serial number on May 29, 2013.
Under the terms of their plea agreements, all three defendants are required to forfeit approximately 165 firearms, 25,703 rounds of ammunition and six silencers.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the DEA and the Hobbs Police Department, and was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office. Assistant U.S. Attorney Stephen R. Kotz is handling the related forfeiture proceedings.
Former Credit Union Employee Indicted for Embezzling Funds from Pantex Federal Credit UnionRead the Press Release
AMARILLO, Texas — A federal grand jury returned an indictment last week charging a former employee of the Pantex Federal Credit Union in Borger, Texas, with embezzlement, announced John Parker, United States Attorney for the Northern District of Texas.
Dorothy Stegall Barnes, a/k/a “Dorothy Stegall Newman,” 56, is charged with one count of embezzlement from a federally insured credit union. She made her initial appearance in federal court today. Barnes entered a plea of not guilty, a trial date will be set at a later date.
The indictment alleges that from approximately September 1996 through December 2010, Barnes, the Assistant Vice-President of Teller Operations at the Pantex Federal Credit Union, embezzled approximately $826,000 from the credit union.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for this offense is 30 years in federal prison and a $1 million fine. Restitution may also be ordered.
The FBI and Borger Police Department investigated. Assistant U.S. Attorney Tim Hammer is prosecuting.
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Florida and Louisiana Residents Charged in Multi-State Scheme to Distribute Illegal and Mislabelled Diet PillsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today actions taken in connection with a federal criminal investigation into an alleged multi-state scheme to illegally distribute diet pills containing sibutramine, a Schedule IV controlled substance, which were falsely labeled and marketed as “all natural” dietary supplements.
A federal grand jury indictment, originally filed on July 29, 2015, was unsealed today. The indictment charges Darlene V. Krueger, age 53, of Destrehan, Louisiana, with conspiring to distribute and possess with the intent to distribute sibutramine, distributing sibutramine, and introducing misbranded drugs into interstate commerce.
The indictment alleges that sibutramine was the active pharmaceutical ingredient in Meridia, a prescription weight loss drug removed from the market in 2010 following studies that showed significantly increased risk of strokes and heart attacks. According to the indictment, since the removal of Meridia, no drug containing sibutramine has been approved for use in humans in the United States.
The indictment alleges further that, between 2009 through 2014, Krueger conspired with John Wesley Hoag, age 51, of Ft. Lauderdale, Florida, to sell purportedly “all natural” dietary supplements under various names, such as “Slim Forte Slimming Capsules,” “Slim Forte Double Power Slimming Capsules,” “Slim-Vie Slimming Capsules,” and “Slim-Vie Double Power Slimming Capsules,” which they knew contained sibutramine, to customers throughout the United States. According to the indictment, even after learning that the diet pills contained sibutramine and had potentially serious side effects, Krueger continued to distribute the diet pills and disseminate false and misleading information about the safety and efficacy of her products.
On July 29, 2015, Hoag pled guilty before U.S. District Judge John W. deGravelles to a Bill of Information charging him with conspiring with Krueger to distribute and possess with the intent to distribute sibutramine and introducing misbranded drugs into interstate commerce. During the guilty plea hearing, Hoag admitted to unlawfully importing the diet pills from manufacturers based in China and then distributing the diet pills to his distributors, including Krueger, and consumers.
As a result of their respective roles, Krueger and Hoag face significant incarceration, fines, restitution, forfeiture of proceeds, and supervised release following imprisonment.
U.S. Attorney Green stated: “This important prosecution is a reminder that drug trafficking conspiracies come in all shapes and sizes, and can involve a wide variety of illegal substances, none of which we will tolerate. When individuals knowingly sell potentially dangerous misbranded drugs to unsuspecting consumers, my office will work diligently with our law enforcement partners to protect public health by identifying the illegal products and dismantling the illegal distribution networks.”
“Consumers are put at serious risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in products falsely labeled as natural dietary supplements,” said Robert J. West, Acting Special Agent-in-Charge, Miami Field Office, FDA Office of Criminal Investigations. “Our office will continue to defend the public’s health by ensuring that dietary supplements are accurately labeled, and do not contain dangerous undeclared active pharmaceutical ingredients.”
This ongoing investigation is being handled by the FDA’s Office of Criminal Investigations. The matter is being prosecuted by Assistant United States Attorneys Cam T. Le and Paul L. Pugliese.
Health care professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA. For more information regarding dietary supplements and to report adverse events, please visit the FDA’s website at http://www.fda.gov/Food/DietarySupplements/.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Five Defendants Indicted in One of the Nation’s Largest Fentanyl SeizuresRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a an indictment charging Herman E. Aguirre, 41, of Brea, CA, Troy R. Gillon, 41, of Lockport, NY, Darryl J. Williams, 43, of Williamsville, NY, Maulana Lucas, 41, Niagara Falls, NY, and Shirley Grigsby, 40, Buffalo, NY, with conspiracy to possess with intent to distribute heroin, fentanyl, and cocaine and possession with intent to distribute heroin, fentanyl and cocaine. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum life, and a $20,000,000 fine.
“In this time of heightened concern regarding multiple overdose deaths in our community, the seizure of a trifecta of dangerous and potentially deadly drugs - cocaine, heroin and fentanyl - is both highly significant and extremely good news for our area,” said U.S. Attorney Hochul. “Our law enforcement partners are working aggressively to track down these traffickers who are bringing nothing but danger and in too many cases death to the streets of our neighborhood.”
"In a broad sense, these arrests give the public a good idea how poly-drug trafficking organizations are being tracked down by law enforcement,” said DEA Special Agent in Charge James J. Hunt. “We are not only targeting the very top of the drug hierarchy who disseminate large quantities of heroin, cocaine and fentanyl but we are also focused on the distributors throughout the country. We not only want to seize as much of this poison as we can, but in this case we are also snatching away their drug proceeds, crippling these organizations financially. Our efforts are centered on targeting these drug entities who are trafficking multiple addictive drugs, dismantle them on all levels and continue our fight against addiction to powerful drugs."
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated according to the indictment, between June 2013 and July 29, 2015, the defendants conspired to possess and distribute heroin, fentanyl, and cocaine in Western New York, primarily Lockport and Niagara Falls.
During the course of the investigation, law enforcement officers in Western New York, California and Nebraska seized a total of 40 kilograms of cocaine, 17 kilograms of heroin and eight kilograms of fentanyl. The seized fentanyl alone represents one of the largest seizures of fentanyl ever in the United States. In addition, law enforcement tracked $13,000,000 in cash flowing from an area bank to California.
According to information provided in Court, the investigation began in March 2014. Defendants Gillon and Williams received large quantities of narcotics from Herman Aguirre’s “seafood” warehouse in Montebello, California and then distributed the drugs to others in the Western New York area including Trent Adair Hamilton and Michael Paul Mitchell. Hamilton and Mitchell were arrested in connection with this case in March 2015. The defendants are charged with conspiracy to possess with intent to distribute and to distribute heroin. Hamilton is also charged with possession with intent to distribute and to distribute heroin. Mitchell is facing an additional charge of possession with intent to distribute and to distribute crack cocaine.
According to a complaint filed earlier in the case against defendants Lucas and Grigsby, on March 23, 2015, Buffalo Police received a call regarding a family dispute at 98 Folger St. After they arrived, officers received written consent to search the residence and found three duffle bags which contained approximately eight kilograms of fentanyl and 24 kilograms of cocaine.
The 32 kilograms of drugs seized at 98 Folger Street were submitted to the Erie County Central Police Services for analysis. A chemical analysis of the substance inside the first kilogram was determined to be pure fentanyl, which is extremely dangerous, if not fatal, if ingested. As a result, the analysis of the drugs was suspended due to the danger of ingestion of airborne fentanyl. The investigation was thereafter completed in a federal laboratory.
Defendants Grigsby, Lucas, Gillon and Williams have been arraigned and are being detained. Herman Aguirre was arrested in California and is being held pending further proceedings. Trent Hamilton is being held, Michael Mitchell was released on conditions.
Today’s indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the DEA Los Angeles Field Division, the Niagara County Drug Task Force and Niagara County Sheriff’s Office, under the direction of Sheriff James Voutour, the Niagara County District Attorney’s Office, under the direction of Michael Violante, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Erie County District Attorney’s Office, under the direction of Frank Sedita, the Erie County Central Police Services Forensic Laboratory, under the direction of John Simich, the Lockport Police Department, under the direction of Chief Lawrence Eggert, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, the Town of Tonawanda Police Department, under the direction of Chief Jerome Uschold, the New York State Office of the Attorney General, New York State Parole, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of J. Michael Kennedy, Acting Special Agent in Charge, the Federal Bureay of Investigation Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division, and Customs and Border Protection, Office of Air and Marine, under the direction of Brian Manaher, Director, Marine Operations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Federal Grand Jury Indicts Austin Man in Alleged Counterfeiting SchemeRead the Press Release
In Austin, a federal grand jury late yesterday afternoon indicted 42-year-old Randolf Ace Corujo for his role in a counterfeiting scheme announced United States Attorney Richard L. Durbin, Jr., and U.S. Secret Service Resident Agent in Charge Thomas C. Edwards, Austin Resident Office.
A five-count indictment charges Corujo, of Austin, with one count of conspiracy to manufacture and pass counterfeit U.S. Currency. The indictment also charges Corujo with two counts of passing, uttering and possessing counterfeit U.S. Currency and two counts of making, forging, altering and counterfeiting U.S. Currency.
According to the indictment, Corujo and others conspired earlier this year to create and pass counterfeit U.S. Currency. Investigative information revealed over 160 passes of counterfeit currency at local businesses and banks from March 2015 through July 2015 with a total aggregate value in excess of over $23,000.00.
Upon conviction of the conspiracy charge, Corujo faces up to five years. Each remaining charge calls for up to 20 years imprisonment upon conviction. Corujo has remained in federal custody since his arrest in Austin on July 24, 2015.
In a related case, 31-year-old William Neal and 35-year-old Joshua Neal of Leander, TX, await sentencing after pleading guilty to passing, uttering and possessing counterfeit U.S. Currency. William Neal is currently on a $10,000 bond. Joshua Neal has remained in custody since their arrest in April 2015. Sentencing is scheduled for 9:00am on August 20, 2015, before U.S. District Judge Sam Sparks in Austin.
This investigation was conducted by the Central Texas Financial Crimes Task Force together with the Cedar Park Police Department, Burnet Police Department, Pflugerville Police Department, and the Sunset Valley Police Department. The Central Texas Financial Crimes Task Force, led by the United States Secret Service, is comprised of investigators with the Austin Police Department, Hays County Sheriff’s Office, Williamson County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Federal Court Approves Consent Decree with Commonwealth of Puerto Rico to Resolve Allegations of Employment Discrimination Against Puerto Rico Police DepartmentRead the Press Release
The Department of Justice announced today that the U.S. District Court for the District of Puerto Rico has approved the department’s consent decree with the commonwealth of Puerto Rico and the Puerto Rico Police Department (PRPD) that resolved allegations that the PRPD discriminated against Yolanda Carrasquillo on the basis of race, color and religion in violation of Title VII of the Civil Rights Act of 1964.
The department’s complaint in this action, filed on July 22, 2013, alleged that Carrasquillo, a sworn police officer, was subjected to a hostile work environment because of the discriminatory actions of a civilian co-worker. This co-worker regularly directed racial and other offensive slurs at Carrasquillo and other black or dark-skinned employees, and disparaged Carrasquillo’s Christian faith. According to the complaint, PRPD failed to take any meaningful steps to stop the harassment or discipline the harasser. The department’s complaint was based on a charge filed by Carrasquillo with the Equal Employment Opportunity Commission, which investigated the matter, determined that there was reasonable cause to believe that discrimination had occurred and referred the matter to the department.
This consent decree resolves the individual charge of employment discrimination against the PRPD. Under the terms of the decree, the PRPD will provide Carrasquillo with $60,000 in monetary relief and credit her with 30 days of annual leave.
The consent decree also requires the PRPD to revise its anti-discrimination employment policies and train its employees within the framework of its existing July 17, 2013, comprehensive systemic reform agreement with the department.
“This settlement agreement is yet another step towards the fulfillment of the necessary reforms in the Puerto Rico Police Department that will ensure that the PRPD will have appropriate procedures in place to protect the rights of its employees, ” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Through this consent decree, the Department of Justice continues to protect the rights of all workers to a workplace free from the fear of harassment because of their race, color or religion.”
The continued enforcement of Title VII is a priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Father, Sons Indicted for Defrauding Victims of More Than $18 MillionRead the Press Release
Memphis, TN – A father and two sons were indicted on multiple charges this week for their alleged roles in a scheme that defrauded victims of more than $18 million.
Larry Bates, a former Tennessee state legislator, was CEO of First American Monetary Consultants (FAMC), Inc. A financial company, FAMC engaged in buying, selling and trading precious metals, primarily gold and silver coins. He was also the CEO of Information Radio Network, Inc. (IRN), a broadcast service that provided radio listeners with information and advice on a variety of topics including politics and world economy.
Larry’s son, Charles "Chuck" Bates, was executive vice president and news director for IRN and an economist with FAMC. Larry’s other son, Robert Bates, was an economist with FAMC.
From May 2002 to October 2013, the trio allegedly encouraged customers, many of whom were Christians and elderly individuals, to purchase copious amounts of certain types of gold and silver from FAMC. All of the individuals targeted by the Bates were seeking advice and help from a supposed trusted Christian advisor and/or an alleged reputable Christian financial company, according to the indictment.
The defendants utilized IRN as a means of advertising, promoting, and soliciting the sale or purchase of gold and silver to and from individuals nationwide, according to the indictment. To execute their scheme, the Bates’ told potential customers that they needed to purchase gold and silver to protect themselves from "Mystery Babylon," an alleged forthcoming economic, political and religious downturn.
Those who accepted the Bates’ offers provided payment via mail, wire transfers, or through private and commercial interstate carriers to purchase gold and silver from FAMC. Subsequent to submitting their payments, the customers would receive an invoice and order confirmation via mail, according to the indictment.
After the defendants received money and/or gold and silver from customers, they would partially complete the customers’ orders or fail to fill them altogether. The indictment alleges that the defendants utilized a portion of the embezzled proceeds to fund personal expenses and maintain operation of FAMC and IRN. When contacted by customers who didn’t receive their orders, the defendants would allegedly provide false promises, delay returning calls or emails, or neglect to respond altogether. According to the indictment, this activity continued from weeks up to years.
"As the indictment alleges, the defendants defrauded unsuspecting victims of more than $18 million by promising to purchase gold and silver coins on their behalf," said U.S. Attorney Edward L. Stanton III. "Unfortunately, hundreds of these victims never received the coins they purchased. Instead, their money was used by the defendants to fund lofty salaries and exorbitant lifestyles."
More than 300 people were victimized during the Bates’ scheme. In addition to individuals in West Tennessee, the Bates’ defrauded people in Texas, Alabama, Kansas, Vermont, Oklahoma, Missouri, Florida, Massachusetts, and a multitude of other states.
All three defendants are being charged with multiple counts of mail and wire fraud. If convicted, they each face up to 20 years imprisonment and up to $1 million in fines per count.
The defendants are also being charged with conspiracy to commit mail and wire fraud.
If convicted, they each face up to 20 years imprisonment and up to $1 million in fines.
The case is being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Larry Laurenzi and David Pritchard are representing the government in this case.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
El Tribunal Federal Aprueba el Decreto por Consentimiento con el Estado Libre Asociado de Puerto Rico en Resolución de Alegatos de Discriminación en el Empleo Contra el Departamento de Policía de Puerto RicoRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que el Tribunal Federal de Distrito para el Distrito de Puerto Rico ha aprobado el decreto por consentimiento del departamento con el Estado Libre Asociado de Puerto Rico y el Departamento de Policía de Puerto Rico [Puerto Rico Police Department (PRPD)] que resolvió alegatos de que el PRPD discriminó a Yolanda Carrasquillo debido a raza, color y religión, en violación del Título VII de la Ley de Derechos Civiles de 1964.
La demanda del departamento, entablada el 22 de julio de 2013, alegó que Carrasquillo, una agente de la policía juramentada, fue sometida a un ambiente de trabajo hostil debido a las acciones discriminatorias de un compañero de trabajo civil. Dicho compañero de trabajo se dirigía habitualmente a Carrasquillo y otros empleados de raza negra o con piel oscura, profiriendo insultos raciales y ofensivos, y menospreció la fe cristiana de Carrasquillo. De acuerdo con la demanda, el PRPD dejó de tomar medidas para poner fin al acoso o dejó de tomar medidas disciplinarias contra el acosador. La demanda del departamento se basó en una queja presentada por Carrasquillo a la Comisión de Igualdad de Oportunidades de Empleo, que investigó el caso, y habiendo determinado que existía causa razonable para creer que había ocurrido discriminación, remitió el caso al departamento.
Este decreto por consentimiento resuelve el cargo individual de discriminación en el empleo entablado contra el PRPD. Bajo los términos del decreto, el PRPD pagará a Carrasquillo $60.000 en compensación monetaria y le otorgará 30 días de licencia anual.
El decreto por consentimiento también exige que el PRPD realice una revisión de sus políticas contra la discriminación en el empleo y capacite a sus empleados de acuerdo con su existente acuerdo integral de reforma sistémica del 17 de Julio de 2013 con el departamento.
“Este acuerdo conciliatorio es un paso más hacia la realización de las reformas necesarias en el Departamento de Policía de Puerto Rico que garantizarán que el PRPD implemente procedimientos adecuados para proteger los derechos de sus empleados”, dijo la Procuradora General Adjunta Suplente Principal Vanita Gupta, quien encabeza la División de Derechos Civiles. “Por medio de este decreto por consentimiento, el Departamento de Justicia sigue protegiendo los derechos de todos los trabajadores de trabajar libres de temor al acoso debido a su raza, color o religión”.
Es prioridad de la División de Derechos Civiles hacer valer el Título VII en forma continua. Existe disponible información adicional sobre la División de Derechos Civiles en su sitio en internet en www.justice.gov/crt .
El Departamento de Justicia Resuelve una Denuncia de Discriminación por Ciudadanía Contra la Ciudad de Eugene, Estado de OregónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con la Ciudad de Eugene, Oregón, que resuelve las acusaciones de que la Ciudad había violado la disposición antidiscriminatoria de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). La Ciudad de Eugene es la segunda ciudad más grande en el estado de Oregón.
La investigación del Departamento de Justicia encontró que la Ciudad de Eugene había restringido los puestos disponibles en los cuerpos de orden público a individuos que en el momento de la contratación fuesen ciudadanos estadounidenses, aunque no existe ninguna ley, reglamento, orden ejecutiva o contrato de gobierno que autorice ese tipo de restricción. La investigación demostró que la Ciudad de Eugene preguntó a postulantes al cargo de agentes de policía acerca de su estatus de ciudadanía con la intención de excluir a postulantes que no fuesen ciudadanos de los Estados Unidos en el momento de la contratación. La disposición antidiscriminatoria de la INA prohíbe que los empleadores restrinjan los cargos a ciudadanos estadounidenses salvo en los casos en los que el empleador está obligado a hacerlo por ley o conforme a un reglamento, una orden ejecutiva o un contrato gubernamental.
Según el acuerdo de resolución, la Ciudad de Eugene pagará una multa civil, capacitará a sus empleados acerca de la disposición antidiscriminatoria de la INA y será sujeto al monitoreo por parte del Departamento de Justicia durante un período de tres años.
“La División de Derechos Civiles se compromete a asegurar que los individuos que cuenten con autorización para trabajar en los Estados Unidos no se enfrentan con barreras discriminatorias ilegales”, declaró la Subprocuradora General Interina, Vanita Gupta, de la División de Derechos Civiles. “La División de Derechos Civiles desea felicitar a la Ciudad de Eugene por su cooperación con el Departamento de Justicia y las medidas correctivas oportunas que tomó para abordar la situación”.
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) tiene la responsabilidad de hacer cumplir con la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivo de la ciudadanía o el estatus migratorio de un individuo, o bien por su origen nacional, en la contratación, el despido o el reclutamiento o la recomendación a cambio de un honorario. El caso lo gestionó el Abogado Litigante de la OSC, Pablo A. Godoy.
Para más información sobre las protecciones contra la discriminación en el empleo bajo las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1‑800-237-2515, TTY para las personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con discapacidades auditivas); matricúlese para una conferencia en línea gratuita en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los postulantes o empleados que creen haber sido víctimas de discriminación por motivo de su ciudadanía, estatus migratorio u origen nacional en la contratación, el despido o el reclutamiento o referencia por comisión deberán llamar a la línea directa para trabajadores mencionada arriba y serán atendidos.
Drug Trafficker Exiled to 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Lateef Fisher, age 37, of Greencastle, Pennsylvania, today to 13 years in prison followed by five years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin or 28 grams or more of cocaine base in Hagerstown, Maryland, and the surrounding counties in Maryland, Pennsylvania, and West Virginia.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Special Agent in Charge Shawn R. Ellerman of the Drug Enforcement Administration, Baltimore District Office; Hagerstown Police Chief Mark Holtzman; and Washington County Sheriff Douglas W. Mullendore.
According to evidence presented at his seven day trial, Fisher sold heroin to an individual who agreed to cooperate with law enforcement. On February 19, 2014, law enforcement arrested Fisher after he parked his car in a lot in Hagerstown, Maryland, and seized two plastic bags of heroin.
Law enforcement made controlled purchases of heroin using confidential informants on five occasions from March 19 to July 23, 2014. These purchases totaled over 28 grams of heroin. In addition, from May to September 2014, two customers purchased approximately one kilogram of heroin from Fisher. Other customers purchased over 600 grams of heroin in July and August, 2014.
On September 4, 2014, law enforcement executed search warrants at Fisher’s residence and a storage unit he rented, seizing 709.5 grams of heroin, 40 grams of crack cocaine, 10 handguns, ammunition, $240,000, a press designed to compress kilogram packages of narcotics, vacuum sealers, digital scales and plastic baggies.
United States Attorney Rod J. Rosenstein commended the DEA, Hagerstown Police Department, Washington County Sheriff’s Office, and the Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Evan T. Shea, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Delaware County Dairy Cattle Farmer Pleads Guilty to Illegal Alien HarboringRead the Press Release
A Delaware County, Iowa, man pled guilty today in federal court in Cedar Rapids to one count of harboring, encouraging, and inducing an alien to reside in the United States in violation of law, for the purpose of commercial advantage or personal financial gain.
Michael Thomas Millenkamp, 47, of rural Earlville, Iowa, was convicted of one count of harboring, encouraging, and inducing an alien to reside unlawfully in the United States.
In a plea agreement filed at the time of the plea hearing, Millenkamp admitted that between 2007 and 2011, he employed several illegal aliens at his business, Mike Millenkamp Dairy Cattle, near Earlville. Some of the illegal alien employees were permitted to reside at one or more farms owned by Millenkamp. Millenkamp admitted he told one illegal alien:
“these people I know, they’re my friends, and they’re like, Mike why are you hiring people that are illegal? Why are you hiring people illegal Mike? I said, I don’t know. But I knew I had to lie, I had to lie.”
As part of the plea agreement, Millenkamp is required to engage in ongoing compliance with the employment eligibility verification laws, and to obtain a certification that his animal feeding operations are in compliance with Iowa’s water quality standards. If the environmental assessment indicates deficiencies in Millenkamp’s operations, Millenkamp will be required to remediate those problems.
Millenkamp also agreed as part of his plea agreement to pay a total financial sanction of $250,000 to the United States, and to make at least two public presentations to statewide farm groups to bring awareness to his case.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Millenkamp was released on bond pending sentencing. Millenkamp faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 in special assessment, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-02031-LRR.
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Danville Man Indicted on Fraud ChargesRead the Press Release
Danville, VIRGINIA – A majority owner of Hayes & Iron Metal, a full service metal recycling and salvage operation founded in 1980, was indicted by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke on a variety of fraud charges.
Douglas T. Alderson II, 44, of Danville, Virginia, was charged in a sealed indictment earlier this month. That indictment was unsealed today after the defendant made his initial court appearance in U.S. District Court in Roanoke.
The grand jury has charged Alderson with one count of bank fraud and two counts of making false statements to obtain bank funds.
According to the indictment, Alderson secured a $6 million loan, later increased to $7 million, from BB&T bank for what he claimed were “seasonal working needs” for Hayes & Iron Metal. The primary collateral was Hayes’ accounts receivables. One of the entities Alderson listed on his Loan Base Report to BB&T was a vendor, Virginia Wire and Processing. However, it was later revealed that Virginia Wire and Processing was not a vendor of Hayes Iron & Metal but was rather an entity owned and funded by Alderson. Alderson purposefully misstated the amounts owed to Hayes Iron and Metal in order to secure the loan.
The indictment alleges that Alderson treated Virginia Wire and Processing as a wholly owned subsidiary of Hayes and was paying Virginia Wire and Processing’s bills, payroll and advancing money to run their operations. It is also alleged that Alderson used Virginia Wire and processing money for personal expenses, including but not limited to: in 2011, $329,390 in American Express charges that were personal in nature, including $92,534 for lodging at the Ritz-Carlton in New York City and $53,856 for charter jets. In 2013, Alderson alleged charged $260,093 in personal charges on the American Express account, including but not limited to, $34,585 for lodging at the Ritz-Carlton, $79,415 for personal shopping, $68,712 for event tickets and $22,210 for jet, bus and limousine charters.
If convicted, the defendant faces up to 30 years in prison and/or a fine of up to $1 million.
The investigation of the case was conducted by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney C. Patrick Hogeboom III will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Cruise Line Employee Sentenced to 13 Months in Prison for Abusive Sexual Contact of Sleeping Woman on Cruise ShipRead the Press Release
NEWARK, N.J. – A Mauritius man was sentenced today to 13 months in prison for sexually abusing a sleeping woman aboard a cruise ship, U.S. Attorney Paul Fishman announced.
Karan Seechurn, 26, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of abusive sexual contact. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Seechurn was employed by a cruise line and was responsible for restocking the minibars located in passengers’ rooms. In order to conduct this duty, he was provided with a key that gave him access to passengers’ rooms. Seechurn admitted that on Dec. 23, 2014, while he was off-duty, he entered a passenger’s room and encountered a sleeping woman. Seechurn admitted that he touched the passenger’s genitalia while she was asleep.
In addition to the prison term, Judge Salas sentenced Seechurn to one year of supervised release.
The federal government has special maritime jurisdiction over sexual abuse cases, such as those that occur on cruise ships.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office General Crime Unit in Newark.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Clinical Director of Home Care Agency Convicted of Health Care Fraud SchemeRead the Press Release
BOSTON – The clinical director of a home nursing agency was convicted today in U.S. District Court in Boston following a four-day trial in connection with her role in a multi-million dollar scheme to defraud Medicare.
Janice Troisi, 66, of Revere, was convicted of conspiracy to commit health care fraud and 10 counts of health care fraud. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Nov. 10, 2015.
Troisi, a registered nurse, was the Clinical Director of At Home VNA (AHVNA), a home health agency located in Waltham, which was owned and operated by her co-conspirator, Michael Galatis, also a registered nurse. From 2006 to 2012, Galatis submitted more than $27 million in fraudulent home health care claims to Medicare, and Medicare paid more than $20 million of those fraudulent claims that, by and large, were not medically necessary. Troisi joined AHVNA in fall 2009, and by Jan. 1, 2010, she had joined the conspiracy.
The Medicare program pays for home health services only under specified conditions, including that a physician has certified that the patient is homebound and needs certain skilled services, such as nursing or physical therapy. Troisi and Galatis trained AHVNA nurses to recruit Medicare beneficiaries who lived in senior housing developments or group homes for the disabled. They held “wellness clinics” at these developments, where nurses convinced senior citizens to enroll with AHVNA and have a nurse visit them in their home. Troisi and Galatis trained AHVNA nurses to manipulate the patients’ Medicare assessment forms to make it appear as though the patients qualified for Medicare home health services, when that was often not the case. The home health orders were signed by AHVNA’s paid medical director, Dr. Spencer Wilking. Dr. Wilking falsely certified to Medicare that these individuals were homebound and needed skilled services, when he never treated or even met the vast majority of AHVNA’s approximately 1,400 patients. In fact, the overwhelming majority of AHVNA’s patients were not homebound and did not need home health services, but many worked, took out-of-state vacations, and lived independent lives.
Many of the patients’ primary care physicians were unaware that AHVNA was sending nurses to see their patients in their homes. A number of primary care physicians who learned of AHVNA’s services complained to Troisi and Galatis and asked them to stop seeing their patients, but Troisi and Galatis ignored these requests. Similarly, AHVNA’s nurses frequently asked Troisi and Galatis if they could stop seeing the patients, because they did not need home health services, but Troisi and Galatis refused these requests as well in order to ensure a steady billing stream.
In 2011, Medicare passed a new regulation requiring that the physician certify that she or he had a face-to-face encounter with the patient about the need for home health care. Even after this regulation was enacted, Troisi continued to prepare certifications and orders for home health care for a doctor to sign despite knowing that the doctor had not examined any of the patients. This allowed Galatis to bill Medicare for millions of dollars of home health care despite the new regulation.
Galatis was convicted of conspiracy to commit health care fraud, ten counts of health care fraud, and seven counts of money laundering, and sentenced in February 2015 to 92 months in prison.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or the greater of twice the gross gain or loss resulting from the offense, and restitution to the Medicare program. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Philip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistance was also provided by the New England Benefit Integrity Support Center, a fraud contractor for the Medicare program. The case was prosecuted by Assistant U.S. Attorneys Lisa A. Schlatz and David S. Schumacher of Ortiz’s Health Care Fraud Unit.
Child Pornography Producer Receives Lengthy Prison SentenceRead the Press Release
ATLANTA - Jeff Clouse has been sentenced to 20 years in prison for producing and distributing child pornography via the Internet. Clouse possessed and actively traded child pornography on the Internet.
“Clouse created a series of vile videos depicting a mother sexually abusing her own young children,” said Acting U.S. Attorney John Horn. “He further exploited these children by trading the videos for more child pornography. This is simply one of those cases that defies any explanation, and it is difficult to quantify the pain and suffering his conduct caused. But it reinforces our commitment to bring justice those who victimize children by producing child pornography.”
“This case exemplifies the international nature of the modern child pornography trade,” said Special Agent in Charge Nick S. Annan, head of ICE Homeland Security Investigations (HSI) in Atlanta. “The defendant sexually exploited a mother and her young daughters in the Philippines via a webcam. He then traded recordings of that abuse with others for additional child pornography on a Russian file sharing site. As we learn more and more in these investigations, the fight against child pornography is clearly global in nature, and HSI is well positioned to follow the threads of these international networks and hold child predators accountable for their crimes against the innocent.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In January 2012, agents with the Department of Homeland Security in Phoenix, Arizona, initiated an investigation into an individual using a Russian file sharing website to trade child pornography. During a forensic review of the individual’s computer, Phoenix agents found that their target was exchanging child pornography with an email address in Atlanta, Georgia. A subsequent investigation revealed that this email address was associated with Jeff Clouse in Conyers, Georgia.
On February 15, 2013, agents went to Clouse’s home and explained that child pornography had been sent to an email address associated with him. Clouse admitted that he possessed thousands of images of child pornography and actively traded child pornography on the Internet. Clouse then directed the agents to the areas on his computer where he kept the images.
As agents reviewed Clouse’s email accounts, they found hundreds of images and videos containing child pornography, including videos that appeared to have been made with a web camera and “streamed” over the Internet. In the videos, a woman performed sexual acts on her minor daughters while Clouse directed her on a live video link. From chat logs found on Clouse’s computer, it appears that this woman lived in the Philippines and that the small children were her daughters.
After these videos were identified, Clouse agreed to speak with agents about the items found on his computer. In that interview, Clouse admitted he met the woman in the videos online in a chat room and that she created the child pornography at his direction using a web camera on her computer. The videos were made in the Philippines and transmitted over the Internet to Clouse in the United States, who then saved them on his computer so that he could view and trade the images at a later time. Clouse said that the two girls who were sexually abused in the videos were the woman’s minor daughters who were 6 and 8 years old.
A forensic review of his computer showed that Clouse subsequently distributed these videos to other individuals who were seeking child pornography. For Clouse, the videos became a kind of currency by which he could obtain more child pornography from other pedophiles. The forensic review also revealed that Clouse had been grooming at least one other minor during this same time.
On Tuesday, August 4, 2015, the Court sentenced Jeff Clouse, 47, of Conyers, Georgia, to 20 years in prison to be followed by 50 years of supervised release, and ordered him to pay restitution in the amount of $16,000. Clouse was convicted on these charges on June 12, 2014, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Kurt R. Erskine prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Child Exploitation, Human Trafficking, Drug Abuse and Working with Crime VictimsRead the Press Release
DUBUQUE, IOWA – Seven United States Attorneys’ Offices joined together in a multi-state conference with the Iowa Organization for Victim Assistance to host a three day conference in Dubuque beginning today. Over 100 victim service professionals and law enforcement officers are participating in the summit, which focuses on “excellence in victim services.”
The Iowa Organization for Victim Assistance (IOVA) was established in 1983 for the purpose of educating Iowans regarding victim rights issues. It is comprised of survivors of crime, witnesses, victim advocates, concerned citizens and related agencies and organizations.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, made opening remarks at the conference. He noted that, “The conference brings in the best and the brightest national speakers who provide cutting edge information and research relating to the best practices for responding to victims of crime.”
During the conference, IOVA kicked-off its new awareness campaign, “Don’t be a bystander, blow the whistle on Crime!” IOVA President Karl Schilling said, “The idea behind this campaign was to encourage people to help one another yet still be safe. Whistles are a great way to protect one’s self and to draw attention to get help.”
The inspiring stories of two victim surveyors highlight the conference during the opening and closing programs.
Keynote speaker Kevin Mulcahy recounted how he survived childhood sexual abuse at the hands of his youth soccer coach. Now, an Assistant United States Attorney working in the Eastern District of Michigan, he prosecutes childexploitation cases. Mulcahy’s personal experience provided a straightforward, firsthand account of the importance and value of the services provided to victims.
The conference will close with another inspiring life story of resilience and redemption. As a child, Derek Clark will detail how he suffered unthinkable child abuse, abandonment, and emotional distress. He was labeled and misdiagnosed as mentally handicapped. Clark will tell how he defied the artificial limitations imposed on him to become a successful businessman and motivational speaker.
Over the two and one half day conference, attendees receive training and information on a variety of continuing and emerging victim issues to equip them to better serve crime victims. Among the scheduled sessions are workshops on assisting drug endangered children; domestic violence; prescription drug abuse; violence against children; human trafficking; working with people in crisis; victim-offender dialogue; and victim compensation.
Those interested in learning more about the Iowa Organization for Victim Assistance can access more information at http://www.iowaiova.com/.
The media was invited to attend the presentation made by the two survivors.
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Cecil County Man Indicted for the Attempted Sexual Exploitation of a Minor and for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury indicted James J. Stanley, age 28, of Rising Sun, Maryland, today for the attempted sexual exploitation of a minor and for distribution of child pornography.
The indictment 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); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief F.D. “Chip” Peterson, Jr. of the Rising Sun Police Department; and Cecil County State’s Attorney Ellis Rollins.
According to the two-count indictment, Stanley used a website that hosts anonymous, randomized, one-to-one video and text chat. The website allows users to seek chat partners without creating an account or providing any identifying information, and markets itself as an opportunity for users to “Talk to strangers!” The website allows users to engage in text-based chat sessions with or without accompanying video from the user’s webcam.
The indictment alleges that on October 20, 2014, while Stanley was participating in a video chat session on the website he used his webcam to display an image documenting the sexual abuse of a prepubescent girl.
The indictment also alleges that Stanley placed a digital recording device in a shower that he knew would be used by a minor female (Girl1), with the intent to create video recordings of Girl 1 engaged in sexually explicit conduct. Between November 14, 2014 and January 14, 2015, Stanley allegedly saved a video file to his computer that depicted Girl 1 taking a shower. Girl 1’s genital area is not visible in the video.
Stanley faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison for the attempted sexual exploitation of a child; and a minimum mandatory sentence of five years and a maximum of 20 years in prison for distribution of child pornography, each followed by up to lifetime of supervised release. An initial appearance has not yet been scheduled for Stanley, who is currently detained on related state charges.
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.
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 the HSI Baltimore, the Maryland State Police, Rising Sun Police Department, and the Cecil County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who is prosecuting the case.
Businessman Sentenced to Five Years in Federal Prison for Conspiracy to Misbrand a Product for Human Consumption, Money LaunderingRead the Press Release
Labeling Failed to Disclose That “Potion 9” Contained an Ingredient Known to Metabolize into What is Commonly Referred to as a “Club Drug” or “Date Rape Drug.”
Tayfun Karauzum, 45, of Newport Beach, California, has been sentenced in U.S. District Court in Providence, Rhode Island, to five years in federal prison for manufacturing, marketing and distributing for human consumption Potion 9, a product containing butanediol, an industrial solvent that rapidly metabolizes into gammahydroxybutyric acid (GHB) – commonly referred to as a “club drug” or “date rape drug.”
Karauzum was the owner of Max American Distribution LLC in Newport Beach through which he marketed and distributed between $1 million and $2.5 million worth of Potion 9 through online sales and dietary supplement companies.
An investigation by the U.S. Attorney’s Office for the District of Rhode Island and the Rhode Island U.S. Food and Drug Administration (FDA) Task Force, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation, determined that Karauzum provided to a lab the ingredients for the manufacture of his Potion 9, including unlabeled containers of butanediol, which Karauzum claimed to be a proprietary ingredient. Karauzum also provided labels for the packaging of Potion 9, which did not list butanediol as an ingredient.
Karauzum marketed Potion 9 as a “mood enhancer” that “may improve stamina and energy, promote a feeling of well-being, produce euphoria, [and] increase intensity of orgasms.”
The investigation revealed that Karauzum caused to have manufactured and made available for distribution nearly 13.5 million milliliters of the misbranded product Potion 9. The investigation also determined that Karauzum routinely transferred proceeds from the sale of Potion 9 sales in increments in excess of $10,000 from his business’ PayPal account into a personal bank account.
Karauzum’s sentencing is announced by U.S. Attorney Peter F. Neronha of the District of Rhode Island and Acting Special Agent in Charge Jeff Ebersole of the Office of FDA Criminal Investigations’ New York Field Office.
“The misbranding of drugs is an ongoing and increasing threat to public safety in general,” said U.S. Attorney Neronha. “Here, the defendant’s criminal conduct was particularly egregious. He misbranded not just any drug, but an incredibly dangerous one, one used to victimize unsuspecting innocent people, on an enormous scale. The lengthy prison sentence he has received is well-deserved.”
“The defendant’s actions exposed unsuspecting consumers to potentially serious danger,” said Acting Special Agent in Charge Ebersole. “This investigation demonstrates the Office of Criminal Investigations’ commitment to vigorously pursue criminal violations that threaten the public health. We thank our partners from the U.S. Attorney’s Office in the District of Rhode Island, the U.S. Postal Inspection Service and the Criminal Investigation Division of the Internal Revenue Service for their efforts in this case.”
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karauzum to serve three years supervised release upon completion of his prison term. Karauzum pleaded guilty on Jan. 30, 2015 to one count of conspiracy to misbrand a product for human consumption and one count of money laundering.
The case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
Businessman Sentenced to 5 Years in Prison for Conspiracy to Misbrand a Product for Human Consumption, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Tayfun Karauzum, 45, of Newport Beach, Calif. has been sentenced in U.S. District Court in Providence, R.I., to 60 months in federal prison for manufacturing, marketing and distributing for human consumption Potion 9, a product containing butanediol, an industrial solvent that rapidly metabolizes into gammahydroxybutyric acid (GHB) – commonly referred to as a “club drug” or “date rape drug.”
Karauzum was the owner of Max American Distribution LLC in Newport Beach, Calif., through which he marketed and distributed between $1 million and $2.5 million dollars worth of Potion 9 through online sales and dietary supplement companies.
An investigation by the United States Attorney’s Office for the District of Rhode Island and the Rhode Island U.S. Food and Drug Administration Task Force, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation, determined that Karauzum provided to a lab the ingredients for the manufacture of his Potion 9, including unlabeled containers of butanediol which Karauzum claimed to be a proprietary ingredient. Karauzum also provided labels for the packaging of Potion 9, which did not list butanediol as an ingredient.
Karauzum marketed Potion 9 as a “mood enhancer” that “may improve stamina and energy, promote a feeling of well-being, produce euphoria, [and] increase intensity of orgasms.”
The investigation revealed that Karauzum caused to have manufactured and made available for distribution nearly 13.5 million milliliters of the misbranded product Potion 9. The investigation also determined that Karauzum routinely transferred proceeds from the sale of Potion 9 sales in increments in excess of $10,000 from his business’ PayPal account into a personal bank account.
Karauzum’s sentencing is announced by United States Attorney Peter F. Neronha and Jeff Ebersole, Acting Special Agent in Charge of the Office of FDA Criminal Investigations’ New York Field Office.
United States Attorney Peter F. Neronha said, “The misbranding of drugs is an ongoing and increasing threat to public safety in general. Here, the defendant’s criminal conduct was particularly egregious. He misbranded not just any drug, but an incredibly dangerous one, one used to victimize unsuspecting innocent people, on an enormous scale. The lengthy prison sentence he has received is well-deserved.”
“The defendant’s actions exposed unsuspecting consumers to potentially serious danger. This investigation demonstrates the Office of Criminal Investigations’ commitment to vigorously pursue criminal violations that threaten the public health,” said Jeff Ebersole, Acting Special Agent in Charge of FDA’s Office of Criminal Investigations’ New York Field Office. “We thank our partners from the United States Attorney’s Office in the District of Rhode Island, the U.S. Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service for their efforts in this case.”
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Karauzum to serve three years supervised release upon completion of his prison term. Karauzum pleaded guilty on January 30, 2015 to one count of conspiracy to misbrand a product for human consumption and one count of money laundering.
The case was prosecuted by Assistant United States Attorneys Sandra R. Hebert and Richard B. Myrus.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Aaron T. Holmes, 44, of Buffalo, NY, who was convicted of possession and distribution crack cocaine, was sentenced to 84 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S Attorney Thomas S. Duszkiewicz, who handled the case, stated that Holmes sold crack cocaine to an individual working for the Federal Bureau of Investigation on eight separate dates in 2013. During those purchases, the FBI observed the defendant engaging in drug transactions with 16 other individuals during surveillance of the undercover purchases. During this same time period, Holmes was arrested three times by Buffalo Police. Each arrest followed the execution of a search warrant at the defendant’s residence. On December 3, 2013, the FBI executed a search warrant and recovered quantities of crack cocaine, drug paraphernalia, $2,184 in United States currency and a sophisticated surveillance system.
The plea is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Bremerton, Washington, Man Charged with Anti-Gay Hate Crime for Assault on Seattle's Capitol HillRead the Press Release
Defendant Screamed Homophobic Slurs while Chasing Gay Men with a Knife
A 38-year-old Bremerton, Washington, man was charged today with a federal hate crime under the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, for a January 2015 assault on three gay men, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington. Troy Deacon Burns was transferred from state custody today for his initial appearance on the federal charge in U.S. District Court in Seattle at 2:00 p.m. PDT.
According to the criminal complaint, just after midnight on Jan. 25, 2015, three gay men were walking on East Pike Street toward Broadway in Seattle’s Capitol Hill neighborhood when Burns came up behind them and shouted homophobic slurs. Burns was holding a knife, which he raised up over his head in a stabbing position. Fearing for their safety the men started running. As Burns caught up to one of the men he again used a slur as he attempted to stab him. One of the other men was able to pull his friend away from Burns. The third man located Seattle Police Officers who took Burns into custody. While detained in the patrol car, Burns continued to yell homophobic slurs.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Commission of a hate crime is punishable by up to ten years in prison and a $250,000 fine.
The case was investigated by the Seattle Police Department and is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant U. S. Attorney Bruce Miyake of the Western District of Washington. The King County Prosecuting Attorney’s Office is providing significant assistance with the case.