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29 July 2015
Pineville Sex Offender Sentenced to 30 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Pineville, Mo., man who is a registered sex offender was sentenced in federal court today for producing child pornography.
Jeremy Wayne Law, 31, of Pineville, was sentenced by U.S. District Judge Stephen R. Bough to 30 years in federal prison without parole.
On March 25, 2015, Law pleaded guilty to attempting to use a minor to produce child pornography. Law, who has three previous sex convictions, is a registered sex offender.
Law admitted that he communicated via text messages with a 16-year-old female, identified as “T.C.,” who resided in New York. Investigators found pornographic images and videos of T.C. on Law’s computer. Law also admitted that he had twice engaged in sexual intercourse with T.C. in a vehicle and that he had sent her an image of his genitalia.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the Southwest Missouri Cyber Crime Task Force, the Northwest Arkansas Internet Crimes Against Children Task Force, the McDonald County, Mo., Sheriff’s Department and the Hamburg, N.Y., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Philadelphia Congressman and Associates Charged with Participating in Racketeering ConspiracyRead the Press Release
PHILADELPHIA – A Member of Congress and four of his associates were indicted today for their roles in a racketeering conspiracy involving several schemes that were intended to further the political and financial interests of the defendants and others by, among other tactics, misappropriating hundreds of thousands of dollars of federal, charitable and campaign funds.
Charged in a 29-count indictment are: Congressman Chaka Fattah Sr., 58, of Philadelphia, Bonnie Bowser, 59, of Philadelphia, Karen Nicholas, 57, of Williamstown, NJ, Herbert Vederman, 69, of Palm Beach, Florida, and Robert Brand, 69, of Philadelphia. The indictment charges participation in a racketeering conspiracy, bribery, conspiracy to commit wire, honest services and mail fraud, money laundering conspiracy, money laundering, bank fraud, false statements to a financial institution, and multiple counts of mail fraud, wire fraud, and falsification of records.
The charges were announced today by United States Attorney Zane David Memeger, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, FBI Special Agent-in-Charge Edward J. Hanko and IRS-Criminal Investigation Special Agent-in-Charge Akeia Conner.
Specifically, the indictment alleges that, in connection with his failed 2007 campaign to serve as mayor of Philadelphia, Fattah and certain associates borrowed $1 million from a wealthy supporter, and disguised the funds as a loan to a consulting company. After he lost the election, Fattah allegedly returned to the donor $400,000 that the campaign had not used, and arranged for Educational Advancement Alliance (EAA), a non-profit entity that he founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand. To conceal the contribution and repayment scheme, the defendants and others allegedly created sham contracts, and made false entries in accounting records, tax returns and campaign finance disclosure statements.
In addition, the indictment alleges that, after his defeat in the mayoral election, Fattah sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. According to the allegations in the indictment, Fattah directed the consultant to apply for a $15 million grant (which ultimately he did not receive) on behalf of a then non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award of the funds to the non-profit, the consultant allegedly agreed to forgive the debt owed by the campaign.
The indictment further alleges that Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah and Bowser allegedly arranged for his campaigns to make payments to a political consulting company, which funds the company then used to lessen Fattah’s son’s student loan debt. According to the allegations in the indictment, between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000.
In another alleged scheme, beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the United States Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the indictment alleges that the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale that never actually took place.
Finally, the indictment alleges that Nicholas obtained $50,000 in federal grant funds that she claimed would be used by EAA to support a conference on higher education. The conference never took place. Instead, Nicholas used the grant funds to pay $20,000 to a political consultant, $10,000 to her attorney, and also wrote several checks to herself from EAA's operating account.
“The public expects their elected officials to act with honesty and integrity,” said Memeger. “By misusing campaign funds, misappropriating government funds, accepting bribes, and committing bank fraud, as alleged in the Indictment, Congressman Fattah and his co-conspirators have betrayed the public trust and undermined faith in government.”
“As charged in the indictment, Congressman Fattah and his associates embarked on a wide-ranging conspiracy involving bribery, concealment of unlawful campaign contributions and theft of charitable and federal funds to advance their own personal interests,” said Assistant Attorney General Caldwell. “When elected officials betray the trust and confidence placed in them by the public, the department will do everything we can to ensure that they are held accountable. Public corruption takes a particularly heavy toll on our democracy because it undermines people’s basic belief that our elected leaders are committed to serving the public interest, not to lining their own pockets.”
“These crimes and their cover up constitute a breach of the public trust,” said Hanko. “A founding principle of our democracy is that citizens place their faith and trust in the public servants they elect to represent them. It is the duty of the FBI, IRS, and Department of Justice to investigate and prosecute those who violate this trust and put personal gain above public service.”
“Public corruption by our elected officials and their associates undermines the American public’s confidence in our government,” said Conner. “When our elected officials and their associates violate the law and create sophisticated financial schemes to enrich themselves, the Internal Revenue Service Criminal Investigation will work diligently with our fellow law enforcement partners to restore the public’s trust.”
The case is being investigated by the FBI and IRS-Criminal Investigation. Assistance was provided by the Department of Justice Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Paul L. Gray, Trial Attorneys Eric L. Gibson, T. Patrick Martin and Jonathan Kravis of the Criminal Division’s Public Integrity Section. Trial Attorney Bob Dalton of the Criminal Division’s Organized Crime and Gang Section also has provided assistance.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Palm Beach County Resident Sentenced to 15 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
On July 24, 2015, Presner Telusme, of West Palm Beach, was sentenced to 15 years in prison by U.S. District Judge Kenneth Marra, following his guilty plea to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g) and 924(e).
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.
According to court records, Telusme was arrested pursuant to a warrant. During the subsequent execution of a search warrant at Telusme’s residence, law enforcement discovered a stolen firearm. Telusme, who was previously convicted of state felony offenses, including two sales of cocaine, resisting arrest with violence, and fleeing/eluding, admitted to unlawfully possessing the firearm.
This case is, in large part, the result of the Project Safe Neighborhood Partnership, launched by the U.S. Attorney’s Office for the Southern District of Florida. Through this Partnership, the U.S. Attorney’s Office and its federal, state and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training and family services, and help individuals who have completed their federal and state prison sentences to successfully re-enter society.
Mr. Ferrer and Mr. Aronberg commended the investigative efforts of the ATF and PBSO. This case is being prosecuted by Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach County State Attorney’s Office.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pair Heads to Federal Prison for Importing, Trafficking MethamphetamineRead the Press Release
LAREDO, Texas - A Laredoan and a Mexican national have been ordered to federal prison following their pleas of guilty to possession with intent to distribute nearly 50 pounds of methamphetamine, announced U.S. Attorney Kenneth Magidson.
Gilberto Jorge Rodriguez, 48, of Laredo, and Andres Villarreal-Parades, 28, of Nuevo Laredo, Mexico, pleaded guilty Dec. 15, 2015, and April 13, 2015, respectively.
Today, U.S. District Judge Marina Garcia Marmolejo, who accepted both pleas, ordered Villarreal-Parades to serve a total of 168 months in federal prison and is expected to face deportation proceedings immediately thereafter. Rodriguez was sentenced to 78 months to be followed by three years of supervised release.
On July 28, 2014, Rodriguez was arrested following a routine traffic stop in Freer when a narcotics canine alerted to the presence of drugs in the trunk of his car. Law enforcement officers then searched the vehicle and found eight bundles containing 20.7 kilograms of methamphetamine hidden in the spare tire.
During today’s hearing, Judge Marmolejo heard evidence demonstrating that Villareal-Parades had recruited Rodriguez on at least three occasions to deliver methamphetamine that he had hidden in spare tires to various cities in Texas. After each trip to deliver the drugs, Rodriguez would return to Laredo and deliver the proceeds from the methamphetamine to Villareal-Paredes, at which time he paid Rodriguez $10,000.
The charges were the result of an investigation conducted by Homeland Security Investigations. Assistant U.S. Attorneys Mike Eaton and Sanjeev Bhasker prosecuted the case.
North Carolina Man Pleads Guilty to Interstate Travel in Aid of Lawful ActivityRead the Press Release
Gulfport, Miss – Jywaun Davis Williams, 29, of Charlotte, North Carolina, pled guilty today before Chief U.S. District Judge Louis Guirola to interstate travel in aid of drug trafficking activity, announced U. S. Attorney Gregory K. Davis and DEA Special Agent in Charge Keith Brown.
Williams was charged following a traffic stop on I-10 in Gulfport in April, 2014. He will be sentenced on October 22, 2015, and faces a maximum penalty of five years in federal prison and a $250,000 fine.
This case was investigated by the Gulfport Police Department and the Drug Enforcement Administration. Assistant United States Attorney Annette Williams is prosecuting the case.
New York Man Arrested and Charged with Attempting to Provide Support to ISILRead the Press Release
Arafat M. Nagi, 42, of Lackawanna, New York, was arrested and charged by criminal complaint with attempting to provide material support and resources, namely personnel, to a foreign terrorist organization, the Islamic State of Iraq and the Levant (ISIL). The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney William J. Hochul Jr. of the Western District of New York and Special Agent in Charge Brian P. Boetig of the FBI’s Buffalo, New York, Division made the announcement today.
“Our continuing fight against international terrorism today returns to Western New York,” said U.S. Attorney Hochul. “As alleged, Arafat Nagi pledged allegiance to the Islamic State and the leader of this terrorist organization. After buying military combat gear, he traveled twice to Turkey in an effort to help the group. Thanks to the combined efforts of law enforcement and community members, this defendant is no longer capable of achieving his goal of joining the most despicable group of our time.”
“The FBI has a responsibility to ensure that our law enforcement and intelligence agencies are positioned to identify existing or emerging threats,” said Special Agent in Charge Boetig. “Joint Terrorism Task Forces (JTTFs) serve as the national platforms for deterring, detecting and disrupting terrorist machinations. The JTTF in Buffalo relies on community engagement to gain perspectives on radicalization and to deter recruitment and the spread of radicalization messages. We continue to call upon people to contact law enforcement if they know of someone who has been influenced by ISIL rhetoric on social media – powerful propaganda that calls for followers to commit quick and unpredictable violent acts.”
According to the complaint, on Aug. 28, 2014, a Lackawanna community member advised the FBI that Nagi talks about violent jihad to various people in the community and it is common for Nagi to get into verbal arguments regarding his jihadi beliefs.
Further investigation determined that Nagi pledged allegiance to ISIL and the leader of the terrorist group, Abu Bakr al Bagdadi. The defendant traveled to Turkey on two occasions, in October 2012 and July 2014, with the intention to meet with members of the group. Evidence revealed that prior to these trips, the defendant purchased large number of military combat items, including a tactical vest, army combat shirt, body armor, a Shahada Flag, combat boots, a backpack, burn kit, hunting knife, machete and night vision goggles.
During follow up interviews in December 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen, which he blamed on the United States; pledged an oath to ISIL leaders; expressed agreement with ISIL tactics, including the killing of innocent men, women and children; and planned to travel to Yemen and Turkey again soon.
Nagi will make his initial appearance this morning at 11:00 a.m. before U.S. Magistrate Judge Hugh B. Scott in the Western District of New York.
The complaint is the culmination of an investigation by the FBI’s Buffalo JTTF, which includes the Amherst, New York, Police Department; the Buffalo Police Department; the U.S. Department of State; the Federal Protective Service; Immigration and Customs Enforcement’s Homeland Security Investigations; the Internal Revenue Service; the New York State Police; the Niagara County, New York, Sheriff’s Office; the Niagara Falls, New York, Police Department; the Customs and Border Protection’s U.S. Border Patrol; and the U.S. Customs and Border Protection/Air and Marine Branch. Additional assistance was provided by the New York State Attorney General’s Office.
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.
Nassau County Nurse Arrested and Charged with Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Ronald Eugene Mabrey, Jr. (34, Callahan) has been arrested and charged by a federal criminal complaint with receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison. A detention hearing is scheduled for July 30, 2015.
According to the criminal complaint, on July 28, 2015, FBI agents and other law enforcement officers executed a federal search warrant at Mabrey’s residence in Callahan. During an interview, Mabrey admitted to searching for, downloading, and viewing child pornography. He estimated that his computer would contain “a couple thousand” images and “approximately 500 videos” depicting child pornography. A forensic examination of Mabrey’s laptop revealed images depicting the sexual abuse of a prepubescent child that had been recently downloaded.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Mother, Nurses Plead Guilty to Defrauding TennCare of $400,000Read the Press Release
Jackson, TN – A mother and four nurses assigned to care for her now-deceased son have all pled guilty to conspiring to commit health care fraud.
According to the charging documents and plea agreements in the case, Josephine Coach’s son had a tracheotomy and required a ventilator for breathing assistance. The child, who was wheel-chair bound, also had gastrointestinal problems that required frequent monitoring. The child’s doctor ordered 19 hours of daily nursing care for the child. The child received health care through TennCare, the state of Tennessee’s Medicaid program, which provides health care services to qualifying indigent individuals.
Nurses employed with On Call Staffing, Inc. were supposed to provide the 19 hours of daily home health services ordered by the doctor. On Call Staffing was a subcontractor to Functional Independence Home Care, Inc., which contracted with TennCare to provide nursing services to patients who utilized the Medicaid program.
From January 2009 to August 2011, Coach knowingly and intentionally conspired with four of the nurses to defraud TennCare by billing the program for nursing services that were never provided to the child. Specifically, Coach and the nurses reached agreements whereby the nurses would not show up for their appointed shifts but still turn in time sheets as if they had worked. The nurses then split their pay for the shifts with Coach. As a result of the fraud, TennCare paid over $400,000 for nursing services that were never provided to the child.
"The defendants’ scheme of foregoing the medical needs of a severely disabled minor in exchange for financial gain at taxpayer expense is shocking and reprehensible," said U.S. Attorney Edward L. Stanton III. "Each defendant, including the minor’s mother, will now be held accountable at sentencing."
The nurses involved with the scheme who pled guilty include: Falesha Wilson, Carla Surratt, Nakesha Stephens, and Nicole Douglass. Evidence obtained during the investigation indicates that the nurses who made similar arrangements with Coach may have actually worked approximately two out of every seven of their reported shifts.
According to the charging documents and plea agreements:
• Between February and August 2011, each of the four nurses received at least one paycheck in the amount of $1,462.34 for services supposed to have been provided to Coach’s son. The nurses then split the paychecks with Coach.
• Each nurse was assigned to work 9.5-hour shifts with Coach’s son.
• Douglass’ tenure caring for Coach’s son lasted from January 2009 to May 2011. TennCare paid $394 per shift for Douglass. She turned in time sheets for 721 shifts during her assignment.
• Wilson’s tenure caring for Coach’s son lasted from January to June 2011. TennCare paid $394 per shift for Wilson. She turned in time sheets for 643 shifts during her assignment.
• Surratt’s tenure caring for Coach’s son lasted from May to August 2011. TennCare paid $394 per shift for Surratt. She turned in time sheets for 103 shifts during her assignment.
• Stephens’ tenure caring for Coach’s son lasted from June to August 2011. TennCare paid $394 per shift for Stephens. She turned in time sheets for 75 shifts during her assignment.
Coach’s son passed away in April 2015 at age 12.
Douglass, Stephens, and Surratt are slated for sentencing on October 2, 2015.
Wilson is slated for sentencing on October 9, 2015.
Coach is slated for sentencing on October 23, 2015.
All defendants will be sentenced by Chief Judge J. Daniel Breen. They each face up to five years imprisonment and up to a $250,000 fine.
The case is being investigated by the Tennessee Bureau of Investigation.
Assistant U.S. Attorney John Fabian is representing the government in this case.
Middle School Music Teacher Charged with Accessing, Possessing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was arrested this morning after FBI agents found sexually explicit images of children on his home computer, U.S. Attorney Paul J. Fishman announced.
Cliff Ramsay, 30, of Raritan, New Jersey, is charged by complaint with one count of accessing images of child sexual abuse and one count of possessing images of child sexual abuse. He appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained pending a bail hearing.
According to the criminal complaint filed today and statements made in court:
On Feb. 25, 2015, and Feb. 27, 2015, Ramsay, a middle school music teacher who also gave music lessons to minors at his home, accessed a website known to contain images, videos and other material containing child pornography. After a search warrant was executed at Ramsay’s home earlier today, law enforcement agents found numerous videos and images of child sexual abuse on his computer, including material depicting prepubescent minors engaged in sexually explicit conduct.
Each count charged in the complaint carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s arrest. Fishman also thanked the Somerset County Prosecutor’s Office, under the direction of Geoffrey D. Soriano; the Hunterdon County Prosecutor’s Office, under the direction of Anthony P. Kearns III; the Raritan Police Department, under the direction of Chief Kenneth McCormick; and the Readington Police Department, under the direction of Chief Sebastian Donaruma, for their assistance with this investigation.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Joshua D. Altman Esq., Trenton, New Jersey
Meth Cook Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Justin Ryan Boles, 32, of Mobile, was sentenced today in federal court for his participation in conspiracy to manufacture methamphetamine and conspiracy to possess a List I chemical with knowledge it would be used to manufacture a controlled substance. Boles pled guilty to the offenses on November 14, 2014. Court documents reflect that Boles was manufacturing methamphetamine at a residence in west Mobile when his clandestine lab exploded and the house burned to the ground. Later, he fled from sheriff’s deputies when they had information that he was manufacturing methamphetamine in an apartment off Old Shell Road. Other individuals were arrested and active methamphetamine labs were seized at that location, but Boles evaded arrest. He was finally taken into custody when deputies located him at another residence in west Mobile. Boles was implicated as a prolific methamphetamine "cook" with numerous suppliers of pseudoephedrine pills, which is the List I chemical that acts as a precursor in the methamphetamine manufacturing process.
This morning, United States District Court Judge William H. Steele imposed a sentence of 188 months on each count, to be served concurrently. The judge also ordered that Boles serve a period of supervised release of three years following his release from prison. Boles was directed to undergo drug testing and treatment as a special condition of his supervised release. He was ordered to pay a special mandatory assessment of $200, but no fine was imposed.
Agencies participating in the investigation of the case were the Mobile County Sheriff’s Office and the Saraland Police Department. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Member of Cherry Hill Group ‘UDH” Sentenced to 15 Years in Prison for Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Bryan Turner, age 29, of Baltimore, to 15 years in prison followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine and heroin. Turner is a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Interim Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Turner is a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
On August 5, 2011, Turner participated in the robbery of the Chesapeake Bank of Maryland in Arbutus, along with other UDH members. Turner and others went into the bank and presented the teller with a note demanding money. Turner and his associates stole $7,305, which was later divided between Turner and three other UDH members.
Turner admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members. They sold the drugs from a house located on Giles Road, in the UDH area of Cherry Hill. At one point, Turner even lived in the residence. In addition to selling drugs from this location, co-defendant Antione White and others stored firearms at the house, which were used communally by other UDH members. On March 8, 2011, officers executed a search warrant at a residence in the 2900 block of Cherryland Road. Turner and other UDH members were arrested and law enforcement recovered $105 from the toilet, where a UDH member had attempted to flush it; a backpack with 406 vials containing almost 25 grams of crack cocaine; drug paraphernalia and packaging material. Officers recovered $192 in cash and two Percocet pills from Turner. On January 18, 2013, Baltimore City Police arrested White and other UDH members at the Giles Road residence and seized cocaine, drug paraphernalia and a loaded gun.
During his participation in the UDH drug conspiracy Turner was responsible for distributing in excess of 280 grams of crack cocaine and more than a kilogram of heroin.
Antione White, age 27, of Baltimore, previously pleaded guilty to his role in the conspiracy and was sentenced to 18 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Man Sentenced to 80 Months for Multimillion-Dollar Mail and Wire FraudRead the Press Release
Memphis, TN – A luxury automobile salesman has been sentenced to 80 months for operating a scheme that defrauded individuals of more than $2 million.
According to the indictment, from October 2010 to September 2013, Michael Brown offered upscale automobiles for sale through his business, Valkry Corporation. However, once he received payments from customers, Brown used the funds for personal benefit and failed to fulfill vehicle orders.
For nearly three years, Brown would partially satisfy order requests, or fail to deliver the vehicle(s) at all, according to the indictment. Brown would use the funds for personal endeavors, as well as travel and business expenses. He also used the funds to purchase additional vehicles, which he advertised to new customers. As a result of his scheme, Brown fraudulently obtained $1,984,803.
One victim of Brown’s scheme over that period is M Super Car, an international luxury automobile dealership based in Macau. In October 2010, M Super Car placed an order with Brown for the purchase of multiple vehicles for $1,268,000, according to the indictment. The dealership made multiple wire transfers from its bank accounts to Valkry Corporation’s First Tennessee accounts to purchase 16 Mercedes-Benz vehicles and a customized Porsche. However, Brown failed to fulfill the company’s order or refund their money for the cars he was unable to deliver.
England-based company KIS Cars, LTD. is another victim of Brown’s scheme. In November 2012, KIS Cars placed an order with Valkry Corporation for four Mercedes-Benz sedans and four Porsche Cayennes. The company paid Valkry Corporation for the orders via two wire transfers, one in the amount of $64,886 and another for $522,404. However, Brown failed to fulfill the orders and only provided a partial refund of $20,000 to KIS Cars.
In August 2013, Leonard Wright negotiated the purchase of a 2014 BMW 650i from Brown for $102,721.57. Wright financed the purchase through Orion Federal Credit Union. Although Brown received a check satisfying his asking price for the BMW, he failed to deliver the car to Wright.
Brown pled guilty to two counts of wire fraud and one count of mail fraud in February 2015. Following his plea, Brown continued his scheme. One of the people he managed to defraud was legendary basketball player Julius "Dr. J" Erving. In February 2015, the former NBA star wired Brown $251,934.13 to purchase a 2015 Rolls Royce Wraith. Nevertheless, Brown failed to fulfill Erving’s order or provide him with a refund.
On Tuesday, July 28th, Brown was sentenced to 80 months by U.S. District Judge S. Thomas Anderson.
The case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney David Pritchard represented the government in this case.
Man Pleads Guilty to Lucrative Federal Benefit Fraud SchemeRead the Press Release
Memphis, TN – A man responsible for executing a federal benefit fraud scheme that cost the government an estimated $400,000 pled guilty to conspiracy charges this week.
According to the indictment, Ray Chism III defrauded the government by purchasing Supplemental Nutrition Assistance Program (SNAP) benefits from recipients for cash in amounts less than the face value of the benefits, and then redeemed the benefits at full monetary value.
From October 2011 to December 2013, Chism recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. Chism subsequently redeemed the benefits through Maxi Foods, a grocery store owned by Chism’s relative, for full monetary value.
SNAP (formerly known as Food Stamps) is a program designed to help low- and middle-income families purchase food. A SNAP beneficiary is provided a designated amount of funding each month via a rechargeable Electronic Benefits Transfer (EBT) card. Cardholders are able to use the allotted funding to purchase eligible food items at authorized retailers. Maxi Foods possessed a SNAP EBT card system, enabling SNAP beneficiaries to pay for eligible food items with their EBT card.
Chism also masterminded a scheme to defraud the Child Care Certificate Program, which provides federal funding to assist underprivileged families with child care costs, from October 2011 to December 2013. Chism paid cash to parents who qualified for Certificate Program benefits in exchange for use of their child care certificates. After acquiring the information, Chism would falsely report the children’s attendance to his daycare center, Helping Hands Enrichment Center, and receive reimbursement for care. Chism also provided non-qualifying parents with false employment verification, which qualified them for the Certificate Program.
On Tuesday, July 28th, Chism pled guilty to conspiracy to commit SNAP benefit fraud and conspiracy to commit child care benefit fraud. Chism faces a maximum sentence of 10 years and a maximum fine of $500,000.
Chism is scheduled to be sentenced on Friday, October 23, 2015 at 9:30 a.m. by U.S. District Judge John T. Fowlkes Jr.
This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department Organized Crime Unit; and the Tennessee Department of Human Services.
This case is being prosecuted for the government by Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland.
Long Island Educator and Coach Pleads Guilty to Receiving Child PornographyRead the Press Release
Earlier today, Long Island educator and coach Kevin Barry O’Connell, 54, pleaded guilty to receiving child pornography at his residence in Patchogue, New York. The plea proceeding was conducted before U.S. District Judge Leonard D. Wexler at the federal courthouse in Central Islip, NY. O’Connell faces a minimum penalty of five years in prison and a maximum of 20 years, and a fine of $250,000.
Today’s guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Raymond R. Parmer, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
“Charged by profession with caring for children, the defendant instead acted to foster their victimization by receiving numerous images of the abuse of children,” stated Acting United States Attorney Currie. Mr. Currie thanked the U.S. Immigration and Customs Enforcement, HSI for its investigation of this case.
According to court filings and admissions made in court at the time he entered the plea, O’Connell downloaded video files of the rape and abuse of children as young as eight years old which he kept on thumb drives in his Patchogue home. During a court-ordered search of his residence on October 15, 2012, O’Connell initially lied to HSI agents and denied that he possessed child pornography until agents found three thumb drives in the pocket of a jacket at the house. O’Connell then admitted that he had hidden the drives in the jacket.
Following his arrest, O’Connell was suspended from his employment as an Assistant Superintendent for Secondary Education in the Roosevelt Union Free School District. O’Connell had previously served as the Principal of Bellport Senior High School in the South Country Central School District and an Assistant Principal at Walter G. O’Connell Copiague High School. O’Connell was the Varsity Baseball Coach from 1990 to 2001 at William Floyd High School.
This prosecution is 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 United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
Kevin Barry O’Connell
Age: 54
Patchogue, New YorkE.D.N.Y. Docket No. 12-CR-715 (LDW)
Las Vegas Man Pleads Guilty to Multi-Million Dollar Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Las Vegas, Nev., man pleaded guilty in federal court today to his role in one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice.
The multi-million dollar scheme, with co-conspirators in the People’s Republic of China and across the United States, illegally sold millions of dollars of Microsoft Corporation and Adobe Systems, Inc., software product key codes through a charitable organization and several online businesses. More than $18 million in assets, including luxury automobiles and expensive real estate, have been seized through federal forfeiture complaints. Those affidavits allege that conspirators reaped about $30 million in profits from customers who paid about $90 million for the pirated software.
Arunachalam Annamalai, 48, a citizen of India residing in Las Vegas, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges him with participating in the software piracy conspiracy. Annamalai is the owner and operator of Vegascart, LLC.
By pleading guilty today, Annamalai admitted that he conspired with others to sell unauthorized software product key codes from Microsoft Corporation on Internet Web sites, eBay auctions, on-line merchant services, and other means. Microsoft product key codes are used to obtain full access to unlocked, licensed versions of various Microsoft copyrighted software programs.
Annamalai admitted that he purchased approximately 2,569 Microsoft software product key codes from co-conspirator Casey Lee Ross, 28, of Kansas City, Mo., between March and December 2013. These software key codes are calculated at a loss amount of $250 each, therefore, the relevant loss amount in this matter is estimated at $642,250.
Ross and Matthew Lockwood, 37, of Denver, Colo., have each pleaded guilty in separate but related cases to their roles in this same conspiracy.
According to court documents, the investigation began when federal agents in Kansas City, Mo., learned in 2013 that Ross had purchased (and redistributed) tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from suspect sources in China.
Ross admitted that he purchased approximately 30,159 product key codes and counterfeit product key cards. Ross purchased these product key codes at prices well below that of the estimated retail price. In many cases, they were distributed on counterfeit card stock intended to make it appear as if they were genuine Microsoft products.
Ross (doing business as Software Slashers) distributed large quantities of these product key codes and counterfeit Microsoft product key cards to co-conspirators in the United States, who in turn sold the product key codes and counterfeit product key cards through their respective Web sites as well as on e-commerce sites such as eBay or Amazon.
Lockwood admitted that he paid Ross $1,127,190 for unauthorized product key codes and counterfeit product key cards. Lockwood also admitted that he paid $1,574,054 to unidentified persons in the state of Washington for various software items. Lockwood admitted that he obtained approximately 6,165 certificates of authenticity, 4,996 “Lenovo” product key cards and approximately 11,000 unauthorized product key codes.
Under the terms of today’s plea agreement, the government and Annamalai jointly recommend a sentence of time served to trigger his immediate deportation from the United States. Annamalai also must enter into a stipulation of settlement in several civil cases in which the government has seized two residential properties and $212,930 from a bank account.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly; Assistant U.S. Attorney Curt Bohling is responsible for the civil proceedings. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Lake Charles, Louisiana, Man Convicted in Nigerian Mail Fraud SchemeRead the Press Release
TYLER, Texas – A 38-year-old Lake Charles, Louisiana, man has been convicted in a Nigerian mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Heesham Broussard, also known as Sudan, was found guilty by a jury for conspiracy to commit mail fraud, two counts of mail fraud, and two counts of aggravated identity theft following a four day trial before U.S. District Judge Michael H. Schneider.
According to information presented in court, Broussard participated in a Nigerian-based mail fraud scheme that distributed counterfeit postal money orders and checks. The scheme targeted victims throughout the United States. Victims of the scheme were led to believe that they were working as mystery shoppers. Broussard served as a re-shipper or dispatcher of counterfeit postal money orders and checks. As part of the scheme, he sent packages to more than 600 intended victims and sent counterfeit items bearing a face value of more than $1 million. Broussard was indicted by a federal grand jury on Jan. 22, 2014.
Broussard’s co-conspirators, Olumide Lalemi, also known as Paul Smith, the Nigerian organizer of the scheme, and Victoria Williams, a re-shipper, have pleaded guilty to conspiracy to commit mail fraud. Lalemi and Williams will appear before Judge Schneider for sentencing. At sentencing, both defendants face up to 20 years in federal prison.
Broussard faces up to 20 years in federal prison for the conspiracy conviction, 20 years for each mail fraud conviction, and two years for each aggravated identity theft conviction. A sentencing date has not been sent.
The case was investigated by Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), and U.S. Customs and Border Protection (CBP). This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and D. Ryan Locker.
Any individuals with knowledge of these or other mail fraud violations are encouraged to contact the Homeland Security Investigations Tip Line at 866-DHS-2-ICE (866-347-2423) or the U.S. Postal Inspection Service Tip Line at 877-876-2455.
Lackawanna Man Arrested, Charged with Attempting to Provide Support to IsilRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Arafat M. Nagi, 44, of Lackawanna, NY, was arrested and charged by criminal complaint with attempting to provide material support and resources, namely, personnel, to a foreign terrorist organization, ISIL. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.“Our continuing fight against international terrorism today returns to Western New York,” said U.S. Attorney Hochul. “As alleged, Arafat Nagi pledged allegiance to the Islamic State and the leader of this terrorist organization. After buying military combat gear, he traveled twice to Turkey in an effort to help the group. Thanks to the combined efforts of law enforcement and community members, this defendant is no longer capable of achieving his goal of joining the most despicable group of our time.”
“The FBI has a responsibility to ensure that our law enforcement and intelligence agencies are positioned to identify existing or emerging threats,” said FBI Special Agent in Charge Brian Boetig. “Joint Terrorism Task Forces (JTTF) serve as the national platforms for deterring, detecting, and disrupting terrorist machinations. The JTTF in Buffalo relies on community engagement to gain perspectives on radicalization and to deter recruitment and the spread of radicalization messages. We continue to call upon people to contact law enforcement if they know of someone who has been influenced by ISIL rhetoric on social media – powerful propaganda that calls for followers to commit quick and unpredictable violent acts.”
Assistant U.S. Attorneys Timothy C. Lynch and Joseph M. Tripi, who are handling the case, stated that according to the complaint, on August 28, 2014, a community member advised the Federal Bureau of Investigation that the defendant spoke about violent jihad to various people in the Lackawanna community and it was common for Nagi to get into verbal complaints over his jihadi beliefs.
Further investigation determined that the defendant pledged allegiance to ISIL and the leader of the terrorist group, Abu Bakr al Bagdadi. Investigators learned that the defendant traveled to Turkey on two occasions, in October, 2012 and July 2014 with the intention to meet with members of the group. Evidence revealed that prior to this trip, the defendant purchased a large number of military combat items, including a tactical vest, army combat shirt, body armor, Shahada Flag, combat boots, backpack, burn kit, a hunting knife, machete and night vision goggles.
During follow up interviews in December, 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen which he blamed on the United States; pledged an oath to ISIL leaders; expressed agreement with ISIL tactics, including the killing of innocent men, women and children; and planned to travel to Yemen and Turkey again soon.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation Joint Terrorism task Force which includes the Amherst Police Department, the Buffalo Police Department, the U.S. Department of State, the Federal Protective Service, Immigration and Customs Enforcement, Homeland Security Investigations, the Internal Revenue Service, the New York State Police, the Niagara County Sheriff’s Office, the Niagara Falls Police Department, U.S. Border Patrol, U.S. Customs and Border Protection, and U.S. Customs and Border Protection/Air and Marine Branch. Additional assistance was provided by the New York State Attorney General’s Office.
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.
Justice Department Settles Lawsuit Alleging Disability Discrimination in Housing by the City of Petal, MississippiRead the Press Release
The Justice Department today announced an agreement with the city of Petal, Mississippi, to resolve allegations of discrimination against persons with intellectual disabilities who sought to live in supported housing in one of the city’s residential neighborhoods.
The lawsuit, filed in U.S. District Court for the Southern District of Mississippi, alleges that the city violated the Fair Housing Act and the Americans with Disabilities Act when it took actions to prevent three men with disabilities from residing together in a rented home on the same terms as non-disabled persons; under the city’s zoning code, up to four unrelated persons may reside together in a home in a residential neighborhood. The home at issue is run by Brandi’s Hope Community Services, LLC, a Magee, Mississippi-based company that provides around-the-clock support for residents.
Under the terms of the agreement, approved by the court on July 29, 2015, the city will pay $25,000 to Brandi’s Hope in monetary damages and $25,000 to the United States as a civil penalty. The city will take other remedial measures, including implementing the comprehensive reasonable accommodation policy and zoning code amendments it enacted as part of the settlement. The settlement also resolves a separate lawsuit against the city brought by Brandi’s Hope.
“Persons with disabilities have the right to live in and enjoy their communities, just as all families do throughout our nation,” said Principal Deputy Assistant Attorney General Vanita Gupta, the head of the Civil Rights Division. “The Justice Department will continue to eliminate discriminatory barriers that impede these individuals from doing so. We commend the city of Petal for working cooperatively with the department to reach this resolution.”
“This office is pleased that the city of Petal will now implement comprehensive reasonable accommodation policies and zoning code amendments that will allow persons with disabilities to enjoy the same right to live in the community as others,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. “These changes will positively impact the lives of many others with disabilities in the future.”
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743, or by e-mail at [email protected], or contact the Department of Housing and Urban Development at 1-800-669-9777.
Justice Department Reaches Agreement with Robeson County, North Carolina, to Increase AccessibilityRead the Press Release
As part of the Justice Department’s celebration marking the 25th anniversary of the American with Disabilities Act this year, the department announced today the signing of a settlement agreement with Robeson County, North Carolina, to improve access to all aspects of civic life for persons with disabilities. The agreement is part of Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
As part of the PCA initiative, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify what is needed to comply with the ADA. The agreements address the steps a community must take to improve access. With the signing of this agreement, the department has entered into 11 PCA agreements this year alone, and 219 agreements since the initiative began.
The agreement will benefit the residents of the geographically largest county in the state which is also one of its most diverse. With a population of 134,760, that is 39.5 percent Native American and 24.7 percent African American, the county also had 31.7 percent of its residents living below the poverty level. Under the agreement announced today, Robeson County will remove barriers to accessibility in buildings, such as government office buildings providing services to its citizens, libraries, recreation centers, community centers, polling places, parks, courthouses, police or sheriff offices, and detention facilities. The agreement also requires the county to:
- Make physical modifications to facilities so that parking, routes to parks and playgrounds, routes into the buildings, entrances, public telephones, restrooms, service counters and drinking fountains are accessible to people with disabilities, and that assembly areas have the required wheelchair and companion seating;
- Post, publish and distribute a notice to inform members of the public of the provisions of Title II and their applicability to the county’s programs, services and activities;
- Operate each county program, service or activity so that it is readily accessible to people with disabilities, and to deliver county services, programs and activities in alternate ways;
- Train staff in using their state relay service for telephone communications;
- Provide an accessible voting program for people who use wheelchairs and for people who are blind or have low vision;
- Establish a policy for the Robeson County Sheriff’s Office when its officers are in contact with people who are deaf or hard of hearing;
- Provide information for interested persons with disabilities concerning the existence and location of the county’s accessible services, activities and programs; and
- Establish, implement and post online a policy that their web pages be accessible, create a process for implementation and ensure that all new and modified web pages are accessible.
“We commend Robeson County officials for their cooperation in reaching this settlement, which will remove barriers so that people with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “As we celebrate the 25th anniversary of this major civil rights law, the department renews its commitment to work with state and local governments across the country, in rural and in urban communities, to ensure that all citizens with disabilities attain equal access to all of their programs, activities and services.”
“Protecting access for individuals with disabilities will continue to be a priority for this district,” said U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
For more information about the ADA, today’s agreement, the Project Civic Access initiative, individuals may access the ADA web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Reaches Agreement with Robeson County, North Carolina, to Increase AccessibilityRead the Press Release
WASHINGTON – As part of the Justice Department’s celebration marking the 25th anniversary of the American with Disabilities Act this year, the department announced today the signing of a settlement agreement with Robeson County, North Carolina, to improve access to all aspects of civic life for persons with disabilities. The agreement is part of Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
As part of the PCA initiative, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify what is needed to comply with the ADA. The agreements address the steps a community must take to improve access. With the signing of this agreement, the department has entered into 11 PCA agreements this year alone, and 219 agreements since the initiative began.
The agreement will benefit the residents of the geographically largest county in the state which is also one of its most diverse. With a population of 134,760, that is 39.5 percent Native American and 24.7 percent African American, the county also had 31.7 percent of its residents living below the poverty level. Under the agreement announced today, Robeson County will remove barriers to accessibility in buildings, such as government office buildings providing services to its citizens, libraries, recreation centers, community centers, polling places, parks, courthouses, police or sheriff offices, and detention facilities. The agreement also requires the county to:
- Make physical modifications to facilities so that parking, routes to parks and playgrounds, routes into the buildings, entrances, public telephones, restrooms, service counters and drinking fountains are accessible to people with disabilities, and that assembly areas have the required wheelchair and companion seating;
- Post, publish and distribute a notice to inform members of the public of the provisions of Title II and their applicability to the county’s programs, services and activities;
- Operate each county program, service or activity so that it is readily accessible to people with disabilities, and to deliver county services, programs and activities in alternate ways;
- Train staff in using their state relay service for telephone communications;
- Provide an accessible voting program for people who use wheelchairs and for people who are blind or have low vision;
- Establish a policy for the Robeson County Sheriff’s Office when its officers are in contact with people who are deaf or hard of hearing;
- Provide information for interested persons with disabilities concerning the existence and location of the county’s accessible services, activities and programs; and
- Establish, implement and post online a policy that their web pages be accessible, create a process for implementation and ensure that all new and modified web pages are accessible.
“We commend Robeson County officials for their cooperation in reaching this settlement, which will remove barriers so that people with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “As we celebrate the 25th anniversary of this major civil rights law, the department renews its commitment to work with state and local governments across the country, in rural and in urban communities, to ensure that all citizens with disabilities attain equal access to all of their programs, activities and services.”
“Protecting access for individuals with disabilities will continue to be a priority for this district,” said U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
Jury Finds Southwest Arkansas Man Guilty on Federal Firearms ChargeRead the Press Release
Texarkana, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Bobby Joe Hampton, age 28 of Texarkana, was found guilty of being a Felon in Possession of a Firearm following a two day jury trial in Texarkana. The Honorable Judge Susan O. Hickey presided over the trial in the United States District Court in Texarkana. Hampton was previously indicted on the charge by a federal grand jury on March 19, 2014.
U.S. Attorney Eldridge commented, “This defendant, a convicted felon, was in possession of a firearm and was physically assaulting another person when he was taken into custody. Every day, the lives of our police officers and ordinary citizens are jeopardized by this dangerous criminal activity. We will continue to investigate and prosecute these cases to hopefully prevent violence in Southern Arkansas and throughout the Western District of Arkansas.”
According to evidence presented at trial, on February 3, 2014, the Texarkana Police Department received a 9-1-1 call regarding a disturbance at a residence in Texarkana, Arkansas. As the officer responded to the address and identified himself, he witnessed the defendant, Bobby Hampton, physically assaulting a female victim. As the officer was attempting to take Hampton into custody, he heard two females yelling that Hampton had a gun in his jacket pocket. Once the officer had placed him into custody, he located a Rossi .38 caliber revolver bearing serial number TK72314 in the pocket of the jacket. Hampton later admitted to possessing the firearm which was found to have been manufactured outside the state of Arkansas and had previously traveled in interstate commerce; he is prohibited from possessing a firearm after having been convicted of a felony offense carrying a term of imprisonment of more than one year.
The defendant will be sentenced at a later date, and faces a maximum sentence of 10 years imprisonment, a maximum fine of $250,000 fine, or both. If the defendant has three or more felony convictions for a violent and/or serious drug offense, then the defendant faces a minimum sentence of 15 years and a maximum of life imprisonment, not more than $250,000 fine, or both. The sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violations. The sentence will not exceed the statutory maximum for each count in this case, and in most cases will be less than the maximum.
This case was investigated by the Texarkana, Arkansas Police Department. Assistant United States Attorney’s David Harris and Kim Davis prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Jersey City, New Jersey, Pediatrician Sentenced to 21 Months in Prison for Billing Medicaid or Bogus TreatmentsRead the Press Release
TRENTON, N.J. – A licensed pediatrician practicing in Jersey City, New Jersey, was sentenced today to 21 months in prison for fraudulently billing Medicaid for more than 1,000 wound repair procedures that were never performed, U.S. Attorney Paul J. Fishman announced.
Badawy M. Badawy, 52, of Bayonne, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count One of an indictment charging him with health care fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Badawy owned and operated Sinai Medical Center of Jersey City LLC, a medical practice focusing on pediatric and family medicine. From January 2004 through December 2008, Badawy submitted thousands of claims to Medicaid for wound repair procedures related to the repair of superficial wounds over 30 centimeters in length on a patient’s face, ears, eyelids, nose or lips as well as the repair of previously closed wounds. Badawy claimed to have performed these treatments on his patients, most of whom were children.
During his plea hearing Badawy admitted that he regularly submitted claims for procedures that were never performed. As a result of his false claims, Badawy received $196,911 in Medicaid payments.
In addition to the prison term, Judge Thompson sentenced Badawy to serve three years of supervised release and fined him $5,000. Badawy must also pay restitution of $196,911.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s sentencing.
The government is represented by Danielle Alfonzo Walsman and Michael H. Robertson of the U.S. Attorney’s Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Peter R. Willis Esq., Jersey City
Iowa Falls Man Detained Without BondRead the Press Release
An Iowa Falls man was ordered detained without bond yesterday in federal court in Cedar Rapids, pending further proceedings in his criminal case.
Andre Michael Lafontaine, III, 35, from Iowa Falls, Iowa, was charged in a criminal complaint filed last week in United States District Court in Cedar Rapids, with transmitting in interstate commerce, a threat to injure another person. According to the criminal complaint, Lafontaine left a voice mail message with the Department of Justice in Washington, D.C., expressing his dissatisfaction with the lack of action on previous complaints made by Lafontaine to the FBI and, threatening, that if the complaints were “not satisfied or investigated properly, these judges in Eldora are gonna get their (expletive deleted) throats cut . . .”
At a detention hearing held in Cedar Rapids yesterday, Chief United States Magistrate Judge Jon S. Scoles ordered Lafontaine held without bond pending further proceedings in the case. Judge Scoles was concerned that Lafontaine’s recent statement was not an isolated event. The court cited evidence presented at the hearing showing Lafontaine had previously made statements to a federal court employee that were construed as potentially threatening, and had sent a letter to the FBI expressing concerns about the FBI’s consideration of Lafontaine’s complaints, in which Lafontaine stated, “I feel since nothing has been done about any of these situations for many years now I may have to take a life just to defendant myself, which I no longer will hesitate to do . . .”
Judge Scoles also noted a document seized from Lafontaine’s residence appeared to contain a list of complaints Lafontaine harbored against numerous individuals or organizations, most of whom he alleged had “obstructed justice,” or participated in a “conspiracy” against him. Scoles cited the concerns of family members that Lafontaine was suffering from an apparent mental disorder, and noted it appeared he was becoming more distressed.
The government advised the court it would be requesting the court to order defendant undergo a psychological evaluation at a future date.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Protective Service, the Federal Bureau of Investigation, and the Iowa Falls Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-mj-232.
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Investment Advisor Pleads Guilty in Connection with Rothstein CaseRead the Press Release
An investor advisor pled guilty this afternoon for his involvement in the Rothstein wire fraud conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Michael Szafranski, 37, of Surfside, pled guilty before U. S. District Court Judge William P. Dimitrouleas to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At sentencing, scheduled for October 21, 2015 at 1:15 p.m., Szafranski faces a maximum statutory sentence of five years in prison.
According to court records, including a stipulated statement of facts, it was discovered in 2009 that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. Szafranski, who was a registered investment advisor, conspired with Rothstein to induce certain persons into investing money in the confidential settlements through material misstatements and material omissions made by defendant Szafranski. Specifically, Szafranski secretly received compensation from Rothstein and RRA while simultaneously employed by certain investors as a purportedly independent verifier of the legitimacy of the settlement transactions.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Independence, KCK Men Indicted for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man and a Kansas City, Kan., man were indicted by a federal grand jury today for producing child pornography.
Kenneth R. Davis, 35, of Independence, and Randy Mull, 36, of Kansas City, Kan., were charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Davis and Mull, aiding and abetting each other, used two minors (identified in the indictment as “John Doe #1” and “John Doe #2) to produce child pornography on April 2 and July 15, 2010.
The federal indictment also charges Davis with one count of receiving child pornography over the Internet and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Independence, Mo., Police Department and the Kansas City, Kan., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Illegal Aliens Sentenced for Drug and Immigration ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN SANTOS PERDOMO, age 33, DELSSY ADRIANA BANEGAS-ZOSA, age 31, and OLVIN SANTOS PERDOMO, age 26, all citizens of Honduras, were sentenced today for conspiracy to possess with intent to distribute cocaine and, in the case of BANEGAS-ZOSA and MARVIN SANTOS PERDOMO, reentry of an illegal alien.
On April 22, 2015, MARVIN SANTOS PERDOMO, DELSSY ADRIANA BANEGAS-ZOSA and OLVIN SANTOS PERDOMO pled guilty to conspiring to distribute and distribution of cocaine hydrochloride, a Schedule II controlled drug substance, and MARVIN SANTOS PERDOMO and DELSSY ADRIANA BANEGAS-ZOSA admitted to being illegal aliens found in the United States after being previously deported from the United States.
U.S. District Judge Stanwood R. Duval sentenced MARVIN SANTOS PERDOMO and OLVIN SANTOS PERDOMO to 24 months incarceration, to be followed by 3 years of supervised release. Following their incarceration, both defendants will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings. DELSSY ADRIANA BANEGAS-ZOSA was sentenced to time served, to be followed by 3 years of supervised release. BANEGAS-ZOSA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and Jefferson Parish Sherriff’s Office in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
Hanover Business Owner Sentenced to Prison for Mortgage and Tax Fraud SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Luis R. Valladares, age 52, of Hanover, Maryland, today to 18 months in prison, followed by three years of supervised release, for the fraud schemes. Judge Quarles ordered Valladares to pay restitution of $487,000, the total amount of the victim’s losses in the mortgage fraud scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Valladares owned and operated two businesses, Amazing Cleaning and Amazing Contractors, which provided janitorial services and drywall repair to vacated commercial and residential apartments.
According to his plea agreement, in late 2006, Valladares applied for a loan to purchase a house in Miramar, Florida. Valladares provided fake lease documents with forged signatures of one of his employees and the employee’s relatives, and three fake money orders to make it appear that he was collecting rent. After obtaining a mortgage loan for $484,900, Valladares only made a few payments on the loan. The home was foreclosed upon, resulting in a loss of approximately $250,000.
In late 2007, Valladares applied for two separate loans totaling $767,000 to buy a house in Hanover, Maryland. At the closing, Valladares omitted the Florida house as a property he owned; and reported owning a rental property in Burtonsville, Maryland, which he didn’t own or receive rental income from. In October 2014, the Maryland house was sold in a short sale for approximately $530,000, causing a loss of approximately $237,000. The total loss as a result of the mortgage fraud scheme was $487,000.
Beginning in approximately 2003, Vallardares also engaged in tax fraud by substantially understating income on business and personal tax returns. He diverted about $346,951 in third-party checks payable to the businesses to his personal accounts, and did not provide tax return preparers with information pertaining to these transactions. As a result, income deposited into his personal account was not reported either on business or personal tax returns.
In 2005 and 2006, Vallardares also engaged in tax fraud by writing a series of company checks to his brother and his brother’s business, ostensibly for business expenses. For nine of these checks totaling $152,000, his brother then endorsed the checks back over to Valladares or his then-wife, who deposited the checks into their personal bank account. They claimed these checks as business expenses on their tax returns.
Valladardes wired approximately $618,500 from a personal account to an account he controlled in Ecuador, and falsely claimed to IRS investigators that he was building apartment buildings in Ecuador as an investment.
The tax loss resulting from the tax fraud schemes totaled $292,277, for which Valladares remains liable.
After the IRS investigation had begun, Valladares left the United States for Ecuador in September 2011. Charges against him were filed in federal court in Maryland in October 2011. Valladares was arrested in September 2014 when he arrived in Aruba for his honeymoon, and he was returned to the United States for prosecution.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Sean R. Delaney, who prosecuted the case.
Gulf Coast Asphalt Company Enters Guilty Plea to Violations of the Oil Pollution Act and the Migratory Bird Treaty Act for A 2011 Oil Spill That Went into the Mobile RiverRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that representatives for Gulf Coast Asphalt Company, LLC appeared in U.S. District Court for the Southern District of Alabama today. Gulf Coast Asphalt Company, LLC entered a plea to two counts of an information charging violations of the Oil Pollution Act and Migratory Bird Treaty Act. These charges relate to an oil spill that occurred on September 1, 2011, and ultimately ended up in the Mobile River.
The information charges that the discharge of oil was caused by an over-fill of oil during a tank to tank transfer when employees pumped oil into the receiving tank under pressure. Because employees miscalculated the tank volume of the receiving tank prior to the transfer and engaged in the transfer of oil without employing proper procedures, the tank ruptured and oil was released into a secondary containment area and ultimately into the Mobile River. The information goes on to charge that because of this discharge of oil the Mobile River was closed to ship and vessel traffic by the United States Coast Guard and fish and wildlife were negatively impacted.
As part of the plea agreement Gulf Coast Asphalt Company, LLC has agreed to pay a total of one million dollars in criminal penalties. $667,000.00 will be paid in a criminal fee. The remaining penalty in the amount of $333,000.00 will be in the form of an organizational community service payment to the National Fish and Wildlife Foundation. The community service payment shall be applied by the National Fish and Wildlife Foundation to fund projects for the preservation and restoration of waterways and marine wildlife in and around the Southern District of Alabama.
Gulf Coast Asphalt Company, LLC also agreed to pay restitution in the amount of $292,000.00 to the United States Coast Guard and $75,000.00 to the Alabama Department of Conservation and Natural Resources, Wildlife and Freshwater Fisheries Division.
These penalties and restitution are collected above the statutory requirement under the Oil Pollution Act that the responsible party for the oil spill pays the expense of the environmental cleanup and environmental remediation.
The United States Attorney, Kenyen R. Brown stated, "this settlement is a fair and just resolution to this matter." Brown is pleased that the company agreed to pay an amount to the National Fish and Wildlife Foundation that will fund environmental projects here in the Southern District of Alabama. "This outcome could not be achieved without the diligent investigation and efforts of the U.S. Environmental Protection Agency (EPA) and the U.S. Fish and Wildlife Service (Service)," stated Brown.
"America’s environmental laws are designed to protect clean and safe water sources," said Andy Castro, Acting Special Agent in Charge of EPA’s criminal enforcement program in Alabama. "When operators fail to pay attention to required safety procedures and equipment, they not only harm natural resources and communities, they break the law. Given the nature of the violations, it is appropriate that the defendant will pay one-third of a million dollars in community service payment to the National Fish and Wildlife Foundation. Companies that damage the environment either through negligence or to save money can expect to face prosecution by EPA and its partner agencies."
"South Alabama has one of the most diverse ecological systems in the Southeast, and migratory birds are a key part of this ecosystem. In recent years, migratory bird populations in coastal Alabama have been severely affected by oil spills. This spill is yet another example of how human error has adversely affected migratory bird populations. The Service will continue to be vigilant in the prosecution of corporations and individuals responsible for harming migratory birds," said Luis Santiago, Special Agent in Charge in the Service’s Southeast Region.
"I am impressed with the collaborative efforts demonstrated during this investigation between Service and EPA law enforcement programs. I feel the cooperation displayed during this investigation is largely due to the relationships generated during quarterly Environmental Task Force meetings held by the U.S. Attorney’s Office in the Southern District of Alabama. These meetings allow state and federal agencies to meet and discuss environmental investigations and work effectively as a team," said Santiago.
This case was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division and U.S. Fish and Wildlife Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Glocester Resident Detained for Allegedly Manufacturing MethamphetamineRead the Press Release
PROVIDENCE, R.I. – Kevin Lewis, 40, of Glocester, R.I., was ordered detained in federal custody following an initial appearance in federal court in Providence today on charges of manufacturing and possessing methamphetamine (meth) with the intent to distribute, announced United States Attorney Peter F. Neronha, Glocester Police Chief Joseph S. Delprete and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
On Tuesday, a Glocester patrol officer stopped a vehicle being driven by Lewis, knowing that an active arrest warrant for Lewis had been issued by the Rhode Island Family Court. During the traffic stop, the officer saw on the back seat of the vehicle materials he recognized as items allegedly used in the production of meth. The officer also detected a strong odor of acetone, which is associated with the production of meth.
After placing Lewis in custody on the arrest warrant, police requsted of Lewis’ wife, who was a passenger in the vehicle, that she drive the vehicle to the Glocester Police Department while under police supervision. A subsequent search of Lewis’ vehicle by members of the Glocester Police Department, the R.I. DEA Drug Task Force and the DEA Clandestine Laboratory Tactical Team allegedly resulted in the discovery and seizure from the trunk of the vehicle a batch of meth in the process of being produced. They also seized three hydrochloric acid gas generators used in the production of meth, a completed one-pot meth cook and additional items used in the production of meth.
Glocester Police and members of the DEA Clandestine Laboratory Tactical Team also conducted a court authorized search of a vehicle parked behind Lewis’ Glocester residence where they allegedly discovered numerous items used in the manufacture of meth.
Lewis is charged by way of a federal criminal complaint with one count each of manufacturing methamphetamine and possession with intent to distribute methamphetamine. A criminal complaint is merely an allegation 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.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Former Tribal Police Chief Pleads Guilty to Theft of Tribal FundsRead the Press Release
The former Police Chief of the Swinomish Tribe pleaded guilty today in U.S. District Court in Seattle to theft of tribal funds, announced United States Attorney Annette L. Hayes. THOMAS J. SCHLICKER, 57, of Stanwood, Washington, served as the Swinomish Police Chief from 1997 until September 2014, when his employment was terminated. SCHLICKER admits he stole more than $30,000 that belonged to the tribe. Sentencing before U.S. District Judge John C. Coughenour is scheduled for November 10, 2015
According to the plea agreement, between 2008 and 2014 SCHLICKER set up a secret bank account in the name of the Swinomish Police Department, without the knowledge of the tribal accounting department. SCHLICKER then deposited checks made out to the tribal police into the secret account and withdrew the proceeds in cash, which he then used for his own purposes. SCHLICKER also used the Tribe’s Chevron/Texaco credit card to purchase gas for his and his family members’ personal vehicles. The total loss to the Swinomish Tribe is $33,622.
Theft of tribal funds is punishable by up to five years in prison and a $250,000 fine.
The case was investigated by the FBI and the Washington State Patrol. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Ye-Ting Woo.
Former Sierra Army Depot Employee Sentenced for Stealing Military EquipmentRead the Press Release
SACRAMENTO, Calif. — Tony Herrin, 36, resident of Reno, Nevada, was sentenced today by United States District Judge Kimberly J. Mueller to two years and nine months in prison and restitution of $411,333 for theft of government property, United States Attorney Benjamin B. Wagner announced.
According to court documents, Herrin worked as a civilian employee at the Sierra Army Depot (SIAD) in Herlong. As part of his job responsibilities, Herrin received, catalogued, and inventoried military equipment returned from Iraq and Afghanistan. Herrin worked in the same building as co-worker Devon Biggs, who pleaded guilty and was sentenced to 16 months in prison in a related case. While working at SIAD, Herrin and Biggs stole numerous items of sophisticated military equipment. Herrin played a role in stealing 10 Taser devices, three Vectronix target acquisition systems (total value $221,787), six military grade flashlights (total value $11,267), and 25 thermal imaging sights. The total value of all these items is approximately $411,000. On at least two occasions, Herrin and Biggs met with potential buyers for the military equipment.
This case was the product of investigation by the Law Enforcement Division of the United States Army, Naval Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Jean Hobler and Christiaan Highsmith prosecuted the case.
Former Senior Information Systems Engineer at National Law Firm Sentenced in Manhattan Federal Court to 24 Months in Prison for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DIMITRY BRAVERMAN, a former senior information systems engineer at a prominent national law firm, was sentenced to 24 months in prison for insider trading. Specifically, BRAVERMAN repeatedly used material nonpublic information concerning planned merger and acquisition activity of at least eight clients of the law firm to acquire stocks and options, resulting in profits of more than $300,000. BRAVERMAN was originally charged in September 2014, and he was sentenced today by the Honorable Paul A. Engelmayer, United States District Judge.
U.S. Attorney Preet Bharara said: “Taking advantage of confidential, market-moving information that he got from his work at a major law firm, Dimitry Braverman made more than $300,000 in ill-gotten gains. Braverman’s sentencing today concludes yet another illegal insider trading scheme brought to light by the efforts of the Federal Bureau of Investigation and the Securities and Exchange Commission, working closely with securities prosecutors in my office.”
According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least in or about September 2010 through December 2013, BRAVERMAN was engaged in an insider trading scheme. BRAVERMAN, who was a senior information systems engineer at a national, full-service law firm, had access to financial and billing databases of the firm, including information about, among other things, the law firm’s clients’ potential merger and acquisition activity, as well as information about the identities of the other parties to the potential deals.
Between about 2010 and 2011, BRAVERMAN engaged in at least four trades that were based on inside information concerning potential mergers and acquisition activity of clients of the law firm. In April 2011, however, BRAVERMAN closed out the last of these trades on the same day that another employee of the law firm, Matthew Kluger, was arrested on separate insider trading charges. In November 2012, BRAVERMAN opened a new brokerage account in the name of a relative living in Russia, and continued trading on the basis of inside information he obtained from the law firm. Specifically, between November 2012 and December 2013, BRAVERMAN engaged in at least four additional trades based on inside information. In total, BRAVERMAN made more than approximately $300,000 in profits from the trades between 2010 and December 2013.
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BRAVERMAN, 42, of San Mateo, California, pled guilty to one count of securities fraud on November 13, 2014. BRAVERMAN was also sentenced to two years of supervised release, with 100 hours of community service.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Amy Lester is in charge of the prosecution.
Former RMV Clerk Pleads Guilty to Participating in False RMV Document ConspiracyRead the Press Release
BOSTON – A Boston man, who had worked as a Massachusetts Registry of Motor Vehicles (RMV) clerk, pleaded guilty today in U.S. District Court in Boston to conspiring to produce false RMV identification documents.
Rommer Valdez, 38, pleaded guilty to one count of conspiring to produce a false identification document affecting interstate and foreign commerce. Valdez, who was charged in May 2015, is scheduled to be sentenced by U.S. District Court Judge William G. Young on Oct. 27, 2015.
The RMV, among other responsibilities, issues identification documents such as drivers’ licenses, learners’ permits, and state identification cards. To prevent people from obtaining a fraudulent identification document, the RMV has systems to verify whether applicants’ identity information is accurate. Valdez, who worked as a clerk at the RMV office in Watertown, was responsible for verifying that applicants’ identity documents were accurate, valid, and sufficient.
From approximately December 2010 through December 2012, Valdez participated in a conspiracy to help the conspiracy’s customers obtain authentic RMV-issued identification documents that bore their own pictures but other people’s identity information. Other co-conspirators obtained real identification documents for customers to give the RMV as proof of (false) identity. Before sending certain customers to the RMV with this proof, the co-conspirators sent Valdez the names, Social Security numbers, and dates of birth for these identities and asked him to verify whether this information would pass the RMV’s checks. Valdez checked the information and told the co-conspirators whether it passed or not. If the information passed, the co-conspirators provided the documents to a customer who presented them to the RMV (although not necessarily at Valdez’s station) to obtain an identification document in that false identity.
On other occasions, the co-conspirators sent customers with false identification documents directly to Valdez at the RMV. When Valdez spotted such a customer, he signaled the customer to approach and submit his application and proof of (false) identity. Valdez then processed the application, knowing that the proof was fraudulent. He also let the customer or someone else helping the customer take whatever tests the RMV required, all using the false identity. Valdez knew that all these actions were illegal.
Valdez checked identity information for the conspiracy and knowingly accepted false proof of identity from customers multiple times, for multiple bribes.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, whichever is greatest, and forfeiture. 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; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Scott L. Garland, formerly of Ortiz’s Cybercrime Unit and currently with Ortiz’s Anti-Terrorism and National Security Unit.
Former Philadelphia Police Officer Sentenced for Robbing Drug DealersRead the Press Release
PHILADELPHIA – Former Philadelphia Police Officer Jeffrey Walker, 47, of Philadelphia, was sentenced today to 42 months in prison for a scheme in which he planned to rob a drug dealer while on official duty. Walker pleaded guilty, on February 24, 2014, to attempted robbery which interferes with interstate commerce and carrying a firearm during and in relation to a crime of violence. In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered three years of supervised release, a $5,000 fine and a $200 special assessment.
Walker told a cooperating witness (CW) that he wanted the CW to help him identify a drug dealer so that Walker could conduct a car stop for suspected drug violations or plant drugs in the car. On May 21, 2013, the CW informed Walker of a car parked outside of a bar on West Girard Avenue. Walker drove up to the car, placed drugs inside the car, and then followed the driver when that person left the bar. When the car was pulled over, Walker took the key to the driver’s home. Walker and the CW went to the driver’s home. When they exited the home, Walker was arrested and was in possession of $15,000 that he had taken from the house.
The case was investigated by the FBI and Philadelphia Police Department. It was prosecuted by Assistant United States Attorneys Anthony Wzorek and Maureen McCartney.
Former Dartmouth Selectman Sentenced to 70 Months in Prison for EmbezzlementRead the Press Release
BOSTON – A former Dartmouth Selectman and former State Representative was sentenced today to 70 months in prison for embezzling funds from his bus company, which was subsidized with taxpayer funds, to bankroll his personal farm.
John George, Jr., 68, was sentenced by U.S. District Court Judge Denise J. Casper to 70 months in prison and three years of supervised release, and ordered to pay $688,772 in restitution to the Southeastern Regional Transit Authority. In April 16, 2015, George was convicted after a jury trial of one count of conspiracy and one count of embezzlement.
The defendant owned Union Street Bus Company (USBC), a New Bedford-based company that operated public buses. During the same period, George operated John George Farms (JG Farm), a large produce farm based in Dartmouth. From approximately 1991 to 2011, USBC was awarded the Southeastern Regional Transit Authority (SRTA) contract to operate the SRTA public bus system that served a region that included New Bedford, Fall River, and several other neighboring towns.
The evidence at trial showed that, while USBC had the SRTA contract, George conspired with certain individuals to have various USBC employees work at JG Farm during their assigned USBC work hours. Such farm work included plowing, loading produce, and operating a produce stand at JG Farm, all during USBC business hours. As part of the conspiracy to commit an offense against the United States, George deployed USBC workers to JG Farm to repair George’s farm equipment, used USBC equipment and labor to provide personal out-of-state roadside assistance, and inflated his final yearly salary from $75,000 to $275,000 in an attempt to fraudulently boost his SRTA pension.
United States Attorney Carmen M. Ortiz and Theodore L. Doherty, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Former Chippewa Cree Tribal Chairman Chance Houle Sentenced to PrisonRead the Press Release
GREAT FALLS – Former Chippewa Cree Tribal Chairman John Chance Houle, 51, of Box Elder, was sentenced to 68 months in prison, $646,456 in restitution, three years of supervised release to follow his incarceration, and $400 in special assessments. Houle appeared before U.S. District Judge Brian Morris in Great Falls to receive the sentence.
In December of last year, Houle pleaded guilty to accepting kick-back payments from Hunter Burns Construction and Dr. James Eastlick in exchange for facilitating the award and payment on tribal contracts. In another indictment Houle pleaded guilty to embezzling hundreds of thousands of dollars from the Chippewa Cree Rodeo Association and obstructing a federal grand jury investigation. In a third indictment, Houle pleaded guilty to one of four counts of tax evasion.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division. Parole has been abolished in the federal system. A federally convicted defendant will serve the entirety of the sentence imposed less a small amount of “good time” credit earned while incarcerated.
Additional details can be found at: http://www.justice.gov/usao-mt/pr/former-chippewa-cree-tribal-chairman-pleads-guilty-bribery-embezzlement-obstruction
Folsom Naval Reservist Is Sentenced After Pleading Guilty to Unauthorized Removal and Retention of Classified MaterialsRead the Press Release
SACRAMENTO, Calif. — Bryan H. Nishimura, 50, of Folsom, pleaded guilty today to unauthorized removal and retention of classified materials, United States Attorney Benjamin B. Wagner announced.
U.S. Magistrate Judge Kendall J. Newman immediately sentenced Nishimura to two years of probation, a $7,500 fine, and forfeiture of personal media containing classified materials. Nishimura was further ordered to surrender any currently held security clearance and to never again seek such a clearance.
According to court documents, Nishimura was a Naval reservist deployed in Afghanistan in 2007 and 2008. In his role as a Regional Engineer for the U.S. military in Afghanistan, Nishimura had access to classified briefings and digital records that could only be retained and viewed on authorized government computers. Nishimura, however, caused the materials to be downloaded and stored on his personal, unclassified electronic devices and storage media. He carried such classified materials on his unauthorized media when he traveled off-base in Afghanistan and, ultimately, carried those materials back to the United States at the end of his deployment. In the United States, Nishimura continued to maintain the information on unclassified systems in unauthorized locations, and copied the materials onto at least one additional unauthorized and unclassified system.
Nishimura’s actions came to light in early 2012, when he admitted to Naval personnel that he had handled classified materials inappropriately. Nishimura later admitted that, following his statement to Naval personnel, he destroyed a large quantity of classified materials he had maintained in his home. Despite that, when the Federal Bureau of Investigation searched Nishimura’s home in May 2012, agents recovered numerous classified materials in digital and hard copy forms. The investigation did not reveal evidence that Nishimura intended to distribute classified information to unauthorized personnel.
This case was the product of an investigation by the Naval Criminal Investigative Service (NCIS) and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case.
Federal Jury Convicts Washington, D.C. Area Man of Defrauding Montana CharityRead the Press Release
BUTTE – Following a two-day federal trial in Montana, a jury convicted Donald “Ski” Johnson, 48, of Silver Spring, Maryland, of wire fraud. Johnson defrauded Big Brothers Big Sisters of Gallatin County, Montana, by misrepresenting himself as a Grammy-nominated artist soliciting funds for a children’s cancer foundation. In reality, Johnson was never nominated for a Grammy and used money in the foundation’s account for his personal expenses. Chief U.S. District Court Judge Dana L. Christensen presided over the trial. Sentencing is set for November 12, 2015.
At trial, Assistant United States Attorney Chad C. Spraker presented evidence that in May 2012, Johnson contacted a large Montana resort using the alias Kevin Wright. The resort was partnering with Big Brother Big Sisters to put on a charity celebrity golf tournament. “Wright” claimed he was a Sony Records representative and an agent of Grammy-nominated saxophonist Ski Johnson. He also claimed that Johnson ran a charity known as the Jazz for Life Foundation. “Wright” stated that Johnson would donate two Grammy tickets to Big Brothers Big Sisters with one half of the proceeds going to Big Brothers Big Sisters and the other half going to Jazz for Life. Grammy tickets may not be transferred or resold, and Grammy tickets provide that tickets obtained in contravention of their terms will not be honored, and their holders shall be deemed trespassers. Big Brothers Big Sisters paid for Johnson and his manager’s travel expenses, lodging, food, and green fees. Big Brothers Big Sisters held the tournament in July 2012 and auctioned the tickets for a winning bid of $6,000. Big Brothers Big Sisters stopped the transaction after learning of Johnson’s true identity.
Assistant U.S. Attorney Chad C. Spraker prosecuted the case, which was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Excelsior Springs Man Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Excelsior Springs, Mo., man who called law enforcement officers to his home for assistance – where he was helping to manufacture methamphetamine – was sentenced in federal court today for his role in a conspiracy to manufacture methamphetamine.
Anthony Trurice Grayson, 31, of Excelsior Springs, was sentenced by U.S. Chief District Judge Greg Kays to 10 years in federal prison without parole. Grayson has been in federal custody since his initial arrest on July 16, 2013.
On March 3, 2015, Grayson was found guilty at trial of participating in a conspiracy to manufacture methamphetamine from July 1 to July 16, 2013, attempting to manufacture methamphetamine, possessing pseudoephedrine to manufacture methamphetamine and maintaining a drug house.
Co-defendants Glenn Allen DiFalco, 52, of Kansas City, Mo., and Clarissa Nelson Cooper, 47, of Harrison, Mo., have pleaded guilty to their roles in the conspiracy. DiFalco was sentenced to seven years and six months in federal prison without parole and Cooper was sentenced to time served.
According to court documents, DiFalco and Cooper were found to be in possession of nearly 80,000 30mg pseudoephedrine pills at the time of their arrest. They admitted that, given the amount of pseudoephedrine seized by law enforcement officers, the conspiracy could have produced approximately three kilograms of pure methamphetamine. Three kilograms of pure methamphetamine would have a street value of more than $100,000.
Grayson contacted the Ray County Sheriff’s Department on July 16, 2013, and told officers he was being threatened by DiFalco. DiFalco and Cooper were homeless at the time and were staying at Grayson’s home for several days. Grayson, who had fled from his residence, told officers that DiFalco had a gun and that he feared for his life. Officers met Grayson about a half-mile from his residence; he gave them permission to enter his house and arrest DiFalco.
As officers were speaking to Grayson, DiFalco and Cooper approached in a Dodge truck. The vehicle abruptly turned and drove away and officers began pursuing them. When DiFalco’s vehicle stopped in a dead-end cul-de-sac, Cooper fled from the vehicle on foot and was chased by officers, who apprehended and arrested her. DiFalco was also arrested.
Officers searched DiFalco’s truck and found an airsoft gun and drug paraphernalia, including glass smoking pipes, syringes and a substance that was suspected to be crystal methamphetamine. DiFalco’s vehicle was so completely filled with debris and clutter that officers couldn’t adequately search it. The significant amount of items in the vehicle impeded law enforcement’s ability to recover and appropriately process the numerous items of drug paraphernalia and what was also suspected to be crystal methamphetamine. Officers therefore had DiFalco’s vehicle towed to a secured lot for further investigation.
Officers returned to Grayson’s home following the vehicle pursuit and observed, in plain view, numerous items of drug paraphernalia commonly used to smoke and manufacture methamphetamine. During a search of Grayson’s residence, officers located coffee filters with iodine and powder residue, a bottle of 100% household lye, small baggies normally used to package drugs, glassware/cookware and Mason jars with residue (which were altered to facilitate methamphetamine manufacturing), tubing, glass smoking pipes, a white crystal-like unknown substance, weighing approximately 215.8 grams (not believed to be a controlled substance but some type of cutting agent), one bag of ground-up Cold Buster pseudoephedrine pills weighing approximately 88.8 grams and several plastic baggies containing methamphetamine, weighing approximately 53.2 grams. Officers also located a suspected explosive device, which was later identified as a “booby-trap” device.
When they searched DiFalco’s vehicle the next day, officers found approximately 80,000 pills of Cold Buster pseudoephedrine hydrochloride. These pills were contained in 91 one-gallon plastic bags. They found three bags containing ground-up pseudoephedrine hydrochloride pills with a total weight of 736 grams. They also found smoking pipes, numerous handwritten recipes for various methods of methamphetamine manufacturing, a butane torch, a bottle of iodine solution and several packs of iodine swabs, a laptop computer and three cell phones.
This case was prosecuted by Assistant U.S. Attorneys Joseph M. Marquez and Jeffrey Q. McCarther. It was investigated by the Drug Enforcement Administration.
District Man Pleads Guilty to Voyeurism and Stalking Charges for Secretly Recording Women at Their ApartmentsRead the Press Release
WASHINGTON – Daniel Rosen, 45 of Washington D.C., pled guilty today to charges stemming from a series of incidents between 2012 and 2014 in which he secretly took video recordings of women in various stages of undress by aiming his cellular phone through their apartment windows in Northwest Washington.
The guilty plea was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Rosen, a former senior official of the U.S. State Department, pled guilty in the Superior Court of the District of Columbia to six counts of voyeurism and five counts of stalking. The Honorable Rhonda Reid Winston scheduled sentencing for Oct. 9, 2015. Each of the counts of voyeurism and stalking carries a maximum penalty of one year and potential fines.
“Daniel Rosen crept through alleys and peered through windows to secretly film women during intimate, private moments in their own homes,” said Acting U.S. Attorney Cohen. “Today he admitted to being a serial stalker and voyeur who robbed women of the privacy they expected in their own bedrooms and bathrooms. I hope that the fact he is being held accountable will serve as a deterrent and prevent others from engaging in this illegal and invasive conduct.”
According to a factual proffer submitted at the plea hearing, over the course of a three-year period, Rosen purposefully positioned himself outside of the windows of women who resided in basement-level apartments that faced rear, isolated alleys. The women believed they were shielded from outside view by the use of curtains, blinds, or the fact that their windows were situated in enclosed, hard-to-access to areas, either behind fences, through back residential alleys, or down a flight of basement steps. Once positioned behind these women’s apartments, Rosen peered through their windows and used his iPhone to record them. The activities took place in the areas of Mount Pleasant, the U Street Corridor, and Adams Morgan.
Rosen recorded the women in various stages of undress, capturing some in the most intimate and private moments in their bedrooms and bathrooms. Several women, had their blinds or curtains drawn, but Rosen was able to maneuver himself and his cell phone in between the cracks or small openings of the blinds to make his recordings.
All of the recordings took place during the late evening hours, thus enabling Rosen to hide in the shadows as he recorded these women in their lit bedrooms, bathrooms, kitchens, and living rooms. At times, Rosen would engage in this conduct while walking his dog, thus disguising his true intentions. None of the women were aware that Rosen was watching and recording them, and none gave Rosen permission to watch and record them. For several of these women, the defendant returned on more than one occasion to record their private moments.
In announcing the plea, Acting U.S. Attorney Cohen and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department. In addition, they expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator John Marsh, Victim/Witness Advocate Veronica Vaughan and Assistant U.S. Attorney Lindsay Suttenberg, who investigated and prosecuted the matter.
Defendant Sentenced to Twenty-Four Years for Murder on Nez Perce ReservationRead the Press Release
COEUR D'ALENE - Raymond Antoine Scott, Jr., 39, of Lapwai, Idaho, was sentenced yesterday in United States District Court to 288 months in prison for second degree murder in the death of William Reich on the Nez Perce Reservation, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Scott to serve five years of supervised release. Scott pleaded guilty to the charge on May 4, 2015.
According to the plea agreement and statements during court, Scott admitted that he intentionally and with malice killed William Reich on July 9, 2013. Scott admitted to using a hatchet or similar object to strike Reich in the head. The case was handled by the United States Attorney’s Office because it happened on the Nez Perce Indian Reservation and both Scott and Mr. Reich were tribal members.
Olson said that Scott earned every day of his twenty-four year sentence. “This defendant’s criminal history demonstrates that he has injured and harmed people both on and off the reservation,” said Olson. “The victim in this case, William Reich, was a kind man who deserved a far better fate. There is nothing that my office can do to lessen the pain for the family of Mr. Reich or his community. However they can rest assured that Raymond Scott, Jr. will not be able to harm other members of the community for many years to come. I appreciate the collaborative efforts of the tribal, state and local law enforcement agencies in bringing this defendant to justice.”
The case was investigated by Federal Bureau of Investigation (FBI), Nez Perce Tribal Police and the Idaho State Police.
Dallas Man Sentenced to 15 Years in Federal Prison for Sex Trafficking Teenage RunawaysRead the Press Release
DALLAS — A Dallas man who pleaded guilty in February 2015 to sex trafficking a 17-year-old runaway was sentenced this morning, announced John Parker, U.S. Attorney for the Northern District of Texas.
Ladestro Douglas, a/k/a “Derek Douglas,” 36, was sentenced by U.S. District Judge Barbara M. G. Lynn to 15 years in federal prison to be followed by five years of supervised release. He was also required to register as a sex offender, and he was ordered to pay one of his victims, Jane Doe #1, $136,000 in restitution.
During sentencing, Judge Lynn noted that the case was not about prostitution; rather it was about human trafficking. She stated that Douglas “was trafficking through the sale of children,” and “to call it human trafficking acknowledges the horror of what you [Douglas] were doing.”
Douglas pleaded guilty in February 2015 to one count of conspiracy to commit sex trafficking of children, admitting he met a 17-year-old female on the Internet, convinced her to leave her foster home and go to Texas with him where he facilitated her engagement in commercial sex acts.
According to documents filed in the case, in May 2012, Douglas contacted 17-year-old “Jane Doe #1” on the Internet and began communicating with her. He convinced her to leave her foster home in Alabama and travel with him to Texas. When they arrived in Texas, Douglas facilitated Jane Doe #1 engaging in commercial sex acts. He took provocative photos of her for use on commercial sex websites; posted her on Backpage.com and other similar commercial sex websites; provided her with contraceptives to use with customers; and drove her to various cities to engage in commercial sex acts. Jane Doe #1 gave Douglas all of the money she earned.
In June 22, 2012, officers with the Dallas Police Department responded to a disturbance call at a local hotel. In the parking lot, they encountered Jane Doe #1, who explained that she had gotten in an altercation with her pimp, Douglas. Officers learned Jane Doe #1 was a 17-year-old runaway from Alabama, and they arrested Douglas. Douglas admitted that he knew she was age 17 and that she had been engaging in commercial sex acts throughout Texas. Afterwards, Jane Doe #1 lost contact with Douglas for several months, but after she turned 18, they reunited and Douglas continued to facilitate her commercial sex acts.
In December 2013, Jane Doe #1 and another woman were in Odessa, Texas, working at Douglas’s direction. They encountered 16-year-old Jane Doe #2 walking down the street, offered her a ride and she joined them. Jane Doe #1 contacted Douglas about Jane Doe #2 and he travelled to Odessa to meet her.
Douglas, Jane Doe #1 and Jane Doe #2 traveled back to Dallas on a bus, and after they arrived, Jane Doe #1 began facilitating Jane Doe #2’s engaging in commercial sex acts. They took provocative photos of her and posted her ad on Backpage.com. Jane Doe #1, at Douglas’s direction, contacted certain customers to see if they wanted to pay to have sex with Jane Doe #2. Jane Doe #1 also rode in the car with Jane Doe #2 to her commercial sex transactions, but she did not go into the room where they occurred. Jane Doe #2 also gave all of the money she earned to Douglas.
Ultimately, in late December 2013, Jane Doe #2 told Douglas she wanted to go home for the Christmas holidays, and he allowed her to leave.
The North Texas Trafficking Taskforce and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Crawford County Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty on July 17, 2015, in federal court in Sioux City.
Katja Bails, 37, from Kiron, Iowa, was convicted of conspiring to distribute methamphetamine.
At the plea hearing, Bails admitted that from about 2012 and continuing through November 2014 she was involved in a conspiracy that distributed more than 5,000 grams of actual (pure) methamphetamine. Bails traveled periodically from the Denison, Iowa, area to Omaha, Nebraska to obtain large quantities of methamphetamine which she then distributed in the Denison, Iowa and Ida Grove, Iowa areas.
Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Bails will remain in custody pending sentencing. Bails faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, $100 in special assessments, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Ida County Sheriff’s Office, Denison Police Department, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4086.
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Corpus Christi Man Pleads Guilty to Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – James Parrott, 31, of Corpus Christi, has pleaded guilty to distribution of child pornography, announced U.S. Attorney Kenneth Magidson.
The court heard today that detectives with the Corpus Christi Police Department, while using peer-to-peer software, were able to successfully download various files containing child pornography from an IP address that was associated with Parrott. As a result of this information, the FBI office in Corpus Christi was contacted to assist in the investigation.
In January 2015, agents executed a search warrant at Parrott’s residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 1,000 images and more than 120 videos of child pornography. Parrott admitted to using the peer-to-peer software to download child pornography.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Oct. 19, 2015. At that time, Parrott faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Hernandez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Parrott was arrested on the federal charges in June 2015 and has been in custody since that time where he will remain pending his sentencing hearing.
The FBI investigated with the assistance of the Corpus Christi Police Department.
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."
Congressman Chaka Fattah and Associates Charged with Participating in Racketeering ConspiracyRead the Press Release
A member of Congress and four of his associates were indicted today for their roles in a racketeering conspiracy involving several schemes that were intended to further the political and financial interests of the defendants and others by, among other tactics, misappropriating hundreds of thousands of dollars of federal, charitable and campaign funds.
Congressman Chaka Fattah Sr., 58, of Philadelphia; lobbyist Herbert Vederman, 69, of Palm Beach, Florida; Fattah’s Congressional District Director Bonnie Bowser, 59, of Philadelphia; and Robert Brand, 69, of Philadelphia; and Karen Nicholas, 57, of Williamstown, New Jersey, were charged today in a 29-count indictment with participating in a racketeering conspiracy and other crimes, including bribery; conspiracy to commit mail, wire and honest services fraud; and multiple counts of mail fraud, falsification of records, bank fraud, making false statements to a financial institution and money laundering.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division and Special Agent in Charge Akeia Conner of the Internal Revenue Service-Criminal Investigation (IRS-CI) Philadelphia Field Office made the announcement.
“As charged in the indictment, Congressman Fattah and his associates embarked on a wide-ranging conspiracy involving bribery, concealment of unlawful campaign contributions and theft of charitable and federal funds to advance their own personal interests,” said Assistant Attorney General Caldwell. “When elected officials betray the trust and confidence placed in them by the public, the department will do everything we can to ensure that they are held accountable. Public corruption takes a particularly heavy toll on our democracy because it undermines people’s basic belief that our elected leaders are committed to serving the public interest, not to lining their own pockets.”
“The public expects their elected officials to act with honesty and integrity,” said U.S. Attorney Memeger. “By misusing campaign funds, misappropriating government funds, accepting bribes, and committing bank fraud, as alleged in the Indictment, Congressman Fattah and his co-conspirators have betrayed the public trust and undermined faith in government.”
“These crimes and the subsequent elaborate cover-up constitute an egregious breach of public trust,” said Special Agent in Charge Hanko. “It is the duty of the FBI, IRS and Department of Justice to investigate and prosecute those who violate this trust and put personal gain above public service.”
“Public corruption by our elected officials and their associates undermines the American public’s confidence in our government,” said Special Agent in Charge Conner. “When our elected officials and their associates violate the law and create sophisticated financial schemes to enrich themselves, the Internal Revenue Service-Criminal Investigation, will work diligently with our fellow law enforcement partners to restore the public’s trust.”
Specifically, the indictment alleges that, in connection with his failed 2007 campaign to serve as mayor of Philadelphia, Fattah and certain associates borrowed $1 million from a wealthy supporter and disguised the funds as a loan to a consulting company. After he lost the election, Fattah allegedly returned $400,000 to the donor that the campaign had not used, and arranged for Educational Advancement Alliance (EAA), a non-profit entity that he founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand. To conceal the contribution and repayment scheme, the defendants and others allegedly created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.
In addition, the indictment alleges that after his defeat in the mayoral election, Fattah sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. According to the allegations in the indictment, Fattah directed the consultant to apply for a $15 million grant, which he did not ultimately receive, on behalf of a then non-existent non-profit entity. In exchange for Fattah’s efforts to arrange the award of the funds to the non-profit, the consultant allegedly agreed to forgive the debt owed by the campaign.
The indictment further alleges that Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son’s student loan debt. To execute the scheme, Fattah and Bowser allegedly arranged for his campaigns to make payments to a political consulting company, which the company then used to lessen Fattah’s son’s student loan debt. According to the allegations in the indictment, between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah’s son, totaling approximately $23,000.
In another alleged scheme, beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the indictment alleges that the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a car sale that never actually took place.
Finally, the indictment alleges that Nicholas obtained $50,000 in federal grant funds that she claimed would be used by EAA to support a conference on higher education. The conference never took place. Instead, Nicholas used the grant funds to pay $20,000 to a political consultant and $10,000 to her attorney, and wrote several checks to herself from EAA's operating account.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and IRS-CI. Assistance was also provided by the Department of Justice’s Office of the Inspector General, the NASA Office of Inspector General and the Department of Commerce’s Office of Inspector General. The case is being prosecuted by Trial Attorneys Eric L. Gibson, T. Patrick Martin and Jonathan Kravis of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Paul L. Gray of the Eastern District of Pennsylvania. Trial Attorney Bob Dalton of the Criminal Division’s Organized Crime and Gang Section also provided assistance in this case.
Fattah et al. Indictment.pdf (5.96 MB)
Columbia Veteran Pleads to Defrauding Veteran's AffairsRead the Press Release
Contact person: William E. Day, II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Bobby Joe Haynes, age 61, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to Theft of Government Funds, a violation of 18 U.S.C. § 641. United States District Judge Terry L. Wooten of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Haynes received medical treatment from VA Medical Center in Columbia, S.C. Veterans are reimbursed for mileage to and from their residence and the medical facility. Haynes was living in Columbia but falsely claimed to be living in Georgetown, S.C. so that he could receive higher mileage payments. Between March 2011 and October 2013 Haynes filed 140 false mileage claims resulting in losses to the Department of Veterans Affairs of $7,488.
Mr. Nettles stated the maximum penalty for Theft of Government Funds is imprisonment for 10 years and/or a fine of $250,000.
The case was investigated by agents of the Department of Veterans Affairs, the Office of Inspector General, and the Criminal Investigations Division. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.
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Cassville Man Sentenced to 25 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Cassville, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Matthew Casas, 26, of Cassville, was sentenced by U.S. District Judge Stephen R. Bough on Tuesday, July 28, 2015, to 25 years in federal prison without parole.
On Feb. 5, 2015, Casas pleaded guilty to receiving and distributing child pornography over the Internet and to possessing child pornography.
A business in Monett, Mo., contacted the local police department in 2013 when a customer who rented a smart TV notified them he discovered child pornography stored on the device’s memory. The television, which had been previously rented by Casas, was equipped to store the last 25 images viewed on the TV.
In February 2014, officers received three cybertips from the National Center for Missing and Exploited Children. The tips involved images of pre-pubescent females that were posted online on Casa’s Flickr account. Investigators determined that those images were posted from a computer at Casas’s residence. Officers executed a search warrant at the residence on Feb. 28, 2014.
Casas admitted that he downloaded and distributed child pornography to his Flickr account and that he also downloaded images of child pornography onto the smart TV that he rented.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, Missouri Internet Crimes Against Children, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Barry County, Mo., Sheriff’s Department, the Joplin, Mo., Police Department and the Monett, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Canadian Man Guilty of Marijuana Importation ConspiracyRead the Press Release
A Canadian man who was involved in a large marijuana smuggling conspiracy pled guilty on July 27, 2015, in federal court in Cedar Rapids.
Jason Boyachek, age 42 from British Columbia, Canada, was convicted of conspiracy to distribute 1000 kilograms or more of marijuana from 2005 through May of 2007.
At the plea hearing, Boyachek admitted his participation in the marijuana smuggling conspiracy, which involved smuggling marijuana from Canada to various locations in the United States and then transporting large quantities of currency back to Canada. On May 14, 2007, Customs and Border Patrol seized 600 pounds of marijuana hidden in a truck as it entered the United States near Pembina, North Dakota. This shipment was destined for a rural location in Delaware County, Iowa. Over the course of the investigation law enforcement officers were able to seize over $1.2 million in drug proceeds. Boyachek was subsequently arrested in Canada on September 12, 2011, and extradited to the United States on March 26, 2015.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Boyachek remains in custody of the United States Marshal pending sentencing. Boyachek faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $4,000,000 fine, $100 in special assessments, and 5 years of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Patrick and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of The Department of Homeland Security, Homeland Security Investigations, Customs and Border Patrol and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 09-2027.
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Butler Man Gets 5-Year Prison Term for Distributing Sexually Explicit Images and Video of ChildrenRead the Press Release
PITTSBURGH - A resident of Butler, Pa., was sentenced in federal court to 5 years imprisonment followed by 15 years supervised release, on his conviction of distribution of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Justin Ellenberger, age 26.
According to information presented to the court, on March 10, 2014, Ellenberger distributed, to an a FBI agent working in Newark, New Jersey, in an undercover capacity, 19 photographs and a video contained in computer graphics files which depicted minors, some under the age of 12 years, engaging in sexually explicit conduct. A search warrant later executed at Ellenberger’s residence resulted in the seizure of two computers and an external hard drive, in which thousands of still images and videos had been stored by Ellenberger.
Judge Bissoon allowed Ellenberger to remain on bond pending designation to a federal correctional facility.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Ellenberger.
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.
Bossier City tax preparer sentenced to 21 months in prison for tax fraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Bossier City woman was sentenced Tuesday to 21 months in prison for making and filing a false tax return.
Karen Cartagena, 55, of Bossier City, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of making and subscribing a false tax return. Judge Foote also sentenced Cartagena to serve three years of supervised release and pay $84,147 in restitution. According to evidence presented at the March 19, 2015, guilty plea, Cartagena prepared and filed a fraudulent tax return on or about January 24, 2012. In the return, she added education credits (Education and American Opportunity credits) to which she was not entitled.
“While most preparers provide excellent service to their clients, some dishonest return preparers file false tax returns and give clients a false sense of security,” Finley stated. “I want to remind dishonest tax preparers that they will be prosecuted. This case should send a strong message to any dishonest tax return preparers who might be thinking of engaging in criminal activity. I also want to thank our law enforcement partners and the prosecutor in this case for their hard work in bringing this defendant to justice.”
“We are pleased with the sentencing of Ms. Cartagena and will continue to work with the U.S. Attorney’s Office to investigate and prosecute return preparers who abuse the nation’s tax system,” said Jerome R. McDuffie, Special Agent in Charge, IRS-Criminal Investigation, New Orleans Field Office. “Tax return preparer fraud is a priority for our agency. Taxpayers should be very selective in choosing a return preparer; and have confidence that their returns are prepared accurately and reflect only the information that they provide. ”
Internal Revenue Service-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.