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21 July 2015
After Nearly 20 Years, International Fugitive in Multi-Million Dollar Fraud Scheme Apprehended in Greece and Extradited to United States to Serve Prison SentenceRead the Press Release
A former New York businessman, who disappeared the same day a federal jury sitting in the U.S. District Court in Newark, New Jersey, began deliberating in his tax evasion and fraud trial, was caught while in Greece more than 18 years after his conviction, and appeared in federal court in the District of New Jersey on Friday, July 17, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Gideon Misulovin, 58, whose last known address was in New York City, was extradited from Greece to the United States to serve his 10-year prison sentence. He has been incarcerated in the United States since his return on July 16.
On March 7, 1996, a jury convicted Misulovin of conspiracy to impede and impair the Internal Revenue Service (IRS) in the ascertainment and collection of more than $6.5 million in federal motor fuel excise taxes, wire fraud and money laundering stemming from a scheme to conceal the unpaid diesel fuel excise taxes from state and federal tax authorities.
During trial, Misulovin was free on $500,000 bail and attended each day of the trial. He failed to appear in court March 4, 1996, for the parties’ closing arguments. U.S. Senior District Judge Dickinson R. Debevoise of the District of New Jersey in Newark issued a warrant for his arrest. On June 25, 1997, Judge Debevoise sentenced Misulovin in absentia to serve 10 years in prison and a three-year term of supervised release, and to pay a $150,000 fine. The court also ordered Misulovin to pay restitution in the amount of $200,000 to the United States and $100,000 to the state of New Jersey.
The evidence at trial established that from 1988 through Jan. 31, 1993, Misulovin and his co-conspirators sold untaxed diesel fuel in a series of paper transactions using wholesale companies. Some of the companies were shams and called “burn” or “butterfly” companies. As part of the scheme, the sham company would assume the federal and state tax liability and then vanish, allowing the conspirators to keep the excise taxes they collected from truck stops and service stations.
The case, part of a then-nationwide motor fuel excise tax enforcement effort, was investigated jointly by the Motor Fuel Task Force and the U.S. Attorney’s Office of the District of New Jersey. In an effort to infiltrate the bootleg gasoline industry, task force agents set up an undercover business called RLJ Management that competed directly with the defendants’ operation.
At the conclusion of the undercover operation, in November 1992, federal agents seized Misulovin’s assets, including approximately $70,000 in cash from his residence and $277,000 from his business bank account.
Misulovin’s co-defendant and co-conspirator, Arnold Zeidenfeld, of Brooklyn, New York, pleaded guilty prior to trial and testified for the government. Gurmit Singh and Manbir Singh, of Matawan, New Jersey, who operated truck stops in southern New Jersey, also pleaded guilty for their roles in the scheme.
In August 2014, based on an Interpol Red Notice, Misulovin was detained in a Greek airport using an alias and traveling with an Israeli passport. He was subsequently arrested pursuant to a U.S. request for a provisional arrest, and after contested extradition proceedings, was found extraditable in 2015.
The task force included attorneys from the Tax Division and agents from the IRS Criminal Investigation and Examination Divisions, the FBI, the U.S. Department of Transportation and the New Jersey State Department of Taxation and Finance. Seth D. Uram, formerly a Trial Attorney in the Tax Division and now an Assistant U.S. Attorney in Portland, Oregon, and Trial Attorney Charles A. O’Reilly of the Tax Division prosecuted the case.
Acting Assistant Attorney General Ciraolo thanked the Department of Justice’s Office of International Affairs, the FBI’s New Jersey Field Office and the Greek Ministry of Justice for their assistance in apprehending and extraditing Misulovin. Ciraolo also thanked the U.S. Attorney’s Office of the District of New Jersey for their substantial assistance.
Accountant Charged with Embezzling Nearly $130,000 from the Illinois Medical District CommissionRead the Press Release
CHICAGO — A senior accountant at the Illinois Medical District Commission embezzled nearly $130,000 from the agency by directing funds into her personal accounts while fraudulently claiming the payments had been sent to the agency’s energy provider, according to a federal criminal complaint unsealed today.
CYNTHIA FERNANDEZ-ALONSO, 42, of Berwyn, was arrested by FBI agents this morning. She was charged with embezzlement in a criminal complaint filed yesterday in U.S. District Court and unsealed after the arrest. She is scheduled to make an initial court appearance at 11:00 a.m. today before U.S. Magistrate Judge Sheila Finnegan.
According to the complaint affidavit, Fernandez-Alonso worked as a senior accountant for the Illinois Medical District Commission, a governmental agency that receives federal funds to facilitate collaboration among the various medical, health and social service agencies operating within the Illinois Medical District on Chicago’s Near West Side. Fernandez-Alonso had the sole responsibility of authorizing payments from the Commission’s bank account to its outside vendors, including Constellation Energy, the Commission’s electrical and natural gas supplier, according to the complaint affidavit.
From February 2014 to at least April 2015, according to the affidavit, Fernandez-Alonso used her position to direct payments from the Commission’s bank account into two personal checking accounts. Fernandez-Alonso recorded the payments in the Commission’s internal records, but attributed them as having been sent to Constellation Energy, according to the affidavit.
The affidavit describes how Fernandez-Alonso arranged for 32 separate direct deposits into her personal accounts at Bank of America and Chase Bank, totaling $129,487. On the same day she received one such deposit – for $4,852 on Dec. 10, 2014 – a purchase was made with her Chase debit card at Kay Jewelers for $2,847, the affidavit states.
The charge of embezzlement from a program receiving federal funds carries a maximum penalty of 10 years in prison and a $250,000 fine, as well as mandatory restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Maureen E. Merin.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
20 July 2015
Two Men Sentenced for Clean Air and Clean Water Act ViolationsRead the Press Release
SIOUX CITY, IOWA – An Iowan and a Nebraskan will each serve prison time for violating provisions of the Clean Air Act and Clean Water Act.
Clean Water Act Violation
Michael J. Wolf, age 58, from Remsen, Iowa, received a sentence including six weekends in prison after a December 16, 2014, guilty plea to one count of knowingly discharging a pollutant into a waterway of the United States. The discharge resulted in a fish kill. At the plea and sentencing hearings, the United States presented evidence that on October 23 and 24, 2012, Wolf, while he was the maintenance manager at Sioux-Preme Packing, intentionally discharged biological materials and agricultural wastes (e.g., blood, fecal material, animal guts, cleaning chemicals, etc.) from one of Sioux-Preme’s waste lagoons into a tributary of the West Branch of the Floyd River.
The discharge lasted more than 11 hours. It fouled over 11 miles of river, downstream from the lagoon. It killed over 190,058 fish of various species (with a value of $20,282.94) and caused the State of Iowa to expend more than $5,000 in response costs. One witness to the fish kill described watching fish jumping out of the water and racing around to avoid the deadly plume. Wolf lied to members of the Iowa Department of Natural Resources’ Emergency Response team attempting to ameliorate the effects of the spill. This delay likely worsened the effects of the spill.
Clean Air Act Violation
Larry Wolf, age 54, from Dakota City, Nebraska, received a sentence including a year and a day in prison after a December 17, 2014, guilty plea to one count of knowingly violating the work practice standards of the Clean Air Act by failing to thoroughly inspect the old -more-Sioux City YMCA to ascertain the amount of asbestos, and whether that amount was sufficient to subject the demolition project to regulation.
At the plea and sentencing hearings, the United States presented evidence that Wolf knew the building contained asbestos and regulated asbestos-containing material and that he had even received an asbestos abatement estimate for the building.
Despite knowing the old YMCA building contained asbestos, defendant directed friends, family, and others to, disturb, renovate, remove, and dispose the asbestos and regulated asbestos-containing material and help him personally do so. Defendant took at least 19,514 pounds of scrap metal from the old YMCA and was paid at least $30,477.54 from one particular scrap yard for it. Defendant boasted he had made $80,000.00 or more from the old YMCA in this way. When defendant was questioned by Special Agents of the United States Environmental Protection Agency, he lied telling them he had only removed naked materials from the facility.
United States Attorney Kevin W. Techau commented: “Environmental crimes that involve polluting air and Iowa’s water are serious matters. These cases show that violations of our environmental laws are taken very seriously because they impact our communities both now and in years to come. These sentences show that if you commit environmental crimes you will be prosecuted. I offer my congratulations to all of our partners in these cases.”
Sentencing
Michael J. Wolf was sentenced in Sioux City by United States District Court Judge Mark W. Bennett for his violation of the Clean Water Act. He was sentenced to six weekends of imprisonment and a one-year term of probation. A special assessment of $100 was imposed.
Larry Wolf was sentenced in Sioux City by United States District Court Judge Mark W. Bennett for his violation of the Clean Air Act. He was sentenced to 12 months and one day imprisonment and a two-year term of supervised release following his imprisonment. A special assessment of $100 was imposed.
Michael J. Wolf and Larry Wolf are not related.
These two cases were investigated by the United States Environmental Protection Agency and the Iowa Department of Natural Resources and were prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov. The case file numbers are CR14-4091 (Michal J. Wolf), and CR14-4055 (Larry Wolf).
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Two Former Bellevue Residents Who Allowed Apartment to be used for Drug Manufacturing Sentenced to Three Years in PrisonRead the Press Release
Two men who invited a third man to use their Bellevue, Washington apartment for the illegal manufacturing of hash oil were sentenced to prison today in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes. JESSE D. KAPLAN, 32, of Redmond, Washington and Daniel James STRYCHARSKE, 29, of Kirkland, Washington were each sentenced to three years in prison and three years of supervised release. Last month the lead defendant in the case, David Richard Schultz, II, 33, was sentenced to nine years in prison. Schultz was using highly explosive butane gas to make hash oil in the Hampton Greens Apartment complex on November 5, 2013 while the other two apartment residents were sleeping. The gas exploded and numerous people in the apartment complex were injured fleeing the fire. One of them, a former Mayor of Bellevue, died following treatment for injuries sustained while trying to escape the building.
“As I emphasized when the lead defendant was sentenced, this case tragically demonstrates why BHO extraction operations are so dangerous,” said U.S. Attorney Annette L. Hayes. “Just like the meth labs we have worked so hard to eradicate, hash oil labs involve dangerous solvents and pose a serious risk of death and property damage.”
At the sentencing hearings U.S. District Judge James L. Robart said, “What moves the court is the loss of life, the permanently disabling and significant injuries the people received all because they lived in an apartment building with these defendants….who undertook this incredibly reckless and dangerous activity.”
According to records filed in the case, KAPLAN and STRYCHARSKE rented the apartment and allowed Schultz to set up the BHO manufacturing equipment in their space. The men planned to sell the BHO for profit. All three men suffered injuries in the explosion. Former Bellevue Mayor Nan Campbell was hospitalized for a broken pelvis she suffered trying to escape the flames. She later died following complications from her hospitalization. Two other apartment residents suffered shattered bones as they had to jump from their upper level apartments. In all the fire caused more than $2 million in property damage. The total amount of restitution owed by these defendants will be finalized by a hearing scheduled for September 21, 2015.
Judge Robart determined an upward departure from the sentencing guidelines was warranted for the defendants in the case because of the severe damage to the community. “I am troubled that the conduct was motivated by greed – the money that could be made by manufacturing hash oil,” Judge Robart said. He added that prison sentences may deter others from getting involved in butane hash oil manufacturing.
This case was investigated by multiple local and federal agencies, including: the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, and the Bellevue Police and Fire Departments.
The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Vince Lombardi.
Two Colombian Citizens Sentenced for Their Participation in an International Money Laundering ConspiracyRead the Press Release
Two Colombian citizens were sentenced for their participation in an international money laundering conspiracy. Leonardo Forero Ramirez, 59, was sentenced to 37 months in prison, followed by one year of supervised release. Ubaner Alberto Acevedo Espinosa, 32, was sentenced to 18 months in prison, followed by one year of supervised release.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
The defendants each previously pled guilty to one count of conspiracy to commit money laundering.
According to court documents, both Acevedo and Forero were Colombian citizens residing in Bogota. During 2008 and 2009, Acevedo handled customer accounts at a stock brokerage firm that offered accounts which could be used by customers to receive deposits, wire transfers, and other credit or money, and to disburse the funds through wire transfers and cash or other withdrawals. The stock brokerage firm was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions. Forero was one of Acevedo's customers.
During the course of his participation in this scheme, Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Acevedo was involved in the transfer of approximately $335,000 from IRS undercover accounts in the United States to the stock brokerage firm in Colombia, and the conversion of the dollars into pesos and the subsequent withdrawal of the monies by Forero. Both Acevedo and Forero knew that the money was derived from criminal activity.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
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.
Two Carbondale Residents Sentenced on Methamphetamine OffenseRead the Press Release
On July 14, 2015, James C. Leming, 54, and Dawn E. Unterfer, 45, both of Carbondale, IL, were sentenced for their involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Leming and Unterfer, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, were sentenced to 87 months and 78 months in federal prison, respectively. Both were also placed on 3 years’ supervised release and fined $300. The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Leming and Unterfer were involved with each other and others in the manufacture of methamphetamine. Both co-defendants purchased pseudoephedrine for others to use in the manufacture of methamphetamine. At the sentencing hearings, the district court found that Leming was responsible for the illegal possession of 229 grams of pseudoephedrine and that Unterfer was found responsible for the illegal possession of 253 grams of pseudoephedrine. Seven co-defendants have previously been sentenced for their involvement in the methamphetamine conspiracy. Three co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three Appear in Federal Court on Firearms ChargesRead the Press Release
FRESNO, Calif. — Juan Valenzuela, 34, and Ernie Rodriguez, 39, both of Fresno, and Anthony Rodriguez, 32, of Modesto, appeared before U.S. District Judge Lawrence J. O’Neill today on federal firearms charges, United States Attorney Benjamin B. Wagner announced.
Valenzuela was sentenced to three years in prison for possessing a firearm after a conviction for a domestic violence misdemeanor. Judge O’Neill commented on the Valenzuela’s lengthy history of domestic violence offenses, and said that the he was lucky in this case that no one was harmed by the bullets discharged from his gun. 1:14-cr-131-LJO
Ernie Rodriguez, 39, pleaded guilty to being a felon in possession of a firearm. His sentencing is set for October 13, 2015. 1:15-cr-008-LJO
Anthony Rodriguez was sentenced to four years in prison for being a felon in possession of a firearm and ammunition. 1:15-cr-035-LJO
U.S. Attorney Wagner stated: “Any time a firearm is taken out of the hands of a criminal, our neighborhoods are safer. As seen in these cases, Project Safe Neighborhood brings together federal and local law enforcement to combat gun and gang crime. Increased federal prosecution seeks to incapacitate chronic violent offenders and communicates a credible deterrent threat to potential gun offenders.”
“ATF’s primary mission is to reduce violent crime and in doing so protect the citizens of our communities,” said Acting Special Agent in Charge, Eric D. Harden. “We will continue to aggressively pursue these repeat offenders with our law enforcement partners and remove dangerous weapons from their grasp and hold them accountable for their crimes.”
These cases resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, the Fresno Police Department, the Modesto Police Department, and the Mendota Police Department. The cases are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly Sanchez is prosecuting Juan Valenzuela and Ernie Rodriguez. Assistant U.S. Attorney Vincenza Rabenn prosecuted Anthony Rodriguez.
Rodriguez faces up to 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.
Tennessee Man Sentenced for Stealing Government PropertyRead the Press Release
ABINGDON, VIRGINIA – A Laurel Bloomery, Tenn. man, who pled guilty to a pair of counts related to the theft of government equipment, was sentenced today in the United States District Court of the Western District of Virginia in Abingdon.
John Riley Morefield, 33, of Laurel Bloomery, Tenn., previously pled guilty to one count of aiding and abetting the possession, concealment and storage of a motor vehicle which had cross state lines after being stolen and one count of stealing two government license plates from a Department of Agriculture vehicle. Today in District Court, Morefield was sentenced to eight months imprisonment.
According to evidence presented at previous hearings by Assistant United States Attorney Jennifer Bockhorst, on August 25, 2014, a contractor’s backhoe, valued at $31,915, was stolen from the Virginia Creeper Trail in the Jefferson National Forest in Washington County. Approximately one month later the backhoe was recovered from property near Morefield’s residence in Tennessee. When approached, Morefield admitted to officers that the backhoe was there and he showed them where it had been hidden in the woods and covered with fresh cut pine trees. Morefield stated that the backhoe had been stolen by an acquaintance.
While on the property, officers also recovered two stolen US government license plates, which had been taken from a bulldozer owned by the United States Forest Service at the Mount Rogers Ranger District of the Jefferson National Forest in Virginia. Morefield admitted to taking the license plates.
The investigation of the case was conducted by the Washington County, Virginia Sheriff’s Office, the Johnson County, Tennessee Sheriff’s Office, and the United States Forest Service. Assistant United States Attorney Jennifer Bockhorst prosecuted the case for the United States.
Ten People Charged in Northeast Alabama Conspiracy to Distribute MethRead the Press Release
HUNTSVILLE -- Two illegal aliens serving time in Georgia state prisons and using contraband cell phones directed at least eight people in northeastern Alabama and Chattanooga to carry out a conspiracy to traffic methamphetamine, federal and local officials announced today.
Eight people now face a federal indictment that they conspired to traffic 50 grams or more of the illegal drug in Cleburne, Etowah, Marshall and DeKalb counties from December 2013 through May this year. A ninth individual faces a separate distribution count in the indictment. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger Stanton, Etowah County Sheriff Todd Entrekin, Gadsden Police Chief John Crane, Dekalb County Sheriff Jimmy Harris, Cherokee County Sheriff Jeff Shaver and Heflin Police Chief A.J. Benefield announced the charges from a 19-count indictment returned in June and unsealed this month following the arrest of three defendants. One of the remaining six defendants already was in federal custody, and the five others are in jails or state prisons in Georgia and Alabama.
A 10th defendant, THOMAS WATSON SMITH, 39, of Rome, Ga., was charged in April with one count of possession with intent to distribute at least 50 grams of methamphetamine in Cherokee County in August 2014. Smith pleaded guilty June 30. He is scheduled for sentencing Oct. 14.
The June indictment charges JOSE ROLANDO ARROYO BALCAZAR, 36, his sister, JUANNA BALCAZAR, 28, of Boaz, YESENIA MONTUFAR MARTINEZ, 28, MIGUEL MANRIQUEZ, 38, ALLEE THOMAS WALKER, 37, ANTHONY PAUL LEE, 36, BERNUBE PEREZ, 22, and RAFAEL JOSE CASTILLO MORALES, 27, of Chattanooga, Tenn., with the 2013-2015 conspiracy. MELISSA NICASIO, 28, also of Chattanooga, is charged with one count of conspiring with Morales between March and April this year to distribute 50 grams or more of methamphetamine in Etowah and DeKalb Counties.
The three defendants arrested July 9 are Juanna Balcazar, Morales and Nicasio.
"The conspiracy charged here was responsible for supplying the intensely addictive and debilitating drug, methamphetamine, in northeast Alabama for at least two years," Vance said. "Thanks to the many law enforcement agencies that joined together to identify the participants in this organization, including two who were giving orders from within Georgia state prisons, we were able to shut off this illegal supply network. This case exemplifies the mission of the OCDETF Program," she said.
“This case is another great example of local, state and federal law enforcement partners working together to eliminate a significant drug-trafficking operation," Stanton said. "Thanks to all the members of the FBI’s North Alabama Safe Streets Task Force and particularly, the Etowah County Sheriff’s Office and the Gadsden Police Department for their tireless work in bringing this case to fruition.”
Jose and Juanna Balcazar and Manriquez are Mexican nationals in the United States illegally, and Morales is a Honduran national in the country illegally. Jose Balcazar is serving a 30-year sentence in a Georgia state prison on a 2007 methamphetamine trafficking conviction, according to Georgia Department of Corrections records. Manriquez is serving a life sentence in a separate Georgia prison on a 2003 murder conviction, according to the state's Corrections Department records.
Jose Balcazar and Manriquez communicated with each other and with people outside the prison system to carry on the methamphetamine trafficking operation in northeast Alabama, according to testimony last week in federal court in Huntsville during a detention hearing for Morales. Morales, who was living in Chattanooga, was ordered into custody pending trial.
Along with the June indictment's two conspiracy charges, most of the remaining counts charge various defendants with distributing methamphetamine on specific dates between July 2014 and May 2015. Count 19 charges Lee with possessing a firearm -- a .380-caliber Derringer pistol -- in furtherance of a drug-trafficking crime.
The penalty for the conspiracy counts and the counts of distributing 50 grams or more of methamphetamine is 10 years to life in prison and a maximum $10 million fine. The minimum prison term for those offenses increases to 20 years if there has been a previous felony drug conviction. The penalty for distributing five grams or more of methamphetamine is five to 40 years in prison and a maximum $5 million fine. That penalty increases to 20 years to life in prison if there has been a prior felony drug conviction. The firearms charge carries a minimum mandatory prison sentence of five years and a maximum fine of $250,000.
The FBI’s North Alabama Safe Streets Task Force, with participation of the sheriff's offices in Etowah, Cherokee and Dekalb counties, the Gadsden and Heflin Police Departments, and the District Attorney's Offices for Cherokee and Etowah counties investigated the case as part of the Organized Crime Drug Enforcement Task Force Program. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply. Assistant U.S. Attorney Laura D. Hodge is prosecuting the case.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Staten Island, New York, Man Sentenced to 54 Months in Prison for Multimillion-Dollar Organized Retail Crime ConspiracyRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 54 months in prison for his role in a large-scale, organized, retail crime scheme involving the theft of tens of millions of dollars’ worth of over-the-counter (OTC) pharmaceuticals and health and beauty aid (HBA) products, U.S. Attorney Paul J. Fishman announced.
Mohammed Abuteer, 27, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to transport stolen goods interstate. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2008 through May 2013, Abuteer participated in an elaborate scheme to steal and resell HBA and OTC, such as Claritin, Zantac, Mucinex, Prilosec, and Crest White Strips. The items were stolen from retail stores including Target, Wal-Mart, and CVS, and military commissaries, some of which were located in New Jersey.
Conspirators known as “boosters” stole HBA and OTC products and sold them to low-level “fences” at a fraction of the retail value. For example, a package of 30-count Crest White Strips, which retailed for approximately $50, would be sold for $11. The fences resold the items to mid-level distributors – including Abuteer, and his brother, Salim Abutair, who was previously charged by complaint with participating in the conspiracy and is now a fugitive in Jordan. The distributors resold the items to higher-level distributors, who then sold the stolen goods to retailers or directly to consumers.
Abuteer maintained an inventory of his stolen product in a large storage unit in Staten Island, where he and others “cleaned” the items by removing security packaging and other labels that identified the retail stores from which the products were stolen. He used the storage unit to arrange for deliveries of merchandise to other conspirators. Abuteer and his brother also maintained several bank accounts from which they paid for the stolen merchandise and where they held their profits. Over the course of Abuteer’s involvement in the conspiracy, he and his brother purchased tens of millions of dollars of stolen HBA and OTC merchandise. Abuteer was arrested in May 2013 while attempting to travel to Jordan. At the time of his arrest, he was carrying $10,000 in cash, and federal agents seized approximately $300,000 worth of stolen items from his storage unit.
In addition to the prison term, Judge McNulty sentenced Abuteer to two years of supervised release and entered a money judgment of $1,301,500, representing the proceeds of the scheme. He also forfeited certain assets previously seized by the government, including approximately $66,000 and a property in Staten Island. Abuteer, an illegal alien, has been out on bail on home detention for the majority of time since his arrest.
U.S. Attorney Fishman credited special agents with the New York field office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Raymond Parmar Jr.; agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr.; and agents of the U.S. Air Force, Office of Special Investigations, under the direction of Detachment Commander Matthew Sarkissian, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the Economic Crimes Unit.
Today’s sentencing is part of efforts underway by President Obama’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
Defense counsel: Michael Chazen Esq., Freehold, New Jersey
St. Francis Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on July 13, 2015, by U.S. District Judge Roberto A. Lange.
Joseph Four Horns, age 37, was sentenced to 12 months and 1 day of custody, 2 years of supervised released, and a special assessment of $100 to the Federal Crime Victims Fund.
Four Horns was indicted by a federal grand jury on February 11, 2015. He pled guilty on April 21, 2015.
The conviction stems from an incident on or about January 1, 2015, when the victim went to a friend’s house in St. Francis where he encountered Four Horns who, without provocation, began an altercation with him. Four Horns pushed the victim to the ground, and then proceeded to kick the victim about the body and face.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Four Horns was immediately turned over to the custody of the U.S. Marshals Service.
Spokane Valley Man Admits to Robberies Across Four StatesRead the Press Release
COEUR D'ALENE - Brian James Lindsey, 25, of Spokane Valley, Washington, pleaded guilty on July 20, 2015, to 13 counts of interference with commerce by robbery, U.S. Attorney Wendy J. Olson announced. Lindsey was indicted by federal grand juries in four states between January and April of 2015.
According to the plea agreement, Lindsey admitted that in October of 2014, he began a robbery spree across North Dakota, Montana, Idaho and Washington. Lindsey robbed six businesses in North Dakota between October 22 and 31, 2014. Initially these robberies were for cash. By October 28, 2014, Lindsey was robbing pharmacies seeking prescription narcotic drugs. After leaving North Dakota, Lindsey robbed a Shopko in Sidney, Montana, taking drugs. He arrived back in the Spokane area by November 15, 2014. Between November 15, 2014, and January 4, 2015, Lindsey robbed six more pharmacies in the Coeur d’Alene and Spokane area. The FBI sponsored North Idaho Violent Crime Task Force began to focus its attention on Lindsey prior to the last robbery. The Task Force worked with the U.S. Attorney's Office for the District of Idaho and applied for a tracker warrant for Lindsey's vehicle. After Lindsey robbed a Walgreens in Idaho, law enforcement was able to quickly apprehend him. Once in custody, Lindsey made a full confession to all the robberies. The cases were consolidated after Lindsey was indicted in each federal district where he committed his offense. The District of Idaho agreed to handle all the counts since Lindsey was already charged in Coeur d’Alene.
The charge of interference with commerce by robbery is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for October 20, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“As demonstrated by this defendant’s crime spree across four states, prescription drug addiction and abuse can lead to very serious criminal conduct with real victims,” said Olson. “Each individual who was robbed by Lindsey suffered the threat of harm and pharmacists in the area were on high alert during the time Lindsey was engaged in his robberies. I commend the collaborative work of all law enforcement in all four states that helped apprehend Lindsey.”
The case was investigated by state, federal and local law enforcement in North Dakota, Montana, Idaho and Spokane, WA.
Selection Panel to launch application process for Community Police CommissionRead the Press Release
Applications for the Community Police Commission will be released July 20, at 7:00 p.m. during a public meeting held at Cuyahoga Community College’s Advanced Technology Training Center. The application and related materials are available online at clecpc.org. Links to Community Police Commission application will be accessible through the City of Cleveland and the U.S. Attorney’s Office for the Northern District of Ohio websites. Paper copies of the application will be available for pickup at Cleveland City Hall and all branches of the Cleveland Public Library.
Completed applications for the Commission must be submitted to the Selection Panel by Thursday, August 6, 2015. Applications may be submitted online via clecpc.org, by email, U.S. postal mail, or in person to a secure drop-off box that will be available at City Hall for the delivery of paper copies. The Selection Panel is working with community groups and faith-based organizations to facilitate the distribution of these applications throughout the city.
In addition to the 10 members appointed by the Selection Panel, the commission will also include a member appointed by each of the three local police associations: the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield.
The Community Police Commission will work to bring forward recommendations to the Mayor and Cleveland Division of Police on policies and practices that will help strengthen relations between the City of Cleveland Police Department and the communities they serve. The commission will regularly issue progress updates to the community.
Readout of the Attorney General’s Meeting with President Muhammadu Buhari of NigeriaRead the Press Release
Attorney General Loretta E. Lynch met with President Muhammadu Buhari of Nigeria today at the Blair House in Washington, D.C. Both leaders discussed opportunities for U.S. Department of Justice officials to increase collaborative efforts with their Nigerian counterparts to dismantle and defeat Boko Haram, ISIL and other terrorist organizations active in the region. The Attorney General underscored the importance of combatting transnational crime and corruption through the Kleptocracy Initiative. These anti-corruption efforts not only assist the Nigerian people in their efforts to recover assets stolen from victims but they are also helpful tools to protect the U.S. financial system from being utilized by criminals.
Plummer Man Sentenced for StrangulationRead the Press Release
COEUR D’ALENE - James Andrew Samuels, Jr., 27, of Plummer, Idaho, was sentenced today to 18 months in prison for strangulation, U.S. Attorney Wendy J. Olson announced. The Court also ordered that Samuels serve three years supervised release following his sentence and complete anger management counseling. He pleaded guilty to the charge in December 2014.
According to the plea agreement, in November 2013, Samuels got into an argument with a woman he was dating. Samuels admitted that during the argument he grabbed the victim by the neck and strangled or attempted to strangler her. The woman sustained bruises to her face and neck.
U.S. Attorney Wendy J. Olson stated that the conviction and sentence are part of the office’s effort to ensure that Native American women and families are protected from domestic violence. “The strangulation statute and the Violence Against Women Act are useful tools to fight domestic violence crimes that endanger women and children on reservations. This violence tears apart families, damages children, and may even have lethal consequences. I commend the law enforcement officers that investigated this case and the victim who stood up to her abuser.”
The case was investigated by the Coeur d’Alene Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted in federal court because the crime occurred on the Coeur d’Alene Indian Reservation and the defendant is an enrolled member of the Coeur d’Alene Tribe.
Pittsburgh, Detroit men sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four individuals, including three Michigan natives, were sentenced today for cocaine and oxycodone trafficking offenses, United States Attorney William J. Ihlenfeld, II, announced.
Richard Speciale, 53, of Pittsburgh, Pennsylvania, was convicted and sentenced today for selling cocaine within the Northern District of West Virginia and the Western District of Pennsylvania. He pled guilty today to one count of “Conspiracy to Distribute Over Five (5) Kilograms of Cocaine,” following an investigation by the Pennsylvania Office of Attorney General and the Federal Bureau of Investigation. He was sentenced today to 144 months in prison.
Ryan Gardner, 28, of Detroit, Michigan, was sentenced today to 70 months in prison for selling oxycodone in November 2014 in Monongalia County, West Virginia. He pled guilty in March 2015 to one count of “Distribution of Oxycodone,” following an investigation by the Mon Valley Drug and Violent Crime Task Force.
Terrell Moore, 36, of Detroit, Michigan, was sentenced today to 63 months in prison for selling oxycodone in January 2015 in Monongalia County, West Virginia. He pled guilty in March 2015 to one count of “Distribution of Oxycodone,” following an investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative.
Ronnie Days, 24, of Westland, Michigan, was sentenced today to 41 months in prison for selling oxycodone in August 2014 in Monongalia County, West Virginia. He pled guilty in January 2015 to one count of “Distribution of Oxycodone,” following an investigation by the Mon Valley Drug and Violent Crime Task Force.
Assistant U.S. Attorney Andrew Cogar prosecuted Speciale, Assistant U.S. Attorney Shawn Morgan prosecuted Moore, and Assistant U.S. Attorney Zelda Wesley prosecuted Gardner and Days on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Pine Ridge Man Convicted in Child Abuse CaseRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that Timothy Kenneth White Plume, age 36, of Pine Ridge, South Dakota, was found guilty of Felony Child Abuse and Neglect, and Assault Resulting in Serious Bodily Injury, at the conclusion of a seven-day federal jury trial in Rapid City, South Dakota. The jury returned the verdict on July 14, 2015.
The maximum penalty on the child abuse charge is 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The maximum penalty on the assault charge is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The conviction stems from White Plume assaulting a three-month old baby in December of 2012 at Pine Ridge, causing multiple skull fractures, catastrophic brain injury, broken ribs, and a broken leg.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Division of Criminal Investigation.
Assistant U.S. Attorneys Sarah B. Collins and Gregg S. Peterman prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Painting Contractor Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONALD S. BATTAGLIA, 66, of Stratford, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to filing false tax returns.
According to court documents and statements made in court, BATTAGLIA is the sole owner of Custom Painting, which provides interior and exterior painting services primarily in Fairfield County. During the 2008 through 2012 tax years, BATTAGLIA failed to provide his tax return preparer with information concerning an additional $867,656 in gross receipts he received in those years. The total tax reported as due on the five returns was $46,687, but BATTAGLIA willfully failed to report and pay an additional $277,582 in federal income taxes for those five years.
The investigation revealed that BATTAGLIA’s clients typically paid him by check. BATTAGLIA then cashed the checks at his bank and received currency for the full value of the check, or he made a split deposit, receiving some cash and depositing the balance into his business account. The amounts of the transactions were typically less than $10,000.
BATTAGLIA pleaded guilty to one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years and a fine of up to $250,000. Judge Bolden scheduled sentencing for October 9, 2015.
BATTAGLIA has repaid the IRS $277,582 in restitution. He is still required to pay substantial penalties and interest that have accrued on his unpaid taxes.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed with the assistance of Law Student Intern Lisa Wang.
Notice of Court ProceedingsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina – Sentencings have been scheduled in United States v. Lance Wright, 3:13-970; United States v. Michael Bartley, 3:13-036, United States v. Robert A. “Tony” Williams, 3:13-971; and United States v. Phil D. Mims, 3:13-971. United States District Court Judge David C. Norton will preside over the proceeding.
WHEN: Tuesday, July 21, 201511:00 a.m. - Wright
WHERE: Hollings Judicial Center 83 Meeting Street
12:00 p.m. - Bartley
2:00 p.m. - Williams
2:30 p.m. - Mims
Courtroom #2
Charleston, SC####
Norwalk Man Who Illegally Sold Firearms Sentenced to 2 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on July 17, 2015, STEPHEN HEROLD, 26, of Norwalk, was sentenced by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for illegally selling firearms.
According to court documents and statements made in court, in October and November, 2013, HEROLD and Raul Caban-Martes sold three firearms and a bullet proof vest to an individual working with law enforcement. One of the firearms had been reported stolen and another had an obliterated serial number.
HEROLD has been detained since his arrest on July 8, 2014. On April 15, 2015, he pleaded guilty to one count of conspiracy to engage in the business of dealing in firearms without a license.
Caban-Martes pleaded guilty to the same charge and, on March 9, 2015, was sentenced to 40 months of imprisonment.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
North Carolina man sentenced for failing to update sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Convicted sex offender Bruce Alfonso Robinson, II, 32, of Greensboro, North Carolina, was convicted and sentenced today to 24 months in prison for failing to update his sex offender registration status, United States Attorney William J. Ihlenfeld, II, announced.Robinson was convicted of “Solicitation to Commit Second Degree Rape” in 2004 in the Superior Court of Guilford County, North Carolina. As a result of that conviction, he was required to register as a sex offender. He was further convicted of “Failure to Register as a Sex Offender” in the Circuit Court of Marion County, West Virginia in April 2011. Subsequently, Robinson relocated from West Virginia and returned to North Carolina without updating his sex offender registration status.
Robinson pled guilty today to one count of “Failure to Update Sex Offender Registration.”
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge Irene M. Keeley presided.
North Carolina Man Indicted in East Texas Fraud SchemeRead the Press Release
PLANO, Texas – A 27-year-old Morganton, NC man has been indicted in connection with an oil and gas scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Justin Spearman was indicted by a federal grand jury on July 15, 2015 and charged with wire fraud and three counts of aggravated identity theft. Spearman appeared before U.S. Magistrate Judge Don D. Bush today and will remain in federal custody pending trial. Spearman was arrested on July 6, 2015, in McKinney after he arrived in Texas to pick up a check from a victim.
According to the indictment, in June 2015, Spearman is alleged to have devised and executed a scheme to defraud another individual by filing fraudulent Assignments of Overriding Royalty Interest (ORI)s in Greeley Colorado, and attempting to do so in Cheyenne, Wyoming, that actually belonged to other persons, one of which was the owner of a royalties company located in Collin County, Texas.
If convicted, Spearman faces up to 20 years in federal prison for the wire fraud charge and two years to be served consecutively on the aggravated identity theft counts.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chris Eason.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York Man Charged with Making Threatening Phone Calls to Flagstaff Elementary SchoolsRead the Press Release
FLAGSTAFF, Ariz. – Viktor Lisnyak, 29, of Staten Island, N.Y., was arrested by federal agents on July 17, 2015, and charged via complaint with five counts of transmitting threatening communications in interstate commerce.
The affidavit supporting the complaint alleges that, on multiple occasions between March 2015 and May 2015, an unknown caller placed telephone calls to elementary schools in Flagstaff, Ariz., and threatened to “kill the children.” The affidavit further alleges that, even though this caller used fictitious names and fictitious email accounts in an attempt to conceal his true identity, investigators were eventually able to identify the defendant, Mr. Lisnyak, as the person who placed the calls.
Each violation is punishable by a maximum term of imprisonment of five years, a maximum fine of $250,000, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation in this case was conducted by the Flagstaff Police Department and the Federal Bureau of Investigation. The prosecution is being handled by Camille Bibles, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: MJ-15-004179-PCT-DMF
RELEASE NUMBER: 2015-053_Lisnyak
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Montana Man Sentenced for Illegally Possessing FirearmsRead the Press Release
COEUR D'ALENE - Jesse Carey Barker, 31, of Roll, Arizona, was sentenced today to 48 months in prison for possession of firearms by a prohibited person, U.S. Attorney Wendy J. Olson announced. Visiting U.S. District Judge William Fremming Nielsen also ordered Barker to serve three years of supervised release and to forfeit the firearms.
According to the court documents, on October 7, 2013, Barker was stopped for driving under the influence. Officers were able to see a rifle with a bayonet attached to it in plain view through the car window. After completing field test, a vehicle search was completed and a loaded handgun was located under the passenger's front seat beside an open beer. It was also determined that the rifle was loaded.
The case was investigated by Idaho State Police (ISP).
Modesto Man Sentenced to 25 Years in Prison for Production of Child Pornography and Attempted Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. — Ricky Davis, 36, of Modesto was sentenced today to 25 years in prison by United States District Judge Anthony W. Ishii, United States Attorney Benjamin B. Wagner announced. On March 25, 2015, Davis was found guilty pursuant to a five-day jury trial on separate counts of production of child pornography, as well as the attempted sex trafficking of a minor.
According to evidence presented at trial, in September 2011 Davis invited a 13-year-old minor to his home for the ostensible purpose of giving her a tattoo. After her arrival, Davis instead took sexually explicit photographs of her and posted them online within an advertisement for prostitution. Davis also provided the minor’s contact information to someone responding to this advertisement. An analysis of digital evidence revealed the photographs to have been on Davis’s cellphone and computer, and metadata from the pictures established that they were taken from a cellphone matching the make and model of Davis’s phone.
U.S. Attorney Wagner stated: “Targeting children for sexual exploitation is disturbing and unacceptable. The U.S. Attorney’s office is committed to combating these crimes and guarding the safety and well-being of every child.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Sacramento Police Department, and the California Highway Patrol, all members of the FBI’s Sacramento-based Child Exploitation Task Force, as well as the South San Francisco Police Department and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Brian W. Enos and Alyson A. Berg prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Modesto Man Sentenced for 2 Schemes that Defrauded Investors of over $1 MillionRead the Press Release
FRESNO, Calif. — Xue Heu, 38, of Modesto, was sentenced today to five years and three months in prison, to be followed by three years of supervised release, for investment fraud schemes in Fresno and Texas, United States Attorney Benjamin B. Wagner announced.
United States District Judge Lawrence J. O’Neill also ordered Heu to pay $1,166,366 in restitution to victims of the two fraud schemes.
According to court documents, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase. In his plea agreement, Heu admitted to defrauding investors of approximately $412,896.
According to court documents, between October 1, 2013, and December 31, 2013, Heu and others executed a second scheme to defraud real estate investors. Heu, using the alias “Michael Chan,” purported to be a representative of the Troubled Asset Relief Program (TARP) and an authorized seller of property that had been foreclosed on by the United States government. Heu and a co-defendant lured investors into placing funds into escrow accounts established by another co-defendant and then converted the money to their own use. In his plea agreement, Heu admitted he was responsible for a loss to victims of $762,897. This case was originally charged in the Western District of Texas, San Antonio Division, and was transferred to the Eastern District of California for Heu’s guilty plea and sentencing.
These cases were the product of investigations by the Federal Bureau of Investigation in Modesto, California and San Antonio, Texas and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Henry Z. Carbajal III prosecuted the cases.
Modesto Man Pleads Guilty in Multistate Conspiracy to Sell Counterfeit Erectile-Dysfunction DrugsRead the Press Release
FRESNO, Calif. —Anthony Pollino, 37, of Modesto, pleaded guilty today to one count of trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
According to court documents, Pollino, along with several co-defendants, conspired to obtain counterfeit copies of the erectile-dysfunction drugs Viagra®, Cialis®, and Levitra®, along with their packaging, and sell them to consumers throughout California and in the Las Vegas, Nevada area. The defendants assured buyers their products were genuine when they were actually cheaply made foreign copies of the drugs. The defendants operated as a business, calling their operation the “California Confidence Company.” Pollino admitted that the value of the counterfeit products attributable to him as over $350,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael G. Tierney and Henry Z. Carbajal III are prosecuting the case.
Pollino is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on October 5, 2015. He faces a maximum statutory penalty of 20 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Los Angeles County Man Arrested for Participation in $2.5 Million Unemployment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Kyn K. Naope, 39, of Sherman Oaks, was arrested today for participating in an unemployment fraud scheme with losses of over $2.5 million United States Attorney Benjamin B. Wagner announced.
A six-count indictment, returned by a federal grand jury earlier this month, alleges that between January 2008 and March 2011, Naope and others involved in the scheme registered fictitious employers with the California Employment Development Department (EDD) and then recruited other individuals to pose as laid-off employees of those companies. These fake employees would then file for and collect unemployment insurance benefits based on the wages reported to EDD by the fictitious employers.
This is the third indictment brought as part of this investigation. A separately pending 20-count indictment charged Kenneth Parks, Michael Taylor Sr., and three others with involvement in the fraud scheme. Parks pleaded guilty and was sentenced to five years in prison, while Taylor pleaded guilty and is awaiting sentencing. (2:12‑cr-375 TLN). Another indictment charged Donye Marcel Mitchell Sr. for his involvement in the fraud scheme, and he was sentenced to four years in prison (2:11-cr-085 GEB).
These cases are the product of an investigation by the United States Department of Labor, Office of Inspector General and California EDD – Criminal Investigations Division. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
If convicted, Naope faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lapwai Felon Admits to Illegal Firearm PossessionRead the Press Release
COEUR D'ALENE - Daniel Paul Wilson, 26, of Lapwai, Idaho, pleaded guilty on July 20, 2015, to possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced. Wilson was indicted by a federal grand jury in Coeur d'Alene on March 17, 2015.
According to court documents, Wilson admitted that on November 15, 2014, he possessed a shotgun having a barrel length of less than 18 inches and overall length of less than 26 inches. It is illegal to possess sawed off shotguns or similar such firearms unless it is registered in the National Firearms Registration and Transfer Record.
The charge of Possession of an Unregistered Firearm is punishable by up to ten years in prison, a maximum fine of $250,000.00, and up to three years of supervised release.
Sentencing is set for October 20, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Nez Perce Tribal Police Department, the Nez Perce County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Lancaster County, Pennsylvania, Man Pleads Guilty to Interstate Burglary SchemeRead the Press Release
TRENTON, N.J. – A Lancaster County, Pennsylvania, man today admitted his role in transporting goods stolen through a string of commercial burglaries throughout northern and southern New Jersey, U.S. Attorney Paul J. Fishman announced.
Eliezer Medina, 37, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of conspiracy to transport stolen goods in interstate commerce.
According to documents filed in this case and statements made in court:
From November 2013 through August 2014, Medina conspired with his brother, Jose Medina, 38, to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and then transport the stolen money across state lines. He admitted burglarizing at least three stores in Paramus, New Jersey, and Pennsauken, New Jersey, and to stealing approximately $625,000. The burglaries followed the same general pattern, including advance surveillance, disabling of the alarm systems and the use of pry-bars and vertical cuts to gain access to the stores’ safes.
The conspiracy charge to which Medina pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. As part of his plea agreement, Medina must pay $625,000 in restitution. Sentencing is scheduled for Oct. 22, 2015.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the FBI in Philadelphia Branch, under the direction of Special Agent in Charge Edward J. Hanko, with the investigation leading to today’s guilty plea. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the General Crimes Unit in Newark.
Jose Medina remains charged by complaint with conspiracy to transport stolen goods in interstate commerce. The charges and allegations in the complaint are merely accusations, and the defendant remains innocent unless and until proven guilty.
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Key Member of Scheme that Illegally Sought $20 Million Worth of Expensive Anti-Psychotic Drugs Sentenced to 15 Years in PrisonRead the Press Release
LOS ANGELES – One of the leaders of a conspiracy linked to a sham Glendale medical clinic was sentenced today to 15 years in federal prison for his role in a $20 million scheme to defraud Medicare and Medi-Cal by, among other things, fraudulently prescribing expensive anti-psychotic medications and then re-billing the government for those drugs over and over.
Artak Ovsepian, 33, of Tujunga, one of the leaders of the conspiracy who oversaw the acquisition of drugs with bogus prescriptions, was sentenced by United States District Judge S. James Otero.
Calling the offense “despicable” and “horrific,” Judge Otero noted that the scheme “preyed on some of those most vulnerable members of society, from the mentally ill, to down-and-out veterans, to elderly victims whose identities were stolen, which then interfered with their ability to obtain medical treatment” that they truly needed.
Following a jury trial before Judge Otero in February 2014, Ovsepian was found guilty of conspiracy to commit health care fraud, aggravated identity theft, conspiracy to misbrand pharmaceutical drugs, false statements to the federal government, and conspiracy to use other persons’ identification documents in furtherance of fraud.
Ovsepian was one of three people found guilty at trial, and one of 16 who have been convicted in relation to the scheme run out of Manor Medical Imaging in Glendale.
The operators of Manor Medical employed an unlicensed medical practitioner to write bogus prescriptions using an American doctor’s name and license number, and had close relationships with pharmacies and a fraudulent drug wholesale company that were used to funnel prescription drugs back to the pharmacies participating in the scheme.
Employees of Manor Medical generated thousands of prescriptions for identify theft victims – such as elderly Vietnamese beneficiaries of Medicare and Medi-Cal, military veterans who were recruited from drug rehab programs, and denizens of Skid Row. Members of the conspiracy created or doctored patient files to make it falsely appear the drugs were necessary and the patients were legitimately treated. After the prescriptions were filled at pharmacies and paid for by Medicare and Medi-Cal, the drugs were sold on the black market and redistributed to pharmacies, where the drugs would be subject to new claims made to Medicare and Medi-Cal as though they were new bottles of drugs.
The case was the first in the nation involving an organized scheme to defraud government health care programs through fraudulent claims for expensive anti-psychotic medications. Judge Otero noted that the conspiracy was “particularly devious” because the participants believed they targeted “under-the-radar” drugs in an effort to evade the attention of law enforcement.
Ovsepian “held a leadership role in a complex and pervasive scheme to manipulate and steal the identities of the poor and vulnerable, to defraud essential government programs of more than $20 million, and to cover up those crimes through systematic lies and deception,” federal prosecutors wrote in a sentencing memorandum previously filed with the court.
The scheme generated fraudulent billings of more than $20 million, of which Medi-Cal and Medicare actually paid more than $9 million.
Previously in this case, another leader of the conspiracy – Lianna “Lili” Ovsepian, 34, of Tujunga, the manager and owner of Manor Medical – was sentenced to eight years in prison after pleading guilty to health care fraud charges (see: http://www.justice.gov/usao/cac/Pressroom/2014/107.html).
Following last year’s trial at which Artak Ovsepian was found guilty, Judge Otero said, “The scope of the fraud was breathtaking.” The Judge added that the defendants “preyed upon the poor [and] used them as pawns.”
At last year’s trial, Artak Ovsepian was one of three people that were found guilty. The other two were:
Dr. Kenneth Johnson, 48, of Ladera Heights – who served as the face of Manor Medical with pharmacists and auditors from Medicare and Medi-Cal, and who pre-signed thousands of blank prescriptions that were filled out by co-conspirators – who is scheduled to be sentenced by Judge Otero on November 5; and
Nuritsa Grigoryan, 49, of Glendale – who holds an Armenian medical license and who pretended to be an American doctor when she saw homeless “patients” at the clinic and filled out the bogus prescriptions pre-signed by Dr. Johnson – who fled the United States after being found guilty and remains a fugitive.
The scheme centering on Manor Medical also involved pharmacies in and around the San Gabriel Valley. The conspiracy was essentially a “prescription harvesting” scheme in which Medicare and Medi-Cal beneficiaries were recruited or had their identities stolen, the beneficiary information was used to bill Medicare and Medi-Cal for millions of dollars of illegitimate medical services and prescriptions, and the drugs that were dispensed by the pharmacies were diverted to black market wholesalers and back to the pharmacies so the drugs could be used to submit new bills to Medicare and/or Medi-Cal as though the drugs had never been dispensed.
The primary pharmacy involved in the case, Huntington Pharmacy in San Marino, was operated by a Pasadena couple whose business grew dramatically due its affiliation with Manor Medical, including Medi-Cal claims that jumped from $50,000 in 2009 to approximately $1.5 million in 2010. One of the owners of the pharmacy, Phic Lim, is scheduled for trial on September 29. His wife, Theana Khou, previously pleaded guilty as part of a joint resolution with another case filed against her and her husband.
The investigation in this case, which was called Operation “Psyched Out,” was conducted by the San Marino Police Department; the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; the United States Food and Drug Administration, Office of Criminal Investigations; IRS-Criminal Investigation; the United States Department of Health and Human Services, Office of the Inspector General; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Glendale Police Department, Organized Crime Team; and the California Department of Health Care Services, Audits and Investigations Branch.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Glendale Police Department, Organized Crime Team; and the California Department of Health Care Services, Audits and Investigations Branch.
Justice Department Reaches Settlements with Multiple Health Care Providers to Stop Discrimination Against Persons with Disabilities Under the Barrier Free Health Care InitiativeRead the Press Release
The Justice Department announced today that, as part of its Barrier Free Health Care Initiative, it has reached three additional settlements with health care providers to ensure that they are complying with the Americans with Disabilities Act (ADA). The announcement comes as the department marks the 25th anniversary of the ADA. The Department of Justice, including the nation’s U.S. Attorneys and the Civil Rights Division, are proud to play a critical role in enforcing the ADA, working towards a future in which all the doors are open to equality of opportunity, full participation, independent living, integration and economic self-sufficiency for persons with disabilities.
The new settlement agreements—entered into by the U.S. Attorney’s Office for the Eastern District of Virginia and the U.S. Attorney’s Office for the Eastern District of Michigan—address the requirements of the ADA for health care providers, such as hospitals, medical clinics, nursing homes, mental health facilities and doctor’s offices, to, among other things, provide effective communication to people who are deaf or have hearing disabilities in the provision of medical services. In addition, the U.S. Attorney’s Office for the Southern District of New York recently filed a lawsuit against, Emmanuel Asare, M.D. and Springfield Medical Aesthetic PC d/b/a Advanced Cosmetic Surgery of New York for failures to provide medical treatment for an individual with HIV.
“Eliminating disability-based discrimination in health care is a priority for the department under the Americans with Disabilities Act,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Twenty five years after the passage of the ADA, we fully expect that all health care providers will provide equal access to people with disabilities.”
In the Fairfax Nursing Center (FNC) settlement, entered into by the U.S. Attorney for the Eastern District of Virginia on July 6, 2015, the U.S. Attorney’s Office for the Eastern District of Virginia entered into a settlement agreement with the Fairfax Nursing Center requiring it to:
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adopt policies and procedures that ensure that individuals who are deaf or hard of hearing—patients and companions—receive auxiliary aids and services that insure effective communication;
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train its staff on the ADA’s effective communication requirements;
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pay $80,000 to the complainants and $5,000 to the United States in a civil penalty; and
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establish a fund of $12,500 to sponsor training on the ADA’s requirements for others in the Virginia nursing facility industry.
The investigation began with a complaint alleging that FNC violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to two individuals who are deaf (two family members of a patient) during critical interactions relating to the patient’s medical care.
In two matters involving individual medical practices in the Eastern District of Michigan, the U.S. Attorney’s Office entered into settlement agreements with the office of Dr. Srinivas Mukkamala and the office of Dr. Arshad Pervez, to ensure that they provide sign language interpreters and other appropriate auxiliary aids and services for patients and companions who are deaf or hard of hearing.
The Department of Justice’s Barrier-Free Health Care Initiative is a partnership of the nation’s U.S. Attorneys and the Civil Rights Division. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 45 U.S. Attorney’s Offices. Today’s Barrier-Free Health Care Initiative settlements may be found at www.ada.gov/settlemt.htm. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm.
The department has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm and publications specific to health care providers, HIV discrimination and effective communication with people with hearing and vision disabilities, as well as publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov and www.ada.gov/aids. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
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Justice Department Reaches Agreements with Three Counties Across the Country to Increase AccessibilityRead the Press Release
As part of the Justice Department’s year-long celebration marking the 25th anniversary of the American with Disabilities Act (ADA)—ADA 25: Advancing Equal Access—the department announced today the signing of three agreements with counties to improve access to all aspects of civic life for persons with disabilities. The agreements, reached with the Champaign County, Illinois; Merced County, California; and Yakima County, Washington, are all 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 ADA.
The PCA initiative ensures that people with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society. 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 these three agreements, the department has entered into nine PCA agreements this year alone, and more than 217 agreements since the initiative began.
Under the agreements announced today, the counties will remove barriers to accessibility in buildings, such as government office buildings providing services to its citizens, courthouses, police or sheriff offices, jails, libraries, recreation centers, community centers, polling places, parks and fairgrounds. The agreements also require the counties to:
- make physical modifications to facilities so that parking, routes into the buildings, entrances, public telephones, restrooms, service counters and drinking fountains are accessible to people with disabilities, as well as make sure 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 municipalities’ programs, services and activities;
- train staff in using their state relay service for telephone communications;
- develop a method for providing emergency management policies and procedures for persons with disabilities, including preparation, notification, response and clean-up;
- develop a method for providing information for interested persons with disabilities concerning the existence and location of the municipalities’ accessible services, activities and programs;
- 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; and
- implement a plan for the accessibility of sidewalks and curb cuts within their borders.
“The story of civil rights for persons with disabilities is the story of having to fight paternalistic laws and ill-advised social mores,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Individuals with disabilities faced the indignities of not being able to enter public buildings or have equal access to the services, programs and activities offered by their local governments; they were barred from attending schools and getting jobs. Until, that is, the passage of the Americans with Disabilities Act. As we celebrate the 25th anniversary of this major civil rights law, the department renews its commitment to work with state and local governments to ensure that their citizens with disabilities attain equal access to all of their programs, activities and services.”
For more information about the ADA, today’s agreement and the PCA 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 Asks Federal Court to Shut Down Fraudulent New York Tax Return BusinessRead the Press Release
The United States filed a complaint seeking to permanently bar a former Staten Island, New York, man and the tax preparation business he operates from preparing federal tax returns for others, the Justice Department announced today.
The civil complaint against Ranti Azeez-Taiwo and his business, Lot Associates Inc., was filed in the U.S. District Court for the Eastern District of New York. The complaint alleges that Azeez-Taiwo prepares federal income tax returns for customers that understate their correct tax liabilities. The government’s suit alleges that the understatements are the result of fabricated or inflated itemized deductions, particularly charitable deductions and unreimbursed employee business expense deductions, which are claimed on Schedule A, and sole-proprietorship business expenses, which are claimed on Schedule C. According to the complaint, an undercover Internal Revenue Service (IRS) agent provided Azeez-Taiwo with information that should have resulted in a tax return showing more than $500 in tax due to be paid, but Azeez-Taiwo instead prepared a return claiming a refund of more than $500.
The suit contends that in January 2013, a grand jury indicted Azeez-Taiwo on 30 counts of willfully aiding and assisting in the preparation of false federal income tax returns for tax years 2006 through 2010. The complaint further alleges that Azeez-Taiwo was ultimately convicted on multiple counts and on March 6, 2014, was sentenced to serve 18 months in prison. This civil suit seeks to bar Azeez-Taiwo from ever preparing federal tax returns for others again.
The IRS estimates that Azeez-Taiwo has prepared more than 7,000 tax returns since 2006, the complaint alleges. The complaint further contends that the IRS has audited or examined over 250 returns prepared by Azeez-Taiwo and the total tax deficiency for those returns alone exceeds $773,000. According to the complaint, Azeez-Taiwo’s conduct could have caused more than $773,000 in harm to the U.S. Treasury.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ironworkers Business Manager Sentenced to 230 Months for Racketeering ConspiracyRead the Press Release
PHILADELPHIA – Joseph Dougherty, 73, of Philadelphia, former Business Manager/Financial Secretary/Treasurer of Ironworkers Local 401, was sentenced today to 230 months in prison for his role in a racketeering conspiracy involving a dozen members of Ironworkers Local 401, announced United States Attorney Zane David Memeger. Dougherty was found guilty, on January 20, 2015, of RICO conspiracy, malicious damage to property by means of fire, use of fire to commit a felony, attempted malicious damage to property by means of fire, and conspiracy to damage to property by means of fire. His 11 co-defendants in the case pleaded guilty. In addition to the prison term, U.S. District Court Judge Michael Baylson ordered three years of supervised release, $558,041.66 in restitution, and a $600 special assessment.
Dougherty and his co-defendants engaged in a systemic pattern of extortions, arsons, and assaults in an attempt to force non-union companies to hire union ironworkers. The union’s business agents would approach construction foremen at those work sites and imply or explicitly threaten violence, destruction of property, or other criminal acts unless union members were hired. The defendants relied on a reputation for violence and sabotage, which had been built up in the community over many years, in order to force contractors to hire union members. The defendants created “goon” squads, composed of union members and associates, to commit assaults, arsons, and destruction of property. One such squad referred to itself as the “The Helpful Union Guys,” “T.H.U.G’s.”
The jury convicted Dougherty for his participation in the 25 charged acts of arson and extortion in the racketeering conspiracy. Among the charged incidents included an arson at the Quaker Meetinghouse in Philadelphia, an arson at a warehouse under construction on Grays Avenue in Philadelphia, and an attempted arson of a commercial complex under construction in Malvern. Dougherty personally handed co-defendant James Walsh an acetylene torch to commit the Grays Avenue arson. On October 12, 2012, when co-defendants James Walsh and William Gillin arrived at the Malvern construction site with an acetylene torch which they intended to use to damage the site, FBI and local law enforcement officers arrested Walsh and Gillin before they could light the torch. Prior to their arrest, on October 9, 2012, Dougherty gave the greenlight for Walsh and Gillin to proceed with the arson by stating “that’s good. Alright. He [Walsh] just got to be careful.”
“The sentence in this case serves as a reminder that corrupt union practices and bullying tactics, like those employed in this case, will be met with severe consequences,” said Memeger. “Fear, intimidation and violence should not be a part of any union’s operational handbook and will not be tolerated in this district.”
During the extortion of a contractor working on an apartment building near the intersection of 31st and Spring Garden in Philadelphia, Dougherty told union business agent Edward Sweeeny that if the non-union contractor erected the building “and gets away with it, we’re tearing it the [expletive] down in broad, in broad daylight, broad [expletive] daylight. I’ll rent the [expletive] crane from work reservations. So, we’re not losing in center city, man. . . . We’ll take it right the [expletive] back down again. And then we’ll load it out, rent the truck, and we’ll steal the iron.”
During a July 8, 2013 phone call, Dougherty summarized his motivation for committing these crimes by describing the financial condition of the union: “I look at the general fund, ah the health fund. It's (expletive) hurting. And we’re hurting it every hour that the carpenter steals from us hurts. Every hour non-union steals from us hurts it, and we keep pumping more money into it, and that keeps us from getting jobs.”
The case was investigated jointly by the Federal Bureau of Investigation and Department of Labor Office of Inspector General, with assistance provided by the Philadelphia Police Department Corruption Task Force, East Whiteland Township Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Employee Benefit Security Administration. It is being prosecuted by Assistant United States Attorney Robert Livermore with legal assistance from Gerald Toner, Acting Deputy Chief for Labor-Management Racketeering, Organized Crime and Gang Section at the Department of Justice.
Houston Woman Gets 17 Years for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON – A 21-year-old female resident of Houston has been ordered to federal prison for a total of 204 months following her convictions of production, distribution and possession of child pornography involving a toddler, announced U.S. Attorney Kenneth Magidson. Julia Michelle Morris pleaded guilty to the charges on April 27, 2015, admitting she exploited a 19-month-old child to produce pornography for an unidentified third party for financial gain.
Just moments ago, U.S. District Judge Vanessa Gilmore handed Morris the sentence taking into consideration all the facts and circumstances, specifically that Morris committed the crime for financial gain and sexually exploited the child even though there is no indication Morris is a sexual predator. Morris will also have to serve 10 years of supervised release following completion of that prison term. In handing down the sentence, Judge Gilmore noted that her sentence took into consideration that Morris will be incarcerated past the victim’s 18th birthday.
Morris came to the attention of law enforcement after her boyfriend discovered her activities. He had been looking through her cell phone and saw child pornography images and messages in a social media application. He was so horrified by what he saw that he contacted law enforcement and turned her phone over to them. Authorities then obtained and executed a federal search warrant on the device.
In the images, Morris is seen holding the child while spreading the child’s legs to expose her genitalia in a lewd and lascivious manner. Another image depicts Morris with her face in between the child’s legs appearing to be performing oral sex on the child.
Morris admitted to victimizing a child under the age of two and sending the images to an unknown third party. She expected to receive $8,000 for the images but was unable to collect the money since the phone was intercepted by her boyfriend.
The charges against Morris are the result of an investigation conducted by members of the Innocent Images Unit of the Houston FBI, including members of the Harris County Sheriff’s Office, which focuses its attention on investigating offenses involving the exploitation of children via the Internet.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, 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. Led by United States Attorneys’ Offices, 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.
Housing Authority of Los Angeles County and the Cities of Lancaster, California, and Palmdale, California, Agree to Settle Fair Housing Claims in the Antelope Valley for $2 MillionRead the Press Release
Agreement Resolves Allegations that Defendants Discriminated Against Section 8 Voucher Holders on the Basis of Race
The Justice Department today announced a settlement with the Housing Authority of Los Angeles County (HACoLA), and the cities of Lancaster, California, and Palmdale, California, to resolve allegations that these parties targeted African Americans with discriminatory enforcement of the Section 8 housing choice voucher program. The parties have agreed to enter into a court-enforceable agreement that will provide broad relief meant to ensure unbiased enforcement of the voucher program so that African-American voucher holders in the Antelope Valley are not targeted because of their race.
HACoLA, a public housing agency that administers the Section 8 voucher program in Los Angeles County, has agreed to pay $1,975,000 in monetary damages on behalf of itself and the cities, and a $25,000 civil penalty to the United States. When combined with the department’s previously announced settlement with the Los Angeles County Sheriff’s Department (LASD) for related conduct, this means that a total of $2,675,000 is available to compensate individuals who have been harmed by the discriminatory enforcement of the voucher program. In addition, many voucher holders who were discriminated against will be eligible to have voucher terminations removed from their public housing record, and a few of those who were improperly terminated will be reinstated to the voucher program.
“Housing choice vouchers, also known as Section 8 vouchers, are meant to help families find homes in neighborhoods that provide greater opportunities for them and their children,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Such families should be welcomed in every community, including those in the Antelope Valley. No family living in Los Angeles County should fear having housing authority or law enforcement personnel show up at their homes simply because they are African American and use vouchers to pay their rent.”
“Local government officials worked with the Los Angeles County Housing Authority and the Sheriff’s Department to subject African-American families to discriminatory enforcement actions in an effort to discourage them from using Housing Choice vouchers to live in Lancaster and Palmdale,” said U.S. Attorney Eileen M. Decker of the Central District of California. “This type of discrimination is fundamentally wrong and is inconsistent with American values of freedom and equality. This settlement, together with an earlier settlement with the Sheriff’s department, will ensure it does not recur, and will also provide more than $2.6 million to compensate those harmed.”
The Justice Department’s complaint, filed today in the U.S. District Court of the Central District of California, alleges that between the years 2004 and 2011, in direct response to racially-based public opposition to the growing presence of African-American voucher holders living in Lancaster and Palmdale, the cities initiated and teamed with HACoLA and LASD in a targeted campaign of discriminatory enforcement against African-American voucher holders in order to discourage and exclude them and other African Americans from living in the cities. City officials contracted with HACoLA for additional investigative services and devoted substantial financial resources to voucher program enforcement efforts, directed and encouraged LASD deputies to become involved in HACoLA’s enforcement efforts, fueled public opposition to the voucher program by making disparaging statements about voucher program participants and discouraged landlords from renting to voucher holders. There was no legitimate law enforcement or programmatic justification for these types of extraordinary enforcement efforts.
HACoLA and LASD used their resources to effectuate the cities’ mutual discriminatory goals and to carry out their own discriminatory motives by disproportionately subjecting African-American voucher holders in the cities to more intrusive and intimidating compliance checks and referring those households for termination from the voucher program at greater rates than white voucher holders living in the cities, or any voucher holders living elsewhere in the county of Los Angeles.
Pursuant to the agreement announced today, HACoLA will undertake reforms to its voucher program enforcement protocol, and will cease, for at least six years, the use of unannounced field compliance checks. HACoLA also will not share personal information about voucher holders with any third party, including LASD or the cities.
Lancaster and Palmdale have agreed to enforce their ordinances and process complaints in a way that treats voucher holders and their landlords no differently from other renters and landlords. Each city will develop procedures for handling discrimination complaints, and have agreed not to seek identifying information regarding voucher holders. Each city will implement a fair and affordable marketing plan to make clear that the cities are open to all regardless of race, and each will designate a person or entity to oversee compliance and receive complaints of alleged discrimination, among other things. Employees of both cities and HACoLA are required to participate in fair-housing training to prevent discriminatory conduct in the future.
The department estimates that hundreds of African-American voucher holders were subjected to the defendants’ discriminatory conduct, including many of the approximately 200 who were interviewed in the course of the department’s investigation. The agreement announced today outlines a process for compensating victims. This process may take a year or longer. African-American voucher holders who believe they may have been discriminated against by HACoLA, LASD and/or the cities during a compliance check in the Antelope Valley between 2004 and 2011 should contact the Justice Department at 1-800-896-7743, option 98 or e-mail the department at [email protected].
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 elsewhere can contact the Justice Department at 1-800-896-7743, or e-mail [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
HACoLA Settlement Agreement
HACoLA Complaint
Hartford Drug Trafficker Sentenced to 9 Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that TRAVALE GIVENS, also known as “Newport,” 34, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 108 months of imprisonment, followed by three years of supervised release, for illegally possession of a firearm.
According to court documents and statements made in court, in February 2014, Hartford Police received information that GIVENS was selling crack cocaine from an apartment on South Street, and that GIVENS was in frequent possession of a handgun. On February 27, 2014, an individual working under the direction and supervision of Hartford Police and the Drug Enforcement Administration purchased a quantity of crack from GIVENS.
On March 7, 2014, law enforcement officers stopped a car that GIVENS was operating on New Park Avenue. A search of GIVENS’ person revealed approximately 245 grams of cocaine concealed in his pants. A subsequent search of GIVENS’ South Street residence revealed a loaded .380 Ruger LCP pistol with an altered serial number, assorted ammunition, approximately 81 grams of crack cocaine, a digital scale and other drug paraphernalia.
GIVENS has been detained since his arrest on March 7, 2014. On April 23, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.
GIVENS’ criminal history includes several felony convictions, including a conviction for first degree assault.
This matter was investigated by the Hartford Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hampshire county man convicted of filing false corporate tax returnsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph H. Frye, 71, of Augusta, West Virginia, was convicted today of filing false corporate tax returns, United States Attorney William J. Ihlenfeld, II, announced.
Frye pled guilty today to a criminal Information charging him with one count of “Filing False Income Tax Return.” As the founder and majority owner of Jolin Concrete Industries, Inc., a company located in Hampshire County, West Virginia, Frye repeatedly converted corporate profits for his own personal use and understated the company’s taxable income. Specifically, Frye admitted that he filed an income tax return for tax year 2012 that understated the company’s taxable income by $187,322.91.
Frye faces up to three years in prison and a fine of up to $100,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Gulfport Energy Employee pleads guilty, sentenced for negligently discharging pollutants into West Cote Blanche BayRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced a clarification related to an oilfield production company employee’s guilty plea and sentencing for dumping polluted water into West Cote Blanche Bay.
Brian Osborn, 43, of Lafayette, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of negligent discharge of pollutants. Last Wednesday, he was sentenced to one day in prison and one year of supervised release, and he was also ordered to perform 200 hours of community service. The evidence presented at the guilty plea showed that Gulfport Energy discharged produced water into West Cote Blanche Bay from June 2011 until March 2012. Finley clarified that according to the guilty plea, Osborn, who was Gulfport Energy Corporation’s operation manager for the platform, should have been aware of the problem. Additionally, Finley clarified that the problem was not timely addressed and the platform continued to illegally discharge the produced water at certain production rates over a 10-month period. Osborn was found to be an officer within Gulfport Energy Corporation who became aware of the defective nature of the platform, and who had the responsibility to fix any deficiency causing illegal discharges. Produced waters are left over after separating oil from drainage fluids. The pollutants should have been disposed of via barge, injection well or other approved method.
Gulf Port Energy pleaded guilty and was sentenced on one count of negligent discharge of pollutants on October 27, 2014. The company was ordered to pay $1.5 million. Gulfport paid a $1.125 million fine for violating the Clean Water Act. The company also paid $375,000 in community service for a total of $1.5 million. Of the $375,000, $100,000 was paid to the Louisiana State Police Emergency Services Unit; $100,000 was paid to the Louisiana Department of Environmental Quality; $125,000 was paid to the Public Oyster Seed Ground Development Account within the Conservation Fund administered by the Louisiana Department of Wildlife and Fisheries; and $50,000 was paid to Southern Environmental Enforcement Network.
The U.S. Environmental Protection Agency and the Louisiana Department of Environmental Quality-Criminal Investigations Division conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
Former Non-Profit Executive Sentenced for Stealing Funds Intended to Help the HomelessRead the Press Release
PHILADELPHIA - Nathaniel E. Robinson, 62, of Philadelphia, was sentenced today to 18 months in prison for stealing funds from SELF, Inc., a non-profit that helps the homeless. Robinson was the Chief Program Officer at SELF, Inc. He pleaded guilty on March 12, 2015 to theft from a program receiving federal funds.
Between 2006 and 2010, Robinson used his corporate American Express credit card at SELF to charge personal expenses in the amount of approximately $154,050. He reimbursed a total of $2,594.30 before his employment was terminated. Robinson used the corporate American Express card to pay for trips to Alabama, including airfare, lodging, and restaurants; lodging in Orlando, Florida, and the Philadelphia area; car rentals; car repairs; admission tickets to Six Flags Great Adventure and Clementon Amusement Park; Amtrak tickets; purchases at Walmart and Filene’s Basement; and restaurant charges in Washington, D.C. and Baltimore, MD.
In addition to the prison term, U.S. District Court Judge Berle M. Schiller ordered restitution in the amount of $151,455, three years of supervised release, and a $100 special assessment.
The case was investigated jointly by the FBI and the Philadelphia Office of the Inspector General, and was initiated by a tip to the Inspector General’s Office. It was prosecuted by Assistant United States Attorney Karen L. Grigsby.
Former Iberia Parish Sheriff’s deputy sentencedRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a former Iberia Parish Sheriff’s deputy was sentenced to serve one day in prison, one year of supervised release, 200 hours of community service and one year of location monitoring for striking a handcuffed man.
Cody Laperouse, 29, of New Iberia, La., was sentenced by U.S. Magistrate Judge Patrick Hanna on one count of violating an individual’s civil rights by use of excessive force. He was also ordered to take anger management classes and pay a $2,000 fine. According to evidence presented at the March 24, 2015 guilty plea, Laperouse, while acting as a deputy of the Iberia Parish Sheriff’s Office on September 29, 2013, struck a man who was under arrest and on the ground with his hands cuffed behind his back. Laperouse was one of several officers tasked with dispersing a large crowd around 1:40 a.m. that had gathered after the close of the Sugar Cane Festival in New Iberia. The crowd was asked to disperse, and the victim was arrested during this time. The victim was instructed to lie flat on the ground in a face-down position, but instead remained on his side and did not comply with the instructions. Laperouse struck the victim twice, using excessive force.
The FBI and Iberia Parish Sheriff’s Office Internal Affairs Division conducted the investigation. Assistant U.S. Attorneys Joseph T. Mickel and Jamilla A. Bynog prosecuted the case.
Former HPD Officer Guilty of Aiding and Abetting Possession with the Intent to Distribute CocaineRead the Press Release
HOUSTON – Jasmine Bonner, 27, a former officer with the Houston Police Department (HPD), has been convicted of aiding and abetting possession with the intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson.
Bonner is the final of eight defendants now convicted on charges stemming from a seven-count narcotics conspiracy indictment returned in 2014.
Bonner admitted today that while employed as an HPD officer, she aided Derryck Collins, who had been identified during a federal investigation as a major source of supply for narcotics in the Huntsville area. At the time of the offense, Collins was Bonner’s boyfriend.
A confidential source had been working with officers and negotiated an arrangement to provide cocaine to Collins. He, in turn, informed the source that his girlfriend would meet them during the transaction and she would transport the narcotics.
During the operation, the confidential source entered Bonner’s car and sat in the front passenger seat. Bonner sat in the driver’s seat, while Collins sat in the back seat immediately behind Bonner. The source withdrew a kilogram of cocaine from a bag he carried with him and passed it to the backseat to Collins. Shortly after the transaction, Collins and Bonner left the parking lot driving in tandem and were subsequently arrested.
U.S. District Judge Nancy F. Atlas, who accepted the guilty plea, has set sentencing for Oct. 6, 2015. At that time, she faces a minimum of five and up to 40 years in federal prison and a possible $5 million fine. Bonner will remain in custody pending her sentencing.
Others convicted and also awaiting sentencing in the case include:
Collins, 34, of Huntsville, David Choate, 52, Michael Kelly, 24, and Roddrick Collins, 30, all of Huntsville; and Jarvis Lovelady, 34, Javier Gomez Aguirre, 39, and Carlos Montemayor, 39, all of Houston.
The charges are the result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Huntsville Police Department and the Montgomery County Sheriff’s Office with the assistance of the Walker County Sheriff’s Office. Assistant U.S. Attorneys John Jocher and Bryan Best are prosecuting the case.
Former Credit Union Chief Operating Officer Pleaded Guilty to Stealing Tax Refund MoneyRead the Press Release
Sherrie Rivera, 53 of Hialeah, pled guilty today to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to court documents, from 2009 through 2014, Rivera worked as the Chief Operating Officer for a credit union. In that position, Rivera had the ability to access account information, institute fee reversals, and authorize transactions on the credit union’s accounts. Over a five-year period, Rivera stole approximately $385,000 from accounts using different means.
Court documents state that in 2011 a customer’s account at the credit union received a series of tax refunds in different names from the filing of fraudulent tax returns. The U.S. Department of Treasury requested reclamation of these refunds from the credit union. The credit union was supposed to mail checks to the Treasury Department in the amount of the fraudulent refunds. Specifically, the account had a tax refund in the amount of $4,900. On June 1, 2011, Rivera caused a $4,900 check to be written from the account to the U.S. Department of Treasury. Rivera signed the check, but instead of sending the check to the Treasury Department, Rivera told a teller to cash the check and Rivera kept the funds for her personal use. Rivera admitted in an interview to her involvement in this theft of government funds.
Rivera is scheduled to be sentenced on October 2, 2015, before the Honorable Kenneth A. Marra, United States District Judge. At sentencing, the defendant faces a maximum of ten years of imprisonment.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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
Federal Inmate Sentenced for Synthetic Drug Smuggling SchemeRead the Press Release
FRESNO, Calif. —Tracy McArthur Harris, aka Trey Harris, 42, a federal inmate, was sentenced today to one year in prison to be served consecutively to his current 11-year sentence for conspiring to smuggle half an ounce of synthetic cannabinoids into Taft Correctional Institution, United States Attorney Benjamin B. Wagner announced.
Harris’s sentence follows his guilty plea in May. According to court documents, from December 2012, through April 2013, while incarcerated at Taft Correctional Institution on a previous drug trafficking conviction, Trey Harris conspired to obtain smokable synthetic cannabinoids from his brother James Steven Harris, aka Steve Harris, 44, of Loma Linda, during visits. Some of the drugs, which were seized by prison authorities during the conspiracy, tested positive for XLR11, then a controlled substance analogue. In May 2013, DEA classified XLR11 as a Schedule I controlled substance following reports by the Centers for Disease Control that XLR11 not only produces hallucinogenic effects but causes kidney damage.
“Our office fully supports investigative efforts to address the continuing problem of inmate drug use and drug smuggling in Federal Bureau of Prisons (BOP) institutions,” United States Attorney Wagner said. “The harm of drugs in a prison setting cannot be ignored. Drugs not only interfere with prison officials’ ability to provide a safe and secure environment for inmates and staff but inhibit the rehabilitative potential of inmates with drug problems.”
Steve Harris is scheduled for a status conference on July 27 in federal court in Fresno. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation and Taft Correctional Institution Special Investigative Supervisor’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Facilitator and Fundraiser for Islamic Movement of Uzbekistan Extradited to United States to Face Terrorism ChargesRead the Press Release
Irfan Demirtas, aka Nasrullah, 56, a duel Dutch-Turkish national, made his first appearance today in the U.S. District Court of the District of Columbia on a federal indictment charging him with terrorism offenses arising from his support of the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office.
“According to the allegations in the indictment, Demirtas provided material support to the Islamic Movement of Uzbekistan, a designated foreign terrorist organization, through his fundraising and recruiting activities,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to pursue justice against those who provide material support to designated foreign terrorist organizations.”
“Today Irfan Demirtas was brought into an American courtroom to face charges that he raised money and recruited fighters for a foreign terrorist organization battling the Afghan government and its allies, including U.S. troops,” said Acting U.S. Attorney Cohen. “His extradition to the United States is an important step forward in holding him accountable for his alleged role in fomenting terror across Europe and the Middle East. Demirtas is one of four defendants currently pending trial on international terrorism charges in separate cases in the federal court here in our nation’s capital. These cases highlight our resolve to find and bring to justice those who support terror around the world.”
“Demirtas was arrested and extradited to face justice in the U.S. because of his role as the European-based fundraiser and recruiter for a designated terrorist organization that directly worked against U.S. forces and our allies,” said Assistant Director in Charge McCabe. “On a daily basis, the FBI is faced with investigating complex cases that involve terrorist threats. Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups who threaten the security of our nation’s equities around the globe.”
On Dec. 8, 2011, Demirtas was charged in a sealed four-count indictment for conduct occurring from at least January 2006 through May 2008. Specifically, he was charged with providing material support to terrorists, which carries a maximum penalty of 15 years in prison; providing material support and resources to a designated foreign terrorist organization, which carries a maximum penalty of 15 years in prison; receiving military-type training from a foreign terrorist organization, which carries a 10-year prison sentence; and using or carrying a firearm during and in relation to a crime of violence, which carries up to a mandatory 30-year prison sentence.
During the charged conduct, the IMU was a militant Islamic group acting as an armed insurgency against the legitimate government of Afghanistan and its allies, including the armed forces of the United States. The IMU was designated by the U.S. Department of State as a Foreign Terrorist Organization on Sept. 25, 2001. During the conduct charged in the indictment, Demirtas was a resident of the Netherlands. He was appointed by the IMU as its European-based fundraiser. He was responsible for raising funds and recruiting fighters for the IMU. His activities allegedly took place in Pakistan, Afghanistan, Turkey, Jordan, the Netherlands, France and elsewhere outside the United States.
In January 2015, Demirtas was arrested in Germany based on a red notice that had been issued on these charges. He was detained and then extradited to the United States on July 17, 2015. The indictment was unsealed today.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office and is being prosecuted by the U.S. Attorney’s Office of the District of Columbia and the National Security Division’s Counterterrorism Section.
Demirtas Indictment
Facilitator and Fundraiser for Islamic Movement of Uzbekistan Extradited to United States to Face Terrorism ChargesRead the Press Release
WASHINGTON – Irfan Demirtas, aka Nasrullah, 56, a duel Dutch-Turkish national, made his first appearance today in the U.S. District Court for the District of Columbia on a federal indictment charging him with terrorism offenses arising from his support of the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization.
The indictment was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia, Assistant Attorney General for National Security John P. Carlin, and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office.
“Today Irfan Demirtas was brought into an American courtroom to face charges that he raised money and recruited fighters for a foreign terrorist organization battling the Afghan government and its allies, including U.S. troops,” said Acting U.S. Attorney Cohen. “His extradition to the United States is an important step forward in holding him accountable for his alleged role in fomenting terror across Europe and the Middle East. Demirtas is one of four defendants currently pending trial on international terrorism charges in separate cases in the federal court here in our nation’s capital. These cases highlight our resolve to find and bring to justice those who support terror around the world.”
“According to the allegations in the indictment, Demirtas provided material support to the Islamic Movement of Uzbekistan, a designated foreign terrorist organization, through his fundraising and recruiting activities,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority and we will continue to pursue justice against those who provide material support to designated foreign terrorist organizations.”
“Demirtas was arrested and extradited to face justice in the U.S. because of his role as the European-based fundraiser and recruiter for a designated terrorist organization that directly worked against U.S. forces and our allies,” said Assistant Director in Charge McCabe. “On a daily basis, the FBI is faced with investigating complex cases that involve terrorist threats. Through international partnerships, the FBI will continue to pursue those who provide support to terrorist groups who threaten the security of our nation’s equities around the globe.”
On Dec. 8, 2011, Demirtas was charged in a sealed four-count indictment for conduct occurring from at least January 2006 through May 2008. Specifically, he was charged with providing material support to terrorists, which carries a maximum penalty of 15 years in prison; providing material support and resources to a designated foreign terrorist organization, which carries a maximum penalty of 15 years in prison; receiving military-type training from a foreign terrorist organization, which carries a 10-year prison sentence; and using or carrying a firearm during and in relation to a crime of violence, which carries up to a mandatory 30-year prison sentence.
During the charged conduct, the IMU was a militant Islamic group acting as an armed insurgency against the legitimate government of Afghanistan and its allies, including the armed forces of the United States. The IMU was designated by the U.S. Department of State as a Foreign Terrorist Organization on Sept. 25, 2001. During the conduct charged in the indictment, Demirtas was a resident of the Netherlands. He was appointed by the IMU as its European-based fundraiser. He was responsible for raising funds and recruiting fighters for the IMU. His activities allegedly took place in Pakistan, Afghanistan, Turkey, Jordan, the Netherlands, France and elsewhere outside the United States.
In January 2015, Demirtas was arrested in Germany based on a red notice that had been issued on these charges. He was detained and then extradited to the United States on July 17, 2015. The indictment was unsealed today.
An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office and is being prosecuted by the U.S. Attorney’s Office of the District of Columbia and the National Security Division’s Counterterrorism Section.
Crawford County Man Sentenced to over 24 Years in Federal Prison on Methamphetamine ChargesRead the Press Release
A Crawford County man, David C. Halterman, 45, of Palestine, IL, was sentenced on July 20, 2015, to over 24 years (292 months) in federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
"Methamphetamine is a cancer on our society, ruining lives and destroying communities." said United States Attorney Wigginton. "It is my fervent hope that the long sentences that result from use of methamphetamine will deter young folks from falling prey to the manufacture and use of this deadly chemical! Methamphetamine will rob you not only of the present, but of any future you might expect."
Halterman was also ordered to serve five years’ supervised release following his imprisonment, and fined $400. Halterman had previously pleaded guilty. The indictment charged that Halterman, Rebecca A. Moore, 37, of Yale, Illinois, Ashley M. Attaway, 30, of Yale, Illinois, and Ricky Lee Roberts, II, 39, of Franklin, Indiana, conspired to knowingly and intentionally distribute methamphetamine, and, that on October 11-12, 2013, in Jasper County, Halterman knowingly and intentionally possessed with the intent to distribute fifty grams or more of methamphetamine.
Attaway was previously sentenced to 188 months in prison; Moore to 168 months in prison, and Roberts to 262 months in prison.
The investigation in this case was conducted by the Jasper County Sheriff’s Department, the Crawford County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, and Firearms. The Jasper County State’s Attorney’s Office has assisted throughout the investigation in this case.
The case is being handled by Assistant United States Attorney George Norwood.
Colombian Narcotics Trafficker Sentenced in Manhattan Federal Court to 25 Years in Prison for Conspiring with West African Military Officials to Engage in Narco-TerrorismRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that RAFAEL ANTONIO GARAVITO-GARCIA was sentenced to 25 years in prison for his participation in a conspiracy to engage in narco-terrorism (Count One), a conspiracy to distribute five kilograms or more of cocaine, knowing or intending that the cocaine would be imported into the United States (Count Two), a conspiracy to provide material support and resources to the Fuerzas Armadas Revolucionarios de Colombia (the “FARC”) (Count Three), and a conspiracy to acquire and transfer anti-aircraft missiles (Count Four). Garavito was arrested in April 2013, following a long-term investigation conducted by the Drug Enforcement Administration’s (“DEA”) Special Operations Division, and arrived in the Southern District of New York on July 22, 2014. On March 26, 2015, Garavito was convicted on all four counts with which he was charged following an eight-day trial before U.S. District Judge Jed S. Rakoff, who imposed sentence. GARAVITO-GARCIA’s conviction marked the first time in the District that a defendant had been convicted at trial of conspiring to engage in narco-terrorism.
Manhattan U.S. Attorney Preet Bharara said: “Rafael Antonio Garavito-Garcia was at the hub of a narco-terrorism conspiracy that targeted the United States. His aims were to import massive quantities of cocaine into the U.S., while at the same time arming the FARC with sophisticated weaponry to be used against U.S. forces in Colombia. I want to thank our partners at the National Security Division and the DEA for their excellent work in this investigation and prosecution.”
According to court documents and the evidence presented at trial: Beginning in the summer of 2012, GARAVITO-GARCIA communicated with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of the FARC. The communications occurred by telephone, over e-mail, and in a series of audio-recorded and videotaped meetings. Following initial recorded meetings in Brazil, GARAVITO-GARCIA accompanied the CSs to Guinea Bissau, where he introduced them to two local men, whom he indicated were his associates in that country. GARAVITO-GARCIA later introduced the CSs to a Colombian man, whom GARAVITO-GARCIA identified as his drug trafficking partner.
During meetings in Guinea-Bissau beginning in June 2012, and continuing through November 2012, GARAVITO-GARCIA agreed to receive and store multi-ton shipments of FARC-owned cocaine in Guinea-Bissau. He agreed, in particular, to receive the cocaine in Guinea-Bissau and to store the cocaine there pending the eventual shipment of some of the cocaine to the United States, where it would be sold for the financial benefit of the FARC. GARAVITO-GARCIA also agreed to sell some of the cocaine himself, and to provide the FARC with some of the proceeds of his drug sales. Also during those meetings, GARAVITO-GARCIA and his associates agreed to help arrange to purchase weapons for the FARC, including surface-to-air missiles, by importing them into Guinea-Bissau for the nominal use of the Guinea-Bissau military.
For example, on June 30, 2012, during a recorded meeting in Guinea Bissau with the CSs, GARAVITO-GARCIA and his Guinea Bissau-based associates agreed to assist in the distribution of FARC cocaine by facilitating the shipment of cocaine to Guinea Bissau inside loads of military uniforms. They also agreed to establish a front company in Guinea Bissau to facilitate the export of cocaine from Guinea Bissau to the United States. On July 2, 2012, GARAVITO-GARCIA introduced the CSs to General Antonio Indjai,[1] who was then head of the Guinea-Bissau Armed Forces, and helped win Indjai’s support for the drug and weapons deal. During another recorded meeting in Guinea Bissau the following day, GARAVITO-GARCIA met with the CSs and a Guinea Bissau military representative and discussed the benefits of using Guinea Bissau as a transshipment point for cocaine obtained in South America and destined for the United States. GARAVITO-GARCIA also discussed with the others the process for offloading the cocaine once it arrived in Guinea Bissau, and the nature of the weapons to be supplied to the FARC to combat American forces in Colombia, including surface-to-air missiles and AK-47 assault rifles.
Thereafter, on August 31, 2012, during a recorded meeting in Bogota, Colombia, GARAVITO-GARCIA and his Colombian partner agreed to facilitate the receipt of approximately 4,000 kilograms of cocaine from the FARC in Guinea Bissau, with the understanding that approximately 500 kilograms of that cocaine would later be sent to customers in the United States and Canada. During a recorded meeting in Guinea Bissau on November 13, 2012, GARAVITO-GARCIA explained to a Guinea Bissau military official that the FARC needed anti-aircraft missiles to be used against United States helicopters operating in Colombia. The military official then advised one of the CSs that the weapons transaction could be executed once the FARC brought money to Guinea Bissau.
GARAVITO-GARCIA was arrested in Bogota, Colombia, on April 5, 2013.
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In addition to the term of imprisonment, GARAVITO-GARCIA, 70, was sentenced to five years of supervised release.
The conviction was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, DEA’s Special Operations Division and DEA’s Foreign-deployed Advisory Support Team, the DEA Lisbon Country Office, the DEA Bogota Country Office, the U.S. Department of Justice’s Office of International Affairs and National Security Division, and the U.S. State Department.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Aimee Hector, Shane Stansbury, and Ilan Graff are in charge of the prosecution.
[1] In April 2013, an indictment was unsealed charging Indjai with conspiracy to commit narco-terrorism, conspiracy to import cocaine into the United States, conspiracy to provide material support to the FARC, and conspiracy to acquire and transfer anti-aircraft missiles. Indjai is currently a charged defendant located outside the arrest jurisdiction of the United States. The charges against Indjai are merely accusations and he is presumed innocent unless and until proven guilty
Colombian Man Sentenced for False Claims of U.S. Citizenship and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Jaime Tovar-Montoya to three years and three months in federal prison for falsely claiming to be a U.S. citizen and aggravated identity theft. A federal jury found him guilty of the charges on April 22, 2015.
According to court documents, in 2010, Tovar, a citizen of Colombia, applied for and received a Florida Identification Card. In his application, he claimed that he was a U.S. citizen and used the name and birth certificate of a resident of Puerto Rico. Later that year, Tover used the identification card as proof of identity to apply for a U.S. passport. He again claimed to be a U.S. citizen and used the same name, birth date, and Social Security of the resident of Puerto Rico.
Under federal law, a person who uses a means of identification of another person without lawful authority in order to commit another felony offense is guilty of aggravated identity theft, which carries a mandatory two year sentence in addition to any other sentence received.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.