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16 July 2015
Eight Restaurant Owner/Managers in the State College Area Charged with Conspiracy to Transport, Harbor and Conceal Illegal AliensRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges were filed in U.S. District Court in Harrisburg against eight restaurant owners and managers in the State College, Pennsylvania, area, accusing them of conspiring to transport, harbor and conceal illegal aliens to work in their restaurants. Jing Mei Jiang, identified as the leader of the conspiracy, was also charged with defrauding the United States and the Commonwealth of Pennsylvania by underreporting the actual number of employees in audit and tax documents and by creating falsified financial records on his Employer’s Quarterly Report of Wages Paid to each employee.
According to U.S. Attorney Peter Smith, the following individuals were charged in eight separate Criminal Informations filed today:
- Jing Mei Jiang, age 51, Boalsburg, PA
- Yu Mei Chen, age 50, Boalsburg, PA
- Xin Xing Jiang, age 27, Boalsburg, PA
- Yan Jin Jiang, age 30, Boalsburg, PA
- Xue Jiang, age 36, State College, PA
- Jian Bin Chen, age 39, State College, PA
- Yong Cheng Chen, age 38, State College, PA
- Hua Zhen Dong, age 37, State College, PA
The Criminal Informations charge that Jing Mei Jiang and his co-conspirators, owners and/or managers of restaurants in the State College area, allegedly engaged in recruiting, placing, harboring, concealing and transporting unauthorized aliens to work in the restaurants. Jiang and his co-conspirators transported the unauthorized aliens by commercial buses, vans and other vehicles to and from restaurants in the State College area, where they would work and be housed during their employment.
The workforce consisted of Hispanic and Chinese aliens from Mexico, Guatemala, Thailand and China, many of whom were illegally in the United States. The workforce was allegedly sought and employed by the defendants for commercial advantage and private financial gain. Unauthorized alien workers were hired routinely to staff restaurant kitchen operations, thereby cutting costs and maximizing profits. Among other things, the conspirators allegedly:
- Paid the unauthorized aliens in cash, at a rate well below the minimum wage;
- Did not withhold state and/or federal taxes from the wages paid to unauthorized aliens;
- Did not require the unauthorized aliens to present documents establishing identity and/or employment eligibility as required by law;
- Provided housing and transportation to the restaurants to their unauthorized alien workers.
- Recruited unauthorized alien workers using employment agencies located in New York City and would have the unauthorized alien workers transported to the State College area by commercial buses, vans and other vehicles;
- Shared housing, transportation and services of some of the workers among themselves to maximize profits and to facilitate their criminal conspiracy; and
- Filed and caused to be filed fraudulent documents relating to unemployment compensation for undocumented workers.
Jiang is charged individually with allegedly handling the finances of all the restaurants. The workers were compensated in cash and their earnings were not reported to the Commonwealth of Pennsylvania on the Employer’s Quarterly Report of Wages Paid to Each Employee.
The payroll services of a New York accounting firm were allegedly used for the fraudulent production of a fictitious monthly payroll check for each employee and quarterly report of wages paid to each employee forwarded by mail or electronically filed. The actual number of employees working for the restaurants was knowingly under reported, thereby knowingly causing the accounting firm to transmit false and incomplete information by mail and/or by interstate wire.
The government is also seeking the forfeiture of the following assets, consisting of property or cash allegedly directly tied to the criminal activity:
- 210 Limerock Terrace, State College, PA
- 458 East College Avenue, Unit 211, State College, PA
- 458 East College Avenue, Unit 406, State College, PA
- 691 Westerly Parkway, State College, PA
- $21,890 in cash seized from the China Dragon Restaurant, State College, PA
- $43,108 in cash seized from 210 Limerock Terrace, State College, PA
The government also filed plea agreements with each of the eight defendants which are subject to the approval of the court.
The case is part of a continuing investigation by Homeland Security Investigations, the Pennsylvania Office of the Attorney General, and the U.S. Department of Labor, assisted by the State College Police Department. Assistant U.S. Attorneys William A. Behe and Gordon Zubrod, and Special Assistant U.S. Attorney Robert LaBar of the Pennsylvania Attorney General’s Office are assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Jing Mei Jiang is 10 years of imprisonment on harboring and concealment of illegal immigrants and 20 years imprisonment for wire fraud, a term of supervised release following imprisonment, and a $250,000 fine. The maximum penalty for the remaining defendants is 5 years imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Dalia Guerrero IndictedRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that Dalia Guerrero, 39 of Merrillville, Indiana was indicted for using the threat of force against a witness.
According to documents filed in the case, Guerrero, the mother of Anton Lamont James, used threat of physical force against a witness. Guerrero allegedly told the witness she knew what the witness looked like, where they live and to watch their back with the intent to influence, delay and prevent the testimony of the witness in an official proceeding.
David Capp stated, “This incident occurred this morning around 9:20 am, Ms. Guerrero was indicted this morning and taken into custody before noon today. Witness intimidation will not be tolerated.”
This case is being investigated by the Federal Bureau of Investigation and Hammond Police Department. The case is being handled by Assistant United States Attorney David J. Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Crack Cocaine Trafficker Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Kendall Ferrara, 33, of Providence, was sentenced today to three years in federal prison for trafficking crack cocaine in and around Providence, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Ferrara to serve three years of supervised release upon completion of his prison term. Ferrara pleaded guilty on April 6, 2015, to one count of distribution of crack cocaine.
According to court documents and information presented to the court, an undercover FBI Safe Streets Violent Gang Task Force investigation in the fall of 2014 into drug trafficking activities in and around Providence included five purchases of crack cocaine in varying amounts from Ferrara. The purchases were made between October 10 and November 21, 2014. The purchases totaled nearly 59 grams of crack cocaine.
Ferrara was arrested by members of the FBI Safe Streets Task Force on February 23, 2015.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, RI State Police, Providence, Cranston, Woonsocket, Johnston and Central Falls Police Departments and the RI Adult Corrections Institutions.
Contact:
Jim Martin
(401) 709-5357
on Twitter @USAO_RI
Cleveland man indicted for receiving package containing PCPRead the Press Release
A federal grand jury today returned an indictment charging Ahmad D. Fletcher, 24, of Cleveland, with receiving a package containing approximately 1,677 grams of Phencyclidine, or PCP, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The United States Postal Service seized the package and made a controlled delivery to Fletcher’s residence. Fletcher received the package containing the PCP, according to the indictment.
The United States Postal Service conducted the investigation. The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Citrus County Man Indicted for Sending Multiple Hoax Bomb ThreatsRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging David Wayne Willmott, Jr. (24, Inverness) with the three counts of making threats to use an explosive device. If convicted, he faces a maximum penalty of 10 years in federal prison for each count.
According to court documents, on three separate dates (November 25, 2014, April 17, 2015, and April 23, 2015), bomb threatening e-mails were sent over the Internet regarding businesses and government facilities in Central Florida. The locations targeted in the e-mails included the Crystal River Nuclear Power Plant, an elementary school, a sheriff’s office, two courthouses, and two airports. Investigators determined that these e-mails had been sent from a computer located at a public library in Inverness, Florida. A subsequent investigation revealed that Willmott had been the person using the library computer at the time each of the threatening e-mails was sent.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Citrus County Sheriff’s Office, the Florida Department of Law Enforcement, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Cedar Rapids Man Sentenced for Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On July 15, 2015, Charlie D. Pitchford, age 34, was sentenced by Senior United States District Judge James E. Gritzner to 33 months in prison for possession with intent to distribute marijuana, announced United States Attorney Nicholas A. Klinefeldt. Pitchford was also ordered to serve four years supervised release following the imprisonment, to forfeit the firearm and ammunition he possessed, and to pay $100 towards the Crime Victims Fund.
On March 10, 2012, Coralville, Iowa, police stopped a vehicle in which Pitchford was the front seat passenger. Upon searching the vehicle, police found a loaded .45 caliber pistol under the front passenger seat. Next to the pistol was a plastic bag that contained 19 individually packaged bags of marijuana - each bag containing approximately 1 gram of marijuana. The pistol and the marijuana belonged to Pitchford and he intended to distribute some or all of the marijuana to other persons.
This case was investigated by the Coralville, Iowa, Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Carrollton Man Indicted on Child Exploitation ChargesRead the Press Release
PLANO, Texas — A 47-year-old Carrollton, Texas man has been indicted on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Oscar Figueroa was indicted by a federal grand jury on July 15, 2015 and charged with coercion and enticement of minors.
According to the indictment and evidence introduced at a detention hearing today, on July 7, 2015, law enforcement officers became aware of a Craigslist advertisement posted by a person identified as Figueroa seeking young males for sexual activity. An undercover officer posing as a 16-year-old male responded to the ad and began communicating with Figueroa. Figueroa directed the undercover officer to the AMC theatre at the Stonebriar Centre in Frisco. The undercover officer met Figueroa at the theatre and engaged in additional conversation before Figueroa directed the undercover officer to a bathroom, where Figueroa was detained.
Figueroa was arrested on July 10, 2015 and remains in custody. If convicted, Figueroa faces a minimum of 10 years, and up to life, in federal prison.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being investigated by Homeland Security Investigations (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Canadian Woman Indicted in A Check Kiting SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a five count indictment charging Panagiota Loukisas, 54, of North York, Ontario, Canada, with bank fraud. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that according to the indictment, the defendant opened bank accounts at five banks in Niagara Falls, NY in November 2014. Loukisas deposited checks drawn on a Canadian bank account held by her company, PM Global Consulting Services, into these five accounts. The defendant then withdrew significant sums of money from the Niagara Falls bank accounts before the checks were returned to the banks for insufficient funds. Loukisas is accused of fraudulently depositing non-sufficient fund checks valued at more than $83,000 and withdrawing more than $52,000 from the accounts before the scheme was discovered.
The defendant will be arraigned July 22, 2015 at 2:00 p.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the culmination of an investigation by Special Agents of the Immigration & Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge J. Michael Kennedy.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Cambodian Man Sentenced to Six Months for Marriage FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Sothy Khiev, 48, a citizen of Cambodia who most recently resided in Florida, was sentenced yesterday in U.S. District Court by Judge Nancy Torresen to six months in prison for conspiracy to commit marriage fraud. Khiev was convicted on February 27, 2015 after a four-day bench trial. After serving his sentence, Khiev will be turned over to immigration authorities for deportation proceedings.
According to the trial evidence, Khiev paid Chanara Sok $5,000 to fraudulently engage and marry his girlfriend, Sophal Cheng, so that she could legally enter the country. Cheng entered the United States on a fiancé visa and married Sok in Westbrook on September 4, 2007. Thereafter, Cheng sought to adjust her immigration status on the basis of her fraudulent marriage to Sok. To conceal the fraudulent marriage, Khiev orchestrated, among other things, false affidavits and letters of support, a false utility bill in the names of Cheng and Sok, and used car purchase and insurance documents in the name of Cheng and Sok. He also arranged for a false birth certificate identifying Cheng and Sok as parents.
In pronouncing sentence, Judge Torresen observed that countries have the right to control immigration and that Khiev’s violation of federal law to adjust Cheng’s status was unfair to other immigrants who have to follow the law.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Department of State, Diplomatic Security Service.
California Payment Processing Company Owner Pleads Guilty to FraudRead the Press Release
The owner and operator of a payment processing company that was involved in the unauthorized withdrawal of millions of dollars from consumers’ bank accounts pleaded guilty to fraud, the Justice Department announced today.
Neil Godfrey, 76, of Santa Ana, California, pleaded guilty to a one-count information charging him with wire fraud in the Eastern District of Pennsylvania. The information described how, working as a payment processor, Godfrey knowingly enabled fraudulent merchants to withdraw money from consumers’ bank accounts without the consumers’ knowledge or consent.
In pleading guilty, Godfrey admitted that he used a Santa Ana processing company named Check Site Inc. to assist at least two fraudulent merchants. The merchants operated websites that purportedly offered payday loans. The websites were simply a ruse to harvest consumers’ bank account information. Instead of providing consumers with payday loans, the merchants operating the websites used the information provided by the consumers in loan applications to withdraw money from the consumers’ bank accounts. Using Check Site, Godfrey knowingly processed the merchants’ fraudulent withdrawals and provided the merchants access to the banking system.
“Payment processors commit a federal offense when they knowingly facilitate consumer fraud,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will not sit idly by while companies and individuals take money from victims’ accounts without their consent. As this case demonstrates, the Department of Justice will continue to prosecute those involved in perpetrating or knowingly assisting fraud schemes.”
In pleading guilty, Godfrey admitted to using payment devices called remotely created checks (RCCs) to facilitate fraud schemes. Once the fraudulent merchants had obtained consumer names and bank account information, the merchants created RCCs, which Check Site submitted through the banking system to the consumers’ banks. Unlike an ordinary check, an RCC is generally honored without the signature of the account holder. When the RCCs were processed, Check Site kept a fee and transferred the remainder of the withdrawals to the merchants.
The information to which Godfrey pleaded guilty charged that he was an expert in finding banks that were willing to facilitate these transactions and ignore the red flags raised by these transactions. Such banks included one located in Irvine, California, and one located in Philadelphia. The information also alleged that Godfrey helped the fraudulent merchants stay off the radar of other banks and regulators so that the fraud could continue. For example, Godfrey advised merchants how to change the names of their companies and set up the facade of a legitimate company to defeat banks’ attempts at due diligence.
In an email message quoted in the information, Godfrey advised a fraudulent merchant that “the lesson we have learned is that we must trick the [bank] folk. It means you need to set up some type of website front. What we need to do is set up a legitimate website selling anything you can think of – that is what you get approved on. It is irrelevant if anything is ever sold there – just so it exists. . . . In the mean time we set up false credit card approval etcetera. It is this we use to run the transactions. Yes, there will be a lot of returns, but what we do is send through transactions over the next few weeks that don’t have high returns. They stop looking and then we can run the regular stuff. . . . [A]fter several months we junk that company and go to another company.”
Principal Deputy Assistant Attorney General Mizer thanked the Federal Trade Commission for providing Attorney Michelle Chua to serve as a Special Assistant U.S. Attorney on the case, and commended the FBI for its thorough investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Murray of the Eastern District of Pennsylvania and Trial Attorney Patrick Jasperse of the Civil Division’s Consumer Protection Branch.
Buffalo Police Officer Indicted on Civil Rights ViolationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a two count indictment charging Robert Eloff Jr., 40, of Buffalo, NY, with deprivation of rights under color of law and conspiracy to deprive an individual of rights under color of law. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.U.S. Attorney Joseph M. Guerra, who is handling the case, stated that the defendant is charged in connection with an incident at Molly’s Pub in Buffalo in 2014.
According to the indictment and a complaint filed earlier in the case, in the early morning hours of May 11, 2014, William Sager was pushed down a flight of stairs at Molly’s Pub by Jeffrey Basil. Sager later died of his injuries and Basil was convicted in state court of murder. At the time Sager was pushed by Basil, Eloff was in Molly’s Pub working security for the bar.
A victim identified as D.H. was with William Sager the night he was pushed down the stairs. The complaint states that D.H saw people carry Sager outside after he fell down the stairs. When the victim went outside, Sager was propped up, sitting the on the ground. As he was asking officers what happened, Eloff grabbed D.H. and told him to get out of there. The victim then walked away and called 911. When other officers arrived, the victim asked for Eloff’s name and badge number at which point he was arrested and handcuffed by Eloff and seated next to Sager. D.H. was later taken from the scene by other officers. According to the complaint, Eloff told officers that D.H. had physically interfered with Eloff and others inside the bar. A later review of surveillance video from Molly’s Pub revealed that the victim never confronted or was physical with Eloff in the bar. According to the complaint, Eloff caused D.H. to be arrested for trespassing, a crime he never committed. During the incident Eloff also handcuffed William Sager and attempted to arrest him. The indictment alleges that Eloff conspired with another person to arrest DH and Sager for crimes they did not commit.
The indictment is the culmination of an investigation by Federal Bureau of Investigation and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bucks County Law Firm Partner Charged with Insider TradingRead the Press Release
PHILADELPHIA – Herbert Sudfeld, 64, of Doylestown, PA, was charged today by indictment with insider trading and making a false statement, announced United States Attorney Zane David Memeger.
Sudfeld was a partner in a Pennsylvania law firm that represented Harleysville Group, Inc., in its merger with Nationwide Mutual Insurance Company. According to the indictment, Sudfeld knew the merger was imminent and knew he had a fiduciary duty to keep it confidential. On September 28, 2011, prior to the public announcement of the merger agreement, Sudfeld allegedly contacted his stock broker to purchase Harleysville stock. On September 29, 2011, Harleysville and Nationwide publicly announced the merger and Harleysville stock rose by approximately 85 percent over the prior day’s trading. Sudfeld then sold the shares he had bought a day earlier, netting personal profits of approximately $75,530.
The indictment further alleges that Sudfeld falsely told FBI agents, who were investigating insider trading, that he was not aware of the Harleysville stock transactions until several days to a week later. According to the indictment, Sudfeld also falsely told investigators that he had informed his broker that he could not be involved in trades of Harleysville stock due to his position at his law firm. He further allegedly stated that he did not discuss Harleysville trades with his broker until after they were completed, which was also false.
If convicted, the defendant faces a maximum possible sentence of 25 years in prison, a three-year period of supervised release, and a $5.25 million fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Berks County Man Indicted on Gun ChargeRead the Press Release
PHILADELPHIA - Quinn Bowers, 34, of Temple, Pennsylvania, was charged by indictment, unsealed today, with providing a firearm to a convicted felon, announced United States Attorney Zane David Memeger and Berks County District Attorney John T. Adams.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation Allentown Resident Agency, the Reading Police Department, and the Berks County District Attorney’s Office, with assistance from the Pennsylvania State Police and the U.S. Marshals Service. It is being prosecuted by Assistant United States Attorney Joseph A. LaBar and Special Assistant United States Attorney Jesse Leisawitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore Man Sentenced to 19 Years in Prison for Four Armed Robberies Committed in Less Than A MonthRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Derek Roberts, age 45, of Baltimore, Maryland, today to 19 years in prison, followed by three years of supervised release, for conspiring to commit three armed robberies and using and brandishing a firearm during a crime of violence. In total, Roberts admitted to acting as the gunman in four armed robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Roberts’ plea agreement, from September 2013 through October 11, 2013, Roberts conspired with Rodney Smith to commit armed robberies at a fast food restaurant, a drug store and a gas station. Roberts also admitted robbing another store with co-conspirator Richard Bruzdzinski.
According to their plea agreements, on the morning of September 15, 2013, Roberts and Smith went to a fast food restaurant in Rosedale, Maryland, and waited for an employee to arrive. When the employee arrived to open the store Roberts and Smith approached him. Roberts pointed a loaded gun at the employee and pushed him into the store. Roberts tied up the victim and demanded money from the cash register. Roberts and Smith stole approximately $200 from the restaurant. On September 27, 2013, Roberts and Smith robbed a drug store in Havre de Grace. When two employees began closing the store, Roberts pointed a loaded gun at the employees and forced them into the store, where he and Smith tied up the victims and demanded money. One of the victims opened the store safe and Roberts took money from the safe. Roberts and Smith stole $3,400 from the store, several cartons of cigarettes and a purse belonging to one of the victims. On October 3, 2013, Roberts and Smith drove from Maryland to a gas station in Fredericksburg, Virginia. An employee let Roberts and Smith into the store and Roberts pointed a loaded gun at the victim. Roberts instructed the victim to go to a back room and lay on the ground, and demanded money. Roberts and Smith stole approximately $200, cartons of cigarettes and beer from the gas station.
In addition to the robberies with Smith, on October 2, 2013, Roberts robbed a store in Timonium, Maryland, with Richard Bruzdzinski. The owner of the establishment recognized Brudzinski, who had been a customer of the store a few weeks earlier. The owner opened the electronic door for Roberts and Bruzdzinski. Immediately, Roberts drew a handgun, pointed it at the owner, and stated that a robbery was occurring. Bruzdzinski drew a stun gun from his pocket. The two men directed the owner and an employee to go to the office in the back of the store, then ordered the victims to the ground. Roberts and Bruzdinski tied the hands of the victims with plastic zip ties. Roberts and Bruzdzinski stole money, gold jewelry, coins, the owner’s Glock pistol, and the victims’ cell phones.
Rodney Smith, age 51, and Richard Bruzdzinski, age 43, both of Baltimore, pleaded guilty to their roles in the robberies. Smith is scheduled to be sentenced on July 21, 2015 at 10:00 a.m. and Bruzdzinski was sentenced to 10 years in prison on March 26, 2015.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and thanked Cecil County State’s Attorney Ellis Rollins, Baltimore City State’s Attorney Marilyn J. Mosby, and their offices for their assistance in the prosecution. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Attorney General Loretta E. Lynch Statement on the Shooting in Chattanooga, TennesseeRead the Press Release
Attorney General Loretta E. Lynch provided the following statement on the shooting in Chattanooga, Tennessee:
“On behalf of the Department of Justice, I offer my heartfelt condolences and deepest sympathies to the loved ones of the U.S. servicemembers who were murdered and the law enforcement officer who was wounded in this shameful and cowardly act of violence. I have directed the FBI to take the lead in the national security investigation of this heinous attack on members of our military. The U.S. Attorney’s office and department prosecutors are also actively involved. In the days ahead, we intend to work with our partners in law enforcement and the intelligence community to ensure that the American people are protected and that justice is served.”
Armed Robber of Two Richmond Businesses Sentenced to 27 YearsRead the Press Release
RICHMOND, Va. – Spencer A. Coley, Jr., 25, of Richmond, was sentenced today to 324 months in prison, followed by three years of supervised release for the Dec. 9, 2014, armed robbery at the College Mart convenience store in Richmond and the Dec. 11, 2014, armed robbery of an employee of the Red House Chinese Restaurant outside a SunTrust Bank, also in Richmond. Coley was also sentenced to 24 months in prison to run concurrently with the above-referenced sentence for committing multiple violations while on federal supervised release.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Robert E. Payne.
Coley plead guilty on April 9, 2015, to two counts of interference with commerce by robbery, and one count of brandishing a firearm in furtherance of a crime of violence. According to court documents, Coley admitted that on Dec. 9, 2014, he entered the College Mart convenience store, located at 1501 Chamberlayne Parkway, and brandished a firearm at the clerk and demanded money. After obtaining $400 in cash he fled. Coley also admitted that on Dec. 11, 2014, he entered the SunTrust bank, located at 1101 Azalea Avenue, and observed an employee of the Red House Chinese Restaurant making a withdrawal from the restaurant business account. Coley waited outside for the employee to leave the bank and robbed him at gunpoint of $4,160. Both businesses were involved in interstate commerce.
This case was investigated by the FBI’s Richmond Field Office and the Richmond Police Department. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-18.
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"Hedge Fund Manager" Pleads Guilty to $2.6 Million Ponzi SchemeRead the Press Release
SAN DIEGO – Paul Moore IV pleaded guilty in federal court today to defrauding local investors through his purported hedge fund. Moore admitted that he falsely told investors he was an experienced financial professional and investment adviser, and that his “hedge fund” traded investors’ money in the stock market on their behalf. In reality, Moore had no relevant education or experience, and was actually stealing most of the investors’ money in the course of running a Ponzi scheme.
In a parallel action, the Securities and Exchange Commission announced today that it has filed a civil complaint alleging that Moore siphoned nearly $2 million of client funds to pay travel expenses and buy retail goods. Please see http://www.sec.gov/news/pressrelease/2015-148.html.
According to his plea agreement in the criminal case, Moore established Coast Capital Management LLC in 2009, when he began soliciting friends and acquaintances to invest in this “hedge fund.” Moore told investors that he had earned an undergraduate degree in economics from a respected state university, had worked as a senior analyst at a large, national securities firm, had registered himself and his firm with securities regulators, and was making tremendous profits for his clients through his knowledge and expertise in securities trading. In truth, Moore quit college without earning any credits toward a degree, had never worked for the securities firm he touted, did not register himself or his fund with regulators, and when he did trade a small portion of the investor funds entrusted to him, he was losing money.
Moore ultimatley stole most of clients' funds in the course of perpetrating a Ponzi scheme. Of the $2.8 million he “managed” for investors, Moore used $1.7 million of it for personal travel, shopping sprees, meals, entertainment, and other expenses. To keep the scheme going and to conceal his theft, Moore complied with certain investor’s redemption requests by paying them with funds deposited by other, usually more recent, investors. And when it came time to tell investors about his performance in the stock market, Moore added another deception – he created and distributed false account statements showing large volumes of highly profitable trades that he supposedly made on behalf of investors. The problem, of course, was that the trades never happened and Moore had concocted the account statements from whole cloth.
United States Attorney Laura E. Duffy warned investors to perform their own due diligence before turning money over to an investment advisor, and to be wary of performance figures that seem “too good to be true.” The public can obtain additional information regarding Ponzi Schemes, and how to avoid them, on the Securities and Exchange Commission’s website posts, at http://www.sec.gov/answers/ponzi.htm.
The defendant is scheduled to be sentenced by U.S. District Judge Cynthia Bashant on October 5, 2015 at 9:00 a.m.
DEFENDANT Case Number: Paul Moore IV Age: 51 San Diego, California CHARGESSecurities Fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff.
INVESTIGATING AGENCIES
Maximum Penalties: 20 years’ imprisonment, $5,000,000 fine, $100 special assessment, restitution.Federal Bureau of Investigation
Securities and Exchange Commission
15 July 2015
“C-S.T.A.N.D”: Conway Men Enter Guilty Pleas in Federal Drug ConspiracyRead the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles, stated today that Marcus Dalton Hemingway and James Earl Spain, II, both of Conway, entered guilty pleas on drug conspiracy charges in federal court in Florence late yesterday afternoon. Hemingway and Spain were indicted earlier this year by a federal grand jury in a superseding indictment charging conspiracy to possess cocaine and crack cocaine. Mr. Nettles stated the penalty for conspiracy to possess cocaine and crack cocaine is a maximum term of imprisonment of 20 years, a fine of $1,000,000, a term of supervised release of at least three years in addition to any term of imprisonment, plus a special assessment of $100.
The facts presented at the change of plea hearing established that the DEA Florence Resident Office, in concert with local law enforcement including the 15th Judicial Circuit Drug Enforcement Unit (DEU), launched an investigation into a cocaine/crack distribution organization operating in and around the Conway, South Carolina, area. Defendant Marcus Hemingway headed this drug distribution organization—an organization that many associated with the moniker “LAB CITY.” The evidence in the case includes historical witness statements as well as undercover drug purchases and seizures of drugs as well as seizures of U.S. currency. The investigation uncovered a conspiracy ultimately responsible for the distribution of multi-kilogram quantities of cocaine as well as multi-ounce quantities of crack cocaine in the Conway, SC, area, and elsewhere, dating back to approximately the year 2000.
During the takedown on April 9, 2015, law enforcement effected state and federal arrests and executed federal search warrants on multiple residences in the Conway area, seizing over $50,000 in cash. Agents also seized multiple firearms, to include an AK47, from the residence where Marcus Hemingway was arrested. Later that same day, agents seized $106,000 in cash from a safe in a storage unit in the Myrtle Beach area—money being held by a Hemingway relative for Marcus Hemingway. Additionally, a kilogram of what field-tested positive as cocaine was seized on that date from co-conspirator James Earl Spain II. Spain told law enforcement that he was holding the kilogram for Marcus Hemingway.
The guilty pleas today follow a year-long undercover investigation by local, state, and federal law enforcement. The investigation is part of the “C-S.T.A.N.D.” program launched in Conway in late 2013. The program, an acronym for “Conway—Starting Toward a New Direction” is an application of the Drug Market Intervention program, coordinated by the United States Attorney’s Office, and recently utilized in the Charleston Farms community in North Charleston beginning in 2011.
The initiative is a unified, proactive approach that bands together local, state, and federal law enforcement with community partners in an effort to eradicate open drug dealing in a multiple block area of Conway. In addition to the federal and state arrests effected on April 9, 2015, seven individuals, who are considered by law enforcement to be lower-level targets, were not arrested that day—instead they received notice to attend a public “call in” meeting with the community and law enforcement held the week after the arrests at the Conway Recreation Center. All seven candidates attended the meeting, entered the “C-S.T.A.N.D.” program, and currently, all are slated for graduation in late August. The Conway community, law enforcement, and family members are working with the seven C-S.T.A.N.D. participants to support the candidates in a disciplined effort to engage in law-abiding life choices to include completing their education and obtaining employment.
Members of the law enforcement team involved in this initiative includes the Conway Police Department, the 15th Circuit Drug Enforcement Unit, the Horry County Police Department, the South Carolina Law Enforcement Division (SLED), the Florence Police Department, the 15th Circuit Solicitor’s Office, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Drug Enforcement Administration (DEA). This case is assigned to Assistant United States Attorney Lance Crick of the Greenville office and Assistant United States Attorney Chris Taylor of the Florence office.
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Yonkers Gang Member Sentenced in White Plains Federal Court to Life in Prison for Racketeering, Murder, Conspiracy to Murder, Attempted Murder, Narcotics, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN KNOWLES, 27, was sentenced on July 10, 2015, for various racketeering charges, murder, conspiracy to murder, attempted murder, narcotics conspiracy, and firearms charges. KNOWLES was sentenced to life in prison plus 35 consecutive years arising out of his involvement, from 2000 through 2013, in the criminal activities of the Elm Street Wolves gang (the “Wolves”) – a violent street gang that was involved in drug trafficking and multiple acts of violence, including murder and attempted murder, in Yonkers, New York. KNOWLES was convicted on July 1, 2013, after a four-week jury trial before U.S. District Judge Kenneth M. Karas, who imposed the sentence. In imposing sentence, Judge Karas emphasized the seriousness of Knowles’s criminal conduct, which included over 20 shootings of rival gang members, and the impact of the terror caused by Knowles and the Wolves on the community of southwest Yonkers.
According to the Superseding Indictment and evidence admitted at trial:
From 2000 through 2013, KNOWLES was a member, and then leader, of a racketeering enterprise – the Elm Street Wolves. As part of his participation in that enterprise, KNOWLES conspired to murder a member of a rival gang, the Strip Boyz, which culminated in the violent murder, by KNOWLES and others, of Christopher Cokley on July 4, 2009. KNOWLES also participated in a number of other gang-related shootings, including the October 14, 2007, attempted murder of Tremaine Garrison, a/k/a “Triggermain,” also a member of the Strip Boyz. KNOWLES also participated in more than a decade-long conspiracy to distribute kilograms of crack cocaine within a several block radius of Elm Street and Oak Street in Southwest Yonkers, New York. The evidence at trial also showed that KNOWLES and other members of the Wolves possessed, brandished, and discharged a number of firearms in connection with their drug trafficking and racketeering activities with the Elm Street Wolves gang.
KNOWLES was convicted of one count of racketeering, one count of racketeering conspiracy, one count of conspiracy to murder in aid of racketeering, one count of murder in aid of racketeering, one count of conspiracy to distribute or possess with intent to distribute 280 grams and more of crack cocaine, two counts of discharging a firearm in furtherance of a crime of violence or a drug-trafficking crime, and one count of discharging a firearm in connection with the murder of Christopher Cokley on July 4, 2009.
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Since 2011, as part of the “Yonkers Gang Initiative,” this Office has charged over 150 members and associates of Yonkers street gangs, including 48 members and associates of the Elm Street Wolves.
Mr. BHARARA praised the outstanding investigative work of the FBI and the Yonkers Police Department. He also thanked the Westchester County Department of Public Safety and the Westchester County District Attorney’s Office for their assistance in the case. He added that the investigation into Yonkers gang activity is continuing.
The case is being handled by the Office’s Violent and Organized Crime Unit and the White Plains Division. Assistant U.S. Attorneys Andrew Bauer and Jessica Ortiz are in charge of the prosecution.
Wisconsin Man Indicted for Illegally Possessing A FirearmRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced an indictment charging JAMES RYAN FREI, 34, with illegal possession of a firearm. FREI is expected to make an initial appearance on July 16, 2015, before Magistrate Judge Franklin L. Noel in U.S. District Court in Minneapolis, Minn.
According to the indictment and documents filed in both state and federal court, on June 21, 2015, FREI attempted to steal a wireless speaker from a St. Paul Wal-Mart. The defendant was momentarily stopped and questioned by St. Paul Police Officer Michael Tschida as the defendant tried to leave the Wal-Mart. However, FREI pointed a handgun at Officer Tschida’s head before running to a pickup truck outside and recklessly driving away. The defendant led police officers on a high-speed chase, during which he repeatedly pointed a gun at the pursuing squad cars, sped through red lights and drove against traffic on Snelling Avenue. The chase ended when FREI crashed into a parked car and attempted to flee on foot.
According to the indictment and documents filed in both state and federal court, FREI was ineligible to possess firearms in Minnesota because of felony convictions from Oklahoma for robbery with firearms and assault, battery with a dangerous weapon, and escape. FREI also has been convicted in Wisconsin for burglary and escape.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorney Jeffrey S. Paulsen.
Defendant Information:
JAMES RYAN FREI, 34
Tomah, Wis.
Charges:
- Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Wichita Man Sentenced for Robbery at Dollar GeneralRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Wednesday to 71 months in federal prison for robbery, U.S. Attorney Barry Grissom said.
Eric Emmanuel Dear, 23, Wichita, Kan., pleaded guilty to one count of commercial robbery. In his plea, he admitted that on July 27, 2014, he robbed the Dollar General Store at 2747 E. Boulevard Plaza in Wichita.
He entered the store about 10:25 a.m., approached the cash register and demanded money. He carried what appeared to be a handgun in his right hand. During the robbery, he touched the counter with his left hand. Fingerprints taken from the counter were matched to three fingers on his left hand. No firearm was recovered.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. David Lind for their work on the case.
Wheeling man sentenced to 10 years in prison for possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Bernie George Baier, 51, of Wheeling, was sentenced today to 120 months in prison for possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Wheeling Police Department, the West Virginia State Police, and the Federal Bureau of Investigation revealed that Baier obtained a wireless Internet password from his neighbor. He then used the neighbor’s wireless Internet connection to download images of child pornography throughout late 2014. Baier, who was previously convicted in 1995 of the felony offense of “Gross Sexual Imposition” in Belmont County, Ohio, pled guilty in March 2015 to one count of “Possession of Child Pornography.”
In another matter, Alex J. Galensky, 32, of, Martins Ferry, Ohio, was sentenced today to 30 months in prison. Galensky was discovered in May 2014 in possession of child pornography involving a minor under the age of 12. He pled guilty in February 2015 to a criminal Information charging him with one count of “Possession of Child Pornography,” following an investigation by the West Virginia State Police.
Assistant U.S. Attorney Stephen Vorgrin prosecuted the cases on behalf of the government.
U.S. District Judge John Preston Bailey presided.
West Virginia woman sentenced to two years for role in Bethany College extortion plotRead the Press Release
WHEELING, WEST VIRGINIA – Rachaelle Marie Weese, 27, of Moundsville, West Virginia, was sentenced today to 24 months in prison for her role in extorting more than $1,000,000.00 from a former Bethany College employee, United States Attorney William J. Ihlenfeld, II, announced.
Rachaelle Weese was previously convicted of “Extortion Conspiracy” after she and her husband, Jason Weese, extorted money from a female employee of Bethany College who was embezzling money from the school. Jason Weese exchanged sexually explicit text messages and photographs with the female employee. The couple then threatened to disclose the female employee’s theft as well as the existence of the relationship. They used the messages and photographs along with threats of physical force to coerce the female employee into giving them large amounts of the stolen money. They then used the embezzled funds to purchase automobiles, expensive jewelry, and illicit drugs.
Jason Weese was sentenced last year to 63 months in prison for his role in the conspiracy.
United States Attorney Ihlenfeld prosecuted the cases on behalf of the government. The Federal Bureau of Investigation and the Brooke County Sheriff’s Department investigated.
U.S. District Judge John Preston Bailey presided.
West Suburban Real Estate Broker Sentenced to 16 Months in Federal Prison for Mortgage Fraud ScamRead the Press Release
CHICAGO — A west suburban real estate broker was sentenced today to 16 months in federal prison for his role in a mortgage fraud scheme involving a pair of Chicago apartment buildings.
GEORGE DRAVILAS, 37, of Medinah, pleaded guilty in February to one count of bank fraud. In addition to the prison term, U.S. District Judge Gary Feinerman ordered Dravilas to pay $463,110 in restitution. Judge Feinerman ordered Dravilas to begin serving his sentence no later than Sept. 21, 2015.
Dravilas was arrested in May 2014 after a long-term federal undercover investigation exposed a scheme to defraud Standard Bank through fraudulent mortgage loan transactions. Dravilas admitted in his plea agreement that he knowingly provided false documents as part of mortgage loan applications to finance two residential properties in the name of straw buyers who Dravilas had arranged would receive a share of the seller’s loan proceeds. After fraudulently helping to secure the financing, Dravilas schemed to sell both apartment buildings for the inflated sale price of $275,000 each, while agreeing to kick back $100,000 on each transaction to the undercover straw buyers, keeping a fee for himself in the process.
The properties were two-flat apartment buildings located in the 6300 block of South Parnell Avenue and the 6600 block of South Sangamon Street in Chicago. Dravilas acknowledged in his plea agreement that the fair market value of the buildings was $45,000 and $47,000, respectively, and that Standard Bank stood to lose a combined $458,000 from the scam. In addition, as part of his plea agreement, Dravilas acknowledged that he engaged in additional mortgage fraud schemes involving two additional real estate properties in Chicago.
“Mortgage fraud is a crime that affects more than the lenders that funded the loans,” said Assistant U.S. Attorney Andrew S. Boutros. “It has a cascading, domino effect on a variety of property owners, neighborhoods, communities and other constituents.”
A co-defendant, BRIDGET HUTCHERSON, 40, of Chicago, pleaded guilty in April to one count of bank fraud. Hutcherson admitted in a plea declaration that she accepted $600 in December 2013 to supply a confidential informant with fraudulent W-2s, check stubs, and earnings statements in the names of the straw buyers. Hutcherson is scheduled to be sentenced by Judge Feinerman on Aug. 10, 2015, at 10:30 a.m.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago. HUD-OIG and FBI agents conducted the investigation through the South Suburban Financial Crimes Task Force, which includes the Cook County Sheriff’s Police Department, the Internal Revenue Service Criminal Investigation Division, the U.S. Postal Inspection Service, and the U.S. Postal Service Office of Inspector General.
The government is being represented by Assistant U.S. Attorney Andrew S. Boutros.
Weirton man sentenced for unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Michael Northcraft, 42, of Weirton, West Virginia, was sentenced to one year and one day in prison for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Northcraft was previously convicted in the Circuit Court of Hancock County, West Virginia of the felony offense of “Entering a Building Other than a Dwelling.” As a result of that conviction, he is prohibited from possessing a firearm. He was discovered in possession of multiple firearms in December 2014, including three pistols, one revolver, two shotguns, and two rifles.
Northcraft pled guilty in March 2015 to one count of “Prohibited Person in Possession of a Firearm.”
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Brooke County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Waco Businessman Sentenced to Federal Prison for Ponzi SchemeRead the Press Release
In Waco today, Charles D. Jones, 61-year-old owner of Charles D. Jones Capital Management, Inc. (CDJCM), was sentenced to six years in federal prison and ordered to pay $9,329,850.36 restitution for his role in a Ponzi scheme announced Acting United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Kathleen Hickman, Dallas Field Office, and Texas Department of Public Safety Director Steve McCraw.
On February 19, 2015, Jones pleaded guilty to one count of wire fraud. According to court records, CDJCM provided fee-only personalized financial planning and investment management for individuals, trusts, foundations and retirement plans. From 2005 to 2012, the defendant stole money and property from his victim clients and used the stolen proceeds for his own personal benefit. To further perpetuate his Ponzi scheme, the defendant created false account statements and mailed or e-mailed them to his victim clients. Jones also caused fraudulent tax returns to be filed in order to cover up his theft.
This investigation was conducted by the United States Secret Service and the Texas Department of Public Safety Special Crimes Unit. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
United States Settles False Claims Act Allegations Against Jacksonville-Based Compounding Pharmacy for More Than $8 MillionRead the Press Release
Jacksonville, Florida – U.S. Attorney A. Lee Bentley, III announces that the United States has settled allegations that a Jacksonville-based compounding pharmacy knowingly billed the government for improper and medically unnecessary compounding pain prescriptions. The allegations resolved included liability under the False Claims Act (FCA).
The government has reached a settlement with the defendant, Blanding Health Mart Pharmacy (“Blanding”). In reaching this settlement, the parties resolved allegations that, from February 9, 2015, to April 13, 2015, Blanding sought reimbursement for compounding pharmaceutical prescriptions that were not medically necessary and were written by physicians that had never actually seen the patients. The government agreed to accept $8,441,107 to resolve these allegations.
“This case was developed as part of a broader effort by our office to identify and target unscrupulous compounding pharmacies,” said U.S. Attorney Bentley. “Since the beginning of the year, we have been focusing on pharmacies that have abused the TRICARE program and defrauded the government.”
"This settlement highlights another step forward by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office. "Fraud and abuse by pharmacies and medical providers which bill for compounded pain prescriptions is a significant threat to the DoD health care system. TRICARE beneficiaries must be made aware that any medications that are not individually prescribed or dispensed by a bona fide treating physician for a specific medical condition can be ineffective or unsafe."
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated by the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Defense Health Agency Program Integrity Office, and Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Two Northwest Arkansas Sex Offenders Sentenced to Combined 60 Years for Child PornographyRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Ronald John Griffin, age 47, of Huntsville, Arkansas, and Harry Robinson, age 51, of Springdale, Arkansas, were sentenced today to a combined total of 60 years in federal prison for unrelated sexual crimes involving minors. Griffin was sentenced to 20 years in prison without parole followed by 20 years of supervised release on one count of Distribution of Child Pornography. Robinson was sentenced to 40 years in prison without parole followed by a lifetime of supervised release on one count of Production of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “Our office is focused on prosecuting individuals that abuse children, create pornography from that abuse, and traffic in images of these children. Such conduct is horrific, despicable, and reprehensible. As a result of their abhorrent conduct in these cases, these two individuals are going off to prison for a very long time, as well they should.”
"These investigations highlight the continued successful partnership between HSI, the Springdale Police Department, and state and local members of the Arkansas Internet Crimes Against Children Task Force," said Cindy M. Johnson, acting special agent in charge of HSI New Orleans. "Identifying and investigating those who prey on innocent children via the Internet will continue to be one of HSI's highest priorities."
Ronald Griffin: According to court records, on January 1, 2015, Griffin contacted an undercover investigator with the Queensland Australia Police Service. Griffin then engaged the undercover officer in sexually explicit conversation, and subsequently emailed the undercover officer multiple images of child pornography. Among the images emailed by Griffin were two videos of a two-year-old child being sexually assaulted by an adult male. This information was sent to Homeland Security Investigations in Northwest Arkansas. On January 5, 2015, Homeland Security Agents executed a search warrant at the Madison County residence of Ronald Griffin, and at that time, Griffin admitted to setting up and utilizing the suspected email account which had been used to email the images of child pornography to the undercover investigator. In April of this year, Griffin pleaded guilty to distributing child pornography. At sentencing, the Government presented the Court with evidence that at the time of this offense, Griffin was required to register as a sex offender due to a previous state conviction related to Possessing Child Pornography.
Harry Robinson: According to court records, in October, 2014, the Springdale Police Department began investigating Robinson for secretly video-recording a minor while she showered. During the investigation, the Springdale Police department executed a search warrant on Robinson’s home. While executing the search warrant, officers confiscated an Olympus Digital Camera and a PNY brand flash drive. During a subsequent forensic examination of the flash drive, law enforcement discovered multiple nude images of minor females that were taken by Robinson at his residence. The images included minors from eight (8) years of age to approximately 14 years of age. At the time of this offense, Robinson was required to register as a sex offender due to a previous state conviction for Sexual Misconduct involving a minor.
These cases were investigated by Homeland Security Investigations, the Springdale Police Department, and the Internet Crimes Against Children (ICAC) Task Force of Northwest Arkansas. Assistant United States Attorney Dustin Roberts prosecuted the cases for the United States.
The cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two California Men Arrested on Federal Conspiracy Charges in the Eastern District of Missouri for Distributing Drugs via a Commercial Air CarrierRead the Press Release
St. Louis, MO – Two California men were arrested this morning in Los Angeles on charges of conspiring to import and distribute methamphetamine and cocaine into the St. Louis area via the commercial airlines. A third man remains at large.
POE PURCELL, CHALAMAR SCHULTZ TUIPELEHAK and FRANCIS FROST were indicted by a federal grand jury on July 8, 2015, on multiple felony counts, including conspiracy to distribute 50 grams or more of methamphetamine, conspiracy to distribute 5 kilograms or more of cocaine and conspiracy to enter secured area of airport under false pretenses. Purcell and Tuipelehake were arrested in California and are awaiting court appearances. Frost remains at large and is being sought.
According to the indictment, Purcell began working as an American Airlines Cargo Fleet Service Clerk at Los Angeles International Airport in 2001. During the course of the conspiracy, including the time period between February and May 2015, Tuipelehake arranged for California drug traffickers to transport illegal controlled substances from Los Angeles, California, on commercial airliners using Purcell’s position with the airlines to avoid detection and facilitate the transport. Frost’s role involved retrieving the suitcases containing the drugs.
If convicted, these charges carry penalties ranging from ten years to life. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Three Owners and CEO of Falls Church Based Contracting Company Indicted in National Guard Bribery CaseRead the Press Release
ALEXANDRIA, Va. – Three owners and the CEO of a government contracting company headquartered in Falls Church, Virginia – all of whom are retired Army National Guard colonels – were indicted today for their alleged participation in a scheme to bribe an active-duty Army National Guard colonel in order to obtain millions of dollars of Army National Guard marketing, retention and recruitment contracts.
“These criminal charges reflect our continued commitment to rooting out public corruption wherever it occurs,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The public contracting process should be one of integrity and fairness, and these cases should send a strong message that public corruption will be vigorously prosecuted in the military as well as other areas of government.”
“As alleged in the indictment, four retired colonels have been charged with using their corporate marketing firm to funnel bribe payments to high-ranking accomplices in the Army National Guard to corruptly obtain lucrative marketing contracts,” said Leslie Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division. “This case is emblematic of the Criminal Division’s ongoing efforts to root out corruption wherever it may be found, including at the highest ranks of our armed services.”
“The FBI’s top criminal priority is investigating and stopping corrupt officials and the organizations they do business with,” said Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office. “These indictments outline a significant bribery scheme that undermined a fair government contracting process.”
“The actions of the defendants have brought them dishonor and erode confidence in the integrity of a contracting process intended to support their fellow citizen soldiers,” said Paul Sternal, Acting Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “The Defense Criminal Investigative Service, alongside its law enforcement partners and the U.S. Attorney's Office, remain vigilant and committed to bringing individuals who subvert the acquisition system to justice.”
“Today's indictment illustrates our commitment and cooperation shared between law enforcement agencies investigating this type of corruption and bribery,” said Frank Robey, Director of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID). “It is unconscionable how these former military officers betrayed the offices they once held for monetary gain.”
Edwin Stuart Livingston III, 67, of The Villages, Florida; Ronald Joseph Tipa, 68, of Sunny Isles Beach, Florida; Thomas Edward Taylor, 66, of Alexandria; and Ross Bernard DeBlois Sr., 55, of Fairfax Station, Virginia, were indicted by a federal grand jury today with one count of conspiracy to commit bribery, one count of bribery of a public official, one count of conspiracy to commit honest services fraud, and five counts of honest services fraud. Livingston, Tipa and Taylor are owners of a Military Personnel Services Corporation (MPSC). DeBlois is the company’s chief executive officer.
The National Guard Bureau (NGB) is a joint activity of the U.S. Department of Defense (DOD), the state units of the Army National Guard and the Departments of the Army and Air Force. The NGB, whose offices are located in Arlington, Virginia, oversees the distribution of federal funding provided to the Army National Guard and its state units.
The DOD provides millions of dollars of federal funds to the Army National Guard for, among other things, advertising, marketing and sponsorships in order to recruit new members. The NGB then uses these funds to promote the Army National Guard on a national level by entering into marketing contracts.
The indictment charges that Livingston, Tipa, Taylor and DeBlois corrupted the NGB’s contracting process by providing an Army National Guard colonel, Robert Porter, 51, of Columbia, Maryland, with 1 percent of the gross contract amount for all contracts he steered to MPSC.
According to the indictment, Livingston, Tipa and Taylor – along with John Jones, 77, of Stafford, Virginia – were each a 25 percent owner of MPSC and constituted MPSC’s board of directors. The indictment charges that in 2010 or 2011, Livingston and Tipa offered to pay Porter – a then active-duty Colonel in the Army National Guard who held a high level position at the NGB – 1 percent of the gross contract amount of any contracts that he steered to MPSC while he remained in uniform. As part of this alleged corrupt agreement, the 1 percent bribe payment would be paid to Porter only after he retired from the NGB and began working for MPSC, and the payment would be concealed as an “incentive fee” or “bonus” payment in MPSC payroll records.
The indictment charges that throughout 2011 and 2012, in his role as the director of NGB’s Guard Strength Directorate, Porter steered at least three NGB marketing contracts to MPSC, known as the Michael Jordan American Motorcycle Association Motorsports Program, the Trademark Licensing Agency Program contract and the Guard Strength Directorate’s Strength Readiness Support Center Services. These contracts were worth approximately $5.5 million in total, according to the indictment.
MPSC paid Porter his 1 percent bribe payment in three checks: $10,326.50 on July 23, 2015, $10,326.50 on Aug. 19, 2014, and $10,899 on Sept. 10, 2014, according to the indictment.
Porter pleaded guilty to conspiracy to commit bribery and bribery of a public official in September 2014. Jones, a retired brigadier general from the New York Army National Guard and founder of MPSC, pleaded guilty to conspiracy to commit bribery and bribery of a public official in February 2015.
The case was investigated by the FBI’s Washington Field Office, DCIS’s Mid-Atlantic Field Office and Army-CID’s Major Procurement Fraud Unit. The case is being prosecuted by Assistant U.S. Attorney Jonathan Fahey, and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section.
Individuals with allegations of bribery or corruption within the NGB’s retention and recruitment contracting or at MPSC are encouraged to contact the Criminal Division of the FBI’s Washington, D.C. Field Office at (202) 278–2000.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Three Owners and CEO of Contracting Company Indicted for Bribing Army National Guard ColonelRead the Press Release
Three owners and the CEO of a government contracting company headquartered in Falls Church, Virginia, all of whom are retired Army National Guard colonels, were indicted today for their alleged participation in a scheme to bribe an active-duty Army National Guard colonel in order to obtain millions of dollars of Army National Guard marketing, retention and recruitment contracts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office, Acting Special Agent in Charge Paul Sternal of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.
“As alleged in the indictment, four retired colonels have been charged with using their corporate marketing firm to funnel bribe payments to high-ranking accomplices in the Army National Guard to corruptly obtain lucrative marketing contracts,” said Assistant Attorney General Caldwell. “This case is emblematic of the Criminal Division’s ongoing efforts to root out corruption wherever it may be found, including at the highest ranks of our armed services.”
“These criminal charges reflect our continued commitment to rooting out public corruption wherever it occurs,” said U.S. Attorney Boente. “The public contracting process should be one of integrity and fairness, and these cases should send a strong message that public corruption will be vigorously prosecuted in the military as well as other areas of government.”
“The FBI’s top criminal priority is investigating and stopping corrupt officials and the organizations they do business with,” said Assistant Director in Charge McCabe. “These indictments outline a significant bribery scheme that undermined a fair government contracting process.”
“The actions of the defendants have brought them dishonor and erode confidence in the integrity of a contracting process intended to support their fellow citizen soldiers,” said Acting Special Agent in Charge Sternal. “The Defense Criminal Investigative Service, alongside its law enforcement partners and the U.S. Attorney's Office, remain vigilant and committed to bringing individuals who subvert the acquisition system to justice.”
“Today's indictment illustrates our commitment and cooperation shared between law enforcement agencies investigating this type of corruption and bribery,” said Director Robey. “It is unconscionable how these former military officers betrayed the offices they once held for monetary gain.”
Edwin Stuart Livingston III, 67, of The Villages, Florida; Ronald Joseph Tipa, 68, of Sunny Isles Beach, Florida; Thomas Edward Taylor, 66, of Alexandria, Virginia; and Ross Bernard DeBlois Sr., 55, of Fairfax Station, Virginia, are each charged by indictment with one count of conspiracy to commit bribery, one count of bribery of a public official, one count of conspiracy to commit honest services fraud and five counts of honest services fraud.
According to the indictment, Livingston, Tipa, Taylor and John Jones, 77, a retired brigadier general from the New York Army National Guard, each owned 25 percent of MPSC and constituted MPSC’s Board of Directors. DeBlois was the company’s CEO.
The National Guard Bureau (NGB) is a joint activity of the U.S. Department of Defense (DOD), the state units of the Army National Guard and the Departments of the Army and Air Force. The NGB oversees the distribution of federal funding provided to the Army National Guard and its state units.
The DOD provides millions of dollars in federal funds to the NGB for, among other things, advertising, marketing and sponsorships in order to recruit new Army National Guard members. The NGB then uses these funds to promote the Army National Guard on a national level by entering into marketing contracts.
According to the allegations in the indictment, in 2010 or 2011, Livingston and Tipa offered Robert Porter, 50, who then was an active-duty colonel in the Army National Guard who held a high-level position at the NGB, a deal in which MPSC would pay Porter 1 percent of the value of all contracts he steered to MPSC. The indictment alleges that Porter was to receive the bribe payment after he retired from the NGB and began working for MPSC, and that the payment was to be concealed as an “incentive fee” or “bonus” payment in MPSC payroll records.
According to the indictment, during 2011 and 2012, Porter allegedly steered at least three NGB marketing contracts to MPSC, which were worth a total of approximately $5.5 million. The indictment alleges that, during a July 2014 meeting of MPSC’s board of directors, DeBlois confirmed that three contracts were awarded to MPSC while Porter was “in uniform.” Thereafter, Livingston, Tipa, Taylor and Jones allegedly unanimously voted to make the promised bribe payment to Porter. The indictment further alleges that, between July and September 2014, MPSC made three payments to Porter, each for over $10,000.
In September 2014, Porter pleaded guilty to conspiracy to commit bribery and bribery of a public official, and in February 2015, Jones pleaded guilty to conspiracy to commit bribery and bribery of a public official in connection with this scheme.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case was investigated by the FBI’s Washington Field Office, DCIS Mid-Atlantic Field Office and Army-CID’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia.
Individuals with information regarding bribery or corruption within the NGB’s retention and recruitment contracting process or at MPSC should contact the FBI’s Washington Field Office at (202) 278–2000.
MPSC Indictment
Three Oklahoma City Men Sentenced in Aggravated Identity Theft and Counterfeit Check Fraud SchemeRead the Press Release
Oklahoma City, Oklahoma –RICKY AURELL LINDSEY, 45, CHRISTOPHER TROY VICK, 44, and JUSTIN DANIEL ALSEPT, 24, all from Oklahoma City, have been sentenced for their roles in an aggravated identity theft and counterfeit check fraud scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, from October 2013 through July 2014, the three men stole mail from mailboxes to obtain private banking information and also stole wallets to obtain drivers’ licenses and social security cards. Lindsey, Vick, and Alsept then used the stolen information to manufacture counterfeit checks, with which they purchased merchandise and gift cards at retail stores throughout the Oklahoma City area. They later returned some of the purchased merchandise for a cash refund.
On October 22, 2014, the three men were indicted. On January 7, 2014, all three pleaded guilty to conspiracy to commit access device fraud; Lindsey and Vick also pleaded guilty to aggravated identity theft.
On May 13, 2015, Alsept was sentenced to serve 30 months in prison. On June 25, 2015, Lindsey was sentenced to serve 75 months in prison. On July 14, 2015, Vick was ordered to serve 64 months in prison. All three men were ordered to serve three years of supervised release following their release from prison and pay $221,203.07 in restitution to victims.
This sentence is the result of an investigation conducted by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Julia E. Barry.
Reference is made to court filings for further information.
Settlement with Interstate Power and Light to Reduce Emissions from Iowa Power Plants, Fund Projects to Benefit Environment and CommunitiesRead the Press Release
CEDAR RAPIDS, IOWA — In a settlement announced today by the Department of Justice and the Environmental Protection Agency (EPA), Interstate Power and Light, a subsidiary of Alliant Energy, has agreed to install pollution control technology and meet stringent emission rates to reduce harmful air pollution from the company’s seven coal-fired power plants in Iowa. The settlement also requires Interstate Power and Light to spend a total of $6 million on environmental mitigation projects and pay a civil penalty of $1.1 million to resolve alleged violations of the Clean Air Act. Linn County, Iowa, the state of Iowa and the Sierra Club join the United States as co-plaintiffs in the case.
“This settlement is a victory for air quality and public health in Iowa,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement will cover all of Interstate’s coal-burning facilities in Iowa, requiring new pollution cutting technology and environmental projects to enhance air quality in surrounding communities, among other lasting benefits.”
“The emissions reductions required by this settlement will lead to cleaner air and significant environmental and public health benefits for Iowans," said U.S. Attorney Kevin W. Techau for the Northern District of Iowa. “This settlement will eliminate thousands of tons of harmful air pollution each year significantly improving air quality in Iowa and throughout the Midwest. The agreement demonstrates the Department of Justice’s strong efforts, along with EPA, to bring large sources of air pollution into compliance with the Clean Air Act.”
“To serve the communities in which they operate, power plants must protect clean air for those living nearby,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “This case delivers on the goals of EPA’s national enforcement initiative to reduce air pollution from the largest sources. By installing new equipment and funding mitigation projects, Interstate Power & Light can help conserve energy and cut pollution in communities across Iowa.”
Under the settlement, Interstate Power and Light will install and continuously operate new and existing pollution control technology at its two largest plants in Lansing and Ottumwa, Iowa, and will retire or convert to cleaner-burning natural gas its remaining five plants in Burlington, Cedar Rapids, Clinton, Dubuque, and Marshalltown, Iowa. The new, state-of-the-art pollution controls required by the settlement are expected to cost approximately $620 million. EPA estimates that the settlement will reduce sulfur dioxide (SO2) emissions by 32,500 tons per year and nitrogen oxide (NOx) emissions by 3,800 tons per year once the settlement is fully implemented.
Interstate Power and Light will also be required to spend $6 million on environmental mitigation projects. The company will choose from five potential projects, including solar energy and anaerobic digester installations, replacing coal-fired boilers at schools with lower-emission equipment, an alternative fuel vehicle replacement program and a residential program to change out wood burning stoves and fireplaces.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s New Source Review requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
The settlement was filed with the U.S. District Court for the Northern District Court of Iowa for 30 days to allow for public comment. The company is required to pay the penalty within 30 days after the court approves the settlement.
More on the settlement: http://www.justice.gov/enrd/consent-decrees.
More information about EPA’s enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is C15-0061.
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Settlement with Interstate Power and Light to Reduce Emissions from Iowa Power Plants, Fund Projects to Benefit Environment and CommunitiesRead the Press Release
In a settlement announced today by the Department of Justice and the Environmental Protection Agency (EPA), Interstate Power and Light, a subsidiary of Alliant Energy, has agreed to install pollution control technology and meet stringent emission rates to reduce harmful air pollution from the company’s seven coal-fired power plants in Iowa. The settlement also requires Interstate Power and Light to spend a total of $6 million on environmental mitigation projects and pay a civil penalty of $1.1 million to resolve alleged violations of the Clean Air Act. Linn County, Iowa, the state of Iowa and the Sierra Club join the United States as co-plaintiffs in the case.
“This settlement is a victory for air quality and public health in Iowa,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement will cover all of Interstate’s coal-burning facilities in Iowa, requiring new pollution cutting technology and environmental projects to enhance air quality in surrounding communities, among other lasting benefits.”
“The emissions reductions required by this settlement will lead to cleaner air and significant environmental and public health benefits for Iowans," said U.S. Attorney Kevin W. Techau for the Northern District of Iowa. “This settlement will eliminate thousands of tons of harmful air pollution each year significantly improving air quality in Iowa and throughout the Midwest. The agreement demonstrates the Department of Justice’s strong efforts, along with EPA, to bring large sources of air pollution into compliance with the Clean Air Act.”
“To serve the communities in which they operate, power plants must protect clean air for those living nearby,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “This case delivers on the goals of EPA’s national enforcement initiative to reduce air pollution from the largest sources. By installing new equipment and funding mitigation projects, Interstate Power and Light can help conserve energy and cut pollution in communities across Iowa.”
Under the settlement, Interstate Power and Light will install and continuously operate new and existing pollution control technology at its two largest plants in Lansing and Ottumwa, Iowa and will retire or convert to cleaner-burning natural gas its remaining five plants in Burlington, Cedar Rapids, Clinton, Dubuque and Marshalltown, Iowa. The new, state-of-the-art pollution controls required by the settlement are expected to cost approximately $620 million. EPA estimates that the settlement will reduce sulfur dioxide (SO2) emissions by 32,500 tons per year and nitrogen oxide (NOx) emissions by 3,800 tons per year once the settlement is fully implemented.
Interstate Power and Light will also be required to spend $6 million on environmental mitigation projects. The company will choose from five potential projects, including solar energy and anaerobic digester installations, replacing coal-fired boilers at schools with lower-emission equipment, an alternative fuel vehicle replacement program and a residential program to change out wood burning stoves and fireplaces.
SO2 and NOx, two predominant pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts and premature death.
This settlement is part of EPA’s national enforcement initiative to control harmful emissions from large sources of pollution, which includes coal-fired power plants, under the Clean Air Act’s New Source Review requirements. The total combined SO2 and NOx emission reductions secured from all these settlements will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
The settlement was filed with the U.S. District Court for the Northern District Court of Iowa for 30 days to allow for public comment. The company is required to pay the penalty within 30 days after the court approves the settlement.
More on the settlement: http://www.justice.gov/enrd/consent-decrees
More information about EPA’s enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Sandusky man faces charges related to fraudulent invoicesRead the Press Release
A criminal information was filed against charging a Sandusky man with conspiracy and wire fraud for allegedly submitting fraudulent invoices, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Robert A. Bellamy, 43, worked at an auto dealership. He conspired with someone identified in the charges only as MKC. This person was a regular customer at the dealership where Bellamy worked, according to the information.
MKC was responsible for managing Castalia Farms, a recreational facility then owned by Owens-Illinois, Inc. The company equipped Castalia Farms with several automobiles, which MKC had serviced at the dealership where Bellamy worked, according to the information.
Bellamy, MKC and others devised a scheme to defraud Owens-Illinois in which Bellamy created invoices for vehice repairs that never occurred, repairs on vehicles owned by MKC, his family or his friends and auto parts never installed in vehicles owned by Owens-Illinois. Bellamy submitted the invoices to through his employer to MKC and Castalia Farms, and Owens-Illinois paid the fraudulent invoices, according to the information.
The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Sandusky, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Russian National Sentenced to 24 Months in Prison for Online Wire Fraud SchemeRead the Press Release
BOSTON – A Russian man known by the online nickname “Joga” was sentenced today for his role in an online fraud scheme that used stolen credit and debit card information to acquire more than $650,000 in consumer goods.
Alexey Svetlichnyy, 32, a Russian citizen living in Tewksbury, Mass., was sentenced by U.S. District Judge Allison D. Burroughs to 24 months in prison. Additionally, Svetlichnyy was ordered to forfeit more than $425,000 in United States currency, along with a Lexus and other high-end consumer goods he obtained through the scheme. In March 2015, Svetlichnyy pleaded guilty to conspiring to commit wire fraud
According to court documents, Svetlichnyy and others obtained stolen credit and debit card data and related accountholder information using online forums dedicated to the trafficking of stolen information.
Svetlichnyy and his co-conspirators used the stolen data to make online purchases of numerous goods, including Apple iPads, Samsung cell phones, laptop computers, servers, computer processors, scuba diving equipment, high-end camera lenses, and water filtration equipment. They also used the stolen data to make online purchases of stored value cards issued by or on behalf of American Express, Visa, Budget Rental Car, Frontier Airlines, Macy’s and other retailers.
When making these online purchases, Svetlichnyy, along with his co-conspirators, frequently used the names and billing addresses associated with the stolen data, but then shipped the goods and stored value cards to addresses that Svetlichnyy controlled.
To avoid detection, Svetlichnyy and his co-conspirators utilized Russian language social networks to recruit accomplices, who were paid to receive these stolen consumer goods and re-ship the items to addresses controlled by Svetlichnyy in Chelmsford and North Reading, Mass., among other places. These addresses were primarily private commercial mailboxes that Svetlichnyy opened in the name of a Delaware company, Micaxr, LLC (Micaxr).
From March 2010 to October 2013, Svetlichnyy sold the stolen consumer goods and stored value cards for more than $427,000 on eBay. Svetlichnyy and his co-conspirators then wired a portion of the criminal proceeds overseas, including to Russian bank accounts.
United States Attorney Carmen M. Ortiz; Lisa Quinn, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. Ortiz also thanked the U.S. Secret Service’s Cyber Investigative Section and the Tewksbury Police Department for their involvement in the investigation that led to today’s sentencing.
The case was prosecuted by Seth B. Kosto of Ortiz’s Cybercrime Unit and Eric Christofferson of Ortiz’s Economic Crimes Unit.
Rochester Radiologist Pleads Guilty to Defrauding Health Insurance ProgramsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Thomas F. Stephenson, MD, 72, of Rochester, NY, pleaded guilty to committing health care fraud before U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorney John J. Field, who is handling the case, stated that Stephenson, a radiologist, owned and operated Westside Imaging in Rochester. From January 2007 to April 2010, the defendant engaged in a scheme to defraud Excellus Health, MVP Health and Medicare by double-billing certain x-rays. In total, Stephenson fraudulently sought reimbursements of approximately $135,961.77.
“It is an unfortunate fact that fraud directed at our health care system results in greater costs for everyone, including taxpayers,” said U.S. Attorney Hochul. “As this case demonstrates, law enforcement will vigorously investigate such fraud and will prosecute anyone – including doctors – found to have perpetrated the crime.”
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for November 6, 2015, at 3:00 p.m. before Judge Geraci.
Raleigh Man Previously Charged with the Manufacturing of Child Pornography Pleads GuiltyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today WILLIAM TOWNER AKERS of Raleigh, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones, Jr., to one count of manufacturing child pornography, in violation of Title 18, United States Code, Section 2251(a)and (d).
According to the investigation, On January 5, 2014, a state search warrant was executed at Bailey Joe and Elizabeth Mills’ residence and several laptop computers, external hard drives and cellphones were seized. A subsequent computer forensics examination of the seized items located several homemade videos taken by the Mills. The Mills have previously pled guilty and been sentenced for Manufacturing Child Pornography. The videos show AKERS sexually molesting an eight year old female in August 2013. On March 10, 2015, a federal complaint charging “John Doe aka Peter Gilbert” with conspiracy to manufacture Child Pornography was obtained. AKERS was later identified as the perpetrator and arrested on March 12, 2015 after several tipline callers identified him. AKERS was the IT manager for a company located in Raleigh.
At sentencing, set for the October 2015, term of court AKERS faces up to 30 years imprisonment.
The criminal investigation of this case was conducted by the United States Immigration and Customs Enforcement’s Homeland Security Investigations – Raleigh, the Harnett County Sheriff’s Office, and the Raleigh Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Prison Inmate Found Guilty of Conspiracy to Threaten WitnessRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal jury in Harrisburg today found Nicholas I. Stanishia, age 45, an Ohio prison inmate, guilty of conspiracy to transmit a threat to injure a central Pennsylvania witness who had testified against him. The case was tried before U.S. District Court Judge John E. Jones, III. Sentencing is deferred pending the preparation of a presentence report.
Co-defendants Marcia J. Weber, age 46, of Loveland, Ohio, and Martin Jay Wilson, age 43, of Kansas City, Missouri, both pled guilty to the conspiracy in April 2015. Jody Six, age 40 and Anthony Vaughn, age 41, both Ohio inmates, pled guilty to the conspiracy in July 2015. Sentencing dates have not been scheduled.
According to U.S. Attorney Peter Smith, the evidence presented by Assistant United States Attorney Daryl Bloom at the three-day trial established that Stanishia, while serving a sentence of life imprisonment plus 23 years at the Southeastern Correctional Institution in Lancaster, Ohio, for a murder conviction, developed an intimate relationship with clinical psychologist Marcia Weber who helped orchestrate Stanishia’s release from prison by attempting to get the sole witness who identified Stanishia at his Ohio murder trial to recant his trial testimony.
The surviving witness was also shot during the murder but was able to flee. Stanishia was able to escape and was captured three years later and tried for the murder. Stanishia was also convicted of a rape and burglary committed while on the run. He was sentenced to 54 years’ imprisonment for this offense.
Stanishia and Weber met in an Ohio correctional facility where he was participating in a work release program. Weber hired a private investigator to help obtain information about the witness, including where he and his wife lived, where he worked, and information about his children and other immediate family. Stanishia and Weber then hired Wilson to travel from Missouri to Pennsylvania, where Wilson rented a car, drove to the witness’s house near Harrisburg and placed a gas can filled with water at the witness’s porch.
Stanishia, with the help of Six and Vaughn - both other inmates - used a smuggled-in cellular telephone to contact the witness to get the victim/witness to sign an affidavit prepared by Stanishia. Stanishia stated in the call that the next time the gas can would not be filled with water. Stanishia referenced the gas can as a message to the victim conveying his ability to reach the witness even while imprisoned in Ohio. Stanishia used the address of the victim’s sister on the envelope that contained the mailed affidavit and mentioned the victim’s wife by name during the call to show his extensive knowledge of the victim and his family. In addition, during the call Stanishia claimed to be a high ranking member of the Aryan Brotherhood and that his release was being orchestrated by the Aryan Brotherhood. The contacts with the witness were subsequently reported to law enforcement agencies. Many of the phone calls were recorded at the prison and played during the trial.
Stanishia testified on his own behalf at the trial, admitting that he participated in the scheme but denying that he actually intended to threaten the witness. The jury found him guilty of all three charges in the Indictment.
This case was a collaborative effort between the Federal Bureau of Investigation (FBI) Field Offices in Philadelphia (Harrisburg RA), Cincinnati, and Columbus, Ohio, the Hampden Township Police Department, the Lower Paxton Police Department, the Ohio State Highway Patrol, and Investigators from the Southeastern Correctional Institution in Ohio.
This case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
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Owners of the Lawman Gun Shop SentencedRead the Press Release
SAN JUAN, Puerto Rico – María Del Carmen Rivera-Negrón and Julio Colón-Santiago, owners of Lawman Gun Shop, were sentenced to 24 months and 36 months in prison, respectively, for unlawful production of an identification document, specifically, a Puerto Rico Concealed Carry Weapons Permit announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendants pled guilty on August 11, 2014.
On or about the 21st day of May, 2012, in the District of Puerto Rico, the defendants aiding and abetting others, did willfully and knowingly cause, without lawful authority, production of identification documents, authentication features, and false identification documents, to wit, a Commonwealth of Puerto Rico Concealed Carry Weapons Permit under Weapons Permit Number XX129, with the help of Attorney and Notary Public Antonio Peluzzo-Perotin.
María Del Carmen Rivera-Negrón and Julio Colón-Santiago co-owned The Lawman Gun Shop, a federally licensed firearms (FFL) dealer. Using their positions, the defendants participated in a scheme to have Commonwealth of Puerto Rico Concealed Carry Weapons Permits issued without compliance with applicable law. Defendants’ scheme involved over 250 victims and more than $1,000,000 in losses, some to the Puerto Rico Department of Treasury.
Defendants used their special skills as owners of an armory and federally licensed firearms dealers in order to carry out the scheme. The Board of Directors of Rivera Pagán & Asociados, Inc., d/b/a The Lawman Gun Shop also authorized a guilty plea on behalf of the Commonwealth of Puerto Rico Corporation.
María Del Carmen Rivera-Negrón, Julio Colón-Santiago, and Rivera Pagán & Asociados, Inc., d/b/a The Lawman Gun Shop admitted that the scheme permitted unqualified individuals to carry firearms without being properly vetted under the law thereby circumventing the statutory, judicial, and bureaucratic processes for obtaining a Puerto Rico Concealed Carry Weapons Permit.
“As federally licensed firearms dealers and gun shop owners, the defendants were placed in a unique position of trust by both local and federal authorities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “They were entrusted with ensuring that guns were placed only in the hands of those who should have them under the law. The defendants traded and abused that trust -- for cash. That is simply wrong, especially on our island where gun violence is a continuing concern.”
Former attorney Antonio M. Peluzzo-Perotin was sentenced on March 25, 2015, to 90 months in prison, and three years of supervised release. Julio Medina-Mojica, former President of the Humacao Shooting Range, was sentenced to 27 months in prison.
The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Department (PRPD) are in charge of the investigation. The case was prosecuted by Assistant U.S. Attorneys José Capó-Iriarte and Luke Cass.
New York Man Sentenced to 10 Months for Credit Card FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Gyadeen P. Ramdihall, 28, of Bronx, New York, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 10 months in prison and three years of supervised release for conspiracy to commit access device fraud. He was also ordered to pay $17,987.56 in restitution. Ramdihall pleaded guilty on January 29, 2015.
According to court documents, on about September 4, 2013, Ramdihall, Jervis Hillaire and a third person travelled from New York to Maine with 38 credit, debit and gift cards that were counterfeit or fraudulently altered. In Maine, the three used cards to purchase gift cards and electronic devices from vendors including, among others, Best Buy, Apple, Target and Walmart. On October 10, 2013, an Ohio State Trooper stopped Ramdihall for speeding. Hillaire was his passenger. A total of 17 fraudulent access device cards in Hillaire’s name were found in the trunk of the vehicle under the spare tire. On January 24, 2014, the Biddeford Police stopped Ramdihall near the Walmart store in Biddeford. Hillaire was again his passenger. Ramdihall was arrested for driving with a suspended license; Hillaire was arrested for providing a false identity. Police discovered eight fraudulent access device cards in Hillaire’s boot.
In pronouncing sentence, Judge Hornby observed that the use of false credit cards was a serious problem, that he was concerned that Ramdihall did not understand the seriousness of his situation and that a sentence that would provide deterrence was required.
The investigation was conducted by the U.S. Secret Service, the Kittery and Biddeford Police Departments and the Ohio State Police.
New Orleans Man Pleads Guilty to Conspiracy Related to Falsifying Records for Gun PurchaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ORONDE GABRIEL, age 30, of New Orleans, pled guilty today to one count of conspiring to falsify ATF records related to the purchase of a firearm.
According to court documents, GABRIEL conspired to assist two other individuals in the purchase of a firearm from Academy Sports in Elmwood on June 9, 2013. GABRIEL was a previously convicted felon and prohibited from buying a firearm. The individual who purchased the firearm falsified an ATF form regarding the true ownership of the firearm, which is a federal offense.
GABRIEL faces a maximum sentence of five years imprisonment, followed by 3 years of supervised release, and a maximum fine of $250,000. U.S. District Judge Sarah S. Vance set sentencing on November 18, 2015.
U.S. Attorney Polite praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) led the investigation along with the St. Bernard Sheriff’s Office. Assistant United States Attorney Edward J. Rivera is in charge of the prosecution.
Ordone Gabriel Factual Basis.pdf (350.27 KB)
Navajo Woman from Arizona Sentenced to Probation for Federal Assault and Child Abuse Charges in New MexicoRead the Press Release
ALBUQUERQUE – Bridget Wilson, 22, an enrolled member of the Navajo Nation who resides in Sawmill, Ariz., was sentenced this afternoon in federal court in Albuquerque, N.M., to three years of probation for her conviction on assault and child abuse charges.
Wilson was arrested on Feb. 10, 2015, on an indictment charging her with assault resulting in serious bodily injury and abuse of a child. According to the indictment, Wilson committed the offenses on April 4, 2014, within the Navajo Indian Reservation in San Juan County, N.M.
On April 15, 2015, Wilson pled guilty the indictment and admitted that on April 4, 2014, she assaulted the victim, causing the victim to suffer serious bodily injury. She also acknowledged putting the victim, who was under the age of 18 years, in a situation that endangered the victim’s life or health.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Meridian Residents Plead Guilty to Stolen Identity Refund FraudRead the Press Release
Jackson, Miss - Joyce Knight, 38, and Daniel Kelley, 41, both of Meridian, pled guilty on Monday, July 13, 2015 to filing false claims for payment against the United States for their roles in using stolen identities to file false federal income tax returns, announced U.S. Attorney Gregory K. Davis and IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie.
According to the evidence produced at the plea hearing, Kelley stole the names, social security numbers and dates of birth of inmates from 2009 through 2011 at the Greene County Correctional Facility and Central Mississippi Correctional Facility, while he was incarcerated at each prison. Kelley wrote down the stolen information in books he kept in his cell, including inside his Bible, and he would pass the information to Knight via cell phone which he had access to in prison. During the course of the scheme, 27 fraudulent federal income tax returns were filed, which resulted in the United States Treasury paying out $16,000 in bogus tax returns.
"Those who file false tax refund claims using stolen identities threaten the integrity of our federal income tax system and pose a real danger to the security of the individuals whose identities are stolen," said U.S. Attorney Gregory K. Davis. "Citizens of this district should know we are dedicated to prosecuting individuals like these and to deterring similar crimes."
Special Agent in Charge of IRS Criminal Investigation Jerome R. McDuffie stated: "Joyce Knight and Daniel Kelley have accepted responsibility for their actions, and we are pleased that they will now be held accountable for their wrongdoings. The sentencing in this matter now rests with the court. The Special Agents of IRS Criminal Investigation will continue to assist the United States Attorney’s Office and work toward a favorable conclusion which would ensure that this case serves as a deterrent to other unscrupulous individuals who would attempt to victimize the taxpaying citizens of this country."
Knight and Kelley will be sentenced on September 24, 2015 at 9:30 and 10:00 am respectively, by United States District Court Judge Henry T. Wingate. They each face a maximum penalty of up to five years in prison, a $250,000 fine, and restitution in the amount of $16,000. Kelley, who also pled guilty to aggravated identity theft, will also receive a mandatory sentence of two years in prison that will run consecutive to the sentence imposed for his conviction for filing false claims.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Scott Gilbert.
Major Computer Hacking Forum DismantledRead the Press Release
As Part of Coordinated Law Enforcement Efforts in 20 Countries, United States Charges 12 Defendants in Connection with Computer Fraud Conspiracy
The computer hacking forum known as Darkode was dismantled, and criminal charges have been filed in the Western District of Pennsylvania and elsewhere against 12 individuals associated with the forum, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Deputy Director Mark F. Giuliano of the FBI.
“Hackers and those who profit from stolen information use underground Internet forums to evade law enforcement and target innocent people around the world,” said Assistant Attorney General Caldwell. “This operation is a great example of what international law enforcement can accomplish when we work closely together to neutralize a global cybercrime marketplace.”
“Of the roughly 800 criminal internet forums worldwide, Darkode represented one of the gravest threats to the integrity of data on computers in the United States and around the world and was the most sophisticated English-speaking forum for criminal computer hackers in the world,” said U.S. Attorney Hickton. “Through this operation, we have dismantled a cyber hornets’ nest of criminal hackers which was believed by many, including the hackers themselves, to be impenetrable.”
“This is a milestone in our efforts to shut down criminals’ ability to buy, sell, and trade malware, botnets and personally identifiable information used to steal from U.S. citizens and individuals around the world,” said Deputy Director Giuliano. “Cyber criminals should not have a safe haven to shop for the tools of their trade and Operation Shrouded Horizon shows we will do all we can to disrupt their unlawful activities.”
As alleged in the charging documents, Darkode was an online, password-protected forum in which hackers and other cyber-criminals convened to buy, sell, trade and share information, ideas, and tools to facilitate unlawful intrusions on others’ computers and electronic devices. Before becoming a member of Darkode, prospective members were allegedly vetted through a process in which an existing member invited a prospective member to the forum for the purpose of presenting the skills or products that he or she could bring to the group. Darkode members allegedly used each other’s skills and products to infect computers and electronic devices of victims around the world with malware and, thereby gain access to, and control over, those devices.
The takedown of the forum and the charges announced today are the result of the FBI’s infiltration, as part of Operation Shrouded Horizon, of the Darkode’s membership. The investigation of the Darkode forum is ongoing, and the U.S. Attorney’s Office of the Western District of Pennsylvania is taking a leadership role in conjunction with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges announced today are part of a coordinated effort by a coalition of law enforcement authorities from 20 nations to charge, arrest or search 70 Darkode members and associates around the world. The nations comprising the coalition include Australia, Bosnia and Herzegovina, Brazil, Canada, Colombia, Costa Rica, Cyprus, Croatia, Denmark, Finland, Germany, Israel, Latvia, Macedonia, Nigeria, Romania, Serbia, Sweden, the United Kingdom and the United States. Today’s actions represent the largest coordinated international law enforcement effort ever directed at an online cyber-criminal forum.
The following defendants face charges in the Western District of Pennsylvania:
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Johan Anders Gudmunds, aka Mafi aka Crim aka Synthet!c, 27, of Sollebrunn, Sweden, is charged by indictment with conspiracy to commit computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He is accused of serving as the administrator of Darkode, and creating and selling malware that allowed hackers to create botnets.Gudmunds also allegedly operated his own botnet, which at times consisted of more than 50,000 computers, and used his botnet to steal data from the users of those computers on approximately 200,000,000 occasions.
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Morgan C. Culbertson, aka Android, 20, of Pittsburgh, is charged by criminal information with conspiring to send malicious code. He is accused of designing Dendroid, a coded malware intended to remotely access, control, and steal data from Google Android cellphones. The malware was allegedly offered for sale on Darkode.
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Eric L. Crocker, aka Phastman, 29, of Binghamton, New York, is charged by criminal information with sending spam.He is accused of being involved in a scheme involving the use of a Facebook Spreader which infected Facebook users’ computers, turning them into bots which Crocker controlled through the use of command and control servers. Crocker sold the use of this botnet to others for the purpose of sending out massive amounts of spam.
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Naveed Ahmed, aka Nav aka semaph0re, 27, of Tampa, Florida; Phillip R. Fleitz, aka Strife, 31, of Indianapolis; and Dewayne Watts, aka m3t4lh34d aka metal, 28, of Hernando, Florida, are each charged by criminal information with conspiring to send spam. They are accused of participating in a sophisticated scheme to maintain a spam botnet that utilized bulletproof servers in China to exploit vulnerable routers in third world countries, and that sent millions of electronic mail messages designed to defeat the spam filters of cellular phone providers.
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Murtaza Saifuddin, aka rzor, 29, of Karachi, Sindh, Pakistan, is charged in an indictment with identity theft.Saifuddin is accused of attempting to transfer credit card numbers to others on Darkode.
The following defendant faces charges in the Eastern District of Wisconsin:
- Daniel Placek, aka Nocen aka Loki aka Juggernaut aka M1rr0r, 27, of Glendale, Wisconsin, is charged by criminal information with conspiracy to commit computer fraud.He is accused of creating the Darkode forum, and selling malware on Darkode designed to surreptitiously intercept and collect email addresses and passwords from network communications.
The following defendants face charges in the District of Columbia:
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Matjaz Skorjanc, aka iserdo aka serdo, 28, of Maribor, Slovenia; Florencio Carro Ruiz, aka NeTK aka Netkairo, 36, of Vizcaya, Spain; and Mentor Leniqi, aka Iceman, 34, of Gurisnica, Slovenia, are each charged in a criminal complaint with racketeering conspiracy; conspiracy to commit wire fraud and bank fraud; conspiracy to commit computer fraud, access device fraud and extortion; and substantive computer fraud.Skorjanc also is accused of conspiring to organize the Darkode forum and of selling malware known as the ButterFly bot.
The following defendant faces charges in the Western District of Louisiana:
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Rory Stephen Guidry, aka [email protected], of Opelousas, Louisiana, is charged with computer fraud. He is accused of selling botnets on Darkode.
The charges and allegations are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This investigation, Operation Shrouded Horizon, is being conducted by the FBI with assistance from Europol and their European Cyber Crime Center (EC3). This case is being prosecuted by Assistant U.S. Attorneys James T. Kitchen and Charles A. Eberle of the Western District of Pennsylvania and Trial Attorneys Gavin A. Corn, Marie-Flore Johnson and Harold Chun of CCIPS, Assistant U.S. Attorney Erica O’Neil of the Eastern District of Wisconsin and Assistant U.S. Attorney Myers Namie of the Western District of Louisiana. The Criminal Division’s Office of International Affairs also provided significant assistance.
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In a related case, Aleksandr Andreevich Panin, aka Gribodemon, 26, of Tver, Russia; and Hamza Bendelladj, aka Bx1, 27, of Tizi Ouzou, Algeria, pleaded guilty on Jan. 28, 2014, and June 26, 2015, respectively, in the Northern District of Georgia in connection with developing, distributing and controlling SpyEye, a malicious banking trojan designed to steal unsuspecting victims’ financial and personally identifiable information. Bendelladj and Panin advertised SpyEye to other members on Darkode. One of the servers used by Bendelladj to control SpyEye contained evidence of malware that was designed to steal information from approximately 253 unique financial institutions around the world. Panin and Bendelladj will be sentenced at a later date.
This case is being prosecuted by Assistant U.S. Attorneys Steven Grimberg and Kamal Ghali of the Northern District of Georgia. All press inquiries relating to this case should be directed to the U.S. Attorney’s Office for the Northern District of Georgia at [email protected] or (404) 581-6016.
Ahmed et al Information - Western District of Pennsylvania
Crocker Information - Western District of Pennsylvania
Culbertson Information - Western District of Pennsylvania
Gudmunds Indictment - Western District of Pennsylvania
Saifuddin Indictment - Western District of Pennsylvania
Placek Information - Eastern District of Wisconsin
Panin et al Indictment - Northern District of Georgia
Skorjanc et al Complaint - District of Columbia
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Major Computer Hacking Forum DismantledRead the Press Release
As Part of Coordinated Law Enforcement Efforts in 20 Countries, United States Charges 12 Defendants in Connection with Computer Fraud Conspiracy
WASHINGTON – The computer hacking forum known as Darkode was dismantled, and criminal charges have been filed in the Western District of Pennsylvania and elsewhere against 12 individuals associated with the forum, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David J. Hickton of the Western District of Pennsylvania and Deputy Director Mark F. Giuliano of the FBI.
“Hackers and those who profit from stolen information use underground Internet forums to evade law enforcement and target innocent people around the world,” said Assistant Attorney General Caldwell. “This operation is a great example of what international law enforcement can accomplish when we work closely together to neutralize a global cybercrime marketplace.”
“Of the roughly 800 criminal internet forums worldwide, Darkode represented one of the gravest threats to the integrity of data on computers in the United States and around the world and was the most sophisticated English-speaking forum for criminal computer hackers in the world,” said U.S. Attorney Hickton. “Through this operation, we have dismantled a cyber hornets’ nest of criminal hackers which was believed by many, including the hackers themselves, to be impenetrable.”
“This is a milestone in our efforts to shut down criminals’ ability to buy, sell, and trade malware, botnets and personally identifiable information used to steal from U.S. citizens and individuals around the world,” said Deputy Director Giuliano. “Cyber criminals should not have a safe haven to shop for the tools of their trade and Operation Shrouded Horizon shows we will do all we can to disrupt their unlawful activities.”
As alleged in the charging documents, Darkode was an online, password-protected forum in which hackers and other cyber-criminals convened to buy, sell, trade and share information, ideas, and tools to facilitate unlawful intrusions on others’ computers and electronic devices. Before becoming a member of Darkode, prospective members were allegedly vetted through a process in which an existing member invited a prospective member to the forum for the purpose of presenting the skills or products that he or she could bring to the group. Darkode members allegedly used each other’s skills and products to infect computers and electronic devices of victims around the world with malware and, thereby gain access to, and control over, those devices.
The takedown of the forum and the charges announced today are the result of the FBI’s infiltration, as part of Operation Shrouded Horizon, of the Darkode’s membership. The investigation of the Darkode forum is ongoing, and the U.S. Attorney’s Office of the Western District of Pennsylvania is taking a leadership role in conjunction with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges announced today are part of a coordinated effort by a coalition of law enforcement authorities from 20 nations to charge, arrest or search 70 Darkode members and associates around the world. The nations comprising the coalition include Australia, Bosnia and Herzegovina, Brazil, Canada, Colombia, Costa Rica, Cyprus, Croatia, Denmark, Finland, Germany, Israel, Latvia, Macedonia, Nigeria, Romania, Serbia, Sweden, the United Kingdom and the United States. Today’s actions represent the largest coordinated international law enforcement effort ever directed at an online cyber-criminal forum.
The following defendants face charges in the Western District of Pennsylvania:
- Johan Anders Gudmunds, aka Mafi aka Crim aka Synthet!c, 27, of Sollebrunn, Sweden, is charged by indictment with conspiracy to commit computer fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He is accused of serving as the administrator of Darkode, and creating and selling malware that allowed hackers to create botnets. Gudmunds also allegedly operated his own botnet, which at times consisted of more than 50,000 computers, and used his botnet to steal data from the users of those computers on approximately 200,000,000 occasions.
- Morgan C. Culbertson, aka Android, 20, of Pittsburgh, is charged by criminal information with conspiring to send malicious code. He is accused of designing Dendroid, a coded malware intended to remotely access, control, and steal data from Google Android cellphones. The malware was allegedly offered for sale on Darkode.
- Eric L. Crocker, aka Phastman, 39, of Binghamton, New York, is charged by criminal information with sending spam. He is accused of being involved in a scheme involving the use of a Facebook Spreader which infected Facebook users’ computers, turning them into bots which Crocker controlled through the use of command and control servers. Crocker sold the use of this botnet to others for the purpose of sending out massive amounts of spam.
- Naveed Ahmed, aka Nav aka semaph0re, 27, of Tampa, Florida; Phillip R. Fleitz, aka Strife, 31, of Indianapolis; and Dewayne Watts, aka m3t4lh34d aka metal, 28, of Hernando, Florida, are each charged by criminal information with conspiring to send spam. They are accused of participating in a sophisticated scheme to maintain a spam botnet that utilized bulletproof servers in China to exploit vulnerable routers in third world countries, and that sent millions of electronic mail messages designed to defeat the spam filters of cellular phone providers.
- Murtaza Saifuddin, aka rzor, 29, of Karachi, Sindh, Pakistan, is charged in an indictment with identity theft. Saifuddin is accused of attempting to transfer credit card numbers to others on Darkode.
The following defendant faces charges in the Eastern District of Wisconsin:
- Daniel Placek, aka Nocen aka Loki aka Juggernaut aka M1rr0r, 27, of Glendale, Wisconsin, is charged by criminal information with conspiracy to commit computer fraud. He is accused of creating the Darkode forum, and selling malware on Darkode designed to surreptitiously intercept and collect email addresses and passwords from network communications.
The following defendant face charges in the District of Columbia:
- Matjaz Skorjanc, aka iserdo aka serdo, 28, of Maribor, Slovenia; Florencio Carro Ruiz, aka NeTK aka Netkairo, 36, of Vizcaya, Spain; and Mentor Leniqi, aka Iceman, 34, of Gurisnica, Slovenia are each charged in a criminal complaint with racketeering conspiracy; conspiracy to commit wire fraud and bank fraud; conspiracy to commit computer fraud, access device fraud, and extortion; and substantive computer fraud. Skorjanc also is accused of conspiring to organize the Darkode forum and of selling malware known as the ButterFly bot.
The following defendant faces charges in the Western District of Louisiana:
- Rory Stephen Guidry, aka [email protected], of Opelousas, Louisiana, is charged with computer fraud. He is accused of selling botnets on Darkode.
The charges and allegations are merely accusations. A defendant is presumed innocent until and unless proven guilty.
This investigation, Operation Shrouded Horizon, is being conducted by the FBI with assistance from Europol and their European Cyber Crime Center (EC3). This case is being prosecuted by Assistant U.S. Attorneys James T. Kitchen and Charles A. Eberle of the Western District of Pennsylvania and Senior Trial Attorneys Gavin A. Corn, Marie-Flore Johnson and Harold Chun of CCIPS, Assistant U.S. Attorney Erica O’Neil of the Eastern District of Wisconsin and Assistant U.S. Attorney Myers Namie of the Western District of Louisiana. The Criminal Division’s Office of International Affairs also provided significant assistance.
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In a related case, Aleksandr Andreevich Panin, aka Gribodemon, 26, of Tver, Russia; and Hamza Bendelladj, aka Bx1, 27, of Tizi Ouzou, Algeria, pleaded guilty on Jan. 28, 2014, and June 26, 2015, respectively, in the Northern District of Georgia in connection with developing, distributing and controlling SpyEye, a malicious banking trojan designed to steal unsuspecting victims’ financial and personally identifiable information. Bendelladj and Panin advertised SpyEye to other members on Darkode. One of the servers used by Bendelladj to control SpyEye contained evidence of malware that was designed to steal information from approximately 253 unique financial institutions around the world. Panin and Bendelladj will be sentenced at a later date.
This case is being prosecuted by Assistant U.S. Attorneys Steven Grimberg and Kamal Ghali of the Northern District of Georgia. All press inquiries relating to this case should be directed to the U.S. Attorney’s Office for the Northern District of Georgia at [email protected] or (404) 581-6016.
Kinmundy Man Sentenced to 84 Months on Firearm ChargeRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that James C. Riley, 44, of Kinmundy, Illinois, was sentenced in federal district court in East St. Louis for the crime of Possession of a Firearm by a Convicted Felon.
Riley was sentenced to 84 months in federal prison, to be followed by 3 years’ supervised release, a $100 special assessment, and a fine of $300. The charge relates to Riley’s possession of four firearms in April, 2009, at his home in Kinmundy, and his sale of the four firearms in Mt. Vernon, Illinois, in April, 2009. Riley was previously convicted of Retail Theft, in violation of Illinois State law on October 13, 2004, in Ogle County, Illinois.
The case was investigated by members of the Illinois Secretary of State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Justice Department Obtains $251,500 Settlement in Housing Discrimination Lawsuit Against Effingham, Illinois, LandlordRead the Press Release
The Justice Department today announced an agreement with the owners and operators of Four Seasons Estates Mobile Home Park in Effingham, Illinois, to settle allegations of race and familial status discrimination. Under the consent order, which must still be approved by the U.S. District Court of the Southern District of Illinois, the defendants must pay $217,500 to victims of discrimination, who intervened in the lawsuit, to account for the harm they suffered and their attorneys’ fees, and an additional $34,000 to the government as a civil penalty.
The lawsuit alleged that the mobile home park’s manager, Barbara Crubaugh, refused to let an African-American individual be added as a resident at the park when he moved in with his white girlfriend and her uncle. The lawsuit also alleged that while the African-American individual was staying at the mobile home park, he was subjected to harassment by the manager’s son, David Crubaugh. The family moved out after the park threatened them with eviction if the African-American individual did not move out. They contacted HOPE Fair Housing Center, an organization in Illinois that advocates for equal opportunity in housing, who in turn contacted the Department of Housing and Urban Development (HUD) and the Justice Department. HUD referred the complaints to the Justice Department for further investigation as a potential pattern or practice of discrimination.
The lawsuit also alleged discrimination on the basis of race based on fair housing testing conducted by the Department of Justice’s Fair Housing Testing Program. The testing revealed that Barbara Crubaugh treated prospective residents differently based on their race by, for example, requiring African-American testers to fill out applications while not requiring white testers to do so, asking African-American testers if they had felonies but not asking the same of white testers, informing African-American testers that she would have to inspect their mobile home while not so informing white testers and quoting higher move-in costs to African-American testers.
Until this lawsuit was filed, there had been no African-American residents at the mobile home park since at least 2007, when Barbara Crubaugh became manager.
Additionally, the lawsuit alleged, and the defendants admitted, that they discriminated on the basis of familial status (having children under the age of 18) by prohibiting families with children from living on one of the four rows of lots at the mobile home park.
“Federal law guarantees everyone the right to housing on equal terms and the right to live free from harassment because of their race or color,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Settlements such as this one help ensure that all people can enjoy that right.”
“I am pleased that the operators of this mobile home park agreed to do the right thing,” said U.S. Attorney Stephen R. Wigginton of the Southern District of Illinois. “In this era, discrimination on the basis of race or family situation should be nothing more than a bad memory of times past. A future free from discrimination will be a better future for all of the people of Southern Illinois.”
“Individuals and families looking for decent affordable housing shouldn't be treated differently just because of their race or because they have children,” said Assistant Secretary Gustavo Velasquez of HUD. “It unfairly limits their housing options and it violates the law. We will continue to work with our fair housing partners and the Justice Department to ensure that property owners and managers meet their obligation to comply with the requirements of the Fair Housing Act.”
In addition to monetary payments, the consent order requires defendants to implement a nondiscrimination policy, establish new nondiscriminatory application and rental procedures and undergo training on the Fair Housing Act.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt/. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing or www.hud.gov/fairhousing.
Jury Finds Truck Driver Guilty of Alien SmugglingRead the Press Release
SYRACUSE, NEW YORK – Yesterday a jury found Ergys Metashi, 34, of Ontario, Canada, guilty of bringing an alien to the United States for the purpose of financial gain, announced United States Attorney Richard S. Hartunian, Homeland Security Investigations, Assistant Special Agent in Charge Nicholas DiNicola, and Timothy J. Walker, Area Port Director, U.S. Customs and Border Protection, Area Port of Alexandria Bay.
Ergys Metashi, a commercial truck driver originally from Albania who lives and works in Canada, was charged with bringing an alien to the United States from Canada at the Alexandria Bay Port of Entry, New York, on March 31, 2015. The evidence at trial showed that Metashi agreed to smuggle the alien, a fellow Albanian, into the United States by hiding him in the sleeping compartment of a tractor trailer in exchange for the promise of a payment of several thousand American dollars. During a border inspection, U.S. Customs and Border Protection Officers found the alien hiding under a blanket in the truck and arrested Metashi.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection, and it was prosecuted by Assistant United States Attorney Michael F. Perry.
Ergys Metashi will be sentenced in federal court in Syracuse on November 16, 2015 and faces at least three (3) years and up to ten (10) years in prison followed by a three (3) year term of supervised release and a fine of up to $250,000.00.
For additional information, please contact Assistant United States Attorney Michael Perry at 315-448-0672.
Jury Convicts Sovereign Citizen of Retaliating Against a Federal Judge and ProsecutorRead the Press Release
In Houston today, a federal jury convicted 44–year-old Tyrone Eugene Jordan, a sovereign citizen residing in Houston, for retaliating against a federal judge and prosecutor by making false claims announced Acting United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Perrye K. Turner, Houston Division.
The jury convicted Jordan of three counts of retaliation against a federal officer or employee by false claim. Evidence and trial testimony revealed that in October 2014, Jordan filed a fraudulent lien--a Uniform Commercial Code (UCC) Financial Statement--with the Texas Secretary of State which claimed that a federal prosecutor in the Southern District of Texas owed the defendant $6,534,500. Furthermore, in January 2015, the defendant knowingly filed two separate fraudulent documents (Affidavit of Obligation Commercial Lien) with the Harris County Clerk’s Office—Real Property Department claiming that the federal prosecutor mentioned above and a U.S. District Judge in the Southern District of Texas were Lien Debtors to the defendant. Testimony also revealed that the defendant filed the fraudulent documents against the victims in retaliation for their roles as prosecutor and sitting judge in a prior criminal case involving the defendant.
“Jordan’s sole purpose was to harass these public servants for having done their jobs. Such malicious harassment of public officials is intolerable,” stated Acting United States Attorney Richard L. Durbin, Jr.
In April 2010, Jordan was convicted following a jury trial of conspiracy to commit money laundering and conspiracy to commit alien smuggling. He was subsequently sentenced to 63 months in federal prison followed by three years of supervised release.
As a result of today’s verdict, Jordan faces a maximum ten years in federal prison for each charge. Jordan, who remains in federal custody, is scheduled to be sentenced at 10:15am on October 9, 2015, in Houston before United States District Judge Gray H. Miller.
This case was investigated by the FBI together with the United States Marshals Service for the Southern District of Texas. Assistant U.S. Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.