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Thursday 21 May 2015
Tax Fraud Promoters Sentenced to Prison for Conspiring to Defraud Internal Revenue ServiceRead the Press Release
A Midvale, Utah, man and a Henderson, Nevada, woman were sentenced yesterday in the U.S. District Court in Salt Lake City for tax crimes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Carlie Christensen of the District of Utah.
Gerrit Timmerman III, 73, of Midvale, was sentenced to serve 48 months in prison to be followed by three years of supervised release. Carol Jean Sing, 75, of Henderson, was sentenced to serve 36 months in prison to be followed by three years of supervised release. In February 2015, Timmerman and Sing were convicted at trial by a federal jury of conspiracy to defraud the United States related to their promotion of a tax fraud scheme.
“Combatting abusive tax schemes remains one of the Tax Division’s highest priorities, and these sentences are the result of our continued efforts to pursue and prosecute fraudulent promoters to the fullest extent of the law,” said Acting Assistant Attorney General Ciraolo. “We will continue to work with our law enforcement partners at the IRS and in the U.S. Attorney’s Offices to identify and dismantle these criminal enterprises and in doing so, protect the American public and the U.S. Treasury.”
“Individuals who enrich themselves by promoting tax avoidance schemes and assisting others in evading state and federal taxes are defrauding American taxpayers,” said U.S. Attorney Christensen. “They should expect to be prosecuted, convicted and sentenced to federal prison for this conduct, as yesterday’s sentences demonstrate.”
According to the evidence introduced at trial, between April 23, 2004, and March 5, 2007, Timmerman and Sing conspired to defraud the United States by marketing “corporations sole” as part of their scheme to evade the assessment and payment of federal income taxes. Timmerman and Sing falsely told their clients that corporations sole were exempt from United States income tax laws, had no obligation to file tax returns and had no obligation to apply for tax exempt status. They further claimed that individuals could render their own income non-taxable by assigning it to the corporation sole, could draw a tax-free stipend from their corporation sole, and could render property immune from IRS collection activity by transferring property to the corporation sole.
According to evidence presented at trial, Sing used Trioid International Group Inc. as a resident agent for corporations sole and other business entities for their clients. Sing and Timmerman also utilized a website to list the tax benefits of corporations sole and to post articles about the supposed tax benefits of corporations sole. At the same time, Timmerman was actively assisting others in evading their state and federal income tax liabilities and recommended the corporation sole to his clients as another way to impair the IRS. Both defendants referred customers to one another and paid each other referral fees.
“Yesterday’s sentencing of Gerrit Timmerman and Carol Sing should send a clear message: schemes to evade the payment of taxes are a violation of the federal tax laws and the consequences of such schemes can and will result in jail time,” said Special Agent in Charge John G. Collins of IRS-Criminal Investigation in Utah. “The Internal Revenue Service, in partnership with the U.S. Attorney’s Office and the Tax Division, will continue the aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system. Honest taxpayers have been reassured today that no one is above the law – especially when the integrity of tax administration is at stake.”
A corporation sole is a form of incorporation allowed by some states, primarily for use by religious leaders to hold title to property. Several states, including Utah and Nevada, have disallowed the creation of new corporations sole. The IRS has publicized the fact that corporations sole have been abused by promoters in Revenue Ruling 2004-27, and has even included corporations sole on their “dirty dozen” tax scams in prior years.
Assistant Attorney General Ciraolo and U.S. Attorney Christensen commended the special agents of IRS–Criminal Investigation, who investigated this case, as well as Trial Attorneys Dennis R. Kihm and Andrea A. Kafka of the Tax Division, who prosecuted the case.
Tax Fraud Promoters Sentenced to Prison for Conspiring to Defraud Internal Revenue ServiceRead the Press Release
SALT LAKE CITY – A Midvale, Utah, man and a Henderson, Nevada, woman were sentenced Wednesday afternoon in U.S. District Court in Salt Lake City for tax crimes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Carlie Christensen of the District of Utah.
Gerrit Timmerman III, 73, of Midvale, was sentenced to 48 months in prison to be followed by three years of supervised release. Carol Jean Sing, 75, of Henderson, was sentenced to 36 months in prison to be followed by three years of supervised release. In February 2015, Timmerman and Sing were convicted at trial by a federal jury of conspiracy to defraud the United States related to their promotion of a tax fraud scheme.
“Combatting abusive tax schemes remains one of the Tax Division’s highest priorities, and these sentences are the result of our continued efforts to pursue and prosecute fraudulent promoters to the fullest extent of the law,” said Acting Assistant Attorney General Ciraolo. “We will continue to work with our law enforcement partners at the IRS and in the U.S. Attorney’s Offices to identify and dismantle these criminal enterprises and in doing so, protect the American public and the U.S. Treasury.”
“Individuals who enrich themselves by promoting tax avoidance schemes and assisting others in evading state and federal taxes are defrauding American taxpayers,” said U.S. Attorney Christensen. “They should expect to be prosecuted, convicted and sentenced to federal prison for this conduct, as these sentences demonstrate.”
According to the evidence introduced at trial, between April 23, 2004, and March 5, 2007, Timmerman and Sing conspired to defraud the United States by marketing “corporations sole” as part of their scheme to evade the assessment and payment of federal income taxes. Timmerman and Sing falsely told their clients that corporations sole were exempt from United States income tax laws, had no obligation to file tax returns and had no obligation to apply for tax exempt status. They further claimed that individuals could render their own income non-taxable by assigning it to the corporation sole, could draw a tax-free stipend from their corporation sole, and could render property immune from IRS collection activity by transferring property to the corporation sole.
According to evidence presented at trial, Sing used Trioid International Group Inc. as a resident agent for corporations sole and other business entities for their clients. Sing and Timmerman also utilized a website to list the tax benefits of corporations sole and to post articles about the supposed tax benefits of corporations sole. At the same time, Timmerman was actively assisting others in evading their state and federal income tax liabilities and recommended the corporation sole to his clients as another way to impair the IRS. Both defendants referred customers to one another and paid each other referral fees.
“Yesterday’s sentencing of Gerrit Timmerman and Carol Sing should send a clear message: schemes to evade the payment of taxes are a violation of the federal tax laws and the consequences of such schemes can and will result in jail time,” said Special Agent in Charge John G. Collins of IRS-Criminal Investigation in Utah. “The Internal Revenue Service, in partnership with the U.S. Attorney’s Office and the Tax Division, will continue the aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our nation's tax system. Honest taxpayers have been reassured today that no one is above the law -- especially when the integrity of tax administration is at stake.”
A corporation sole is a form of incorporation allowed by some states, primarily for use by religious leaders to hold title to property. Several states, including Utah and Nevada, have disallowed the creation of new corporations sole. The IRS has publicized the fact that corporations sole have been abused by promoters in Revenue Ruling 2004-27, and has even included corporations sole on their “dirty dozen” tax scams in prior years.
Assistant Attorney General Ciraolo and U.S. Attorney Christensen commended the special agents of IRS–Criminal Investigation, who investigated this case, as well as Trial Attorneys Dennis R. Kihm and Andrea A. Kafka of the Tax Division, who prosecuted the case.
Tacoma Man Who Sexually Exploited Teen Girls Sentenced to 8+ Years in PrisonRead the Press Release
A 31-year-old Tacoma man who transported two teen-age runaways from Spokane to Pierce County and advertised them for sex via Backpage.com, was sentenced today in U.S. District Court in Tacoma to 100 months in prison, announced U.S. Attorney Annette L. Hayes. CLIFTON ESKRIDGE, III, pleaded guilty to possession of child pornography in July 2014. At sentencing U.S. District Judge Benjamin H. Settle said ESKRIDGE caused “great harm to these girls” and ordered ESKRIDGE to serve 15 years of supervised release following prison.
According to records filed in the case, in March 2013, ESKRIDGE transported two teen girls, ages 15 and 16 from Spokane, Washington to Pierce County, and both girls were runaways. ESKRIDGE produced a sexually explicit video and photos of the teen girls in April 2013 using his smartphone and computer. ESKRIDGE also advertised the teens for sex on Backpage.com. ESKRIDGE was arrested and initially charged in Pierce County Superior Court with commercial sex abuse of a minor. ESKRIDGE attempted to discourage the teens from speaking to federal investigators but his efforts were unsuccessful. The investigation resulted in a federal indictment in February 2014. ESKRIDGE has been in federal custody since that time.
ESKRIDGE was ordered to register as a sex offender.
The case was investigated by the South Sound Child Exploitation Task Force which involves agents and officers of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and the Lakewood Police Department.
The case was prosecuted by Assistant United States Attorney Ye-Ting Woo.
Six Southeast New Mexico Residents and a Texan Facing Federal Firearms and Narcotics ChargesRead the Press Release
ALBUQUERQUE – Investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lea County Drug Task Force and the Pecos Valley Drug Task Force have resulted in the filing of federal charges against six individuals who reside in southeastern New Mexico and a Texan. Five of the seven defendants were arrested yesterday and made their initial appearances in federal court in Las Cruces, N.M., this morning. The other two are in state custody and will be transferred to federal custody to face the charges against them.
Dessi Timothy Burton, 22, of Odessa, Texas, was arrested on a criminal complaint charging him with being a felon in possession of a firearm on Sept. 30, 2014, in Lea County. The criminal complaint alleges that Burton unlawfully possessed firearms while attempting to sell a semi-automatic pistol, two semi-automatic rifles, a shotgun and ammunition to an undercover officer. At the time Burton was prohibited from possessing firearms or ammunition because he previously had been convicted of child abuse and possession of a controlled substance.
Michael Gibson, 26, of Lovington, N.M., was arrested on a criminal complaint charging him with possession of methamphetamine with intent to distribute and using a firearm in furtherance of a drug trafficking crime in Lea County, N.M., in Sept. 2014. The criminal complaint alleges that on Sept. 10, 2014, Gibson sold approximately two ounces of methamphetamine to another person on Sept. 10, 2014, in Hobbs, N.M. Gibson allegedly displayed a handgun while negotiating the drug deal.
Shawn Hedgecock, 43, of Carlsbad, N.M., is charged in a criminal complaint with being a felon in possession of a firearm, and possession of an unregistered firearm with an obliterated serial number on Feb. 9, 2015, in Eddy County, N.M. The criminal complaint alleges that on Feb. 9, 2015, officers went to Hedgecock’s residence for the purpose of executing state court warrants for Hedgecock’s arrest. During a consensual search of the residence, the officers allegedly seized an unregistered sawed off shotgun and ammunition. Hedgecock was prohibited at the time from possessing firearms or ammunition because he previously had been convicted of the following felony offenses: possession of methamphetamine, possession of drug paraphernalia, concealing identity, and tampering with evidence. Hedgecock is in state custody on other charges and will be transferred to federal custody to face the charges in the criminal complaint.
The criminal complaint against Jared Taylor Pendleton, 30, and Jasmine Tapia, 19, both of Hobbs, N.M., charges Pendleton with being a felon in possession of a firearm, and charges both Pendleton and Tapia with possession of a sawed-off shotgun in Lea County. According to the criminal complaint, on Oct. 23, 2013, Tapia assisted Pendleton in selling an unregistered sawed-off shotgun to an undercover officer. At the time, Pendleton was prohibited from possessing firearms or ammunition because he previously had been convicted of fraud and the unlawful taking of a vehicle. Pendleton was arrested yesterday. Tapia is in state custody on related charges and will be transferred to federal custody to face the charges in the criminal complaint.
Daniel Ramirez, 19, of Hobbs, N.M., was arrested on a criminal complaint charging him with possession of a firearm with an obliterated serial number and using a firearm in furtherance of a drug trafficking crime on Dec. 12, 2014, in Lea County. The criminal complaint alleges that on Dec. 12, 2014, Ramirez was arrested for resisting officers and was found to be in possession of a semi-automatic handgun with an obliterated serial number, ammunition, approximately 11 ounces of cocaine, approximately 9.5 ounces of marijuana, and $420.00 cash.
Jestin White, 22, of Hobbs, N.M., was arrested on a criminal complaint charging him with possession of a controlled substance with intent to distribute on May 19, 2015, in Lea County. The complaint alleges that from Sept. 4, 2014 through May 19, 2015, White sold approximately 411.1 grams of cocaine, a .22 caliber rifle and ammunition to undercover law enforcement.
If convicted of the charges against them, each of the defendants faces a statutory maximum of ten years in federal prison on the firearms charges. If convicted on the narcotics charges against them, Gibson and White each faces a statutory maximum penalty of 20 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the Las Cruces and Roswell offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lea County Drug Task Force and the Pecos Valley Drug Task Force with assistance from the 5th Judicial District Attorney’s Office. The U.S. Marshals Service assisted in yesterday’s law enforcement operation. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and the Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The two task forces are part of the New Mexico HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Today’s law enforcement action and arrests were undertaken as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. This initiative recognizes that on a per capita basis, New Mexico’s violent crime rates significantly exceed the national average.
Six Defendants Sentenced in Fraudulent Tax Refund SchemeRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that all six defendants involved in a recent scheme to defraud the Internal Revenue Service (IRS) and identity theft have now been sentenced by U.S. District Judge Karen E. Schreier. On February 4, 2014, all six defendants were indicted for Conspiracy to Defraud the United States and five of the six defendants were indicted for Aggravated Identity Theft.
Jennifer Robinson, age 26, of Fargo, ND, pled guilty to the charges in October of 2014. She was sentenced on May 18, 2015, to 1 day in custody to be followed by 2 years of supervised release on the conspiracy charge, and 24 months in custody to be followed by 1 year of supervised release on the identity theft offense. The time in custody will be served consecutively, and the supervised release will be served concurrently. Robinson was also ordered to pay $33,015.00 in restitution to the IRS.
Shawnte Washington, age 32, of Tampa, FL, pled guilty to the charges in February of 2015. She was sentenced on May 18, 2015, to 1 day in custody to be followed by 2 years of supervised release on the conspiracy charge, and 24 months in custody to be followed by 1 year of supervised release on the identity theft offense. The time in custody will be served consecutively, and the supervised release will be served concurrently. Washington was also ordered to pay $16,065.00 in restitution to the IRS.
Undra Stewart Franks, age 28, of Little Rock, AR, pled guilty to the offenses in February of 2015. He was sentenced on May 4, 2015, to 1 day in custody to be followed by 2 years of supervised release on the conspiracy charge, and 24 months in custody to be followed by 1 year of supervised release on the identity theft offense. The time in custody will be served consecutively, and the supervised release will be served concurrently. Franks was also ordered to pay $9,679.00 in restitution to the IRS.
Timothy L. Brister, Jr., age 30, of Tampa, FL, pled guilty to the offenses in January of 2015. He was sentenced on April 27, 2015, to 1 day in custody to be followed by 2 years of supervised release on the conspiracy charge, and 24 months in custody to be followed by 1 year of supervised release on the identity theft offense. The time in custody will be served consecutively, and the supervised release will be served concurrently. Brister was also ordered to pay $9,679.00 in restitution to the IRS.
Anna Weber, age 28, of Horace, ND, pled guilty to the conspiracy charge in October of 2014. She was sentenced on April 16, 2015, to 3 years of probation. Weber was also ordered to pay $73,146.81 in restitution to the IRS.
Donta J. Moore, age 29, of Kansas City, MO, pled guilty to the charges in October of 2014. He was sentenced on March 13, 2015, to 27 months in custody to be followed by 2 years of supervised release on the conspiracy charge, and 24 months in custody to be followed by 1 year of supervised release on the identity theft offense. The time in custody will be served consecutively, and the supervised release will be served concurrently. Moore was also ordered to pay $160,176.18 in restitution to the IRS.
Donta Moore and Undra Stewart Franks played for the Sioux Falls Storm Arena Football team in 2012.
The convictions stemmed from the defendants conspiring to defraud the United States by using stolen personal information, including names, Social Security numbers, and dates of birth, to file fraudulent income tax returns which claimed false income tax refunds. Five of the six defendants were also convicted of identity theft for their part in stealing the personal information. The investigation was conducted by the IRS– Criminal Investigation. The Moorhead, MN Police Department and the U.S. Secret Service also aided in the investigation. Assistant U.S. Attorney John E. Haak prosecuted the case.
Shuman Center Youth Care Worker Sentenced to Probation for Federal MisdemeanorRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania was sentenced yesterday in federal court to one year probation on a misdemeanor charge of deprivation of civil rights under color of law, to which the defendant pleaded guilty earlier this year, United States Attorney David J. Hickton announced today.
United States Magistrate Judge Lisa Pupo Lenihan imposed the sentence on McArthur Mosley, 28, of Pittsburgh, Pa.
According to information presented to the court, on or about April 14, 2014, Mosley, while acting under color of law as a youth care worker with the Shuman Juvenile Detention Center, willfully deprived the victim of the right, secured and protected by the United States Constitution, not to be subjected to excessive force amounting to punishment by someone acting under color of law.
Assistant United States Attorneys Cindy K. Chung and Shaun Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for conducting the investigation that led to the successful prosecution of McArthur Mosley.
Shreveport man sentenced to 17 years in prison for possessing a firearm after felony convictionsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Wednesday to 210 months in prison as an Armed Career Offender for possessing a firearm after being convicted of multiple felonies.
Ronnie Eugene Bishop, 39, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on two counts of possessing a firearm after being convicted of a felony. He was also sentenced to five years of supervised release. According to evidence presented at the December 9, 2014, guilty plea, Bishop pawned a 12-gauge shotgun on December 23, 2013, and a .270 caliber rifle on December 27, 2013, at the same pawn shop in Bossier City, La. Both firearms had been reported stolen by the owner. Prior to pawning the firearms, Bishop had multiple felony convictions and was sentenced as an Armed Career Offender. The mandatory minimum sentence for an Armed Career Offender is 15 years in prison.
To be found an Armed Career Offender under federal law, a defendant must have three previous convictions that are either a violent felony or a serious drug offense, or both, committed on occasions different from one another.A serious drug offense can be an offense under federal or state law if it involves the manufacturing, distributing or possessing with intent to manufacture or distribute a controlled substance for which a maximum term of imprisonment of 10 years or more is prescribed by law.
“This defendant had multiple felony convictions and was prohibited by law from possessing a firearm; yet, he not only continued to possess them, but he was pawning stolen firearms,” Finley stated. “The safety and security of the community is our highest priority. This case is a result of a collaborative effort of federal and state agencies working together. I want to thank the ATF, Louisiana Department of Corrections, Probation and Parole Division, and the Assistant U.S. Attorney who worked on this case.”
The ATF and the Louisiana Department of Corrections Probation and Parole Division conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case as part of Project Safe Neighborhoods Program, which is a Department of Justice initiative with state and local authorities designed to reduce the possession of firearms by prohibited persons and the use of firearms to commit crimes.
Sacramento Attorney Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — James Stewart Richards, 69, of West Sacramento, pleaded guilty today to tax evasion, United States Attorney Benjamin B. Wagner announced.
According to court documents, between 1994 and 2003, Richards, a member of the California and Hawaii bar organizations, owed federal income taxes totaling over $170,000, which he did not pay. Instead, he took steps to evade payment of some or all of the taxes he owed. He filed a false “Offer in Compromise” to the IRS that omitted bank accounts and six rental properties. He used a nominee bank account for his own assets. When alerted by the bank that the IRS was making inquiries about the nominee account, Richards called the bank and asked that they provide no records to the IRS. He also withdrew $100,000 from the account in cashier’s checks. Richards purchased a yacht that he registered and titled in nominee’s name in order to conceal the asset. Also, he made false statements about his assets to a bankruptcy court and to the IRS.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Audrey B. Hemesath and Nirav Desai are prosecuting the case.
Richards is scheduled to be sentenced on September 10, 2015, by United States District Judge Morrison C. England Jr. Richards faces a maximum penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
SFPD Officer Sentenced to 12 Months for Role in Conspiracy to Provide Drugs to InformantsRead the Press Release
SAN FRANCISCO– Former San Francisco Police Officer Reynaldo Vargas was sentenced today to 12 months in prison for his participation in a conspiracy to steal money and property and provide illegal drugs to informants, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Vargas, 46, was indicted by a federal grand jury on February 25, 2014. He pleaded guilty on October 21, 2014, to conspiracy to distribute controlled substances, in violation of 21 U.S.C. § 846; distribution of marijuana, in violation of 21 U.S.C. § 84; conspiracy to commit theft concerning a federally funded program, in violation of 18 U.S.C. § 666(a); and theft concerning a federally funded program, in violation of 18 U.S.C. § 666(a). According to the plea agreement, Vargas admitted that he and two other SFPD officers, Ian Furminger and Edmond Robles, repeatedly stole money and property during searches and arrests. Vargas also admitted the officers kept the stolen items for themselves and that he provided drugs seized by the SFPD to informants.
Vargas testified at the trial of Furminger and Robles, who were convicted by a jury in San Francisco on December 15, 2014. After their convictions, Furminger was sentenced to a term of 41 months in prison and Robles was sentenced to a term of 39 months.
Vargas’s 12-month sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer also sentenced Vargas to a three year term of supervised release. Vargas was given two months to voluntarily surrender to begin serving his sentence.
In sentencing Vargas, Judge Breyer described Vargas’s testimony as “crucial, essential, to the successful prosecution of the case.” Judge Breyer described the testimony as “genuine” and lauded Vargas for truly accepting responsibility and making a concerted effort to transform his life for the better. The Court acknowledged the difficulty of testifying as a police officer against other police officers and said that he “hope[d] that other police officers understand that when they see this type of activity by colleagues . . . it hurts them, as well as the police officers who are involved.”
The investigation that led to Vargas’s plea and cooperation began with the public release of a videotape showing SFPD officers entering a single room occupancy hotel room without a warrant. The investigation, which was conducted by the FBI and SFPD Internal Affairs Division, grew to include, among other things, allegations that Vargas, Robles, and Furminger engaged in the theft of tens of thousands of dollars and valuable property during the course of performing their official duties. The officers also filed false police reports that did not identify the money and property they had stolen.
“The misconduct of the police officers prosecuted in this case damaged the credibility of good police officers everywhere,” said United States Attorney Melinda Haag. “Without the trust of the community, police officers are not able to safely and effectively do their jobs,” she said.
At Vargas’s sentencing, Judge Breyer said that this is one of the most serious cases he has seen as a district judge. He described why it is critical that police officers act with honesty and integrity:
Police officers go out every day putting their lives at risk, and you have done that repeatedly. And whether they come back at night, whether they can perform their duties, in large part, depends on whether the public accepts them as guardians of their safety. You are the agents of all of us. You are the people out on the street representing every judge, every prosecutor, every defense lawyer, and everybody else who lives in this city, including those people who are so vulnerable that they have fallen susceptible to disease, to addiction, to a way of crime. You represent them. . . . And the success of your task, of all of our tasks, is that society accepts what we do, they think that the system is fair, they think that the prosecutor, the defense lawyer, the judge, the police officer, will be fair in administering the law. . . . [A]nything that detracts from the credibility of the people who are involved in the justice system, jeopardizes the justice system . . . . And unless we have a system that is credible, we are no different, no different at all, from any totalitarian state in which police, prosecutors, judges, lawyers, act capriciously, act without due process.
This case was prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office for the Northern District of California. It is the result of an investigation conducted by the FBI’s San Francisco Division, with the assistance of the SFPD Internal Affairs Division.
Philadelphia Woman Sentenced for Fraud on FEMARead the Press Release
Celeste Palmer, 54, of Philadelphia, PA, was sentenced today to a day in custody followed by three years supervised release, with the first four months of supervised release to be served in a halfway house, and the next six months to be served on house arrest, for scheming to receive disaster relief assistance from the Federal Emergency Management Agency (FEMA), when she was not entitled to receive those benefits. Palmer pleaded guilty to one count of wire fraud on December 1, 2014.
After Hurricane Irene came through the Philadelphia area on August 26, 2011, Palmer made fraudulent claims to FEMA for disaster assistance, which Palmer supported with falsified rent receipts and leases. Palmer’s scheme led FEMA to award her disaster rental assistance in the total amount of $14,487, to which Palmer knew she was not entitled.
The case was investigated by the Department of Homeland Security’s Office of the Inspector General and was prosecuted by Assistant United States Attorney Mary E. Crawley.
Paul Hendler Imprisoned for Series of FraudsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Paul Hendler, 43, of Taftsville, was sentenced today in United States District Court in Brattleboro to 27 months of imprisonment following his guilty plea to federal fraud charges. United States District Court Judge J. Garvan Murtha ordered that Hendler serve three years of supervised release following completion of his prison term and pay restitution in the amount of $550,000. The court ordered Hendler to surrender to the Bureau of Prisons on July 7 to begin serving his sentence.
In January 2012, a federal grand jury in Rutland returned a 14-count superseding indictment charging Hendler with mail and wire fraud, interstate transportation of stolen money, forgery and engaging in monetary transactions involving more than $10,000 of criminally derived property. The indictment alleged that, between 2005 and 2010, Hendler schemed to defraud two Vermont businesses he helped found, as well as a New York doctor whom he solicited to invest in one of the companies. According to the indictment, in the early 2000s, Hendler founded JavaPop, Inc, a Woodstock company that manufactured carbonated coffee-based drinks. The indictment accused Hendler of defrauding JavaPop of more than $150,000 by misappropriating for his own benefit, in 2007, a $99,000 company line of credit at Bank of America. It also charged him with making off with $56,000 in JavaPop funds that Hendler received in 2008 after selling four company vehicles.
Another part of the indictment alleged that Hendler defrauded a New York City doctor by inducing him to make a $140,000 investment in JavaPop under false pretenses in 2005. According to the indictment, Hendler never turned the money over to JavaPop but instead used it for himself. $56,000 of the doctor’s money was used to make a downpayment on a house Hendler purchased in Woodstock.
The indictment also charged Hendler with defrauding Green Mountain Digital of Woodstock, another business Hendler helped found in 2007-08. According to the indictment, Hendler submitted falsified and fraudulent documentation to Green Mountain Digital which caused the company to reimburse him for expenses he did not actually incur. It also charged him with making off with $25,000 paid over to him by another business partner, and embezzling $33,000 from the Blueberry Hill Inn in Goshen by forging the signature of the Inn's owner on a series of checks Hendler issued to himself.
As part of the sentence, the court ordered Hendler to pay full restitution to the victims named in the indictment, as well as to the victims of several other frauds Hendler committed after the superseding indictment was returned.
This case was investigated by the Internal Revenue Service and the Woodstock Police Department.
Hendler is represented by Brad Stetler. The prosecutor is Assistant
U.S. Attorney Gregory Waples.Parkersburg man sentenced to federal prison for illegal firearm possessionRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man who was shot during his arrest in July of 2014 was sentenced today to seven years in federal prison, U.S. Attorney Booth Goodwin announced. Paul Christopher Johnson, 43, of Parkersburg, West Virginia previously pleaded guilty in February of 2015 to being a felon in possession of a firearm. On July 15, 2014, officers of the Parkersburg Narcotics and Violent Crimes Task Force attempted to serve Johnson with an arrest warrant as he was in a parked vehicle on Bird Street in Parkersburg. Johnson got out of his vehicle, pointed a loaded Taurus .45 caliber pistol at police and told them he was “not going back [to prison].” As officers attempted to convince Johnson to put down the weapon and surrender, he got back into the vehicle and drove away. Police caught up with him and stopped him at the corner of Plum Street and Washington Avenue. Johnson again got out of the vehicle and pointed his pistol at the responding officers. Johnson refused to obey commands to drop the weapon and moved toward the officers while waving the gun. Officers fired and wounded Johnson. According to his criminal record, Johnson had been previously convicted of the felony offenses of aggravated robbery and third offense shoplifting. On July 15, 2014, police were attempting to arrest Johnson for a drug trafficking offense.
Because the Parkersburg Police Department and the Wood County Sheriff’s Department were involved in the arrest, this investigation was conducted by the West Virginia State Police. Assistant U.S. Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Owner of Parsippany-Based Diagnostic Testing FacilityRead the Press Release
NEWARK, N.J. - A Morris County, New Jersey, man was sentenced today to 12 months in prison for his role in a scheme to bill for diagnostic testing services he did not render and to enable a cardiologist to evade the Medicare program’s pre-payment review of his claims, U.S. Attorney Paul J. Fishman announced.
Vijay Patel, 57, of Parsippany, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of health care fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2009 to the present, Patel has been the owner of a diagnostic testing facility in Parsippany called Mobile Diagnostic Testing of NJ LLC (Mobile Diagnostic). He was also a participant in Medicare.
Patel had an associate identified as “S.A.,” who was a cardiologist and also a participant in the Medicare program. From around 2009 through 2012, S.A.’s Medicare contractor had placed him on so-called “pre-payment review,” which was initiated to ensure that S.A. was submitting claims within established rules and regulations and consistent with appropriate medical decision-making, and which required S.A. to submit medical and other documentation to support the services being billed to Medicare. Under pre-payment review, claims for reimbursement that did not have the documentation necessary to support the services being billed are rejected by the Medicare contractor.
From November 2009 through October 2012, Patel and S.A. engaged in a scheme to defraud Medicare whereby S.A. paid Patel substantial sums of money to enable S.A. to evade Medicare’s prepayment review. Patel admitted in court that he submitted claims to Medicare for diagnostic testing services that S.A. had performed as if Mobile Diagnostic had performed the services instead of S.A. Once Medicare paid Patel and Mobile Diagnostic for diagnostic testing services that S.A. had actually provided, Patel then transferred a portion of the payment to S.A. and kept a substantial portion for himself.
In addition to the prison term, Judge Salas sentenced Patel to two years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, for the investigation leading today’s sentencing.
The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.
Orlando Woman Charged in Multi-Count Indictment for Fraudulent SchemesRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Lashunda Veneice Redd (35, Orlando) with one count of theft of government money, two counts of aggravated identity theft, and nine counts of making, uttering, and possessing counterfeit and forged securities. If convicted, she faces a maximum penalty of 10 years in federal prison for the theft of government money, a mandatory minimum of 2 years’ imprisonment for each aggravated identity theft charge, and a maximum of 10 years in prison for the counterfeit and forged securities charges.
According to court documents, between December 2014 and April 2015, across at least four Central Florida counties, Redd stole money from the Social Security Administration. Following up on a lead from the Bureau of Fiscal Services, investigators learned that Redd’s mother had requested several replacement checks for her Social Security benefits. These checks were then altered to be made payable to different individuals, including Redd, for larger dollar amounts. On January 22, 2015, Redd cashed a check originally made payable to her mother that had been altered to name her (Redd) as the payee. The amount of money payable on the check had also been altered from $640 to $1,940, resulting in a loss of $1,300 to the government.
On December 3 and 24, 2014, Redd unlawfully used two other individuals’ means of identification to commit bank fraud in relation to her fraudulently altered United States Treasury check scheme.
The investigation also revealed that Redd had made, uttered, and possessed counterfeit and forged checks, which she had used at Publix stores in Orange, Brevard, and Seminole counties from January to March 2015, resulting in a loss of thousands of dollars to Publix.
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 Social Security Administration, Office of the Inspector General, and the Department of Treasury, Office of the Inspector General. It will be prosecuted by Assistant United States Attorney Joseph M. Schuster.
Officials from the U.S., Canada and Mexico Participate in Trilateral Meeting in Mexico City to Discuss Antitrust EnforcementRead the Press Release
The heads of the antitrust agencies of the United States, Canada and Mexico met today in Mexico City to discuss their ongoing work to ensure effective antitrust enforcement cooperation in our increasingly interconnected markets.
The meetings were held among Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division, Chairwoman Edith Ramirez of the Federal Trade Commission, Canadian Commissioner of Competition John Pecman and President Alejandra Palacios Prieto of the Mexican Federal Economic Competition Commission.
The discussions covered a wide range of topics, including implementation of Mexico’s new competition law, enforcement cooperation among the three countries’ antitrust agencies, approaches to innovative and disruptive technologies and current enforcement priorities.
“We value our close relationships with our antitrust partners north and south of the border,” said Assistant Attorney General Baer. “Our shared enforcement interests and tradition of cooperating when investigating mergers and cartels ensure that North American markets remain competitive. These annual ‘trilateral’ meetings give us a chance to review and improve our enforcement cooperation and to engage in policy dialogue on emerging topics of common interest.”
“These meetings are an important element in building and maintaining the strong relationships that help us meet enforcement and policy challenges in all three countries,” said Chairwoman Ramirez. “The need to cooperate across our borders increases every year, and we are working together to meet that challenge.”
The four agency heads also spoke at a public conference organized by the Mexican agency, which included remarks by Assistant Attorney General Baer on the importance of anti-cartel enforcement and the role of criminal sanctions in the United States.
The meetings build on the foundations laid by the 1995 antitrust cooperation agreement between the United States and Canada, the 2000 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico. The agreements commit the antitrust agencies to cooperate and coordinate with each other to make their antitrust policies and enforcement as consistent and effective as possible.
Oakland Woman Sentenced to Three Years for Attempting to Smuggle Cocaine Through Airport SecurityRead the Press Release
OAKLAND – Cheryl Denise Frazier was sentenced today to three years in prison for possession with intent to distribute cocaine, announced United States Attorney Melinda Haag and Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano.
Frazier, 48, of Oakland, pleaded guilty on January 23, 2015, to possessing cocaine with intent to distribute. According to her plea agreement, Frazier admitted that on August 20, 2014, she entered the Oakland International Airport in Oakland, Calif., with 600 grams of cocaine hidden inside her clothing. She further admitted that she entered the airport with the cocaine concealed on her body for the purpose of smuggling the drugs onto a commercial flight for later distribution to another person. Frazier was charged by information on January 15, 2015, for possession with intent to distribute cocaine in violation of 21 U.S.C. § 841(a)(1).
The sentence was handed down by the Honorable James Donato, U.S. District Judge. The defendant will begin serving the sentence immediately and has been in custody since her arrest in August 2014.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Melissa Dorton. The prosecution is the result of an investigation by the U.S. Drug Enforcement Administration and the Alameda County Sheriff’s Office.
O.C. Man Who Hawked Bogus Investments in Treatments for Common Ailments Sentenced to over 12 Years in Federal PrisonRead the Press Release
SANTA ANA, California – An Irvine man who ran a fraud scheme that raised well over $3 million from victims who thought they were investing in products that would treat childhood obesity and Type II diabetes was sentenced today to 151 months in federal prison.
Charles M. “Chuck” Davis, 57, was sentenced by United States District Judge Andrew Guilford. In addition to the prison term, Judge Guilford ordered Davis to pay $3,468,934 in restitution to 66 victims.
Following a seven-day last June, a federal jury found Davis guilty of two counts of mail fraud, seven counts of wire fraud and four counts of money laundering.
The evidence presented during the trial showed that Davis operated an investment scam involving the Newport Beach-based LifeRight Holdings, Inc. According to promises made by Davis, LifeRight was going to develop and use infomercials to market a product to combat child obesity. Davis promised investors a 15 percent return in only 13 months, as well as royalties on products sold and an option to convert the investment into shares of LifeRight stock when the company began selling product. Davis took in approximately $2.5 million from 45 investors, who lost all of their money.
The second scheme involved a company called DT2, which purportedly offered a product to treat Type II diabetes. From 2009 until Davis was jailed in 2011, Davis raised approximately $900,000 from about 21 DT2 investors. Similar to the LifeRight scam, Davis diverted the investor funds to other companies and, instead of spending the money on DT2 business, Davis used the money to pay for high-end restaurants, expenses sustained by several girlfriends, spa treatments, cash withdrawals, and his civil and criminal defense attorneys. The victims in the DT2 also lost all of their money.
In both schemes, Davis never had a real product.
Davis has been in custody since September 2011, when his bond in this case was revoked after a judge found he was improperly soliciting money in the DT2 scheme.
The case against Davis was investigated by the Federal Bureau of Investigation.
Release No. 15-049
New York Man Arrested for Allegedly Defrauding Investors Out of More Than $2 Million for Crossfit Business VenturesRead the Press Release
NEWARK, N.J. - A New York man involved in several CrossFit training businesses was arrested this morning by the FBI in connection with a scheme to defraud various potential investors, lenders and business partners out of over $2 million, U.S. Attorney Paul J. Fishman announced.
Joshua Bryce Newman, 35, is charged by criminal complaint with two counts of wire fraud. Newman is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
Newman was a self-styled entrepreneur who engaged in a variety of business ventures, including venture capital work, a film production company and businesses that offer CrossFit training, a popular strength and conditioning program typically run in facilities known as “boxes.” Newman found himself facing mounting legal and financial troubles largely as a result of judgments and liens filed against him and his film production company, Cyan Pictures, after its project about the New York Yankees failed. For example, a civil lawsuit filed against Newman alleges that he and others lied about the amount of money they raised for the project and that they had diverted funds meant for the film into their personal accounts.
The criminal complaint alleges that from 2012 through April 2015, Newman made material misrepresentations to solicit investments for CrossFit business enterprises and used the funds for personal expenses, including paying back others who invested in his prior projects. Using doctored or bogus documentation, Newman lulled his victims into believing that their investment money was safe or that he was in a position to repay their loans. The false documents included doctored operating agreements, false statements of ownership percentages held by various individuals and bogus Schedule K-1s purporting to show the amount of annual partnership gains or losses reported to the IRS. Newman also deceived his potential partners, purported investors and lenders into believing that one of his CrossFit ventures had raised millions of dollars in funding.
When investors and lenders raised concerns about Newman’s sincerity or threatened legal action to recoup their funds, he typically gave them false assurances or agreed to return the funds. In reality, he often had no funds to return and made various excuses, including blaming his lack of payment on wire transfers delays. He also stalled for time by giving his victims checks drawn on accounts with insufficient funds and even sent a picture of a purported wire transfer order for $165,000 that never existed.
The complaint alleges that even after his partners removed him from one of the CrossFit companies because of suspected fraudulent activity and willful misconduct, Newman continued to solicit investments on behalf of the company that he used for personal expenses.
The investigation to date has revealed that Newman defrauded numerous investors, creditors and potential partners out of more than $2 million.
Newman faces a maximum potential sentence of 20 years in prison on each count, a fine of $250,000 or twice the gain or loss from the offense and a mandatory restitution order in the full amount of the loss to the victims.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s charges.
The charges in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Paul A. Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
New Orleans Man Sentenced for Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMES CONRAD, JR., age 50, New Orleans, was sentenced today to one year and one day imprisonment for the theft of $247,800 in government funds.
U.S. District Judge Nannette Jolivette Brown sentenced CONRAD one year and one day imprisonment, to be followed by three years of supervised release. CONRAD was also ordered to pay restitution in the amount of $192,245.12.
CONRAD had pled guilty to stealing $196,690.43 from the United States Office of Personnel Management and $51,110 from Social Security Administration over the course of 15 years. CONRAD jointly held a bank account with his aunt, who died in 1998. Unaware of CONRAD’S aunt’s death, the two agencies continued wiring survivor and retirement benefits for her to the account. CONRAD, knowing the payments did not belong to him, received the benefits until 2013 when the agencies learned that his aunt had died. After the crime was discovered, the government recovered $55,555.31 from the bank account.
U.S. Attorney Polite praised the work of the Office of Personnel Management - Office of Inspector General and the Social Security Administration - Office of Inspector General in investigating this matter. Assistant U.S. Attorney Chandra Menon was in charge of this prosecution.
New Orleans C.P.A. Sentenced to 30 Months in Prison for Embezzlement SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, of New Orleans, was sentenced today for an embezzlement scheme which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).
U.S. District Judge Nannette Jolivette Brown sentenced GARDNER to thirty months imprisonment, followed by two years supervised release. In addition to the term of imprisonment, GARDNER was ordered to pay restitution in the amount of $1,798,000.
According to court documents, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A. for the past thirty years. In October 2007, Clovelly Oil hired GARDNER as a part-time bookkeeper. GARDNER was responsible for recording the receipts and disbursements for Clovelly and preparing the royalty checks for Clovelly’s more than two-hundred owners. In addition, GARDNER handled the bi-weekly payroll for all of Clovelly’s employees and he was responsible for paying himself.
Beginning in August 2010, and continuing until his termination in May 2014, GARDNER embezzled $1,798,000 from Clovelly Oil by manipulating the bi-weekly payroll records of Clovelly. Every two weeks, GARDNER logged into Clovelly’s on-line bank accounting system using his username and password given to him so he could prepare Clovelly’s payroll and increased his bi-weekly compensation by sometimes as much as $20,000. GARDNER diverted the illegally obtained funds into bank accounts held by the defendant. According to the Bill of Information, GARDNER used the embezzled funds to satisfy gambling debts incurred at a New Orleans casino.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Monroe County Man Enters Guilty Plea to Theft of MailRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to the charge of theft of mail.
According to United States Attorney Peter Smith, Jacob Tanner, age 29, of East Stroudsburg, Monroe County, admitted to stealing mail in the Stroudsburg area in 2014. The thefts were discovered after a number of Stroudsburg residents complained about missing, torn or discarded mail. Tanner was observed on surveillance video removing mail from a mailbox outside a residence in Stroudsburg. Postal Authorities later apprehended Tanner in possession of stolen mail in December 2014.
The case was investigated by the United States Postal Service, Office of Postal Inspection Services, and is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Anyone who believes they may be a victim or have further information should contact Postal Inspector David Heinke, United States Postal Service, at 877-876-2455
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 is 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. 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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Manhattan U.S. Attorney Announces Consent Decree Resolving Westchester County’s ViolationsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith Enck, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that Westchester County (“Westchester” or the “County”) has entered into a consent decree with the United States to resolve the civil lawsuit filed in August 2013, alleging that since April 2012 the County has failed to operate its Water District No. 1 in compliance with regulations designed to protect the public from Cryptosporidium, a parasite that can cause severe gastrointestinal illness. Water District No. 1 supplies water to residents of Scarsdale, White Plains, Mount Vernon, and Yonkers. Since April 2012, a significant portion of the drinking water distributed by Water District No. 1 has not been properly treated.
U.S. Attorney Preet Bharara stated: “For years, Westchester County has flouted its obligations under the Safe Drinking Water Act by failing to ensure that drinking water supplied by Westchester Water District No. 1 was properly treated for Cryptosporidium. Today’s consent decree ensures that Westchester will finally come into compliance with EPA standards, and will pay a significant civil penalty for its years of noncompliance.”
EPA Regional Administrator Enck stated: “The people of Westchester deserve high quality drinking water. These long-overdue drinking water treatment upgrades will bring Westchester into compliance with the Safe Drinking Water Act, and will protect the people of Mount Vernon, Scarsdale, White Plains and Yonkers from water-borne diseases.”
According to the allegations of the complaint:
Since April 2012, Westchester, through its Water District No. 1, has failed to comply with the Long Term 2 Enhanced Surface Water Treatment Rule (the “Enhanced Water Treatment Rule”) by failing to upgrade its water treatment facilities or capabilities to properly treat its drinking water for Cryptosporidium. Public water systems that were required to comply with the Enhanced Water Treatment Rule had more than six years from the enactment of the rule to achieve compliance. The Enhanced Water Treatment Rule specifically targets public water systems with higher potential risks of Cryptosporidium contamination; it requires such public water systems to treat unfiltered surface water for this parasite. Cryptosporidium contamination can lead to cryptosporidiosis, a potentially fatal gastrointestinal illness in humans for which there is no known treatment. The illness poses greater risks to people with weakened immune systems, such as young children, pregnant women, and the elderly.
Previously in this litigation, the U.S. District Court in White Plains ruled that Water District No. 1 is a public water system and that Water District No. 1 was subject to an April 1, 2012, deadline to comply with the treatment requirements in the Enhanced Water Treatment Rule.
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In the consent decree filed today in White Plains federal court, Westchester admits, acknowledges, and accepts responsibility for the following:
- Westchester operates Water District No. 1.
- Westchester, “as operator of Water District No. 1, failed to ensure that Water District No. 1 implemented the water treatment measures of the Enhanced Water Treatment Rule.”
- The Enhanced Water Treatment Rule “required certain public water systems to implement specific water treatment measures” by April 1, 2012.
- “Water District No. 1 did not implement the water treatment measures of the Enhanced Water Treatment Rule by April 1, 2012, and to date has not implemented the water treatment measures of the Enhanced Water Treatment Rule.”
Pursuant to the consent decree filed today, Westchester will make capital improvements within Water District No. 1 to bring it into compliance with the Enhanced Water Treatment Rule. These capital improvements will cost approximately $10 million. While the capital improvements are being completed, the consent decree requires Westchester to undertake interim measures, including to reduce the amount of noncompliant water supplied by Water District No. 1 and enhanced monitoring of source water from the Kensico Reservoir for Cryptosporidium. Westchester will make the enhanced source monitoring results available to the public on its website.
In addition to this injunctive relief, Westchester will pay a civil penalty of $1,108,771, the largest civil penalty ever imposed under the Safe Drinking Water Act on the operator of a public water system. Westchester will be subject to substantial additional penalties if it fails to adhere to the deadlines in the consent decree.
Finally, Westchester has agreed to spend an additional $691,229 on supplemental environmental projects for the benefit of the residents of Water District No. 1. Westchester has committed to expend these funds (i) to increase the number of days during which unused pharmaceuticals and hazardous household chemicals will be accepted from residents of Water District No. 1 at Westchester’s Household Materials Recovery Facility or at other designated sites and (ii) to purchase at least $100,000 worth of 55-gallon rain barrels for residential collection and storage of roof rainwater runoff, to be distributed to residents of Water District No. 1.
The consent decree will be lodged with the District Court for a period of at least 30 days, and notice of the consent decree will be published in the Federal Register before the consent decree is submitted for the Court’s approval. This will afford members of the public the opportunity to submit comments on the consent decree to the Department of Justice.
This case is being handled by the Office’s Environmental Protection Unit. Assistant United States Attorneys Andrew E. Krause and Cristine Irvin Phillips are in charge of the case.
Logan man pleads guilty to being a convicted felon in possession of firearmsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Gary Brian Adams, 35, of Logan, West Virginia pleaded guilty today in federal court in Charleston to being a convicted felon in possession of three firearms. In May of 2013, officers with the West Virginia State Police and the Logan County Sheriff’s Department responded to a home near Chapmanville and recovered three firearms that Adams had stored in the home. Adams has two prior felony drug trafficking convictions from Logan County, so he is prohibited by federal law from possessing firearms. Adams faces up to 10 years’ imprisonment when he is sentenced on August 27, 2015.
This case was investigated by the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Lake Charles store owners plead guilty to selling counterfeit merchandiseRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that two Lake Charles retail store owners pleaded guilty to selling more than 800 counterfeit items.
Kayed Masoud, 31, and Ahmad Alnaasan, 42, both of Lake Charles, entered conditional guilty pleas to one count of trademark infringement to U.S. Magistrate Judge Kathleen Kay. The pleas will become final when accepted by U.S. District Judge Patricia Minaldi. According to evidence presented at the guilty plea, members of the Sulphur Police Department went to K&A Golden Fashions to recover stolen property and noticed a large number of counterfeit items such as brand name purses and shoes. After an investigation, Homeland Security Investigation agents executed a search warrant on September 26, 2013 and found 866 counterfeit items with branding such as “Nike,” “Coach” and “Polo.” The value of the items is estimated to be between $30,000 and $60,000.
The defendants face up to 10 years in prison, two to three years of supervised release, and a $2 million fine. A sentencing date of August 27, 2015 was set.
Homeland Security Investigations and the Sulphur Police Department conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Justice Department Finds That Hinds County, Mississippi, Fails to Protect Prisoners from Harm and Detains Prisoners Beyond Court-Ordered Release DatesRead the Press Release
Today, the Justice Department’s Civil Rights Division announced that it has completed its investigation of the Hinds County Adult Detention Center and the Jackson City Detention Center and issued a letter of findings that determined that Hinds County, Mississippi, violates prisoners’ constitutional rights at both jail facilities. The department found that the jail facilities fail to protect prisoners from violence by other prisoners and from improper use of force by staff. The department also found that the jail facilities detain prisoners beyond court-ordered release dates.
Systemic deficiencies contribute to serious harm and risk of harm at the jail facilities. In the past three years, at least three major riots occurred, resulting in one prisoner’s death and the closing of entire housing units. The department also documented rampant prisoner-on-prisoner violence, including an additional prisoner-on-prisoner homicide and a remarkable volume of contraband. The department found systemic deficiencies in staffing; policies and training; security and classification procedures; physical plant and maintenance; contraband control; and administrative review and other accountability measures to prevent, detect and investigate improper uses of force.
The department found that in an effort to address staffing and security concerns, Hinds County has locked down and otherwise improperly housed prisoners—severely limiting or eliminating access to treatment, education, exercise and visitation. The department noted that juvenile prisoners and prisoners with mental illness are acutely harmed by the lockdowns. One prisoner, who could neither speak nor hear, had been living in a cramped, dark booking cell with a reeking toilet for nearly three years.
The department also found that inadequate staffing and training, a backlog in record filing, and a lack of centralized information have resulted in prisoners being held beyond court-ordered release dates. The delays, most of which were between one and ten days, arose in a variety of circumstances, including after judges ordered prisoners released for lack of probable cause, for lack of prosecution, after adjudication of a guilty plea, and after requisite contempt fines had been paid. The longest period of over-detention—70 days—was for a 13-year-old middle school student, who was held a total of 173 days at the jail facilities without an indictment. The department also voiced concern that delays in indicting prisoners, obtaining forensic mental health review, and bringing cases to trial may lead to unnecessary and prolonged incarceration, draining much-needed resources from the jail facilities.
“Hinds County Adult Detention Center and the Jackson City Detention Center are facilities in crisis,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Making these facilities safe will require broad systemic reforms and a local commitment to improve staffing and operations. The jail facilities play an integral part in the county’s criminal justice system, and it will take cooperation between everyone involved to make the changes needed. The Civil Rights Division looks forward to working with county officials to bring these facilities into compliance with constitutional standards.”
“The Hinds County detention facilities have an obligation to provide conditions of confinement that do not offend the Constitution,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi. “This office will work with the Civil Rights Division of the Department of Justice to address and remedy the violations revealed by the investigation.”
The department’s investigation involved in-depth review and analysis of documents, including policies and procedures, incident reports, grievances, legal complaints and grand jury inspection reports. The department also interviewed jail administrators, staff, prisoners, county officials and various criminal justice stakeholders.
The Civil Rights of Institutionalized Persons Act (CRIPA) authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison or other correctional facility. The Attorney General may initiate a lawsuit pursuant to CRIPA forty-nine days after issuance of the findings letter to correct deficiencies identified in the letter if county officials have not satisfactorily addressed the concerns.
The department commends county officials and jail facilities staff for their cooperation and receptivity to the department’s concerns and looks forward to continuing to work with them in a collaborative manner to resolve the department’s findings expeditiously and under mutually agreeable terms.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Houma Interpreter Indicted for Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRINA MARIE BOURG, age 45, of Houma, was charged today in a five-count Superseding Indictment for crimes involving the solicitation of illegal payments from undocumented clients and their family members.
According to court records, on May 7, 2014, the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) received information that BOURG, who worked as a Spanish language interpreter contract employee for the Office of the District Defender for the 32nd Judicial District for Terrebonne Parish, was soliciting illegal payments from undocumented clients. Unknown to the clients’ attorneys, BOURG represented to the clients that she would use the money she received to bribe United States Immigration Officials in order to remove the immigration detainers or federal immigration charges from the clients’ criminal or administrative cases.
In 2011, and again in 2014, BOURG solicited illegal payments totaling more than $5,000 from Client “A” and his family members. The Indictment alleges BOURG employed threats and intimidation to coerce the family members into paying BOURG.
The Indictment also alleges that for a payment of $12,000 to $20,000, BOURG offered to marry one of her clients in order to improve his immigration status.
It is important to note that no federal immigration officials have been implicated in this investigation, nor is it believed that any federal officials were complicit in BOURG’s crimes. BOURG was originally indicted in August 2014.
If convicted, BOURG faces a term of incarceration of up to twenty years and a fine of $250,000 per count. U.S. District Judge Susie Morgan set a trial date on July 27, 2015, before United States District Judge Susie Morgan.
U. S. Attorney Polite reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI (McAllen, TX and Houma, LA offices), the Louisiana State Police-Criminal Investigation Division, and the Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba and Assistant U.S. Attorney Marquest Meeks.
Trina Marie Bourg Superseding Indictment.pdf (126.31 KB)
Herrin Man Sentenced on Heroin OffenseRead the Press Release
On May 15, 2015, Adam M. Calvert, 31, Herrin, Ill., was sentenced for his involvement in a heroin violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Calvert, who had previously pled guilty to a one-count indictment charging conspiracy to distribute heroin, was sentenced to 100 months in federal prison, 3 years’ supervised release, and fined $200.00. The offense occurred between 2012 and January 2014, in Williamson and Jackson Counties. Evidence at the plea and sentencing hearings established that Calvert was involved with others in the distribution of heroin. On multiple occasions, Calvert sold heroin to a confidential source working for law enforcement. During the execution of a July 2013 search warrant at Calvert’s Herrin residence, officers located syringes, pre-recorded buy money, a digital scale, and numerous other drug-related items. During a later January 2014 arrest, officers located heroin in Calvert’s sock. At that time, officers again located digital scales, used syringes, and other drug-related items at Calvert’s residence. At sentencing, the district court found Calvert responsible for more than 1.2 kilograms of heroin.
The investigation was conducted by the Southern Illinois Enforcement and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Harrison County, WV man convicted of unlawful possession of firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darius Henning, 24, of Clarksburg, was convicted today in federal court of unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Henning was convicted in January 2011 of “First Degree Robbery” in the Circuit Court of Harrison County, West Virginia. As a result of that conviction, he is prohibited from possessing firearms. He was discovered in January 2015 in possession of a stolen .45 caliber pistol in Harrison County, West Virginia.
Henning pled guilty today to one count of “Felon in Possession of Firearm” and one count of “Possession of Stolen Firearm.” He faces up to ten years in prison and a fine of up to $250,000.00 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Haitian Man Pleads Guilty to Alien SmugglingRead the Press Release
A Haitian man pled guilty yesterday before Chief U.S. Magistrate Judge Frank J. Lynch, Jr. to alien smuggling.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Veronel Charles, 37, of Haiti, pled guilty to two counts of transporting aliens into the United States, in violation of Title 8, United States Code, Section 1324(a). Sentencing is scheduled for August 28, 2015, at 9:30 a.m., before U.S. District Judge Robin L. Rosenberg in Ft. Pierce. At sentencing, Charles faces for each of the two counts a mandatory minimum of three years, up to a maximum of ten years, in prison.
According to court documents, Charles piloted a boat from the Bahamas during the night of March 15-16, 2015, to land on the Florida coast in the early morning hours in St. Lucie County. With Charles in the boat were 19 other passengers, all unauthorized aliens from Haiti and the Dominican Republic. Five of the aliens aboard were aliens previously deported from the United States after criminal convictions for aggravated felonies.
Mr. Ferrer commended the investigative efforts of HSI, and the assistance of the U.S. Border Patrol and the Martin County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Franklin Woman Pleads Guilty to Theft of Social Security BenefitsRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Barbara Phillips, 66, of Franklin, Maine, pled guilty yesterday in U.S. District Court to theft of public money.
According to court records, from about August 2011 until December of 2013, Phillips withdrew social security funds being deposited in her deceased mother’s checking account. In all, Phillip’s stole over $31,000 by drafting checks to herself from the decedent’s account.
Phillips faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Social Security Administration Office of the Inspector General.
Four South Florida Residents Charged in Sweepstakes Fraud SchemeRead the Press Release
Four Florida residents were charged, by indictment in the Southern District of Florida, for participating in a sweepstakes fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge of the Miami Division, U.S. Postal Inspection Service (USPIS), made the announcement.
Matthew Pisoni, 42, of Fort Lauderdale, Marcus Pradel, 39, of Boca Raton, John Leon, 47, of Wilton Manors, and Victor Ramirez, 35, of Aventura, were indicted for their participation in a sweepstakes fraud scheme. The defendants are charged with conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; conspiring to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i). The maximum statutory penalty for each count in the indictment is twenty years in prison. Ramirez is also charged with conspiring to structure deposits, in violation of Title 18, United States Code, Section 371, an offense punishable by up to five years in prison.
According to the indictment, unsealed today before the United States District Court in the Southern District of Florida, the four defendants falsely notified individuals by mail that they had won a substantial prize. The letters sent by the defendants fraudulently represented that the recipients needed to pay the defendants a fee ranging from $20 to $50 to redeem their purported winnings. During the course of the mail fraud conspiracy, more than a hundred thousand victims in the United States and abroad were fraudulently induced to pay the fees by the defendants’ misleading claims that they had won a prize. The fraudulent letters directed victims to pay the fees in cash, or by check or money orders made payable to fictitious companies controlled directly and indirectly by the defendants and their co-conspirators. In some instances, the defendants directed co-conspirators and associates to deposit victim checks into shell companies and laundered that money, and in other instances, the criminal proceeds were laundered through international bank accounts controlled directly and indirectly by the defendants and their co-conspirators.
According to a complaint filed by the Federal Trade Commission (FTC) in a companion case, since at least 2010, the defendants collected over $25 million from consumers through this fraudulent sweepstakes operation.
Mr. Ferrer commended the investigative efforts of the IRS-CI, USPIS, FTC, the Aventura Police Department and local and international law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Alejandro Soto, Elijah Levitt, and H. Ron Davidson.
An indictment contains mere allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Mexican Nationals Sentenced for Conspiracy to Sell False ID Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four Mexican nationals have been sentenced in federal court for their roles in a conspiracy that produced and sold thousands of false identification documents to illegal aliens.
Eriberto Moises Medina-Aranda, 40, of Rayville, Mo., was sentenced by U.S. District Judge Dean Whipple on Wednesday, May 20, 2015, to 10 years in federal prison without parole. Cesar Mujica-Aranda (Medina-Aranda’s half-brother), also known as “Oscar Gomez,” 25, a citizen of Mexico residing in Liberty, Mo., was sentenced to five years in federal prison without parole.
Bernardino Bautista-Hernandez, 33, also known as “Brujo,” a citizen of Mexico residing in Kansas City, Mo., was sentenced to one year and one day in federal prison without parole. Ulises Montiel-Lazcano, also known as “Loco”, 35, a citizen of Mexico residing in Merriam, Kan., was sentenced to 11 months in federal prison without parole.
They must also forfeit to the government $403,700, which represents the total proceeds from the sale of counterfeit identification documents – criminal investigators estimate that the criminal enterprise manufactured and sold at least 7,122 fraudulent identification documents.
Each of the co-defendants pleaded guilty to his role in the conspiracy to produce false Social Security cards, false Lawful Permanent Resident cards and false driver’s licenses from various states within the United States as well as Mexican states between Sept. 1, 2013, and Feb. 21, 2014. Conspirators produced and sold thousands of false identification documents to illegal aliens so that the illegal aliens could stay and work within the United States. Conspirators sold the counterfeit identification documents for at least $100.
Medina-Aranda admitted that he oversaw the production and distribution of false identification documents. There were numerous street level dealers involved in the conspiracy. The street dealers would typically pay $50 for each counterfeit identification document sold and the street dealers would keep the excess proceeds they were able to obtain from the sale of the counterfeit documents.
Medina-Aranda also pleaded guilty to being an illegal alien in possession of firearms. Medina-Aranda admitted that in February 2014 he was in possession of a Smith & Wesson semi-automatic rifle, a Marlin rifle and ammunition, all of which were found in his residence by federal law enforcement agents. Medina-Aranda is illegally residing in the United States. His spouse, a citizen of the United States, purchased the Smith & Wesson semi-automatic rifle for him as a birthday gift at the Excelsior Springs, Mo., Wal-Mart store. His plea agreement contains a photograph of Medina-Aranda posing with the semi-automatic assault rifle next to a painting of Al Pacino in his “Scarface” role, who is holding a rifle in a similar pose.
Mujica-Aranda admitted that he managed the production of counterfeit identification documents at his Liberty apartment. He managed the production of the false identification documents and sold the documents to numerous street level dealers, such as Bautista-Hernandez and Montiel-Lazcano. Mujica-Aranda produced fraudulent Lawful Permanent Resident cards, counterfeit Social Security cards, and false driver’s licenses from various states within the United States as well as Mexican states.
On Jan. 30, 2014, Mujica-Aranda threw away a white plastic bag containing shredded pieces of fraudulent identity documents in a trash can at a gas station at St. John Avenue and Belmont in Kansas City, Mo. Early the next morning, a federal agent located the bag in the trash can. The bag contained shredded pieces of fraudulent identification documents, and weighed approximately two pounds. Each piece was approximately the size of a small paper clip, and the shredded pieces were immediately recognizable as fraudulent Lawful Permanent Resident cards, Social Security cards, Missouri non-driver’s licenses and Kansas identification cards. The agent also discovered two reels of depleted color card printer ribbon within the shredded pieces. One reel had images of fraudulent Lawful Permanent Resident cards.
Investigators secured a total of 16 reels of depleted color card printer ribbons weighing a total of 24 pounds, which were seized from a dumpster located at a gas station, a residence in Liberty, Mo., and a storage unit in Excelsior Springs, Mo. A United States Secret Service forensic testing lab evaluated these ribbons and was able to ascertain that the ribbons contained front and back images of 3,185 Lawful Permanent Resident cards.
Luis Daniel Cabrera-Guzman, also known as “Driver,” 30, a citizen of Mexico residing in Kansas City, was sentenced on March 24, 2015, to two years in federal prison without parole after pleading guilty in a separate but related case to his role in the conspiracy. The court also ordered Cabrera-Guzman to forfeit $403,700 to the government, including $9,376 that was seized by law enforcement officers at the time of his arrest. According to court documents, Cabrera-Guzman has been illegally living in the United States periodically since 2001. He was deported in May 2009 and June 2009 and illegally reentered the country.
These cases were prosecuted by Special Assistant U.S. Attorney Trey Alford. They were investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of the Inspector General, the Kansas Department of Revenue – Office of Special Investigations, the Missouri Department of Revenue – Compliance Investigation Bureau and the Clay County, Mo., Prosecuting Attorney’s Office.
Four Charged in Federal Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
BROWNSVILLE, Texas – Four people have been charged for their involvement in a drug and money laundering conspiracy, three of whom have also been designated as Specially Designated Narcotics Traffickers (SDNTs), announced United States Attorney Kenneth Magidson.
The indictment charges Abel Briones-Ruiz aka “Cacho,” 45, his wife Myriam Susana Beattie de Briones, 36, and brother-in-law Rogelio Nieto-Gonzalez, 37, along with another individual who is not yet in custody. Briones-Ruiz, Beattie de Briones and Gonzalez-Nieto are not believed to be residing in the United States.
In conjunction with the announcement, the U.S. Department of the Treasury's Office of Foreign Assets Control has designated Briones Ruiz, Beattie de Briones and Nieto-Gonzalez each as a SDNT pursuant to the Foreign Narcotics Kingpin Designation Act for allegedly providing support for the international narcotics trafficking activities of the Gulf Cartel.
The indictment, returned under seal Oct. 22, 2014, was unsealed Monday, May 18, 2015.
Briones-Ruiz, Nieto-Gonzalez and others allegedly conspired from Jan. 1, 2005, to Oct. 22, 2014, to possess with the intent to distribute more than five kilograms of cocaine. If convicted, they each face no less than 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
Briones-Ruiz, Nieto-Gonzalez and Beattie de Briones are charged with conspiring during the same time period to launder the proceeds from distributing controlled substances. They face a maximum of 20 years imprisonment and a possible $500,000 maximum fine.
In addition, Briones-Ruiz and another are further charged with international transportation of funds from drug sales which also carries a 20-year-maximum and $500,000 fine.
Finally, Briones-Ruiz and his wife allegedly structured transactions to evade reporting requirements. If convicted of that offense, they each face another 10 years in federal prison and $500,000 fine.
The government also gave notice in the indictment that it intends to seek forfeiture of properties Gonzalez-Nieto owned.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, sheriff’s offices in Cameron and Willacy Counties, and police departments in Brownsville, Port Isabel, Harlingen and San Benito. Assistant U.S. Attorney Michael Hess is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Former Bureau of Prisons Employee Charged with Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Charles Carstersen, 52, of Manteca, charging him with sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, between February and March 2015, while Carstersen was employed at the Bureau of Prisons, he recruited a 16-year-old girl to engage in prostitution. He rented hotel rooms for her in the Sacramento area, helped her to post ads online, and bought her clothes. On May 11, 2015, Carstersen was arrested and has been in custody as a flight risk and a danger to the community.
This case is the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force of which the Sacramento Police Department is a member, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.
If convicted, Carstersen faces 10 years to life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Forfeited Assets Seized in Internet Gambling and Money Laundering Case DistributedRead the Press Release
U.S. Attorney Richard S. Hartunian of the Northern District of New York announced today the distribution to numerous law enforcement agencies of over $9.6 million of forfeited assets seized during a multi-agency investigation of an international Internet gambling operation. Joining U.S. Attorney Hartunian were U.S. Marshal David McNulty, Sheriff Craig Apple Sr. of Albany County, Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division, Supervisory Special Agent Thomas Fattorusso of the IRS and Attorney Karen Heggen of the Saratoga County District of New York.
The assets were forfeited in connection with guilty pleas entered in U.S. District Court in the Northern District of New York by Philip Gurian, Michele Lasso and Alan Gould, each of whom pleaded guilty to conspiracy to launder monetary instruments and Jay Goldman, who pleaded guilty to transmission of wagering information.
A total of $9,628,093.75 was distributed by the U.S. Marshal’s Service to the Albany County Sheriff’s Office, the FBI, the IRS, the Albany County District Attorney’s Office, the Saratoga County District Attorney’s Office and the Broward County Sheriff’s Office as follows:
- Albany County Sheriff’s Office
$4,662,393.21
- Albany County District Attorney’s Office
$862,468.22
- Saratoga County District Attorney’s Office
$363,833.85
- Broward County Sheriff’s Office
$104,946.22
- IRS
$1,653,579.39
- FBI
$1,980,872.86
All of the above law enforcement agencies participated in an investigation which revealed that the above-named defendants operated a large-scale illegal gambling business using internet websites which allowed bettors to place thousands of wagers from New York, Florida, Indiana, California, Texas, Kansas, Nevada and elsewhere. Over a four year period, at least $10 million in illegal gambling proceeds were deposited into accounts in the names of sham corporations and accounts in Panama, Andorra and the Cayman Islands. Gurian admitted having said that he was making $150,000 each day. Lasso admitted helping Gurian launder the gambling proceeds to conceal the source and control of the money, depositing at least $8 million. Gould admitted involvement in $3.8 million in transactions. Goldman admitted accepting nearly 9,000 bets totaling over $1.5 million using foreign websites and eighteen different routers.
“Stripping criminals of illegal profits deprives them of the fuel that sustains their illegitimate enterprises,” said U.S. Attorney Hartunian. “In illegal gambling, money is both the way the crime is committed and the reason for committing it. No money equals no crime. Forfeiting the proceeds and instrumentalities of crime puts the money to work for good – helping the victims of crime, funding community programs and providing resources to be used to promote public safety. Equitable sharing redirects these illegal proceeds toward the local law enforcement agencies who work with their federal counterparts and U.S. Attorneys to dismantle large scale criminal enterprises like this one. Such sharing can enable a local police chief, sheriff, or district attorney to commit the necessary resources to conduct a complex, long term investigation that in the end enhances public safety.”
This case was prosecuted by Assistant U.S. Attorney Robert A. Sharpe of the Northern District of New York.
Five School Bus Owners Indicted for Bid-Rigging and Fraud Conspiracies at Puerto Rico Public School Bus AuctionRead the Press Release
A federal grand jury in San Juan, Puerto Rico, returned an indictment against five individuals for participating in bid rigging and fraud conspiracies at an auction for public school bus transportation contracts in Puerto Rico’s Caguas municipality, the Department of Justice announced today.
A seven-count felony indictment was filed yesterday in U.S. District Court of the District of Puerto Rico in San Juan against five bus transportation company owners: Gavino Rivera-Herrera, Luciano Vega-Martínez, Alfonso Gonzales-Nevarez, José L. Arroyo-Quiñones and René Garay-Rodríguez.
Count one charges the bus owners with participating in a conspiracy to rig bids and allocate the market for public school bus transportation services in the Caguas municipality. The second count charges the bus owners with conspiracy to commit mail fraud and counts three through seven charge the bus owners with committing mail fraud. According to the indictment, the defendants and others defrauded, and conspired to defraud, the Puerto Rico Department of Education and the Caguas municipality, among others, in order to fraudulently obtain contracts for school bus transportation services.
These charges relate to a 2013 Caguas municipality auction, at which four-year contracts for public school bus transportation were awarded. The indictment alleges that the defendants participated in the charged offenses from around August 2013 until at least May 2015.
“The defendants are charged with depriving taxpayers, the Municipality of Caguas and the Puerto Rico Department of Education of the benefits of a competitive bidding process for school bus contracts,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “This is unacceptable. The Division will continue its efforts to protect U.S. citizens across the country and hold accountable those who subvert competition.”
“Today’s case is the latest in our ongoing efforts to investigate and prosecute financial crimes, one of the priorities of the Department of Justice,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. “These arrests serve as a reminder that federal law enforcement agencies intend to vigorously prosecute those who manipulate the economic system to enrich themselves at the expense of the government.”
"Price fixing victimizes the consumer which in this case are the honest, hardworking and tax paying citizens living in Puerto Rico,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division. “Let there be no doubt, the FBI, along with law enforcement partners, will continue to investigate, charge and prosecute any individuals involved in these type of acts."
The bus owners are charged with bid rigging and market allocation in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than $1 million. Each count of mail fraud, and conspiracy to commit mail fraud, carries a maximum sentence of 20 years in prison and a $250,000 fine.
This is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. This investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the U.S. Attorney’s Office of the District of Puerto Rico, the FBI’s Puerto Rico Field Office and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
Five School Bus Owners Indicted for Bid-Rigging and Fraud Conspiracies at Puerto Rico Public School Bus AuctionRead the Press Release
WASHINGTON – A federal grand jury in San Juan, Puerto Rico, returned an indictment against five individuals for participating in bid rigging and fraud conspiracies at an auction for public school bus transportation contracts in Puerto Rico’s Caguas municipality, the Department of Justice announced today.
A seven-count felony indictment was filed yesterday in U.S. District Court for the District of Puerto Rico in San Juan against five bus transportation company owners: Gavino Rivera-Herrera, Luciano Vega-Martínez, Alfonso Gonzales-Nevárez, José L. Arroyo-Quiñones, and René Garay-Rodríguez.
Count one charges the bus owners with participating in a conspiracy to rig bids and allocate the market for public school bus transportation services in the Caguas municipality. The second count charges the bus owners with conspiracy to commit mail fraud, and counts three through seven charge the bus owners with committing mail fraud. According to the indictment, the defendants and others defrauded, and conspired to defraud, the Puerto Rico Department of Education and the Caguas municipality, among others, in order to fraudulently obtain contracts for school bus transportation services.
These charges relate to a 2013 Caguas municipality auction, at which four-year contracts for public school bus transportation were awarded. The indictment alleges that the defendants participated in the charged offenses from around August 2013 until at least May 2015.
“The defendants are charged with depriving taxpayers, the Municipality of Caguas and the Puerto Rico Department of Education of the benefits of a competitive bidding process for school bus contracts,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “This is unacceptable. The Division will continue its efforts to protect U.S. citizens across the country and hold accountable those who subvert competition.”
“Today’s case is the latest in our ongoing efforts to investigate and prosecute financial crimes, one of the priorities of the Department of Justice,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. “These arrests serve as a reminder that Federal law enforcement agencies intend to vigorously prosecute those who manipulate the economic system to enrich themselves at the expense of the government.”
“Price fixing victimizes the consumer which in this case are the honest, hardworking, and tax paying citizens living in Puerto Rico,” said Special Agent in Charge Carlos Cases of the FBI’s San Juan Division. “Let there be no doubt, the FBI, along with law enforcement partners, will continue to investigate, charge, and prosecute any individuals involved in these type of acts.”
The bus owners are charged with bid rigging and market allocation in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than $1 million. Each count of mail fraud, and conspiracy to commit mail fraud, carries a maximum sentence of 20 years in prison and a $250,000 fine.
This is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry. This investigation is being conducted by the Antitrust Division’s Washington Criminal I Section, the District of Puerto Rico U.S. Attorney’s Office, the FBI’s Puerto Rico Field Office, and the U.S. Department of Education Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.
Federal Court Prohibits Florida Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court has barred a Doral, Florida, man and his businesses from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order, to which Eleuterio Almanzar consented, was entered by U.S. District Court Judge Jose E. Martinez of the Southern District of Florida. The government’s complaint alleged that Almanzar prepared federal income tax returns for customers that understate the tax that is due or seek refunds larger than are appropriate. The injunction also bars Almanzar’s businesses, Almanzar Tax Accounting & Consulting Corp. and Almanzar Financial Services Corp., from continuing to prepare tax returns.
According to the complaint, the tax understatements were the result of improper education credits, first time homebuyer tax credits, earned income tax credits, charitable deductions and business expense deductions that Almanzar claimed for his customers without performing the required due diligence and despite the absence of any supporting documentation. Because some of these credits are refundable credits, the improper claims often resulted in refunds that were larger than appropriate, according to the suit. The Internal Revenue Service (IRS) interviewed several of Almanzar’s customers, who stated that the improper deductions and credits were not based on information they provided to Almanzar, and that they did not know that the improper deductions and credits had been taken on their tax return until after their return was filed.
The injunction requires Almanzar to provide a list of customers that identifies by name, social security number, address, e-mail address, telephone number and tax periods all persons for whom he has prepared federal tax returns or claims for refund since Jan. 1, 2009.
For the returns Almanzar prepared since 2009, which the IRS examined, the average tax deficiency was $3,249 per return, according to the complaint. Given the number of returns Almanzar has prepared since 2009, he has potentially caused millions of dollars of harm to the U.S. Treasury.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County, New Jersey, Man Sentenced to Seven Years in Prison for Role in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man was sentenced today to 84 months in prison for conspiring to defraud financial institutions and launder stolen funds as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Timothy Ricks, 47, of East Orange, New Jersey, previously pleaded guilty before Judge Jerome B. Simandle to a superseding indictment charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Judge Simandle imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Ricks was among 11 defendants charged in July 2012 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Ricks and others located oceanfront condominiums overbuilt by financially distressed developers and negotiated a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, New Jersey, other locations in New Jersey and in Naples, Florida – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and sale and finder’s fee agreements.
Ricks and others recruited straw buyers to purchase certain properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. The conspirators created false documents, such as fake W-2 forms, pay stubs, bank statements and investment statements, to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Ricks and others also caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Ricks and others received a portion of the proceeds after conspirators had funds wired or checks deposited into various accounts they controlled.
In addition to the prison term, Judge Simandle sentenced Ricks to serve five years of supervised release. Restitution will be determined at a hearing scheduled for July 9, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, in Newark, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Joshua Markowitz Esq., Princeton, New Jersey
Ellsworth Man Sentenced to 1½ Years for Failing to Register as a Sex OffenderRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that James Eggleston, 34, of Ellsworth, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock Jr. to1½ years in prison and five years of supervised release for failing to register as a sex offender under the Sex Offender Registration and Notification Act. Eggleston pleaded guilty to the charge on February 5, 2015.
According to court records, Eggleston was arrested in August of 2014 for an Ellsworth burglary. Investigators learned that Eggleston was required to register as a sex offender due to a 2003 Florida conviction, but that he had failed to do so in Maine. Eggleston admitted that he moved to Maine in April of 2014, four months before his arrest and had not notified authorities as required by law.
The investigation was conducted by the U.S. Marshals Service and the Ellsworth Police Department.
El Paso Man Sentenced to 10 Years Imprisonment for Receipt of Child PornographyRead the Press Release
In El Paso, 54–year-old Victor Jerome Reza was sentenced to ten years in federal prison for receipt and distribution of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, U.S. District Judge Philip R. Martinez ordered that Reza pay a $1,000 fine, be placed on supervised release for a period of ten years after completing his prison term and register as a sex offender. Judge Martinez also ordered that Reza surrender to federal authorities before July 20, 2015, to begin serving his prison term.
According to court records, the HSI El Paso Cyber Crimes Group executed a search warrant at the defendant’s residence on August 5, 2014, Evidence gathered during that search included the defendant’s laptop and desktop computers as well as an assortment of computer related media. A subsequent search of the seized material revealed the presence of 277 videos and 2,910 images depicting the sexual exploitation of minors downloaded from the Internet.
On February 26, 2015, Reza pleaded guilty to one count of receipt and distribution of child pornography.
“One of HSI’s highest priorities is to identify, arrest and ensure individuals guilty of such heinous crimes are removed from our community, and away from our children,” said Waldemar Rodriguez, special agent in charge of Homeland Security Investigations (HSI) El Paso. “HSI will use all its resources and ample investigative authorities to target child predators.”
This case was investigated by HSI El Paso and prosecuted by Assistant U.S. Attorney Rifian Newaz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Despite Mother’s Efforts to Influence Witnesses, Son Sentenced to 7 Years for Being a Felon in Possession of FirearmsRead the Press Release
Montgomery, Ala. – Sergio Dickerson, a 23-year old Montgomery resident, was sentenced Thursday, May 21, 2015 to 84 months in prison after pleading guilty to being a felon in possession of a firearm, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama.
In January 2014, Dickerson was involved in an automobile accident in Montgomery. After the accident, he was arrested by the Montgomery Police Department when witnesses told police they saw him hide a gun case in a drainage ditch before they arrived on the scene. The gun case was found and contained a handgun, an assault rifle, four magazines, including one 60-round capacity magazine, and over 1200 rounds of assorted ammunition.
Dickerson, who had previous robbery and theft felony convictions, was indicted by a federal grand jury in July of 2014 for being a felon in possession of a firearm. Shortly thereafter, Dickerson’s mother, Bernadette Dickerson, began contacting witnesses in the case in order to entice them to not testify against her son. She was sentenced to 12 months and 1 day in prison for witness tampering.
The case was investigated by the FBI's Central Alabama Safe Streets Violent Gang task force, with assistance from the Montgomery Police Department, and was prosecuted by Assistant United States Attorney John Geer.
Department of Justice Proposes Legislation to Improve Access to Voting for American Indians and Alaska NativesRead the Press Release
Today the Department of Justice proposed legislation that would require states or localities whose territory includes part or all of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected by the tribal government.
“The Department of Justice is deeply committed to ensuring that every eligible individual is able to exercise his or her fundamental right to vote,” said Attorney General Loretta E. Lynch. “That’s why, today, I am calling on Congress to help remove the significant and unnecessary barriers that for too long have confronted American Indians and Alaska Natives attempting to cast their ballots. The legislation we recommend today will make this nation stronger by extending meaningful voting opportunities to native populations, by encouraging full participation in our democratic institutions, and by bringing us closer to our most cherished ideals.”
“As citizens of a nation founded upon the principles of liberty and equality, Native Americans have faced unacceptable barriers to participating in the franchise, a situation aggravated by a history of discrimination, poverty and — significantly — great distances from polling places,” said Acting Associate Attorney General Stuart Delery. “In spite of many reforms made possible by the Voting Rights Act and other measures, voting rates among Native Americans remain disproportionately low. The legislation proposed today would address this unacceptable gap and we look forward to working with Congress to see it enacted.”
American Indians and Alaska Natives have faced significant obstacles that have prevented them from enjoying equal access to polling places and equal opportunities to cast a ballot. In addition to suffering from a long history of discrimination, the distance many American Indian and Alaska Native citizens must travel to reach a polling place presents a substantial and ongoing barrier to full voter participation. Following formal consultations with Indian tribes, the Department of Justice believes that there is a pressing need for federal legislation to ensure equal access to voting by Native American voters.
Today, the Department of Justice sent a letter to Congress with a legislative proposal, which would ensure that American Indian and Alaska Natives have access to at least one polling place in their communities to cast their ballots and require a number of additional obligations to ensure parity with other polling places.
This legislative proposal, a stand-alone bill, would:
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Enable Native Americans to vote on or near tribal lands, by requiring any state or local election administrator whose territory includes part or all of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected, and made available for the purpose of conducting elections, by the tribal government.
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Require states to make voting machines, ballots, and other voting materials and equipment available at these tribally located polling places to the same extent that they are available at other polling places in the state.
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Require states to provide compensation and other benefits to election officials and poll workers at these polling places to the same extent as at other polling places in the state.
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Require states to use the same voting procedures at these polling places as at other polling places in the state — potentially including election-day voting, early voting, the hours during which polling places are open, the operation of voting mechanisms or systems, and same-day registration.
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Allow states to meet their obligations by either creating new polling places or relocating existing ones.
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Allow tribes with larger populations or land bases to request more than one polling place.
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Make the states’ obligations contingent on the tribe filing a timely request and certifying that it has arranged for access to, and appropriate staffing for, the polling facility.
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Require the tribe to ensure that the staffers for the polling place are properly trained.
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Require the tribe to ensure that the polling place will be open and accessible to all eligible citizens who reside in the precinct, regardless of whether they are Indians or non-Indians.
The Department of Justice is committed to ensuring equal access to voting for Native American voters. This proposal would address serious voting obstacles faced by citizens who are members of Indian tribes and Alaska Native villages; provide equal access to polling places for all eligible citizens, including members of tribes and villages; reinforce our nation’s commitment to the fundamental right to vote; and strengthen the government-to-government relationship between the United States and tribal nations.
In 1975, recognizing the barriers to full participation that Native Americans continued to confront, Congress expressly included American Indians and Alaska Natives as protected groups under the special provisions of the Voting Rights Act. Sections 4 and 5 of the Voting Rights Act prohibited many jurisdictions with large American Indian or Alaska Native populations from changing their voting laws until they could prove that the change would not create new barriers to effective participation. A number of jurisdictions with large Native American populations that have limited English proficiency — in six states, including Alaska — are also covered by Section 203 of the Voting Rights Act, which requires bilingual election materials and assistance.
Despite these reforms, participation rates among American Indians and Alaska Natives continue to lag behind turnout rates among non-Native voters. For example, in Alaska, turnout among Alaska Natives often falls 15 to 20 or more percentage points below the non-Native turnout rate. The causes of these disparities are complex, but the reality is that political participation by Native Americans consistently trails that of non-Natives and unequal access to polling places is a significant contributing factor.
Review the legislation at www.justice.gov/tribal/department-justice-proposes-legislation-improve-access-voting-american-indians-and-alaska.
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Defendants in El Paso Crystal Meth Distribution Ring Sentenced to Lengthy Federal Prison TermsRead the Press Release
In El Paso, ten individuals have been sentenced to federal prison in connection with a “crystal” methamphetamine distribution scheme announced Acting United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration Special Agent in Charge Will Glaspy, El Paso Division.
On Tuesday, United States District Judge Kathleen Cardone sentenced 44–year-old Edwardo Rodriguez of El Paso to 250 months in federal prison followed by five years of supervised release. Before sentencing Rodriguez, Judge Cardone sentenced nine of his co-defendants to terms of imprisonment ranging from 180 months to 18 months. All ten pleaded guilty to a charge of conspiracy to possess with intent to distribute a controlled substance.
By pleading guilty, the defendants admitted to trafficking methamphetamine between January and June 2014. According to court records, Rodriguez and the others conspired to distribute methamphetamine from Mexico, into El Paso, and ultimately to destinations across the United States including California, Illinois and Georgia. During this investigation, authorities seized approximately five kilograms of methamphetamine attributed to this organization—3.5 kilograms of which was considered 99% pure.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the Drug Enforcement Administration (DEA) together with the Homeland Security Investigations (HSI) and the El Paso County Sheriff’s Office.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Current and Former Executives of an Automotive Parts Manufacturer Indicted for Roles in Conspiracy to Fix Prices - Investigation Has Resulted in Charges Against 90 Individuals and CorporationsRead the Press Release
A Detroit federal grand jury returned a one-count indictment against two executives of a Japanese automotive parts manufacturer for their participation in a conspiracy to fix prices and rig bids of automotive parts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Norio Teranishi, formerly of NGK Spark Plug Co. Ltd., and Hisashi Nakanishi of NGK Spark Plug, with conspiring to fix the prices of spark plugs, standard oxygen sensors, and air fuel ratio sensors, sold to DaimlerChrysler AG, Ford Motor Company, Fuji Heavy Industries (Subaru), General Motors Company, Honda Motor Company Ltd., Nissan Motor Co. Ltd., Toyota Motor Corporation, and certain of their U.S. subsidiaries.
Teranishi is the former General Manager of Sales and Vice-Head of the Automotive Component Group at NGK Spark Plug. During the alleged conspiracy, Nakanishi served as the Managing Director of NGK Spark Plug Europe.
The indictment alleges, among other things, that beginning at least as early as January 2000 and continuing until at least July 2011, Teranishi and Nakanishi, and their co-conspirators participated in, and directed, authorized or consented to the participation of subordinate employees in, meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply, and fix the price of spark plugs, standard oxygen sensors, and air fuel ratio sensors sold to certain automobile manufacturers, in the United States and elsewhere.
“As a result of Antitrust Division’s automotive parts investigation, more than 50 individuals have been held accountable for corrupting the competitive process in this important global market,” said Deputy Assistant Attorney General Brent Snyder of the Antitrust Division’s Criminal Enforcement Program. “The Antitrust Division will continue to vigorously prosecute those individuals who engaged in criminal antitrust violations in this vital market.”
“The criminal manipulation of the global automotive parts market through price fixing and bid rigging is a serious offense,” stated Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office. “The FBI, together with the Department of Justice Antitrust Division, will continue to aggressively pursue those who seek to commit criminal antitrust violations in order to gain a competitive advantage through corruption of the global marketplace.”
NGK Spark Plug is a corporation organized and existing under the laws of Japan with its principal place of business in Nagoya, Japan. On Oct. 8, 2014, NGK Spark Plug pleaded guilty and agreed to pay a $52.1 million criminal fine for its role in the conspiracy.
Including Teranishi and Nakanishi, 55 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing and bid rigging in the automotive parts industry. Additionally, 35 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.5 billion in criminal fines.
Teranishi and Nakanishi are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Cross Lanes man admits to selling high grade methamphetamineRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that David Matthew Little, age 37, of Cross Lanes, West Virginia pled guilty in federal court in Charleston to conspiring with other people to distribute more than 5 grams of pure crystal methamphetamine. Little admitted that from early 2014 until December of that same year, he conspired with his wife, Cheri Little, to distribute methamphetamine at his home and other places in Cross Lanes. Little admitted that he obtained ounce quantities of methamphetamine from an unnamed source, paying $1375.00 per ounce, and then resold part of the meth for a profit. Because of the purity of the drug distributed by Little, he faces from a mandatory minimum of five years up to 40 years imprisonment and a $5,000,000.00 fine when he is sentenced on August 19, 2015.
The case was investigated by members of the Metropolitan Drug Enforcement Network Team. The case was prosecuted by Assistant United States Attorney John Frail.
Columbus Bank Robber Sentenced to 78 MonthsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Frederick Worrills, 47, of Columbus, Georgia was sentenced today by the Honorable Judge Clay D. Land, United States District Judge in Columbus. Mr. Worrills was sentenced to 78 months for bank robbery.
On December 17, 2014, Mr. Worrills entered a Bank of America branch in Columbus and attempted to withdraw funds from his account. Mr. Worrills was told that his account was overdrawn by the teller. He left without any incident. Later that same day, Mr. Worrills returned and approached the same teller. He didn’t try to conceal his identity, even though he was known to many of the tellers. Mr. Worrills handed the teller a note that stated “Give me all your money I got a gun.” No firearm could be seen but Mr. Worrills kept one hand out of sight. He left with $3764.54. The robbery was captured on surveillance video. The teller and other Bank of America employees positively identified Mr. Worrills as the robber. The FBI went to Mr. Worrills’ address and met with his mother who lives with him. She also identified Mr. Worrills as the robber.
“Mr. Worrills not only took money from a federally insured bank, he also put lives in jeopardy by threatening the tellers and requiring law enforcement officers to search for him,” United States Attorney Michael Moore said. “Instead of hitting the jackpot, Mr. Worrills will be hitting the federal prison system, where he’ll serve a sentence that is appropriate for his criminal conduct.”
The case was investigated by the Federal Bureau of Investigation and the Columbus Police Department. Assistant United States Attorney Melvin E. Hyde, Jr. prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Colp Resident Sentenced for Drug ConspiracyRead the Press Release
On May 18, 2015, Ahamad R. Atkins, a/k/a "Omar," and "O," 34, of Colp, IL, was sentenced for a federal drug violation, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Atkins, who had previously pled guilty to an indictment charging conspiracy to distribute crack cocaine and heroin, was sentenced to 216 months in federal prison, to be followed by 3 years of supervised release, and $400.00. The offense occurred between 2012 and May 2014, in Williamson County. Evidence at the plea and sentencing hearings, established that Atkins and co-defendant Antuan Perkins, a/k/a "Little Man," and others were bringing large amounts of cocaine and heroin from Chicago to Colp for distribution. In Colp, Atkins often cooked the powder cocaine into crack cocaine. On multiple occasions, Atkins sold crack cocaine and heroin to confidential sources working for law enforcement. Atkins often had other persons assisting him in the distributions. At sentencing, the district court found that Atkins was responsible for the distribution of 701.2 grams of crack cocaine, 1009 grams of powder cocaine, and 1430.1 grams of heroin. Atkins received a sentencing enhancement because he possessed multiple firearms during his drug dealing. Because Atkins falsely denied and frivolously contested much of his drug involvement at sentencing, the district court found that Atkins had not accepted responsibility for his offense. Co-defendant Perkins has pled guilty to the crack cocaine and heroin offense and is currently awaiting sentencing.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Chico Man Charged with Filming Sexual Abuse of a ChildRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Nathan Alexander Drury, 36, of Chico, charging him with nine counts of production of child pornography and one count of possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between January 2013 and December 2014, Drury filmed and photographed sexually explicit images of a prepubescent child. Drury also possessed additional images of children engaged in sexually explicit conduct.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the Chico Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Drury has been in custody since he was arrested on March 23, 2015. He is scheduled to be arraigned today before U.S. Magistrate Judge Dale A. Drozd in Sacramento.
If convicted, each of the production of child pornography counts carries a maximum statutory penalty of 30 years in prison. If convicted of the possession of child pornography charge, Drury faces a maximum statutory penalty of 10 years in prison. Each charge in the indictment carries a potential fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Career car thief sentenced to federal prisonRead the Press Release
20 high-end vehicles with a value of over $400,000 stolen
PRESS RELEASE
INDIANAPOLIS- United States Attorney Josh J. Minkler announced today an Indianapolis man was sentenced to federal prison for his role in a series of automobile and truck thefts. George Roby, 68, Indianapolis, was sentenced to 110 months (over nine years) by U. S. District Judge Sarah Evans Barker. He was convicted after a four-day jury trial in February 2015.
“According to national statistics, a vehicle is stolen in the United States every 44 seconds,” said Minkler. “Car thieves drive up the price of vehicles and the insurance we pay every day. Mr. Robey and his associates will think better of stealing cars in the future.”
Robey is a career car thief whose first conviction for car theft dates back to 1988. Beginning in 2009, and lasting until 2011, George Robey, would utilize a computer and other counterfeiting equipment to create fake vehicle identification stickers, sales documents, titles, and temporary license plates. Robey would use the documents to alter the vehicle identification numbers on stolen cars and sell them, thereby making it harder for police to identify the vehicles as stolen.
Through these acts, Robey and his associates stole nearly 20 vehicles with a value of over $400,000. These vehicles included multiple performance cars such as Chevrolet Camaros, Ford Mustangs, and Cadillac CTSs.
This case was jointly investigated by the United States Secret Service, Indiana State Police, Carmel Police Department, and the Department of Motor Vehicles for Washington D.C. and North Carolina.
According to Assistant United States Attorneys Bradley Shepard and Nicholas Linder who prosecuted this case for the government, Robey must serve three years of supervised release following his sentence.