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25 June 2015
Minkler sworn in as United States AttorneyRead the Press Release
INDIANAPOLIS - Today, United States District Court Chief Judge Richard L. Young, swore Josh Minkler in as the United States Attorney for the Southern District of Indiana. Under federal law, the United States District Court for the Southern District of Indiana appointed Minkler to fill the position effective immediately.
Minkler previously served as Acting United States Attorney, First Assistant U.S. Attorney and Drug and Violent Crime Unit Chief. Minkler has been an Assistant U.S. Attorney since 1994.
“I would like to thank the judges of the United States District Court for their faith in asking me to lead the United States Attorney’s Office,” said Minkler. “I am grateful for the opportunity to work for the public as our office goes forward to justly enforce the laws that unite us as a great nation.”
A native of Muncie, Indiana, Mr. Minkler graduated Muncie Northside High School in 1981, Wabash College in 1985 and Indiana University School of Law, Bloomington 1988.
“The Indiana Federal Community Defender congratulates Josh Minkler on being named United States Attorney for the Southern District of Indiana,” said Chief Federal Defender Monica Foster. “The Court could not have selected a smarter, more experienced, and fair person to lead the Office of the United States Attorney. Though we are foes in the courtroom, we have the utmost respect for his abilities and his character. He brings to the office a level of experience that will serve the citizens of the Southern District well in the struggle for justice.”
FBI Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Division congratulates Mr. Minkler on his appointment and looks forward to continuing their professional partnership. “The Southern District of Indiana is fortunate to have a United States Attorney of such a high caliber serving its citizens. It has been a distinct pleasure working alongside Josh and collaborating on the priorities of the Department of Justice.”
“Josh Minkler is an experienced and seasoned prosecutor who will make a fine United States Attorney,” said Special Agent in Charge of the DEA in Chicago, Dennis Wichern. “On behalf of all the employees of the DEA, we wish he and his staff all the best. The Office is in good hands under his guidance.”
Milwaukee Man Pleads Guilty to Federal Gun Charges as an Armed Career CriminalRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on June 24, 2015, Justin King Nalls (age: 27) of Milwaukee, Wisconsin, appeared in federal court in Green Bay and pleaded guilty to a single count of being a felon in possession of a firearm. Based on his prior record of violent felonies, Nalls qualifies as an Armed Career Criminal under federal law.
Nalls was arrested in October of 2014 for his role in the armed robbery of a Kewaunee County tavern. Further investigation linked Nalls to an additional armed robbery in Sheboygan County and a violent robbery in the City of Milwaukee. Nalls and a female associate placed ads offering prostitution services online, and then robbed at gunpoint those who responded to the advertisements. A search of Nalls’ residence and vehicle yielded a loaded .44 revolver and ammunition for a .357 caliber firearm, both of which are illegal for Nalls or any felon to possess.
Based on two previous armed robbery convictions in 2005, and a burglary conviction in 2009, Nalls falls under the Armed Career Criminal Act which requires that he serve not less than 15 years and up to a lifetime in prison. He is scheduled to be sentenced on September 14, 2015. He remains incarcerated pending that hearing.
The case was investigated by the Kewaunee County Sheriff’s Department, the City of Kewaunee Police Department, the Kewaunee County District Attorney’s Office, the Wisconsin Department of Justice - Division of Criminal Investigation, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). This case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
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Miami Gardens Resident Pleads Guilty in Stolen Identity Tax Refund Fraud Scheme Involving Identities from the Florida Department of Children and Families DatabaseRead the Press Release
A Miami Gardens resident pled guilty today in a stolen identity tax refund fraud scheme involving personal identification information taken from the State of Florida Department of Children and Families database.
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 Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Kyron Jonathan Nedd, 22, of Miami Gardens, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A(a)(1).
According to court documents, between February 1, 2014, and July 18, 2014, a total of 379 fraudulent federal income tax returns, for tax year 2013, were filed with the IRS from Nedd’s residence in Miami Gardens. The returns claimed $843,295 in tax refunds. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.
Court documents state that on February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (PII) - names, dates of birth and social security numbers - of hundreds of individuals. Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (DCF) database. IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts were used in fraudulent returns filed from Nedd’s residence.
According to court documents, federal law enforcement agents interviewed Nedd after serving the federal search warrant. Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and prepared without the taxpayers’ permission.
Nedd is scheduled to be sentenced on September 2, 2015 at 8:30 a.m., before the Honorable Robert N. Scola, Jr., United States District Judge. At sentencing, the defendant faces a maximum of ten years of imprisonment for the access devices charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
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
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS RAMIREZ-VASQUEZ, age 38, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about March 29, 2015, RAMIREZ-VASQUEZ was found in the United States after having been officially deported and removed on or about April 17, 2000.
RAMIREZ-VASQUEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for August 6, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Carlos Ramirez-Vasquez Factual Basis.pdf (48.01 KB)
Man Arrested, Charged with Possession of Firearm by Convicted FelonRead the Press Release
St. Thomas, USVI – Dwayne Fahie, 26, made his initial appearance in District Court today before U.S. Magistrate Judge Ruth Miller after his arrest for Possession of a Firearm by a Convicted Felon and Possession of an Unlicensed Firearm, United States Attorney Ronald W. Sharpe announced. Fahie was released after posting a $50,000 property bond.
On June 4, 2015, a federal grand jury returned a three-count indictment against Fahie, charging him with two counts of Possession of a Firearm by a Convicted Felon and one count of Possession of an Unlicensed Firearm. According to the indictment, Fahie was found in possession of a firearm after he was convicted in the Superior Court of reckless endangerment. If convicted of Possession of a Firearm by a Convicted Felon under federal law, Fahie faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of Possession of a Firearm by a Convicted Felon under territorial law, he faces a maximum sentence of 20 years in prison and a $25,000 fine. For Possession of an Unlicensed Firearm, Fahie faces a maximum sentence of five years in prison and a $15,000 fine.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty. This case is the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo- protte.
Leaders of Brownsville, Brooklyn-Based Gang Convicted of Racketeering, Murder in Aid of Racketeering, and Other ChargesRead the Press Release
Earlier today, following approximately eight weeks of trial, a federal jury in Brooklyn, New York, returned guilty verdicts against Paul Rivera and Michael Garrett on charges of racketeering, murder, sex trafficking, narcotics trafficking, money laundering, and witness tampering. These charges arose out of the defendants’ participation in and leadership of a gang known as “Together Forever” or the rap group “TF Mafia” (also referred to as “TF”) that for many years engaged in narcotics trafficking, sex trafficking, gang activity, and related violence in areas including the Brownsville neighborhood of Brooklyn, New York, an area victimized by a high rate of gang and drug related violent crime. When sentenced by United States District Judge Kiyo A. Matsumoto, both defendants face a mandatory minimum sentence of life imprisonment on the most serious charge.
The verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“With this verdict, the jury sent a message that our community will not stand for those who prey upon young, vulnerable girls for their own financial gain and supply our neighborhoods with dangerous narcotics,” stated Acting United States Attorney Currie. “We also hope that this verdict brings some closure to the family of Robert Barber, who was gunned down by these defendants in their effort to protect their illegal enterprise.” Mr. Currie extended his thanks to the Internal Revenue Service – Criminal Investigation, New York City Police Department, the Pennsylvania State Police, the New Jersey State Police, and the United States Attorney’s Office for the Middle District of Pennsylvania.
As proven at trial, the defendants’ were leaders of TF Mafia, a Brooklyn-based rap group, and Together Forever, a group that has operated in various neighborhoods of Brooklyn since the 1980s. The gang had members engaged in criminal activity in Brooklyn as well as in other parts of New York and in Pennsylvania. In connection with their leadership of TF, Rivera and Garrett plotted to kill — and killed — Robert Barber in the summer of 2011 because they perceived Barber, who was a member of a rival gang, as a threat to TF’s control of narcotics sales in Brownsville. On the evening of August 22, 2011, Rivera observed Barber walking outside the tattoo shop run by Rivera, which was located at 361 Sutter Avenue in Brownsville. Rivera took a firearm that had been supplied by Garrett, stood in the entrance to the tattoo shop, and shot Barber once, killing him. Garrett subsequently provided Rivera with payment, in the form of money and heroin, for the murder.
The jury also found the defendants guilty of interstate prostitution and sex trafficking, including sex trafficking by force, fraud, or coercion, and sex trafficking of one or more minors, which activities were committed as part of TF’s illegal activities. At trial, two victims testified about their involvement with TF, including one victim who became involved with TF when she was 14 years old, and another who testified that she began working as a prostitute for the defendants shortly after she met them, which, as proven at trial, was when she was 15 years old.
The jury found also found the defendants guilty of narcotics trafficking conspiracy, involving cocaine base, heroin, cocaine, and marijuana, and firearms offenses, including use of a firearm to cause the death of Robert Barber. Garrett was also convicted on money laundering, and Rivera was convicted of witness tampering and attempted obstruction of justice related to his efforts to convince a witness to cease cooperating with the government.
The government’s case is being prosecuted by Assistant United States Attorneys Taryn Merkl, Alixandra Smith, and Michael Robotti.
The Defendants:
PAUL RIVERA
Age: 48
Brooklyn, NY
MICHAEL GARRETT
Age: 40
Brooklyn, NY
E.D.N.Y. Docket No. 13-149 (KAM)
Lawrence Man Sentenced on Federal Drug ChargesRead the Press Release
CONCORD, N.H. – Leonardo Almonte-Ramirez, 31, of Lawrence, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 33 months in prison for distributing cocaine, and possessing cocaine, crack cocaine, and heroin with the intent to distribute it, announced Acting United States Attorney Donald Feith.
In May 2013, detectives from the Nashua Police Department conducted a controlled purchase of cocaine from the defendant. During a subsequent search of the vehicle from which that transaction occurred, officers located a sophisticated electronic hidden compartment concealing quantities of cocaine, crack cocaine, and heroin; $2,008 in cash; and the social security card and permanent resident card of Leonardo Almonte-Ramirez.
This prosecution arose from an investigation by the police departments of Nashua and Hudson, New Hampshire, in conjunction with the Drug Enforcement Agency and the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Nick Abramson.
Lafayette man pleads guilty to possessing stolen firearmRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man pleaded guilty Wednesday to possessing a stolen handgun.
Cordera Dean Felix, 27, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to one count of possession of a stolen firearm. According to evidence presented at the guilty plea, Lafayette Police arrested Felix on June 27, 2014, near the 900 block of East Simcoe Street on an active warrant. Officers recovered a Glock model 36, .45 caliber pistol from Felix. He stated that he was approached by juveniles who showed him a bag containing approximately eight handguns. He purchased the .45 caliber pistol from them. The handgun was reported stolen from Dave’s Gun Shop in Lafayette.
Felix faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Dominic A. Rossetti is prosecuting the case.
Kenmare, ND, Native Sentence for Attempted Sexual Exploitation of a MinorRead the Press Release
BISMARCK - Acting U. S. Attorney Christopher C. Myers announced that on June 25, 2015, Vernon Brekhus, 36, Kenmare, ND, was sentenced before Daniel L. Hovland to serve 45 years in prison for one count of Sexual Exploitation of a Minor, and 20 years in prison for one count of Possession of Materials Involving the Sexual Exploitation of a Minor, with the two terms of confinement to be run concurrent. Judge Hovland further sentenced Brekhus to a lifetime of supervised release and to also pay $1,500 in restitution, in conjunction with a $200 special assessment to the Department of Justice’s Crime Victims’ Fund.
This case came to the attention of law enforcement when a detective working in an undercover capacity came into contact with Brekhus while working online in an area of the Internet known for incest and sexual exploitation of children. Brekhus later contacted the undercover officer to arrange a Skype video conversation. A search warrant was issued for Brekhus’ residence where a laptop computer, a personal computer, thumb drives, as well as other electronic devices were seized. Upon forensic examination and analysis of the electronic devices indicated, there were 793 pictures and 16 videos containing child pornography.
Judge Hovland also directed that Brekhus must register as a sex offender for the rest of his life.
This case was investigated by the Federal Bureau of Investigation (FBI) and the North Dakota Bureau of Criminal Investigations (BCI) - Internet Crimes Against Children (ICAC) Task Force.
Assistant U. S. Attorney Jennifer Puhl and Assistant U. S. Attorney Gary Delorme prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children (ICAC) Task Force, help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Sues Four Michigan Hospital Systems for Unlawfully Agreeing to Limit Marketing for Competing Healthcare ServicesRead the Press Release
The Department of Justice today sued four Michigan hospital systems that for years unlawfully agreed to allocate territories for marketing, depriving consumers and physicians of important information about competing providers and other benefits of unfettered competition. Three of the systems – Hillsdale Community Health Center, Community Health Center of Branch County, Michigan, and ProMedica Health System Inc. – agreed to settle the charges. The department will continue to litigate against a fourth, W.A. Foote Memorial Hospital, doing business as Allegiance Health, to prohibit agreements that unlawfully allocate territories for marketing of competing healthcare services.
“These hospitals conspired to deprive consumers and physicians of important health information and education,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Instead of putting patients first, these hospitals secretly agreed not to compete. This action will terminate the agreements limiting marketing and make sure the citizens of south-central Michigan will have access to the facts they need to make informed healthcare choices.”
As alleged in the complaint, hospitals compete to attract patients by advertising, direct mailings to patients, outreach to physicians and employers, conducting health fairs and offering free health screenings. Hillsdale, Allegiance, Branch and ProMedica’s Bixby and Herrick Hospitals – the only hospitals in their respective counties – each competed through marketing to attract patients. The complaint alleges that Hillsdale curtailed this competition for years by entering into agreements with Allegiance, Branch and ProMedica to limit the marketing of competing healthcare services. According to the complaint, the defendants’ agreements deprived patients and physicians of information needed to make informed healthcare decisions. Patients in Hillsdale County, Michigan, were also prevented from receiving free medical services – such as health screenings and physician seminars – that they would have received from Allegiance in the absence of its unlawful agreement with Hillsdale.
The Antitrust Division, joined by the Michigan Attorney General’s Office, filed the civil antitrust lawsuit in the U.S. District Court for the Eastern District of Michigan, while simultaneously filing a proposed settlement that, if approved by the court, would resolve the lawsuit with respect to the three settling systems.
The proposed settlement prohibits Hillsdale, Branch and ProMedica from agreeing with other healthcare providers, including hospitals and physicians, to limit marketing or to divide any geographic market or territory. The proposed settlement also prohibits communications among the defendants about their marketing activities, subject to limited exceptions. The settling hospitals will also implement compliance measures tailored to prevent the recurrence of these types of anticompetitive practices in the future.
Hillsdale is a Michigan corporation headquartered in Hillsdale, Michigan, with a general acute-care hospital located in Hillsdale County, Michigan, that has 47 beds and a medical staff of over 90 physicians.
Allegiance is a Michigan corporation headquartered in Jackson, Michigan, with a general acute-care hospital located in Jackson County, Michigan, that has 480 beds and a medical staff of over 400 physicians.
Branch is a Michigan corporation headquartered in Coldwater, Michigan, with a general acute-care hospital located in Branch County, Michigan, that has 87 beds and a medical staff of over 100 physicians.
ProMedica is an Ohio corporation headquartered in Toledo, Ohio, with locations in northwest Ohio and southern Michigan, including Bixby and Herrick Hospitals in Lenawee County, Michigan. Bixby is a general acute-care hospital that has 88 beds and a medical staff of over 120 physicians. Herrick is a general acute-care hospital with 25 beds and a medical staff of over 75 physicians.
The proposed settlement with Hillsdale, Branch and ProMedica, along with the department’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Hillsdale Complaint.pdf (121.83 KB)
Hillsdale Stipulation and Order.pdf (228.83 KB)
Hillsdale CIS.pdf (63.91 KB)
Justice Department Settles Immigration-Related Discrimination Claim Against Abercrombie & Fitch Inc.Read the Press Release
The Justice Department announced today that it reached an agreement with Abercrombie & Fitch Inc. (Abercrombie), a clothing retailer headquartered in Columbus, Ohio. The agreement resolves a complaint filed with the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), claiming that the company discriminated against a non-U.S. citizen in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that Abercrombie required a non-U.S. citizen, but not similarly-situated U.S. citizens, to produce specific documentary proof of her immigration status for the purpose of verifying her employment eligibility. Specifically, the Department found that Abercrombie required the individual to present a green card. The INA’s anti-discrimination provision prohibits employers from making specific documentary demands based on citizenship status or national origin when verifying an employee’s employment eligibility.
Under the settlement agreement, Abercrombie will pay $3,661.14 in back pay to the complainant and a civil penalty to the United States; establish a back pay fund of $153, 932.00 to compensate other individuals who may have been harmed; and be subject to monitoring of its employment eligibility verification practices for two years.
“The division is committed to identifying and tearing down illegal barriers that prevent authorized workers from working,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Civil Rights Division commends Abercrombie for working with the division to resolve this matter expeditiously.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. Trial Attorney Luz V. Lopez-Ortiz and Paralegal Ryan Thompson investigated this matter.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status, or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Jury Finds Woman Guilty on Charges of Conspiracy to Distribute MethRead the Press Release
PITTSBURGH – Racquel Sanchez, who resided in Lehigh Acres, Fl., and Tucson, Az., during the last two years, was convicted at the conclusion of a federal jury trial of conspiring to distribute at least 50 grams of pure methamphetamine or at least 500 grams of a mixture containing methamphetamine, United States Attorney David J. Hickton announced today.
Sanchez, 35, was tried before United States District Court Judge David S. Cercone in Pittsburgh, Pa.
During the 4 days of trial, evidence was presented that, during July 2013, Sanchez, who was residing in Arizona at the time, agreed to supply a Cleveland dealer with 1 pound (approximately 450 grams) of pure methamphetamine. After Sanchez shipped the pure methamphetamine to Cleveland, she flew to Cleveland and accepted delivery of the methamphetamine along with the Cleveland dealer. The methamphetamine was then mixed with another substance to expand its volume and supplied to a dealer in the Pittsburgh area where it was marketed as “molly”, a term for powder ecstasy or powder MDMA.
Judge Cercone scheduled sentencing to occur on November 16, 2015, at 10:00 a.m. The law provides for a maximum total sentence of at least 10 years and up to life in prison and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office led the multi-agency investigation of this case that also included the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Moon Township Police Department, the North Fayette Police Department, the Pittsburgh Police Department, the Allegheny County Sheriff’s Office, the Pennsylvania State Police, the McKees Rocks Police Department, the Cranberry Township Police Department, the McKeesport Police Department, and the Wilkinsburg Police Department.
Jury Convicts Dayton Man of Distribution and Possession of Child PornographyRead the Press Release
DAYTON – A United States District Court jury convicted Demian Pina, 34, of Dayton, Ohio of distribution and possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigations (FBI), Troy Police Chief Charles Phelps, Dayton Police Chief Richard Biehl, and members of the Internet Crimes Against Children (ICAC) task force, announced verdict reached today, which was returned following a trial that began on May 18 before U.S. District Judge Thomas M. Rose.
In November 2010, an undercover investigator working for the Cuyahoga County, Ohio ICAC was investigating individuals sharing child pornography using peer-to-peer networks. The investigator downloaded 12 image and video files containing child pornography from a person using a particular IP address. Records from the Internet Service Provider determined that the IP addressed received service at Demian Pina’s residence. A search warrant was executed at Mr. Pina’s residence in February 2011, in which various electronic media were seized. Subsequent examination of this computer media identified that two of the desktop computers contained images of child pornography.In November 2012, another undercover investigator working for the Cuyahoga County ICAC downloaded five image files containing child pornography from a person using a different IP address on the same peer-to-peer network. This IP address also received service at Mr. Pina’s residence. On three dates in March 2013, an undercover officer working for the Troy Police Department downloaded via the peer-to-peer network seven image files containing child pornography from the IP address receiving service at Mr. Pina’s residence. A search warrant was executed at Mr. Pina’s residence in June 2013 in which various electronic media were seized. Subsequent examination of this computer media identified that a desktop computer, laptop, and an external hard drive contained images and videos of child pornography.
Mr. Pina was identified as the individual distributing child pornography on the peer-to-peer network. He was indicted in February 2014 on five counts of distribution of child pornography and two counts of possession of child pornography. On June 25, 2015, following a four day jury trial, Mr. Pina was found guilty of all seven counts.
Pina faces between 5 and up to 20 years in prison on the distribution counts and up to 10 years imprisonment on the possession counts. He has been in custody since his arrest on February 26, 2014 and is scheduled for sentencing on October 16, 2015.
U.S. Attorney Stewart commended the cooperative investigation of this case by the FBI, Troy and Dayton Police Departments, and ICAC task force members. Assistant United States Attorneys Christy L. Muncy and Alex Sistla are representing the government in this case.
Independence Man Sentenced to 15 Years for Federal Gun ViolationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC O’NEAL SELDERS, age 43, of Independence, was sentenced today after previously pleading guilty to a one-count Indictment for a federal gun violation.
U.S. District Judge Eldon E. Fallon sentenced SELDERS to 180 months incarceration, to be followed by 5 years of supervised release and a $100 special assessment.
On July 19, 2012, SELDERS – who has four prior state felony convictions – was arrested by Tangipahoa Sherriff’s Deputies for illegally possessing a .38 caliber revolver within the Eastern District of Louisiana. SELDERS was sentenced to a mandatory minimum due to his classification by federal law as an “Armed Career Criminal.”
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Houston Man Indicted After Seizure of Loaded Firearm and over 15 Kilograms of CocaineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL MENDEZ, age 51, of Houston, was charged today in a three-count Indictment alleging violations of federal drug and firearms laws. Specifically, the Indictment charges MENDEZ with: conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine hydrochloride; possession with intent to distribute over five kilograms of cocaine hydrochloride; and possession of a firearm in furtherance of a drug-trafficking offense.
According to the Indictment, on June 10, 2015, Louisiana State Police conducted a traffic stop of MENDEZ as he was driving on Interstate 12 in Tangipahoa Parish. During the stop, police discovered over fifteen kilograms of cocaine hydrochloride and a loaded 9 millimeter Glock pistol inside of the car.
If convicted of either drug offense, MENDEZ faces between ten years to life in prison, a $10,000,000 fine, and at least five years of court supervision after his release. If convicted of the gun offense, MENDEZ faces at least five years in prison, a $250,000 fine, and no more than five years of supervised release.
U.S. Attorney Polite reiterated that the 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 Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorney Brandon S. Long is responsible for the prosecution.
Michael Mendez Indictment.pdf (300.85 KB)
Hopkins County Residents Arrested and Charged in A Conspiracy to Sell “Spice”Read the Press Release
BOWLING GREEN, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the successful arrest of 13 Hopkins County, Kentucky residents charged with conspiring to distribute synthetic marijuana or “spice.”
Yesterday morning, agents with the Drug Enforcement Administration (DEA), Kentucky State Police (KSP) and Madisonville Police Department arrested the defendants who are all charged in a single count indictment that was unsealed in U.S. District Court in Bowling Green, Kentucky.
According to the indictment, between October 2013, and June 2015, defendants Christopher Ray Barnes, Jessica L. Barnes, Joshua Elias Betar, Jason Matthew Demoss, Kara Ann Green, Nicholas Andrew Hollenbach, Matthew Robert Nash, Jeremy Jay Oglesby, Paula D. Oglesby, Megan Marie Tyson, Uriah Simpson, Roger Dal Thomas, and Jackie Wayne Vincent, Jr., all from Madisonville and surrounding communities, conspired to knowingly and intentionally distribute 100 kilograms or more of synthetic marijuana or “spice,” intended for human consumption.
Further, during the manufacture of “spice,” plant material is sprayed with a chemical compound AB-PINACA, a controlled substance analogue of ADB-PINACA, a Schedule I controlled substance, not legally sold in the United States. The chemical compound is manufactured in China and sold through mail order.
The defendants made their initial appearance before Magistrate Judge H. Brent Brennenstuhl in Bowling Green, yesterday, and all but defendants Green, Tyson, Simpson and Jessica Barnes were ordered to remain in the custody of the U.S. Marshals service pending arraignments and detention hearings to held Monday, June 29, 2015 in Owensboro. Defendant Jason Demoss is in state custody.
If convicted at trial, the defendants could be sentenced to no less than 5 years and no more than 40 years in prison, fined $5,000,000 and serve a four year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Larry Fentress and is being investigated by DEA, KSP and the Madisonville Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EUELIO MARQUEZ-CHACON, age 40, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced MARQUEZ-CHACON to time served months imprisonment followed by 1 year of supervised release, and a $100 special assessment.
MARQUEZ-CHACON will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about March 4, 2015, MARQUEZ-CHACON was found in the United States after having been officially deported and removed on or about June 12, 2003.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Grand Forks Man Pleads Guilty to Possession and Receipt of Child PornographyRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on June 24, 2015, Alan Douglas Eslinger, 44, Grand Forks, North Dakota, pleaded guilty before U. S. District Judge Ralph R. Erickson to one count of Receipt of Child Pornography and three counts of Possession of Child Pornography.
This case came to the attention of law enforcement after an agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force (ICAC), discovered a computer geographically located in ND that was sharing child pornography in a peer-to-peer (P2P) network. Homeland Security Investigators traced the IP address to an industrial park located in northeast Grand Forks, ND. Working with the network administrator of the industrial park, BCI agents were able to pinpoint the specific location in the industrial park where Eslinger was operating his computer. Based upon this evidence, BCI Special Agents obtained and executed a search warrant for a garage leased by Eslinger in the industrial park. Seized as a result of the search warrant were various electronic media which contained visual depictions of child pornography.
"Crimes against children will not be tolerated,” said acting Special Agent in Charge William M. Lowder of Homeland Security Investigations (HSI), located in St. Paul, MN. “HSI will continue to work closely with our local and federal law enforcement partners to investigate those who sexually exploit our young people and ensure that these predators feel the full weight of the law.”
The maximum combined penalties for the charges is 80 years in prison, with a minimum of 5 years in count one. Chief Judge Erickson has set a sentencing hearing for September 17, 2015.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigations.
Assistant U. S. Attorney Jennifer Puhl is the prosecutor assigned to the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Gaston Man Sentenced in Counterfeit Erectily Dysfunction Medication CaseRead the Press Release
Contact Person: Dewayne Pearson (803) 929-3000
Columbia, SC - Bill Nettles, United States Attorney for the District of South Carolina, announced today that Arthur Fleming Moler, age 51, of Gaston, was sentenced to 78 months imprisonment for his role in trafficking more than five million dollars’ worth of counterfeit medications. Facts presented during the trial showed that Moler sold and shipped counterfeit goods and medications, including illegal replicas of Viagra and Cialis, from his Columbia based business, South Carolina Liquidations.
According to testimony presented during the case, United States Customs agents discovered counterfeit golf equipment being shipped from China to South Carolina Liquidations at 1215 Shop Road in Columbia, South Carolina. When investigators entered the warehouse, they discovered hundreds of counterfeit designer handbags, sunglasses, electronic equipment and over 230,000 counterfeit erectile dysfunction pills.
The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement, the South Carolina Secretary of State’s Office and the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Four Central Valley Men Indicted on Cocaine Trafficking ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Raymond Slaton, 43, of Merced; Sidney Allen, 48, of Merced; Donnell Mays, 39, of Turlock; and Omar Lopez, 22, of Turlock, charging them with federal drug trafficking offenses United States Attorney Benjamin B. Wagner announced.
According to court documents, on May 20, 2015, Mays and Lopez went to Allen’s residence where they delivered a half kilogram of cocaine to Allen and Slaton. Mays and Lopez then left the residence in a car in possession of another half kilogram of cocaine. As law enforcement officers attempted to stop Lopez’s car for a vehicle code violation, Lopez failed to yield. While Mays and Lopez were pursued by patrol units from the Merced Police Department, a bag containing the half kilogram of cocaine was thrown from their car. After a high‑speed chase, Mays and Lopez were arrested.
This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Justice, the Merced Police Department, the California Highway Patrol, the Merced Gang Task Force, and the Merced Narcotic Task Force. Assistant United States Attorneys Kimberly A. Sanchez and Daniel Griffin are prosecuting the case.
If convicted, Slaton, Mays and Allen face a maximum statutory penalty of life in prison, a mandatory minimum of 10 years in prison, and a $10 million fine. Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Owner of Ohio Gambling Supplies Store Sentenced to Prison for Running Illegal Gambling Operation, Tax Fraud and Witness TamperingRead the Press Release
The former co-owner of R&J Partnership Ltd., doing business as Reece’s Las Vegas Supply (RLVS), a gambling supplies store located in Dayton, Ohio, was sentenced today to serve two and one-half years in prison, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Reece Powers II, 76, was sentenced today to serve 30 months in prison following his guilty plea on March 31 to multiple federal offenses, including conspiracy to operate an illegal gambling business, operating an illegal gambling business, conspiracy to defraud the Internal Revenue Service (IRS) and witness tampering. Powers was also sentenced to three years of supervised release following his prison sentence and ordered to pay a $400 special assessment, with restitution to be determined at a later date. The charges were part of an indictment unsealed on Sept. 26, 2014. The other defendants charged in that indictment and in related cases, including Douglas A. Sanders, Jason S. Pulaski, Michael E. Gedeon, Jenifer Williams, Walter F. Dyer, Virgil D. Rockwell and Allen G. Beck, were each sentenced yesterday and today after pleading guilty to illegal gambling, obstruction of justice and tax fraud offenses.
According to court documents and statements made in court, between February 2004 and May 2011, Powers oversaw the recruitment of local non-profit charitable organizations to sponsor poker fundraisers that included casino-like card games, such as Texas Hold’em tournaments. Powers entered into arrangements with the charitable organizations to control all of the funds generated from the poker fundraisers.
These poker fundraisers were exempted from the general prohibition against games of chance under then-existing Ohio laws, subject to the requirement that all the funds received from the games of chance, after deducting only prizes paid out and necessary expenses sanctioned under law, be transferred to the charitable organization for their sole benefit and use. Powers, with the help of his co-conspirators, took a portion of the money generated from the poker fundraisers and used those funds to pay the events’ workers, among other things, in violation of Ohio law and federal gambling laws.
Powers provided false accountings to the charitable organizations of the funds received from the events and skimmed a portion of the money. Powers either supervised or personally distributed illegal cash payments to his co-conspirators and employees who worked as card dealers, cashiers, chip sellers, pit bosses, tournament directors and managers. Powers and his co-conspirators also falsely held themselves out as uncompensated volunteers at the poker fundraisers.
In 2009, Powers and Beck, a former business broker, conspired to defraud the IRS in attempting to sell RLVS. Beck previously pleaded guilty to a conspiracy charge. In Powers’ effort to evade taxes, Powers and Beck arranged the sale to make it appear as if the business and its associated real estate was sold for an amount less than its actual sale price.
In February 2010, Powers also tampered with a witness testifying before a federal grand jury by instructing the witness to testify falsely that the witness and other RLVS staffers did not get paid for working at the poker fundraisers. Pulaski, Gedeon, Williams and Dyer each pleaded guilty to committing obstruction of justice by falsely testifying before a federal grand jury that they were uncompensated volunteers at the poker fundraisers.
In addition to Powers’ sentence, U.S. District Judge Timothy Black of the Southern District of Ohio sentenced the other defendants as follows:
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Sanders was sentenced to serve 12 months and one day in prison and three years of supervised release, and ordered to pay a $200 special assessment;
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Pulaski was sentenced today to serve 12 months and one day in prison and three years of supervised release, and ordered to pay a $200 special assessment;
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Gedeon was sentenced to serve one day in prison and three years of supervised release to include two months of home incarceration, and ordered to pay a $200 special assessment;
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Williams was sentenced to serve one day in prison, three years of supervised release to include six months of home incarceration and 50 hours of community service, and ordered to pay a $200 special assessment;
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Dyer was sentenced to serve one day in prison and three years of supervised release, and ordered to pay a $3,000 fine and a $300 special assessment;
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Rockwell was sentenced to three years of probation, and to pay a $1,000 fine and a $100 special assessment; and
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Beck was sentenced to three years of probation and 100 hours of community service, and ordered to pay a $500 fine and a $100 special assessment.
Acting Assistant Attorney General Ciraolo commended the special agents of the IRS-Criminal Investigation, who investigated the case, and Assistant Chief Jorge Almonte and Trial Attorneys Christopher P. O’Donnell and Austin L. Furman of the Justice Department’s Tax Division, who prosecuted the case. Ciraolo also thanked U.S. Attorney Carter M. Stewart of the Southern District of Ohio for the substantial assistance provided by his office.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found on the division’s website.
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Former Employee of Bank of the West Sentenced to Prison for Federal Embezzlement ChargesRead the Press Release
ALBUQUERQUE – Angela Giddings, 38, of Albuquerque, N.M., was sentenced today to 24 months in federal prison followed by three years of supervised release for her convictions on embezzlement by a bank employee and embezzlement from Indian tribal organizations. She also was ordered to pay $217,125.00 in restitution to the Bank.
Giddings was indicted on Dec. 16, 2014, and charged with 12 counts of embezzlement by a bank employee; six counts of embezzlement from Indian tribal organizations; and four counts of aggravated identity theft. Giddings committed these crimes in Bernalillo County, N.M., between Feb. 2, 2013, and July 18, 2014. At the time, Giddings was employed as a customer service manager for Bank of the West.
According to the indictment, Giddings embezzled funds entrusted to the bank by withdrawing and transferring funds from the accounts of customers without authorization and for her own use. Giddings’ unlawful withdraws and transfers ranged from $15,000.00 to $60,000.00. The victims of Giddings’ criminal conduct included the To’hajilee Community School Board and the Cañoncito Band of Navajos. The aggravated identity theft counts charged Giddings with using the names, addresses, and personal identifiers of individuals to commit felony offenses.
On Feb. 13, 2015, Giddings pled guilty to one count of embezzlement by a bank employee and one count of embezzlement from an Indian tribal organization. In entering the guilty plea, Giddings admitted that between Jan. 9, 2012 and July 18, 2014, she misapplied and embezzled money by making unauthorized withdrawals and transfers for her own benefit. She further admitted that on July 18, 2014, she transferred $55,000.00 from a private individual’s account and $60,000.00 from the To’hajilee Community School Board account without authorization and for her own purposes with the intent to defraud.
This case was investigated by the Albuquerque office of the FBI and the Office of Inspector General of the Federal Deposit Insurance Corporation, and was prosecuted by Assistant U.S. Attorney Jeremy Peña.
Former Chairman of International Credit Union Pleads Guilty to Wire FraudRead the Press Release
Samuel J. Cusumano Jr., 65, of Orlando, Florida, pleaded guilty yesterday afternoon to wire fraud in connection with his fraudulent solicitation of more than $17 million from 400 investors of the Swedish-registered Storehouse Credit Union. The guilty plea was announced by U.S. Attorney Pamela C. Marsh for the Northern District of Florida.
During his plea, Cusumano admitted that between 2007 and 2009, as the chairman of the board of Storehouse, he promoted the international credit union as a high yield investment opportunity through intentionally misleading presentations and materials. Cusumano fraudulently induced investors to transfer monies to investment accounts under Cusumano’s control by misrepresenting the rates of return being generated by the business. He falsely claimed that Storehouse used professional currency traders when, in fact, Cusumano personally executed all trades from his home, investing primarily in the Foreign Currency Exchange Market. Although the business was actually losing money, Cusumano created fraudulent financial statements to convince investors that Storehouse was reaching or exceeding the high rates of return that Cusumano had promised them. When investors discovered that they were unable to withdraw their funds due to trading losses, a financial audit was conducted. The audit revealed that investor funds had been depleted, that earnings had been overstated and that Cusumano had used a large portion of the investors’ funds to pay personal expenses. Investors resided in the United States, including in the Northern District of Florida, Canada, Great Britain and Australia.
Sentencing is scheduled for Sept. 22, 2015, at 12:30 p.m. at the U.S. Courthouse in Gainesville, Florida. Cusumano faces a maximum of 20 years imprisonment.
The charges result from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Gregory P. McMahon.
The U.S. Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Chairman of International Credit Union Pleads Guilty to Wire FraudRead the Press Release
GAINESVILLE, FLORIDA – Samuel J. Cusumano Jr., 65, of Orlando, Florida, pled guilty yesterday afternoon to wire fraud in connection with his fraudulent solicitation of more than $17,000,000 from 400 investors of the Swedish-registered Storehouse Credit Union. The guilty plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
During his plea, Cusumano admitted that, between 2007 and 2009, as the chairman of the board of Storehouse, he promoted the international credit union as a high yield investment opportunity through intentionally misleading presentations and materials. Cusumano fraudulently induced investors to transfer monies to investment accounts under Cusumano’s control by misrepresenting the rates of return being generated by the business. He falsely claimed that Storehouse used professional currency traders when, in fact, Cusumano personally executed all trades from his home, investing primarily in the Foreign Currency Exchange Market. Although the business was actually losing money, Cusumano created fraudulent financial statements to convince investors that Storehouse was reaching or exceeding the high rates of return that Cusumano had promised them. When investors discovered that they were unable to withdraw their funds due to trading losses, a financial audit was conducted. The audit revealed that investor funds had been depleted, that earnings had been overstated, and that Cusumano had used a large portion of the investors’ funds to pay personal expenses. Investors resided in the United States, including in the Northern District of Florida, Canada, Great Britain, and Australia.
Sentencing is scheduled for September 22, 2015, at 12:30 p.m. at the U.S. Courthouse in Gainesville. Cusumano faces a maximum of 20 years imprisonment.
The charges result from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant United States Attorney Gregory P. McMahon.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Former Amtrak Police Officer Pleads Guilty in Manhattan Federal Court to Embezzlement of Union FundsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that ERIC GIVENS, a former police officer with the National Railroad Passenger Corporation (“Amtrak”), and the former treasurer of the national union for Amtrak police officers, pled guilty yesterday in Manhattan federal court to embezzlement of union funds. GIVENS, who was arrested last summer, entered his plea before U.S. District Judge Analisa Torres.
According to the Complaint, Indictment, and plea proceeding:
At the time of his arrest, GIVENS had been employed as a police officer with Amtrak since May 1997, and was most recently assigned to Penn Station, in New York, New York. GIVENS served as the elected treasurer of the Amtrak Police Lodge 189 Labor Committee (the “Labor Committee”), the national union for Amtrak police officers, from 2003 through January 2010. During the same period, and continuing until November 2013, GIVENS also served as the elected treasurer of Amtrak Police Lodge 189 Inc. (the “Lodge”), a fraternal organization affiliated with the Labor Committee.
Starting in at least 2008, GIVENS improperly took more than $100,000 in total from the Labor Committee and Lodge by fraudulently charging personal expenses to the Labor Committee and Lodge and by withdrawing cash for his own purposes, and took steps to hide what he had done. During this period, GIVENS used the debit card of the Labor Committee to pay for, among other things, gasoline and food, and used the debit card of the Lodge to pay for, among other things, travel, hotels in multiple cities, and entertainment in New York and New Jersey. GIVENS also withdrew thousands of dollars in cash from Labor Committee and Lodge bank accounts.
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GIVENS, 52, of East Stroudsburg, Pennsylvania, pled guilty to embezzling union funds. He faces a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for September 24, 2015, at 4:00 p.m., before U.S. District Judge Analisa Torres.
Mr. Bharara praised the outstanding work of the U.S. Department of Labor’s Office of Labor-Management Standards and its Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations. Mr. Bharara also thanked the Amtrak Police Department’s Office of Internal Affairs for its assistance.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.For-profit Education Company to Pay $13 Million to Resolve Several Cases Alleging Submission of False Claims for Federal Student AidRead the Press Release
WASHINGTON – Education Affiliates (EA), a for-profit education company based in White Marsh, Maryland, has agreed to pay $13 million to the United States to resolve allegations that it violated the False Claims Act by submitting false claims to the Department of Education for federal student aid for students enrolled in its programs. EA operates 50 campuses in the United States under various trade names, including All State Career, Fortis Institute, Fortis College, Tri-State Business Institute Inc., Technical Career Institute Inc., Capps College Inc., Driveco CDL Learning Center, Denver School of Nursing and Saint Paul’s School of Nursing, which provide post-secondary education training programs in several professions in the states of Alabama, Florida, Maryland, Ohio and Texas.
“Today’s settlement is an excellent example of cooperation among multiple offices of the federal government to achieve a result that protects federal student aid funding and the interests of individual students,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Schools have an obligation to live up to their commitment to the government and their students when they accept federal student aid funds.”
The government alleged that employees at EA’s All State Career campus in Baltimore altered admissions test results so as to admit unqualified students, created false or fraudulent high school diplomas and falsified students’ federal aid applications, and that multiple EA schools referred prospective students to “diploma mills” to obtain invalid online high school diplomas. These allegations also led to criminal convictions of two All State Careers admission representatives, Barry Sugarman and Jesse Moore, and a test proctor, Jacqueline Caldwell.
“Students who apply for federal financial aid to attend trade and professional schools are required to show that they have the necessary skills to complete the educational program and work in the field,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland. “This settlement resolves the government's allegations that Education Affiliates defrauded the government by changing students' test scores and enrolling students with invalid diploma mill high school ‘diplomas’ ordered online.”
“The various cases that were settled here include numerous allegations of predatory conduct that victimized students and bilked taxpayers,” said Under Secretary Ted Mitchell of the U.S. Department of Education. “In particular, the settlement provides for repayment of $1.9 million in liabilities ordered by Secretary of Education Arne Duncan that resulted from EA awarding federal financial aid to students at its Fortis-Miami campus based on invalid high school credentials issued by a diploma mill. Secretary Duncan made clear that such abusive behavior would not be tolerated, and we will continue to work with the Justice Department and other federal agencies to ensure that postsecondary institutions face consequences when they violate the law.”
The settlement agreement also resolves allegations related to EA schools in Birmingham, Alabama, Houston and Cincinnati, including violations of the ban on incentive compensation for enrollment personnel, misrepresentations of graduation and job placement rates, alteration of attendance records and enrollment of unqualified students.
“Using fake high school diplomas is a particularly insidious abuse of the federal student aid system,” said Inspector General Kathleen Tighe of the U.S. Department of Education’s Office of Inspector General (OIG). “Students received only a worthless piece of paper.” Tighe commended the efforts of OIG staff and Department of Justice attorneys, whose outstanding investigative work led to this significant settlement.
The settlement resolves five lawsuits filed under the whistleblower provisions of the False Claims Act, which permit private citizens to sue on behalf of the United States and share in the recovery. As part of this resolution, the five whistleblowers will receive payments totaling approximately $1.8 million.
The settlements were the result of a coordinated effort by the U.S. Attorneys’ Offices of the District of Maryland, the Southern District of Texas, the Northern District of Alabama, Southern District of Ohio and the Middle District of Tennessee, as well as the Civil Division’s Commercial Litigation Branch, and the Department of Education and its OIG.
The cases are captioned United States ex rel. Roman v. All State Career, Inc. and Education Affiliates, Inc.,Civil Case No. JKB-10-1730 (D.Md.); United States ex rel. Thomas v. Education Affiliates, Inc., Civil Case No. JKB-14-332 (D.Md.); United States ex rel. Andrews v. Education Affiliates, Inc., et al., Civil Case No. H-13-2366 (S.D. Tex.); United States ex rel. Atkins, et al. v. Fortis Institute and Education Affiliates, LLC, Civil Case No. CV-14-1107-S (N.D. Ala.); and United States ex rel. McArthur, Gruff & Associates LLC v. Education Affiliates, Inc., Civil Case No. 1:14-CV-977 (S.D. Oh.). The False Claims Act claims resolved by the settlement are allegations only, and there has been no determination of liability.
Folk Nation/Gangster Disciples Gang Member Receives Life Sentences for Federal Sex Trafficking ViolationsRead the Press Release
In El Paso today, Folk Nation/Gangster Disciples member Richard Gray received three concurrent life sentences for federal sex trafficking violations announced Acting United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
This morning, United States District Judge Philip R. Martinez sentenced Gray to life in federal prison for conspiracy to commit sex trafficking of persons; sex trafficking by force, fraud and coercion; and, sex trafficking of children. Judge Martinez also sentenced Gray to the statutory maximum ten years in federal prison for transportation for prostitution.
This afternoon, Judge Martinez sentenced 26-year-old co-defendant Deion Lockhart to three concurrent terms of 300 months in federal prison followed by ten years of supervised release for conspiracy to commit sex trafficking of persons; sex trafficking by force, fraud and coercion; and, aiding and abetting sex trafficking of children.
On January 16, 2015, jurors returned guilty verdicts against Gray and Lockhart plus two other gang members: 24-year-old Emmanual Lockhart and 29–year-old former El Paso County juvenile probation officer Timothy McCullouch, Jr. Jurors convicted Lockhart and McCullouch of one count of conspiracy to commit sex trafficking of persons. Jurors also convicted McCullouch of one count of sex trafficking of children.
Testimony during trial revealed that between May 2012 and March 2013, the defendants were involved in the forced prostitution of juveniles and adults by the Folk Nation/Gangster Disciples street gang. The defendants used a combination of force, fraud, and coercion to compel their victims to engage in sexual activities for money in El Paso; Killeen, TX; Albuquerque, NM; Las Vegas, NV; and, in Colorado.
Emmanual Lockhart is scheduled for sentencing tomorrow morning at 8:00am in front of Judge Martinez. McCullouch is scheduled to be sentenced at 8:30am on Monday, June 29, 2015. Both face up to life in federal prison.
This investigation was conducted by the ACTeam (Anti-Trafficking Coordination Team) comprised of personnel from Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), and U.S. Department of Labor together with the El Paso Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorneys Rifian Newaz and Robert Almonte are prosecuting these defendants on behalf of the Government.
Florida Man Convicted of Sex Crimes Against Escondido ChildrenRead the Press Release
SAN DIEGO – Tony McLeod of Tampa, Florida, was convicted by a federal jury this afternoon of multiple counts of sexual crimes against two minors following an eight-day trial before U.S. District Judge Janis L. Sammartino.
A jury deliberated for less than two hours and found McLeod guilty of seven counts of sexual exploitation of a child, one count of attempted sexual exploitation of a child, one count of travel with intent to engage in illicit sexual conduct, and one count of transportation of a minor with intent to engage in criminal sexual activity as to a 14-year-old victim, and one count of attempted sexual exploitation of a child as to a 15-year-old victim. McLeod has been in custody since his arrest in Tampa, Florida in June 2013.
Sentencing is scheduled for September 11, 2015 at 9:00 a.m.
According to evidence presented to the jury, in spring 2013, McLeod struck up a friendship with the minor victims through on-line gaming. These friendships spilled over into phone calls, texts, and video chats between McLeod and the minors in which they discussed their personal lives, including the fact that both minors attended middle school.
Around May of 2013, McLeod’s relationships with the minors turned sexual in nature. The jury found that McLeod engaged in sexual behavior with both minors. Some of this behavior included masturbation and the exchange of sexually explicit photographs and videos.
Both victims testified against McLeod during the trial.
The 14-year-old’s family learned of the illicit relationship, confiscated the minor’s phone and reported the matter to local authorities. In June 2013, McLeod traveled from where he lived in Tampa, Florida to Escondido, California in order to meet up with the child. McLeod picked up the child at school before the end of the school day and took the child to Los Angeles International Airport.
According to testimony at trial, McLeod purchased an airline ticket for the 14-year-old under an alias and they flew to Tampa, Florida. In the meantime, the family reported the minor as missing to Escondido Police Department. The Escondido Police Department tracked down McLeod’s whereabouts and informed the Tampa Police Department that McLeod and the victim (under an alias) were on a flight to Tampa. On arrival of the flight, McLeod was arrested and taken into custody.
McLeod faces a mandatory minimum sentence of 15 years and up to 30 years in prison for each of the sexual exploitation and attempted sexual exploitation counts, a mandatory minimum sentence of 10 years up to life imprisonment for the transportation of a minor for the purpose of engaging in criminal sexual activity count, and a maximum of 30 years for the travel with intent to engage in illicit sexual conduct count.
McLeod’s arrest and prosecution was the result of coordination between multiple federal and state agencies in both San Diego, California and Tampa, Florida. The U.S. Attorney’s Office commends law enforcement from the FBI, Escondido Police Department, and Tampa Police Department who worked tirelessly to collect and preserve evidence as to numerous electronic devices and interview witnesses in order to bring McLeod to justice.
The U.S. Attorney’s Office appreciates the San Diego District Attorney’s Office, the Florida State’s Attorney’s Office, and the U.S. Attorney’s Office for the Middle District of Florida for their involvement in the case at the outset.
DEFENDANT Case Number: 13CR2297-JLS Tony Lee McLeod Age: 38 Tampa, Florida CHARGESTitle 18, United States Code, Section 2221(a) and (e) – Sexual Exploitation of a Child
LEAD INVESTIGATIVE AGENCY San Diego FBI INVESTIGATIVE AGENCIES Escondido Police Department
Title 18, United States Code, Section 2251(a) and (e) – Attempted Sexual Exploitation of a Child
Title 18, United States Code, Section 2423(b) – Travel with Intent to Engage in Illicit Sexual Conduct
Title 18, United States Code, Section 2423(a) – Transportation of a Minor with the Purpose of Engaging in Criminal Sexual Activity
Tampa Police Department
San Diego Regional Computer Forensics Laboratory
San Diego District Attorney’s Office
San Diego Internet Crimes Against Children Task Force
San Diego Sheriff’s Department
Tampa FBI
United States Marshal’s Service Task Force (Tampa)
Tampa International Airport Police
Florida State’s Attorney’s Office
US Attorney’s Office for the Middle District of FloridaFargo Man Pleads Guilty to Production of Child PornographyRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on June 24, 2015, Dewayne William Barth II, 30, Fargo, North Dakota, pled guilty before U. S. District Judge Ralph R. Erickson to one count each of Production of Child Pornography, Receipt and Distribution of Child Pornography, and Possession of Child Pornography.
This case came to the attention of law enforcement after Homeland Security Investigation Special Agents arrested an individual for production and possession of child pornography in Gatling, Tennessee. A forensic examination of the computer in Tennessee revealed that the individual was sharing child pornography with multiple persons, including Barth. Specifically, Barth produced and distributed images depicting a 3-year-old child engaged in sexually explicit conduct.
A Special Agent with the Homeland Security Investigations obtained and executed a search warrant for Barth’s email account which revealed that Barth was receiving and distributing child pornography via a yahoo email account from May 2014, continuing through October 2014. Internet Crimes Against Children (ICAC) task force members also executed a search warrant at Barth’s residence where law enforcement recovered multiple electronic devices collectively containing more than 11,000 files of child pornography. Sentencing for Barth has been tentatively set for September 16, 2015. The combined maximum penalties on the charges for which Barth pled guilty to is 60 years in prison, with a combined minimum penalty of 20 years.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, and the Fargo Police Department.
Assistant U. S. Attorney Jennifer Puhl is the prosecutor assigned to the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fargo Grocery Store Employees Plead Guilty to Defrauding Food Stamp ProgramRead the Press Release
FARGO - Acting U. S. Attorney Christopher C. Myers announced that on June 23, 2015, Lamia Ali, 46, and Abass Hassan Amedi, 50, both from Fargo, ND, pleaded guilty before U. S. District Judge Ralph R. Erickson to conspiracy to commit food stamp fraud.
From March 2011 through March 1, 2013, Ali and Amedi knowingly engaged in fraudulent transactions and purchases with Food and Nutrition Service Program (a federal government program formerly known as Food Stamp Fraud) recipients in order to obtain the monetary value of their SNAP benefits in exchange for cash in amounts less than the face value of the SNAP benefits. Ali operated Noor Al Huda, a neighborhood grocery store located in Fargo. Ali and the co-defendant, Amedi, would allow SNAP recipients to use their Electronic Benefits Transfer (EBT) cards in exchange for cash at the grocery store, a practice commonly known as “discounting” or “cash-back.” As a result of the conspiracy, Ali and Amedi caused a loss of approximately $365,058.10 to the United States Department of Agriculture. Ali and Amedi could be sentenced up to five years imprisonment, a $250,000 fine, and up to three years supervised release.
Judge Erickson has set a sentencing hearing for September 14, 2015, in U. S. District Court, Fargo, North Dakota
This case was investigated by United States Department of Agriculture-Office of Inspector General (USDA-OIG).
Assistant U. S. Attorney Jennifer Puhl is prosecuting the case.
Exeter Man Pleads Guilty to Distributing Crack Cocaine at CasinoRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sekou Lashley, age 36, of Exeter, Pennsylvania pleaded guilty today in U.S. District Court in Scranton to a federal charge of distributing crack cocaine at the Mohegan Sun Casino in Plains Township, Pennsylvania, on March 19, 2015.
According to U.S. Attorney Peter Smith, Lashley was arrested and subsequently indicted by a federal grand jury in Scranton in May. The defendant pleaded guilty before U.S. District Court Judge Malachy E. Mannion. The government filed a plea agreement which is subject to the approval of the Court.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Peter Hobart.
In this case, the maximum penalty under federal law for distributing cocaine is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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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Elbert County Felon Sentenced for Conspiring to Distribute More Than $130,000 in Methamphetamine While in PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that David Benton, age 49, of Elberton, Georgia was sentenced today to serve 227 months in Federal prison for conspiring to possess with intent to distribute methamphetamine. Mr. Benton was sentenced by the Honorable C. Ashley Royal, Untied States District Judge, in Athens, Georgia.
On October 1, 2013, Mr. Benton was sentenced to state prison for possession of methamphetamine with intent to distribute, fleeing and attempting to elude a police officer, four counts of possession of a firearm by a convicted felon, and theft by receiving stolen property. While in prison, authorities monitored Mr. Benton’s phone calls and learned that he had recruited an accomplice to dig up ammunition boxes buried in South Carolina containing methamphetamine and sell the illegal drugs. On December 7, 2013, law enforcement intercepted Mr. Benton’s accomplice, who led the police to the ammunition boxes, which contained 1.3 kilograms of methamphetamine, with a street value of approximately $130,000.00.
“Mr. Benton told his accomplice on recorded phone calls that selling drugs would make them rich,” said U.S. Attorney Michael Moore. “Instead of getting rich, Mr. Benton bought himself another twenty years in federal prison.”
The case was investigated by the Piedmont Northern Multi-Agent Narcotics Squad, the Elbert County Sheriff’s Office, the Elberton Police Department and the Anderson County Sheriff’s Office in South Carolina. Assistant United States Attorney Peter Leary prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
El Departamento de Justicia Resuelve una Queja de Discriminacion Relacionada a Inmigración en Contra de Abercrombie & FitchRead the Press Release
WASHINGTON – El Departamento de Justicia llegó a un acuerdo hoy con Abercrombie & Fitch (Abercrombie), un distribuidor de ropa internacional cuya sede se encuentra en New Albany, Ohio. El acuerdo resuelve una queja presentada a La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración (OSC por sus siglas en inglés), alegando que la compañía discriminó contra una empleada no ciudadana de los Estados Unidos en violación del Acto de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del Departamento concluyó que Abercrombie le exigió a una empleada no ciudadana de los Estados Unidos, pero no a empleados cuidadanos Estadounidenses que se encontraban en una situación similar, a que presentara pruebas documentarias específicas de su estatus migratorio con el propósito de verificar su eligibilada para trabajar. Específicamente, el Departamento concluyó que Abercrombie exigió que la empleada presentara una mica (tarjeta verde). La provisión anti-discriminatoria del INA prohíbe que los empleadores exigen documentos específicos basado en el estatus de ciudadanía u origen nacional de un empleado mientras verifican la eligibilad para trabajar del empleado.
Bajo el acuerdo, Abercrombie le pagará $3,661.14 en salario atrasado a la empleada y una multa a los Estados Unidos; establecerá un fondo de salario atrasado de $153,932.00 para compensar a otras personas que podían haber sido perjudicados; y será sujeta a monitoreo de sus practicas de verificación de eligibilidad para trabajar por dos años.
“La División esta comprometida a identificar y derrumbar las barreras ilegales que previenen a trabajadores con autorización de trabajo a trabajar,” dijo la Principal Deputada Asistente Procuradora General Vanita Gupta para la División de Derechos Civiles. “La División de Derechos Civiles elogia a Abercrombie por trabajar con la División para resolver este asunto rápidamente.”
OSC es la oficina responsable por hacer cumplir con la provisión anti-discriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por estatus de ciudadanía o de origen nacional durante la contratación, el despido, el reclutamiento o la referencia por comisión; las prácticas injustas de documentación; represalias e intimidación. Este cargo fue investigado por la abogada Luz V. Lopez-Ortiz y Ryan Thompson, ayudante de abogado.
Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva); llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva); o para registrarse para un seminario gratis ofrecido a través del internet visite www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al [email protected], o visite el sitio de Internet www.justice.gov/crt/about/osc.
Los solicitantes o empleados que consideren que fueron sujetos a diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido o el reclutamiento, deberán comunicarse a la línea dedicada a los trabajadores anteriormente citada para poderlos ayudar.
Download Abercrombie Settlement Agreement
Detroit drug dealer pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A Detroit man pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Anthony Curtis Beckley II, 34, pleaded guilty in federal court in Charleston to possessing oxycodone with the intent to distribute. Beckley admitted that on October 7, 2013, he possessed over 200 oxycodone pills that he intended to sell.
Beckley faces up to twenty years of imprisonment when he is sentenced on September 21, 2015.
The investigation was conducted by the Metro Drug Enforcement Network Team. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Des Allemands Man Charged with Mail FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK JOSEPH DURAN, age 28, a resident of Des Allemands, was charged today in a three-count Indictment with conspiracy to commit mail fraud.
According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. On August 25, 2010, DURAN submitted a fraudulent application to the GCCF claiming that he worked as a deckhand on a fishing vessel during the year 2010, before the oil spill. Documentation in support of DURAN’s claim included a falsified letter from a commercial fisherman indicating the DURAN had worked as a deckhand on his fishing vessel for a twelve month period before the spill, when in fact he had not. Based on DURAN’s fraudulent application, the GCCF mailed checks totaling $28,000 to DURAN to which he was not entitled.
If convicted, DURAN faces a maximum penalty of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment.
U.S. Attorney Polite reiterated that the 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 Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Derrick Joseph Duran Indictment.pdf (194.65 KB)
Departments of Justice, Labor and Homeland Security Announce Phase II of Anti-Trafficking Coordination Team InitiativeRead the Press Release
Phase II Will Build on Momentum of Highly Effective Phase I to Further Enhance Interagency Anti-Trafficking Efforts
The Departments of Justice, Labor (DOL) and Homeland Security (DHS) today announced the launch of Phase II of the Anti-Trafficking Coordination Team (ACTeam) Initiative aimed at streamlining federal criminal investigations and prosecutions of human trafficking offenses.
Phase II ACTeams will be convened in up to six selected districts around the country, following a competitive, nationwide, interagency selection process. The ACTeams, comprised of federal prosecutors and investigators representing multiple federal enforcement agencies, will implement a joint strategic action plan to develop high-impact federal investigations and prosecutions, vindicate the rights of human trafficking victims, bring traffickers to justice and dismantle human trafficking networks.
“Human traffickers prey on some of the most vulnerable members of our society to exploit them for labor, for sex and for servitude of all kinds,” said Attorney General Loretta E. Lynch. “Their crimes, appropriately described as modern-day slavery, have no place in a nation that has overcome the scourge of slavery. That’s why the Department of Justice is committed—and I am personally determined—to hold human traffickers accountable, provide support to trafficking survivors, and stand up for the rights and the dignity that they deserve.”
“Labor trafficking affects workers who are vulnerable to exploitation for a number of reasons, who may not know their workplace rights, and may be afraid to raise their voices,” said Secretary Thomas E. Perez of DOL. “The challenges we face as a nation and a government demand unprecedented levels of interagency collaboration. Through these ACTeams, we’re bringing our respective departments’ collective resources and expertise to bear, building a whole even greater than the sum of our individual parts. DOL will remain a vigorous and unfaltering partner during phase II. Together we can ensure workers receive the wages they’ve earned, restore victims’ basic human rights and bring traffickers to justice.”
“The ACTeam Initiative has been an important tool in our collective ability to combat sex trafficking, forced labor and domestic servitude here in the United States,” said Secretary Jeh Johnson of DHS. “This is not a problem that we can afford to ignore which is why, under a banner of shared responsibility and collaboration, the Departments of Justice, Labor and Homeland Security are recommitting ourselves to the fight against human trafficking by expanding the ACTeam Initiative. Through the unified voice of the Blue Campaign, the Department of Homeland Security will continue to combat human trafficking through the guiding philosophy that we are at our best when we work together.”
These departments collaborated to develop the ACTeam Initiative to streamline rapidly expanding human trafficking enforcement efforts, focusing on forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion. Project Safe Childhood and the Innocence Lost National Initiative continue to focus on sex trafficking of minors and sexual exploitation of minors.
Drawing together federal prosecutors and federal agents from multiple investigative agencies, ACTeams streamline coordination on the front lines of federal human trafficking investigations and prosecutions, while also enhancing collaboration between front-line enforcement efforts and national human trafficking subject matter experts in the Justice Department’s Human Trafficking Prosecution Unit, Executive Office of U.S. Attorneys and FBI Civil Rights Unit, DHS’s Immigration and Customs Enforcement-Homeland Security Investigations, DOL’s Wage and Hour Division and the Office of the Inspector General. In 2011, the Attorney General and the Secretaries of DHS and DOL announced Phase I of the ACTeam Initiative and the designation of six Phase I Pilot ACTeam sites in Atlanta; El Paso, Texas; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; and Miami, following a rigorous interagency selection process.
During the ACTeam Phase I period, Fiscal Years 2012-2013, federal human trafficking prosecutions involving forced labor, international sex trafficking and sex trafficking of adults rose by 35 percent nationwide, reflecting strong partnerships among U.S. Attorneys’ Offices, the Civil Rights Division’s Human Trafficking Prosecution Unit, federal, state and local law enforcement agencies, and non-governmental victim assistance organizations and task forces led by U.S. Attorneys’ Offices.
The ACTeams played a significant role in leading these nationwide advances. In ACTeam Districts, prosecutions of forced labor, international sex trafficking and adult sex trafficking rose even more markedly than they did nationally, due to the force-multiplier effect of interagency commitment to implementing coordinated, joint anti-trafficking strategies and due to advanced training, expertise and operational support provided to the Phase I ACTeams. Comparing federal forced labor, international sex trafficking and adult sex trafficking prosecutions during the ACTeam Phase I period of Fiscal Years 2012-2013, to the pre-Phase I period of Fiscal Years 2010-2011:
Cases filed increased by:
- 119 percent in ACTeam Districts,
- 18 percent in non-ACTeam Districts; and
- 35 percent nationwide.
Defendants charged increased by:
- 114 percent in ACTeam Districts,
- 12 percent in non-ACTeam Districts; and
- 28 percent nationwide.
Defendants convicted increased by:
- 86 percent in ACTeam Districts,
- 14 percent in non-ACTeam Districts; and
- 26 percent nationwide.
Cumberland County Man Sentenced for Illegally Importing Counterfeit Sports JerseysRead the Press Release
PHILADELPHIA - Shawn Robinson, 31, of Enola, Pennsylvania, was sentenced today to 12 months and one day in prison for a counterfeiting scheme involving sports jerseys. Robinson and his father, Neil Robinson, of Bensalem, PA, conspired to traffic in and illegally import counterfeit sports jerseys. Both pleaded guilty. In addition to the prison term, U.S. District Court Judge Eduardo Robreno ordered restitution in the amount of $30,000, forfeiture of $89,895.57 and all seized jerseys, three years of supervised release, and a $100 special assessment.
Between July of 2007 and March of 2012, Robinson imported and sold counterfeit sports jerseys that he bought from unauthorized manufacturers in China. These included baseball, football, hockey, and basketball jerseys, and each had a counterfeit trademark of the sports league on the jersey. Robinson imported more than 8,500 counterfeit sports jerseys and grossed an estimated $231,000 in sales for these products.
Shawn Robinson pleaded guilty on January 22, 2015; his father pleaded guilty on November 12, 2014.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Convicted Felon Sentenced to 15 Years for Attempting to Shoot PoliceRead the Press Release
PHILADELPHIA – Shamarr Pitts, 26, of Lansdowne, PA, was sentenced today to 180 months in prison for assault on a federal agent, using and carrying a firearm during a crime of violence, and being a convicted felon in possession of a firearm and ammunition. In addition to the prison term, U.S. District Court Judge Joel H. Slomsky ordered a $1,000 fine, three years of supervised release, and a $300 special assessment.
On June 4, 2013, the FBI Violent Crimes Task Force arrived at 43 Schappet Terrace in Lansdowne, PA, to arrest Pitts on charges related to a shooting at the Purple Orchid nightclub in Southwest Philadelphia that had occurred weeks earlier. Uniformed Lansdowne Police had the residence surrounded when the Task Force arrived. Task Force agents and officers initially knocked on the front door of the house and announced their presence. When no one answered, agents and officers breached the back door, and entered the house. A Philadelphia Police detective discovered Pitts hiding behind a closed bedroom door. When the detective pushed the door open, Pitts pointed a silver pistol directly at the detective’s head, pulled the trigger twice generating a clicking sound, but his gun did not discharge. Pitts also attempted to clear and shoot the weapon again, by pulling the slide back, thus generating more noise.
After being ordered to surrender for several minutes, Pitts eventually complied. On February 3, 2015, a federal jury found Pitts guilty of all three counts of the indictment.
The case was investigated by the FBI Violent Crimes Task Force, the Darby Borough Police Department, the Lansdowne Police Department, and the Delaware County District Attorney’s Office, and was prosecuted by Assistant United States Attorney Thomas Zaleski.
Canton man indicted for bank robberyRead the Press Release
A federal grand jury returned a one-count indictment charging Tyrauli Ramon Cutler, 33, of Canton, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on May 28, 2015, Cutler robbed the Citizens Bank located at 3528 Tuscarawas Street, West, Canton, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Canton Police Department and the Federal Bureau of Investigation’s Canton Office. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bronx Sex Trafficker Sentenced in Manhattan Federal Court to 20 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that IRA RICHARDS, a/k/a “Shyne,” of the Bronx, New York, was sentenced yesterday in Manhattan federal court to 20 years in prison for conspiring to commit sex trafficking of a woman by force, fraud, and coercion (“Victim-1”), and for sex trafficking of a minor female (“Victim-2”). RICHARDS was also ordered to pay a total of $22,500 in restitution: $9,000 to Victim-1, and $13,500 to Victim-2. RICHARDS’ sentence was imposed yesterday by United States District Judge Lewis A. Kaplan. RICHARDS was arrested in October 2013 by the FBI and NYPD, after Victim-1 and Victim-2 reported RICHARDS to law enforcement, and RICHARDS has been in federal custody since his arrest.
Manhattan U.S. Attorney Preet Bharara said: “Ira Richards not only exploited vulnerable victims as part of his sex trafficking crimes, but also demeaned and brutalized them with senseless acts of violence. Now he will be held to account with a lengthy term in federal prison.”
According to the Complaint, the Superseding Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case:
RICHARDS was a violent pimp who exploited Victim-1 and Victim-2 by causing them to engage in prostitution for RICHARDS’ own personal financial gain, RICHARDS demeaned Victim-1 and Victim-2 by commanding them to call him “Daddy” and follow other dehumanizing rules imposed by him, and RICHARDS repeatedly brutalized them with beatings, rape, and other acts of violence for not following his mandates.
Victim-1
In or around 2012, RICHARDS convinced Victim-1, who was then in her mid-twenties, to work for him as a prostitute. RICHARDS recruited Victim-1 by promising to provide a place for Victim-1 to live with her infant, child care for her infant, and other basic necessities.
From at least in or about July through August 2012, RICHARDS managed Victim-1’s prostitution activities along with an uncharged co-conspirator (“CC-1”) who also worked for RICHARDS as a prostitute. RICHARDS and CC-1 caused Victim-1 to engage in prostitution at locations in the New York City area, including at Hunts Point in the Bronx. Almost all of the proceeds earned from Victim-1’s prostitution went to RICHARDS. RICHARDS caused advertisements to be posted on classified websites such as Backpage.com offering Victim-1 for commercial sex under her street nickname. The advertisements typically featured photographs of women (other than Victim-1) wearing little clothing, and a telephone number to call.
RICHARDS imposed a strict code of conduct on Victim-1 requiring that she call him “Daddy,” refrain from acknowledging or even looking at another pimp, and meet earnings quotas he set, among other mandates. RICHARDS punished violations of his code with brutality such as beatings and rape.
For example, on at least three or four occasions in or about July and August 2012, RICHARDS forcibly sodomized Victim-1 for displeasing him.
Similarly, in or about July or August 2012, RICHARDS assaulted Victim-1 for attempting to escape from him. At the time, Victim-1, her infant, and a 19-year-old woman who also worked as a prostitute for RICHARDS, lived in an apartment maintained by RICHARDS. In or about July or August 2012, Victim-1 tried to flee from RICHARDS to a different pimp. Shortly thereafter, RICHARDS found Victim-1 and brought her back to the apartment, where RICHARDS beat Victim-1 in the presence of her infant, among others. During the beating, RICHARDS made Victim-1 strip naked and kneel, and then RICHARDS continually hit Victim-1 in her head and body with an umbrella until the umbrella broke. After the beating, Victim-1 asked RICHARDS to take her to the hospital. RICHARDS refused, and instead forced Victim-1 to engage in prostitution with a swollen eye and other injuries he had caused.
Victim-2
In or about 2010, when Victim-2 was 17 years old, RICHARDS convinced Victim-2 to work for him as a prostitute. At the time, RICHARDS was almost ten years older than Victim-2. While Victim-2 was 17 years old, RICHARDS caused Victim-2 to engage in prostitution at locations in the Bronx and elsewhere in the New York City area. Almost all of the proceeds earned from Victim-2’s prostitution went to RICHARDS.
Victim-2 continued to work as a prostitute for RICHARDS during several periods after she had turned 18. Like Victim-1, Victim-2 was subjected to violence by RICHARDS as punishment for disobedience or for displeasing him. For example, on or about November 4, 2011, when Victim-2 was 18 years old, RICHARDS engaged in an argument with Victim-2 in an apartment in the Bronx where she was living with RICHARDS, after RICHARDS became angry that Victim-2 had made only about $100 from prostitution that day. Victim-2 decided to leave RICHARDS and called her mother to arrange to go live with her mother. After RICHARDS saw that Victim-2 had packed bags to leave, RICHARDS began to choke Victim-2 and dragged her away from the front door to a separate room in the apartment. RICHARDS turned on a stereo to play loud music, tore Victim-2’s clothing from her body, and struck her with a studded belt numerous times about her body and head. Victim-2 begged RICHARDS to stop, but he refused and did not stop beating her until the belt broke. While Victim-2 was still in pain from injuries suffered as a result of this beating, RICHARDS ordered Victim-2 to service prostitution clients. Victim-2 took prostitution clients at the apartment for the next few days because she initially had difficulty walking after the beating.
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Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD in investigating this case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant United States Attorneys Samson Enzer and Rebecca Mermelstein are in charge of the prosecution.
Bradenton Man Arrested for Child Pornography OffensesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the arrest of Kevin Brian Darr (50, Bradenton) for transportation, receipt, and possession of child pornography. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the criminal complaint, an undercover law enforcement officer observed multiple child pornography files that had been posted to an Internet messaging application by Darr. On June 25, 2015, a search warrant was executed at Darr’s residence and agents seized his cell phone. More than 100 videos depicting child pornography were found on the phone.
A criminal complaint 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bradenton Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Boston Police Officer Charged with Making False StatementsRead the Press Release
BOSTON – A Boston Police officer and former treasurer of the Boston Police Patrolmen’s Association was charged today with making a false statement to the FBI in connection with his cash loans to a known criminal.
David Michael Fitzgerald, 49, who resides in Milton, was charged in an Information with one count of making a false statement to the FBI. Fitzgerald has been a Boston Police Department police officer since 1996 and was the treasurer of the Boston Police Patrolmen’s Association (BPAA) from 2012 to 2014.
According to court documents, Fitzgerald developed a relationship with an individual who was a known street-level drug dealer and bookmaker. During the course of this relationship, Fitzgerald made cash loans to the individual, which were paid back in weekly installments. On April 27, 2015, Fitzgerald met the individual in Watertown in order to collect a $500 cash installment for one of the outstanding loans. Later that same day, when federal agents who were investigating the matter questioned Fitzgerald, he falsely stated that the purpose of his meeting with the individual was simply social in nature and that he had never loaned money to the individual. Not only were these statements untrue, but they were intended to interfere with an ongoing federal investigation.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The plea agreement also filed today states that Fitzgerald has agreed to resign his position as a Boston Police Officer, and there will be a joint recommendation to the Court for a sentence of one year probation. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The U.S. Attorney’s Office also wishes to acknowledge the cooperation of the Boston Police Department’s Anti-Corruption Division. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris and Robert A. Fisher of Ortiz’s Public Corruption Unit & Special Prosecutions Unit.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boone County woman sentenced for role in oxycodone distributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Belinda Burdette, 43, of Racine, WV., was sentenced today in federal court in Charleston to five years of probation for using a cell phone to traffic drugs. Burdette previously pled guilty in March admitting that she had used her cell phone to arrange the delivery of oxycodone pills to a woman in Boone County. Burdette also admitted that she had obtained the oxycodone pills from a local K-Mart Pharmacy in Charleston where she was employed as a pharmacy technician and that neither she nor the person the pills were delivered to had a valid prescription for oxycodone.
The successful prosecution of Burdette was the result of the cooperative investigative efforts of agents of the Drug Enforcement Administration (“DEA”) and the Boone County Sheriff’s Office.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Bookkeeper Sentenced for Embezzling $715,000 from Community Health CharitiesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PATRICIA BLANCHARD, age 67, formerly of New Orleans, was sentenced after previously pleading guilty to mail fraud for her role in embezzling approximately $715,000 from Community Health Charities of Louisiana and Mississippi (“CHC”), a charitable fundraising organization.
U.S. District Judge Jane Triche Milazzo sentenced BLANCHARD to 30 months imprisonment, followed by 3 years of supervised release. Additionally, BLANCHARD was ordered to pay $575,000 in restitution, in addition to the $140,000 she has already paid.
According to court documents, BLANCHARD’S husband, G.B., was hired in 2000 to be the Executive Director and President of CHC, a not-for-profit charitable organization that raised, collected, and distributed funds to local charities through workplace giving campaigns. CHC received pledges from federal civilian, postal, and military donors to support eligible non-profit organizations. In about 2005, he arranged for BLANCHARD to be hired as CHC’s bookkeeper. As bookkeeper, BLANCHARD was responsible for overseeing CHC’s finances and accounts, including reconciling accounts payable and receivables.
Between 2006 and November 2011, BLANCHARD embezzled approximately $715,000 from CHC in three ways. First, she mailed checks drawn on Charity A’s accounts to pay her own credit card bills. To disguise her behavior and make the checks look legitimate, BLANCHARD added fictitious notes on the checks, such as “Cancer Research Institute,” “AIDS Research Foundation,” “MARCH OF DIMES,” “NO AIDS/TASK FORCE,” “American Heart Assoc.,” and “AMERICAN CANCER SOCIETY.” Second, BLANCHARD obtained cash advances on her Shell gas card without authorization and reimbursed herself from CHC’s accounts, making it look like the reimbursement were for legitimate travel and gas expenses. Third, BLANCHARD paid for personal expenditures and items directly from CHC’s bank accounts without authorization.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Bandon Man Sentenced for Disability FraudRead the Press Release
EUGENE, Ore - Calling the defendant’s conduct “huge criminal thinking,” a Bandon man was sentenced on Wednesday to eight months’ confinement at the Residential Reentry Center in Medford and ordered to pay more than $169,000 in restitution for disability and medical benefits he fraudulently received. Daniel Stadelman, 55, pleaded guilty in October to theft of government funds based on his concealment of work activity from the Social Security Administration (SSA) for more than ten years.
According to Stadelman’s admissions and court records, Stadelman applied for disability benefits in 2001, claiming he was unable to work due to an illness that left him severely fatigued. SSA initially denied his application, but Stadelman appealed and eventually an Administrative Law Judge (ALJ) approved his claim in 2004. Despite the ALJ’s admonition to Stadelman that he be aware of the reporting requirements if he returned to work, Stadelman failed to advise SSA that he was working for himself and for his family’s business, Bandon Supply, where investigators – prompted by an anonymous complaint - observed him working lengthy hours, lifting heavy objects, and operating large machinery. When SSA asked Stadelman if he had returned to work, Stadelman repeatedly denied work of any kind. After federal investigators served a search warrant on Bandon Supply and defendant’s residence in June 2014, Stadelman retained counsel and contacted the government to negotiate a plea resolution.
During the sentencing hearing, U.S. Chief District Court Judge Ann Aiken called Stadelman’s crime a “significant violation of public trust” telling Stadelman that people should know that “just doing the right thing is what is expected,” and that although he may have initially been eligible for the benefits, he “should have been proud to say ‘I don’t need them anymore’” when he returned to work. She also ordered him to perform 225 hours of community service. Stadelman has already remitted more than $150,000 to the government for his court-ordered restitution obligation.
Stadelman’s case was investigated by the Social Security Administration Office of Investigations in Salem and was prosecuted by Special Assistant U.S. Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
Attorney and Senior Employee of Quantell, Inc. and Intaset Technologies Corporation Pleads Guilty in Fraud ConspiracyRead the Press Release
Baltimore, Maryland – Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty late yesterday to conspiracy to commit wire fraud, and to tax fraud, in connection with schemes to defraud the United States by illegally obtaining millions of dollars in federal contracts, and to defraud the employees of two Maryland corporations of their health and welfare benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations .
According to his plea agreement, from 2004 through 2012, Mickle worked for Quantell, Inc. and Intaset Technologies Corporation, headquartered in Carroll County, Maryland, but with offices in Garrett County, Maryland and elsewhere. Quantell and Intaset provided labor services, including environmental science, engineering and information technology services, to federal and state agencies and the private sector. Shaun Tucker, and his wife, Joanne Tucker, were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation.
Federal Procurement Fraud
During the course of Mickle’s employment, Quantell and Intaset obtained federal contracts and task orders. Mickle’s responsibilities included task order proposals and during the time period August 2004 to July 2005, Mickle worked as the Chief Operating Officer of Quantell. According to the plea agreement from at least 2005 to 2010, there were misrepresentations made by Quantell and Intaset, including that they were separate companies, in order for the companies to bid on federal government set-aside contracts designed to benefit small businesses. If the companies had been treated as affiliated companies for contracting purposes, they would not have been eligible for the millions of dollars of small business contracts they obtained, including a 2011 multi-million dollar contract for work to be performed by Quantell at Camp Lejeune in North Carolina. Mickle assisted in Quantell and Intaset bidding on, and securing, government contracts, even though he knew that the information put in those bids was false. For example, by 2008 Mickle learned that the companies self-certified false information when bidding on government contracts, including false information about past revenue, the number of employees, the size and headquarters of the bidding company and the management and ownership of the bidding company. Despite this knowledge, Mickle continued to work on the preparation of government contract bids. As a result, Quantell and Intaset fraudulently obtained government contracts worth more than $10 million.
Employee Benefit Fraud
Many of the Quantell and Intaset contracts with the federal government were only available to companies that certified that they would use a portion of the money paid on the contract to provide bona fide health and welfare benefits to their employees pursuant to the McNamara-O’Hara Service Contract Act (SCA). As a result, the service contract employees across the country that were hired by Quantell and Intaset were covered by the SCA. From 2005 to 2008, SCA money paid to Quantell and Intaset under federal contracts was deposited into qualified employee health and welfare plans subject to the Employee Retirement Income Security Act (ERISA). At this time, the ERISA plans had a third party administrator and trustees who were not associated with the Tuckers, Quantell, and Intaset.
According to Mickle’s plea agreement, beginning in 2008 the SCA funds were no longer contributed to the ERISA plans. Instead, Mickle and his co-conspirators created various entities with no legitimate business purpose (the shell companies), that were used to divert the SCA funds for use by members of the conspiracy, including Mickle, instead of using the money for the benefit of the Quantell and Intaset employees. Mickle and other co-conspirators made false statements that the shell companies were providing bona-fide health benefits and falsely representing that the employees were receiving all of the benefits to which they were entitled. The members of the conspiracy also created fake documents to support the financial transactions involving the SCA funds, including fake invoices. The conspirators had meetings to divide up the SCA funds on a periodic basis among themselves.
Mickle admitted that from 2007 through 2010, the conspirators illegally diverted at least $675,000 of employee benefit money for their personal use, victimizing more than 190 employees. Mickle personally obtained more than $100,000 from October 2008 to February 2010. According to Mickle’s plea agreement, during the entire period of the conspiracy, including after Mickle left Quantell and Intaset, the members diverted approximately $1.6 million of employee benefit money for their personal benefit, causing harm to more than 250 victim employees.
Tax Fraud
Finally, Mickle acknowledged that he submitted a false joint tax return for the 2011 tax year, in which he reported that his taxable income was zero, and the amount of tax due was $830. In fact, Mickle’s taxable income was $30,753, and the tax owed was $11,957.
Mickle faces a maximum sentence of 20 years in prison and a $250,000 fine or twice the gain or loss for the wire fraud conspiracy, and a maximum of three years in prison and a $100,000 fine for tax fraud. U.S. District Judge J. Frederick Motz has scheduled sentencing for November 3, 2015, at 2:15 p.m.
Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland, were previously charged for their roles in the scheme and are scheduled to go to trial in September, 2015.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, DCIS, SBA Office of Inspector General, and Air Force Office of Special Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Attorney General Loretta E. Lynch Statement on the U.S. Supreme Court Ruling in Texas Department of Housing and Community Affairs v. Inclusive Communites Project Inc.Read the Press Release
Attorney General Loretta E. Lynch released the following statement today after the Supreme Court ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project Inc.:
“I am pleased that the Supreme Court has affirmed that the Fair Housing Act encompasses disparate impact claims, which are an essential tool for realizing the Act’s promise of fair and open access to housing opportunities for all Americans. While our nation has made tremendous progress since the Fair Housing Act was passed in 1968, disparate impact claims remain an all-too-necessary mechanism for rooting out discrimination in housing and lending. By recognizing that laws, policies and practices with unjustified discriminatory effects are inconsistent with the Fair Housing Act, today’s decision lends support to hardworking Americans who are attempting to find good housing opportunities for themselves and their families. Bolstered by this important ruling, the Department of Justice will continue to vigorously enforce the Fair Housing Act with every tool at its disposal – including challenges based on unfair and unacceptable discriminatory effects.”
Atlantic County, New Jersey, Man Sentenced to 27 Years in Prison for $3 Million Time-Share Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 324 months in prison for his role in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.
Adam Lacerda, 31, of Egg Harbor Township, New Jersey, was convicted in September 2013 of one count of conspiracy to commit mail and wire fraud, nine counts of mail fraud and three counts of wire fraud flowing a seven-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Lacerda and his codefendants schemed to defraud hundreds of timeshare owners by offering fraudulent consulting services through their company, the Vacation Ownership Group (now VO Financial). Lacerda, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back.
Three codefendants were convicted with Lacerda at the same trial: his wife, Ashley Lacerda, 35, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office. Ian Resnick, 40, of Absecon, New Jersey, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.” Genevieve Manzoni, 49, of Lake Worth, Fla. was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer. They are all awaiting sentencing.
The 14 victims who testified at trial – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of a total of tens of thousands of dollars by the defendants’ sophisticated scheme.
In addition to the prison term, Judge Hillman sentenced Adam Lacerda to three years of supervised release.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent Cheryl Garcia, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Adam Lacerda: Mark E. Cedrone Esq., Philadelphia
Ashley Lacerda: Charles Nugent Esq., Marlton, New Jersey
Ian Resnick: Michael E. Reilly Esq., Philadelphia
Genevieve Manzoni: Ralph A. Jacobs Esq., Philadelphia
Apopka Man Sentenced to 9 Years for Investment FraudRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm Terrell Hodges has sentenced John C. Boschert (43, Apopka) to nine years in federal prison for conspiracy to commit wire fraud. He pleaded guilty on October 29, 2014.
According to court documents, Boschert and his two conspirators, Jenifer E. Hoffman (38, Clermont) and Bryan T. Zuzga (37, Coldwater, Michigan), defrauded over 100 victims out of more than $11 million through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the conspirators represented to investors that money would be placed in a Performing Private Placement Investment, and that Boschert had connections to the trading program being used. Investors were told that their investments would be safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line of credit, which would then be used in trading.
None of those representations were true. Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. They also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The United States obtained more than $850,000 from the sale of the properties. The proceeds from those sales were distributed to the victims of the scheme.
On June 18, 2015, Zuzga pleaded guilty to conspiracy to commit wire fraud. His sentencing date has not yet been set. Hoffman has been charged with one count of conspiracy, eleven counts of wire fraud, and one count of making a false tax return. Her trial is set for July 2015. If convicted, she faces a maximum penalty of 20 years in federal prison for each count of conspiracy and wire fraud, and 3 years in federal prison for the false tax return.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Alabama Woman Sentenced to more than 12 Years in Prison for Leading $4 Million Stolen Identity Refund Fraud RingRead the Press Release
A Phenix City, Alabama, resident was sentenced to serve more than 12 years in prison for leading a multi-million dollar stolen identity theft ring, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
“Stolen identity refund fraud is a nationwide epidemic that causes substantial harm to the individuals whose identities are stolen, and a significant loss to the U.S. Treasury,” stated Acting Assistant Attorney General Ciraolo. “Prosecuting those who engage in this criminal conduct is among our highest priorities, and as today’s sentence demonstrates, those who orchestrate these schemes will face lengthy periods of incarceration and steep monetary penalties.”
Tamaica Hoskins, 34, of Phenix City, was sentenced to serve 145 months in prison, three years of supervised release and ordered to forfeit $1,082,842 in proceeds from the scheme by U.S. District Judge Callie V.S. Granade of the Southern District of Alabama.
According to court documents, between September 2011 and June 2014, ringleader Tamaica Hoskins, who was sentenced today, Roberta Pyatt, Lashelia Alexander and others used stolen identities to file more than 1,000 false federal income tax returns that fraudulently claimed more than $4 million in tax refunds. Hoskins obtained stolen identities from various sources, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, Hoskins and Pyatt obtained two Electronic Filing Identification Numbers using sham tax businesses. On behalf of those sham tax businesses, they also applied to various financial institutions for bank products, such as blank check stock. The conspirators directed the Internal Revenue Service (IRS) to mail U.S. Treasury checks to addresses under their control and to send the tax refunds to prepaid debit cards and financial institutions where the conspirators maintained and controlled bank accounts using the sham tax businesses. When the tax refunds were deposited into the conspirators’ accounts at the financial institutions, the conspirators printed the refund checks using the blank check stock. Hoskins and Pyatt each cashed the refund checks at several businesses located in Alabama and Georgia.
Co-conspirator Alexander worked for a Walmart check cashing center in Columbus. In January 2014, Alexander was approached by several co-conspirators about cashing fraudulent tax refund checks issued in the names of third parties and in return, Alexander would receive a portion of the refunds. Hoskins and Pyatt electronically filed fraudulent federal income tax returns for 2013 using the personal identifying information of numerous identity theft victims. Alexander cashed more than $100,000 in fraudulently obtained third-party refund checks containing forged endorsements.
At sentencing, prosecutors read impact statements from several victims whose identities were stolen and false tax returns were filed in their names. One victim described the consequences of the fraud on her and her family, stating:
What your intentional theft did to me was so much more than just stealing money. As a law student, a part-time employee and a full time mom[,] you stole time from me, time I will never get back, time spen[t] crying because of the avalanche effect of not receiving my income tax check back which I depended on and budgeted for, time checking my mailbox daily, time worrying about whether it was ever going to come, time explaining to my children how there are horrible people in the world who steal because they feel like the world owes them something. Time spen[t] explaining to our youngest that she won’t be getting her braces this year to fix her extremely crooked teeth. Time explaining that Christmas may have to be put on hold this year. Luckily, we are fortunate to have family and friends who love and care enough about us that in our time of need[,] they stepped up to the plate without batting an eye. We had to borrow money to buy law school books because the tax return was not coming. Financially it was a serious hardship because when you do not have money for necessities[,] it puts an emotional strain on every part of your life.
Roberta Pyatt pleaded guilty to conspiracy to commit wire fraud and is scheduled to be sentenced in the Middle District of Alabama for her role in the conspiracy on July 16.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd Brown of the Middle District of Alabama, who are prosecuting the case.