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Thursday 7 May 2015
International Money Launderer Pleads Guilty to His Role in Defrauding Law Firms and Other ScamsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Muhammad Naji (34, Tampa) has pleaded guilty to conspiracy to commit money laundering. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning in January 2014, Naji conspired with others to launder money that had been obtained as the result of fraud. In one of the fraudulent schemes, the conspirators sent “phishing” emails to law firms around the country soliciting legal representation in a fictitious contract dispute. After convincing a firm to tentatively agree to the representation, the conspirators would email fictitious documentation demonstrating their claim. They would also request that the law firm issue a demand letter for the full amount owed on the contract. The conspirators would then mail a forged certified bank check to the law firm as payment to resolve the dispute. The “client” would contact the firm and instruct them to wire the funds, minus the retainer fee, to a specific bank account. If the conspirators were successful in their scam, the law firm would authorize the wiring of the funds before the check cleared.
During the execution of the wire fraud schemes, Naji opened multiple bank accounts, or had others open them for him. Once the fraud proceeds were successfully wired into his accounts, Naji would quickly wire the funds to other bank accounts controlled by conspirators, many of which were outside of the United States, including China, Hong Kong, and Canada. From January 2014, through and including the present, Naji opened more than 35 fraudulent accounts with an estimated loss exposure of more than $2.5 million.
This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
Indiana couple charged with transporting and coercing minor to engage in illicit conductRead the Press Release
An Indiana couple was indicted for transporting a minor over state lines to engage in illicit sexual conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Nicholas Lawler, 25, and Brittany Lawler, 23, both of Anderson, Indiana, were indicted on one count of transportation of a minor and one count of coercion and enticement of a minor to engage in unlawful sexual activity between January 1, 2015 and April 3, 2015.
If convicted, the defendants sentences will be determined by the Court after reviewing factors unique to this case, including each defendant’s prior criminal record, if any, and each 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.
This case was investigated by the Ohio Bureau of Criminal Identification and Investigation, the Tiffin Police Department and the Anderson (Indiana) Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
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.
IT Software Services Contractor and its President Agree to Pay $9 million to Settle Civil False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Global Computer Enterprises, Inc. (GCE), of Reston, Virginia, along with its president and sole owner, Raed Muslimani, 53, of Sterling, Virginia, have agreed to pay $9 million to settle civil claims stemming from allegations that GCE concealed its utilization of prohibited engineers and employees on software services contracts with the federal government.
GCE, a cloud-based “software as a service” provider, provided the U.S. Department of Labor (DOL) and the Equal Employment Opportunity Commission (EEOC) with financial management software services pursuant to competitively awarded federal contracts. During the competitions for those contracts and after award, GCE allegedly misrepresented and/or concealed that it was utilizing engineers and other employees who were expressly prohibited from working on the contracts due to their citizenship/immigration statuses.
GCE was additionally awarded software development services contracts with the General Services Administration (GSA), the United States Secret Service, and the United States Coast Guard (USCG). In those contracts as well, it is alleged that GCE repeatedly misrepresented and/or concealed its use of engineers and employees expressly prohibited from working on those contracts due to their security clearance statuses, labor qualifications, or overseas locations.
To resolve the allegations under the civil False Claims Act and other related statutory and common law remedies, GCE and Muslimani agreed to pay the United States $9 million, to be paid out of GCE’s Chapter 11 proceeding. The Bankruptcy Court approved the settlement on April 22, 2015. GCE filed its Chapter 11 bankruptcy petition on September 4, 2014, and the United States filed a proof of claim on February 27, 2015.
The civil claims settled by GCE, Muslimani, and the United States are allegations only; there has been no determination of civil liability.
The settlement obtained in this matter was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Virginia and the Financial Litigation Section and Fraud Section of the Commercial Litigation Branch of the Civil Division of the Department of Justice. The matter was investigated by Assistant U.S. Attorney Peter S. Hyun and Special Assistant U.S. Attorney Josh Cavinato. John T. McConkie of the Financial Litigation Section of the Commercial Branch of the Civil Division of the Department of Justice is handling the bankruptcy matter on behalf of the United States.
The case was investigated by the GSA Office of Inspector General (OIG), the FBI’s Washington Field Office, the DOL-OIG, the EEOC-OIG, with assistance from the USCG Investigative Service and the United States Secret Service.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the Bankruptcy Court for the Eastern District of Virginia or on PACER by searching for Case No. 14-13290-RGM.
Hyattsville Man Pleads Guilty to Charges Related to Two Carjacking AbductionsRead the Press Release
ALEXANDRIA, Va. –Darian Robinson, 42, of Hyattsville, Maryland, pleaded guilty today to charges of using, carrying, and brandishing a firearm during and in relation to a crime of violence and being a felon in possession of a firearm.
According to the statement of facts filed with the plea agreement, on Nov. 7, 2014, Robinson approached a woman outside of a Walgreens in Fairfax County, Virginia. He then brandished a firearm, ordered her into her car, and forced her to drive to various ATMs to withdraw cash from her bank account. He then forced the victim to drive to a drive-thru liquor store in Maryland to purchase alcohol for him before having her drop him off at the New Carrollton Metro station. Then, on Nov. 12, 2014, Robinson followed a second woman as she exited the Vienna Metro Station. After she was inside her car, Robinson tapped on the window with a gun. He then forced her to drive to Washington, D.C. and then Maryland. Once there, Robinson forced her to drive to various ATMs in attempts to withdraw money which were unsuccessful. Thereafter, Robinson forced this victim to drive to drive-thru liquor stores before dropping him off at the New Carrollton Metro station. During both incidents, Robinson threatened to shoot his victims.
Robinson was indicted by a federal grand jury on March 11, 2015. Robinson faces a maximum penalty of life in prison when he is sentenced on Aug. 21, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Ronald A. Pavlik, Jr., Chief of Metro Transit Police, Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady.
This case was investigated by Metro Transit Police Department, Fairfax County Police Department, and the FBI’s Washington Field Office with assistance from the United States Secret Service and the Baltimore County Police Department. Assistant U.S. Attorneys Patricia Giles and Tyler McGaughey are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-78.
Husband and Wife Sentenced for Manufacturing Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today, BAILEY JOE MILLS, 34and his wife, ELIZABETH MILLS, 35, both of Lillington, North Carolina, were sentenced before United States District Judge Louise W. Flanagan. BAILEY JOE MILLS received 45 years imprisonment followed by a lifetime term of supervised release. ELIZABETH MILLS received 16 years imprisonment followed by 10 year supervised release. Both are required to register as sex offenders.
On June 12, 2014, a Criminal Information was filed charging BAILEY JOE MILLS with manufacturing child pornography, in violation of Title 18, United States Code, Sections 2251(a) and (d). ELIZABETH MILLS was charged by Criminal Complaint on October 20, 2014, with aiding and abetting the manufacturing of child pornography. Both pled guilty to their charges on August 12, 2014, and November 12, 2014, respectively.
According to the investigation, in January, 2014, an investigation was initiated relating to the sexual abuse of a 12-year-old. Law enforcement learned that BAILEY JOE MILLS had also sexually abused at least 10 other minors and that he had paid several of the minors to have sex with himself and other men.
As the investigation continued, a search warrant was executed on the MILLS’ residence in Harnett County, where multiple computers, cellular phones and media storage devices were seized. Forensic examination of the cellular phones and computers revealed a multiple of still images and videos depicting the minors engaged in prohibited sexual conduct produced by BAILEY JOE MILLS with the assistance of his wife, ELIZABETH MILLS.
Investigation of this case was conducted by the Harnett County Sheriff’s Office and the Department of Homeland Security/Homeland Security Investigations. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Houston Man Sent to Prison for Producing Child PornographyRead the Press Release
HOUSTON – Luis M. Gonzalez, 53, has been ordered to federal prison for nearly 27 years following his conviction of production of child pornography, announced United States Attorney Kenneth Magidson. Gonzalez pleaded guilty Jan. 12, 2015.
Late yesterday, U.S. District Judge Lee H. Rosenthal ordered he serve a total of 320 months in federal prison. Following his prison term, he will be on supervised release for the rest of his life and must register as a sex offender. In handing down the sentence, Judge Rosenthal considered evidence that Gonzalez had sexually assaulted two minor girls.
The investigation began in January 2014 when FBI agents downloaded videos containing child pornography from a computer later identified and located at the residence of Gonzalez in Houston.
On Feb. 28, 2014, a federal search warrant was executed, at which time Gonzalez admitted to using a peer-to-peer file sharing program to download child pornography and told the agents they would find images and videos of child pornography on his computer equipment. Gonzalez also admitted he produced pictures of child pornography involving an underage girl.
A forensic exam was conducted which resulted in the discovery of images of child pornography on two hard drives. Agents found approximately 69 videos of child pornography, some of which depicted the penetration of a minor under the age of five and bondage. Agents also discovered approximately 66 images of child pornography that Gonzalez had produced. The camera used to produce these images was also found during the search.
The charges against Gonzalez were the result of an investigation conducted by the Houston office of the FBI. Gonzalez was arrested on the federal charges in February 2014. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorneys Sherri Zack and Robert Stabe.
Honduran National Sentenced for Illegal Use of a Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY RIVERA-GONZALES, age 23, a citizen of Honduras and residing in Hammond, was sentenced after previously pleading guilty to a one-count Indictment for illegal use of a Social Security Number.
U.S. District Judge Marry Lemmon sentenced GONZALES to time served followed by one year of supervised release, and a $100 special assessment. GONZALES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about August 20, 2014, GONZALES submitted a social security number which did not belong to him to a Louisiana Department of Motor Vehicles Office in order to obtain a Louisiana Identification Card. Based on that false submission, an employee with the Department of Motor Vehicles issued GONZALES a Louisiana Identification Card.
U.S. Attorney Polite praised the work of the Homeland Security Investigations and the Louisiana State Police in investigating this matter. Assistant United States Attorney Spiro G. Latsis was in charge of the prosecution.
Hedge Fund CFO Sentenced to Prison for Fraud SchemeRead the Press Release
RICHARD PEREIRA, 43, the former chief financial officer of New Stream Capital, LLC, a Ridgefield-based hedge fund, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for engaging in a scheme to deceive investors in order to obtain and maintain investments.
According to court documents and statements made in court, in November 2007, New Stream Capital, LLC (“New Stream”) launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”). New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund. Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008. At risk of losing their largest investor, PEREIRA and New Stream managing partners David Bryson and Bart Gutekunst set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.
As part of the scheme, PEREIRA, Bryson and Gutekunst had New Stream staff secretly execute documents to effectuate the Bermuda Fund’s special priority. New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund. Moreover, New Stream continued to market to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.
Through this scheme, New Stream investors were defrauded out of more than $46 million.
From April 2008 to December 2010, Bryson and Gutekunst each collected more than $5 million in management fees and profit sharing while participating in this fraud scheme. In late 2008, PEREIRA received a $700,000 bonus from New Stream.
On May 21, 2014, PEREIRA, Bryson and Gutekunst each pleaded guilty to one count of conspiracy to commit wire fraud.
On May 5, 2015, Bryson was sentenced to 33 months of imprisonment and, on May 6, 2015, Gutekunst was sentenced to 30 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorneys Liam Brennan and Michael S. McGarry, and Special Assistant U.S. Attorney Sheldon L. Pollock.
Harrison County man convicted of unlawful possession of thirteen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Wade Highland, 45, of Lost Creek, West Virginia, was convicted in federal court today of unlawful possession of multiple firearms, United States Attorney William J. Ihlenfeld, II, announced.
Highland was previously convicted in February 2009 of “Grand Larceny” in the Circuit Court of Harrison County, West Virginia. As a result of the conviction, he is prohibited from possessing firearms. In August 2014, Highland was discovered in unlawful possession of thirteen firearms.
Highland pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge John S. Kaull presided.
Hamden Man Sentenced to 5 Years in Federal Prison for Selling CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEROME MOYE, 32, of Hamden, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, on six occasions between February and April 2014, MOYE sold crack cocaine to an individual working with law enforcement.
MOYE has been detained since his arrest on August 27, 2014. On February 24, 2015, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
MOYE’s criminal history includes multiple felony convictions, including a sexual assault conviction, and numerous violations of probation. He previously served a state prison term of more than three years for a narcotics distribution offense.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Four Defendants Charged in Brooklyn and Sixteen Charged in Italy for Their Participation in A Transnational Cocaine Trafficking OperationRead the Press Release
Queens Defendants Also Charged with Possessing Illegal Firearms
A six-count superseding indictment was unsealed yesterday in Brooklyn federal court charging husband and wife defendants Gregorio and Eleonora Gigliotti, their son Angelo Gigliotti, and a relative who is an Italian citizen, Franco Fazio, with conspiracy to import cocaine, conspiracy to possess with intent to distribute cocaine, importation of cocaine, and attempted possession of cocaine. In addition, the Gigliotti defendants were charged with unlawful use and possession of firearms. The charges arise from the defendants’ participation in an international narcotics-trafficking operation between July 1, 2014 and March 11, 2015.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Raymond R. Parmer, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
The unsealing of the superseding indictment coincides with the arrest of thirteen defendants in Italy today on related drug-trafficking charges resulting from the collaboration between the United States and Italian law enforcement agencies. Among those arrested by the Italian authorities was Franco Fazio, who will face charges in Italy before the United States seeks his extradition to face the charges contained in the Brooklyn superseding indictment. The Gigliotti defendants, who remain in custody in the United States, were also charged with narcotics-trafficking offenses by the Italian authorities.
“This case is a powerful example of the impact of international cooperation in combatting criminal organizations whose activities transcend national borders,” stated Acting United States Attorney Currie. Mr. Currie extended his grateful appreciation to Homeland Security Investigations and the Federal Bureau of Investigation, and thanked our law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria; the Italian National Police (INP), and in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo; the Direzione Centrale per i Servizi Antidroga; and the Direzione Nazionale Antimafia. Mr. Currie also expressed his gratitude to the U.S. Department of Justice Attaché and the Offices of the HSI and FBI Legal Attaché at the U.S. Embassy in Rome, who coordinated extensive evidence-sharing and coordinated operations.
“The arrests in New York and Italy dismantle a global network of alleged drug smugglers believed responsible for importing more than 50 kilograms of cocaine into the U.S.,” said HSI New York Special Agent-in-Charge Parmer. “This investigation is another example of the collective efforts of our federal and international law enforcement partners to bring down those responsible for the proliferation of illegal drugs in our communities, no matter where in the world they hide.”
“Using their family’s businesses in New York as a front for a narcotics trafficking operation, the defendants, as alleged, sought to establish a global cocaine ring. We also used a global team to take on this case, working closely with our partners in Italy,” said FBI Assistant Director-in-Charge Rodriguez. “As today’s arrests show, we are committed to working together to disrupt and dismantle organized criminal enterprises.”
The charges detailed in the Brooklyn indictment are the product of a lengthy investigation by HSI and the FBI that involved the use of court-authorized wiretaps and physical surveillance, and revealed that between October and December 2014 alone, the defendants imported over 55 kilograms of cocaine into the United States from Costa Rica, which was recovered by law enforcement.
As alleged, Gregorio and Eleonora Gigliotti owned and operated several businesses in New York City that were used to facilitate their narcotics-trafficking operation, including Cucino Amodo Mio, an Italian restaurant and pizzeria in Corona, Queens, and Fresh Farms Export Corp., an import/export company. In October 2014, law enforcement intercepted a shipment of cassava (a starchy root) that was shipped to the United States from Costa Rica and bound for Farm Fresh Export Corp. in New York. The shipment was found to contain approximately 40 kilograms of cocaine secreted inside cardboard boxes of cassava. Earlier, Eleonora Gigliotti allegedly traveled to Costa Rica with approximately $400,000 in cash that she delivered to the sources of supply. In September 2014, Franco Fazio allegedly traveled from Italy to New York and then to Costa Rica to deliver another $170,000 in cash to the sources of supply.
In December 2014, law enforcement intercepted a second shipment of cassava bound for Fresh Farms Export Corp. in New York that had also been shipped from Costa Rica and seized approximately 15 kilograms of cocaine secreted within the cardboard boxes of produce. Prior to the arrival of this shipment of cocaine, defendant Franco Fazio allegedly made two additional trips to Costa Rica to meet with the sources of supply.
The Gigliotti defendants were arrested on March 11, 2015, in New York. That same day, law enforcement searched Cucino Amodo Mio and Gregorio and Eleonora Gigliotti’s residence. In the restaurant they seized one 12 gauge shotgun; one loaded .357 magnum Trooper revolver; one loaded .22 caliber Colt pistol; one loaded .38 caliber Charter Arms revolver; one 9 mm Keltec pistol; one .762 Czech pistol; one .38 caliber Derringer that had a defaced serial number; ammunition magazines; loose ammunition; two handgun holsters; brass knuckles; and more than $100,000 in cash. In the Gigliotti residence agents recovered a loaded .45 caliber Llama handgun and more than $18,000 in cash.
The charges in Italy relate to the defendants’ narcotics trafficking distribution ring in that country – as a quantity of the cocaine imported into the United States was destined for exportation to and distribution in Italy. Based in part upon the U.S. investigation, Italian law enforcement disabled a narcotics distribution ring allegedly operating in Calabria on behalf of the U.S.-based defendants.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, they face a potential mandatory minimum sentence of 15 years’ imprisonment. The Brooklyn defendants will be arraigned at a later date before United States District Judge Raymond J. Dearie.
The government’s case is being prosecuted jointly by the Office’s Organized Crime & Gangs Section and the Long Island Criminal Section. Assistant United States Attorneys James Miskiewicz, Nicole M. Argentieri and Margaret E. Gandy are in charge of the prosecution.
The Defendants:
GREGORIO GIGLIOTTI
Age: 59
Malba, New York
ELEONORA GIGLIOTTI
Age: 54
Malba, New York
ANGELO GIGLIOTTI
Age: 34
Woodside, New York
FRANCO FAZIO
Age: 56
Calabria, Italy
E.D.N.Y. Docket No. 15-CR-204 (RJD)
Former Chief Finance Officer Sentenced to 51 Months in Prison for Stealing Approximately $4 Million from His EmployerRead the Press Release
CHARLOTTE, N.C. – On Wednesday, May 6, 2015, U.S. District Judge Robert J. Conrad, Jr. sentenced Nathan Thomas Mroz, 40, of Charlotte, to 51 months in prison and to two years of supervised release in connection with his scheme to steal money from his former employer, Andersen Heating & Cooling (Andersen), announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. In April 2014, Mroz, the former Chief Finance Officer (CFO) for Andersen, a Mint Hill-based HVAC company, pleaded guilty to mail fraud in connection with his scheme. Judge Conrad also ordered Mroz to pay approximately $4,000,000 in restitution.
Acting U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and court proceedings, from 2005 to 2013, Mroz was employed by Andersen as financial controller and later as CFO and had access to the company’s funds and books and records. Court records show that over the course of his employment, Mroz exploited his position to create fake accounts payable invoices and to generate corresponding payments, which Mroz directed to himself or mailed to various credit cards he maintained. According to court documents, to cover up his scheme, Mroz fraudulently categorized the bogus company payments as legitimate business expenses in the company’s books and records. Court records reflect that Mroz spent the stolen money on personal expenditures, including vacations to Disneyland and Europe, luxury vehicles, private school tuition, jewelry, and a $115,000 home for his nanny, among others. In all, court documents indicate that Morz stole approximately $4 million from Andersen.
In handing down the sentence, Judge Conrad noted that Mroz “abused his position of trust with respect to his controller and CFO functions” and that the execution of the scheme required “hundreds of acts of fraud and deceit” by Mroz. Judge Conrad stressed the “devastating harm to the company” as a result of Mroz’s greed and the “calamitous effect of Mroz’s scheme on innocent groups of people.”
Judge Conrad also ordered defendant to forfeit a Charlotte residence that he had used stolen money to purchase for use by his nanny, as well as diamond jewelry valued at approximately $40,000. The forfeiture was in addition to a payment in excess of $116,000 that defendant already made as restitution pursuant to his plea agreement.
Following the sentencing hearing Mroz was released on bond. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Acting U.S. Attorney Rose credited the FBI for the investigation leading to today’s sentence. She also thanked the Mint Hill Police Department for their invaluable assistance throughout the investigation.
Assistant U.S. Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Former Bastrop Federal Prison Pharmacy Technician and Two Inmates Plead Guilty to Bribery ChargeRead the Press Release
In Austin, a former Bastrop federal prison pharmacy technician and two inmates pleaded guilty to their roles in a bribery scheme to smuggle contraband into the facility announced Acting United States Attorney Richard L. Durbin, Jr.
Appearing before United States Magistrate Judge Andrew Austin, 25-year-old Eric Renaldo Telles of Taylor, TX, pleaded guilty to one count of receipt of a bribe by a public official; FCI-Bastrop inmates 27-year-old Shanon E. Frank and 24–year-old Mattheu Ellis Jones each pleaded guilty to one count of conspiracy to bribe a public official. According to court records, Frank and Jones admitted to bribing Telles to smuggle contraband into FCI-Bastrop from June 2014 to February 2015. The smuggled contraband included Casio G-Shock watches, creatine, nutritional supplements and muscle shirts. Telles collected as much as $2,000 in bribes as a result of the scheme.
Frank and Jones, who remain in federal custody, face up to five years in federal prison. Telles, who faces up to 15 years in federal prison, remains on bond pending sentencing. Sentencing, before United States District Judge Sam Sparks in Austin, has yet to be scheduled.
The case resulted from an investigation by the Department of Justice Office of Inspector General. This case is being prosecuted by Assistant United States Attorney Matthew Devlin.
Former Assistant Band Director Charged in Identity Theft Tax Fraud Scheme Involving Former Broward County Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A former assistant band director was charged for his participation in an identity theft tax fraud scheme involving former Broward County students and other individuals’ personal identifying information (PII).
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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Delvis Demaine Rogers, 27, of Hollywood, Florida, was charged by indictment with one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The defendant faces a maximum statutory sentence of ten years in prison for each of the unauthorized access charges, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge(s).
According to the criminal complaint filed on March 11, 2015, IRS-CI investigators noticed that 419 suspicious tax returns claiming refunds totaling $754,470 were filed from Rogers’ residential address from January 25, 2014 to April 20, 2014. Based on this information, a search warrant was executed at Rogers’ residence and agents discovered and seized papers, notes, and documents containing thousands of PII (including names, dates of birth, and social security numbers) including PII contained in records of more than a dozen Broward County School District students, some dating back to the late 1990s and others into the late 2000s. Agents also seized numerous printed 2013 tax returns.
Agents interviewed Rogers during the execution of the search warrant and he admitted to having prepared and filed hundreds of fraudulent tax returns without the permission of the people in whose names they were filed. Rogers further admitted that he electronically submitted the filings from his apartment. Rogers advised that he was employed as the band director at a school in Opa Locka, Florida, and that he previously was the assistant band director at a high school in Plantation, Florida.
Rogers pled not guilty at his arraignment today before United States Magistrate Judge Patrick M. Hunt.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorneys Brooke C. Watson and Daya Nathan.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
Florida Man Found Guilty on Charges of Conspiring to Commit Mail and Wire Fraud, Obstruct Official ProceedingsRead the Press Release
Claimed over $1.6 million in fraudulent refunds
RICHMOND, Va. – Eddie Blanchard, 37, of Miami, Florida, was convicted yesterday by a federal jury on charges of Conspiracy to Commit Mail and Wire Fraud, Mail Fraud, Wire Fraud, Aggravated Identity Theft, Conspiracy to Obstruct Official Proceedings, and Obstruction of Official Proceedings.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; David M. McGinnis, Acting Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Douglas A. Middleton, Chief of Henrico Police Division made the announcement after the verdict was accepted by U.S. District Judge Henry E. Hudson.
Blanchard faces a maximum penalty of 20 years in prison on each of the two conspiracy counts, fourteen fraud counts and one obstruction count, and a mandatory consecutive 2 years on the aggravated identity theft count when sentenced on August 7, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Blanchard was indicted on October 7, 2014. According to evidence presented at trial, Blanchard participated in a Miami-based stolen identity refund fraud scheme. He and three confederates, Ramoth Jean, Junior Jean Merilia, and Jimmy Lord Calixte traveled repeatedly to Richmond in the early part of 2012 and used stolen personal identifying information to file hundreds of fraudulent tax returns, utilizing online tax preparation programs. Blanchard and his accomplices claimed significant refunds on those fraudulent returns, and requested that those refunds be placed on pre-paid debit cards, which were later mailed to Richmond addresses selected by the conspirators.
The scheme began to unravel when a Henrico County police officer encountered Jean removing a box containing stolen personal identifying information from a storage unit rented by the co-conspirators. Following Jean’s subsequent arrest on June 20, 2013, Blanchard convinced him to mislead federal investigators about the identity of his actual co-conspirators, going so far as to facilitate the creation of a fictional accomplice. Jean ultimately refused to testify before a federal grand jury about this matter.
On January 9, 2014, Jean was sentenced to 114 months’ imprisonment for his role in the fraud scheme. His sentencing on a separate contempt charge for his refusal to testify before the grand jury is scheduled for May 21, 2015. Merilia pled guilty to conspiracy to commit mail and wire fraud, aggravated identity theft, and obstruction of official proceedings. His sentencing is scheduled for June 19, 2015. Calixte is currently a fugitive.
This case was investigated by the Internal Revenue Service’s Criminal Investigation Division and the United States Postal Inspection Service, with assistance from the Henrico County Police Department as members of the Metro-Richmond Identity Theft Task Force. Other member agencies of the Task Force include: the United States Secret Service, the Bureau of Diplomatic Security, the U.S. Department of State, Richmond Police Department, and Chesterfield County Police Department. Prosecutions for the Task Force are handled by the United States Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia. Assistant U.S. Attorneys Michael C. Moore and Thomas A. Garnett are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:13cr136, 3:14cr73, 3:14cr139, and 3:15cr39.
First-Time Drug Trafficker Sentenced to over Five Years in PrisonRead the Press Release
TULSA, Okla.—Alejandro Cabrera Charre, 23, was sentenced on Wednesday to 63 months in prison for conspiring to distribute methamphetamine, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Chief Judge Gregory K. Frizzell also sentenced Alejandro Charre to three years of supervised release following his prison sentence.
Testimony at trial revealed that Alejandro Charre and his uncle, Juan Charre, traveled from Texas to Tulsa to deliver methamphetamine. On October 18, 2014, Tulsa Police Department officers discovered approximately four pounds of methamphetamine concealed in the Charres’ vehicle. The drugs had an estimated value of $46,000. On November 4, 2014, the Charres were indicted by a Grand Jury for drug trafficking offenses. Juan Charre pleaded guilty; however, Alejandro Charre pleaded not-guilty and was tried on January 26, 2015. On January 28, 2015, a jury found him guilty.
This case was investigated by the Tulsa Police Department’s Special Investigations Division and the Drug Enforcement Administration. Assistant United States Attorneys Neal C. Hong and Timothy L. Faerber prosecuted the case.
Federal Indictment: Army Private Stole Fellow Soldiers’ IdentitiesRead the Press Release
TOPEKA, KAN. – A former private in the U.S. Army stationed at Fort Riley has been indicted on charges of stealing his fellow soldiers’ identities, U.S. Attorney Barry Grissom said today.
Todd M. Newbrough was charged Wednesday with four counts of wire fraud, four counts of bank fraud, four counts of aggravated identity theft and one count of computer fraud. The crimes are alleged to have occurred at various times from 2011 to 2015 at Fort Riley, Kan.
The indictment alleges Newbrough used personal identifying information of fellow soldiers to obtain lines of credit and credit cards in their names. He got the information through his access to Leave and Earning Statements, Enlisted Record Brief and Alpha Roster records.
If convicted, he faces a maximum penalty of 30 years in federal prison and a fine up to $1 million on each wire fraud and each bank fraud count, a mandatory consecutive two years on the aggravated identity theft counts, and a maximum penalty of five years and a fine up to $250,000 on the computer fraud count. The Army Criminal Investigation Division investigated. Assistant U.S. Attorney Christine Kenney and Special Assistant U.S. Attorney Robin Graham are prosecuting.
“This is the culmination of a great deal of investigative work conducted by Special Agents from CCIU and our other law enforcement partners who were so critical to this investigation,” said Daniel Andrews, Director of the Computer Crime Investigative Unit (CCIU) for the U.S. Army
Criminal Investigation Command.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Court Issues Written Judgment Accepting Guilty Plea of Schlumberger Oilfield Holdings Ltd. for Violating U.S. Sanctions by Facilitating Trade with Iran and SudanRead the Press Release
Company Must Pay $232.7 Million Penalty
The U.S. District Court of the District of Columbia entered a formal judgment yesterday memorializing the sentence requiring Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd, to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.
The judgment was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS).
At a hearing on April 30, 2015, the District Judge John D. Bates of the District of Columbia accepted the company’s guilty plea and sentenced the company to the proposed sentence articulated in the plea agreement, which called for the fine and other terms of corporate probation. The court recognized the seriousness of SOHL’s criminal conduct, which posed a threat to our national security. In addition, the court noted that the scope of criminal conduct justified the large monetary penalty imposed. Finally, the court concluded that the terms of probation provided adequate deterrence to SOHL as well as other companies. Yesterday, the court entered the written judgment confirming the sentence imposed on April 30, 2015.
“The court’s judgment represents a milestone in the enforcement of U.S. sanctions laws,” said Assistant Attorney General Carlin. “This case marks the first conviction of a corporate entity for facilitating violations of the International Economic Emergency Powers Act and the highest criminal fine ever imposed in a sanctions prosecution. The Court’s imposition of this serious sentence should serve as a strong deterrent for multinational corporations doing any business in countries subject to U.S. economic sanctions.”
“This guilty plea and sentence hold this company accountable for violating trade laws by doing business with sanctioned countries and undermining the interests of the United States,” said Acting U.S. Attorney Cohen. “We hope that other companies tempted to break our export laws take note of the $232.7 million penalty that will be paid in this case.”
The criminal information and plea agreement were filed on March 25, 2015, in federal court in the District of Columbia, charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA. The plea agreement that the court approved also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law. SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution. In addition to SOHL’s commitments, under the plea agreement SOHL’s parent company, Schlumberger Ltd., has also agreed to the following terms during the three-year term of probation, among others: maintaining its cessation of all operations in Iran and Sudan, reporting on the parent company’s compliance with sanctions, responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance.
The court agreed that in addition to SOHL continuing its cooperation with U.S. authorities throughout the three-year period of probation and agreeing not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., will also hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.
According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL. Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures. As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan.
The investigation that commenced in 2009 was led by the Justice Department’s National Security Division, the U.S. Attorney’s Office of the District of Columbia and the U.S. Department of Commerce BIS’ Dallas Field Office. Assistant Attorney General Carlin is grateful to Special Agent Troy Shaffer from BIS’ Dallas Field Office for his excellent work. Assistant Attorney General Carlin also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.
The case was prosecuted by Trial Attorney Casey Arrowood of the National Security Division, Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the District of Columbia.
Federal Court Issues Judgment Memorializing Sentence of Schlumberger Oilfield Holdings Ltd. for Violating U.S. Sanctions by Facilitating Trade with Iran and SudanRead the Press Release
WASHINGTON – The U.S. District Court for the District of Columbia entered a formal judgment yesterday memorializing the sentence requiring Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd., to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.
The judgment was announced by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia, Assistant Attorney General for National Security John P. Carlin, and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS).
At a hearing on April 30, 2015, the Honorable John D. Bates accepted the company’s guilty plea and sentenced the company to the proposed sentence articulated in the plea agreement, which called for the fine and other terms of corporate probation. The court recognized the seriousness of SOHL’s criminal conduct, which posed a threat to our national security. In addition, the court noted that the scope of criminal conduct justified the large monetary penalty imposed. Finally, the court concluded that the terms of probation provided adequate deterrence to SOHL as well as other companies. Yesterday, the court entered the written judgment confirming the sentence imposed on April 30, 2015.
“This guilty plea and sentence hold this company accountable for violating trade laws by doing business with sanctioned countries and undermining the interests of the United States,” said Acting U.S. Attorney Cohen. “We hope that other companies tempted to break our export laws take note of the $232.7 million penalty that will be paid in this case.”
“The court’s judgment represents a milestone in the enforcement of U.S. sanctions laws,” said Assistant Attorney General Carlin. “This case marks the first conviction of a corporate entity for facilitating violations of the International Economic Emergency Powers Act and the highest criminal fine ever imposed in a sanctions prosecution. The Court’s imposition of this serious sentence should serve as a strong deterrent for multinational corporations doing any business in countries subject to U.S. economic sanctions.”
The criminal information and plea agreement were filed on March 25, 2015, in federal court in the District of Columbia, charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA. The plea agreement that the court approved also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law. SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution. In addition to SOHL’s commitments, under the plea agreement SOHL’s parent company, Schlumberger Ltd., has also agreed to the following terms during the three-year term of probation, among others: maintaining its cessation of all operations in Iran and Sudan, reporting on the parent company’s compliance with sanctions, responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance.
The court agreed that in addition to SOHL continuing its cooperation with U.S. authorities throughout the three-year period of probation and agreeing not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., will also hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.
According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL. Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures. As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan.
The investigation that commenced in 2009 was led by the Justice Department’s National Security Division, the U.S. Attorney’s Office of the District of Columbia and the U.S. Department of Commerce BIS’s Dallas Field Office. Acting U.S. Attorney Cohen and Assistant Attorney General Carlin are grateful to Special Agent Troy Shaffer from BIS’ Dallas Field Office for his excellent work. They also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.
The case was prosecuted by Assistant U.S. Attorney Maia L. Miller of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, Trial Attorney Casey Arrowood of the Justice Department’s National Security Division, and Assistant U.S. Attorney Zia Faruqui of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia.
Elyria man indicted for sending letter purporting to contain anthraxRead the Press Release
A federal grand jury returned a federal indictment charging Drew D. Manns, 31, of Elyria, with using the United States Postal Service to make threats with a white powdery substance, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Manns sent Summit County Clerks and Prosecutor’s Office letters including a white powdery substance, and identified the substance as anthrax in the body of the accompanying letters, according to the indictment.
The Summit County Prosecutor’s Office conducted the investigation. The case is being prosecuted by Assistant United States Attorney Marisa T. Darden.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
El Departamento de Justicia llega a acuerdo conciliatorio con Evergreen Bank Group para resolver alegatos de discriminación en préstamos para motocicletasRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que Evergreen Bank Group de Oak Brook, Illinois eliminará o limitará la libertad de discreción que les da a los vendedores de motocicletas de incrementar las tasas de interés como parte de un acuerdo conciliatorio de una demanda federal que alega un patrón o una práctica de discriminación por origen nacional y raza en préstamos para motocicletas. Además de la eliminación de la libertad de discreción, lo que coincide con una política que Evergreen adoptó voluntariamente en marzo de 2014, el acuerdo conciliatorio ofrecerá 395,000 dólares en compensación a víctimas de actos de discriminación pasados de Evergreen.
El acuerdo conciliatorio, que sigue estando sujeto a la aprobación del tribunal, fue presentado hoy con la denuncia del departamento en el Tribunal Federal de Distrito del Distrito Norte de Illinois. La denuncia alega que Evergreen violó la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] al cobrar a alrededor de 2,200 prestatarios hispanos y afroestadounidenses mayores tasas de interés que a prestatarios blancos no hispanos entre enero de 2011 y marzo de 2014. La denuncia alega que la unidad de préstamos para motocicletas FreedomRoad Financial de Evergreen les cobró a los prestatarios mayores tasas de interés debido a su origen nacional o raza y no debido a su solvencia u otros criterios objetivos relacionados con el riesgo crediticio. Este cargo discriminatorio hacía que la víctima promedio pagara de 200 a 250 dólares adicionales aproximadamente durante el término del préstamo.
“El departamento, en cooperación con nuestras dependencias asociadas, sigue examinando detenidamente el mercado de préstamos para vehículos motorizados en busca de actos de discriminación potencial”, dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta de la División de Derechos Civiles. “Agradecemos a Evergreen por reconocer el riesgo de discriminación provocado por sobreprecios discrecionales de los vendedores y por adoptar nuevas políticas de compensación a vendedores que reducen significativamente ese riesgo”.
En vez de recibir las solicitudes directamente de los clientes, Evergreen realiza la mayor parte de sus préstamos para motocicletas a través de aproximadamente 400 vendedores de motocicletas en todo el país que ayudan a sus clientes a pagar su motocicleta nueva o usada presentando sus solicitudes de préstamo a Evergreen.
Hasta marzo de 2014, la práctica comercial de Evergreen, como la de muchos prestamistas para vehículos motorizados, permitía que los vendedores de motocicletas variaran según su propia discreción subjetiva y sin orientación la tasa de interés de un préstamo respecto del precio determinado inicialmente por Evergreen. Los vendedores recibían mayores pagos de Evergreen por préstamos que incluían un mayor margen de ganancias por tasa de interés. La demanda de diciembre de 2013 del departamento contra Ally Financial Inc. y Ally Bank, que generó un acuerdo conciliatorio que establecía una compensación de 80 millones de dólares para los prestatarios, implicó un sistema de compensaciones parecido.
En marzo de 2014, Evergreen eliminó la libertad de discreción de los vendedores de motocicletas para incrementar las tasas de interés. En su lugar, Evergreen adoptó una política por la cual siempre se compensa a los vendedores con base en un porcentaje de la suma principal del préstamo que no varía según la tasa de interés del préstamo. No se observó discriminación cuando los Estados Unidos analizaron préstamos otorgados bajo la nueva política. El acuerdo conciliatorio permite que Evergreen siga utilizando la política revisada de compensación que adoptó en marzo de 2014.
La demanda se originó en una remisión de marzo de 2013 a la División de Derechos Civiles del Departamento de Justicia por parte de la Federal Deposit Insurance Corporation (FDIC). Evergreen está regulada por la FDIC.
La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del Departamento de Justicia es llevada a cabo por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde que se estableció la Unidad de Préstamos Justos en febrero de 2010, ésta entabló o resolvió 38 casos de préstamos bajo la Ley de Vivienda Justa (FHA), la ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios en estos casos proveen más de 1,200 millones de dólares en asistencia monetaria para comunidades impactadas y prestatarios individuales. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso sobre la ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications/.
La División de Derechos Civiles, la Fiscalía Federal para el Distrito Norte de Illinois y la FDIC son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama fundó esta fuerza de tarea para generar una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de una amplia gama de agencias federales, autoridades regulatorias, inspectores generales y fuerzas del orden público estatales y locales quienes, trabajando juntos, implementan un conjunto poderoso de recursos de coacción penal y civil. La fuerza de tarea está trabajando para mejorar las iniciativas en todo el poder ejecutivo federal y, junto con asociados estatales y locales, investigar y enjuiciar delitos financieros importantes, garantizar un castigo justo y eficaz para quienes cometen delitos financieros, combatir la discriminación en los mercados financieros y de préstamos, y recuperar ganancias para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visitar www.StopFraud.gov.
El acuerdo conciliatorio estipula la existencia de un administrador independiente que ubique a las víctimas y distribuya los pagos sin costo para los prestatarios identificados por el departamento como víctimas de actos de discriminación de Evergreen. El departamento hará un anuncio público y publicará información en su portal de Internet cuando existan más detalles sobre el proceso de compensación. El administrador del acuerdo se comunicará con los prestatarios que sean elegibles para recibir compensación del acuerdo conciliatorio y no necesitan comunicarse con el departamento en este momento. Las personas que crean haber sido víctimas de actos de discriminación en préstamos por parte de Evergreen y tengan preguntas sobre el acuerdo conciliatorio pueden comunicarse con el departamento llamando al 202-514-4713.
Para obtener una copia de la demanda y de la orden de acuerdo conciliatorio propuesto, así como también información adicional sobre la labor del Departamento de Justicia de los Estados Unidos para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia de los Estados Unidos en www.justice.gov/fairhousing.
Eagle Butte Woman Sentenced for Second Degree Murder of A ChildRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Second Degree Murder was sentenced on May 4, 2015, by U.S. District Judge Roberto A. Lange.
Jordyn Blue Coat, a/k/a Jordyn Swan, age 21, was sentenced to 240 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Blue Coat was indicted by a federal grand jury on October 21, 2014, for Child Abuse. On February 2, 2015, she pled guilty to a Superseding Information charging her with Second Degree Murder of a Child.
The conviction stems from an incident that occurred on October 17, 2014, when Blue Coat was the caretaker of a 20-month old child. According to Blue Coat, in the last two months of the child’s life, he frequently cried and was hard to console. The evening of October 17, the child had a messy diaper, which Blue Coat changed and temporarily left on the bedroom floor near the child, while she stepped out to use the restroom. When she returned, the child had gotten ahold of the dirty diaper and had feces all over his clothes and himself. At this time, Blue Coat became angry, lost control of her emotions and kicked the child in the head. The kick pushed the child’s head into a television stand in the bedroom. As a result, the child was unconscious and his head began to swell from the injury he received. After spending some time trying to awaken the child, Blue Coat took him to the emergency room at the Indian Health Services (IHS) Hospital in Eagle Butte.
Blue Coat told hospital medical providers that the child had “fallen two days ago in the park” and hit his head. She did not provide an accurate medical history. The child was unresponsive at the hospital. Additionally, there was swelling around the child’s left ear, eyes were swollen shut, and there was a large burn injury to the leg. The child also had multiple chronic and acute burn injuries throughout his body. Doctors at IHS immediately suspected the child had a closed head injury and air evacuated him to Rapid City Regional Hospital, where emergency medical personnel worked on him for four hours. The child died in the emergency room on October 18, 2014.
The autopsy report listed the cause of death as blunt force trauma to the head that caused acute subdural hemorrhaging, and led to bilateral cerebral brain failure. The autopsy also revealed multiple burns, contusions, abrasions, and injuries to the child’s head, face, and feet, along with old and recent bone fractures.
The investigation was conducted by the Federal Bureau of Investigation, the South Dakota Department of Social Services, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Blue Coat was immediately turned over to the custody of the U.S. Marshals Service to begin serving her sentence.
Eagle Butte Man Sentenced for Misprision of A FelonyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man was convicted of Misprision of a Felony and was sentenced on May 4, 2015, by U.S. District Judge Roberto A. Lange.
Robert McLane, age 29, was sentenced to 1 month in custody, 12 months of supervised release, $925 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
McLane was indicted by a federal grand jury on July 15, 2014, for Possession and Sale of a Stolen Firearm. On February 24, 2015, McLane pled guilty to a Superseding Information charging him with Misprision of a Felony.
The conviction arose from an incident that occurred on October 4, 2013, at Eagle Butte, when McLane failed to report a serious crime, even though he was very aware that the federal crimes of burglary and larceny had been committed.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Eagle Butte Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on May 4, 2015, by U.S. District Judge Roberto A. Lange.
Kenny Fiddler, age 34, was sentenced to 27 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Fiddler was indicted by a federal grand jury on December 9, 2014, and pled guilty to Assault with a Dangerous Weapon on March 3, 2015.
The conviction arose from an August 23, 2014, incident in Eagle Butte, when Fiddler took a folding knife, put the blade to the back of the victim’s neck and threatened to do bodily harm to the victim, an adult male.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Douglas Man Pleads Guilty to Federal Child Exploitation ChargesRead the Press Release
BOSTON – A Douglas man pleaded guilty yesterday in U.S. District Court in Worcester to attempting to travel to New York to engage in illicit sexual conduct with an undercover federal agent posing as a teenage girl.
Scot Trudeau, 40, pleaded guilty to one count of attempting to travel to engage in illicit sexual conduct with a minor. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 18, 2015.
The investigation of Trudeau’s conduct began after federal law enforcement in New York received complaints from an internet watchdog that Trudeau was engaged in questionable online communications concerning minors. As a result, agents created a fictitious persona for a 13-year-old girl, “Casey,” and, via email, introduced “Casey” to Trudeau. From September 2013 to January 2014, Trudeau communicated with “Casey” in dozens of emails. In the course of these communications, Trudeau, who was in Massachusetts, proposed several times that the two meet near “Casey’s” supposed home in New York, and graphically described sexual acts that Trudeau wished to perform with her. Trudeau was arrested in February 2014, and subsequently confessed.
The charging statute provides for a sentence of no greater than 30 years in prison, a minimum term of five years and up to a lifetime of supervised release, and a fine of $250,000. 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 and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Grady of Ortiz’s Worcester Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Detroit Residents Sentenced for Defrauding Internal Revenue Service with Identities of Deceased IndividualsRead the Press Release
Two Detroit residents were sentenced after pleading guilty to charges of wire fraud and aiding and abetting in the use of false identification, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge Jarod Koopman of Internal Revenue Service-Criminal Investigation (IRS-CI) announced today.
McAllen Knight and Renita Adams were each sentenced to serve 18 months in prison by U.S. District Court Judge Avern Cohn of the Eastern District of Michigan. Knight’s mother, sister and stepfather also pleaded guilty to wire fraud and aiding and abetting in the use of false identification. Brenda Knight, Knight’s mother, and Adreann Turnage, Knight’s sister, were sentenced on April 14 to serve 24 and 18 months in prison, respectively. Willie Watkins, Knight’s stepfather, was sentenced on April 29, 2014, to serve 30 months in prison. All five defendants were ordered to pay $410,949 in restitution.
According to court records, Adams and McAllen Knight participated in a scheme with Watkins, Brenda Knight and Adreann Turnage to defraud the United States by using the names and social security numbers of recently deceased individuals to prepare fraudulent tax returns. They filed hundreds of fraudulent 2010 tax returns. The returns sought refunds by making false claims for the Earned Income Credit, Education Credits and the Making Work Pay Credit. The returns were transmitted electronically, utilizing public access Internet connections from local hotels and coffee shops. An Internet account registered to Adams was used to transmit 306 fraudulent returns. The refunds were directed to bank accounts that were established for the sole purpose of receiving the fraudulent refunds. McAllen Knight caused some of these bank accounts to be opened by others to receive the deposits of the false tax refunds. Adams helped distribute the proceeds of the fraudulently obtained tax refunds at the direction of her fellow participants and retained a portion of the proceeds for her own benefit.
The investigation of this case was conducted by special agents of IRS-CI and prosecuted by Assistant U.S. Attorney Ross I. MacKenzie of the Eastern District of Michigan and Trial Attorney Kenneth Vert of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Corning Man Pleads Guilty to Theft from Health Care FundRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brandon Wilson, 26, of Corning, NY, pleaded guilty to theft from a health care benefit program, before U.S. Magistrate Judge Marian W. Payson. The charge carries a maximum penalty of one year in prison and a $5,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Wilson, a member of the Plumbers & Steamfitters Local 267, participated in a scheme devised by Paul Harnas, Jr. to submit fraudulent dental claims for reimbursement from the Local 267 health fund. The defendant sought fraudulent payments totaling $6,358. In aggregate, Harnas, Wilson and others involved in the scheme submitted false claims to the Local 267 health fund totaling more than $65,000.
Harnas has been convicted and is awaiting sentencing.
The plea is the culmination of an investigation by Special Agents of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Financial Services, Frauds Bureau, under the direction of Superintendent Benjamin Lawsky.
Sentencing is scheduled for July 24, 2015 at 10:00 a.m. before Judge Payson.
Corinth Man Sentenced to Four Years for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David Livingston Brown, 41, of Corinth, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to four years in prison to be followed by eight years of supervised release for possession of child pornography. Brown pleaded guilty to the charge on July 28, 2014.
According to court records, in April 2013, Brown emailed a video containing child pornography to an undercover federal agent. On July 18, 2013, a search warrant was executed at the defendant’s residence in Corinth. The defendant admitted sending and receiving images of child pornography by email and collecting hundreds of images and videos of child pornography over several years. A forensic examination of computers and computer storage devices seized from the residence revealed hundreds of images and videos of child pornography.
The investigation was conducted jointly by the Federal Bureau of Investigation and the Maine State Police Computer Crimes Unit. 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Convicted California Sex Offender Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that David Eric Crews (54, Sacramento, CA) has pleaded guilty to a federal charge of failing to register as sex offender after traveling to Florida from California. He faces up to 10 years in federal prison. A sentencing date has not yet been set. Crews has been in custody since his arrest on March 30, 2015.
According to court documents, in March 1993, Crews was convicted of rape and sexual battery in Sacramento. Subsequent to his conviction, he traveled from California to Florida in December 2014. He failed to update his registration in California, and he did not register as a sex offender in Florida, as required by the Sex Offender Registration and Notification Act.
In March 2015, Deputy U.S. Marshals went to a campground in Bunnell, Florida and observed Crews setting up musical equipment on a stage at an outdoor venue. He and other members of his band had been playing at the park nightly. Crews had been living in a motor home at the campground since December 22, 2014.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cincinnati-Area Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
A federal grand jury has brought an additional charge against Christopher Lee Cornell, 21, of Green Township, Ohio. In a superseding indictment returned in Cincinnati, he is now also charged with attempting to provide material support to a designated foreign terrorist organization.
The charge is in addition to the original Jan. 21, 2015, indictment that charged Cornell with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence. Cornell was charged for his alleged participation in a plot to attack the U.S. Capitol Building and kill government officials.
The superseding indictment, which was returned today, was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division.
The four-count superseding indictment alleges that on or about August 2014 through January 2015, Cornell allegedly plotted, planned and attempted to attack the U.S. Capitol.
The defendant is also alleged to have attempted to provide material support and resources to a foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL), knowing that the organization was a designated foreign terrorist organization and that the organization had engaged in and was continuing to engage in terrorist activity. Material support and resources consisted of personnel in the form of the defendant himself by plotting and attempting to execute an attack on the U.S. Capitol.
Cornell allegedly attempted to kill officers and employees of the United States during their official duties, specifically by attempting to attack the U.S. Capitol Building. During that same time, the defendant allegedly attempted to persuade others to kill officers and employees of the United States. Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.
Providing material support to a designated foreign terrorist organization carries a potential maximum sentence of 15 years in prison. Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Solicitation to commit an attempted murder is a crime punishable by 20 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; U.S. Immigrations and Customs Enforcement; U.S. Secret Service; and West Chester, Ohio, Police Department.
Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF. The case is being prosecuted by Trial Attorney Michael Dittoe of the Justice Department’s National Security Division and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Cornell Superseding Indictment
Cincinnati-Area Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
WASHINGTON – A federal grand jury has brought additional charge against Christopher Lee Cornell, 21, of Green Township, Ohio. In a superseding indictment returned in Cincinnati, he is now also charged with attempting to provide material support to a designated foreign terrorist organization.
The charge is in addition to the original Jan. 21, 2015, indictment that charged Cornell with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence. Cornell was charged for his alleged participation in a plot to attack the U.S. Capitol Building and kill government officials.
The superseding indictment, which was returned today, was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division and Special Agent in Charge Mark Porter of the U.S. Secret Service.
The four-count superseding indictment alleges that on or about August 2014 through January 2015, Cornell allegedly plotted, planned and attempted to attack the U.S. Capitol.
The defendant is also alleged to have attempted to provide material support and resources to a foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL), knowing that the organization was a designated foreign terrorist organization and that the organization had engaged in and was continuing to engage in terrorist activity. Material support and resources consisted of personnel in the form of the defendant himself by plotting and attempting to execute an attack on the U.S. Capitol.
Cornell allegedly attempted to kill officers and employees of the United States during their official duties, specifically by attempting to attack the U.S. Capitol Building. During that same time, the defendant allegedly attempted to persuade others to kill officers and employees of the United States. Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.Providing material support to a designated foreign terrorist organization carries a potential maximum sentence of 15 years in prison. Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Solicitation to commit an attempted murder is a crime punishable by 20 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; U.S. Immigrations and Customs Enforcement; U.S. Secret Service; and West Chester, Ohio, Police Department.
Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF. The case is being prosecuted by Trial Attorney Michael Dittoe of the Justice Department’s National Security Division and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Chicago Man Sentenced for Criminal TrespassRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Chicago, Illinois, man charged with Criminal Trespass pled guilty to and was sentenced on April 28, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Steven Nichols, age 44, was sentenced to 12 months in custody, 1 year of supervised release, a $25 assessment to the Federal Crime Victims Fund, and ordered to not re-enter the lands of Todd County and the Rosebud Sioux Indian Reservation.
In the summer of 2011, the Rosebud Sioux Tribe’s Attorney General petitioned the tribal court to bar Nichols, a non-Indian, from entering the lands of the Rosebud Sioux Indian Reservation. On June 10, 2011, he was served with notice of the proceedings. On September 22, 2011, the Rosebud Sioux Tribal Court entered an Emergency Writ of Exclusion barring him from entering the lands of the Rosebud reservation, and the Rosebud Sioux Tribal Council voted to exclude the Defendant from the reservation. On September 23, 2011, a tribal law enforcement officer served him with the exclusionary order and escorted him off of the reservation.
Tribal law enforcement officers later learned that Nichols had re-entered the reservation. On September 9, 2012, officers apprehended him and again transported him off of the reservation. On January 30, 2013, officers learned Nichols was staying at a residence within the reservation, and upon searching the residence, found him hiding in a crawl space. He was arrested on federal criminal trespass charges and transported off of the reservation and into federal custody.
On March 14, 2014, Nichols was in a car near Two Strike, when a tribal patrol officer encountered him driving towards St. Francis, located within the Rosebud reservation. By being on the reservation, the Defendant defied orders to leave that were previously communicated to him. Nichols was convicted of criminal trespass and sentenced to nine months custody on September 30, 2014.
Nichols was placed at the Work Release Program in Winner on December 11, 2014. On January 16, 2015, Nichols was on a furlough and trespassed onto the Rosebud reservation. Nichols went to a home in St. Francis, and the occupant of the home called the police and Nichols was detained by law enforcement.
Nichols has repeatedly trespassed on the Rosebud Sioux Indian Reservation and, since 2013, this is his fourth conviction or Criminal Trespass in federal court. This conviction resulted in the statutory maximum of 12 months in custody.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Nichols was remanded to the custody of the U.S. Marshals Service to complete his sentence.
Chicago Investment Adviser Sentenced to 36 Months in $1 Million Fraud SchemeRead the Press Release
CHICAGO – A Chicago investment adviser was sentenced today to 36 months imprisonment for fraudulently using new investor funds, including funds from elderly investors, to pay off old investors, leading to a loss of almost $1 million. The defendant, JOSEPH HENNESSY, 54, of Western Springs, was also ordered to pay restitution in the amount of $645,900 to the victims of the fraud and was sentenced to three years of supervision after his release by U.S. District Court Judge Harry D. Leinenweber. Hennessy was ordered to report to the Federal Bureau of Prisons on June 23, 2015. Hennessy pled guilty on December 16, 2014 to one count of wire fraud.
Hennessy operated Resource Planning Group, Inc., a registered investment adviser with the U.S. Securities and Exchange Commission, in Chicago. Hennessy also formed and operated the Midwest Opportunity Fund, a private equity fund that targeted for purchase and investment small to medium-sized companies based in the Midwest.
“What you did involved a massive abuse of trust that needs to be punished,” stated Judge Leinenweber when imposing the sentence, “People relied on you.”
According to court records, between May 2009 and February 2010, Hennessy solicited investors to invest in the Midwest Opportunity Fund, and offered a high interest rate between 10% to 15% per year with a short maturity date of between two and six months. Hennessy falsely represented to the investors that their funds would be used to invest in small to medium-sized companies. However, Hennessy used the new investor funds to pay off old investors in the Midwest Opportunity Fund. Hennessy also misappropriated funds from the accounts of two elderly investors and forged their names on wire transfer forms without their authorizations. Hennessy used the elderly investors’ funds to repay existing investors in the Midwest Opportunity Fund.
“Defendant Joseph Hennessy owed a fiduciary duty to his clients. He was an investment adviser tasked with managing his clients’ money. However, when defendant went into debt with the Midwest Opportunity Fund, he used client money like a personal piggybank, selling promissory notes and transferring funds out of new client accounts to pay off old debtors,” argued Assistant United States Attorney Sunil Harjani in the government’s sentencing memorandum.
The case was prosecuted by Assistant U.S. Attorney Sunil Harjani.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago office of the U.S. Securities and Exchange Commission provided assistance with the investigation.
Career Convicted Felon Pleads Guilty for Possession of A FirearmRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced that Christian M. MacKean, 37, of Eatonton, Georgia entered a plea of guilty on May 7, 2015, for the possession of a firearm by a convicted felon before the Honorable Marc T. Treadwell, U.S. District Court Judge, in Macon, Georgia.
On August 13, 2013, Monroe County Sheriff’s Office (MCSO) Patrolman Jeff Wilson stopped a Chevrolet Silverado pick-up truck on I-75 for speeding. Mr. MacKean, the driver and owner of the vehicle, refused to show his driver’s license or an insurance card. As he reached for a briefcase, Patrolman Wilson noticed a bulge under Mr. MacKean’s shirt and suspected there was a weapon. Patrolman Wilson called for backup. When Deputy Kimberly Barnett from the Forsyth Police Department arrived and approached the vehicle she saw the handle of a black pistol on Mr. MacKean’s right side. It was learned that MacKean had an outstanding warrant for his arrest for parole violations. During a search incident to this arrest it was found that Mr. MacKean had a loaded pistol in a holster on his right hip and a fully loaded AR-15 rifle in the toolbox of the Silverado. In addition, two plastic bags containing methamphetamine with a combined weight of three grams were found in the truck.
A criminal background check of Mr. MacKean revealed previous felony convictions for possession and trafficking of methamphetamine, as well as possession of cocaine. Mr. MacKean is facing a maximum term of 120 months imprisonment, a maximum fine of $250,000, or both, for this offense. He is currently serving a prison sentence in Putnam County. His prison term for this offense will begin once the other sentence has been served.
United States Attorney Michael J. Moore stated that “Due to his prior criminal conduct, Mr. MacKean lost his right to possess a firearm. In addition, he not only illegally possessed a handgun and assault weapon in this case but did so along with one of our most dangerous illicit drugs. At least for the term of the sentence he faces he will not be a further threat to the safety of the public in this way.”
This case was investigated by the Bureau of Alcohol, Tobacco, & Firearms. Assistant United States Attorney Sonja B. Profit 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.
Cape May County, New Jersey, Man Admits Possessing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. - A West Wildwood, New Jersey man today admitted possessing images and videos of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Jeffrey Spicer, 44, pleaded guilty today before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with one count of knowingly possessing child pornography.
According to documents filed in this case and statements made in court:
Spicer admitted that he possessed images and videos of child sexual abuse on electronic and digital media that were seized from his residence pursuant to a search warrant executed on March 19, 2014. According to a forensic examination of these items, numerous images and videos of child sexual exploitation were discovered, including images on his cellular telephone, which he saved by taking screenshot photos with the telephone. The forensic examination further revealed that Spicer was using a password-protected “app” on his cell phone to store the child pornography.
As a previously convicted sex offender in New Jersey and Delaware, Spicer faces a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, up to a lifetime of supervised release, and a $250,000 fine. Sentencing is scheduled for Aug. 11, 2015.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; the Lower Township Police Department, under the direction of Chief William Mastriana; and the West Wildwood Police Department, under the direction of Chief Jackie Ferentz, with the investigation leading to the guilty plea.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Camden.
Defense counsel: Lisa Evans Lewis Esq., Camden
Canadian Company and Drop Shipper Plead Guilty to Conspiracy to Smuggle and Sell Misbranded Prescription PharmaceuticalsRead the Press Release
ALEXANDRIA, Va. – SB Medical Inc., and TC Medical Group, companies based in Toronto, Canada, and St. Michael, Barbados, along with Hanoch David Stein, 37, of Baltimore, Maryland, pleaded guilty today to a multi-year conspiracy to smuggle and sell misbranded prescription pharmaceuticals in the United States and unlicensed wholesaling of prescription drugs. During the conspiracy SB Medical Inc. and TC Medical Group received over $33 million in proceeds from the illegal smuggling and sale of misbranded prescription pharmaceuticals in the United States.
“The smuggling and distribution of misbranded drugs and medical devices of uncertain foreign origin has the potential for serious harm to patients,” said Dana Boente, U.S. Attorney for the Eastern District of Virginia. “They could be improperly stored and transported, ineffective, adulterated, or unsafe. With our law enforcement partners, we will aggressively investigate and prosecute those who illegally distribute such products.”
SB Medical Inc., TC Medical Group, and Stein were indicted by a federal grand jury on December 2, 2014.
“Individuals who circumvent the FDA-regulated supply chain by distributing unapproved prescription drugs and medical devices put the health and safety of the American public at risk,” said George M. Karavetsos, Director, FDA Office of Criminal Investigations. “The FDA has zero tolerance for those who participate in these illegal trafficking networks and, as we did in this case, we will continue to protect consumers by bringing such criminals to justice.”
According to the statements of facts filed along with the plea agreements, the SB Medical Inc. organization from at least 2011 through 2014, smuggled orthopedic injections, rheumatology infusions, cosmetic devices, optomology products, and oncology drugs into the United States. The non-FDA approved prescription pharmaceuticals were sourced from other foreign countries including India, Turkey, France, Italy, and other countries and included Lucentis, Mabthera, Botox, Dysport, Euflexxa, Remicade, Restylane, Synvisc, Prolia, Orencia, Orthovisc, and other products.
“The illegal smuggling and sale of misbranded prescription pharmaceuticals can pose life threatening consequences for consumers,” said Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Our agents work tirelessly to protect the American public from criminals who disregard health and safety warnings solely to make a buck.”
Members of the conspiracy working for SB Medical Inc. and TC Medical Group used false names to sell the pharmaceutical products to doctors and clinics in the United States. To smuggle pharmaceuticals across the United States border, large shipments were broken down into multiple small shipments. Those shipments were sent to addresses in Maryland, New Jersey, Florida, and other locations under different false names over several days. Customs forms falsely stated the contents and value of the shipments. Drop shippers in the United States, including Stein, received these packages, removed indicia that they were from abroad, and re-shipped them to doctors and clinics in the United States so that packages would have a United States-based return address.
“This case serves as a perfect example of what can be accomplished when different law enforcement agencies partner together to protect the American public from the many perils of illegal prescription drugs,” said Acting Postal Inspector in Charge David M. McGinnis, U.S. Postal Inspection Service-Washington Division. “It is our duty as Postal Inspectors to investigate and stop those who attempt to ship illicit drugs through the U.S. Mail.”
Instead of storing pharmaceuticals at cool temperatures as required for many of the pharmaceuticals, members of the conspiracy used unregistered commercial mailboxes, residential backyards and porches, basement rooms, garages, kitchen fridges and freezers, which did not have adequate lighting, ventilation, temperature, humidity, and security as required for the safe storage and handling of the prescription drugs and devices.
To further deceive customers about the actual location of SB Medical Inc. and the foreign origin of the pharmaceuticals, members of the conspiracy further asked that customers send checks to locations in the United States; drop shippers bundled the checks and forwarded them to Canada where they would be cashed.
This investigation has resulted in the guilty pleas of other conspirators of SB Medical Inc. and TC Medical Group, including:
- David Eli Burke, 34, of Thornhill, Ontario, Canada, director of sales
- Shlomo David Rabi, 25, of Toronto, Ontario, Canada, director of sales and marketing
- Asaf Akiva Ibrahimian, 24, of West Orange, New Jersey, sales representative
- Reuven Daniel Mirlis, 23, of Passaic, New Jersey, sales representative
- Rivka Rabi, 26, of Lakewood, New Jersey, drop shipper
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; George M. Karavetsos, Director, FDA Office of Criminal Investigations, Clarke E. Settles, Special Agent in Charge of Homeland Security Investigations , Washington, D.C.; and David M. McGinnis, Inspector in Charge of the U.S. Postal Service-Washington Division, made the announcement after the pleas were accepted by U.S. District Judge Anthony J. Trenga.
This case was investigated by the FDA’s Office of Criminal Investigations, Homeland Security Investigations Washington, D.C., and the United States Postal Inspection Service. Assistant U.S. Attorneys Alexander T.H. Nguyen, Kellen S. Dwyer, and Jay V. Prabhu are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-397.
Buffalo Woman Pleads Guilty to Tax Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Malisha Mobley, 30, of Buffalo, NY, pleaded guilty to conspiracy to defraud the government in the filing of false tax returns before U.S. District Judge Richard J Arcara. The charge carries a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant obtained fraudulent W-2 forms from James Chatmon and used the forms to file false tax returns for tax years 2011, 2012 and 2014. As a result the defendant obtained tax refunds which she was not entitled to receive.
In addition, Mobely recruited two other individuals to file false tax returns by providing them with the fraudulent W-2 forms obtained from James Chatmon. Those individuals used the forms to file false tax returns for tax year 2012. As a result of the defendant’s actions, losses to the Internal Revenue Service and New York State Department of Taxation and Finance totaled $37,193.00
The plea is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Sentencing is scheduled for August 20, 2015 at 1:00 p.m. before Judge Arcara.
Buffalo Man Pleads Guilty to Setting A Buffalo Business on FireRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ryan Smolinski, 26, of Buffalo, NY, pleaded guilty to arson of a commercial building before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on June 13, 2014, Smolinski, along with co-defendant Lowell Carey and another co-conspirator, went to 349 Ontario St., occupied by WNY Property Contractors, and threw a Molotov cocktail onto the roof of the building and placed anpther Molotov cocktail underneath a garage door on the side of the building.
On the night of June 12, 2014, Smolinski had been drinking with Carey and the co-conspirator at Carey’s house. Smolinski was upset about his father losing his business, Western New York Property Contractors, which his father co-owned with another individual. Smolinski asked Carey and the co-conspirator if they would help him burn the building. They agreed and made the two Molotov cocktails from beer bottles they had been drinking from and using gasoline and a t-shirt as a wick.
Smolinski, Carey, and the co-conspirator proceeded to Western New York Property Contractors in the early morning hours of June 13, 2014 and set off the Lolotov cocktails. The outside of the building was burned in the areas where the Molotov cocktails were located resulting in approximately $2,207.89 in damages.
Charges are pending against Lowell Carey. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, and the Buffalo Fire Department, under the direction of Commissioner Garnell Whitfield.Sentencing is scheduled for August 27, 2015 at 1:00 p.m. before Judge Arcara.
Brooklyn Man Sentenced to Life for Conspiracy to Commit Honor Killings in PakistanRead the Press Release
Earlier today, in federal court in Brooklyn, Mohammad Ajmal Choudhry was sentenced to life in prison. Following a nine-day trial in June and July 2014, Choudhry was convicted of conspiring to commit murder in a foreign country, transmitting threats via interstate communications, and immigration fraud.
“Choudhry’s murderous plan was orchestrated in Brooklyn, and the deadly consequences were felt in Pakistan – but not beyond the reach of the American justice system,” stated Acting United States Attorney Kelly T. Currie. “Today, Choudhry was ordered to spend the rest of his life in prison, a fitting punishment for a man who – in the mistaken name of honor – caused two innocent people to be killed, and their bereaved family members to flee leaving behind their home and the place where their beloved family members are buried.” Mr. Currie expressed his grateful appreciation to U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York (HSI) and the U.S. State Department’s Diplomatic Security Service, who worked closely together to investigate the case.
“There is absolutely no honor in killing innocent victims whose only fault was helping a young woman find freedom in the United States,” said Raymond R. Parmer Jr., Special Agent in Charge, HSI New York. “This case serves as a stern reminder to those who plot crimes to be committed overseas, that our law enforcement and justice systems have global reach and will always be used to make sure justice is served.”
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enable us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said David Schnorbus, Special Agent in Charge of the Diplomatic Security New York Field Office. “With this case, Diplomatic Security sends a strong message to criminals: there is no safe harbor outside the United States.”
Choudhry’s daughter, Amina Ajmal, was held against her will in Pakistan for more than three years by relatives at her father’s direction. During that time, Ajmal, a U.S. citizen, was forced into an arranged marriage with a Pakistani national. Ajmal eventually escaped Pakistan and returned to the United States with the assistance of a Pakistani man, Shujat Abbas, and U.S. State Department officials.
Following Ajmal’s flight from Pakistan in early January 2013, Choudhry and members of his family in Pakistan began a several months-long campaign of threats and intimidation against Abbas’s family members, who hailed from the same village as Choudhry, to avenge the perceived blight on the Choudhry’s honor resulting from Ajmal’s and Abbas’s actions. On January 26, 2013, Choudhry’s brother and other members of his family lured Abbas’s mother and father to a location just outside the village where they fired gunshots repeatedly at their car; Abbas’s mother and father managed to escape the attack unharmed, but spent the weeks that followed living in fear that they and their children would be murdered.
These fears were compounded by a threat that Choudhry communicated directly to Abbas’s father during a telephone call shortly after the shooting took place – “If our daughter will not come back to the home, we will kill all five of you. Otherwise, we will find your son and we’ll kill him. This time we shoot on your car. It was threatening, but next time we will shoot in the chest of all five of you.”
On February 25, 2013, Abbas’s father and twenty-one year old sister were shot and killed in the streets of their village. According to eyewitnesses, Choudhry’s brother and other relatives were observed standing over the victims, holding guns and desecrating the bodies. Choudhry foreshadowed the murders just days before they occurred when he warned his daughter during a recorded telephone call – “Now let me make it clear to you. If you don’t come back, I will kill each and every one of them.”
After Abbas’s father and sister were killed, he and the remaining members of his family living in Pakistan moved to an undisclosed location in the United States to assist the United States government in the prosecution of this case and to escape the ongoing threats of violence against them in Pakistan.
The sentencing proceeding was held before the Hon. William F. Kuntz, II.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Amanda Hector, Richard M. Tucker, and Margaret E. Gandy are in charge of the prosecution.
The Defendant:
MOHAMMAD AJMAL CHOUDHRY
Age: 62
E.D.N.Y. Docket No. 13 CR 150 (WFK)
Baltimore Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake, sentenced Lamont George Thomas, age 34, of Baltimore, Maryland, today to 10 years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Blake enhanced Thomas’ sentence after finding he was a career offender based on three previous felony drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from December 2013 through April 2014, Thomas was a member of a conspiracy to distribute cocaine. As part of the conspiracy, Thomas obtained kilograms of cocaine from a New York supplier. Law enforcement overheard co-defendant Tyrone Bailey discussing drug activity over court-ordered wiretaps on a co-conspirator’s phones.
For example, on March 10, 2014, Bailey was overheard telling a co-conspirator that he was traveling to New York that day to obtain cocaine. As Bailey returned from New York, Maryland State Police conducted a traffic stop of Bailey’s pick-up truck for speeding. Thomas was driving the vehicle and Bailey was the front seat passenger. After a K-9 alerted to the presence of narcotics, law enforcement located an electronically controlled false compartment in the seat back of the rear bench seat. The compartment contained approximately 4.2 kilograms of cocaine. Law enforcement recovered $1,600 in cash and multiple cell phones from Bailey. One of the cell phones recovered was the phone Bailey used to talk to his co-conspirator.
Tyrone Robert Bailey, age 28, of Baltimore, Maryland, pleaded guilty to his role in the conspiracy and was sentenced to 10 years in prison. Thomas and Bailey have been detained since their arrest on March 10, 2014.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department, Maryland State Police, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher J. Romano and Special Assistant U.S. Attorney Christopher Flagg, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Arizona Shopping Center Developer Arrested for Fraud and Bankruptcy Crimes in Alleged Scheme to Conceal $17 Million in AssetsRead the Press Release
An Arizona shopping center developer was arrested today on fraud and bankruptcy charges in connection with a scheme to allegedly conceal his control of approximately $17 million in assets.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John S. Leonardo of the District of Arizona and Inspector in Charge Gary Barksdale of the Criminal Investigations Group of the U.S. Postal Inspection Service made the announcement.
Alex Papakyriakou, aka, Alex Papas, 57, of Phoenix, Arizona, was charged in an indictment in the District of Arizona with eight counts of bank fraud, one count of conspiracy to commit bankruptcy-related offenses, four counts of concealing assets in bankruptcy, one count of making a false oath in bankruptcy and three counts of falsification of records in bankruptcy.
According to allegations in the indictment, Papas and a now deceased business partner organized over 200 limited liability companies from 1997 to 2008 to develop shopping centers and other real estate projects in Arizona and elsewhere, funded by approximately $150 million from investors and $250 million in bank loans. When the companies encountered financial difficulties in 2007 and 2008, Papas allegedly created Cobea Associates, LLC (Cobea), a company nominally owned by his sister in South Africa, but actually operated and controlled by him to shield his valuable family assets from investors and other creditors. Papas then allegedly transferred title of his assets to Cobea, including a luxurious home in Paradise Valley, Arizona, a vacation beach house and a condominium in Laguna Beach, California, and a business entity in Scottsdale, Arizona, which bought and sold expensive vintage collector automobiles.
From June 2008 through approximately June 2013, Papas allegedly deceived various banks regarding the transfer of the assets and his financial condition to both obtain new loans and extend existing loans secured by his assets. Additionally, in 2011, Papas filed for bankruptcy, claiming that he had less than $1 million in assets and over $144 million in liabilities, while allegedly concealing and denying his control of the millions of dollars in assets he transferred to Cobea.
The charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Criminal Investigations Group of the U.S. Postal Inspection Service. The case is being prosecuted by Senior Litigation Counsel Jack Patrick and Trial Attorney Sarah Hall of the Criminal Division’s Fraud Section, with the assistance of Assistant U.S. Attorney Raymond Woo of the District of Arizona.
Ansonia Man Who Made False Report of Police Brutality to the FBI is SentencedRead the Press Release
EDWARD MINERLY, 52, of Ansonia, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to eight months of imprisonment, followed by three years of supervised release, for making a false report of police brutality to the Federal Bureau of Investigation.
According to court documents and statements made in court, on May 18, 2013, officers with the Derby Police Department arrested MINERLY on an outstanding probation violation warrant. On May 31, 2013, MINERLY called the New Haven FBI and spoke with an FBI special agent. In the call, MINERLY alleged that Derby Police officers had recently arrested him for a probation violation and, upon placing him in a holding cell, commenced taunting him, subjecting him to flashing lights and tipping him backwards out of his wheelchair. MINERLY also alleged that Derby Police officers kicked him in the head, arms and upper body.
On June 6, 2013, an FBI special agent interviewed MINERLY in person at a Bridgeport hospital where MINERLY had been admitted. MINERLY again made allegations similar to those made on May 31, 2013, namely, that Derby Police officers had arrested him and, after placing him in a holding cell, picked him out of his wheelchair, threw him into a wall, flashed the lights on and off, and kicked him in the head and beat him.
MINERLY pleaded guilty on November 18, 2014, admitting that the statements he made to the FBI alleging physical abuse by members of the Derby Police Department after his probation violation arrest were false.
“In making a false report of police brutality, this defendant sought to exploit the Justice Department’s steadfast commitment to investigate and prosecute civil rights abuses by members of law enforcement,” stated U.S. Attorney Deirdre M. Daly. “In addition to taxing federal law enforcement resources, these false reports can irreparably damage the reputation of the wrongly accused police department and its officers. The prison term imposed today is an appropriate penalty for this conduct.”
“Any and all allegations of civil rights violations are taken very seriously by the FBI, stated FBI Acting Special Agent in Charge Kevin James Kline. “We will seek prosecution of anyone who deliberately provides false information that diverts agents and resources from other important matters.”
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Henry K. Kopel and First Assistant U.S. Attorney Michael J. Gustafson.
Albion Man Pleads Guilty to Stealing Government PropertyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Justin D. Weese, of Albion, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to converting to his own use machinery belonging to the United States Federal Aviation Administration. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that Weese was an employee of the Federal Aviation Administration. In June 2014, the defendant was tasked with taking a welder, a mower, and a trailer to a scrap yard. Instead, Weese kept the items for his own personal use. In addition, the defendant was supposed to take an all-terrain vehicle to be traded in for a newer model and again, Weese kept the vehicle for his own use.The plea was the culmination of an investigation on the part of Special Agents of the Department of Transportation, Office of Inspector General.
Sentencing is scheduled for August 6, 2015 at 9:00 a.m. Judge Siragusa.
Albanian National Indicted for Alien SmugglingRead the Press Release
SYRACUSE, NEW YORK – On April 30, 2015, Ergys Metashi (34), of Albania, was indicted on one count of bringing an alien into the United States without authorization, announces United States Attorney Richard S. Hartunian and Homeland Security Investigations, Resident Agent in Charge Brian Devine.
The indictment charges Mr. Metashi, a commercial truck driver from Albania who lives and works in Canada, with bringing an alien into the United States from Canada at the port of entry at Alexandria Bay, New York, on March 31, 2015. Mr. Metashi allegedly agreed to smuggle the alien into the United States by hiding the alien in the sleeping compartment of a tractor trailer in exchange for payment. Law enforcement officials at the border found the alien hiding under a blanket and arrested Mr. Metashi. If convicted, Mr. Metashi faces up to ten years in prison. Following a detention hearing, Magistrate Judge Andrew T. Baxter ordered Mr. Metashi to be detained pending trial.
The case is being investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
The charges and allegations announced today are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
10th Street Gang Member Sentenced for RacketeeringRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Derrick Yancey, 27, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations Conspiracy (RICO Conspiracy), was sentenced to 168 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that from 2005 through 2010, the defendant was a member of the 10th Street Gang. As a part of his involvement in the gang, Yancey admitted driving fellow 10th Street Gang members to shoot rival 7th Street Gang members. Specifically, on September 15, 2008, the defendant drove armed 10th Street Gang members to shoot rival 7th Street Gang members, who were standing outside on Busti Avenue in Buffalo. While Yancey drove the car, his 10th Street Gang accomplices shot and killed Omar Fraticello-Lugo, and injured two others. The defendant then drove the shooters from the scene. Brandon Bobbitt was also convicted for his role in the murder of Omar Fraticello-Lugo.
Yancey is one of 44 10th Street Gang members and associates charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Wednesday 6 May 2015
“Operation Check-Mate” Defendant Sentenced to Seven Years in Federal Prison in $800,000 Counterfeit Check SchemeRead the Press Release
PROVIDENCE, R.I. – Ernest Kar, 34, of Providence, was sentenced on Tuesday to 84 months in federal prison for participating in a counterfeit check scheme that defrauded local banks of at least $800,000. Kar was convicted at trial on February 12, 2015, of conspiracy to commit bank fraud and three counts of bank fraud.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Kar to serve a consecutive sentence of 9 months imprisonment for violating the terms of supervised release on a prior federal conviction in South Dakota for passing counterfeit checks. Additionally, Kar was ordered to serve a term of 5 years of supervised upon completion of his prison terms and to pay restitution in the amount of $532,152.
Kar’s sentences are announced by United States Attorney Peter F. Neronha; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Warwick Police Chief Colonel Stephen M. McCartney; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
According to the government’s evidence presented at trial, between October 2010 and January 2014, Kar and his co-conspirators created counterfeit checks via computer, recruited account holders who agreed to have the fake checks deposited into their accounts in exchange for cash, and then made cash withdrawals from the accounts. Many of the counterfeit checks were drawn on the accounts of several legitimate businesses.
On December 16, 2013, during a joint federal and state law enforcement investigation into the fraudulent check scheme, Warwick Police discovered items used to create counterfeit checks, including check stock, a laptop computer, a printer and counterfeit checks, inside a room Kar was staying in at the Motel 6 in Warwick and inside his vehicle. As a result of the investigation, including forensic examinations of the items seized by Warwick Police, a federal arrest warrant was issued for Kar. He was arrested in the Western District of Kentucky on April 28, 2014, and ordered detained and returned to Rhode Island.
Kar is one of nine individuals charged for their participation in the fraudulent check-cashing scheme dubbed “Operation Check-Mate.”Three co-defendants, Jerry Zeah, 25, Garty Togbasi, 28, and John Sumo, 28, all of Providence, previously pleaded guilty to conspiracy to commit bank fraud and are serving sentences of 30 months in federal prison. A fourth co-defendant, Allarick Hill, 37, of Pawtucket, previously pleaded guilty to conspiracy to commit bank fraud is currently serving a sentence of 37 months in federal prison.
Four other co-defendants in this matter are being prosecuted on state charges in Rhode Island Superior Court.
The federal court cases were prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Sandra R. Hebert.
“Operation Check-Mate” was jointly investigated by the United States Secret Service, Warwick Police Department, Providence Police Department, and Rhode Island State Police.
These charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage and aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local law enforcement partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information on the task force, please visit www.StopFraud.gov.
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Contact: 401-709-5357
[email protected]West Seneca Man Pleads Guilty to Extortion ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Thi Nguyen, 40, of West Seneca, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiracy to collect extension of credit by extortion. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that a confidential witness placed bets on NFL football games with Nguyen and other individuals during the 2012 season. On May 7, 2013, the defendant and co-defendant Eric Battistoni told the witness his outstanding debt of $24,000 On May 15. 2013, at a pre-arranged meeting, it was determined the witness would would make $300 payments every Friday until the debt was settled. Battistoni also threatened violence if the witness did not make a payment.
Nguyen and Battistoni were arrested on May 31, 2013. During the execution of a search warrant at Nguyen’s residence, officers seized numerous ledgers used in the defendant’s bookmaking activities.
Charges are pending against Battistoni. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by the Federal Bureau of Investigation.Sentencing is scheduled for August 26, 2015 at 1:00 p.m. before Judge Arcara.
Warwick Chemical Company Pleads Guilty to Violating Clean Air Act for Failing to Develop and Implement Risk Storage PlanRead the Press Release
protect worker and community safety, develop “worst case” response plan
PROVIDENCE, R.I. – Mann Distribution, LLC, of Warwick, also known as Mann Chemical, LLC, pleaded guilty in U.S. District Court in Providence on Tuesday to violating the Clean Air Act by failing to develop and implement a Risk Management Plan to minimize the chance of release of hydrofluoric acid from its Warwick facility, and to protect workers, the community, and emergency and first responders in the event of a chemical release or fire.
U.S. District Court Judge Mary M. Lisi imposed a fine of $200,000 and ordered the company to serve a term of 3 years probation for failing to adhere to Environmental Protection Agency (EPA) regulations which require a Risk Management Plan be developed, including a “worst case” response plan. Mann Chemical is also required to issue a public apology.
The guilty plea and sentence is announced by United States Attorney Peter F. Neronha and Tyler Amon, Special Agent in Charge of EPA's Criminal Investigation Division.
"EPA's Risk Management Program has a clear purpose -- to prevent and prepare for releases of toxic and flammable substances that have the potential for catastrophic consequences. The sentence imposed by the court underscores the importance placed on protecting workers, emergency responders and communities," stated Tyler Amon, Special Agent in Charge of EPA's Criminal Program in Rhode Island.
EPA regulations require facilities storing more than 1,000 lbs. of hydrofluoric acid to develop and implement a Risk Management Plan. An EPA inspection in June 2009 determined that Mann Chemical failed to develop and implement a Risk Management Plan while storing 92 drums of hydrofluoric acid in a concentration of 70%. The inventory indicated that each drum weighed 500 pounds, for a total of 46,000 pounds of hydrofluoric acid.
According to a Center for Disease Control and Prevention website, hydrogen fluoride is a chemical compound that contains fluorine. It can exist as a colorless gas or as a fuming liquid, or it can be dissolved in water. When hydrogen fluoride is dissolved in water, it may be called hydrofluoric acid. Hydrofluoric acid is used mainly for industrial purposes, and may cause skin burns, tissue damage and/or respiratory concerns.
The matter was investigated by the U.S. EPA Criminal Investigation Division with the assistance of the REFP Unit of the Office of Environmental Stewardship with EPA's Region 1 office.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly and Special Assistant United States Attorney Peter Kenyon of the Environmental Protection Agency.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]U.S. Attorney's Office Hosts Annual Meeting of White Collar & Securities Fraud Working GroupRead the Press Release
CHARLOTTE, N.C. – Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina, today announced the annual meeting of the district’s White Collar and Securities Fraud Working Group. The working group was formed in 2011 to combat financial fraud by bringing together key federal, state and local law enforcement and regulatory partners. The working group targets a wide-range of financial schemes, including accounting fraud, Ponzi schemes and other finance-related matters. The annual meeting, which was hosted by U.S. Attorney’s Office in Charlotte, focused on strengthening existing relationships identifying recent trends, discussing ongoing investigations and setting enforcement priorities.
Members of the working group include officials from the U.S. Attorney’s Office (USAO), U.S. Securities & Exchange Commission (SEC), U.S. Commodity Futures Trading Commission (CFTC), Federal Bureau of Investigation (FBI), U.S. Secret Service, Internal Revenue Service-Criminal Investigation (IRS-CI), U.S. Postal Inspection Service, Homeland Security Investigations, Federal Deposit Insurance Corporation, Office of the Inspector General (FDIC-OIG), the North Carolina Attorney General’s Office, the North Carolina Department of Secretary of State, Securities Division, the North Carolina State Bureau of Investigation (SBI), and the Mecklenburg County District Attorney’s Office.
“Since its formation in 2011, the working group has worked collaboratively on a range of investigations leading to the successful prosecution of cases involving a variety of financial fraud schemes,” said Acting U.S. Attorney Rose. “Financial crimes can have devastating effects on the victims of fraud, who are not always able to fully recover their losses. The working group’s accomplishments are a clear message to the public that we are committed to protecting investors from financial scams, safeguarding our financial systems from fraud and going after those who engage in unlawful financial activities,” Rose added.
Examples of prosecutions include:
• United States v. Beaver: Chuckie Beaver pleaded guilty in November 2014 to one count of securities fraud for defrauding more than 30 investors of over $2 million dollars. From June 2012 to April 2014, Beaver induced over 30 victims falsely claiming their money would be invested in “Best Services, Inc.,” a company owned by Beaver and specializing in the repair of industrial electronic equipment. Beaver solicited friends, neighbors, and fellow church members to invest with his company, claiming that his company needed more capital to purchase materials to complete a large number of outstanding repair orders from major corporations. To further the scheme, created and showed his investors bogus documents, including false repair orders indicating significant work activity, fake customer checks, and fake customer emails, giving a false impression he had strong relationships with major corporations. Beaver awaits sentencing.
• United States v. Burks: Paul Burks, president of ZeekRewards, was indicted in October 2014 on federal charges for operating an Internet Ponzi scheme and is awaiting trial. The indictment alleges that from January 2010 to August 2012, Burks was the owner of Rex Venture Group, LLC (RVG), through which he owned and operated Zeekler, a sham Internet-based penny auction company, and its purported advertising division, ZeekRewards (collectively “Zeek”). The indictment alleges that Burks and his conspirators induced victims – including over 1,500 victims in the Charlotte area – to invest more than $850 million in their fraudulent scheme. Dawn Wright Olivares, Zeek’s Chief Operating Officer and Zeek’s Senior Technology Officer, Daniel C. Olivares, pleaded guilty in December 2013 to investment fraud conspiracy. Dawn Wright Olivares also pleaded guilty to tax fraud conspiracy. Both defendants await sentencing.
• United States v. Davey et. al.: Jonathan Davey was sentenced in January 2015 to 21 years in prison for his role in Ponzi scheme that defrauded victims of more than $40 million. Davey, a certified public accountant and registered investment advisor, served as the “Administrator” for numerous hedge funds for the Black Diamond Ponzi Scheme, an investment fraud scheme that deprived 400 victims of more than $40 million. Davey collected over $11 million from victims with his own hedge fund, by falsely stating that he had done proper due diligence on Black Diamond and that he was operating a legitimate hedge fund with significant safeguards. As the Black Diamond scheme began to collapse, Davey and others started a derivative Ponzi scheme and collected over $5 million from new victim investors, and used the new victim money to make payments to old investors and to themselves. Davey was one of 11 conspirators sentenced in the Black Diamond Ponzi scheme. The conspirators’ prison terms ranged from six months to 40 years.
• United States v. Femenia, et. al.: John W. Femenia, a former Wells Fargo investment banker, and three of his conspirators were sentenced in February 2015 to prison terms ranging from 6 to 60 months, arising from their participation on an insider trading conspiracy. From March 2010 to December 2012, Femenia, Roger A. Williams, Kenneth M. Raby, Aaron M. Wens, Frank M. Burgess, Jr., and James A. Hayes conducted illegal insider trading activities based on stolen material non-public information, including information on Wells Fargo and its clients’ upcoming corporate mergers and acquisitions.
• United States v. Gandy et. al.: Terry Gandy was sentenced in December 2014 to 57 months in prison for stealing over $2 million from more than 30 investors. Gandy mainly targeted his former co-workers at Philipp Morris and solicited funds from them, promising rates of 20% to 30% annual rates of return. Gandy used the victims’ money to fund his own personal lifestyle, including luxury hotels, multiple trips to Las Vegas, cash withdrawals at Las Vegas casinos, luxury cars, and to pay purported “profits” to other investors who asked for their money. To support his fraudulent scheme, Gandy provided his victims false account statements depicting bogus and over-inflated account balances. His conspirator, John Reid Perkins, was sentenced to 64 months in jail for his role in the scheme.
• United States v. Hunter: Toby Hunter is scheduled to be sentenced on May 6, 2015, for his role in securities fraud scheme that was part of the racketeering conspiracy related to the Operation Wax House investigation. Hunter and his conspirators targeted professional athletes and doctors as well as their personal and professional acquaintances and convinced them to invest in a series of sham corporations controlled by the Enterprise. They collectively stole over $27 million from more than 50 investor victims, including monies that the investor victims were induced to obtain as loans from financial institutions. The Enterprise used the victims’ money to finance its mortgage fraud operations and to support its members’ lifestyles.
• United States v. Mason: James Mason pleaded guilty in June 2014 to conspiracy to commit securities fraud and tax evasion for running a $5 million foreign currency investment fraud. Mason used most of investor victims’ money for his personal and familial living expenses, including purchasing a $435,000 home for his daughter and a $52,000 Lincoln vehicle for himself. Mason, who did not inform his investors about his 2000 federal wire fraud conviction, unsuccessfully invested a small amount of investor money. He currently awaits sentencing.
• United States v. McDougal: Claude Darrell McDougal pleaded guilty in July 2014 to securities fraud for orchestrating a Ponzi scheme and defrauding his victims of over $2.5 million. From 2006 to 2010, McDougal induced over 25 investors from Charlotte and elsewhere by promising their money would be invested in securities, in the form of promissory notes offered by US Financial Alliance Consultants, LLC (Financial Alliance). McDougal created the Charlotte-based company in 2005, but it was never registered as a dealer of securities in North Carolina or elsewhere. McDougal was also not registered to sell securities in North Carolina or another state. McDougal is awaiting sentencing.
• United States v. Rand: Michael Rand was sentenced in April 2015 to 120 months in prison on conspiracy and obstruction of justice charges in connection with federal investigation into a seven-year accounting fraud conspiracy at Beazer Homes USA, Inc. (“Beazer”). Rand was Beazer’s Chief Account Officer and directed an accounting fraud conspiracy to falsify reported profits at Beazer by lying to Beazer’s auditors, fraudulently achieving earnings targets, falsifying Beazer’s books and records, and deceiving the public by boosting and lowering company earnings. Rand was convicted of wire fraud conspiracy, conspiracy to commit securities fraud, to make false and misleading statements to auditors and accountants, to circumvent Beazer’s internal accounting controls, and to falsify the books, records, and accounts of Beazer.
• United States v. Shepherd: James Alexander Shepherd was sentenced in February 2015 to 84 months in prison for defrauding more than 100 investors of over $6 million. From 2006 to 2013, Shepherd defrauded investors, primarily in Union County, of approximately $6 million. Shepherd carried out the fraud by promising his victims returns on their investments in funds he owned and controlled, among other things. In about 2006, Shepherd began misappropriating some of the investors’ money and used it to pay other investors, to trade in his personal accounts, and to fund the operations of a newsletter he distributed nationwide. Shepherd also used the money to fund his personal lifestyle, including to pay for a $2 million home.
• United States v. Wright: C. David Wright was sentenced to 48 months in October 2014 for running a $1 million Ponzi scheme that he referred to as a “Commodity Investment Group.” Wright told investors that he invested in hedge funds, commodities, and Quick Trip service stores. In reality, Wright diverted victim money to a side-business he owned, used it to make Ponzi payments, and to fund his own lifestyle.
• Bank of America Residential Mortgage-Backed Securities (RMBS): In addition to collaborating on criminal enforcement matters, the U.S. Attorney’s Office and the SEC brought a historic civil fraud suit against Bank of America in August 2013 concerning an $850 million mortgage securitization. As part of the historic $16.65 billion settlement reached in August 2014, Bank of America acknowledged that it marketed this securitization as being backed by bank-originated “prime” mortgages that were underwritten in accordance with its underwriting guidelines, when, in fact, Bank of America knew that a significant number of loans in the security were “wholesale” mortgages originated through mortgage brokers. The bank sold these RMBS to federally backed financial institutions without conducting any third party due diligence on the securitized loans and without disclosing key facts to investors in the offering documents filed with the SEC.
“Our annual meeting provides an opportunity to renew and strengthen ties with our regulatory and law enforcement partners. As a member of the group, I am proud of the work we’ve accomplished,” said Assistant U.S. Attorney (AUSA) Mark T. Odulio, who represents the U.S. Attorney’s Office in the working group.
For tips on how to identify investor scams and for additional information on investor fraud please visit: www.stopfraud.gov.
U.S. Attorney Ortiz Announces Your Future, Your Decision Essay WinnersRead the Press Release
On April 15, 2015, Woodland Academy in Worcester hosted U.S. Attorney Carmen M. Ortiz for the Your Future, Your Decision Program. More than 100 fifth and sixth-grade students attended the event which focused on the importance of good decision making. A resource fair and student essay contest was held in concert with the event. U.S. Attorney Ortiz congratulates the following top three essay contest winners, who were selected by the teaching staff at Woodland Academy:
- Daniel
- Luis
- Rut