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15 June 2015
Troy Man Arrested for Stealing over $12k in Bank RobberyRead the Press Release
Montgomery, Ala. – Shamyer Suddith, 34, of Troy, Alabama was arrested on Thursday, June 11, 2015 after being indicted for armed bank robbery and using a firearm while committing a crime of violence, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to court documents, in October of 2013, Suddith and an accomplice robbed the BancorpSouth, Inc. branch location in Lowndes County, Alabama and stole over $12,000. Evidence indicates that Suddith used a firearm during this robbery.
If convicted, Suddith faces up to 20 years in federal prison for the bank robbery, and an additional sentence of at least 7 years for using the firearm.
The case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, with assistance from the Crenshaw County Sheriff’s Office, the Troy Police Department, the Pike County Sheriff’s Office, and the Lowndes County Sheriff’s Office. Assistant United States Attorney Jonathan Ross is prosecuting the case.
Topeka Man Sentenced in Two Armed RobberiesRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to 11 years in federal prison on federal armed robbery charges, U.S. Attorney Barry Grissom said.
Henry Earl Sirvira, 47, Topeka, Kan., entered a plea of no contest to two counts of commercial robbery and one count of brandishing a firearm during a robbery. During the plea hearing, prosecutors told the judge that on July 29, 2013, Sirvira and co-defendant Quartez Norwood robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka. Sirvira pointed a handgun at an employee and threatened to kill him unless he opened the safe.
On Aug. 3, 2013, Sirvira and Norwood robbed the Family Dollar Store at 2616 S.E. 6th Street in Topeka. Norwood pointed a gun at the clerk while Sirvira assaulted a patron in another part of the store.
Co-defendants include:
Quartez Norwood, who was sentenced to 180 months.
Henry Lavelle Davis, who was sentenced to 84 months.
Robert Wayne Redmond, who was sentenced to 60 months.
Xavier Leron Sims, who was sentenced to 35 months.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Topeka Man Pleads Guilty in Valero Robbery, ShootingRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded guilty Monday to a federal charge of robbing a Valero gas station and shooting the clerk, U.S. Attorney Barry Grissom said.
Corey Eugene Johnson, 41, Topeka, Kan., pleaded guilty to one count of robbery. In his plea, he admitted that on July 28, 2013, he robbed a Valero gas station at 1161 S.W. Gage in Topeka.
Johnson was carrying a .40 caliber handgun when he entered the store and demanded money from the cash register. Seeing a customer at the counter, Johnson ordered him to the floor and put his foot on the customer’s head. When a clerk refused to turn over money from the cash register, Johnson shot the clerk several times. Then Johnson ordered the customer to open the cash register. Johnson fled the store in a black Monte Carlo. Police found the wounded clerk, who was taken to the hospital and survived the shooting.
Sentencing is set for Aug. 24. He faces a maximum penalty of 20 years and a fine up to $250,000.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Texas Woman Pleads Guilty to Bath Salts ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 36-year-old Texas woman pleaded guilty today to conspiring with others to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts,” before U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, the defendant, Trieu Thuy Duong, of Houston, Texas, admitted to distributing alpha-pvp to customers in at least 32 states, including Pennsylvania, over various web sites during 2011 through March 2014.
Trieu Thuy Duong was indicted by a federal grand jury in March 2014, as a result of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police.
As part of her plea, the defendant consented to the forfeiture of a residence in Texas valued at approximately $300,000, silver coins valued at more than $260,000, four bank accounts containing over $200,000, two vehicles, over $7000 in cash and more than $17,000 in uncashed money orders, and two firearms.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sacramento Man Transporting 19 Pounds of Methamphetamine Through Fresno County Pleads GuiltyRead the Press Release
FRESNO, Calif. —Wenceslao Cruz Ochoa, 35, of Sacramento, pleaded guilty today to possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ochoa was driving northbound on Interstate 5 when he was stopped for driving too closely to another vehicle. During the stop, the deputy’s canine alerted to the presence of a controlled substance. Ochoa’s vehicle was search and 19 pounds of methamphetamine was found in a suitcase.
This case is the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Ochoa is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on September 14, 2015. Ochoa faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sacramento Man Charged with Attempting to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment against Robert Charles Chavez, 29, of Sacramento, on Thursday, June 11, 2015, charging him with one count of attempted production of child pornography and three counts of receiving child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, in January 2014, Chavez offered to pay a person approximately $66 if that person would sexually abuse a child and allow him to watch the abuse via webcam. In addition, between March 2, 2015, and March 18, 2015, Chavez used the Internet to download images of prepubescent children engaged in sexually explicit conduct. Chavez is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Kendall J. Newman.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento County Sheriff’s Office with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
If convicted of attempted production of child pornography, Chavez faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. If convicted of receipt of child pornography, he faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Pennsylvania Corporation Charged with Harboring of Illegal AliensRead the Press Release
U.S. Attorney Kenneth A. Polite announced that M.D. BASCIANI AND SONS, INC., a corporation domiciled in Pennsylvania, was charged today in a one-count Bill of Information with harboring illegal aliens at the Red Hill Mushroom Farm in Independence, Louisiana, which is leased by the defendant.
According to the Bill of Information, M.D. BASCIANI AND SONS, INC. concealed, harbored, and shielded from detection several of its employees at the Red Hill Mushroom Farm, knowing that such employees were aliens unauthorized to work in the United States. The farm’s manager and another of its supervisory employees have already pled guilty to a pattern and practice of employing illegal aliens at the farm.
If convicted, M.D. BASCIANI AND SONS, INC. faces a sentence of probation of not less than one year or more than five years, and a maximum fine of $500,000. If convicted, the defendant also faces the forfeiture of its gross proceeds from the offense.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
M.D. Basciani and Sons, Inc. Bill of Information (1.15 MB)
Oakland Bus Driver Sentenced to Prison in Tax Fraud SchemeRead the Press Release
OAKLAND – Akysha Rockwell was sentenced on June 12, 2015, to 18 months in prison and ordered to pay restitution of $285,034 for her role in a false tax refund scheme, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Rockwell, 39, of Oakland, pleaded guilty on January 16, 2015, to conspiracy to file false claims and one count of filing false claims, in violation of a 18 U.S.C § 286 and 287. In pleading guilty, Rockwell admitted that, during late 2011 and early 2012, Rockwell’s boyfriend at the time taught her how to prepare and electronically file fraudulent income tax returns, targeting people at their church and drug-rehabilitation clinics with the promise of an “Obama Stimulus,” a non-existent government program fabricated to attract clients.
As part of their scheme, Rockwell and her former boyfriend prepared tax returns that claimed false income and false occupations, regardless of the information that was provided to them by their clients. Rockwell’s former boyfriend acquired an identification information form (ID-Doc), to obtain the means of identification of actual persons to prepare and electronically file false federal individual income tax returns, claiming fraudulent tax credits and fraudulent tax refunds. Together, Rockwell and her former boyfriend prepared 116 tax returns in 2012. All the tax returns fraudulently claimed one of the following sources of “Household Employee” income: babysitter, caretaker, cleaning person, domestic worker, housekeeper, maid, and yard-worker. In addition, even though a majority of the clients were unemployed or disabled with no income, Rockwell filed income tax returns reporting false earned income and false refundable education credits. Rockwell and her former boyfriend received at least $226,903 by filing false and fraudulent tax refund claims.
Rockwell received a portion of the false tax refunds and spent it on personal items such as clothing, hotels, rental cars and illegal drugs.
After ending their relationship, Rockwell continued to file numerous false tax returns from her residence in Oakland. She used the same fake “Obama Stimulus” program to attract victims. She obtained at least $58,131 by filing these false and fraudulent tax refund claims.
This sentenced was handed down by The Honorable Jon Tigar, U.S. District Court Judge. Judge Tigar also sentenced Rockwell to a three year period of supervised release. The defendant will begin serving the sentence on September 8, 2015.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
New Berlin Contractor Agrees to Plead Guilty to Scheme to Underpay Wages – Will Pay $1.6 Million in Restitution and DamagesRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that Scott Watry of New Berlin, Wisconsin, has agreed to plead guilty to conspiring to defraud the United States. Mr. Watry is the president and owner of Watry Homes, LLC, a contractor alleged to have underpaid wages on federally funded housing projects. Mr. Watry and Watry Homes, LLC, have also agreed to settle related civil False Claims Act allegations. In total, Mr. Watry and Watry Homes, LLC, will pay over $1.6 million in restitution and damages.
Watry Homes, LLC, does roofing, siding, and carpentry work on private residences, commercial projects, and public housing projects in Wisconsin. From 2011 to 2012, Watry Homes performed contracts worth approximately $4.7 million on the Westlawn public housing project in Milwaukee. Because the federal government contributed funds to the Westlawn project, it was subject to the Davis Bacon Act. The Act requires contractors to pay workers prevailing wages in order to protect local wage rates. The Act further requires contractors to submit weekly certified payroll reports.
According to the plea agreement, Mr. Watry conspired with others to pay workers on the Westlawn project hourly wage rates that were considerably lower than the legally required wage rate. To conceal the scheme, the certified payroll reports consistently understated the number of hours worked to compensate for the overstatement of the wage rate being paid. In some cases, the certified payroll reports falsely listed names of purported employees who did not actually work at the site while crew leaders would pay out lower wages to the actual workers. In mid-2012, the United States Department of Labor (DOL) began investigating Watry Homes. In response, Mr. Watry and co-conspirators provided false information to investigators and encouraged workers likewise to obstruct the investigation.
By an information and plea agreement filed today, Mr. Watry has agreed to plead guilty to conspiring to defraud the United States and obstruct the investigation. He has also agreed to pay $659,822 in restitution to workers who were underpaid on the Westlawn project. DOL will be responsible for distributing the restitution to individual workers.
In the accompanying civil settlement announced today, Mr. Watry and Watry Homes, LLC, have agreed to pay $1,000,490 in damages for violations of the False Claims Act. The civil settlement resolves a lawsuit filed under the qui tam—or whistleblower—provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring a civil action on behalf the United States and share in any recovery. The qui tam complaint alleges that Watry Homes, LLC, submitted false certified payroll reports to support claims for payment on the Westlawn project as well as public housing projects in Beloit and Waukesha that were also subject to the Davis Bacon Act. As part of the resolution, the whistleblower will receive a share of the settlement.
“The joint criminal and civil resolutions that we are announcing today reflect the seriousness with which the federal government, including the Departments of Labor, Housing and Urban Development, and Justice enforce the rules that govern contracting on public projects, including the payment of all required wages,” said Mr. Santelle. “Contractors should take note that public funds come with strict requirements to pay workers every dollar they are due and to comply with all applicable rules. Under the authority of criminal statutes and the False Claims Act, we will continue to pursue wrongdoing in public contracting vigilantly.”
FBI Special Agent in Charge Robert J. Shields, Jr. added, “This case is an excellent example of how law enforcement agencies, in concert with concerned citizens, can effectively collaborate to combat fraud, waste and abuse in government-funded projects designed to help hardworking Americans.”
James Vanderberg, Special Agent in Charge of the Chicago Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, U.S. Department of Labor, stated, “The U.S. Department of Labor, Office of Inspector General is committed to enforcing the Davis-Bacon Act, which requires that the prevailing wage is paid to workers in government projects. We appreciate the assistance and cooperation of the United States Attorney’s Office, Civil and Criminal Divisions; the Federal Bureau of Investigation; the Department of Housing and Urban Development, Office of Inspector General; and the U.S. Department of Labor’s Wage and Hour Division.”
HUD Office of Inspector General Special Agent in Charge, Brad Geary commented, “This case is an example of how the U. S. Department of Housing and Urban Development, Office of Inspector General for Investigation, working with our law enforcement partners and the U. S. Attorney’s Office will pursue individuals who victimize HUD’s public housing stock and ultimately affect our nation’s neediest families.”
Mr. Santelle especially commended the Federal Bureau of Investigation and the Offices of Inspector General for DOL and the Department of Housing and Urban Development, as well as the Wage & Hour Division of DOL, for the investigative efforts and accomplishments that led to today’s resolutions. The cases were handled by Assistant United States Attorneys Mel S. Johnson and Matthew D. Krueger.
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Navy Civilian Engineer Pleads Guilty to Attempted EspionageRead the Press Release
Defendant Attempted to Pass Navy Supercarrier Schematics to Egypt
Mostafa Ahmed Awwad, 36, of Yorktown, Virginia, pleaded guilty today to charges of attempted espionage relating to his attempt to provide schematics of the nuclear aircraft carrier USS Gerald R. Ford to Egypt while serving as a Navy engineer. Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Susan Triesch of the Naval Criminal Investigative Service (NCIS) Norfolk, Virginia, Field Office made the announcement.
“Awwad pleaded guilty to leveraging his position of trust within the Navy to share the schematics of the USS Gerald R. Ford nuclear aircraft carrier with what he believed to be a foreign government,” said Assistant Attorney General Carlin. “The National Security Division will continue to pursue and bring to justice those who abuse their access to sensitive defense information. I would like to thank all of the special agents, prosecutors and other personnel whose work led to the guilty plea in this case.”
“Today, Mr. Awwad is being held responsible for attempting to steal the valuable plans for the USS Ford and to provide them to a foreign government,” said U.S. Attorney Boente. “This office is committed to safeguarding our nation’s sensitive defense information, and we will bring to justice those who seek to steal it. I want to commend our partners at the FBI Norfolk and NCIS Norfolk for their excellent work on this case.”
“This case underscores the persistent national security threat posed by insiders stealing critical national defense information in order to benefit foreign governments,” said Assistant Director Coleman. “Fortunately, the aggressive counterintelligence posture of the FBI and our interagency partners enabled the identification and neutralization of Awwad’s efforts before he transferred any information to a foreign power. Working together, we prevented the loss of billions of dollars in research costs and the exposure of potential vulnerabilities to our newest generation of nuclear aircraft carrier.”
“This case demonstrates that NCIS aggressively pursues anyone who would endanger our national security by targeting critical platforms like the Ford class carrier,” said Special Agent in Charge Triesch. “The close collaboration between NCIS and the FBI thwarted this insider threat and we will continue cooperative efforts to safeguard those who protect and serve in the Department of the Navy.”
According to court documents, Awwad began working for the Department of the Navy in February 2014 as a civilian general engineer in the Nuclear Engineering and Planning Department at the Norfolk Naval Shipyard. Based on a joint investigation, an undercover FBI agent contacted Awwad by telephone on Sept. 18, 2014, and asked to meet him the following day. Without seeking additional information from the caller, Awwad agreed. The next day, Awwad met with the undercover FBI agent, who was posing as an Egyptian intelligence officer, in a park in Hampton, Virginia. During the meeting, Awwad claimed it was his intention to utilize his position with the U.S. Navy to obtain military technology for use by the Egyptian government, including but not limited to the designs of the USS Gerald R. Ford nuclear aircraft carrier, a new Navy “supercarrier.” Awwad agreed to conduct clandestine communications with the undercover FBI agent, and to conduct “dead drops” in a concealed location in the park.
On Oct. 9, 2014, Awwad and the undercover FBI agent met at a hotel where Awwad described a detailed plan to circumvent U.S. Navy computer security by installing software on his restricted computer system that would enable him to copy documents without causing a security alert. At this time, Awwad also provided the undercover FBI agent with four Computer Aided Drawings of a U.S. nuclear aircraft carrier downloaded from the Navy Nuclear Propulsion Information system. During the discussion, Awwad indicated his understanding that the drawings would be sent to and used in Egypt. Awwad also asked the undercover FBI agent for $1,500 to purchase a pinhole camera that he would wear around the shipyard to photograph restricted material. At the conclusion of the meeting, Awwad agreed to provide the undercover FBI agent with passport photos which would be used to produce a fraudulent Egyptian passport so that Awwad could travel to Egypt without alerting U.S. government officials.
On Oct. 23, 2014, Awwad traveled to the pre-arranged dead drop site situated on a secluded hiking trail and utilized a concealed container disguised in a hole in the ground. He retrieved $3,000 before placing an external hard drive and two passport photos inside.
On Dec. 5, 2014, Awwad and the undercover agent met in the Hampton Roads, Virginia, area. During this meeting, Awwad stated that he planned to travel to Egypt. Awwad subsequently said he wanted to meet with “high ranking” Egyptian intelligence and military officials in Cairo. Awwad also stated during the meeting that he had copied all of the schematics. During the meeting, Awwad provided the undercover FBI agent a thumb drive that contained more schematics of the USS Gerald R. Ford. The undercover FBI agent handed Awwad the “escape plan” – in actuality a manila envelope with no real plan inside – along with $1,000 in currency, shortly before Awwad was arrested.
The schematics of the USS Gerald R. Ford that Awwad provided are information related to the national defense of the United States. The USS Gerald R. Ford, which is currently under construction, is the first in a new class of aircraft carriers. When completed, the USS Ford will be the most advanced aircraft carrier in the world, with approximately 4,000 sailors on board. The schematics contain Naval Nuclear Propulsion Information and they are marked with the handling restriction “NOFORN,” which means they are not releasable to foreign persons.
Awwad pleaded guilty to a criminal information charging him with attempted espionage, and his plea was accepted by U.S. District Court Judge Raymond A. Jackson of the Eastern District of Virginia. He will be sentenced on Sept. 21, 2015. The maximum penalty for this offense is life in prison, but the plea agreement recommends that Awwad receive a sentence in the range of eight to 11 years. 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.
This case was investigated by the FBI’s Norfolk Field Office and NCIS, in cooperation with the Department of the Navy. The case is being prosecuted by Assistant U.S. Attorneys Benjamin L. Hatch and Joseph E. DePadilla of the Eastern District of Virginia, and Senior Trial Attorney Heather M. Schmidt of the Justice Department’s National Security Division.
Navy Civilian Engineer Pleads Guilty to Attempted EspionageRead the Press Release
Defendant Attempted to Pass Navy Supercarrier Schematics to Egypt
NORFOLK, Va. – Mostafa Ahmed Awwad, 36, of Yorktown, Virginia, pleaded guilty today to charges of attempted espionage relating to his attempt to provide schematics of the Navy’s newest nuclear aircraft carrier, the USS Gerald R. Ford, to Egypt.
“Today, Mr. Awwad is being held responsible for attempting to steal the valuable plans for the USS Ford and to provide them to a foreign government,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This office is committed to safeguarding our nation’s sensitive defense information, and we will bring to justice those who seek to steal it. I want to commend our partners at the FBI Norfolk and NCIS Norfolk for their excellent work on this case.”
“Awwad pleaded guilty to leveraging his position within the Navy to share the schematics of the USS Gerald R. Ford nuclear aircraft carrier with what he believed to be a foreign government,” said John Carlin, Assistant Attorney General for National Security. “The National Security Division will continue to pursue and bring to justice those who abuse their access to sensitive defense information. I would like to thank all of the special agents, prosecutors and other personnel whose work led to the guilty plea in this case.”
“This case underscores the persistent national security threat posed by insiders stealing critical national defense information in order to benefit foreign governments,” said Randall C. Coleman, Assistant Director of the FBI’s Counterintelligence Division. “Fortunately, the aggressive counterintelligence posture of the FBI and our interagency partners enabled the identification and neutralization of Awwad’s efforts before he transferred any information to a foreign power. Working together, we prevented the loss of billions of dollars in research costs and the exposure of potential vulnerabilities to our newest generation of nuclear aircraft carrier.”
"This case demonstrates that NCIS aggressively pursues anyone who would endanger our national security by targeting critical platforms like the Ford class carrier,” said Susan Triesch, Special Agent in Charge of the NCIS Norfolk Field Office. “The close collaboration between NCIS and the FBI thwarted this insider threat and we will continue cooperative efforts to safeguard those who protect and serve in the Department of the Navy."
According to court documents, Awwad began working for the Department of the Navy in February 2014 as a civilian general engineer in the Nuclear Engineering and Planning Department at the Norfolk Naval Shipyard. Based on a joint investigation, an undercover FBI agent contacted Awwad by telephone on Sept. 18, 2014, and asked to meet him the following day. Without seeking additional information from the caller, Awwad agreed. The next day, Awwad met with the undercover FBI agent, who was posing as an Egyptian intelligence officer, in a park in Hampton, Virginia. During the meeting, Awwad claimed it was his intention to utilize his position with the U.S. Navy to obtain military technology for use by the Egyptian government, including but not limited to the designs of the USS Gerald R. Ford nuclear aircraft carrier, a new Navy “supercarrier.” Awwad agreed to conduct clandestine communications with the undercover FBI agent, and to conduct “dead drops” in a concealed location in the park.
On Oct. 9, 2014, Awwad and the undercover FBI agent met at a hotel where Awwad described a detailed plan to circumvent U.S. Navy computer security by installing software on his restricted computer system that would enable him to copy documents without causing a security alert. At this time, Awwad also provided the undercover FBI agent with four Computer Aided Drawings of a U.S. nuclear aircraft carrier downloaded from the Navy Nuclear Propulsion Information system. During the discussion, Awwad indicated his understanding that the drawings would be sent to and used in Egypt. Awwad also asked the undercover FBI agent for $1,500 to purchase a pinhole camera that he would wear around the shipyard to photograph restricted material. At the conclusion of the meeting, Awwad agreed to provide the undercover FBI agent with passport photos which would be used to produce a fraudulent Egyptian passport so that Awwad could travel to Egypt without alerting U.S. government officials.
On Oct. 23, 2014, Awwad traveled to the pre-arranged dead drop site situated on a secluded hiking trail and utilized a concealed container disguised in a hole in the ground. He retrieved $3,000 before placing an external hard drive and two passport photos inside.
On Dec. 5, 2014, Awwad and the undercover agent met in the Hampton Roads, Virginia, area. During this meeting, Awwad stated that he planned to travel to Egypt. Awwad subsequently said he wanted to meet with “high ranking” Egyptian intelligence and military officials in Cairo. Awwad also stated during the meeting that he had copied all of the schematics. During the meeting, Awwad provided the undercover FBI agent a thumb drive that contained more schematics of the USS Gerald R. Ford. The undercover FBI agent handed Awwad the “escape plan” – in actuality a manila envelope with no real plan inside – along with $1,000 in currency, shortly before Awwad was arrested.
The schematics of the USS Gerald R. Ford that Awwad provided are information related to the national defense of the United States. The USS Gerald R. Ford, which is currently under construction, is the first in a new class of aircraft carriers. When completed, the USS Ford will be the most advanced aircraft carrier in the world, with approximately 4,000 sailors on board. The schematics contain Naval Nuclear Propulsion Information and they are marked with the handling restriction “NOFORN,” which means they are not releasable to foreign persons.
Awwad pleaded guilty to a criminal information charging him with attempted espionage, and his plea was accepted by U.S. District Court Judge Raymond A. Jackson of the Eastern District of Virginia. He will be sentenced on Sept. 21, 2015. The maximum penalty for this offense is life in prison, but the plea agreement recommends that Awwad receive a sentence in the range of eight to 11 years. 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.
This case was investigated by the FBI’s Norfolk Field Office and the Naval Criminal Investigative Service, in cooperation with the Department of Navy. Prosecuting the case on behalf of the United States are Assistant U.S. Attorney’s Benjamin L. Hatch and Joseph E. DePadilla, and Department of Justice, National Security Division Counterespionage Senior Trial Attorney Heather M. Schmidt.
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. 2:14-cr-163.
Multi-State Drug Trafficking Organization Indicted Again in Operation ArmageddonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned a superseding indictment against 10 defendants in Operation Armageddon, an extensive investigation aimed at a drug trafficking network based in Baton Rouge, with alleged ties to the Sinaloa Cartel in Mexico.
The superseding indictment sets forth over 50 pages of allegations, charging defendants with allegedly participating in multi-state conspiracies involving the trafficking of high-potency heroin, methamphetamine, cocaine, and marijuana, as well as money laundering, the use of the mail in aid of racketeering, and the possession and use of firearms, including an AR/15 assault weapon, in furtherance of drug trafficking. According to the superseding indictment, two of the defendants allegedly discussed how the potency of the heroin was such that it had to be diluted or else the user would be killed.
The superseding indictment adds multiple charges and a defendant to the original indictment. The following ten (10) defendants are charged in the superseding indictment. If convicted, these defendants face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity.
- Oscar Machado-Galeana, age 32, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine and heroin; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of the mails in aid of racketeering enterprise; and forfeiture.
- Alexander P. Nava, age 45, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine, and marijuana; conspiracy to launder monetary instruments; distribution of methamphetamine, heroin, and marijuana; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; unlawful use of the mails in aid of racketeering enterprise; possession of a firearm by person convicted of domestic violence; and forfeiture.
- Lori Lee Landry, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Devin Joel Martin, age 25, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Gregory John Landry, age 39, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Victor Hugo Quinonez-Sandoval, age 36, of Breaux Bridge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Roy Martin Herrera Romero, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; distribution of methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
- Mervin Ronald Spencer, age 24, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; and forfeiture.
- Marco Antonio Lopez-Sandoval, age 20, of California, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; conspiracy to launder monetary instruments; unlawful use of the mails in aid of racketeering enterprise; and forfeiture.
- Kyle J. Tidwell, age 38, of Baton Rouge, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine, heroin, cocaine and marijuana; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and forfeiture.
U.S. Attorney Green stated: “As our nation continues to examine ways to tackle the many challenges associated with illegal drugs, we will and must remember this hard reality: Drug traffickers often use brutal violence in our communities to enforce their market share and to ensure their collection efforts. Those traffickers will find no safe harbor or relief in this district. They will instead find a united law enforcement community fully prepared to aggressively investigate and prosecute their wrongdoing. ”
DEA Assistant Special Agent in Charge Joseph W. Shepherd stated: “DEA-Baton Rouge will continue to purse aggressive and ambitious enforcement efforts to send a message to drug trafficking organizations that we will not tolerate the collateral damage inflicted on our communities as a result of their illicit drug activities. We will continue to work closely with our federal, state, and local counterparts and community leaders to address this ongoing drug enforcement priority.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the East Baton Rouge Parish Sheriff’s Office, the Internal Revenue Service-Criminal Investigations (IRS-CI), the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, and the Ascension Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Robert W. Piedrahita and Kevin Sanchez.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Mexican National Sentenced to Federal Prison for Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Tomas Bustamante-Machado, 51, a Mexican national who had been illegally residing in Phoenix, Ariz., was sentenced today in Albuquerque, N.M., to 41 months in federal prison for his heroin trafficking conviction. He will be deported after he completes his prison sentence.
Bustamante-Machado was arrested on Jan. 16, 2015, in Bernalillo County, N.M., after the New Mexico State Police found approximately 1286 grams (2.8 pounds) of heroin hidden in his vehicle during a routine traffic stop. The heroin was concealed in an altered compartment in the back seat of Bustamante-Machado’s vehicle. According to court documents, at the time of his arrest, Bustamante-Machado was out of prison on an immigration bond pending a deportation hearing. Bustamante-Machado subsequently was indicted on Feb. 10, 2015, and charged with possession of heroin with intent to distribute.
On March 17, 2015, Bustamante-Machado pled guilty to the indictment and admitted that on Jan. 16, 2015, while traveling from Phoenix, he was stopped by law enforcement and found to be in possession of more than one kilogram of heroin which had been concealed in a secret compartment in the vehicle he was driving. He further admitted that the heroin was intended for another person.
This case was investigated by the Border Enforcement Security Task Force (the BEST Team) of the Albuquerque office of HSI and the New Mexico State Police.
The case was prosecuted by Assistant U.S. Attorney William J. Pflugrath as pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Mexican Man Sentenced for Packing a Gun While Drug TraffickingRead the Press Release
McALLEN, Texas ‐ Jesus Correa-Gonzalez, 42, of Miguel Aleman, Tamaulipas, Mexico, has been ordered to federal prison following his conviction of possession with intent to distribute approximately 125 kilograms of marijuana and unlawfully carrying a firearm during a drug trafficking crime, announced U.S. Attorney Kenneth Magidson. Correa pleaded guilty April 2, 2015.
Today, U.S. District Judge Randy Crane, who accepted the guilty plea, handed Correa a 130-month sentence to be immediately followed by four years of supervised release.
In 2010, Correa maintained an apartment in Edinburg, out of which he sold marijuana. He kept a Taurus .45 caliber pistol for his protection and the protection of his drug business. On the evening of Oct. 28, 2010, individuals arrived at the apartment and stole some marijuana. They returned hours later to steal the remaining 125 kilograms. As they entered the apartment, shots were exchanged between Correa and the other individuals. In the gun fight, Correa’s brother was killed and other individuals were seriously injured.
Correa will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Edinburg Police Department. Assistant U.S. Attorney Steven Schammel and Kristen Rees prosecuted the case.
May Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 22 indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Elmar Argueta Luna, age 25, of Omaha, is charged with illegal reentry into the United States on or about April 27, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jacob J. Barrickman and Brianna M. Hampton, are charged with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or April 30, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Heather Baxter, age 36, of Omaha, is charged with assault with a dangerous weapon on or about July 16, 2014. The maximum possible penalty if convicted is 10years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kenneth R. Carufel, age 27, of Santee, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with assault causing serious bodily injury on or about May 6, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Carufel with assault on a juvenile less than 16 years of age causing substantial bodily injury on or about May 6, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
- Gilberto Ceballos Aguiano, aka Juan Aroyo, age 49, and Francisco Hernandez-Perez, aka Jencarlos F. Josias and/or Hugo Rodriguez-Carbajal, age 28, both of Omaha, are charged in an eight-count Indictment. Count I of the Indictment alleges that from on or about February 17, 2015, and continuing until on or about May 13, 2015 the defendants did conspire to distribute counterfeit identification documents. The maximum possible penalty if convicted is 5 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment. Counts II and III of the Indictment allege that on or about February 24, 2015 and on or about March 30, 2015, Aguiano distributed counterfeit social security cards. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Counts IV, V, and VIII of the Indictment charges Hernandez-Perez with identity theft on or about February 24, March 1, and March 30, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a 3 year term of supervised release, and a $100 special assessment for each count. Count VI of the Indictment charges Hernandez-Perez with false representation of a social security number on or about May 12, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count VII of the Indictment charges Hernandez-Perez with falsely representing a Social Security account number as belonging to him for the purpose of obtaining a benefit to which he was not entitled on or about March 1, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Chase Alexander Cleveland, age 29, of Winnebago, is charged with aggravated sexual abuse by force or threat on or about February 3, 2015. The maximum possible penalty if convicted is Life imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* James S. Coder, age 33, of Bellevue, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt and distribution of child pornography from between on or about August 30, 2011 and continuing to on or about February 20, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Coder with possession of child pornography on and before March 3, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Eric Conn, age 46, of Stamford, Nebraska, is charged with felon in possession of a firearm on or about May 2, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Raul Espinoza-Amezquita, age 29, of Lincoln, is charged with illegal reentry into the United States on or about May 11, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Gabriel Figueroa Martinez, 37, of Lincoln, is charged with illegal reentry into the United States on or about May 13, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Roberto Jimenez-Diaz, age 44, of Omaha, is charged with illegal reentry into the United States on or about April 22, 2015, following deportation. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Jesus Martinez, 34, of Lincoln, is charged with illegal reentry into the United States on or about May 13, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Victor Ray Miller, 23, of Macy, is charged with felony child abuse on or about October 27, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Mikel Miller, age 51, of Fremont, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with receipt and distribution of child pornography from on or about March 3, 2015, and continuing to on or about April 21, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Miller with possession of child pornography on or before April 21, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment.
* Adrean Newson, 24, of Omaha, is charged with possession of counterfeit currency on or about January 5, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Williams Perez-Fernandez, 36, of Lincoln, is charged with illegal reentry into the United States on or about May 6, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Lazaro Rivero-Mateo, 39, of Omaha, is charged with illegal reentry into the United States on or about April 22, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Koren Russell, 31, of Walthill, Nebraska is charged with negligent child abuse on or about May 20, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Juan Saquic Velasquez, 28, of Grand Island, is charged with illegal reentry into the United States on or about April 21, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Kendell Tealer, age 28, is charged in a two-count Second Superseding Indictment. Count I of the Indictment charges the defendant with committing a violent crime, specifically murder, in aid of racketeering activity on or about December 18, 2010. The maximum possible penalty if convicted is Death or not less than life imprisonment, a $250,000 fine, and a $100 special assessment. Count II of the Indictment charges Tealer with felon in possession of ammunition on or about December 18, 2010. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. According to ATF Special Agent in Charge Greg Gant, “This indictment is a testament to the ongoing efforts of the ATF, the United States Attorney’s Office and the Omaha Police Department to identify and bring to justice those who choose to use firearms as tools of violence and intimidation. Together, we will continue to tirelessly pursue violent armed criminals, whose actions degrade the quality of life of those who live and work in our community.”
* Scott T. Tran, age 44, of Waterloo, NE, is charged in an eighteen-count Superseding Indictment. It alleges from on or about May 18, 2009, and continuing until on or about February 16, 2015 the defendant executed a scheme to defraud a health care benefit program. Scott Tran submitted false and fraudulent claims to the Nebraska Medicaid program seeking payment for providing a prescription drug to certain Nebraska Medicaid recipients when the defendant well knew the prescription drug had not been provided to those recipients. During the course of the scheme these claims totaled approximately $14,430,059.17. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, from gross proceeds traceable to the commission of the offense, should be forfeited to the United States.
* Daniel Zavala-Vera, age 37, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 50 grams of methamphetamine on or about April 7, 2015. The maximum possible penalty if convicted is 10 years to Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Zavala-Vera with possession of a firearm in furtherance of a drug trafficking crime on or about April 7, 2015. The maximum possible penalty if convicted is 5 years to Life imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment. The Indictment also contains an allegation to forfeit proceeds of the offense or property used to commit the offense, including $95,413.00 in U.S. currency.
Mansfield Special Needs Instructor Arrested and Detained on Federal Child Pornography OffenseRead the Press Release
FORT WORTH, Texas — Kelly Dan Williams, a special needs instructor at Mansfield Independent School District’s (ISD) Mary Orr Intermediate School, has been charged in a federal complaint with production of child pornography, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Williams, 62, was arrested Friday on the federal offense, and he made his initial appearance today in federal court in Fort Worth where U.S. Magistrate Judge Jeffrey L. Cureton ordered that he remain in federal custody pending a probable cause and detention hearing set for Wednesday morning.
According to the filed complaint, on June 1, 2015, an individual at Mary Orr Intermediate School observed Williams performing a sex act on an 11-year-old male student in a school bathroom stall. This individual reported this to the school’s administration, and Williams was directed to report to the Human Resources office.
During the course of an investigation, Mansfield Police obtained a search warrant for Williams’ residence, where they seized electronic storage devices, to include an SD card. A forensic examination revealed that a video located on the SD card depicted Williams performing a sex act on a minor male, who appears to be younger than age 12, in what appears to be a school bathroom stall. Further forensic analysis indicates that the video was created on or about February 3, 2010.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than 15 years, or more than 30 years, in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Mansfield ISD Police Department, the Mansfield Police Department and the Tarrant County District Attorney’s Office are investigating.
Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Man Sentenced to 18 Years in Prison for Sexually Extorting Eleven-Year-Old Girl over the InternetRead the Press Release
TUCSON, Ariz. – Today, Steven Antepara, 21, of New York, N.Y., was sentenced by U.S. District Judge Cindy K. Jorgenson to 18 years in prison. Antepara previously pleaded guilty to attempting to entice a minor. Antepara’s term of imprisonment will be followed by lifetime supervised release with stringent sex offender conditions, including the condition that he register as a sex offender.
Antepara used an online chat service and instant messaging application to meet and communicate with a girl in Tucson who was eleven years old. Antepara coerced the child to take and send him sexually explicit images of herself. Antepara then threatened to post the child’s images on social media and networking sites if she failed to send him more sexually explicit photos and engage in sexually explicit video web chats over Skype with him. The defendant obtained sexually explicit images from other minor children in the same manner. He possessed over 900 images of child pornography and shared the images with others.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation, Tucson. The prosecution was handled by Carmen F. Corbin, District of Arizona, Tucson.
CASE NUMBER: CR-14-578-TUC-CKJ
RELEASE NUMBER: 2015-45_ Antepara
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Luzerne County Woman Charged with Drug Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a woman from Luzerne County has been charged with drug trafficking offenses in a Criminal Information filed on June 12 in U.S. District Court in Scranton.
According to United States Attorney Peter Smith, Gina Paglianite, age 47, of Hazleton, is charged conspiracy to distribute cocaine and cocaine base (crack) in Luzerne County between 2011 and July 9, 2013. Paglianite is also charged with distributing heroin in Scranton, on November 21, 2014.
The government also filed a plea agreement which is subject to the approval of the court.
The investigation was conducted by the Federal Bureau of Investigation and the Lackawanna County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine, on each count. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Leader of Imperial Gangsters Sentenced to Life in Prison for Five Murders, One Attempted Murder and Other Gang-Related CrimesRead the Press Release
A leader of the Imperial Gangsters street gang was sentenced today to life in prison for five counts of murder in aid of racketeering and other RICO-related charges, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
Juan Briseno, aka Tito, 25, of Hammond, Indiana, was sentenced by Chief Judge Philip P. Simon of the Northern District of Indiana to a total of six life sentences plus 10 years in prison. The sentences will run consecutively.
On March 6, 2015, a federal jury in the Northern District of Indiana convicted Briseno of engaging in a RICO conspiracy, engaging in a drug distribution conspiracy, five counts of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and a firearms count related to the attempted murder.
According to the evidence presented at trial, Briseno was a leader of the 149th Street Imperial Gangsters, a violent clique of the Imperial Gangsters based in East Chicago, Indiana. In his leadership role, Briseno supervised prospective gang members known as “shorties.”
The evidence showed that the Imperial Gangsters had a long-standing rule that gang members were to shoot rival gang members on sight, and that they had a policy to shoot anyone selling drugs in their neighborhood when such persons had not either purchased the drugs from the Imperial Gangsters or paid “taxes” to the gang for the right to sell drugs in their territory. The five murders of which Briseno was convicted were committed consistent with these directives.
According to witness testimony, Briseno expressed no remorse for his participation in various murders. Indeed, he bragged about killings and encouraged others to do the same.
With regard to the specific murders, the evidence at trial demonstrated that, on Sept. 26, 2007, Briseno knocked on Luis Ortiz’s apartment door in Hammond, Indiana, and shot him dead in the doorway. According to the evidence presented at trial, Briseno targeted Ortiz because he was a member of the rival Latin King Street Gang.
Additionally, the evidence showed that, on June 3, 2008, Briseno killed both Miguel Mejias, a former member of the Latin Kings, and Michael Sessum, an associate of Mejias, while they were unarmed and bringing takeout food to their pregnant girlfriends. According to the evidence presented at trial, Briseno fired multiple shots into Mejias’ residence, striking a female victim in the arm while she was holding her infant child. Another pregnant female victim and multiple minor victims also were inside the apartment at the time. According to testimony presented at trial, in the weeks prior to the confrontation, Mejias implored a common friend to tell Briseno that Mejias was no longer “gangbanging” and did not want any trouble. In response to this message, Briseno said, “[expletive] him, he was going to bring [Latin] Kings into our neighborhood.”
The evidence at trial also demonstrated that, on Feb. 7, 2010, Briseno and his associates murdered rival Two-Six gang member Miguel Colonas he was leaving a party in the Harbor Area of East Chicago. In this incident, Briseno and several associates laid in wait for Colon to leave the party, and then shot the unsuspecting Colon from a vehicle.
Finally, the evidence at trial demonstrated that, on June 19, 2010, Briseno murdered Latroy Howard because he was selling drugs in Imperial Gangster territory. A video introduced at trial showed Briseno’s vehicle circling the block several times prior to the murder, and then showed Briseno confronting Howard on foot and shooting him twice in the head at point-blank range.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; and the East Chicago Police Department. The Gary, Indiana, Police Department; the Hammond Police Department; and the Lake County High Intensity Drug Trafficking Area Program provided assistance. This case is being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.
Leader of Imperial Gangsters Sentenced to Life in Prison for Five Murders, One Attempted Murder and Other Gang-Related CrimesRead the Press Release
WASHINGTON – A leader of the Imperial Gangsters street gang was sentenced today to life in prison for five counts of murder in aid of racketeering and other RICO-related charges, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David A. Capp of the Northern District of Indiana.
Juan Briseno, aka Tito, 25, of Hammond, Indiana, was sentenced by Chief Judge Philip P. Simon of the Northern District of Indiana to a total of six life sentences plus 10 years in prison. The life sentences will run consecutively.
On March 6, 2015, a federal jury in the Northern District of Indiana convicted Briseno of engaging in a RICO conspiracy, engaging in a drug distribution conspiracy, five counts of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and a firearms count related to the attempted murder.
According to the evidence presented at trial, Briseno was a leader of the 149th Street Imperial Gangsters, a violent clique of the Imperial Gangsters based in East Chicago, Indiana. In his leadership role, Briseno supervised prospective gang members known as “shorties.”
The evidence showed that the Imperial Gangsters had a long-standing rule that gang members were to shoot rival gang members on sight, and that they had a policy to shoot anyone selling drugs in their neighborhood when such persons had not either purchased the drugs from the Imperial Gangsters or paid “taxes” to the gang for the right to sell drugs in their territory. The five murders of which Briseno was convicted were committed consistent with these directives.
According to witness testimony, Briseno expressed no remorse for his participation in various murders. Indeed, he bragged about killings and encouraged others to do the same.
With regard to the specific murders, the evidence at trial demonstrated that, on Sept. 26, 2007, Briseno knocked on Luis Ortiz’s apartment door in Hammond, Indiana, and shot him dead in the doorway. According to the evidence presented at trial, Briseno targeted Ortiz because he was a member of the rival Latin King Street Gang.
Additionally, the evidence showed that, on June 3, 2008, Briseno killed both Miguel Mejias, a former member of the Latin Kings, and Michael Sessum, an associate of Mejias, while they were unarmed and bringing takeout food to their pregnant girlfriends. According to the evidence presented at trial, Briseno fired multiple shots into Mejias’ residence, striking a female victim in the arm while she was holding her infant child. Another pregnant female victim and multiple minor victims also were inside the apartment at the time. According to testimony presented at trial, in the weeks prior to the confrontation, Mejias implored a common friend to tell Briseno that Mejias was no longer “gangbanging” and did not want any trouble. In response to this message, Briseno said, “[expletive] him, he was going to bring [Latin] Kings into our neighborhood.”
The evidence at trial also demonstrated that, on Feb. 7, 2010, Briseno and his associates murdered rival Two-Six gang member Miguel Colonas he was leaving a party in the Harbor Area of East Chicago. In this incident, Briseno and several associates laid in wait for Colon to leave the party, and then shot the unsuspecting Colon from a vehicle.
Finally, the evidence at trial demonstrated that, on June 19, 2010, Briseno murdered Latroy Howard because he was selling drugs in Imperial Gangster territory. A video introduced at trial showed Briseno’s vehicle circling the block several times prior to the murder, and then showed Briseno confronting Howard on foot and shooting him twice in the head at point-blank range.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; and the East Chicago Police Department. The Gary, Indiana, Police Department; the Hammond Police Department; and the Lake County High Intensity Drug Trafficking Area Program provided assistance. This case is being prosecuted by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Section.
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Leader of Drug Smuggling Operation Gets Long Prison TermRead the Press Release
PHILADELPHIA – Higinio Castillo, 25, residing in Philadelphia, was sentenced today to 20 years in prison for running a large-scale drug smuggling operation, known as the Castillo Drug Smuggling Organization (CDSO). Castillo and the members of the CDSO recruited couriers who secreted packets of heroin inside their bodies in order to smuggle the drugs into the United States from the Dominican Republic. Between November 2010 and March 2012, Castillo imported more than eight kilograms of heroin and more than one kilogram of cocaine. He pleaded guilty on April 29, 2014 to 13 counts including conspiracy, kidnapping, and numerous drug charges.
Castillo lured people into acting as mules with promises of money and free vacations. He personally participated in the kidnapping of one drug courier whom he accused of absconding with about a pound of heroin, and he unsuccessfully attempted to obtain the children of another courier who had not returned the heroin that she had imported. Castillo’s drug supplier was a relative in the Domincan Republic.
Castillo ran the CDSO with co-defendant Michael Nunez-Rodriguez. Rodriguez and the nine remaining defendants have pleaded guilty and are awaiting sentencing. After recruiting the couriers, members of the CDSO would drive them to airports and pick them up upon their return. After the couriers cleared U.S. Customs, they were taken to an apartment controlled by the CDSO where they would expel the drug pellets. The CDSO would then repackage the drugs for sale. When a courier was suspecting of stealing the smuggled drugs, the members would intimidate and threaten the courier.
In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered 10 years of supervised release, a $5,000 fine, and a $1,300 special assessment. The government is also seeking forfeiture of all assets derived from any criminal activity.
The case was investigated by Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection, Philadelphia Police, Pennsylvania State Police, and the Philadelphia District Attorney=s Office. It is being prosecuted by Assistant United States Attorney Nancy Rue.
Large Scale Los Angeles PCP “Cook” Sentenced to Life in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Raymond Bullette III, age 34, of Los Angeles, California, today to life in prison followed by 10 years of supervised release for conspiring to distribute large quantities of phencyclidine (PCP). Bullette had previously been convicted of five felony drug offenses in California since 1999 and was on supervised probation at the time of the offense.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to evidence presented during his four day trial, in 2010, Maryland PCP distributors Ricky Holloway, Shawn Anthony and Don Campbell traveled to Los Angeles and bought two gallons of PCP from Bullette for $20,000. Bullette helped ship the PCP to Maryland. Thereafter and at least until August 2013, Bullette regularly made multiple-gallon shipments of PCP - typically packaged in paint cans - to Holloway in Maryland, who would then distribute the PCP to other coconspirators and his own customers in Prince George’s County, Maryland and surrounding areas.
Holloway paid Bullette for the PCP by depositing cash in bank accounts Bullette controlled or, later, by shipping cash in bulk to California. From September 2011 to September 2012, when their bank deposit method was compromised, Holloway arranged for $768,000 in cash deposits to be made in Maryland into Bullette’s accounts in payment for over 70 gallons of PCP.
On June 1, 2013, police in California came across a lab at which Bullette and two coconspirators were manufacturing PCP in the desert north of Los Angeles. Bullette fled into the desert that night as he saw police approach, but left behind his car, phone, documents and sufficient precursor chemicals to manufacture up to another 70 gallons of PCP.
Ricky Holloway, age 31, of Bowie, Maryland, Shawn Anthony, age 35, of Landover, Maryland and Don Juan Campbell, age 34 of Laurel, Maryland, previously pleaded guilty to their roles in the drug conspiracy. Holloway was sentenced to 14 years in prison. Anthony was sentenced to five years in prison. Campbell is scheduled to be sentenced on June 30, 2015 at 1:00 p.m.
In related cases, Richard Brown, age 29, and David Chittams, age 34, both of Lanham, Maryland, pleaded guilty to conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), and were sentenced to 10 years and seven years in prison, respectively. Kyle Daniels, age 36, also of Landover, pleaded guilty to distribution of PCP and illegal possession of a firearm and was sentenced to 51 months in prison.
Ricky Lee Holloway’s younger brother, Richaco Fernandis Holloway, age 24, of Camp Springs, Maryland, was previously sentenced to 57 months in prison for being a felon in possession of a gun. According to testimony presented at Richaco Holloway’s two-day trial, on July 3, 2013, a music label belonging to Ricky Lee Holloway posted a video in which Richacho Holloway was filmed holding a .45 caliber handgun with an extended magazine. The video was shot at a building that had been converted into a music studio and doubled as a distribution hub for Ricky Lee Holloway’s PCP distribution operation. During a search conducted at the music studio during a takedown of Ricky Holloway’s PCP trafficking activity, agents recovered the firearm Richaco Holloway was filmed holding in the rap video. Richaco Holloway was prohibited from possessing a firearm or ammunition due to a 2008 conviction in Prince George’s County Circuit Court for robbery with a deadly weapon and for which he was on parole.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, Prince George’s County Police Department and the Los Angeles County Sheriff’s Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and Leah Jo Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Lake Charles man, Texas man plead guilty to roles in methamphetamine distribution conspiracyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a Lake Charles man and a Texas man pleaded guilty to their roles in a methamphetamine distribution conspiracy that stretched from Lake Charles to Houston.
Chumphai Bob Mireles, 52, of Lake Charles, and Michael Wayne Giese, 37, of Pearland, Texas, entered conditional guilty pleas to one count of conspiracy to distribute or possess with intent to distribute controlled dangerous substances before U.S. Magistrate Judge Kathleen Kay. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to evidence presented at the guilty pleas, law enforcement agents identified Mireles and Sandra Smith, 48, of Lake Charles, as traffickers of methamphetamine. Smith told a cooperating witness that Mireles was going to make a purchase in July of 2014 from their supplier. Law enforcement agents followed Mireles to Houston on July 3, 2014, where he bought methamphetamine from Giese. Agents arrested Mireles as he traveled back to Louisiana and located 86.53 grams of methamphetamine inside his vehicle.
Mireles and Giese face up to 10 years to life in prison, at least five years supervised release, and a $10 million fine. Smith pleaded guilty to the conspiracy count June 3, 2015. All three defendants are scheduled to be sentenced October 19, 2015.
Homeland Security Investigations and the Calcasieu Parish Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Laguna Pueblo Woman Pleads Guilty to Federal Misdemeanor Assault ChargeRead the Press Release
ALBUQUERQUE – Allie P. Sarracino, 26, an enrolled member of the Laguna Pueblo who resides in Casa Blanca, N.M., pleaded guilty this morning in Albuquerque, N.M., to a misdemeanor information charging her with assaulting an Indian woman.
Sarracino was arrested on Dec. 8, 2014, on a criminal complaint charging her with assaulting an intimate partner by strangulation. According to the complaint, on Dec. 4, 2014, the Pueblo of Laguna Tribal Police Department responded to a report of assault on Laguna Pueblo in Cibola County, N.M. The complaint alleged that Sarracino assaulted the victim, a Laguna woman, by striking her in the face and strangling her. Sarracino was subsequently indicted on Jan. 8, 2015, and charged with assaulting an intimate partner by strangulation.
During today’s proceedings, Sarracino entered a guilty plea to a misdemeanor information and admitted assaulting the victim by striking her with her hands on the victims face. Sarracino also admitted holding the victim down by pressing on her shoulders and neck area. As a result of the assault, the victim suffered bruises, contusions and other wounds on her face and head.
At sentencing, Sarracino faces a statutory maximum penalty of 12 months in federal prison and up to one year of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorney Linda Mott is prosecuting the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Lafourche Parish Man Charged with Possession of Child PornographyRead the Press Release
Erin Pitre Bill of Information.pdf (610.15 KB)U.S. Attorney Kenneth A. Polite announced that ERIN PITRE, age 36, of Cut Off, Louisiana, was charged in a one-count Bill of Information with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old.
If convicted, PITRE faces a maximum term of imprisonment of not more than twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Erin Pitre Bill of Information.pdf (610.15 KB)
Kentucky Man Convicted of Evading Income Taxes and Providing False Document to Internal Revenue Service CollectionsRead the Press Release
A Russell Springs, Kentucky, man has been found guilty by a jury sitting in the U.S. District Court in Bowling Green, Kentucky, of multiple tax crimes, including failure to report hundreds of thousands of dollars on his income taxes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky.
On June 12, the jury found James S. Faller II, 54, guilty of one count of corruptly endeavoring to obstruct the Internal Revenue Code, four counts of evading federal individual income taxes, one count of falsifying a document submitted to the Internal Revenue Service (IRS) under the penalty of perjury and four counts of failing to file timely his 2006 through 2009 federal individual income tax returns. The jury returned the verdict after two hours of deliberation following a nine-day trial.
According to evidence introduced at trial, from at least April of 2006 through March of 2010, Faller provided consultation services involving criminal defense investigations and related services, for which he earned gross income of approximately $126,000 to $289,000 per year. During that time, Faller concealed his income from the federal government by arranging for his income to be made payable to another individual as a nominee and deposited the income into bank accounts that were not in his name. In March 2010, during an IRS civil collections action, Faller provided a false document to an IRS revenue officer wherein he lied about his true gross monthly income. Faller also did not file any individual federal income tax returns for those years on a timely basis. In March 2011, he filed false tax returns for 2006 and 2007.
Faller is scheduled to be sentenced on Sept. 17 in Bowling Green by Chief U.S. District Judge Joseph McKinley of the Western District of Kentucky. Faller faces a statutory maximum sentence of five years in prison and a $250,000 fine on the evasion charges, a statutory maximum sentence of three years in prison and a $250,000 fine on the corrupt endeavor to impede charge, a statutory maximum sentence of three years in prison and a $250,000 fine on the false document charge, and a statutory maximum sentence of one year in prison and a $100,000 fine for each count of failure to file income tax returns.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Harvey commended the special agents of the IRS-Criminal Investigation, who investigated the case, and Trial Attorney Thomas Voracek of the Tax Division and Assistant U.S. Attorney Lee Gentry of the Eastern District of Kentucky, who prosecuted the case.
John W. Huber Sworn in as United States AttorneyRead the Press Release
SALT LAKE CITY – In a short ceremony Monday morning, John W. Huber was sworn in as the United States Attorney for the District of Utah.
U.S. District Court Senior Judge Dee Benson administered the oath of office at a ceremony at the federal courthouse in Salt Lake City. A public investiture ceremony will be held later this summer.
Huber, age 47, has more than 10 years of experience in the U.S. Attorney’s Office where he has prosecuted cases ranging from violent gang and gun crime to domestic and international terrorism. He has served as a member of the office’s leadership team as the National Security Section chief, Executive Assistant U.S. Attorney, and most recently as Acting First Assistant U.S. Attorney.
The U.S. Attorney’s Office currently has about 85 employees located in Salt Lake City and a branch office in St. George. There are 94 U.S. Attorneys’ Offices in the country. The U.S. Attorney’s Office in Utah covers the entire state.
“I have committed my career to public service. I view the honor of serving as U.S. Attorney as my greatest opportunity thus far to help keep our communities safe. Building on Utah’s tradition for smart, cooperative law enforcement, I will work with law enforcement agencies, community leaders, and others to protect our national security interests, combat violent crime, expose financial fraud, and protect vulnerable victims,” Huber said today.
Huber was nominated by President Barack Obama to be the United States Attorney for Utah on Feb. 4, 2015, and confirmed by the United States Senate Wednesday. The appointment is for four years. Carlie Christensen has been the interim U.S. Attorney for Utah since David Barlow resigned in July 2014 to go into private practice.
A University of Utah graduate, Huber is a career prosecutor with broad experience in Utah’s state and federal trial courts. He was a Weber County deputy county attorney. He also worked for West Valley City for eight years, including a five-year term as Chief City Prosecutor.
Houston Couple Sentenced to Lengthy Prison Terms for Fraudulent SchemesRead the Press Release
HOUSTON – Gerard Montez-Easiley, 46, and Stacey Lair Lee-Easiley, 35, have been ordered to prison following their convictions in two corporate fraud schemes, announced U.S. Attorney Kenneth Magidson. The pleaded guilty to two separate fraud schemes which involved fraudulently obtaining credit in the names of various businesses, one of which was perpetrated while they were awaiting sentencing in the other.
U.S. District Judge Kenneth M. Hoyt sentenced Montez-Easiley and Montez-Easiley to respective terms of 188 and 135 months in federal prison.
In November 2012, the married couple was convicted of conspiring to commit mail and wire fraud. That scheme involved fraudulently obtaining credit on behalf of entities whose registration to conduct business in the State of Texas had been suspended or terminated (dormant entities). Although they had no legitimate relationship with the dormant entities, the defendants used fraudulent documents such as financial reports, among other means to falsely bolster the creditworthiness of the dormant entities. They also fraudulently obtained credit from banks, automobile dealerships and retailers in the dormant entities’ names. Using that fraudulently-obtained credit, the defendants obtained six luxury automobiles and more than $39,000 in computer equipment.
In June 2014, Montez-Easiley and Lee-Easiley also pleaded guilty to engaging in a separate fraud scheme while they were awaiting sentencing in the previous case. In that second scheme, the pair conspired with others to fraudulently obtain credit in the names of Black Pearl Media Group Inc. and Leeison Inc. In order to bolster the fraudulent credit applications of those entities, the defendants again used various fraudulent documents, including purported audited financial statements which had been plagiarized from the publicly-available financial statements of other companies. The defendants obtained four luxury cars and were responsible for more than $300,000 spent on credit cards that were fraudulently obtained in the name of Black Pearl Media Group.
In today’s consolidated sentencing, Judge Hoyt sentenced the defendants for their roles in both fraud schemes. Because they committed the second fraud scheme while released on bail in their initial case, they each faced additional prison time. Judge Hoyt further ordered Montez-Easiley and Lee-Easiley to pay restitution of $761,794.09 and $750,794.09, respectively.
The charges are the result of the investigative efforts of the U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Smith is prosecuting the case.
Georgian Delegation Visits Eastern District of TennesseeRead the Press Release
CHATTANOOGA, Tenn. – During June 10-20, 2015, a group of official delegates from the Republic of Georgia will visit the United States to learn about the U.S. criminal justice system and enhance their efforts to modernize their justice sector/system. The visit will begin in Washington, DC, where the delegates will meet with various representatives from the State Department, Pretrial Services for the District of Columbia, Bureau of Prisons, and Department of Justice (DOJ). After their short stay in Washington, the group will travel to Chattanooga, Tenn., where they will be hosted by the U.S. Attorney’s Office for the Eastern District of Tennessee.
During their visit, the delegates will study how the probation/pretrial services system operates in federal court. The week will include meetings in both Chattanooga and Knoxville with the U.S. Attorney; Assistant U.S. Attorneys; U.S. Probation Officers; U.S. District and Magistrate Judges; local defense attorneys; and federal, state and local law enforcement representatives. They will also attend court hearings to observe typical proceedings in federal court. Additionally, to ensure they experience the local culture, several leisure activities are also planned throughout the week for the delegates including a baseball game, cookout, and concerts at the annual Chattanooga Riverbend Festival.
The Georgian delegates participating in this U.S. visit include: Tamar Alania, Judge, Tbilisi Court of Appeals; Shalva Tadumadze, Parliamentary Secretary, GoG Administration; Archil Talakvadze, Deputy Minister of Internal Affairs; Kakha Kakhishvili, Deputy Minister of Corrections and Legal Assistance; Giorgi Arsoshvili, Head of Probation Service, MCLA; Giorgi Gabitashvili, Deputy Chief Prosecutor; Misha Shakulashvili, Tbilisi Chief Prosecutor; Nino Aglemashvili, Prosecutor, PGO; Irina Tsakadze, Head of Legal Drafting Department, MOJ; Archil Kbilashvili, Chairman, NGO European Choice of Georgia; Kakha Tsereteli, Defense Attorney, BLC Law Office; and Natia Oniani, Translator. The delegation will be accompanied by Tracey Newell, the Director of the State Department’s Bureau of International Narcotics and Law Enforcement at the U.S. Embassy in Tbilisi, Georgia, and by Tatiana Pataraia and Nata Tsnoriashvili, Georgian Staff Attorneys at the U.S. Embassy who work with DOJ’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) Resident Legal Advisor (RLA) program in Georgia.
For the last two years, Assistant U.S. Attorney (AUSA) Steve Neff, a federal prosecutor with the Chattanooga office, was detailed as OPDAT’s RLA in Tbilisi, Georgia. While on detail in Tbilisi, AUSA Neff worked closely with Georgian government officials as well as the Georgian legal and law enforcement community, including Justice Ministry officials, prosecutors, judges, investigators, and members of parliament, to develop and implement justice sector assistance programming aimed at modernizing Georgia’s criminal justice system. The current visit of these delegates to the United States is a continuation of those efforts.
“We are pleased to host the Georgian delegation in their quest to enhance their justice system. We are honored that they would choose to visit our office and district to help them understand the American system in a way that could help them further strengthen the rule of law in Georgia and aid them in their goal of Euro-Atlantic integration, including accession into the European Union (EU) and NATO,” said U.S. Attorney Bill Killian. “Our partnership and friendship with Georgia is vital to the interests of both nations, and we welcome the opportunity to exchange ideas and knowledge with our friends from Georgia.”
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Georgia Man Indicted for Identity Theft, Wire FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Georgia man has been indicted by a federal grand jury for using stolen identities to file fraudulent state and federal income tax returns.
Jalen Ortez Gude, 22, of Hillsboro, Ga., was charged in an 11-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on June 10, 2015. That indictment was unsealed and made public today following Gude’s initial court appearance.
The federal indictment alleges that, between January 2014 and March 13, 2015, Gude used the identity information of others (including their names, Social Security numbers, and dates of birth) to file fraudulent tax returns and receive tax refunds from both the federal government and the state of Missouri. Gude allegedly opened bank accounts in the names of his identity theft victims so that the IRS and the Missouri Department of Revenue would transfer the refunds to bank accounts he controlled. This process permitted Gude to remain anonymous, the indictment says, and to conduct his scheme, in part, from outside Missouri.
Gude also allegedly used the stolen identity information to submit fraudulent online credit applications at banks and credit card companies.
The federal indictment charges Gude with seven counts of wire fraud and four counts of aggravated identity theft.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri Department of Revenue – Compliance and Investigation Bureau and the Missouri Department of Revenue – Criminal Investigation Bureau.
Gaston County Prosecutor to Make U Visa Certification Decisions in Accordance with Federal GuidanceRead the Press Release
CHARLOTTE, N.C. – In May 2015, federal officials from the United States Attorney’s Office for the Western District of North Carolina met with Gaston County District Attorney, Locke Bell regarding when to certify so-called “U visas,” announced Jill Westmoreland Rose, Acting U.S. Attorney Office for the Western District of North Carolina. The U visa allows a victim of certain qualifying crimes to temporarily remain in the United States to help law enforcement investigate or prosecute the perpetrator. However, a victim is not eligible for a U visa unless the prosecutor or head of the law enforcement agency certifies, among other things, that he or she has been a victim of a qualifying crime and has been, is being, or is likely to be helpful in the investigation or prosecution. Mr. Bell agreed to make U visa certifications without reference to nationality, as is consistent with applicable federal statutes. Mr. Bell authorized this release.
Former Employee Sent to Prison for Scheme to Defraud Garden RidgeRead the Press Release
HOUSTON – Sandra Johnson, 48, of Katy, has been ordered to federal prison after admitting to receiving kickbacks in a money laundering conspiracy that targeted home décor retailer Garden Ridge Pottery, now known as At Home, announced U.S. Attorney Kenneth Magidson. Johnson pleaded guilty Feb. 17, 2015.
Today, U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, handed Johnson a 87-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $2 million in restitution. At the hearing, additional evidence/testimony was presented including information about another fraud scheme for which Johnson had been convicted and previously sent to federal prison.
Johnson was employed as a claims manager at Garden Ridge. In that role, she was responsible for reviewing and approving payment on injury claims filed against the store by its customers, commonly referred to as “slip and fall” claims. Johnson and others conspired to submit fraudulent claims against Garden Ridge for injuries which were either faked or never occurred. Johnson’s sister - Natalie Jeng, 42, also of Katy - was employed as a claims adjuster at a third-party administrator hired by Garden Ridge to administer and investigate claims. Thus, many of the fraudulent claims that were allegedly reviewed by Johnson at Garden Ridge were then reviewed and approved by her sister. Jeng will be sentenced June 22, 2015.
In all, 26 false claims were filed against Garden Ridge which resulted in the issuance of $2,063,436 in settlement proceeds. The fraudulent settlement proceeds were split amongst the alleged injury victims and other co-conspirators, with most of the funds kicked back to Johnson. She admitted to laundering the kickbacks she received by having her co-conspirators pay her either in cash or with cashier’s checks which had been purchased under nominee names. Jeng also received a portion of some settlements for her role in the scheme.
Darlene Drummer, 43, of Fresno, and Niesha Hall, 36, of Houston, have also pleaded guilty to their respective roles in the scheme. Drummer and Hall, in addition to filing false claims against Garden Ridge in their own names, recruited other complicit claimants into the scheme.
Johnson has previously pleaded guilty to mail fraud and money laundering charges stemming from a similar scheme when she was employed as a Claims Adjuster at The Hartford insurance company. In a 2007 plea agreement related to that scheme, Johnson admitted authorizing more than $1,700,000 in payments from The Hartford to various medical clinics in the Houston area for medical services that were never performed. The clinic owners then kicked back a portion of the payments to Johnson. She was sentenced in that case to serve 12 months and one day in prison.
Previously released on bond, Johnson was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Internal Revenue Service – Criminal Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman is prosecuted the case.
Former Chief Executive Officer of Oil Services Company Pleads Guilty to Foreign Bribery ChargeRead the Press Release
The former co-chief executive officer (CEO) of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and formerly with an office in New Jersey – pleaded guilty today to conspiring to pay bribes to a foreign government official in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
Joseph Sigelman, 44, of Miami and the Philippines, pleaded guilty today in the District of New Jersey to conspiracy to violate the FCPA. His trial had commenced on June 1, 2015. Sigelman will be sentenced June 16, 2015.
At his plea hearing, Sigelman admitted to conspiring with co-CEO Knut Hammarskjold, PetroTiger’s former general counsel Gregory Weisman, and others to make illegal payments of $333,500 to David Duran, an employee of the Colombian national oil company, Ecopetrol. Sigelman admitted to making the payments in exchange for Duran’s assistance in securing a $45 million oil services contract for PetroTiger.
Sigelman is the third former PetroTiger executive to plead guilty in the case. On Nov. 8, 2013, Weisman pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud. On Feb. 18, 2014, Hammarskjold pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud.
The case was brought to the attention of the department through a voluntary disclosure by PetroTiger, which fully cooperated with the department’s investigation. Based on PetroTiger’s voluntary disclosure, cooperation, and remediation, among other factors, the department declined to prosecute PetroTiger.
The department has worked closely with, and has received significant assistance from, its law enforcement counterparts in the Republic of Colombia, which announced in March of this year the arrests of Duran, his wife, a former employee of PetroTiger, and several other officials from Ecopetrol. Those charges are pending, and a defendant is presumed innocent unless and until proven guilty.
The department also received significant assistance from Ecopetrol, the National Hydrocarbons Agency, the Office of the Secretary of Transparency of the Republic of Colombia, the Office of the Attorney General of the Republic of Colombia and other agencies within the Colombian government. The department also appreciates the assistance of the Republic of the Philippines, including the Bureau of Immigration and the Republic of Panama. The department would also like to thank the United Kingdom’s Metropolitan Police International Assistance Unit for their assistance.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Deputy Chief Patrick Stokes and Assistant Chief Tarek Helou, with support from Assistant Chief Daniel Kahn, of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Zach Intrater and Glenn Moramarco of the District of New Jersey. The Criminal Division’s Office of International Affairs also provided significant assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Sigelman Plea Agreement
Former Chief Executive Officer of Oil Services Company Pleads Guilty to Foreign Bribery ChargeRead the Press Release
WASHINGTON – The former co-chief executive officer (CEO) of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and formerly with an office in New Jersey – pleaded guilty today to conspiring to pay bribes to a foreign government official in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.
Joseph Sigelman, 43, of Miami and the Philippines, pleaded guilty today in the District of New Jersey to Count One of a superseding indictment charging him with conspiracy to violate the FCPA. His trial had commenced on June 1, 2015. Sigelman will be sentenced June 16, 2015.
At his plea hearing, Sigelman admitted to conspiring with co-CEO Knut Hammarskjold, PetroTiger’s former general counsel Gregory Weisman, and others to make illegal payments of $333,500 to David Duran, an employee of the Colombian national oil company, Ecopetrol. Sigelman admitted to making the payments in exchange for Duran’s assistance in securing a $45 million oil services contract for PetroTiger.
Sigelman is the third former PetroTiger executive to plead guilty in the case. On Nov. 8, 2013, Weisman pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud. On Feb. 18, 2014, Hammarskjold pleaded guilty to conspiracy to violate the FCPA and to commit wire fraud.
The case was brought to the attention of the department through a voluntary disclosure by PetroTiger, which fully cooperated with the department’s investigation. Based on PetroTiger’s voluntary disclosure, cooperation, and remediation, among other factors, the department declined to prosecute PetroTiger.
The department has worked closely with, and has received significant assistance from, its law enforcement counterparts in the Republic of Colombia, which announced in March of this year the arrests of Duran, his wife, a former employee of PetroTiger, and several other officials from Ecopetrol. Those charges are pending, and a defendant is presumed innocent unless and until proven guilty.
The department also received significant assistance from Ecopetrol, the National Hydrocarbons Agency, the Office of the Secretary of Transparency of the Republic of Colombia, the Office of the Attorney General of the Republic of Colombia and other agencies within the Colombian government. The department also appreciates the assistance of the Republic of the Philippines, including the Bureau of Immigration and the Republic of Panama. The department would also like to thank the United Kingdom’s Metropolitan Police International Assistance Unit for their assistance.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Deputy Chief Patrick Stokes and Assistant Chief Tarek Helou, with support from Assistant Chief Daniel Kahn, of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Zach Intrater and Glenn Moramarco of the District of New Jersey. The Criminal Division’s Office of International Affairs also provided significant assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Defense counsel: Matthew I. Menschel, William A. Burck, Juan Pablo Morillo Esqs., Washington; Patrick J. Egan Esq., Philadelphia
Downsville man sentenced to more than 28 years in prison for producing child pornographyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Downsville man was sentenced to 342 months in prison for producing child pornography.
Michael S. Golden, 53, of Downsville, La., was sentenced by U.S. District Judge Robert G. James on one count of production of child pornography. He was also sentenced a lifetime of supervised release and ordered to register as a sex offender upon his release from prison. At Golden’s September 4, 2014 guilty plea, law enforcement agents detected Golden transmitting child pornography online. Agents found that on April 29, 2014, Golden took sexually explicit photographs of a minor in order to create child pornography. He then used an email account to transmit the child pornography.
“The nearly 30-year sentence given to Michael Golden today should send a strong message to others who sexually abuse children that they will be prosecuted to the fullest extent of the law,” Finley stated. “Mr. Golden is a vile predator and the sentence imposed should protect others from his horrific conduct. The harm inflicted on minors through these acts cannot be measured. I want to thank the law enforcement agents and prosecutor for their work in brining Mr. Golden to justice.”
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
This case was investigated by ICE Homeland Security Investigations and the Louisiana State Police. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Department of Defense Employee Admits to Fraudulently Obtaining over $750,000 from Contracts with Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – Mark Nixon, age 54, of Silver Spring, Maryland, pleaded guilty today to conspiring to defraud the United States and to acts affecting a personal financial interest.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
"Today's guilty plea demonstrates our special agents' expertise and dedication to investigate and expose companies and government employees who engage in fraud," said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "While the defendant may have thought he would get away with the criminal scheme, he was no match for the dogged determination and professionalism of our agents and their commitment to enforcing the law and rooting out those who attempt to steal from the U.S. Government."
"The guilty plea today by Mr. Nixon illustrates the lengths that some will go through to circumvent the government contracting process for personal gain," said Robert E. Craig, Jr., Special Agent in Charge for the Defense Criminal Investigative Service, Mid-Atlantic Field Office. "DCIS and its law enforcement partners, along with the U.S. Attorney's Office, are committed to rooting out this behavior in order to ensure acquisition integrity and safeguard Department of Defense funds."
Mark Nixon was a civilian employee of the Department of Defense, and worked at the U.S. Army Research Laboratories (ARL) in Hampden, Virginia, and Aberdeen, Maryland. From 2008 to December 2010, Nixon was the Director of Vehicle Technology Directorate with ARL at Aberdeen Proving Ground.
Nixon also had a financial interest and management role in the operation of the following companies: Motile Robotics, Inc. (MRI), located in Joppa, Maryland; Atlantic Capital Enterprises (ACE); and Arrow Technical Incorporated (ATI).
According to his plea agreement, in 2008, Nixon determined that microsystem controls research was needed, including the fabrication of a small open-jet wind tunnel. Nixon created and approved government documents that caused ARL to fund this research, and became the designated team leader for ARL on the research project.
In January 2009, the United States awarded a large defense contractor a task order to construct the open flow wind tunnel from February 2008 to 2011, worth approximately $3.6 million. Nixon persuaded the defense contractor to use MRI as a subcontractor. Nixon also played an important role in the government awarding the defense contractor another task order to construct a closed circuit wind tunnel from January 2009 to 2011, for approximately $3.5 million, under which MRI was a subcontractor. Nixon provided the contracting officer with a technical evaluation of the contract and its cost, and acted as the government official overseeing and managing this work on a routine basis.
Nixon and a coconspirator had caused MRI to be created and provided significant input regarding the operation of MRI. Nixon was in effect a silent and undisclosed partner, owner and co-president. Nixon also actively assisted with the operation of MRI using the alias "Paul Martin" on order to conceal their financial interest. Although Nixon knew that he had a prohibited financial interest in MRI, he conducted a technical evaluation of MRI’s capabilities as a subcontractor, and approved invoices listing false labor and materials charges.
MRI received more than $5 million in federal funds under these task orders. Nixon caused MRI to pay money to Arrow Technical, and Arrow Technical to pay Atlantic Capital. Nixon also had a financial interest in Arrow Technical and Atlantic Capital. Nixon and two co-conspirators personally benefited from over $750,000 sent to these companies.
Nixon and the government have agreed that if the Court accepts the plea agreement, Nixon will be sentenced to 42 months in prison followed by three years of supervised release. Nixon also agrees to forfeit and pay restitution of at least $750,000. U.S. District Judge Marvin J. Garbis has scheduled sentencing for September 18, 2015 at 9:30 a.m.
An information filed on May 8, 2015 also charges Mark Nixon’s wife Sandra Nixon, a/k/a “Lisa Hart,” age 52, of Silver Spring, and Kenneth Dawson, age 52, of Niceville, Florida, with the same offenses arising from the conspiracy. Both Sandra Nixon and Kenneth Dawson are scheduled to have their initial appearance and arraignment on June 30, 2015 at 2:00 p.m. and 11:00 a.m., respectively.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit, DCIS and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and P. Michael Cunningham, who are prosecuting the case.
Clinton County, Kentucky, Man Guilty of Filing False Tax ReturnsRead the Press Release
Failed to report earnings and pay income taxes on $386,183.67 during a six year period and overstated business expenses of $581,519.91
BOWLING GREEN, Ky. – A Clinton County, Kentucky, man pleaded guilty today in United States District Court to six counts of failing to report approximately $386,183.67 in income and royalty income during a six year period and for overstating business expenses of $581,519.91 announced Acting United States Attorney John E. Kuhn, Jr.
Steven L. Burchett, age 50, admitted in court, before U.S. District Judge Greg N. Stivers, to willfully making and subscribing U.S. Individual Tax Returns, for the calendar years 2006 through 2011,which were written under the penalty of perjury and filed with the Internal Revenue Service, (IRS) and included information he did not believe to be true and correct.
Specifically, on October 11, 2008, Burchett filed a U.S. Individual Tax Return for calendar year 2006, with the IRS, in which he failed to report approximately $224,735.76 of additional income on Form 1040 line 22.
On October 8, 2008, Burchett filed a U.S. Individual Tax Return, for the calendar year 2007, with the IRS, in which he failed to report approximately $27,003.91 of additional income on Form 1040, Line 22.
On October 15, 2009, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2008, with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $41,394 in business expenses on Schedule C, Line 28, and failed to report royalty income of approximately $18,236 and understated approximately $56,895 in additional income on Form 1040, Line 22.
On April 15, 2010, defendant Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2009, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $90,650 in business expenses on Schedule C, Line 28, and failed to report approximately $38,323 in royalty income and understated approximately $123,225 in additional income on Form 1040, Line 22.
On April 15, 2011, defendant Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2010, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $305,564 in business expenses on Schedule C, Line 28, and failed to report approximately $64,490 in royalty income and understated approximately $360,380 in additional income on Form 1040, Line 22.
On April 15, 2012, defendant Burchett filed a joint U.S. Individual Tax Return, for the calendar year 2011, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $72,050 in business expenses on Schedule C, Line 28, and failed to report approximately$74,778 in royalty income and understated approximately $135,611 in additional income on Form 1040, Line 22.
If convicted at trial, Burchett could have been sentenced to three years in prison on each of the six charges for a total of eighteen years, a total fine of $1,500,000., and a period of up to one year of supervised release. Sentencing is scheduled in Bowling Green on September 14, 2015 at 10 a.m.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the Criminal Investigation Division of the Internal Revenue Service.
Children's Hospital to Pay $12.9 Million to Settle False Claims Act AllegationsRead the Press Release
Children’s Hospital, Children’s National Medical Center Inc. and its affiliated entities (collectively CNMC) have agreed to pay $12.9 million to resolve allegations that they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services (HHS), as well as to Virginia and District of Columbia Medicaid programs, the Department of Justice announced today. CNMC is based in Washington, D.C., and provides pediatric care throughout the metropolitan region.
“The false reporting alleged in today’s settlement deprived the Medicare Trust Fund of millions of taxpayers’ dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Such conduct wastes critical federal health care program funds and drives up the costs of health care for all of us.”
“The integrity of federal health care programs depends on honest and accurate reporting from the hospitals and other health care providers that receive hundreds of billions of tax dollars every year,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia. “This settlement demonstrates our commitment to defending the integrity of the system and ensuring that taxpayer money goes to meet the most critical health care needs. We will continue to work with whistleblowers like the former employee who came forward in this case to battle waste, fraud and abuse that fuel the skyrocketing cost of health care.”
According to the settlement agreement, CNMC misstated information on cost reports and applications in two distinct manners to HHS. This false information was used by HHS and Medicaid programs to calculate reimbursement rates to CNMC. The United States contended that CNMC misreported its available bed count on its application to HHS’ Health Resources and Services Administration under the Children’s Hospitals Graduate Medical Education (CHGME) Payment Program. The CHGME Payment Program provides federal funds to freestanding children’s hospitals to help them maintain their graduate medical education programs that train pediatric and other residents. The United States further contended that CNMC filed cost reports misstating their overhead costs, resulting in overpayment from Medicare and the Virginia and District of Columbia Medicaid programs.
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by James A. Roark Sr., a former employee of CNMC. Under the act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Mr. Roark will receive $1,890,649.98.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.3 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the U.S. Attorney’s Office of the District of Columbia with assistance from the Civil Division’s Commercial Litigation Branch and the HHS’ Office of Inspector General.
The case is United States ex rel. Roark v. Children’s Hosp., et al., No. 1:14-cv-00616 (D.D.C.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Children's Hospital Agrees to Pay $12.9 Million to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON – Children’s Hospital, Children’s National Medical Center Inc. and its affiliated entities (collectively CNMC) have agreed to pay $12.9 million to resolve allegations that they violated the False Claims Act by submitting false cost reports and other applications to the components and contractors of the Department of Health and Human Services (HHS), as well as to Virginia and District of Columbia Medicaid programs, the Department of Justice announced today. CNMC is based in Washington, D.C., and provides pediatric care throughout the metropolitan region.
“The integrity of federal health care programs depends on honest and accurate reporting from the hospitals and other health care providers that receive hundreds of billions of tax dollars every year,” said Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia. “This settlement demonstrates our commitment to defending the integrity of the system and ensuring that taxpayer money goes to meet the most critical health care needs. We will continue to work with whistleblowers like the former employee who came forward in this case to battle waste, fraud and abuse that fuel the skyrocketing cost of health care.”
“The false reporting alleged in today’s settlement deprived the Medicare Trust Fund of millions of taxpayers’ dollars,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Such conduct wastes critical federal health care program funds and drives up the costs of health care for all of us.”
According to the settlement agreement, CNMC misstated information on cost reports and applications in two distinct manners to HHS. This false information was used by HHS and Medicaid programs to calculate reimbursement rates to CNMC. The United States contended that CNMC misreported its available bed count on its application to HHS’ Health Resources and Services Administration under the Children’s Hospitals Graduate Medical Education (CHGME) Payment Program. The CHGME Payment Program provides federal funds to freestanding children’s hospitals to help them maintain their graduate medical education programs that train pediatric and other residents. The United States further contended that CNMC filed cost reports misstating their overhead costs, resulting in overpayment from Medicare and the Virginia and District of Columbia Medicaid programs.
The settlement resolves allegations brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act by James A. Roark Sr., a former employee of CNMC. Under the act, a private citizen can sue on behalf of the United States and share in any recovery. The United States is entitled to intervene in the lawsuit, as it did here. As part of the resolution, Mr. Roark will receive $1,890,649.98.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24.3 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the U.S. Attorney’s Office of the District of Columbia with assistance from the Civil Division’s Commercial Litigation Branch and the HHS’ Office of Inspector General.
The case is United States ex rel. Roark v. Children’s Hosp., et al., No. 1:14-cv-00616 (D.D.C.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Career Criminal Sentenced to 200 Months for Felony Possession of Five FirearmsRead the Press Release
Memphis, TN – A 46-year-old Millington man with multiple felony convictions has received 200 months imprisonment for threatening to kill a repossession agent with a firearm.
On December 27th, 2012, Kendall Joy placed a loaded Military-style .44 Magnum to the head of Derrick Jones as he attempted to repo Joy’s girlfriend’s vehicle. Jones, along with two colleagues, Kenneth Minor and Jerickan McCracklin, were at Millington Oaks Apartments to repossess a 2005 GMC Envoy from Jasmine Warren when the incident occurred.
According to trial testimony, Jones was in the process of loading the vehicle onto the bed of his wrecker when Joy exited his apartment with a woman, demanding Jones to release the vehicle. Joy told the accompanying woman to get his gun. When she returned with the firearm, Joy grabbed and cocked it, and pointed it at the victims. "Drop my vehicle or I’ll kill you," he reportedly stated. Concerned for their safety, Minor and McCracklin fled the area on foot, but Jones remained at the location with his wrecker. Joy pointed the firearm at Jones’ head and said, "I promise I will kill you right now, if you don’t let this truck go." Joy then ordered Jones not to move while he disconnected the vehicle himself. After the woman with Joy got inside of the vehicle and drove away, Joy retreated into his apartment and barricaded himself inside.
Officers were dispatched to Millington Oaks and, upon arrival, ordered Joy to either allow access into his home or exit the residence. Refusing to comply with their requests, officers forcefully entered Joy’s apartment and detained him at gunpoint.While inside, law enforcement discovered three small girls hiding in a bedroom. The little girls advised officers that multiple firearms were located throughout the residence. After obtaining a state search warrant, the officers were able to seize the firearm Joy used to threaten Jones, along with additional guns, including an AK-47-styled assault rifle, .25 caliber pistol, 12-gauge shotgun, as well as a stolen 9mm pistol. High-capacity magazines for the assault rifle and 9mm were also seized during the search, along with an assortment of ammunition for the 12-guage, .44 Magnum, and .25 caliber.
Joy has an extensive criminal history. Between 1987 and 2011, he was convicted of criminal offenses 34 times.
Charged with five counts of being a convicted felon in possession of a firearm, today Joy was sentenced to 200 months and five years of supervised release by Judge S. Thomas Anderson.
This case was investigated by Alcohol, Tobacco and Firearms (ATF) and the Millington Police Department. Assistant U.S. Attorneys David Biggers and Damon Griffin represented the government in this case.
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Canfield man charged with defrauding North Canton company out of nearly $2.5 millionRead the Press Release
A Canfield man was charged with mail fraud related to a scheme to defraud a North Canton company out of nearly $2.5 million, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Peter J. Luchansky, 60, was charged via criminal information with one count of mail fraud.
Luchansky was employed as an information technology manager with a large medical practice in North Canton. Beginning in 2005, he formed two Ohio companies with registered mailing addresses in Ohio. From 2005 until July 2014, Luchansky used these companies to bill the medical practice for computer equipment and services. In turn, the medical practice paid Luchansky’s companies for invoices submitted by Luchansky and his companies. The medical practice was the only customer of Luchansky’s companies, according to the information.
Luchansky fabricated the invoices and the amounts for payment for services and equipment that he did not provide in order to obtain monies from the medical practice. Through the submission of the false and fraudulent invoices of these companies, Luchansky defrauded the medical facility of at least $2,486,028, according to the information.
Luchansky has agreed to forfeit certain property obtained as a result of these false and fraudulent invoices including cash, jewelry appraised at $43,940, 2009 Corvette, 2007 Lexus, 2000 Harley Davidson motorcycle and 108 firearms. In addition, Luchansky previously submitted funds totaling over $2 million to be used as restitution to the victims in this case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the filing of the information was conducted by the Federal Bureau of Investigation’s Canton Office. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An information 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.
Bridgeport Restaurant Owner Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARIA PINHEIRO, 58, of Trumbull, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to two months of imprisonment, followed by one year of supervised release, for filing false tax returns. Chief Judge Hall also ordered PINHEIRO to perform 100 hours of community service.
According to court documents and statements made in court, PINHEIRO owns and operates the Dolphin’s Cove Marina (“DCM”), a seafood restaurant in Bridgeport. From 2007 through 2009, PINHEIRO was the sole shareholder and bookkeeper for DCM, and she handled all of the DCM finances. Instead of depositing all of the cash receipts from DCM into the DCM business checking account, PINHEIRO deposited substantial amounts of cash from the business into her personal checking account. She then failed to provide her personal bank records to the firms that prepared the federal income tax returns for her and DCM.
Between 2007 and 2009, PINHEIRO deposited $352,437 in cash that DCM received into her personal bank account. Some of deposits were structured in amounts of less than $10,001 in order to evade her bank’s currency transaction reporting requirements. PINHEIRO caused the filing of false personal and corporate tax returns, resulting in a tax loss of $92,251.
On March 25, 2015, PINHEIRO pleaded guilty to one count of filing a false tax return. As part of her plea agreement, PINHEIRO agreed to pay back taxes, interest and penalties in the total amount of $243,956.98, which she paid in full today.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Bastrop tax preparer sentenced to 21 months in prison for filing false returnsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Bastrop woman was sentenced to 21 months in prison for filing false tax returns.
Stella Marie Dunlap, 37, of Bastrop, La., was sentenced by U.S. District Judge Robert G. James on one count of aiding and assisting in making and subscribing a false tax return. She was also sentenced to one year of supervised release and ordered to pay $104,410 restitution. According to evidence presented at the March 3, 2015 guilty plea, Dunlap filed fraudulent Forms 1040 during the 2010 and 2011 tax filing seasons while employed as a tax preparer at Faster Tax Services in Bastrop. The returns contained fraudulent W-2 income information from fictitious companies, and the information was used to file Earned Income Tax Credit withholdings. As a result of the fraud, the IRS issued $104,410 in refunds to which taxpayers where not entitled. Dunlap received kickbacks from some of the customers as part of the scheme.
Internal Revenue Service - Criminal Investigations conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Assistant U.S. Attorney Receives Director AwardRead 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 Assistant U.S. Attorney Richard D. Kaufman was recognized by Attorney General Loretta Lynch at the 31st annual Director’s Awards Ceremony in Washington D.C. for his exemplary service to the country and United States Department of Justice. Kaufman, Chief of the Asset Forfeiture and Financial Litigation (AFFLU) Unit, received the John Marshall Award for Asset Forfeiture.
AUSA Kaufman joined the U.S. Attorney’s Office in 1989 and is responsible for the management and supervision of employees of the AFFLU unit which collects civil and criminal debts owed to the Federal Government. The unit also ensures that the proceeds of criminal activity are forfeited when possible restitution is paid to victims of crime.
Under AUSA Kaufman’s leadership, the United States Attorney’s Office recovered a record $94,000,000 in the 2013 fiscal year. These funds went to victims of crime, law enforcement, and taxpayers. His efforts have also led to the forfeiture of real property which formerly had been used for narcotics trafficking and other criminal activities. One such property, 900 Genesee St., was turned over to Hananiah Ministries and now serves as a place of worship, a food pantry and job bank. Kaufman has been successful in obtaining funding for the demolition of drug houses which rids the streets of drug activity and improves the quality of life for residents in the community.
“Thanks to thorough reporting by our local media, the public already knows much about the fine work being done day in and day out by the women and men of the United States Attorney’s Office,” said U.S. Attorney Hochul. “This exceptional work extends not only to the successful handling of hundreds of federal criminal and civil cases, but to extensive collection and forfeiture matters as well.”
U.S. Attorney Hochul further stated “By successfully using forfeiture tools, AUSA Kaufman and the AFFLU unit have literally taken the profit out of crime. I am thrilled that Mr. Kaufman is being honored for his hard work and dedication, and in making our community a better place to live.”
Altamont Man Sentenced in Methamphetamine ConspiracyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Travis Cole Maxfield, 28, of Altamont, Illinois, was sentenced today to 188 months in federal prison, to be followed by 4 years of supervised release, a $500 fine and a $500 special assessment. Sentencing followed a guilty plea in February 2014 to all charges against him in an indictment returned by a Federal Grand Jury in November 2014. All offenses relate to the production and distribution of methamphetamine.
Specifically, Maxfield was sentenced for Conspiracy to Manufacture and Distribute Methamphetamine from October 2013 through May 2014 in St. Clair, Clinton, and Marion Counties (Count 1); Manufacture of Methamphetamine on February 26, 2014, in St. Clair County (Count 2); Distribution of Methamphetamine on March 5, 2014, in Marion County (Count 3); Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reason to Know that It Would Be Used to Manufacture Methamphetamine in St. Clair County (Counts 9 and 10).
Information leading to the charges against Maxfield was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team. The case is being handled by Assistant United States Attorney Kit Morrissey.
30 Alleged Gang Members & Associates Charged InRead the Press Release
Latest RI Urban Violent Crime Initiative Investigation
PROVIDENCE, R.I. –For the second time in four months, the collaborative efforts of the Rhode Island Urban Violent Crime Initiative, a wide-ranging collaboration of local, state and federal law enforcement and federal and state prosecutors who are targeting violent crime and violent criminals in urban neighborhoods of Rhode Island, has resulted in state and federal criminal charges being brought against numerous individuals.
In February, it was announced that a year-long series of undercover investigations initiated by the Providence Police Department and the DEA, with substantial assistance from local, state and federal law enforcement, and state and federal prosecutors, was targeting the distribution of heroin and crack cocaine and the importation of firearms onto the streets of Providence. At the time, the Rhode Island Urban Violent Crime Initiative resulted in the arrests of more than 35 individuals and the seizure of at least 15 firearms.
Building on a series of ongoing investigations which began in September 2013 and bolstered by law enforcement and prosecutors participating in the Violent Crime Initiative, an FBI Safe Streets Gang Task Force and Providence Police Department investigation, with substantial assistance of the Urban Violent Crime Initiative Task Force, more than two-dozen gang members and associates who are allegedly trafficking cocaine and heroin in Providence and surrounding communities have been charged in federal or state court.
Within the past five days, 14 individuals have been indicted by a Providence Country grand jury on state drug trafficking charges and 11 individuals have been charged by way of indictment of criminal complaint in federal court with trafficking heroin and cocaine. The federal indictments were for delivery of heroin in excess of 100 grams and conspiracy. The state indictments were for delivery of heroin, cocaine, and conspiracy. There are several remaining suspects that have warrants issued for their arrest. Five additional gang members were arrested on state firearm charges during this investigation. Two subjects were also additionally charged with armed robbery with a firearm. Most of the individuals charged have been identified as members or associates of gangs in and around the South Side of Providence.
"Today- once again- we are proving that when all levels of government and public safety join together to target violent offenders we see substantial results," said Mayor Jorge O. Elorza. "Addressing drug distribution and gang violence is a very high priority for me, and we will continue working with our partners to stop this kind of violent criminal behavior."
“This is another example of federal state and local law enforcement providing a direct focus on specific criminals who chose to cause violence, distribute drugs and create fear in the City of Providence. This also is a warning to those who wish to engage in drug dealing and violence, this team will be targeting you next,” said Commissioner Steven M. Paré
“This investigation initiated by the Providence Police Department, strikes at the very core of drug, gang, and gun violence in the City of Providence. It also signifies what can be accomplished by coordinated, interagency efforts to take down violent gang activity. This was another excellent investigation by all involved,” said Colonel Hugh T. Clements, Jr.“Gang members who try to fill the vacuum left by these arrests should know we will come after them too. Nobody should have to live in the midst of these drug dealing, violent criminals and the FBI hopes this well-coordinated effort will help bring peace to the streets of Providence and its surrounding communities,” said Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division.
At a news conference announcing the latest round of arrests, United States Peter F. Neronha said, "The arrests we announce today, and those we announced last February, are tied together by one over-arching principle: that if we want to be smart about reducing crime, we have to shape our investigative and prosecutorial efforts in such a way as to have the most impact. We have to identify those who by their use of violence are keeping those who simply want to work and go to school effectively locked in their homes, and we have to build cases against them before they can do catastrophic harm. "
Mr. Neronha added, "Virtually every one of the charged individuals we are talking about today is a gang member or a gang associate. They are ready to use violence to achieve their aims, the aims, and however trivial. That is their creed."
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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]
12 June 2015
Wingate, Texas, Man Sentenced to 20 Years in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Larry Richie Fields, 45, of Wingate, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 20 years in federal prison, following his guilty plea in February 2015 to one count of transportation of child pornography. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case, on October 25, 2014, Fields, who has been in federal custody since his arrest in January, used the Internet to transport two images of child pornography using an online social networking service. Over a period of years, beginning no later than 2012, Fields used various social networking services and online storage services to post and store images depicting minors engaging in sexually explicit conduct. Fields used multiple usernames to trade, collect, transport, and receive child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Dallas Internet Crimes Against Children (ICAC) Task Force; the Texas Department of Public Safety, Criminal Investigations Division; the Taylor County Sheriff’s Office; and the San Angelo Police Department, Special Operations Division.
Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Virginia Man Sentenced to Seven-Year Prison Term and Fined $262,500 for Arranging for Sexual Contact with a Minor and Possession of Child PornographyRead the Press Release
WASHINGTON - Paul David Hite, 58, an anesthesiologist from Midlothian, Va., was sentenced today to seven years in prison and fined $262,500 for arranging for sexual contact with a minor and possession of child pornography.
The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Hite pled guilty on April 15, 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Colleen Kollar-Kotelly. The judge also ordered Hite to pay $16,750 in restitution to five victims of child pornography. Upon completion of his prison term, Hite will be placed on 10 years of supervised release.
According to a factual proffer of evidence presented during the court proceeding, from Feb. 1, 2012 through Feb. 17, 2012, Hite engaged in a series of Internet chats and telephone calls with an undercover police detective in Washington, D.C., who was posing as an adult who was sexually abusing a minor girl and a minor boy. During the course of the communications with the undercover detective, Hite described, in graphic detail, the sexual activity in which he wanted to engage with the purported minors. Hite also discussed plans to travel to Washington, D.C. for the purpose of sexually abusing the purported minors.
Hite was arrested near his residence on Feb. 17, 2012. Law enforcement recovered computer equipment from Hite’s home, which uncovered evidence of over 400 files of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, Acting U.S. Attorney Cohen, Assistant Attorney General Caldwell, Assistant Director in Charge McCabe and Chief Lanier commended the work of all who participated in the investigation. They especially acknowledged the efforts of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the Eastern District of Virginia, as well as the FBI’s Richmond Field Division.
They also acknowledged the efforts of Digital Investigative Analyst Christie Gardner of the Criminal Division’s Child Exploitation and Obscenity Section, and Criminal Investigator John Marsh of the U.S. Attorney’s Office for the District of Columbia. They additionally commended the efforts of those who assisted with the case at the U.S. Attorney’s Office, including former Paralegal Specialist Starla Stolk; Legal Assistants Jessica Moffatt and Charmonique Price; Yvonne Bryant, Dawn Tolson-Hightower and David Foster of the Victim Witness Assistant Unit; and Joshua Ellen, Kimberly Smith, and Leif Hickling of the Litigation Services Unit. Finally, they commended the work of Assistant U.S. Attorneys Elizabeth Wu and Brian Hood from the Eastern District of Virginia, Diane Lucas of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, Chief Elizabeth Trosman, Elizabeth Danello, and Patricia Heffernan of the Appellate Division of the U.S. Attorney’s Office for the District of Columbia, David B. Kent, Julieanne Himelstein, and Andrea L. Hertzfeld of the U.S. Attorney’s Office for the District of Columbia, and Deputy Chief Alexandra R. Gelber and former Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.
Upton Woman Pleads Guilty to Defrauding Federal Benefits ProgramsRead the Press Release
BOSTON – An Upton, Mass. woman pleaded guilty today in U.S. District Court in Worcester to stealing more than $128,000 in Social Security benefits and providing false information in applications for subsidized housing.
Patricia Kwiatkowski, 64, pleaded guilty to stealing public money and making false statements. U.S. District Court Judge Timothy S. Hillman schedule sentencing for Sept. 8, 2015. In May 2015, Kwiatkowski was charged in a felony Information.
Kwiatkowski’s father died in 2006, but his monthly Social Security benefits continued to be directly deposited into his bank account. Although she was not entitled to this money, Kwiatkowski signed her late father’s name on more than 100 checks written from his account to pay her own bills and also made ATM withdrawals from the account. In total, from 2006 to 2014, Kwiatkowski received and spent $128,101 in Social Security funds to which she was not entitled.
In addition, in 2013, Kwiatkowski applied to live at Upsala Elder Apartments in Worcester in a unit subsidized by the U.S. Department of Housing and Urban Development (HUD). On the application, she falsified her prior year’s income by failing to list the Social Security money that she was illegally receiving from her late father’s bank account. In 2014, Kwiatkowski made other false statements on her application to live in a HUD-subsidized unit in the Milhaus Apartments in Upton.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.
One of the ways the Social Security Administration detects this kind of fraud is through the Medicare Non-Utilization Project, in which the agency investigates people receiving benefits who are at least 90 years old and who have not used their Medicare Part B benefits for three or more years. In some instances, the agency learns that such a person is actually deceased, but a surviving child has continued to take the deceased person’s benefits.
In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The Kwiatkowski case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
United States Files Lawsuit Against Jacksonville-Based Ambulance CompanyRead the Press Release
Jacksonville, Florida B United States Attorney A. Lee Bentley, III announces today that the United States has formally filed a lawsuit against Liberty Ambulance Services, Inc., a Jacksonville-based ambulance company. This lawsuit is brought pursuant to the False Claims Act and the Anti-Kickback Statute.
In its complaint, the government describes a 10-year scheme in which Liberty Ambulance deliberately and knowingly submitted false claims to federally subsidized healthcare programs. The complaint alleges that Liberty was not only acutely aware that false claims were being submitted, but also directed that these false claims be submitted so as to maximize reimbursement. Specific training documents and manuals that Liberty Ambulance used to train its employees to falsify records are attached to the complaint. The government alleges that directives from management resulted in a culture of Liberty knowingly submitting false statements to justify medically unnecessary ambulance transports.
In addition to contending that Liberty Ambulance submitted false claims to the government, the complaint also alleges that Liberty Ambulance engaged in a systematic kickback scheme to further maximize its reimbursement from the federal government. Liberty Ambulance, the complaint alleges, has a policy and practice of offering commercially unreasonable rates to private payors – such as hospitals, nursing homes, and the like – but not offering these same discounts and rates to the government. Liberty Ambulance offers these discounts to the private payors so that they will then provide Liberty Ambulance with exclusive access to their federal government subsidized patient population. In all, through the efforts of Liberty Ambulance, the government alleges that more than $28 million in claims were submitted to the federal healthcare programs. The vast majority of these claims were medically unnecessary, predicated on false statements, and should not have been reimbursable.
This lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Shawn Pelletier, a former employee at Liberty Ambulance. He, too, is a party to the lawsuit filed today.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Office of Personnel Management. It is being handled by Assistant United States Attorney Jason Mehta.
The lawsuit contains allegations only, and there has been no determination of liability.