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Wednesday 29 April 2015
Westmoreland County Man Sentenced to Prison for Preparing Tax Returns in Violation of Court's OrderRead the Press Release
PITTSBURGH - A Westmoreland County resident has been sentenced in federal court to nine months imprisonment, to be followed by 12 months supervised release for violating his term of three years probation, on his conviction of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns, United States Attorney David J. Hickton announced today. As a condition of probation imposed on July 26, 2012, Snow was prohibited from preparing tax returns for anyone but himself and his wife.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Larry E. Snow, 65.
According to information presented to the court at the original plea and sentence, an IRS examination of a sample of returns defendant prepared for 17 taxpayers during the period from April 15, 2005 to April 15, 2009, showed that Snow prepared 63 false and fraudulent income tax returns, resulting in a tax loss of $98,414. At the revocation hearing on April 21, 2015, Judge Cohill determined that Snow had continued to prepare returns in violation of his probation.
In imposing sentence, at the top of the three-month to nine-month Sentencing Guidelines range, the Court stated Snow’s actions were a “blatant disregard” of the Court’s order.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Snow.
West Hartford Tax Preparer Admits Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge, IRS Criminal Investigation, today announced that HAI T. LE, 44, of West Hartford, waived his right to indictment and pleaded guilty yesterday in Bridgeport federal court to filing false tax returns.
According to court documents and statements made in court, LE prepared federal income tax returns for individuals in his community, many of whom were family or friends. When undertaking the tax return preparation, LE would typically ask his clients to provide him their prior returns, purportedly so that LE could verify relevant information. LE would prepare the current year return, but also make and keep copies of the prior returns.
In pleading guilty, LE admitted that after certain clients received the current year refund, he would improperly use the prior returns to prepare false amended returns purportedly on behalf of his clients. The amended returns included false information, including unwarranted residential energy credits, education credits, and tuition and fees deductions, and incorrectly reflected that the taxpayer was entitled to an additional refund. Unbeknownst to his clients, LE filed the amended returns with the Internal Revenue Service and included his own residence as the return address. In most cases, the IRS sent a refund check to the listed address. LE then endorsed his client’s name and his own on the reverse of the check to make it appear that the check had been signed over to him. He then deposited the check into one of his bank accounts and used the funds for living expenses and the purchase of a $50,000 Certificate of Deposit.
Between March 2010 and August 2010, LE prepared and filed 28 fraudulent federal amended tax returns, utilizing his clients’ information without their knowledge in order to obtain a total of $138,826 in refunds. Six refunds totaling $32,752 were stopped prior to a check being issued, resulting in an actual loss to the IRS of $106,074.
LE pleaded guilty to three counts of filing a false claim with the Internal Revenue Service. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on September 1, 2015, at which time he faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, and full restitution.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Wellpinit, Washington Man Sentenced to over Eight YearsRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Maurice Loyal Finch III, age 27, of Wellpinit, Washington, was sentenced today after having previously pleaded guilty on January 13, 2015 to one count of Sexual Abuse in Indian Country. United States District Court Judge Salvador Mendoza, Jr. sentenced Finch to a 98-month term of imprisonment, to be followed by life time court supervision after he is released from Federal prison. Finch will also have to register as a sex offender. According to information disclosed during the court proceedings, during the summer of 2011, Finch sexually abused a young boy on the Spokane Indian Reservation. An investigation was started after the boy reported the abuse to his mother. Michael C. Ormsby stated, “Sexual abuse cannot be tolerated in our society, especially when young children are the victims. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting sexual abuse that occurs within federal jurisdiction, including the Indian reservations within this District. I commend the Spokane Tribal Police Department and the FBI for their terrific work on this case.” This investigation was conducted by the FBI and the Spokane Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
Waco Man Sentenced to Federal Prison for Role in Family-Based Marijuana Distribution ConspiracyRead the Press Release
A Waco, TX, man was sentenced to seven years in federal prison for his role in a family-based marijuana distribution conspiracy announced Acting United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Walter S. Smith, Jr., ordered that 59–year-old Phillip Larry Koss pay a $1,000 fine and be placed on supervised release for a period of three years after completing his prison term.
In February, a federal jury in Waco convicted Koss of conspiracy to possess with intent to distribute in excess of 50 kilograms of marijuana. The jury acquitted him of one count of possession with intent to distribute marijuana and one count of maintaining a drug involved premise. According to evidence presented during trial, the defendant participated in a drug trafficking scheme by using his bank account to finance portions of the operation including paying for cell phones, marijuana cultivating equipment and other miscellaneous bills.
On November 29, 2013, authorities executed a search warrant at the defendant’s residence and discovered approximately 12 pounds of tetrahydrocannabinol, commonly known as THC, several firearms and $27,000 in U.S. Currency. Authorities have also recovered approximately 200 pounds of marijuana resulting from related search warrants executed in California as well as traffic stops during this investigation. Testimony also revealed that Koss’ son, Conner, among others, cultivated high grade marijuana in the State of California and arranged for it to be transported to and distributed in the Austin area.
In July 2014, Phillip Larry Koss entered a guilty plea to possession with intent to distribute marijuana, but withdrew his guilty plea in November 2014 prior to sentencing.
Koss’ four co-defendants, including his wife and two sons, have been convicted of their roles in the marijuana trafficking conspiracy and sentenced as a result of this investigation. Last year, Conner Phillip Koss received a sentence of 121 months incarceration; Le’Ann Koss, 70 months incarceration; and, Brian Thomas Smith, two years incarceration. On January 7, 2015, Chad Koss was sentenced to three years probation including six months home confinement and ordered to pay a $1,000 fine.
This investigation was conducted by the McGregor Police Department, Texas Department of Public Safety and the Yuba County (CA) Narcotics Enforcement Team. Assistant United States Attorney Mary F. Kucera prosecuted this case on behalf of the Government.
Vincente Osorio Sentenced to 10 YearsRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Vincente Osorio, 61, of Chicago, Illinois, was sentenced today for conspiracy to possess with intent to distribute over five kilograms of cocaine and attempt to possess with intent to distribute over five kilograms of cocaine.
Osorio was sentenced to 10 years (120 months) imprisonment and 5 years of supervised release.
According to documents filed in this case, between February and April 2014, Osorio conspired with others in an attempt to purchase over 25 kilograms of cocaine. On April 30, 2014 Osorio and a co-conspirator were arrested in Gary, after they traveled from Chicago, Illinois to Gary, Indiana with $125,000 in United States Currency where they attempted to procure 10 kilograms of cocaine.
This case was investigated by the Chicago, Illinois and Orange County, California Divisions within Homeland Security Investigations with assistance from the Illinois State Police and prosecuted by Assistant United States Attorney Thomas M. McGrath.
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U.S. Citizen Pleads Guilty in Connection with Internationally Based Business Opportunity Fraud VenturesRead the Press Release
A U.S. citizen charged in connection with the operation of a series of fraudulent business opportunities based in Costa Rica pleaded guilty today in Miami, the Justice Department announced.
John White was charged in a Nov. 29, 2011, indictment in the Southern District of Florida with conspiracy to commit mail and wire fraud as well as mail fraud and wire fraud counts. White was arrested on Feb. 9, 2012, in Costa Rica pursuant to the indictment, and extradited to the United States on Feb. 11. As part of his guilty plea to the conspiracy charge, White, also known as Gregory Garrett, admitted that he and his co-conspirators fraudulently sold beverage and greeting card business opportunities to victims in the United States.
The case against White is part of the government’s continued nationwide crackdown on business opportunity fraud. In addition to White, 11 other defendants have been charged in connection with related business opportunity fraud ventures that operated in Costa Rica. Nine of those other defendants have been convicted in the United States with sentences ranging from three to 16 years in prison. Two remaining defendants are not yet in the custody of the United States.
“Business opportunity schemes target innocent victims who simply want to work for the American dream,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to prosecute those who commit fraud and take advantage of those seeking to start a new business.”
As part of his guilty plea, White admitted that from 2005 to 2008, he and his co-conspirators fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc. and The Coffee Man Inc. White and his co-conspirators claimed that these opportunities would allow purchasers to sell coffee and greeting cards from display racks located at other retail establishments. The business opportunities cost thousands of dollars each and most purchasers paid at least $10,000. Each company operated for several months and after one company closed, the next opened.
White admitted that the conspiracy used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. The companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere. In reality, White and his co-conspirators operated out of call centers in Costa Rica.
White admitted that he and his co-conspirators made numerous false statements to potential purchasers of the business opportunities, including that purchasers likely would earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.
As alleged in the indictment against White and others, the companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to close deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser’s merchandise display racks. White admitted that he worked as a fronter and reference using assumed names.
White faces a statutory maximum sentence of 25 years in prison, a fine and mandatory restitution on the conspiracy count. U.S. District Court Judge Patricia A. Seitz set a sentencing hearing for Aug. 5 at 10 a.m., at the federal courthouse in Miami.
“This international and domestic investigation shows the Postal Inspection Service’s resolve to protect Americans from business opportunity scams,” said Postal Inspector in Charge Ronald J. Verrochio of the U.S. Postal Inspection Service (USPIS) Miami Division.
Principal Deputy Assistant Attorney General Mizer commended the investigative efforts of USPIS. The case is being prosecuted by Trial Attorney Alan Phelps of the Civil Division’s Consumer Protection Branch.
U.S. Attorney Presents Equitable Sharing Funds to Law Enforcement PartnersRead the Press Release
United States Attorney A. Lee Bentley, III, along with Acting Special Agent in Charge A.D. Wright, DEA Miami Field Division, and United States Marshal William Berger today announce the distribution of more than $2.4 million of criminally forfeited funds to 15 law enforcement agencies for their participation in the successful federal prosecution of Zachary Timothy Rose. On July 16, 2014, Rose was sentenced to 15 years and 8 months in federal prison for conspiracy to distribute and dispense oxycodone and alprazolam, and conspiracy to commit money laundering. As part of the sentence, the Court ordered the forfeiture of $2,461,801, which was deemed the proceeds of the offenses.
Under federal forfeiture laws, criminals can be stripped of assets that were used illegally or purchased with proceeds of illegal activity. The Asset Forfeiture Program takes the profit out of crime and the Equitable Sharing Program provides crime‑fighting resources to state and local law enforcement. Asset forfeiture and equitable sharing are valuable law enforcement tools that send a clear message that crime does not pay.
According to court documents, Rose opened and operated illegitimate pain clinics in Jacksonville and elsewhere. At these clinics, purported patients were prescribed high dosages of pain medications without appropriate medical examinations and assessments. The clinics often saw in excess of 100 patients per day, and many of the individuals were traveling from Ohio, Kentucky, and Tennessee to obtain pain pills.
Pursuant to the Department of Justice Equitable Sharing Program, the funds have been distributed to the Jacksonville Sheriff’s Office, the Florida Department of Financial Services – Division of Insurance Fraud, the Dooly County (Georgia) Sheriff’s Office, the Fernandina Beach Police Department, the Flagler County Sheriff’s Office, the Florida Department of Business and Professional Regulation, the Jacksonville Beach Police Department, the Putnam County Sheriff’s Office, the St. Johns County Sheriff’s Office, the Baker County Sheriff’s Office, the Columbia County Sheriff’s Office, the Green Cove Springs Police Department, the Florida National Guard Counterdrug Program, the Sunrise Police Department, and the Indian River County Sheriff’s Office. These agencies provided critical assistance during the investigation, including identifying, locating, and interviewing witnesses, executing federal search warrants, and processing evidence.
The Drug Enforcement Administration and the Federal Bureau of Investigation handled the investigation of this case, along with the state and local law enforcement agencies. Assistant United States Attorney Jay Taylor prosecuted the case, and the forfeitures were handled by Assistant United States Bonnie Glober. The U.S. Marshals Service was responsible for depositing and distributing the forfeited funds.
Two Orleans Residents Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LATASHA N. ANDERS, age 34, and ARNOLD WILLIAMS, age 33, residents of New Orleans, each pled guilty today to one count of conspiracy to commit wire fraud relating to fraudulent applications they made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. ANDERS worked as a claims adjuster for the GCCF. Beginning in or about October 2010, ANDERS submitted or caused to be submitted, via the internet, claim forms on behalf of her co-conspirators containing false representations and fraudulent documentation that they were employed in the commercial fishing industry at the time of the oil spill, when in fact they were not. ANDERS shared in the claim proceeds in exchange for her assistance. Based upon the fraudulent documentation, ANDERS obtained $250,000 in claim proceeds to which she and her co-conspirators were not entitled.
Additionally, ANDERS conspired with WILLIAMS to file a false claim for loss earnings on his behalf, when in fact he did not work in the commercial fishing industry. Based upon the fraudulent claim, WILLIAMS received $50,000 to which he was not entitled. Both ANDERS and WILLIAMS admitted to purchasing a home for $110,000 with the illegal proceeds they received from the fraudulent claims.
ANDERS faces a maximum term of imprisonment of five years, a $250,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $250,000. WILLIAMS faces a maximum term of imprisonment of five years, a $50,000 fine, three years of supervised release following imprisonment, and restitution in the amount of $50,000. U.S. District Judge Martin L.C. Feldman set sentencing for September 2, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U. S. Attorney Julia K. Evans is in charge of the prosecution.
Two Ordered to Federal Prison in Drug Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Two men have been ordered to federal prison following their roles in a large-scale drug-trafficking conspiracy, announced U.S. Attorney Kenneth Magidson. Guillermo Herrera, 55, and Hector Alberto Burton aka Hector Alberto Camacho, 41, were found guilty by a jury following a three-day trial and less than two hours of deliberation on Feb. 11, 2015. Both were found guilty of conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana and aiding and abetting each other to possess with the intent to distribute more than 100 kilograms of marijuana on Jan. 22, 2013.
Today, Senior U.S. District Judge Hayden Head, who presided over the trial, handed both men sentences of 87 months in federal prison. Both will also serve five years of supervised release following completion of their prison terms. At the hearing today, additional argument was presented including that Burton changed his name after speaking to law enforcement in 2013 and that Herrera has been continuously involved in criminal conduct since his 20s. Also, Judge Head ordered Herrera be deported to Cuba if U.S./Cuba relations are ever re-established. In handing down the sentence, Judge Head noted that this was a significant conspiracy involving a sophisticated organization.
Herrera, of Edinburg, and Burton, of Commiskey, Ind., were arrested in 2014 on charges relating to their participation in a South Texas drug-trafficking organization. At trial, the government presented evidence regarding the seizure of more than 500 pounds of marijuana. Evidence showed that Burton orchestrated the transportation of the marijuana from another state and Herrera was hired to drive the load.
Previously released on bond, Burton was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Herrera has been and will remain in custody.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Texas Department of Public Safety, Aransas Pass Police Department, U.S. Marshals Service and the Kingsville Specialized Narcotics Task Force. Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
Two Charged with Transporting 5,820 Pairs of Shoes from Oregon to Utah in Stolen TruckRead the Press Release
SALT LAKE CITY – Two individuals stopped by law enforcement officers in Utah following an attempt to locate a stolen truck request from law enforcement authorities in Multnomah County, Oregon, were indicted by a federal grand jury in Utah Wednesday afternoon.
Juan Carlos Andino-Mejia, age 24, of Los Angeles, a citizen of Honduras, and Marlon Emilio Vasquez-Garcia, age 45, of Los Angeles, a citizen of El Salvador, are charged with one count of interstate transportation of stolen property and one count of re-entering the country after a previous deportation. The indictment alleges the two transported 5,820 pairs of Keen Shoes with a value of more than $5,000 from Multnomah County, Ore., to Box Elder County, Utah.
The shoes were in the truck when it was reported stolen from a trucking company in Oregon, on March 23, 2015. The trucking company notified law enforcement authorities that a GPS on the truck indicated it was at a truck stop in Box Elder County, Utah. The Utah Highway Patrol, Box Elder County Sheriff’s Office, and the Tremonton City Police were involved in stopping the truck and conducting the investigation. ICE Enforcement and Removal officers also contributed to the investigation.
Andino-Meja and Vasquez-Garcia, who have used a variety of names, have had multiple deportations from the United States. They face up to 10 years in prison if convicted of interstate transportation of stolen goods and up to 10 years in prison for re-entering the country after a previous deportation. An initial appearance on the charges will be scheduled for the pair.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Three brothers plead guilty to $145 million Biofuels Fraud scheme in IndianaRead the Press Release
INDIANAPOLIS- Chad Ducey, 39, of Fishers, Indiana, pleaded guilty yesterday for his role in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives. His two brothers, Chris Ducey, 48, of North Webster, Indiana, and Craig Ducey, 44, of Fishers, pleaded guilty last week for their roles in the same scheme. The Ducey brothers operated E-biofuels LLC, from a facility in Middletown, Indiana. As part of the scheme, they sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming that the fuel was eligible for federal renewable energy incentives, when they knew it was not. In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over 625 investors and shareholders of Imperial Petroleum, a publicly-traded company and the parent company of E-biofuels, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler of the Southern District of Indiana.
“There are opportunities in Indiana for innovators in agriculture and biofuels,” said U.S. Attorney Minkler. “The Duceys and their co-conspirators in New Jersey undercut those opportunities by exchanging greed and fraud for innovation. These criminal prosecutions send the message that a prison sentence waits at the end of that exchange.”
“This wide ranging criminal conspiracy sought to undermine the biofuels program and its positive benefits to our nation’s economy and environment,” said Assistant Attorney General Cruden. “This case should send a strong message that we are watching this market very closely and we won’t allow lawbreakers to pursue profits at the expense of our nation’s interests.”
“This kind of criminal activity has real consequences, including undermining a law that reduces our impact on climate change,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance for the Environmental Protection Agency (EPA). “These guilty pleas demonstrate EPA’s commitment, working closely with our partners at the Department of Justice, to pursue criminal cases vigorously and protect companies that play by the rules.”
“This investigation resulted in the disruption of one of the largest tax and securities fraud schemes in Indiana history,” said FBI Special Agent in Charge W. Jay Abbott. “The FBI, with federal partners, identified and investigated a group who manipulated and utilized federal governmental programs to line their pockets by fraud. They deceived customers, shareholders, and the American public. This type of fraudulent activity is not a victimless crime – it harms the American people and the economy.”
From 2007 through 2012, E‑biofuels had a biodiesel manufacturing plant in Middletown. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a one dollar per gallon tax credit as well as another valuable credit called a Renewable Identification Number (RIN) that petroleum refiners and importers must comply with to satisfy their federal renewable fuel obligations.
The Ducey brothers admitted that they knew that E-biofuels was fraudulently reselling biodiesel that they obtained from co-conspirators in New Jersey, which had already been used to claim biodiesel incentives. By falsely claiming to have made it themselves in Middletown, the Ducey brothers and their co-conspirators created a second set of invalid incentives, which they passed on to their customers. They realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Over the course of approximately two years, the co-conspirators fraudulently sold more than 35 million gallons of fuel for a total cost of over $145 million. The co-conspirators and their companies realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
The Ducey brothers pleaded guilty to conspiracy, false claims against the Internal Revenue Service (IRS), wire fraud and lying to the EPA and the IRS. In particular, Chad Ducey, an engineer by training, caused a third-party engineer to submit false reports to justify the production at E-biofuels. Those reports claimed that E-biofuels was using the chemical process of transesterification to produce biodiesel, when in fact, the company simply re-sold biodiesel that had been made by others and had already been used to claim biodiesel incentives.
“The object of this interstate scheme created by the Ducey brothers and their co-conspirators was to defraud the government and the taxpaying public,” said Special Agent in Charge Stephen Boyd of IRS Criminal Investigation. “IRS Criminal Investigation is vigilant in our investigations of this scheme and other schemes that defraud honest, hardworking, Americans. We will continue to work with the United States Attorney’s Office to prosecute all those involved.”
The Ducey brothers face up to 20 years of imprisonment on some of the charges, as well as large fines and the requirement that they provide full restitution to the victims of this crime, which include U.S. taxpayers, truck stop companies, fuel traders and others. Craig Ducey will also have to pay restitution to the victims of the securities fraud. The co-conspirators will also have to forfeit $7.5 million in seized funds, jewelry, artwork, cars and homes they purchased with the funds obtained through the scheme.
The New Jersey co-conspirators, Joseph Furando and Katirina Pattison, have already pleaded guilty for their involvement in the scheme, along with the companies they operated, CIMA Green and Caravan Trading Company, both previously located in Park Ridge, New Jersey.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota and of the U.S. Attorney’s Office of the Southern District of Indiana, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake Schmidt of the Southern District of Indiana and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.
Three Charged with Distribution of HeroinRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that three Shippensburg residents were indicted today by a federal grand jury in Harrisburg on charges of unlawful distribution of at least 100 grams of heroin.
According to United States Attorney Peter Smith, Jonathan Santana, 33, Dorothy Washington, 28, and Angelo Joy Harrison, 38, all of Shippensburg, Franklin County were charged in a two count indictment with unlawfully distributing at least 100 grams of heroin and conspiring with each other to distribute heroin, from November 2014 to March 2015.
The matter was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office, the Pennsylvania State Police and the Franklin County Drug Task Force. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a $5 million 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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Three Brothers Plead Guilty to $145 Million Biofuels Fraud Scheme in IndianaRead the Press Release
Chad Ducey, 39, of Fishers, Indiana, pleaded guilty yesterday for his role in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel incentives. His two brothers, Chris Ducey, 48, of North Webster, Indiana, and Craig Ducey, 44, of Fishers, pleaded guilty last week for their roles in the same scheme. The Ducey brothers operated E-biofuels LLC, from a facility in Middletown, Indiana. As part of the scheme, they sold over 35 million gallons of biodiesel to customers for more than $145 million by falsely claiming that the fuel was eligible for federal renewable energy incentives, when they knew it was not. In addition, Craig Ducey pleaded guilty to a related $58.9 million securities fraud, which victimized over 625 investors and shareholders of Imperial Petroleum, a publicly-traded company and the parent company of E-biofuels, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler of the Southern District of Indiana.
“This wide ranging criminal conspiracy sought to undermine the biofuels program and its positive benefits to our nation’s economy and environment,” said Assistant Attorney General Cruden. “This case should send a strong message that we are watching this market very closely and we won’t allow lawbreakers to pursue profits at the expense of our nation’s interests.”
“There are opportunities in Indiana for innovators in agriculture and biofuels,” said U.S. Attorney Minkler. “The Duceys and their co-conspirators in New Jersey undercut those opportunities by exchanging greed and fraud for innovation. These criminal prosecutions send the message that a prison sentence waits at the end of that exchange.”
“This kind of criminal activity has real consequences, including undermining a law that reduces our impact on climate change,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance for the Environmental Protection Agency (EPA). “Today’s guilty plea demonstrates EPA’s commitment, working closely with our partners at the Department of Justice, to pursue criminal cases vigorously and protect companies that play by the rules.”
From 2007 through 2012, E‑biofuels had a biodiesel manufacturing plant in Middletown. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a one dollar per gallon tax credit as well as another valuable credit called a Renewable Identification Number (RIN) that petroleum refiners and importers must comply with to satisfy their federal renewable fuel obligations.
The Ducey brothers admitted that they knew that E-biofuels was fraudulently reselling biodiesel that they obtained from co-conspirators in New Jersey, which had already been used to claim biodiesel incentives. By falsely claiming to have made it themselves in Middletown, the Ducey brothers and their co-conspirators created a second set of invalid incentives, which they passed on to their customers. They realized huge per gallon profits through this scheme, sometimes in excess of $12,000 per truckload. Over the course of approximately two years, the co-conspirators fraudulently sold more than 35 million gallons of fuel for a total cost of over $145 million. The co-conspirators and their companies realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
The Ducey brothers pleaded guilty to conspiracy, false claims against the Internal Revenue Service (IRS), wire fraud and lying to the EPA and the IRS. In particular, Chad Ducey, an engineer by training, caused a third-party engineer to submit false reports to justify the production at E-biofuels. Those reports claimed that E-biofuels was using the chemical process of transesterification to produce biodiesel, when in fact, the company simply re-sold biodiesel that had been made by others and had already been used to claim biodiesel incentives.
“The object of this interstate scheme created by the Ducey brothers and their co-conspirators was to defraud the government and the taxpaying public,” said Special Agent in Charge Stephen Boyd of IRS Criminal Investigation. IRS Criminal Investigation is vigilant in our investigations of this scheme and other schemes that defraud honest, hardworking, Americans. We will continue to work with the United States Attorney’s Office to prosecute all those involved.
“This investigation resulted in the disruption of one of the largest tax and securities fraud schemes in Indiana history,” said Special Agent in Charge W. Jay Abbott for FBI’s Indianapolis division. “The FBI, with federal partners, identified and investigated a group who manipulated and utilized federal governmental programs to line their pockets by fraud. They deceived customers, shareholders, and the American public. This type of fraudulent activity is not a victimless crime – it harms the American people and the economy.”
The Ducey brothers face up to 20 years of imprisonment on some of the charges, as well as large fines and the requirement that they provide full restitution to the victims of this crime, which include U.S. taxpayers, truck stop companies, fuel traders and others. Craig Ducey will also have to pay restitution to the victims of the securities fraud. The co-conspirators will also have to forfeit $7.5 million in seized funds, jewelry, artwork, cars and homes they purchased with the funds obtained through the scheme.
The New Jersey co-conspirators, Joseph Furando and Katirina Pattison, have already pleaded guilty for their involvement in the scheme, along with the companies they operated, CIMA Green and Caravan Trading Company, both previously located in Park Ridge, New Jersey.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota and of the U.S. Attorney’s Office of the Southern District of Indiana, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section of the Department of Justice’s Environment and Natural Resources Division and Special Assistant U.S. Attorney Jake Schmidt of the Southern District of Indiana and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS- Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.
Spokane Man Sentenced to Five Years in Federal PrisonRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Shane A. Grifford, age 28, of Spokane, Washington, was sentenced today after having previously pleaded guilty on December 16, 2014 to Distribution of Child Pornography Images. United States District Court Judge Salvador Mendoza Jr. sentenced Grifford to a five year term of imprisonment. Gifford’s five year sentence of imprisonment will be followed by a fifteen year term of court supervision after he is released from Federal prison. In addition, Grifford will be required to register as a sex offender.
According to court records, on four separate occasions between August 4, 2013 and September 11, 2013, a Homeland Security Investigations (HSI) Special Agent, acting in undercover capacities on a Peer to Peer (P2P) file sharing program, received child pornography images from Grifford. As a result of further investigation, on November 1, 2013, HSI executed a federal search warrant at Grifford’s residence in Spokane, Washington. Grifford’s computer and other digital items of evidence were seized. A forensic examination of Grifford’s computer and hard drives revealed over 445 images and 213 videos depicting minors engaged in sexually explicit conduct. Some of the images show bondage and a number of the images are child pornography images of children under the age of 12 years.
Michael C. Ormsby said, “Prosecuting offenders who are distributing child pornography is a priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit Page -2- children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations (HIS) a component of the Department of Homeland Security. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
Spokane Man Sentenced to 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Nicholas William Soto, age 27, of Spokane, Washington was sentenced after having previously pleaded guilty on January 13, 2015 to Production of Child Pornography. United States District Court Judge Salvador Mendoza, Jr. sentenced Soto to a 15 year term of imprisonment. Soto’s term of imprisonment will be followed by a 15 year term of court supervision after he is released from federal prison. In addition, Soto will be required to register as a sex offender.
According to court records, on August 8, 2014, Department of Homeland Security Special Agents executed a federal search warrant at Soto’s residence in Spokane, Washington. The federal search warrant was based on the prior discovery of a child pornography image posted on a foreign website. During a recorded interview, Soto admitted to federal agents that he had produced a child pornography image of himself engaged in a sex act with a female-child-victim and posted that image online. Soto is also expected to plead guilty in Spokane County Superior Court to Rape of Child in the First Degree.
Michael C. Ormsby said “I commend the outstanding investigative work in this case by the Department of Homeland Security. This is an egregious case that requires the severe punishment imposed by the Court today. The United States Attorney’s Office in the Eastern District of Washington is committed to aggressively prosecuting and seeking appropriate punishment for crimes against children.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations (HSI), a component of the Department of Homeland Security,. The case was prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
Slidell Man Pleads Guilty to Defrauding Gulf Coast Claims FacilityRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONALD BACKES, age 48, of Slidell, pled guilty today to wire fraud relating to an application for financial assistance in the aftermath of the Deepwater Horizon oil spill.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, in August and September 2010 BACKES falsely represented to the GCCF that he earned $156,000 annually from a shrimping business and that another individual earned $36,000 annually as BACKES’s employee. To support these claims, BACKES created and submitted to the GCCF false receipts of shrimp sales. As a result of BACKES’s conduct, GCCF issued checks totaling $192,000.
BACKES faces a maximum term of imprisonment of twenty years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for August 19, 2015.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
Ronald Backes Factual Basis
Six Albuquerque Residents Indicted on Federal Robbery, Firearms and Prescription Drug Trafficking Crimes Arising Out of Pharmacy RobberiesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Gorden Eden, Jr., of the Albuquerque Police Department convened a press conference today to announce the filing of indictments against six individuals who allegedly robbed retail pharmacies in Albuquerque, N.M., to illegally obtain Oxycodone and other highly addictive opioid painkillers.
U.S. Attorney Damon P. Martinez opened the conference by stating, “Like many communities across the country, retail pharmacies in the Albuquerque metropolitan area recently have become targets of individuals who rob them, often at gunpoint, to obtain Oxycodone and other opioid painkillers with the intention of illegally selling the pills for profit. Here in Albuquerque and throughout New Mexico, the recent rash of pharmacy robberies is an example of why New Mexico’s violent crime and opioid abuse and overdose death rates are among the highest in the country. The federal law enforcement community is working with its state and local partners to target pharmacy robbers for federal investigation and prosecution through two federal initiatives: the Worst of the Worst Anti-Violence Initiative and the HOPE Initiative.”
“These cases illustrate how a team of federal and local law enforcement agencies can work together to put a dent in the high rate of violent crime afflicting our area. The FBI brings years of experience fighting this type of crime, along with highly trained investigators and intelligence analysts always looking at the big picture and sharing information with our partners,” said FBI Special Agent Carol K.O. Lee. “These arrests were made possible thanks to the dedication and persistence of a team of FBI Special Agents and Professional Support staff, together with the U.S. Attorney’s Office, U.S. Drug Enforcement Administration, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Bernalillo County Sheriff’s Office, Metropolitan Detention Center, and the Albuquerque Police Department.”
“DEA is committed to thoroughly investigating and arresting anyone responsible for the diversion of opioids, whether it be individuals who are prescribed these medications and divert them for personal profit, or drug organizations who think they can violently rob pharmacies to sell these drugs in our communities,” said DEA Special Agent in Charge Will R. Glaspy. “We will continue to fight this epidemic and lock up anyone trying to profit from the sale of these dangerous and highly addictive drugs.”
Four indictments charging a total of six defendants with robbing retail pharmacies in Albuquerque were filed under seal yesterday and were unsealed earlier today. The indictments charge the following Albuquerque residents with crimes arising out of retail pharmacy robberies: Roy Christopher, 28, Josephine Duran, 23, Blake Gallardo, 22, Valentin Garcia, 22, Victor Hurtado, 20, and Joseph Montano, 22. Hurtado and Montano were arrested this morning. Christopher, who is currently in state custody, will be transferred to federal custody to face the charges against him. Duran, Gallardo and Garcia have yet to be arrested and are considered fugitives.
The indictments allege violations of the Controlled Substance Registrant Protection Act and the Safe Doses Act, laws passed to address the theft and diversion of prescription drugs. The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It creates penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
Gallardo and Duran are charged in Indictment 15-CR-1504-JB, with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) brandishing a firearm during a crime of violence; (3) violating the Controlled Substance Registrant Act by robbery involving controlled substance; (4) violating the Safe Doses Act by theft of medical products; and (5) possession of Oxycodone with intent to distribute. The charges against Gallardo and Duran arise out of the armed robbery of a Walgreens Pharmacy on Jan. 30, 2015.
Hurtado, Montano and Garcia are separately charged in two indictments with the same five crimes as Gallardo and Duran. Hurtado and Montano are charged in Indictment 15-CR-1506-JB, based on the armed robbery of a Smith’s Pharmacy on Jan. 6, 2015, and Garcia is charged in Indictment 15CR-1505-JB, based on the armed robbery of a Walgreens Pharmacy on Jan. 6, 2015.
Christopher is charged in Indictment 15-CR-1504-JB, with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) violating the Safe Doses Act by theft of medical products; and (3) possession of Oxycodone with intent to distribute. The charges against Christopher arise out of the robbery of a CVS Pharmacy on Aug. 14, 2014.
The charges in the indictments carry the following statutory maximum penalties on conviction: Hobbs Act – 20 years of imprisonment; robbery of controlled substances – 25 years of imprisonment; Safe Doses Act – 30 years of imprisonment; possession of Oxycodone with intent to distribute – 20 years in prison. The statutory maximum penalty for a conviction for brandishing a firearm during a crime of violence is a mandatory seven years in prison to be served consecutive to any prison sentence on the other sentence imposed on the other charges.
“The Bernalillo County District Attorney's Office has been working with the U.S. Attorney’s Office, as well as local and federal law enforcement agencies, to ensure a smooth transition of cases from the state prosecution level to the federal prosecution level. We have maintained an open flow of communication by meeting with representatives of the various agencies and offices to discuss timelines and case developments, which has been particularly necessary given the new case management rules for the district court,” said 2nd Judicial District Attorney Kari E. Brandenburg. “Our goal is to facilitate justice at any level, and we value our partnership with the U.S. Attorney's Office.”
Noting that three of the four indictments include allegations that firearms were brandished at pharmacy employees during the robberies, ATF Special Agent in Charge Thomas G. Atteberry said, “Today's indictments are an excellent example of the law enforcement partnerships we share here in New Mexico. When violent individuals are taken off the street, our communities breathe a little easier. I want to acknowledge the leadership of U.S. Attorney Damon P. Martinez and his prosecution team for their tenacity and diligence.”
“APD is working with retail pharmacies to enhance their security systems in an effort to deter pharmacy robberies, identify pharmacy robbers, and prevent the illegal distribution of prescription opioids,” said APD Police Chief Gorden Eden, Jr. “APD appreciates the support of its federal counterparts in ensuring that violent individuals do not terrorize our local businesses, and is grateful for the support and leadership of the U.S. Attorney’s Office in these efforts.”
These cases were investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The cases are being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
These cases are being prosecuted pursuant to a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The cases also are being prosecuted 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 and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Photographs of the fugitives, Josephine Duran, Blake Gallardo and Valentin Garcia, are attached to this press release. Anyone with information on the whereabouts of this/these fugitive(s) is asked to contact the Albuquerque FBI (24 hours) at (505) 889-1300. Tips also can be submitted online at https://tips.fbi.gov.
15-cr-1503_jb_indictment_roy_christopher.pdf 15-cr-1503_jb_indictment_roy_christopher.pdf 15-cr-1505_jb_indictment_garcia.pdf 15-cr-1506_jb_indictment_hurtado_and_montano.pdf
Settlement Agreement Ensures Lawrence Addresses Water PollutionRead the Press Release
The City of Lawrence entered into a Consent Decree today with the Department of Justice to address violations of the Clean Water Act in connection with sewer overflows and the discharge of contaminated stormwater.
The Consent Decree is the result of a federal enforcement action brought by the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA). The complaint filed simultaneously with the Consent Decree alleges that Lawrence discharged untreated sewage without permit authorization and violated conditions of its permit controlling stormwater discharges.
“Unlawful discharges of pollutants from cities and towns during storm events remain among the most significant challenges to improving water quality in New England,” said U.S. Attorney Carmen M. Ortiz. “By entering into this Consent Decree, the City of Lawrence has agreed to take significant steps to improve water quality, and the quality of life along the Merrimack River corridor.”
“This settlement ensures progress will be made in controlling major sources of pollution to the Merrimack River,” said Curt Spalding, Administrator of EPA’s New England region. “We welcome this progress toward restoring the River and look forward to the day when it is safe for all kinds of recreation.”
The Consent Decree imposes a schedule for the City to develop sewer system management programs to investigate and rehabilitate its assets, minimizing the discharge of untreated sewage. In addition, the City will institute programs to detect and eliminate sources of wastewater contamination of its stormwater system, as well as control runoff from land redevelopment projects.
Preventing sewage from contaminating surface and ground waters of the United States is one of EPA’s National Enforcement Initiatives. Municipal wastewater presents significant health threats to those using contaminated waters for recreational use and downstream drinking water systems.
The Consent Decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department Web site at http://www.justice.gov/enrd/Consent_Decrees.html.
U.S. Attorney Ortiz and EPA Regional Administrator Spalding made the announcement today. The case is being litigated by Assistant U.S. Attorney Susan M. Poswistilo of Ortiz’s Civil Division, Senior Attorney Michael Wagner of the EPA, and Trial Attorney Brian Donohue of the Department of Justice’s Environment and Natural Resources Division.
River Grove Man Sentenced to 36 Months for Impersonating A United States Marshal Service EmployeeRead the Press Release
CHICAGO — A River Grove man was sentenced to 3 years in prison today as a result of his conviction for impersonating an employee of the U.S. Marshals Service on two occasions in 2013. The defendant, ROBERT P. ROZYCKI, 39pledguilty to the offense in November 2014. U.S. District Court Judge John J. Tharp, who imposed the sentence, also ordered Rozycki to one year of supervised release to include mental health treatment. Rozycki has been in custody since his arrest in June, 2014.
According to court records, in March 2013, Rozycki was at a McDonald’s restaurant located in Chicago’s Wrigleyville neighborhood wearing clothing and paraphernalia which he intended to resemble the duty uniform of a Deputy U.S. Marshal, including a dark long-sleeved t-shirt worn under a grey golf shirt, khaki cargo pants, a law enforcement utility belt equipped with handcuffs and a police radio, and a thigh holster containing what appeared to be a firearm. While dressed in this fashion, he approached a customer, and after a brief but heated exchange, he directed the customer to stand up. When the customer refused, Rozycki forcibly placed the customer in handcuffs and escorted him out of the restaurant. He released the customer a short time later at the direction of a McDonald’s manager.
In addition, in May 2013, the defendant was in the parking lot of the same McDonald’s restaurant wearing clothing and paraphernalia which he intended to resemble the duty uniform of a Deputy U.S. Marshal similar to the earlier impersonation. In addition, his car, a black Crown Victoria, was equipped to resemble a law enforcement vehicle with LED emergency lights, was parked in the same lot.
“The defendant usurped the authority of a legitimate law enforcement agent when he donned the uniform and equipment of a Deputy U.S. Marshal,” wrote Assistant U.S. Attorney Kathryn L. Maliza in the Government’s Sentencing Memorandum.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Roberto Robinson, Acting United States Marshal for the Northern District of Illinois.
The case was prosecuted by Assistant U.S. Attorney Kathryn Malizia.
Registered Sex Offender Residing in El Paso Enters Guilty Plea to Receipt and Distribution of over 93,000 Images of Child PornographyRead the Press Release
This morning, 44–year-old Alexandro Silva of El Paso pleaded guilty to receipt and distribution of more than 93,000 images of child pornography announced Acting United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
As a result of his plea, Silva faces between five and 20 years in federal prison. Sentencing is expected to occur in the next 60-90 days before Senior United States District Judge David Briones.
According to court records, on August 29, 2014, HSI agents executed a search warrant at Silva’s residence and seized various items including a computer tower, two laptop computers and various electronic media. A subsequent forensics examination of the defendant’s desktop computer revealed the presence of more than 93,000 images and 55 videos of minors engaged in sexually explicit conduct.
Silva has remained in federal custody since his arrest on August 29, 2014.
This case was investigated by Homeland Security Investigations together with the El Paso County Sheriff’s Office. Assistant U.S. Attorney Rifian Newaz is prosecuting this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Registered Child Sex Offender Pleads Guilty to Receipt of Child PornographyRead the Press Release
WILMINGTON, Del. – Eric R. Aldrich, age 24, of Milford, Delaware, pled guilty today to Receipt of Child Pornography, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware.
Aldrich was previously convicted in Delaware of Dealing in Child Pornography in October 2011. He was sentenced to 15 years in prison, suspended after service of 2 years. Prior to this incident, he was last released from custody and placed on probation in May 2014.
As a result of his prior convictions, Aldrich faces enhanced sentencing penalties under federal law, including a mandatory minimum sentence of fifteen years, and a maximum sentence of forty years, in prison. Aldrich also faces a term of supervised release of five years to life following his prison sentence, and he will be required to continue to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. Aldrich will be sentenced on August 7, 2015 by Chief United States District Judge Leonard P. Stark.
According to statements made and documents filed in court, Aldrich came to the attention of the Delaware Child Predator Task Force (the “Task Force”) in June 2014, about one month after his release from custody. That investigation began after the Task Force received cybertips from the National Center for Missing and Exploited Children (NCMEC). The cybertips reported that a YouTube user, subsequently identified as Aldrich, had uploaded files containing child pornography to YouTube.
On June 18, 2014, Task Force officers executed a state search warrant at Aldrich’s Milford residence, where they found computer equipment containing over 5,000 still images and 200 videos depicting child pornography. A significant portion of the child pornography featured mostly prepubescent and adolescent girls being sexually abused by adult males, and webcam images of young teen girls engaged in sexual conduct. During an interview with law enforcement agents, Aldrich admitted that, since his release from prison, he had been accessing the Internet via a laptop and downloading files containing child pornography.
This case was investigated by the Delaware Child Predator Task Force and the United States Department of Homeland Security, Homeland Security Investigations. This case is being prosecuted by Assistant United States Attorney Ed McAndrew.Raleigh Man Sentenced for Receiving Child PornographyRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced ROY CHRISTOPHER PERRY, 49, of Raleigh to 151 months imprisonment followed by 5 years of supervised release.
On January 28, 2015, PERRY pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to public information, in January, 2014, an investigation was initiated relating to the distribution and receipt of child pornography through Gnutella, a peer-to-peer file sharing network. Earlier that month, an Internet Protocol (IP) address was identified. As the investigation continued the subscriber assigned to the IP address was captured and identified as PERRY.
On June 18, 2014, a search warrant was executed at PERRY’s residence. When the officers arrived, PERRY’s computer was running and attempting to download files. Forensic examination of the defendant’s computer and media storage devices revealed over 5,000 images of child pornography.
The criminal investigation of this case was conducted by the Raleigh Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Prior Sex Offender from Los Alamos Sentenced to Ten Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Kyle Morrow, 30, of Los Alamos, N.M., was sentenced this morning in federal court to 120 months in federal prison followed by ten years of supervised release for possession of a visual depiction of a minor engaged in sexually explicit conduct. Morrow will be required to register as a sex offender after completing his prison sentence.
Morrow was arrested on federal child pornography charges on Mar. 7, 2014, based on a criminal complaint alleging possession of child pornography. At the time of his arrest, Morrow was residing in a half-way house in Albuquerque as he was transiting from a federal prison for a prior child pornography conviction. According to the criminal complaint, FBI initiated an investigation into Morrow after staff at the half-way house found child pornography on his cellular phone and confiscated the phone. The FBI seized Morrow’s phone in Feb. 2014 pursuant to a search warrant and submitted the phone for forensic examination by the New Mexico Regional Forensic Laboratory. A forensic examination revealed that Morrow’s phone contained more than 1000 images consistent with child pornography.
On Jan. 28, 2015, Morrow entered a guilty plea to a federal information charging him with possession of a visual depiction of a minor engaged in sexually explicit conduct. In his plea agreement, Morrow admitted that on Feb. 4, 2014, he possessed visual depictions of child pornography while residing in a halfway house and while still in the custody of the Bureau of Prisons completing a 37-month sentence for a prior child pornography conviction. More specifically, Morrow admitted possessing child pornography images on his cellular phone.
This case was investigated by the Albuquerque office of the FBI and the New Mexico Regional Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Pipe Line Company’s Project Coordinator at Roscoe, Texas, Facility Pleads Guilty to Wire FraudRead the Press Release
LUBBOCK, Texas — A 55 year-old Roscoe, Texas, man appeared in federal court today before U.S. Magistrate Judge Nancy M. Koenig and pleaded guilty to a felony offense stemming from a fraudulent invoicing scheme he ran while working at Chevron Pipe Line Company, announced, John Parker, Acting U.S. Attorney for the Northern District of Texas.
Gerald Allen Williams pleaded guilty to a criminal information charging one count of wire fraud. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Judge Koenig ordered that he remain on bond pending sentencing, a date for which was not set.
According to documents filed in the case, Williams worked as a Project Coordinator at Chevron Pipe Line Company’s Roscoe, Texas, facility. He was responsible for ensuring the completion of several construction and maintenance projects.
E.D. Walton Construction Company (EDW) out of Snyder, Texas, was a Chevron contractor that performed various construction and maintenance projects for Chevron.
Sometime around 2006-2007, according to plea documents filed, Williams approached EDW about a fraudulent invoicing scheme. EDW would create fictitious invoices and submit them to Chevron through the Arriba System, Chevron’s system for receiving and paying invoices. Williams would approve the fictitious invoices for payment, and the fictitious invoices would be processed for payment to EDW. Once EDW received payment for the fictitious invoices, it would pay Williams, in cash, the exact amount of the fictitious invoice. EDW did not receive any of the proceeds from the fictitious invoicing; Williams received all the proceeds. The scheme continued until approximately December 2011.
Williams admitted that he knowingly devised or intended to devise the scheme to defraud Chevron of money by means of false and fraudulent invoices. He further admitted he acted with the specific intent to deceive or cheat Chevron into thinking that EDW had completed various construction and maintenance projects for Chevron, when in fact, Williams knew EDW had not completed those projects.
The FBI investigated the case. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Philadelphia Woman Admits to Concealing Child's Death in Order to Receive Government BenefitsRead the Press Release
PHILADELPHIA - Nakia Calicat, 38, of Philadelphia, PA, pleaded guilty today to concealing the death of her child in order to continue receiving Supplemental Security Income payments for her deceased daughter. Calicat pleaded guilty to 10 counts of wire fraud, one count of theft of government money, two counts of false statements, and one count of Social Security representative payee fraud. U.S. District Court Judge Petrese B. Tucker scheduled a sentencing hearing for July 30, 2015.
Calicat gave birth to a child in December 2006 and filed for SSI benefits in March 2007. The child died in July of 2010 but the Social Security Administration (“SSA”) did not learn of the death until August of 2013. SSA sent notice to Calicat that the benefits for her child would be terminated. In October 2013, Calicat told an SSA employee that her child was still alive. In August 2014, Calicat spoke to a Special Agent with the Social Security Administration Office of Inspector General and, again, lied about her daughter’s death. Between July 2010 and August 2013, Calicat illegally received Social Security benefits on behalf of her deceased child defrauding the government of approximately $26,224.
Calicat faces a possible advisory sentencing guideline range of at least six to 12 months in prison, up to three years of supervised release, restitution of $26,224 and a $1,400 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Non-Profit's Executive Director Charged in Alleged Fraud SchemeRead the Press Release
PHILADELPHIA - Rodnell Griffin, 67, of Philadelphia, Pennsylvania, was charged by indictment, unsealed today, with wire fraud in connection with a scheme to defraud the non-profit organization where she worked, announced United States Attorney Zane David Memeger. Griffin was the executive director of a non-profit organization in Philadelphia.
According to the indictment, Griffin withdrew more than $85,000 from the organization's bank accounts, between January 2007 and October 2013, and used the cash for personal expenses. Griffin allegedly obtained automated teller machine cards for some of the non-profit organization’s bank accounts. Her alleged use of the cards also caused the non-profit organization to incur more than $5,300 in bank fees and charges.
If convicted, Griffin faces a possible advisory guideline sentencing range of 30 to 37 months in prison, a three-year period of supervised release, restitution to the organization, and a $1,000 special assessment.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia's Office of Inspector General, and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
New Jersey Man Charged with Federal Heroin Trafficking OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New Jersey man has been indicted by a federal grand jury in Harrisburg on multiple drug trafficking charges.
According to United States Attorney Peter Smith, Ladon Huntley, 38, Newark, NJ, was charged by the grand jury with possessing approximately 32,000 bags (approximately two pounds) of heroin. The drugs were allegedly recovered after a search of Huntley’s car during a traffic stop on Interstate 81 in Lower Paxton Township on March 31, 2015. The grand jury also charged Huntley with conspiring with unknown individuals to distribute the heroin and with traveling interstate to facilitate heroin trafficking.
The matter was investigated by the Pennsylvania State Police and the US Drug Enforcement Administration’s Harrisburg Resident Office. Assistant United States Attorney William A. Behe has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 45 years of imprisonment, a term of supervised release following imprisonment, and a $2,250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Jersey Doctor Sentenced to One Year and One Day in Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with practices in Wall Township and Howell Township, New Jersey, was sentenced today to one year and one day in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Anthony DeLuca, 52, of Point Pleasant, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.
Including DeLuca, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has so far recovered more than $10.5 million to date through forfeiture.
According to documents filed in this and related cases and statements made in court:
DeLuca admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $1,500 per month, which he received from another person in his medical office engaged in the same activity.
In addition to the prison term, Judge Chesler sentenced DeLuca to serve one year of supervised release and ordered him to pay a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Patrick Egan Esq., Philadelphia, Pennsylvania
New York Man Pleads Guilty to Federal Fraud Charges in International Conspiracy CaseRead the Press Release
Gulfport, Miss – Olutoyin Ogunlade, 41, of Brooklyn, New York, a U.S. citizen and one of eighteen defendants indicted in a nine-count federal indictment filed in the Southern District of Mississippi, pled guilty today to conspiracy to commit offenses against the United States, U.S. Attorney Gregory K. Davis announced today.
Ogunlade admitted to being part of an international organization involved in multiple on-line fraud schemes that included the use of victim’s personal identification, banking and credit information. He will be sentenced on August 13, 2015 by U.S. District Judge Sul Ozerden and faces a maximum penalty of 5 years in prison, a $250,000 fine and three years of post-release supervision.
The indictment in this case alleges a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs.
The investigation was initiated in October, 2011, by Homeland Security Investigations agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship the merchandise to an address in Pretoria, South Africa. The investigation later revealed that the merchandise was purchased using stolen personal identity information and fraudulent credit card information of persons in the United States. Investigators have identified thousands of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
The indictment is the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto
Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The case in Mississippi is prosecuted by Assistant U.S. Attorneys Annette Williams and Scott Gilbert along with Robert Tully of the Organized Crime Gang Section of the Department of Justice.
Michigan Ferrari Mechanic Convicted of Tax FraudRead the Press Release
A Smiths Creek, Michigan, resident who specialized in repairing classic and rare cars was convicted today by a federal jury in the Eastern District of Michigan of one count of tax evasion and four counts of failure to file income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the evidence presented at trial, the Internal Revenue Service (IRS) assessed Terry Myr approximately $195,000 in taxes, interest and penalties for his failure to report all of his income for the years 2000 through 2003. Myr willfully evaded payment of this tax assessment. To prevent the IRS from collecting the taxes that he owed, Myr transferred property that he owned to a third party, used nominee companies to conceal his income and assets and otherwise dealt in cash. In addition, in 2009, Myr sold a rare Ferrari car engine for $610,000 and attempted to hide the proceeds. The evidence established that although Myr was required to file individual federal income tax returns, he had not filed a tax return or paid federal income taxes since 2001.
Myr faces a statutory maximum sentence of five years in prison and a $250,000 fine for the tax evasion count and a statutory maximum sentence of one year in prison and a $100,000 fine for each of the four failure to file counts. Myr’s sentencing is scheduled for Aug. 25, before U.S. District Court Judge Nancy Edmunds.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Tiwana Wright and Kenneth Vert of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Eastern District of Michigan for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Metairie Man Sentenced for Making False Statements on Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TIMOTHY DUCKWORTH, age 44, of Metairie, was sentenced today after previously pleading guilty to making false statements on income tax returns.
U.S. District Judge Ivan L.R. Lemelle sentenced DUCKWORTH to 5 years probation with the special condition of the first 18 months served as home confinement. DUCKWORTH was also ordered to pay $213,579 in restitution.
According to court documents, DUCKWORTH made false statements on his tax return for the year 2007 under-reporting his income in the amount of approximately $610,495.00, which resulted in DUCKWORTH having taxes due and owing in the amount of approximately $213,579.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Metairie Man Charged with Recording Movies in a Local Theater and Criminal Infringement of a CopyrightRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK HOLLOWAY, age 31, of Marrero, was charged in a two-count Bill of Information with unauthorized recording of a motion picture and criminal infringement of a copyright.
According to the Bill of Information, on September 13, 2014, HOLLOWAY used a digital camcorder to record the motion picture When the Game Stands Tall at the AMC Westbank Palace, located in Harvey. The Bill of Information also charges that until December 23, 2014, HOLLOWAY knowingly and willfully, for the purpose of commercial advantage and private financial gain, infringed the copyright of copyrighted works by distributing ten or more copies of the works during a 180-day period, which had a total retail value in excess of $2,500.
If convicted, HOLLOWAY faces a maximum term three years imprisonment as to Count 1 and five years as to Count 2, followed by up to three years of supervised release, and a $250,000 fine.
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 Immigration and Customs Enforcement, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Derrick Holloway Bill of Information
McKees Rocks Man Pleads Guilty to Child Pornography Possession ChargeRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Jarred Lynch, 29, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that on or about Feb. 21, 2014, Lynch knowingly possessed images in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge McVerry scheduled sentencing for Aug. 7, 2015, at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Lynch.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Marion Couple Charged with Child Sexual Exploitation OffensesRead the Press Release
Michael Darling, age 20, and Jennifer Darling, age 27, both of Marion, Iowa, have been indicted on charges of sexual exploitation of a child, enticement of a minor, and receipt of child pornography. The charges are contained in an Indictment filed on April 23, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that, between January 2015 and March 2015, Michael and Jennifer Darling persuaded, induced, and enticed a minor female to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, and that they persuaded, induced, and enticed the minor female to engage in sexual activity. The indictment also charges that they received child pornography. In addition, the indictment alleges that, in 2007, Michael Darling was adjudicated delinquent for the offense of sexual abuse in the second degree.
If convicted on all charges, Michael Darling faces a mandatory minimum sentence of 25 years’ imprisonment and a possible maximum sentence of life imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment. If convicted on all charges, Jennifer Darling faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $750,000 fine, a $300 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Michael and Jennifer Darling made their initial appearance in federal court in Cedar Rapids on April 24, 2015, and Jennifer Darling appeared for a detention hearing today. Michael Darling was held without bond, and Jennifer Darling was released on bond. Their next appearance for trial is set for June 22, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Jones County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-39.
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Man Sentenced to 7 1/2 Years for Identity Theft for Purposes of Filing False Tax ReturnsRead the Press Release
CHICAGO — A Chicago man was sentenced yesterday to 90 months in federal prison by U.S. District Court Judge Edmond E. Chang for his role in a scheme involving theft of hundreds of identities which were used to file approximately 395 false and fictitious tax returns claiming refunds in amounts totaling approximately $357,539.
The defendant, ROBERT BROWN, pleaded guilty in January 2015 to one count each of aggravated identity theft and wire fraud in a six-count indictment, admitting that beginning in January 2010 and continuing through March 2014, in cooperation with his co-defendant, he submitted fraudulent federal income tax returns using the misappropriated personal identifying information of approximately 332 taxpayers, causing the IRS to issue refunds. Several of the identities were stolen from residents of nursing homes and assisted living facilities. Judge Chang also ordered Brown to pay restitution in amount of $308,829, which is the amount that Brown caused the IRS to pay in fraudulently claimed tax refunds, and imposed a period of 3 years of supervision after his release. Brown is currently in federal custody.
Brown, 30, of Chicago, and co-defendant Lorenzo Brown, obtained personal identifying information from victim taxpayers, including names, social security numbers, and dates of birth, without the knowledge or consent of the victim taxpayers. Co-defendant Lorenzo Brown gave the misappropriated names, social security numbers, and dates of birth to defendant, who knew that Brown obtained the misappropriated identifying information from the residents of nursing homes and assisted living facilities, including the social security number and other personal identifying information. The defendant prepared fraudulent tax returns and electronically filed those fraudulent tax returns claiming fraudulent refunds based upon false income and false tax withholding information, using the identifying information provided to him by his co-defendant. The defendant caused the IRS to send fraudulently claimed tax refunds via prepaid debit card, United States Treasury check, or electronic funds transfers to bank accounts in the name of the co-defendant, who withdrew the funds from the bank accounts and provided portions of these funds to defendant.
“This defendant used the personal identifying information of many victims, including the vulnerable elderly and disabled victims who reside in nursing homes and assisted living facilities, for his own personal gain,” stated Assistant U.S. Attorney Kelly Greening in the Government’s Sentencing Memorandum, “He profited greatly off of the use of the victims’ information.”
Co-Defendant Brown is scheduled to be sentenced June 25, 2015, by U.S. District Court Judge Chang.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Stephen Boyd, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The government was represented by Assistant U.S. Attorney Kelly Greening.
Madison Man Sentenced to Federal Prison for Distributing Crack CocaineRead the Press Release
Herman Smith, Jr., 50, of Madison, Illinois, was sentenced today in the U.S. District Court for the Southern District of Illinois to 120 months in prison and eight years of supervised release on two counts of Distribution of a Controlled Substance. He was also ordered to pay a $400 fine, a $200 Special Assessment, and to forfeit his interest in a firearm found in his apartment, U.S. Currency found in his apartment, and a motorcycle.
Evidence showed that on July 15, 2014, a person working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives met up with Smith in Madison, Illinois, and purchased 56.7 grams of a substance containing cocaine base, commonly known as crack-cocaine. On August 5, 2014, this person again met up with Smith and made another purchase of 56.7 grams of a substance containing cocaine base, commonly known as crack-cocaine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Louisville Tax Preparer Sentenced for Filing False Federal Tax Returns and Diverting Client Funds Without Their KnowledgeRead the Press Release
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr., and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation announced today that Elizabeth A. Lawless, 66, of Louisville, Kentucky, was sentenced this week by Senior District Judge Thomas B. Russell to 6 months in prison, followed by 3 years of supervised release, and ordered to pay restitution in the amount of $329,465 to the IRS.
On November 7, 2014, Lawless pleaded guilty to all counts of a 24-count indictment filed on October 1, 2013, charging her with wire fraud, and aiding and assisting in the preparation of false federal income tax returns.
Beginning in or around February 2010 and continuing through April 2012, Lawless prepared fraudulent tax returns for clients through her business, Lawless BK and Tax, by creating false education credits and fabricating itemized deductions for medical expenses, charitable contributions, and unreimbursed employee business expenses. Lawless did not notify her clients that she was falsifying deductions and credits and did not review her clients' tax returns with them, other than informing them of the amount they were to receive as a refund. As such, her clients were unaware that their returns were fraudulent. From February 2010 to April 2012, the fraudulent returns filed by Lawless, on behalf of her clients, resulted in tax loss of approximately $231,303.
Further, Lawless diverted substantial portions of her clients' fraudulent tax refunds to her own bank account. After the fraudulent tax returns were filed, Lawless provided copies of tax returns to her clients, advising them they were the returns that were filed with the Internal Revenue Service ("IRS"). In many cases, the returns Lawless provided to clients differed from the returns that were actually filed with the IRS, in that the filed returns contained additional fraudulent credits and deductions, resulting in larger refunds. Without her clients’ knowledge or consent, Lawless filed Forms 8888 along with the fraudulent returns so that a portion of the refunds would be deposited in her bank account, while deposits for the amounts indicated on the copies of the tax returns (Lawless provided to the clients) were deposited into the clients' accounts. From February 2010 to April 2012, Lawless diverted approximately $127,553 from her clients' fraudulent tax refunds to her own bank account.
This case was prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Internal Revenue Service-Criminal Investigation.
Louisville Resident Sentenced to 48 Months in Prison for A Scheme to Obtain Fraudulent Federal Income Tax Refunds Using Stolen IdentitiesRead the Press Release
Ordered to pay $94,159 in restitution
LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation announced today that Erica Spencer, 37, of Louisville, Kentucky, was sentenced this week by Senior District Judge Thomas B. Russell to 48 months in prison, to be followed by 3 years of supervised release, and ordered to pay $94,159 in restitution.
On November 7, 2014, Spencer pled guilty to all counts of a 31-count second superseding indictment filed on October 22, 2014. She was charged with theft of public money, unauthorized use of access devices, wire fraud, and aggravated identity theft. The original indictment in this case was filed on December 18, 2013.
From June 2011 through June 2012, Spencer used the identities, including names, dates of birth, and social security numbers, of several individuals to file fraudulent federal income tax returns in their names and to receive fraudulent federal income tax refunds. Further, Spencer received the fraudulent federal tax refunds in bank accounts she controlled.
This case was prosecuted by Assistant United States Attorney Bryan R. Calhoun of the Western District of Kentucky and was investigated by the Internal Revenue Service-Criminal Investigation.
Lorain man indicted for child pornographyRead the Press Release
James J. Paterson, 49, of Lorain, was charged with receiving and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that from on or about September 10, 2010, through on or about November 17, 2014, in the Northern District of Ohio, Eastern Division, and elsewhere, Paterson knowingly received, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. The indictment also charges that on March 30, 2014, Paterson possessed two computers that contained child pornography.
If convcited, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Litchfield Resident Pleads Guilty to Multiple Fraud ConspiraciesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that RYAN GEDDES, 43, of Litchfield, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to multiple conspiracies involving a series of real estate transactions intended to shield assets from creditors.
According to court documents and statements made in court, GEDDES had accrued a series of debts as of late 2005, and was the subject of various lawsuits and collection efforts for the next several years. A bank fraud conspiracy commenced in November 2005 when GEDDES sold a lakefront home located at 27 Palmer Road in Morris to Thomas Provenzano. Lacking the funds to qualify for the $923,000 mortgage, Provenzano nonetheless obtained the loan based on an application that falsely listed his income as $20,000 per month, or $240,000 annually, and falsely listed his employment as the Operations Manager for one of GEDDES’s construction companies. Provenzano was not employed at all by GEDDES. The loan application also listed GEDDES’s company as having verified Provenzano’s employment. In November 2006, Provenzano refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior one, falsely listed Provenzano as employed by GEDDES’s construction company, and falsely listed his monthly income as $28,000, or $336,000 annually. The application again listed GEDDES’s company as having verified Provenzano’s employment. The loan is now in default, and the 27 Palmer Road property is in foreclosure.
The first of two mail and wire fraud conspiracies commenced in December 2009 and January 2010, in a series of discussions among GEDDES, Provenzano, and others about how to defraud a title insurance company. The discussions focused on conducting a real property transfer based on a deliberately defective title search, in which liens against the property are omitted, and title insurance is obtained based on the defective title search report. Later, a fraudulent claim is lodged against the title insurer. The conspirators decided to attempt the scheme on a property controlled by GEDDES, located at 66 Donahue Road Extension in Litchfield. After Provenzano assisted in a title search, GEDDES personally reviewed the report and crossed off several liens to be omitted from the title insurance application. In March 2010 GEDDES arranged a straw transfer of the property to another individual, while continuing to reside in and pay the mortgage and expenses on the property. Title insurance was issued on the property, with five liens, totaling about $990,000, deliberately omitted from the title search report.
The second of two mail and wire fraud conspiracies commenced in May 2009 when GEDDES arranged to transfer another property of his, located in Old Forge, N.Y., to Dustin Whitten. GEDDES continued to use the property and pay the mortgage and maintenance expenses. In March 2011, GEDDES and Whitten arranged to obtain a home insurance policy on the New York property in Whitten’s name. On July 4, 2011, after a bankruptcy court meeting about seeking to compensate GEDDES’s creditors, the New York property was destroyed in a fire. In September 2011, Whitten swore out an insurance claim on the property, representing himself as the owner and seeking compensation in the respective amounts of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire. The claim was eventually denied by the insurance company. In pleading guilty, GEDDES admitted that the purpose of the scheme was to shield the insurance proceeds from his creditors.
GEDDES pleaded guilty to one count of conspiracy to commit bank fraud and two counts of conspiracy to commit mail and wire fraud. Judge Arterton scheduled sentencing for July 21, 2015, at which time GEDDES faces maximum term of imprisonment of 70 years and a fine of up to $1.5 million.
Provenzano and Whitten previously pleaded guilty. On December 1, 2014, Provenzano was sentenced to 18 month of imprisonment. Whitten awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.
Leader and Top Enforcer of Criminal Gang Convicted of Racketeering and MurderRead the Press Release
Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Damion Hardy, also known as “World,” and Aaron Granton, also known as “E-Bay,” on charges of racketeering, including six murders, narcotics trafficking, kidnaping, and robbery as predicate racketeering acts, and related offenses. Granton was also convicted of his participation in a murder-for-hire. When sentenced by United States District Judge Frederic Block, each defendant faces a mandatory sentence of life imprisonment on the most serious charge.
The verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Raymond R. Parmer Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and William J. Bratton, Commissioner, New York City Police Department.
“Today’s verdict is the culmination of more than a decade of work by prosecutors, special agents, and detectives to dismantle the Cash Money Brothers gang and to hold Damion Hardy and Aaron Granton accountable for their heinous crimes. Hardy and Granton terrorized parts of Brooklyn in the 1990s and early 2000s, and they now face mandatory sentences of life imprisonment,” stated Acting United States Attorney Currie. “I would like to thank our partners at the FBI, HSI, and the New York City Police Department for their hard work and years of dedication to this important case.”
“The process of eradicating gangs and the violence they bring to our communities remains a top priority for the FBI. Today’s convictions are a significant step, but in no way do they mark the end of our commitment to protect the welfare of those who live in neighborhoods plagued by crime,” stated FBI Assistant Director-in-Charge Rodriguez.
“Drug traffickers destroy lives and ruin communities. Today’s guilty verdicts should leave no doubt about our shared commitment to attack and dismantle drug traffickers who pose a threat to our communities,” HSI New York Special Agent-in-Charge Parmer. “Working alongside our law enforcement partners, HSI will continue to use its unique authorities to ensure criminals are held accountable and brought to justice.”
“We applaud this guilty verdict which acknowledges the violent acts perpetrated by notorious gang members Damion Hardy and Aaron Granton. I want to thank our law enforcement partners for their dedication and tireless efforts which resulted in these criminals being brought to justice,” stated NYPD Commissioner Bratton.
From 1991 until August 2004, Hardy was the leader of a criminal enterprise known as the “Cash Money Brothers” (CMB), based in the Lafayette Gardens houses in Brooklyn, New York (Lafayette Gardens). Granton was a member of CMB and one of its top enforcers. From the time the crack-cocaine epidemic began in the late 1980s, Lafayette Gardens was a central and lucrative hub for the distribution of cocaine base. At that time, the young men who would later form CMB acted as low-level street dealers under the direction of the senior drug dealers who controlled Lafayette Gardens. In or around 1991, after CMB was formed under the leadership of the defendant Hardy and his brother, Myron Hardy, also known as “Wise,” the CMB ousted the senior dealers and seized control of the Lafayette Gardens crack trade for themselves.
The CMB wrested and maintained control of Lafayette Gardens through acts of violence that included near-daily gun battles with rival organizations and numerous murders. In 1998, Hardy ordered a junior gang member to shoot and kill Michael Colon because Hardy believed that Colon had disrespected and humiliated him at a roller skating rink. In 1999, while Hardy was incarcerated, his brother Myron Hardy was shot and killed in Lafayette Gardens. Hardy and other CMB members believed that a rival drug dealer named Ivery “Peanut” Davis and other members of Davis’s drug organization were responsible for the murder. Immediately after Myron Hardy was shot, while he still lay wounded in the hospital, Damion Hardy, from prison, began directing his gang members to exact revenge. Hardy ordered the CMB to murder Darryl Baum, James Hamilton, Tyrone Baum, and Ivery Davis, all four of whom were ultimately murdered by CMB members. Davis’s killing also resulted in the death of an innocent bystander, Johan Camitz. At Hardy’s direction, Granton acted as the triggerman in the murders of Darryl Baum, Hamilton, and Davis.
In addition, Granton also participated in the 2001 contract murder of Troy Singleton. Through his work with CMB, Granton had earned a reputation as an effective and ruthless killer. He was recruited by a separate gang, known as the “Supreme Team,” to kill Singleton, who was then shot multiple times in the back and head as he left a nightclub in Queens, New York.
The government’s case is being prosecuted jointly by the Office’s International Narcotics & Money Laundering Section and Organized Crime & Gangs Section. Assistant United States Attorneys Matthew Amatruda, Soumya Dayananda, and Rena T. Paul are handling the prosecution.
The Defendants:
DAMION HARDY
Age: 40
Brooklyn, NY
AARON GRANTON
Age: 40
Brooklyn, NY
E.D.N.Y. Docket No. 04-CR-0706
Justice Department, EPA and State of California Require Lehigh Cement to Cut Toxic Discharges to San Francisco BayRead the Press Release
Today, the Department of Justice, the Environmental Protection Agency (EPA) and the state of California announced a settlement requiring the Lehigh cement plant near Cupertino, California, to reduce toxic discharges of selenium and other metals to Permanente Creek, a tributary of San Francisco Bay. The company, owned by Hanson Permanente Cement Inc. and operated by Lehigh Southwest Cement Co., will spend more than $5 million to install wastewater treatment and make other facility improvements to prevent future violations. The company will also pay $2.55 million in civil penalties to settle the case.
The settlement addresses Lehigh’s and Hanson’s violations of the Clean Water Act. The Cupertino facility routinely discharged excessive selenium into Permanente Creek in violation of Lehigh’s permits from at least 2009 to 2014. The plant’s discharges also routinely exceeded standards for total suspended solids, total dissolved solids, turbidity, and pH and in some cases exceeded standards for mercury, hexavalent chromium, nickel and thallium.
“Today’s Clean Water Act settlement, done jointly with the state of California, will remove selenium and other toxic substances from Permanente Creek and help protect the fragile and life-sustaining ecosystem of San Francisco Bay,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “By bringing this older facility up to contemporary standards, and by pushing it to introduce cutting-edge treatment technology, the Department of Justice and our partners are helping create a level playing field, where all industry members are held to the same standards and no company can gain an economic advantage over its competitors by shortchanging environmental compliance.”
“EPA and California are working together to enforce the Clean Water Act and help restore San Francisco Bay,” said Regional Administrator Jared Blumenfeld for EPA for the Pacific Southwest. “Every action we take to remove selenium and other toxic metals improves water quality and leads to a healthier and more resilient Bay.”
“Lehigh Cement discharged millions of gallons of industrial wastewater that flowed into the San Francisco Bay,” said Attorney General Kamala D. Harris for California. “This settlement holds Lehigh Cement accountable for its actions and will prevent future toxic discharges. I thank our state and federal partners for their work to protect this precious resource and consumers from the serious environmental and health damage caused by water pollution.”
“This settlement will result in important reductions in pollutant discharges, in facility upgrades, and in improvements to help protect and restore water quality in Permanente Creek and San Francisco Bay,” said Executive Officer Bruce Wolfe for the San Francisco Bay Regional Water Board. “We will continue our multiagency efforts to regulate all water quality aspects of this facility, including installation of the full-scale wastewater treatment system, restoration of stream habitat and control of stormwater runoff.”
Since at least 2009 to 2014, the limestone mine and cement plant discharged millions of gallons daily of quarry process water and stormwater polluted with thousands of pounds of sediment and hundreds of pounds of selenium and other toxic metals, to Permanente Creek, in violation of the federal Clean Water Act. The settlement requires Lehigh to construct an advanced wastewater treatment system to significantly reduce its selenium and other metals discharges. Lehigh already installed an interim treatment system and a permanent system will be completed by 2017. Lehigh will make other facility improvements to remove sediment from its stormwater runoff, spending more than $5 million overall to come into compliance.
Selenium is a naturally occurring element in limestone and other rock formations. When discharged at high concentrations to waterways, selenium becomes toxic to fish and other aquatic life and to birds and other animals that consume selenium-contaminated aquatic organisms. Permanente Creek, to which the Lehigh cement facility discharges, is listed as “impaired” for selenium under the Clean Water Act. Permanente Creek provides important habitat for red-legged frogs, a species listed as threatened under the Endangered Species Act.
The proposed Clean Water Act settlement, subject to a 30-day public comment period and court approval, is available at: www.justice.gov/enrd/Consent_Decrees.html
For more information about the investigation and settlement, including photos, visit: http://www.epa.gov/region9/mediacenter/lehigh/
Learn more about EPA’s work to restore San Francisco Bay: www2.epa.gov/sfbay-delta/
More information about the San Francisco Bay Regional Water Board’s permits and enforcement actions is available at: www.waterboards.ca.gov/sanfranciscobay/water_issues/hot_topics/lehigh.shtml
Johnson County Man Sentenced to Federal Prison on Methamphetamine ChargesRead the Press Release
A Johnson County man was sentenced today to federal prison on methamphetamine charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Robert D. Brewer, 49, of Vienna, Illinois, was sentenced to 78 months in prison, to be followed by three years of supervised release, and fined $300. Brewer had previously pleaded guilty to six counts in a federal indictment. Counts 2, 3, 6, and 7 charged Brewer with possession of pseudoephedrine knowing it would be used to manufacture a controlled substance – methamphetamine on the following dates: April 29, 2013, April 20, 2013, April 10, 2013, and February 20, 2013. Counts 4 and 5 charged Brewer with attempted possession of pseudoephedrine knowing it would be used to manufacture a controlled substance – methamphetamine on the following dates: April 18, 2013, and April 16, 2013.
The investigation in this case was conducted by the Illinois State Police and the United States Fish and Wildlife Service.
The case is being handled by Assistant United States Attorney George Norwood.
Indiana Woman Charged with Involuntary ManslaughterRead the Press Release
Today, the filing of an Information charging Alicia Keir, 24, of Demotte, Indiana, with involuntary manslaughter for the death of her newborn child by failing to summon medical attention, announced U.S. Attorney David Capp for the Northern District of Indiana.
On October 10, 2011, Keir was aboard a cruise ship on the high seas, gave birth alone and failed to obtain any medical attention. The child died from exposure and lack of care. Jurisdiction for acts occurring upon the high seas can be in the district where a defendant resides. In conjunction with the information, Keir has filed a petition to enter a guilty plea to the involuntary manslaughter charge.
The U.S. Attorney’s Office emphasized that an information is merely an allegation and not proof of guilt. All persons charged are presumed innocent until and unless proven guilty in court.
This case was the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by the Assistant U.S. Attorneys Randall S. Stewart and Gary T. Bell.
Houston Man Accused of Stealing from UK-based CompanyRead the Press Release
HOUSTON - Federal charges have been filed against Avery Lamarr Ayers, 48, of Houston, alleging he committed wire fraud by deceiving a foreign company into sending him more than $350,000 to which he was entitled, United States Attorney Kenneth Magidson announced today.
The indictment was returned under seal yesterday and unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge Stephen Wm. Smith tomorrow at 10:00 a.m.
According to the allegations in the indictment, from approximately Nov. 21, 2014, through March 9, 2015, Ayers deceived a United Kingdom based company - Impact Oil and Gas - into sending him $357,000 for a purported contractual agreement. Ayers allegedly reported to be a representative of Minas & Hidrocarbonetos-GB SARL, the legitimate company that was owed the funds from Impact Oil and Gas. The indictment alleges Ayers deceived the company and caused them to wire the $357,000 to Ayers’ Comerica Bank account here in Houston.
If convicted, he faces up to 20 years in prison and a possible $250,000 maximum fine.
The investigation leading up to the arrest was conducted by Homeland Security Investigations - Asset Identification and Removal Group. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Hospital Authority of Irwin County Resolves False Claims Act Investigation for $520,000Read the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, and Samuel S. Olens, Attorney General for the State of Georgia, announced today they have reached a civil settlement with the Hospital Authority of Irwin County (ICH), Dr. Mahendra Amin, Dr. Ashfaq Saiyed, Dr. Romana Bairan, Dr. Arturo Ruanto, Dr. Concordio Ursal, Dr. Drew Howard, Dr. Steve Anderson, Dr. Robert Reese, and Dr. Marshall Tanner. The Defendants agreed to pay $520,000 to resolve allegations that they caused false claims to be submitted to Medicare and Medicaid.
The settlement marks the end of an investigation into alleged violations of the Federal Anti-Kickback Statute, the Federal Stark Law, and related Georgia Medicaid policies. Allegations of the suit concern the amount of compensation paid by ICH to Dr. Amin, ICH’s leases with the co-defendants, and the supervision of certain diagnostic imaging services at ICH. This investigation began with a lawsuit filed by Connie Brogdon and Summer Holland under the whistleblower provisions of the False Claims Act and the Georgia False Medicaid Claims Act, which allow private citizens to bring civil actions on behalf of the Government and share in any recovery obtained. Ms. Brogdon and Ms. Holland will receive a share of the settlement payment pursuant to the whistleblower provisions.
Defendants fully cooperated in the investigation after which the parties agreed to resolve the allegations made by the United States and the State of Georgia. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
“One important mission of this office’s Civil Division is to ensure that when taxpayer money is paid out under federal health care programs, it is paid out in a manner that complies with federal healthcare laws,” said U.S. Attorney Michael J. Moore. “Whistleblower lawsuits, like this case, are an increasingly important way in which our office is able to protect the integrity of the many federal programs that the citizens of Middle Georgia rely on each and every day.”
Attorney General Sam Olens stated, “My office takes seriously our obligation to ensure that providers comply with all applicable state laws, regulations, and policies when receiving state taxpayer funds for services they provide as part of the Medicaid program. This case reflects our continued commitment to investigating allegations of Medicaid fraud and abuse.”
The case was investigated by Special Agent Mark Creamer of the Department of Health & Human Services, Office of Inspector General; Investigator Enedelia Bostrup of the United States Attorney’s Office for the Middle District of Georgia; and Investigator Tonia Medlin, Nurse Investigator Judy Cooper, Investigative Auditor Anita Reddick, and Analyst Carmen Staley, all of the Georgia Medicaid Fraud Control Unit, a division of the Office of the Attorney General of Georgia.
The civil settlement was reached by Assistant United States Attorney Charles W. Byrd, Assistant United States Attorney Todd Swanson, and Assistant Attorney General Elizabeth White.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Heroin Dealer Sentenced to 156 Months in Federal PrisonRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jacob Alan Seiger, age 24, of Yakima, Washington, was sentenced today for distribution of heroin. United States District Court Judge Thomas O. Rice sentenced Seiger to a 156 month term of imprisonment, to be followed by a three year term of court supervision upon release from Federal prison.
According to information presented during the court proceedings, Seiger sold heroin to multiple individuals during 2013 and early 2014. In February 2014, an individual obtained heroin from Seiger and shortly thereafter died of a heroin overdose. In May, 2014, Seiger was charged by indictment with conspiracy to distribute heroin, three counts of distribution of heroin, and one count of distribution of heroin resulting in death, among other offenses. On November 12, 2014, Seiger pled guilty to distribution of heroin.
Michael C. Ormsby said, "The United States Attorney’s Office for the Eastern District of Washington is committed to protecting the community from the harm caused by heroin, one of the most dangerous and addictive Schedule I controlled substances. In recognition of the insidious effects that heroin and other opioids cause and the pressing need to address this growing problem, my office is co-sponsoring a multi-disciplinary Opioid Summit on May 5th in Ellensburg, Washington."
This case was investigated by the Drug Enforcement Administration with the assistance of the Yakima Police Department. The case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Garland Man Sentenced to 168 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Mark Stamps, of Garland, Texas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 168 months in federal prison on a child pornography conviction, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Stamps, 54, pleaded guilty in May 2014 to a felony information charging one count of transporting and shipping child pornography. He has been in custody since his arrest in April 2014.
The investigation began when a detective with the Sherman, Texas, Police Department, identified a computer that appeared to be sharing child pornography. In fact, the detective was able to obtain a list from the shared folder that contained at least 90 files of known or suspected child pornography.
Further investigation revealed that the computer belonged to Stamps, and based on this information, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Stamps’ residence on April 10, 2014. Special agents located child pornography videos on an external hard drive.
Stamps admitted that at the time of the search, he knowingly had more than 2500 child pornography images and videos on his computer and other media. Some of those images and videos depicted sadistic and/or violent content, and some of the files depicted infants and toddlers.
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.”
ICE HSI and the Sherman Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Four Men Indicted for Identity Theft, Counterfeit Check ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four men have been indicted by a federal grand jury for their roles in a conspiracy to steal identity information and use the stolen information to create and cash more than $70,000 in counterfeit checks.
Tyler Sutton, 53, Gary K. Keesler, 35, and Chad M. Mills, 26, all of Kansas City, Mo., and Christopher Hite, 32, of Windsor, Mo., were charged in a 10-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, April 28, 2015.
The federal indictment alleges that Sutton, Keesler, Mills and Hite participated in the conspiracy beginning in October 2013.
According to the indictment, Sutton unlawfully obtained identity and account information belonging to other persons and businesses. Sutton allegedly stole these items from a business and from the mail and allegedly paid addict co-conspirators in cash and/or drugs for checks, identification information, credit card numbers, and other information that could be used to create counterfeit checks and identifications. Sutton and co-conspirators used the stolen documents to create counterfeit identifications and checks, the indictment says, which they cashed at retail stores and financial institutions
Sutton was employed to be a property manager. He was a tenant at a residence in the 400 block of Gladstone Boulevard in Kansas City. According to the indictment, however, he only paid rent for one month and was evicted in October 2014. Sutton used the Gladstone Boulevard residence to conduct his illegal business, the indictment says, by operating it as a flop house where he offered cash and/or drugs to drug addicts who brought him stolen mail, identities, addresses, credit card numbers, and bank account information that could be used to create counterfeit identifications and checks. Sutton often allowed the addicts to stay at the Gladstone Boulevard residence.
Sutton did not usually create counterfeit identifications and checks himself, according to the indictment, nor did he personally present counterfeit identifications and checks for payment. Rather, he allegedly instructed others in the making and presenting of counterfeit identifications and checks, and shared the illegal proceeds with his co-conspirators. In this manner, the indictment says, Sutton attempted to insulate himself from liability.
In addition to the conspiracy, Sutton, Keeler and Hite are charged together in two counts of bank fraud and in two counts of aggravated identity theft. Sutton and Mills are charged together in one count of possessing counterfeit checks. Sutton is also charged with two additional counts of possessing counterfeit checks and two counts of possessing stolen mail.
The indictment also contains a forfeiture count, which would require the defendants to forfeit to the government any proceeds obtained through the alleged violations, including a money judgment of $70,100.
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 Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Four KC Residents Indicted for Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four Kansas City, Mo., residents have been indicted for their roles in an arson and insurance fraud conspiracy.
Tina L. Shonk, 34, Roy Thieman, 30, Joseph Levi Little, 40, and Tyler Sutton, 53, all of Kansas City, were charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, April 28, 2015.
The federal indictment alleges that Shonk led the arson and insurance fraud conspiracy in 2014. She allegedly obtained renter’s insurance on a house she rented, burned the house with the help of co-conspirators, and then made false claims on the insured property resulting in a total loss to insurance companies of $235,464.
According to the indictment, Shonk rented a residence in the 3500 block of Garfield in Kansas City, Mo., for about three years. In 2014, the indictment says, Shonk obtained renter’s insurance in the amount of $60,000, much more than the value of her personal property. At the time Shonk obtained renter’s insurance, she owed approximately $7,929 in back due rent, and had the gas shut off due to non-payment.
Shonk and her co-conspirators allegedly moved all of her personal property of any value to a storage unit. They allegedly moved damaged and broken electronic equipment and appliances into the residence so that it would appear that valuable appliances were destroyed. In April 2014, according to the indictment, Shonk owed $10,356 in back due rent and eviction proceedings had been initiated by her landlord.
Shonk, Thieman and Little allegedly set fire to the residence on April 4, 2014, by covering a space heater with a blanket and setting fire to the blanket. The Kansas City Fire Department extinguished the fire but the house was a total loss.
After the fire, Shonk made false claims to the insurance company as to the value of her property, that her property was in the house at the time of the fire, and also that she had no knowledge of, or involvement in, the fire. She received a $57,364 check from the insurance company, which was deposited into a bank account controlled by Sutton. Shonk allegedly paid $2,500 to Thieman and $4,000 to Little for their criminal assistance.
In May 2014, Shonk and Thieman moved into a house in the 3800 block of Pittman Road in Kansas City, Mo., a property managed by Sutton. Co-conspirators allegedly discussed repeating the arson insurance fraud scheme at the Pittman Road house. According to the indictment, Thieman wrote a letter to Shonk outlining plans to insure their personal property and then burn the house, stating in part, “there can be no evidence, nor signs of foul play, or accelerant.”
In addition to the conspiracy, Shonk, Thieman and Little are charged together in one count of arson. Shonk and Sutton are charged together in two counts of money laundering related to conducting financial transactions which involved the proceeds of unlawful activity. Shonk is also charged with one count of mail fraud.
The indictment also contains a forfeiture allegation, which would require all of the defendants to forfeit to the government any proceeds obtained as the result of the alleged violations, including $62,364.
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 Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.