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28 May 2015
Stockton Man Sentenced to over 17 Years in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
SACRAMENTO, Calif. — Cedric Sewell, 52, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to 17 years and seven months in prison for possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 5, 2014, law enforcement officers conducted a probation search of Sewell’s residence and found a .38‑caliber revolver that was fully loaded with live rounds. The kitchen had been converted to a heroin manufacturing operation, and agents found five kilograms of heroin and 500 grams of cocaine. Also in the kitchen were strainers, digital scales, cutting agents, hundreds of baggies, a money counter, and other items used in drug manufacturing and distribution. An AR-15 assault rifle, several other firearms, a cache of ammunition, and approximately $67,000 was also found.
This case was the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Alameda County Narcotics Taskforce, the San Bernardino Probation Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.
Staples, Inc. and Staples Contract and Commercial, Inc. Settle Allegations that it violated the Family Medical Leave Act for $275,000Read the Press Release
Contact Person: Beth Drake (803) 929-3000
COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, working alongside the United States Department of Labor, settled with Staples, Inc. and Staples Contract and Commercial, Inc. (collectively, “Staples”) for $275,000 amid allegations that it violated the Family Medical Leave Act of 1993, 29 U.SC. §§ 2601, et seq. (“FMLA”). The United States contended that Staples, which owns a nation-wide chain of office supply stores, failed to provide notice of employees’ rights under the FMLA, which prevented employee Jeffrey Angstadt from making educated decisions about requesting leave when his wife was diagnosed with cancer and initiated chemotherapy and radiation treatments. Specifically, the United States contended that:
- In September 2010, Mr. Angstadt provided notice to Staples of his need to take leave to care for his ailing wife, which qualified as leave under the FMLA.
- Although Mr. Angstadt was entitled to FMLA leave, and Staples was obligated to provide FMLA leave if requested, Staples did not provide Mr. Angstadt notice of his rights and responsibilities under the FMLA; and Mr. Angstadt was not aware of his rights. Mr. Angstadt’s supervisors were aware of his wife’s condition.
- Between September 2010 and January 2012, Mr. Angstadt took leave intermittently to care for his wife, and also worked remotely in an attempt to balance his job obligations with the need to care for his wife.
- As a result of Staples’ failure to provide notice to Mr. Angstadt’s of his rights under the FMLA, he was unlawfully placed on a Performance Improvement Plan and terminated. Mr. Angstadt was unemployed for a period of time after being terminated.
As part of the Government’s settlement with Staples, Mr. Angstadt will receive $275,000, which consists of front pay, back pay, lost benefits, and liquidated damages. Staples has agreed to promote compliance with the FMLA by providing training to it Human Resources and managerial personnel regarding FMLA notice and eligibility requirements, investigating and immediately remediating any complaint or potential violation of the FMLA, and posting FMLA enforcement posters at conspicuous places at Staples’ places of employment.
“The very purpose of the Family Medical Leave Act is to prevent the unfortunate fate of Mr. Angstadt, whose wife passed away last year,” said Mr. Nettles. “The protections afforded by the FMLA are absolutely critical when an employee is faced with the need to care for himself or a family member; and this office will go to great lengths to ensure its enforcement.”
If you suspect violation of the FMLA, please report it by phone at 1-866-4USWAGE (1-866-487-9243), TTY: 1-877-889-5627, Monday-Friday 8 a.m. to 5 p.m.
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Spencerport Teacher Indicted for Online EnticementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Charles Kane, 46, of Spencerport, NY, with attempted online enticement of a minor. The charge carries a mandatory minimum penalty of 10 years, a maximum of life, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant was arrested April 2, 2015 as he attempted to meet with a person he thought was a 14 year old girl. Kane, a middle school teacher in the Hilton School District, had in his possession a box of condoms and a tube of lubricant.
The investigation determined that in October 2014, the defendant posted an ad on Craigslist which read “daddy/daughter. Love younger women.” A federal law enforcement officer, working in an undercover capacity, posed as the father of a young daughter and conversed with Kane online for the next several months. During these conversations, Kane discussed traveling to meet the undercover and engaging in sexual activity with his ten year old daughter.
On January 26, 2015, another undercover officer noticed a different sexually explicit ad on Craigslist which was traced back, once again, to the defendant. The officer responded to the ad in the persona of a 14 year old girl. Kane responded that he was “down with it.” The defendant asked the girl where she lived and said he wanted to meet her. The two remained in contact through March of 2015. During online chats, Kane sent the undercover officer photos of himself, including one he took in the men’s room at the Middle School where he taught, and repeatedly asked for photos of the 14 year old girl. Also during the chats, the defendant repeatedly discussed engaging in sexually explicit activity with the child and traveling to and meeting with the child for sexual purposes. One message read “I could get a room and I could sneak you there.” Kane acknowledged that he could get in “big trouble” and told the girl “this is between you and me.”
Following repeated requests, the girl agreed to meet the defendant at a theatre in Webster on April 2, 2015. The defendant was observed entering a pharmacy just before meeting with the undercover, where they learned that Kane purchased a box of ribbed condoms. Kane was arrested as soon as he pulled up to the theatre parking lot. He has been in federal custody since his arrest, and was held following a detention hearing last month.
The indictment is the culmination of an investigation by the New York State Police, under the direction of Major Craig Hanesworth and the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sovereign Citizen from Utah Convicted in Fraud SchemeRead the Press Release
PHILADELPHIA – A federal jury, yesterday, handed up guilty verdicts against Robert G. Wray, 75, of Torrey, Utah, on charges that he conspired with a Lehigh County doctor of osteopathy to defraud the Department of Health and Human Service and the Internal Revenue Service. The fraud scheme, in which Wray participated, amounted to hundreds of thousands of dollars. Wray was found guilty of one count of conspiracy, 30 counts of wire fraud, one count of bankruptcy fraud, and one count of failure to appear.
Wray uses many different names for himself in an attempt to evade federal and other laws by arguing that he has not been properly identified in legal documents. Wray also claims to be a “sovereign” citizen who is not subject to federal laws, including laws regarding personal income taxation. Wray conspired with Dr. Dennis Erik Fluck Von Kiel, of Macungie, Pennsylvania, to help Dr. Von Kiel evade a six-figure debt he owed to HHS for unpaid medical school loans and avoid paying personal income taxes to the IRS. Dr. Von Kiel pleaded guilty and was sentenced, on April 20, 2015, to 41 months in prison. Von Kiel was also ordered to pay restitution to the IRS in the amount of $256,920, to the Department of Health and Human Services in the amount of $262,303.11 to the Department of Education in the amount of $36,314, forfeiture of $165,988.29, and a $1,325 special assessment.
Wray faces a possible advisory sentencing guideline range of 51 to 78 months in prison, three years of supervised release, restitution and a $3,300 special assessment. A sentencing hearing is scheduled for September 2, 2015.
The case was investigated by the IRS Criminal Investigations and the FBI. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Six Defendants Charged in Manhattan Federal Court in Multimillion-Dollar Text Messaging Consumer Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William P. Offord, the Special Agent-in-Charge of the Boston Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal complaint charging LIN MIAO, YONG JASON LEE, a/k/a “Jason Lee,” MICHAEL PEARSE, YONGCHAO LIU, a/k/a “Kevin Liu,” MICHAEL PAJACZKOWSKI, a/k/a “Paj,” and CHRISTOPHER GOFF with participating in a scheme to charge mobile phone customers tens of millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent – a practice the defendants referred to as “auto-subscribing.”
Manhattan U.S. Attorney Preet Bharara said: “As alleged, by burying relatively small hidden text message service charges in the monthly mobile phone bills of thousands of customers who did not purchase the text message service, these defendants reaped tens of millions of dollars. Stealing incrementally is stealing nonetheless, and if the allegations are proven, the defendants will have to answer for this massive consumer fraud.”
IRS Special Agent-in-Charge William Offord said: “The arrests today highlight the magnitude of this complex e-commerce fraud against unwitting consumers. Crimes like ‘auto-subscribing’ undermine the integrity of our economic system. Working closely with our law enforcement partners, IRS plays an important role in unraveling complex financial transactions where individuals attempt to conceal the true source of their criminal proceeds.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The six defendants charged today are alleged to have profited from the unlawful billing of consumers for unsolicited services. Hundreds of thousands of customers collectively lost tens of millions of dollars in this far-reaching scheme. Behavior of this nature has a devastating impact on people, companies, and the integrity of mobile phone industry. We are putting those persons who engage in this type of fraud on notice: Your actions can result in serious charges carrying severe penalties and consequences.”
According to the allegations contained in the criminal Complaint unsealed today in Manhattan federal court[1]:
From 2011 through 2013, MIAO, LEE, PEARSE, LIU, PAJACZKOWSKI, and GOFF engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, through a practice known as “auto-subscribing.”
During the relevant time period, MIAO and LEE worked for a company that offered premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – to mobile phone customers (the “Texting Company”). PEARSE and LIU worked for companies that were affiliated with the Texting Company (the “Texting Company Affiliates”). PAJACZKOWSKI and GOFF worked for a mobile aggregator (the “Mobile Aggregator”), which served as a middleman between the Texting Company and mobile phone carriers, and was responsible for assembling monthly charges incurred by a particular mobile phone customer for premium text messaging services and placing those charges on that customer’s cellular phone bill.
To carry out the scheme, MIAO and others at the Texting Company purchased large volumes of mobile phone numbers from PAJACZKOWSKI and GOFF, who had access to those numbers by virtue of their employment at the Mobile Aggregator. MIAO then worked with LEE, PEARSE, and LIU to have unsolicited text messages sent to the mobile phone numbers that had been purchased, and to enroll those customers in premium text messaging services without their knowledge or consent. MIAO, LEE, PEARSE, and LIU also took steps to conceal the fraud scheme by making it appear as if the customers had, in fact, elected to purchase the text messaging services, when in truth they had not.
The consumers who received the unsolicited text messages typically ignored or deleted the messages, often believing them to be spam. Regardless, the consumers were billed for the receipt of the messages, at a rate of $9.99 per month, through charges that typically appeared on the consumers’ cellular telephone bills in an abbreviated and confusing form, e.g., with billing descriptors such as “96633IQ16CALL8668611606” and “25184USBFIQMIG.” The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe. Even then, consumers’ attempts to dispute the charges and obtain refunds from the Texting Company or from the Texting Company Affiliates were often unsuccessful.
MIAO, PAJACZKOWSKI, and GOFF also worked together to launder the proceeds of the fraud scheme. PAJACZKOWSKI and GOFF created shell companies to receive payments from MIAO and the Texting Company for the mobile phone numbers that PAJACZKOWSKI and GOFF collected and sold. PAJACZKOWSKI and GOFF, moreover, communicated with MIAO about the fraud scheme using personal email accounts with email addresses such as “[email protected]” and “[email protected].” In this way, PAJACZKOWSKI and GOFF attempted to conceal their role in the fraud from their employer, the Mobile Aggregator.
Through their successful orchestration of this fraud scheme, which affected hundreds of thousands of consumers, MIAO, LEE, PEARSE, LIU, PAJACZKOWSKI, and GOFF generated in excess of $50 million in proceeds for themselves, some of which were used to fund a lavish lifestyle of expensive parties, travel, and gambling.
* * *
MIAO, LEE, PEARSE, LIU, PAJACZKOWSKI, and GOFF are charged with one count of conspiracy to commit wire fraud and mail fraud, which carries a maximum term of 20 years in prison. MIAO, PAJACZKOWSKI, and GOFF are also charged with one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
MIAO was arrested yesterday afternoon at Los Angeles International Airport. LEE, PAJACZKOWSKI, and GOFF were arrested this morning at their residences in California and Texas. PEARSE and LIU reside in Australia and have not yet been arrested. MIAO, LEE, and GOFF are expected to be presented later this afternoon in federal court in Los Angeles, California, before U.S. Magistrate Judge Carla M. Woehrle. PAJACZKOWSKI was presented this morning in federal court in Plano, Texas, before U.S. Magistrate Judge Don D. Bush.
Mr. Bharara praised the investigative work of the IRS-CI and the FBI, and expressed his sincere gratitude to the Federal Trade Commission for its support and assistance with the investigation. He also thanked the U.S. Attorney’s Office for the Central District of California and the U.S. Attorney’s Office for the Eastern District of Texas for their help in coordinating the arrests of the defendants.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit.Assistant U.S. Attorneys Christian R. Everdell and Sarah E. Paul are in charge of the prosecution.Assistant U.S. Attorney Edward B. Diskant of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Seller of “Miracle Mineral Solution” Convicted for Marketing Toxic Chemical as a Miracle CureRead the Press Release
A federal jury in the Eastern District of Washington returned a guilty verdict yesterday against a Spokane, Washington, man for selling industrial bleach as a miracle cure for numerous diseases and illnesses, including cancer, AIDS, malaria, hepatitis, lyme disease, asthma and the common cold, the Department of Justice announced.
Louis Daniel Smith, 45, was convicted following a seven-day trial of conspiracy, smuggling, selling misbranded drugs and defrauding the United States. Evidence at trial showed that Smith operated a business called “Project GreenLife” (PGL) from 2007 to 2011. PGL sold a product called “Miracle Mineral Supplement,” or MMS, over the Internet. MMS is a mixture of sodium chlorite and water. Sodium chlorite is an industrial chemical used as a pesticide and for hydraulic fracking and wastewater treatment. Sodium chlorite cannot be sold for human consumption and suppliers of the chemical include a warning sheet stating that it can cause potentially fatal side effects if swallowed.
“This verdict demonstrates that the Department of Justice will prosecute those who sell dangerous chemicals as miracle cures to sick people and their desperate loved ones,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Consumers have the right to expect that the medicines that they purchase are safe and effective.” Mizer thanked the jury for its service and its careful consideration of the evidence.
The government presented evidence that Smith instructed consumers to combine MMS with citric acid to create chlorine dioxide, add water and drink the resulting mixture to cure numerous illnesses. Chlorine dioxide is a potent agent used to bleach textiles, among other industrial applications. Chlorine dioxide is a severe respiratory and eye irritant that can cause nausea, diarrhea and dehydration. According to the instructions for use that Smith provided with his product, nausea, diarrhea and vomiting were all signs that the miracle cure was working. The instructions also stated that despite a risk of possible brain damage, the product might still be appropriate for pregnant women or infants who were seriously ill.
According to the evidence presented at trial, Smith created phony “water purification” and “wastewater treatment” businesses in order to obtain sodium chlorite and ship his MMS without being detected by the U.S. Food and Drug Administration (FDA) or U.S. Customs and Border Protection. The government also presented evidence that Smith hid evidence from FDA inspectors and destroyed evidence while law enforcement agents were executing search warrants on his residence and business.
Before trial, three of Smith’s alleged co-conspirators, Chris Olson, Tammy Olson and Karis DeLong, Smith’s wife, pleaded guilty to introducing misbranded drugs into interstate commerce. Chris Olson, along with alleged co-conspirators Matthew Darjanny and Joseph Lachnit, testified at trial that Smith was the leader of PGL.
In all, the jury convicted Smith of one count of conspiracy to commit multiple crimes, three counts of introducing misbranded drugs into interstate commerce with intent to defraud or mislead and one count of fraudulently smuggling merchandise into the United States. The jury found Smith not guilty on one out of four of the misbranded drug counts. He faces a statutory maximum of 34 years in prison at his Sept. 9 sentencing.
The case was investigated by agents of the FDA’s Office of Criminal Investigations and the U.S. Postal Inspection Service. The case was prosecuted by Christopher E. Parisi and Timothy T. Finley of the Civil Division’s Consumer Protection Branch in Washington, D.C.
Sacramento Woman Sentenced to over 24 Years in Prison for Sex Trafficking of MinorsRead the Press Release
SACRAMENTO, Calif. — Shanntaye Ebony Hicks, 25, of Sacramento, was sentenced today to 24 years and four months in prison for two counts of transportation of a minor with intent to engage in criminal sexual activity, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hicks recruited at least four teenaged victims (aged between 13 and 17 years old) to engage in criminal sexual activity. Hicks posted advertisements soliciting customers to have sex with the teenaged victims, received telephone calls from customers and negotiated prices. She transported the teenaged victims to the customers, and collected money the customers gave the victims. Hicks targeted vulnerable minor victims, some of whom were runaways, befriended them, and induced them to engage in sex acts with strangers by providing them with drugs and alcohol. Hicks also brandished a handgun and used threats of violence to enforce the loyalty of her victims and to prevent them from fleeing from her control. She transported one of her teenaged victims to several cities in California and Nevada with the intent that the minor engage in sex acts for money.
U.S. Attorney Wagner stated: “The sentence imposed today appropriately reflects the very real and lasting harm the defendant inflicted upon her young victims. My office, together with our partners at the Innocence Lost task force, will continue to aggressively investigate and prosecute those engaging in the abuse and sexual exploitation of minors.”
“Perpetrators of these crimes can be male or female. Regardless, those who exploit children and manipulate these victims solely for financial gain will be dealt with to the fullest extent of the law," said Supervisory Special Agent Maria Johnson of the Sacramento field office of the FBI. "We are grateful for the continued partnership that exists among our agencies who are part of the FBI's Child Exploitation Task Force. These investigators are fully committed to identifying and investigating individuals who prey upon our children to end their criminal operations."
This case was the product of an investigation by the FBI’s Child Exploitation Task Force, Innocence Lost National Initiative, which combines special agents of the FBI and detectives of the Sacramento Police Department. Assistance during the investigation was also provided by the Bakersfield Police Department and the Las Vegas Metropolitan Police Department. Assistant United States Attorney Andre M. Espinosa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Rensselaer Man Pled Guilty to Theft of Government PropertyRead the Press Release
ALBANY, NEW YORK – Lawrence Macera, 65, of Rensselaer, pled guilty on May 26, 2015 in U. S. District Court to Theft of Government Property, announced United States Attorney Richard S. Hartunian. Sentencing is set for September 23, 2015 in Albany before District Judge Mae D’Agostino
In entering his guilty plea, Macera admitted that between January 1, 2009 and December 31, 2010, he stole approximately $54,041 of railroad benefits from the Railroad Retirement Board by failing to report income as required by the Railroad Retirement Act of 1974. During this period he was receiving disability benefits to which he was not entitled because he was earning additional income and failed to report that income to the board. Macera faces a maximum sentence of 10 years imprisonment and up to a $250,000 fine.
This case was investigated by the Office of Inspector General, Officer of Investigations, U.S. Railroad Retirement Board and is being prosecuted by Assistant United States Attorney Emily T. Farber.
Ravenna doctor charged with illegally prescribing painkillersRead the Press Release
A federal grand jury returned a one-count indictment charging Gregory Ingram, 29, of Ravenna, Ohio, with dispensing controlled substances, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 alleges that from in or about September 2013 to in or about October 2014, Ingram, a physician, illegally dispensed Oxycodone, Hydrocodone, Percocet, and Diazepam.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Prisoner Who Escaped from Custody at Virginia Hospital Indicted on Bank Robbery and Burglary, Escape, Assault, Kidnapping, and Firearms ChargesRead the Press Release
Arlington man was in custody on bank robbery charges when he escaped
ALEXANDRIA, Va. – A federal grand jury returned a 16-count indictment today against Wossen Assaye, 43, of Arlington, Virginia, charging Assaye with bank robbery, bank burglary, escape, kidnapping, assault, and related firearms offenses.
According to the indictment, beginning in October 2013 until March 2015, Assaye robbed various banks in Northern Virginia on five occasions, twice brandishing a firearm. In a sixth instance, Assaye entered a bank with the intent to commit bank robbery and larceny.
Assaye was charged by complaint on March 25, 2015, for a bank robbery offense and was subsequently arrested and detained. While at a Virginia hospital for treatment, Assaye escaped federal custody. During the course of his escape, Assaye brandished a firearm to assault two federal officers assigned to guarding him and kidnapped one of the officers.
The indictment also charges Assaye with unlawfully possessing a firearm after being convicted of eight violent felonies.
Assaye faces a mandatory minimum of 122 years in prison and a maximum penalty of life in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police; Earl L. Cook, Alexandria City Chief of Police; Michael L. Chapman, Loudoun County Sheriff; and Mary Gavin, Falls Church Chief of Police, made the announcement after the indictment was returned.
This case was investigated by the FBI’s Washington Field Office, Fairfax County Police Department, Alexandria City Police Department, Loudoun County Sheriff’s Office, and the Falls Church City Police Department. Also, during the course of the investigation assistance was received from U.S. Marshals Service, Virginia State Police, Arlington County Police Department, and Metropolitan Police Department of the District of Columbia. Assistant U.S. Attorneys Michael E. Rich, William M. Sloan, and Special Assistant U.S. Attorney Cindy Chang are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-115.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Pain Clinic Owners, Distributors and Runners Indicted for Allegedly Conspiring to Operate “Pill Mills”Read the Press Release
Baltimore, Maryland - A federal grand jury has returned three indictments charging a total of 16 individuals with drug conspiracy and other charges for operating purported pain management clinics that the indictments allege were actually “pill mills.” The indictments were returned on May 20, 2015, and unsealed late yesterday upon the arrest of eight defendants. In addition to yesterday’s arrests, agents executed search warrants at 14 locations, including clinics, pharmacies and residences.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief Gary Gardner of the Howard County Police Department; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; Chief Mark A. Magaw of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; Chief Cathy L. Lanier of the Metropolitan Police Department; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.
“Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper medical supervision and without valid medical need,” said U.S. Attorney Rod J. Rosenstein. “Abuse of oxycodone is one of our most significant drug enforcement challenges, and it is a direct cause of the epidemic of heroin overdose deaths.”
“These indictments, search warrants, and subsequent arrests show that DEA is dedicated to dismantling “pill-mill” operations. When prescriptions are obtained through rogue pain management clinics and then sold on the streets, it creates and feeds a new generation of users and addicts,” stated DEA Special Agent in Charge Karl C. Colder. “These addicts will continue to abuse the illegal prescriptions, or switch to a cheaper and more potent drug; heroin. DEA and its partners will continue to work vigilantly to stop this dangerous trend,” stated SAC Colder.
“Prescription drug diversion schemes undermine public health and divert Medicare and Medicaid funds meant to pay for legitimate health care,” said Special Agent in Charge Nick DiGiulio, of the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s arrests show the commitment of the Office of Inspector General and our law enforcement partners to protecting both the public’s health and the integrity of federal health care programs.”
Each of the three indictments alleges that the owners operated the purported pain management clinics as “pill mills,” which routinely engaged in the practice of prescribing and dispensing controlled substances - primarily oxycodone - outside the scope of professional practice and without a legitimate medical purpose. The owners kept the profits from the pill mill operations and from the sales of oxycodone in cash. According to the indictments, the owners recruited “distributors” and “runners” to visit their clinics so that they would profit from the cash fees charged for an office visit. Runners are recruited - usually by a distributor - to enter pill mill clinics with fictitious complaints of pain in order to obtain prescriptions for oxycodone and other controlled substances. Typically, runners filled the prescription and gave the oxycodone tablets they received to the distributor. Runners were typically paid in either cash or oxycodone tablets for their services. The distributors then generally sold the pills for a profit.
The indictments allege that the owners of the pill mill clinics required runners to have certain “paperwork,” generally an MRI report and a prescription history, which would be kept in the patient’s file to support a false claim that there was a medical need for the prescription of oxycodone. The owners or other conspirators created false paperwork for runners who were unable to obtain MRI reports or prescription histories that would provide a basis for requesting a prescription for oxycodone. Conspirators took steps to circumvent the state prescription drug monitoring programs (PDMPs) in order to ensure that runners and distributors would not be prevented from obtaining multiple prescriptions from different doctors at the same time. For example, conspirators directed distributors and runners to fill prescriptions in Washington, DC, which did not have an active PDMP, or in states other than Maryland that had active PDMP systems (such as Delaware and Virginia) because individual state PDMPs were not connected so prescriptions filled in those states would not show up in the Maryland PDMP system. Members of the conspiracies also kept track of which pharmacies had supplies of oxycodone and were willing to fill prescriptions for runners.
U.S. v. Russell Et Al. Criminal No. 15-0288
This indictment charges the following 13 individuals with conspiracy to distribute and possess with intent to distribute oxycodone:
Donald Russell, age 51, of Waldorf, Maryland; Bruce Kevin Lewis, age 52, of Deale, Maryland; Danielle Silberstein, age 31, of Waldorf; Peter Snyder, age 34, of Ocean City, Maryland; Robert Long, age 34, of Mechanicsville, Maryland; Jamie Davis, age 28, of LaPlata, Maryland; Ronald Tennyson, age 32, of Mechanicsville; Terrell Downing, age 25, of New Carrollton, Maryland; John Fields, age 62, of Temple Hills, Maryland; Ronald Rust, age 44, of Alexandria, Virginia; Ronald Kans, age 41, of LaPlata; Walter Moffett, age 51, of Chestertown, Maryland; and
Melissa Catlett, age 38, of King George, Virginia.The indictment alleges that from February 2014 through May 2015, Russell and Lewis owned and operated PG Wellness Center, LLC (PG Wellness), and A Plus Pain Clinic, LLC (A Plus Pain), purported pain management clinics located in Oxon Hill, Maryland and Washington, D.C., respectively. According to the indictment, PG Wellness and A Plus Pain were actually pill mills. The indictment alleges that defendants Silberstein, Snyder, Long, Downing, Rust, Kans, and Moffett each acted as distributors who brought a number of runners to the clinics. Davis and Tennyson allegedly were runners and worked with Long to fund additional visits to pill mill clinics and distribute the pills obtained during those visits. According to the indictment Fields was a runner who dealt directly with Russell to obtain oxycodone pills and distribute them, and co-defendants Silberstein and Catlett regularly purchased bulk quantities of oxycodone pills from Russell.
The indictment also charges Russell, Fields, and Moffett with health care fraud for submitting or causing to be submitted health insurance claims seeking reimbursement for fraudulent prescriptions, in that the prescription was not for a legitimate medical need. Further, the indictment seeks the forfeiture of $1,200,000, several vehicles and bank accounts. This estimates that, during one month of operation, A Plus Pain and PG Wellness would see at least four hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 40,000 pills. The street value of each pill is estimated at $30 per pill, the equivalent of $1,200,000.
U.S. v. Mori and Dalton, Criminal No. 15-0287
This indictment charges Alex Mori, age 29, of Nanjemoy, Maryland, and Thomas Dalton, age 29, of Waldorf, with conspiracy to distribute and possess with intent to distribute oxycodone. The indictment alleges that from November 2013 through May 2015, Mori and Dalton operated First Priority Health Care, LLC, a purported pain management clinic located in Elkridge, Maryland. According to the indictment, First Priority was a pill mill. The indictment also seeks the forfeiture of $600,000 and property in Nanjemoy, Maryland. This estimates that, during one month of operation, First Priority would see at least two hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 20,000 pills. The street value of each pill is estimated at $30 per pill, the equivalent of $600,000.
U.S. v. Joyce Vercauteren, Criminal No. 15-284
This indictment charges Joyce Vercauteren, age 41, of Clinton, Maryland, with conspiracy to distribute and possess with intent to distribute oxycodone. According to the indictment, from May 2014 through May 2015, Vercauteren owned and operated MPC Wellness Center, LLC (“MPC Wellness”), a purported pain management clinic located in Greenbelt, Maryland. The indictment alleges that, in reality, MPC Wellness operated as a “pill mill.” Further, the indictment seeks the forfeiture of $1,200,000, and a vehicle. This estimates that, during one month of operation, MPC Wellness would see at least four hundred patients, each receiving at least 100 oxycodone 30 mg pills, a total of 40,000 pills. The street value of each pill is estimated at $30 per pill, the equivalent of $1,200,000.
The defendants in all three indictments face a maximum sentence of 20 years in prison and a $1 million fine for the drug conspiracy. Russell, Fields, and Moffett also face a maximum of 10 years in prison for health care fraud.
Russell, Lewis, Silberstein, Snyder, Mori and Vercauteren had initial appearances on May 27, 2015 in U.S. District Court in Baltimore and were detained, pending detention hearings scheduled today. Rust also had his initial appearance on May 27, 2015 and was released under the supervision of U.S. Pretrial Services. Moffett will have his initial appearance today. Kans and Fields are expected to turn themselves in and will also have an initial appearance later today. Dalton, Long, Davis, Tennyson, Downing and Catlett are still being sought.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The investigation is continuing and additional charges are expected.
United States Attorney Rod J. Rosenstein praised the DEA Tactical Diversion Squads from Baltimore and Washington DC., HHS-Office of Inspector General, Howard County Police Department, Charles County Sheriff’s Office, St. Mary’s County Sheriff’s Office, Prince George’s County Police Department, Calvert County Sheriff’s Office, Metropolitan Police Department, and Virginia State Police for their work in this pharmaceutical investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and Joshua Ferrentino, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Omaha Man Convicted of Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Quantal Blake, age 28, of Omaha, Nebraska, was convicted of three counts of bank robbery this afternoon following a jury trial this week, in front of the Honorable Laurie Smith Camp. Sentencing has been set for August 24, 2015. The defendant faces a maximum of life imprisonment and a $250,000 fine on each count.
On February 4, 2014, the Premier Bank located at 352 North 114th Street was robbed at approximately 11:15 a.m., when two men ran in, with partially covered faces, and demanded money. They took money from the bank and fled the area. A vehicle they had stolen the night before was used and was recovered, abandoned, a few blocks away. On March 20, 2014, at approximately 8:40 a.m., two men with masks drove up to the front door of the same bank. The passenger got out of a vehicle that had been stolen the day before, and attempted to enter the bank. The lobby was not yet open. They fled the area, striking another vehicle in the process and abandoned the vehicle a short distance away. Later that same day, at approximately 1:17 p.m., two males entered the First Westroads Bank located at 612 North 98th Street. The men had their faces obscured and one had his hand under a coat as if he had a weapon. They got money from the bank, fled the area, and abandoned the vehicle they used near 96th and Western.
Through the efforts of the Omaha Police Department and the Federal Bureau of Investigation it was determined Blake was on parole from a prior robbery conviction. As part of his parole he was required to wear an electronic monitoring device on his ankle. The device was tracked by time and location to the places where each robbery occurred, from the locations where both vehicles had been stolen and where all three vehicles had been abandoned after the robberies.
The case was investigated by the Federal Bureau of Investigation and Omaha Police Department.
New York Man Pleads Guilty and Is Sentenced for Mortgage Fraud Relating to Marshall Reed Apartments in CarbondaleRead the Press Release
Earlier today, Maximus A. Yaney, 38, of New York, New York, pled guilty to mortgage fraud and was sentenced, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. United States District Judge J. Phil Gilbert sentenced Yaney to 18 months in federal prison, to be followed by two years of supervised release, fined him $7,500, and ordered Yaney to pay full restitution of $7,748,019 to the Federal National Mortgage Association ("Fannie Mae") and Greystone Servicing Corporation, the lender harmed by Yaney’s crime. Yaney paid the full amount of restitution into the Court prior to today’s hearing.
"Mortgage fraud is a tremendous problem in our country," commented United States Attorney Wigginton. "This type of crime is a tremendous drain on our economy, and was a contributing factor to the financial crisis of the late 2000s. We hope today’s sentence sends a message to those who may be contemplating mortgage fraud: Not only will you be sent to prison, but you’ll be forced to pay back every dime of the losses caused by your crime."
In pleading guilty today, Yaney acknowledged that he owned and operated various companies which purchased rental properties in college towns, including Carbondale, Illinois. Yaney further admitted that in June of 2007, he used a company he had recently formed, known as H.G. Capital, LLC, to purchase the Marshall Reed Apartments in Carbondale for $2,710,000. Then, in November of 2007, Yaney caused H.G. Capital, LLC, to sell the Marshall Reed Apartments to another company that he owned, Titan, LLC, for $9,780,000. In obtaining both the short-term and long-term financing for this transaction, Yaney concealed from the lenders the fact that he had an ownership interest in both the selling and buying companies.
In order to persuade the lenders to finance the purported $9,780,000 sale, Yaney made several misrepresentations and engaged in numerous fraudulent acts. These misrepresentations and fraudulent acts included: (1) submitting fraudulent Rent Rolls for the Marshall Reed Apartments; (2) creating false leases to support the fraudulent Rent Rolls; (3) submitting a fraudulent Operating Statement for the Marshall Reed Apartments; (4) submitting false information regarding the percentage of apartments that were rented; (5) staging empty apartments with items to make them appear to be occupied; (6) paying employees of one of Yaney’s companies to sit in unoccupied apartments and pretend to be renters while appraisals and bank inspections were being performed; and (7) providing false information about the number of apartments that had been renovated.
On November 14, 2007, $6,123,342.81 in loan proceeds from the purported sale of the Marshall Reed Apartments were wire transferred to a bank account in the name of H.G. Capital. On the very next day, it is alleged that $6,123,300.06 of those funds were wire transferred to the account of Campus Habitat, one of other companies Yaney owned. Yaney then used those funds for operating expenses and to purchase other rental properties.
The investigation was conducted by agents from the Federal Bureau of Investigation ("FBI") and the Federal Housing Finance Agency – Office of the Inspector General ("FHFA – OIG"). The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
New Orleans Man Charged with Conspiracy to Commit Wire Fraud and Conspiracy to Commit Trademark Counterfeiting Using the “Silk Road” Online MarketplaceRead the Press Release
WASHINGTON – A Louisiana man was charged in a two-count information with conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting using the “Silk Road” online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Polite Jr. of the Eastern District of Louisiana.
“Anonymous online marketplaces have provided criminals with the ability to conduct illegal operations worldwide while seemingly insulating them from apprehension and prosecution,” said Assistant Attorney General Caldwell. “The Criminal Division is determined to peel back the veil of anonymity and prosecute criminals of all stripes who attempt to use the ‘dark web’ to cloak their illegal conduct.”
According to allegations in the information, Beau Wattigney, 30, of New Orleans, Louisiana, created counterfeit coupons and used Silk Road to sell them. Silk Road was a worldwide Internet forum used to anonymously sell illegal drugs, goods and services. Wattigney allegedly used Silk Road 1.0 until it was dismantled by federal officials in October 2013, and Silk Road 2.0 until it was dismantled in November 2014.
According to the information, Wattigney designed the coupons to look like print-at-home manufacturers’ coupons. The coupons included counterfeit trademarks for many prominent coupon distribution services, including Hopster, Coupons.com, SmartSource and RedPlum. Wattigney allegedly sold a selection of counterfeit coupons entitled “The Original S.R. Exclusive Coupon Collection” for approximately $50.00. Additionally, one counterfeit coupon Wattigney allegedly created and sold allowed users to purchase $50.00 Visa Gift Cards for $.01 each. The coupons Wattigney allegedly sold on Silk Road 1.0 and 2.0 affected more than 50 manufacturers, retailers and online coupon distributors. If redeemed, the counterfeit coupons could have resulted in a loss of more than $1,000,000 to the affected businesses.
The charges contained in the information are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Philadelphia Division, with assistance from the FBI’s New Orleans Division. The case is being prosecuted by Senior Counsel Marie-Flore Johnson, Gavin Corn and Robert Wallace of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Jordan Ginsberg of the Eastern District of Louisiana.
Beau Wattigney Bill of Information (137.46 KB)
New Orleans Man Charged with Conspiracy to Commit Wire Fraud and Conspiracy to Commit Trademark Counterfeiting Using the “Silk Road” Online MarketplaceRead the Press Release
A Louisiana man was charged in a two-count information with conspiracy to commit wire fraud and conspiracy to commit trademark counterfeiting using the “Silk Road” online marketplace, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Polite Jr. of the Eastern District of Louisiana.
“Anonymous online marketplaces have provided criminals with the ability to conduct illegal operations worldwide while seemingly insulating them from apprehension and prosecution,” said Assistant Attorney General Caldwell. “The Criminal Division is determined to peel back the veil of anonymity and prosecute criminals of all stripes who attempt to use the ‘dark web’ to cloak their illegal conduct.”
According to allegations in the information, Beau Wattigney, 30, of New Orleans, Louisiana, created counterfeit coupons and used Silk Road to sell them. Silk Road was a worldwide Internet forum used to anonymously sell illegal drugs, goods and services. Wattigney allegedly used Silk Road 1.0 until it was dismantled by federal officials in October 2013, and Silk Road 2.0 until it was dismantled in November 2014.
According to the information, Wattigney designed the coupons to look like print-at-home manufacturers’ coupons. The coupons included counterfeit trademarks for many prominent coupon distribution services, including Hopster, Coupons.com, SmartSource and RedPlum. Wattigney allegedly sold a selection of counterfeit coupons entitled “The Original S.R. Exclusive Coupon Collection” for approximately $50.00. Additionally, one counterfeit coupon Wattigney allegedly created and sold allowed users to purchase $50.00 Visa Gift Cards for $.01 each. The coupons Wattigney allegedly sold on Silk Road 1.0 and 2.0 affected more than 50 manufacturers, retailers and online coupon distributors. If redeemed, the counterfeit coupons could have resulted in a loss of more than $1,000,000 to the affected businesses.
The charges contained in the information are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Philadelphia Division, with assistance from the FBI’s New Orleans Division. The case is being prosecuted by Senior Counsel Marie-Flore Johnson, Gavin Corn and Robert Wallace of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Jordan Ginsberg of the Eastern District of Louisiana.
Wattigney Information
Nearly 78,000 Service Members to Begin Receiving $60 Million Under Department of Justice Settlement with Navient for Overcharging on Student LoansRead the Press Release
The Department of Justice announced today that this June, 77,795 service members will begin receiving $60 million in compensation for having been charged excess interest on their student loans by Navient Corp., the student loan servicer formerly part of Sallie Mae. The payments are required by a settlement that the department reached with Navient last year to resolve the federal government’s first ever lawsuit filed against owners and servicers of student loans for violating the rights of service members eligible for benefits and protections under the Servicemembers Civil Relief Act (SCRA). The United States’ complaint in that lawsuit alleged that three defendants (collectively Navient) engaged in a nationwide pattern or practice, dating as far back as 2005, of violating the SCRA by failing to provide members of the military the 6 percent interest rate cap to which they were entitled for loans that were incurred before the military service began. The three defendants are Navient Solutions Inc. (formerly known as Sallie Mae, Inc.), Navient DE Corporation (formerly known as SLM DE Corporation), and Sallie Mae Bank.
The settlement covers the entire portfolio of student loans serviced by, or on behalf of, Navient. This includes private student loans, Direct Department of Education Loans, and student loans that originated under the Federal Family Education Loan (FFEL) Program. Approximately 74 percent of the $60 million that is about to be distributed is attributable to private loans, 21 percent to loans guaranteed by the Department of Education and five percent to loans owned by the Department of Education.
The checks, which are scheduled to be mailed on June 12, 2015, will range from $10 to over $100,000, with an average of about $771. Check amounts will depend on how long the interest rate exceeded 6 percent and by how much, and on the types of military documentation the service member provided.
In addition to the $60 million in compensation, the settlement contains several other key provisions. It required Navient to pay the United States a civil penalty of $55,000. Navient must also request that all three major credit bureaus delete negative credit history entries caused by the interest rate overcharges and improper default judgments.
The settlement also required Navient to streamline the process by which service members may notify Navient of their eligibility for SCRA benefits. The revised process includes an SCRA online intake form for service members, and the availability of customer service representatives specially trained on the rights of those in military service.
“This compensation will provide much deserved financial relief to the nearly 78,000 men and women who were forced to pay more for their student loans than is required under the Servicemembers Civil Relief Act,” said Acting Associate Attorney General Stuart F. Delery. “The Department of Justice will continue using every tool at our disposal to protect the men and women who serve in the Armed Forces from unjust actions and illegal burdens.”
“We are pleased about how quickly we will be able to get this money back into the hands of the service members who were overcharged on their student loans while they were in military service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The department will continue to actively protect our service members and their families from such unjust actions.”
The department’s investigation of Navient was the result of a referral of service member complaints from the Consumer Financial Protection Bureau’s Office of Servicemember Affairs, headed by Holly Petraeus. The Department of Justice worked closely with the department of Education during the investigation to ensure that aggrieved service members with federally owned and federally guaranteed student loans would be fully compensated, and be able to receive the SCRA benefit of a reduced 6 percent interest rate through a streamlined process going forward. The Department of Education is now using a U.S. Department of Defense database to proactively identify borrowers who may be eligible for the lower interest rate under the SCRA, rather than requiring service members to apply for the benefit.
Beginning on June 12, service members with questions about their eligibility for monetary relief under the settlement should call (855) 382-6421. Other service members and their dependents who believe that their SCRA rights have been violated should contact an Armed Forces Legal Assistance office. To find the closest office, consult the military legal assistance office locator at http://legalassistance.law.af.mil and click on the Legal Services Locator. Additional information about the Justice Department’s enforcement of the SCRA and the other laws protecting service members is available at www.servicemembers.gov.
Nashville Man Indicted on Federal Charges After Shooting 62 Year Old in North NashvilleRead the Press Release
George Ivory aka GI, 24, of Nashville, Tenn., was indicted yesterday by a federal grand jury, for being a felon in possession of ammunition, as a result of shooting 62 year- old Cecil Grissette on May 1, 2015, announced David Rivera, United States Attorney for the Middle District of Tennessee. Although the firearm used was not recovered, shell casings found at the scene formed the basis for the charge.
According to the complaint filed against Ivory, Cecil Grissette was in the area of 16th Avenue North and Buchanon Street attempting to buy crack cocaine from another person when Ivory demanded that Grissette buy crack cocaine from him instead. When Grissette decided to buy the drugs from another dealer, Ivory shot Grissette in the head, torso, and leg. Grissette was then transported to Vanderbilt Hospital for medical care.
If convicted, Ivory faces up to 10 years in prison.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Naperville Man Pleads Guilty to Setting Fire to Chicago Air Route Traffic Control Center in AuroraRead the Press Release
CHICAGO — A Naperville man pled guilty today to federal charges he set fire to the Chicago Air Route Traffic Control Center in Aurora on September 26, 2014, federal law enforcement officials announced today. Brian Howard, 37, of Naperville, was charged by information earlier this month with one count of willfully setting fire to, damaging, destroying or disabling an air navigation facility; and one count of using fire to commit a federal felony. Howard will be sentenced on September 11, 2015 by U.S. District Court Judge Gary Feinerman and remains in federal custody since his arrest in September 2014.
According to court documents, Howard was employed by an FAA contractor at the Chicago Air Route Traffic Control Center (the “Control Center”) in Aurora, Illinois. Howard worked on telecommunications matters at the Control Center and at other FAA facilities for approximately eight years.
Howard pled guilty to intentionally damaging and disabling the telecommunication infrastructure at the Control Center, and setting fire to the area which housed these key components.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Carl Vasilko, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government is being represented by Assistant U.S. Attorney Andrew K. Polovin.
Individuals impacted by the September 26, 2014 fire who wish to receive notice about future court hearings, including sentencing, are encouraged to contact the U.S. Attorney’s Office’s Victim Hotline number at 866-364-2621 (press #3), or by email at [email protected].
The charge of willfully setting fire to, damaging, destroying or disabling an air navigation facility, or willfully interfering by force or violence with the operation of that facility, likely endangering the safety of aircraft in flight, carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross loss caused by defendant’s actions.
The charge of using fire to commit a federal felony carries a mandatory penalty of 10 years in prison, which must be in addition to any sentence imposed for the underlying felony.
If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Plea Agreement
Victim ResourcesMichigan Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that James S. Allen, 38, of New Baltimore, MI, pleaded guilty to production of child pornography and cyberstalking before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum 15 years in prison, a maximum of 30, and a fine of $250,000.
“This case demonstrates just how far a sexual predator is willing to go in order to harm children for his own gratification,” said U.S. Attorney Hochul. “It also serves as yet another reminder to parents, caregivers and children alike that the internet – while beneficial – can also be a dangerous environment in which the virtual world is used to commit real life damage to victims.”
Assistant U.S. Attorneys Aaron J. Mango and Scott S. Allen, who are handling the case, stated that between April and August of 2012, the defendant utilized the internet and text messages to stalk, communicate with, and threaten 18 female victims in the Western District of New York, many of them minors, in an effort to obtain pornographic pictures of the minors. Allen contacted the victims and told them that he found naked pictures of them on the internet. The defendant then directed the victims to a specific website to view the pictures. In reality, the website was a front or a phishing site by which the defendant sought to surreptitiously obtain the victim’s private e-mail address and password.
Once the targeted victim input the requested information, the victim=s personal e-mail addresses and passwords went straight to the defendant via the internet. Allen then seized control of the victim’s e-mail accounts, contacted the victims, and threatened that if they did not engage in a Skype video chat with him, he would distribute naked photos of the victims over the internet. Once a victim and the defendant logged onto Skype (the defendant utilized the screen name “shhh.shhh,” Allen further demanded that the victims take their clothes off and engage in sexual conduct, with the additional threat that naked pictures of them would be sent out to all of Western New York if the girl did not comply. As a result of the defendant's repeated and sustained harassment of the victims, many victims suffered substantial emotional distress.
The plea is the culmination of an investigation by on the part of Special Agents of the Federal Bureau of Investigation’s Child Exploitation Task force which includes the Buffalo Police Department, the Cheektowaga Police Department, and the Niagara County Sheriff’s Office, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer. Additional assistance was also provided by the FBI Forensic Laboratory in Quantico, Virginia, and the Western New York Regional Computer Forensic Laboratory.
Sentencing is scheduled for September 14, 2015 at 1:00 p.m. before Judge Arcara.Memphis Man Sentenced to 10 Years for Downloading Child Pornography at Best BuyRead the Press Release
Memphis, TN – A 51-year-old man has been sentenced to 10 years imprisonment for downloading child pornography at an East Memphis Best Buy.
Between September 3, 2012 and September 10, 2012, John Nesler went into the Best Buy at 5821 Poplar Ave. to download and view lewd images of female minors. He used two Asus 10-inch tablets and a Samsung Galaxy Note 10-inch tablet that were on display to acquire the images. He then took pictures of the pornographic images with his cellphone.
On September 10, 2012, a Best Buy sales associate witnessed Nesler downloading and viewing inappropriate pictures of female minors and alerted store managers. The managers subsequently contacted the Memphis Police Department and reported a suspicious person complaint. Nesler was still in the store when officers arrived to the establishment. After approaching Nesler and obtaining his identification, officers discovered he had a prior conviction in 2007 for downloading and viewing child pornography. He had been sentenced to five years imprisonment and 10 years supervised release for the offense. Nesler was on probation for the previous crime at the time.
Officers arrested Nesler and seized his cellphone as well as the Best Buy tablets he had utilized. A forensic review of Nesler’s phone revealed that he had taken approximately 114 images of female minors that were sexually suggestive between September 3, 2012 and September 10, 2012. A review of the Best Buy tablets revealed he had made Internet searches related to child pornography.
Tuesday afternoon, Nesler was sentenced to 10 years imprisonment by Judge S. Thomas Anderson for his unlawful acts. He was also ordered to be on supervised release for the remainder of his life.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Larry Laurenzi represented the government in the case.
Massachusetts Resident Charged with Mailing Drugs to InmateRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced today that criminal charges of attempted distribution of controlled substances have been filed against Sharon Magrath of Randolph, Massachusetts.
According to United States Attorney Peter Smith, Magrath, age 51, is charged by the Grand Jury in a two-count felony indictment with attempting to distribute narcotics to inmates at United States Penitentiary Allenwood by mailing envelopes to the inmates with heroin contained therein.
The investigation was conducted by the Federal Bureau of Investigation, and the Federal Bureau of Prisons Special Investigative Service. Assistant United States Attorney Wayne P. Samuelson is 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 guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, and a fine of $250,000 for each offense. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Manhattan U.S. Attorney Settles Civil Rights Claims Against Housing Cooperative for Failing to Reasonably Accommodate Residents with Disabilities Who Need Emotional Assistance AnimalsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Gustavo Velasquez, the U.S. Department of Housing and Urban Development Assistant Secretary for Fair Housing and Equal Opportunity, announced today that the United States has settled civil rights claims under the Fair Housing Act against EAST RIVER HOUSING CORPORATION (“EAST RIVER”) stemming from EAST RIVER’s alleged denial of reasonable accommodations to its residents by prohibiting them from keeping emotional assistance animals. The settlement agreement, which was approved on May 27, 2015, by U.S. District Judge Edgardo Ramos, provides that EAST RIVER will adopt and implement a policy for providing reasonable accommodations to residents with disabilities and will train its employees and officers to follow the new policy. In the settlement agreement, EAST RIVER also agrees to permit two of the three residents named in the suit to have emotional assistance animals in their apartments and to compensate them financially for the alleged discrimination against them.
U.S. Attorney Bharara said: “This settlement ensures that future East River residents with disabilities who are in need of assistance animals will not face the kind of discrimination alleged in the complaint. Emotional assistance animals are not pets, and they must be permitted when an individual with a disability demonstrates a need for such an animal, regardless of a building’s no-pets policy.”
Assistant Secretary Velasquez said: “Support animals provide persons with disabilities with the stability and assistance needed to maintain their independence. They are not pets. We are extremely pleased that the settlement makes this clear, and that East River residents with disabilities will now be granted the reasonable accommodations they need.”
According to the complaint filed in Manhattan federal court:
EAST RIVER is a private 1,672-unit housing cooperative on the Lower East Side of Manhattan. It has no written or established policies or procedures for making reasonable accommodations for individuals who require service or emotional support animals because of a disability. Complainants Amy Eisenberg, Steven Gilbert, and Stephanie Aaron, all EAST RIVER residents, each brought a dog into their apartments and sought to be permitted to keep those dogs as reasonable accommodations of their disabilities. EAST RIVER either denied the requests or failed to respond to them, and instead instituted eviction proceedings against each of the complainants in New York City Housing Court (“Housing Court”). The three residents then filed complaints with the U.S. Department of Housing and Urban Development and/or the New York State Division of Human Rights, which in each case found reasonable cause to believe that EAST RIVER had violated the Fair Housing Act by refusing to grant the requested accommodation, and in the case of Mr. Gilbert further found that EAST RIVER had retaliated against him for exercising his right to file a complaint. EAST RIVER elected to have the claims against it brought in federal court.
The Government’s complaint alleges that EAST RIVER violated the Fair Housing Act by refusing to make reasonable accommodations when such accommodations may be necessary to afford persons with disabilities equal opportunity to use and enjoy their dwellings, and by coercing, intimidating, threatening, and interfering with the exercise or enjoyment of a dwelling on account of a complainant’s having exercised his or her rights under the Act. The Government further alleged that EAST RIVER’s conduct constituted a pattern of resistance to the full enjoyment of rights granted by the Fair Housing Act, and a denial to a group of persons of the rights granted by the Fair Housing Act.
During the course of the litigation, EAST RIVER refused to discontinue its efforts to evict two of the three complainants, Mr. Gilbert and Ms. Aaron. Instead, it sought to enforce a Housing Court order requiring Mr. Gilbert to pay approximately $30,000 of EAST RIVER’s attorney’s fees in that proceeding on threat of eviction, and it sought to enforce a Housing Court eviction order against Ms. Aaron. After EAST RIVER insisted on moving forward with these actions, the Government sought, and obtained, temporary restraining orders and preliminary injunctions from the federal court enjoining EAST RIVER from taking steps to evict the complainants until the case could be decided at trial.
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As part of today’s settlement, EAST RIVER will enact a reasonable accommodation policy that explicitly acknowledges its responsibility to provide accommodations to persons with disabilities, including permitting residents with disabilities to keep emotional assistance animals or service animals in their apartments, and streamlines the process by which residents can apply for such accommodations. EAST RIVER will further train its officers and employees about the reasonable accommodation policy and the Fair Housing Act. EAST RIVER will also inform its current and future residents of this new policy.
In addition, to settle the Government’s claim on Mr. Gilbert’s behalf, EAST RIVER will permit Mr. Gilbert to keep a dog in his apartment, pay him $30,000, and forgive the attorney’s fees judgment of approximately $30,000 it obtained against him in the Housing Court. To settle the Government’s claim on Ms. Eisenberg’s behalf, EAST RIVER will permit Ms. Eisenberg to keep her dog in her apartment, pay her $55,000, forgive eight months’ basic maintenance payments, and withdraw its eviction case against her in Housing Court. The third complainant, Ms. Aaron, reached a separate settlement with EAST RIVER in the Housing Court, and on that basis the Government dismissed its claim on her behalf.
If you are a person with a disability who believes that you are being discriminated against by your housing provider, you may contact the Fair Housing and Equal Opportunity Office, U.S. Department of Housing and Urban Development, 26 Federal Plaza, Room 3532, New York, NY 10278-0068, and at (800) 496-4294.
This case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Jean-David Barnea and Elizabeth Tulis are in charge of the case.
Man Arrested After Traveling from Canada to New Hampshire to Purchase 100 FirearmsRead the Press Release
CONCORD, N.H. – Acting United States Attorney Donald Feith announced today that Nana Baffoe, 62, was arrested on Tuesday for making false statements in an attempt to buy firearms.
According to an affidavit supporting a criminal complaint filed in federal court, Baffoe entered the United States from Canada at a border crossing on May 18, 2015. A few days later, he met with a firearms dealer in Nashua, New Hampshire and sought to purchase 100 handguns. Under federal law, a firearms dealer can only sell handguns to a resident of the state where the dealer is located. According to the affidavit, Baffoe filled out paperwork that falsely stated that he was a resident of Manchester, New Hampshire. Baffoe also provided the dealer with a cashier’s check in the amount of $30,500 to purchase the guns. Information obtained by investigators showed that Baffoe did not live at the Manchester address that he provided and that he had been residing in Canada.
Baffoe appeared before United States Magistrate Judge Andrea K. Johnstone on Wednesday and was ordered detained temporarily pending a hearing that has been scheduled for 2:30 p.m. on June 1, 2015.
The charges contained in the criminal complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty. The crime with which Baffoe is charged carries a sentence of up to ten years in prison, a fine of $250,000, three years of supervised release, and a $100 special assessment.
The investigation is continuing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester Police Department, Nashua Police Department, and the New Hampshire State Police. It is being prosecuted by Assistant United States Attorney John J. Farley.
Los Zetas Kidnappers/Arms Traffickers Headed to Federal PrisonRead the Press Release
LAREDO, Texas – A total of five Laredoans have been ordered to prison for their roles in a kidnapping ordered by Los Zetas and executed by members and associates of the gang Hermanos Pistoleros Latinos (HPL), announced U.S. Attorney Kenneth Magidson.
Efrain Garza, 33, and Ernesto Zaragoza-Solis, 31, were convicted of conspiracy to kidnap, conspiracy to use and discharge and using and discharging a weapon during a crime of violence. Today, U.S. District Court Judge Diana Saldana ordered Garza to serve a total of 447 months in federal prison, while Zaragoza-Solis will serve a 360-month-term. Also sentenced today was Nicolas Sanchez Reyes, 52, who was convicted of conspiracy to export firearms and Grace Diaz Martinez, 35, who admitted to being an accessory after the fact to attempt to kidnap. Reyes will serve 120 months in prison, while Martinez will serve a 48-month-term of imprisonment.
Pablo Cerda, 38, who was convicted of conspiracy to kidnap, conspiracy to use and discharge a weapon and conspiracy to export firearms, was sentenced Tuesday, May 26, 2015, to a total of 192 months in federal prison.
OCDETF Operation El Chacal was an investigation spearheaded by the Drug Enforcement Administration (DEA) which culminated in several indictments being returned in November 2011 in Laredo. In March 2012, a Laredo grand jury returned an indictment on charges relating to gun violations and kidnaping. The kidnaping was ordered by Los Zetas in retribution for a money load alleged to have been stolen by a subject who was supposed to deliver the drug proceeds to Los Zetas in Nuevo Laredo, Mexico.
On Sept. 14, 2010, approximately $2 million was delivered from Chicago to a warehouse in Laredo. The money was then stolen by someone who had picked it up from the warehouse and was supposed to transport it to Nuevo Laredo, Mexico. Co-conspirators located the subject who stole the money as well as three of the subject’s family members. They had planned to pick them all up and kill them if the money was not returned.
On Sept. 19, 2010, at approximately 11:37 p.m., the Laredo Police Department received a 911 call indicating that a person had been kidnapped at gunpoint in the 1300 block of Eistetter Street in Laredo. A 14-year-old girl reported that her mother had been taken by force by several unknown subjects who had also fired shots during the kidnapping. She also stated that they tried to take her as well, but were unable to do so.
Through the investigation, law enforcement learned the victim had been taken to Garza’s residence. Garza and Martinez had arrived there in the early morning hours of Sept. 20, 2015, with the victim who was blindfolded and had her hands bound with duct tape. Zaragoza-Solis later showed up at the residence with weapons. The victim was kept in a back bedroom continually with her hands and eyes bound.
When law enforcement arrived, Martinez and Garza were trying to remove the blindfold and duct tape from the victim to avoid detection by the law enforcement agents at the door. Garza threatened the witness that she should say nothing to the police. When the police approached the residence, an unidentified individual opened the door and the kidnap victim immediately ran out of the house.
Arrested at the scene were Zaragoza-Soliz, Garza and Diaz-Martinez. Also found at the residence were three weapons to include a Smith and Wesson .38 caliber revolver, a 7.62 caliber pistol and a Norinco 7.62 caliber rifle, Model Mak-90. Also recovered from the scene was the duct tape used to blindfold and bound the victim.
The case was investigated by DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Laredo Police Department and Webb County District Attorney’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Los Angeles Businessman Pleads Guilty to Operating an Unlicensed Business That Transferred over $17 Million Between U.S. and IranRead the Press Release
LOS ANGELES – The owner of a Los Angeles-based international food distribution company pleaded guilty this afternoon to a federal charge of operating an unlicensed money transmittal business through which more than $17 million was transferred between Iran and the United States.
Ali Amin, a 57-year-old resident of the Bel-Air district of Los Angeles, also pleaded guilty today to tax fraud and failing to disclose to the Internal Revenue Service bank accounts in Switzerland.
Amin owns Primex International Trading Company, Inc. (Pitco), a producer and distributor of dried fruit and nut products to domestic and international markets that is based near Los Angeles International Airport. Since 2007, Amin has also owned a 50 percent interest in Amin Padidar Limited, a processor and distributor of pistachios that is based in Tehran, Iran.
According to court documents, from 2007 through 2011, Amin used bank accounts of Amin Padidar in Tehran, an account in Switzerland, an Amin Padidar affiliate, and Pitco in the United States, to transfer money from persons in Iran to persons in the United States designated to receive the money. To effect the transfers, people in Iran, typically Amin’s friends and family members, first deposited Iranian rials with Amin Padidar in Iran. Upon confirmation of the receipt of those funds, Amin directed Pitco to transfer an equivalent amount of money from domestic Pitco accounts to the United States-based bank account of people designated to receive the funds. Amin would also use a bank account in Switzerland to transfer funds from Iran to the United States for family members of Amin.
When he pleaded guilty today, Amin also admitted that he failed to disclose to the IRS an account at HypoSwiss Private Bank in Switzerland that he controlled. Amin also pleaded guilty to subscribing to a false tax return, admitting that he failed to disclose approximately $3.4 million in income to the IRS from 2007 to 2011.
Amin pleaded guilty before United States District Judge Dean D. Pregerson, who is scheduled to sentence the defendant on January 25, 2016.
As a result of his pleading guilty to the three felony charges, Amin faces a maximum statutory sentence of 18 years in federal prison.
The investigation into Amin was conducted by the Federal Bureau of Investigation and IRS - Criminal Investigation.
Release No. 15-053
Lawyer Indicted for Tax Evasion on Income Received over the Course of Two Decades, Including Income Derived from Illinois Tobacco LitigationRead the Press Release
CHICAGO ― A Chicago lawyer was indicted on federal charges alleging that he evaded the payment of income tax on income he received over the course of two decades, including income he received in connection with the State of Illinois’s lawsuit against various tobacco companies.
Daniel P. Soso, 63, of Alsip, was charged with one count of income tax evasion. The indictment alleges that in 1996, the Illinois Attorney General entered into a written contract with several law firms who represented the State of Illinois in its lawsuit against certain tobacco companies to recover, among other things, money damages incurred by the State of Illinois as a result of the sale of tobacco products to residents of the State of Illinois. In addition, the contract provided that the law firms representing the State of Illinois, including Law Firm B, would share a “contingent fee” equal to ten percent of the total monetary recovery realized by the State of Illinois in its planned lawsuit. The indictment further alleges that Soso, Individual A (an individual formerly licensed to practice in Illinois) and Individual B (a partner of Law Firm B) entered into agreements to pay Soso and Individual A a portion of the attorney fees awarded in the tobacco lawsuit and concealed these agreements from the State of Illinois, the Illinois Attorney General and others.
The indictment further alleges that between 1993 and 2013, Soso failed to pay approximately $779,615.86 in taxes, which amount included taxes due from the income Soso received from the tobacco lawsuit. Further, the indictment alleges that Soso took a variety of acts to evade the payment of these taxes, to include the use of nominee bank accounts; making false statements to the IRS concerning his sources of income; and causing the circumvention of levies issued by the IRS to third parties to recoup taxes due from Soso.
The defendant will be arraigned at a later date in U.S. District Court. The charge carries a maximum sentence of five years in prison and a $100,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced the indictment with Stephen Boyd, Special Agent in Charge of the Internal Revenue Service Criminal Investigative Division Chicago and Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation Chicago. The government is being represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Michael T. Donovan and Andrew K. Polovin.
The public is reminded that an indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Kentwood Woman Pleads Guilty to Making False Entries by a Postal EmployeeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WANDA JAMES, age 46, of Kentwood, pled guilty today to a one-count Bill of Information charging her with making false entries and reports of money belonging to the United States, and in the care, custody and control of the United States Postal Service.
According to court documents, from on or about September 10, 2013 through and including on or about February 3, 2014, JAMES, being a Postal Service officer or employee charged with the duty of receiving, holding, or paying over moneys on behalf of the United States, knowingly and willfully made false reports of such moneys. On sixteen separate occasions, JAMES falsely recorded cash purchases of money orders as debit card purchases on her daily financial reports. She did this so she could steal the cash from the money order purchases and conceal the theft by reporting sales as debit card transactions, when, in fact, she well knew that no such purchases had been made. JAMES stole approximately $2,611.00 of United States funds in the custody of the Postal Service.
JAMES faces a maximum term of imprisonment of 10 years, to be followed by 3 years of supervised release, a $250,000 fine, and restitution to the United States. U.S. District Judge Jane Triche Milazzo set sentencing for September 3, 2015.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office Of Inspector General, in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Wanda James Factual Basis (114.21 KB).
Kansas City, Kan., Tax Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., tax preparer has pleaded guilty to preparing false tax returns, U.S. Attorney Barry Grissom.
Ahferom Goitom, 35, Kansas City, Kan., pleaded guilty Wednesday to one count of preparing false tax returns. In his plea, he admitted that the crime occurred while he was working as a tax return preparer for Instant Tax Services in Kansas City, Kan. He prepared tax returns for clients that included false deductions and credits – often unbeknownst to his clients. He fabricated business expenses, inflated charitable deductions and exaggerated child care expenses. In addition, he told an IRS agent working undercover that the agent should find someone to claim as a dependent in order to inflate his refund.
Sentencing will be scheduled at a later date. The parties are recommending probation of 36 months and restitution of $101,157. The Internal Revenue Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
Justice Department and State of Idaho Reach Settlement over Accessibility of StatehouseRead the Press Release
U.S. Attorney Wendy J. Olson and Idaho Attorney General Lawrence Wasden announced today that the U.S. Attorney’s Office, the State of Idaho’s Capitol Commission and the State of Idaho’s Attorney General’s Office have reached a settlement to resolve allegations that the Statehouse, as remodeled, does not comply with the Americans with Disabilities Act.
This matter arose out of a complaint concerning the accessibility of the Idaho State Capitol’s facilities, services, programs, and activities under Title II of the ADA. Pursuant to Title II, no qualified individual with a disability shall be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such public entity on the basis of disability. In this case, the original complaint alleged that, among other non-compliant features, there were no accessible spaces for individuals in wheelchairs to view legislative sessions despite the more than 100 spectator seats in each house. The State of Idaho Attorney General’s Office, and the State of Idaho’s Capitol Commission worked cooperatively with the U.S. Attorney’s Office to resolve the accessibility complaints and to bring the Statehouse into compliance with Title II.
Under the terms of the agreement, the State of Idaho will ensure that no qualified individual with a disability will be excluded from participation in, or be denied the benefits of the Capitol’s services, programs, or activities. The state will, among other things, modify the east and west entrances to the Statehouse so that they are accessible to individuals with disabilities, add accessible seating in the legislative viewing areas, bring accessible ramps and paths of travel into compliance with the ADA, and improve signs and modify door handles to comply with accessibility requirements. The project will be spread out over three years at a cost of approximately $400,000.
“We are pleased that we were able to work cooperatively with the state to resolve this matter without the need for contested litigation and with the common goal of improving accessibility,” said Olson. “I want to thank our partners in the State of Idaho Attorney General’s Office and in the disability advocacy community for working with us to reach this successful resolution and to make Idaho’s most important public facility, its Statehouse, more accessible. I also want to thank Department of Justice architect Thomas Fodor for his tireless hours on this project. This settlement reflects a national effort by the U.S. Department of Justice to provide improved access to public facilities and programs.”
“This is an important improvement for all Idahoans and I appreciate the cooperation and commitment the United States Attorney has shown in solving the access issues at the Statehouse,” Idaho Attorney General Lawrence Wasden said. “Now, the state can make certain Idaho’s Capitol, as the people's house, is open and accessible to anyone interested in taking part in state government, witnessing the democratic process or touring this historic building.”
Additional information about the ADA can be found on Idaho United States Attorney’s website at http://www.justice.gov/usao-id/civil-rights-enforcement and the Justice Department website: www.ada.com.
Justice Department and Consumer Financial Protection Bureau Reach Settlement with Provident Funding Associates to Resolve Allegations of Mortgage Lending DiscriminationRead the Press Release
Settlement Provides $9 Million in Compensation to African-American and Hispanic Borrowers
The Justice Department and Consumer Financial Protection Bureau (Bureau) filed a consent order today to resolve allegations that Provident Funding Associates (Provident) engaged in a pattern or practice of discrimination that increased loan prices for African-American and Hispanic borrowers who obtained residential mortgages between 2006 and 2011 from Provident’s nationwide network of mortgage brokers.
The settlement, which is subject to court approval, was filed in conjunction with the agencies’ complaint in the U.S. District Court for the Northern District of California. The complaint alleges that Provident violated the Fair Housing Act and Equal Credit Opportunity Act (ECOA) by charging thousands of African-American and Hispanic borrowers higher fees on mortgage loans not based on borrower risk, but because of their race or national origin. Provident cooperated fully with the agencies’ investigation into its lending practices and agreed to settle this matter without contested litigation.
“The Civil Rights Division is committed to ensuring that all types of lending institutions, including wholesale mortgage lenders, comply with the fair lending laws,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We look forward to further collaboration with the Consumer Financial Protection Bureau in protecting consumers from illegal and discriminatory lending practices.”
“The settlement demonstrates this U.S. Attorney’s office will devote the resources necessary to root out and address unfair lending practices that affect citizens of this district,” said U.S. Attorney Melinda Haag of the Northern District of California. “The law is clear: access to mortgage loans may not be made more difficult because of an applicant’s race or national origin. We are glad that Provident has agreed to put an end to this practice without engaging in protracted litigation.”
“Consumers should never be charged higher fees because of their race or national origin,” said Consumer Financial Protection Bureau Director Richard Cordray. “We will continue to root out illegal and discriminatory lending practices in the marketplace. I look forward to working closely with our partners at the Department of Justice to ensure consumers are treated fairly.”
The lawsuit originated from a 2011 referral by the Federal Trade Commission (FTC) to the Justice Department’s Civil Rights Division. In 2012, the Bureau joined the Justice Department’s investigation.
Under the terms of the proposed settlement, Provident will pay $9 million into a fund for the benefit of victims of its alleged mortgage lending discrimination. The proposed settlement provides for an independent administrator to contact and disburse payments to borrowers whom the agencies identify as victims of Provident’s discrimination, at no cost to the borrowers. Provident will pay all costs and expenses of the administrator. Borrowers who are eligible for compensation will be contacted by the administrator. The department will make a public announcement and post contact information on its website once the administrator begins contacting victims.
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 39 lending matters under the Fair Housing Act, ECOA, and the Servicemembers Civil Relief Act. The settlements in these matters provide over $1.2 billion in monetary relief for impacted communities and individual borrowers. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
The Civil Rights Division, the U.S. Attorney’s Office for the Northern District of California, the Consumer Financial Protection Bureau, and the FTC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at http://www.justice.gov/fairhousing.
Justice Department Reaches Landmark Settlement with Alabama to Protect Prisoners at Julia Tutwiler Prison for Women from Harm Due to Staff Sexual Abuse and Sexual HarassmentRead the Press Release
The Department of Justice today filed a complaint and settlement agreement in the district court of the Middle District of Alabama to protect prisoners at the Julia Tutwiler Prison for Women in Wetumpka, Alabama, from sexual victimization by correctional officers. The agreement filed is designed to resolve the Justice Department’s findings of sexual abuse and sexual harassment at Tutwiler.
In January 2014, the Justice Department issued a findings letter concluding that Tutwiler subjects its women prisoners to a pattern and practice of sexual abuse in violation the Eighth Amendment of the U.S. Constitution. The findings identified several systemic failures that led to the pattern of abuse, including ineffective reporting and investigations and no grievance policy. Tutwiler also failed to hold culpable staff accountable for abuses.
“Prisoners are entitled to be safe from sexual predation by staff, and to live in an environment free from sexual assault, sexual harassment and the constant fear of these abuses,” said the head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Our agreement uses gender-responsive and trauma-informed principles designed to address and eliminate the culture of abuse that Tutwiler’s women prisoners have suffered from and endured for years.”
Alabama has already begun to put in place important reforms to address the department’s findings including the Governor’s creation of an agency-level position of Deputy Commissioner of Women’s Services. Wendy Williams, Ed.D., has been appointed to the position, and is charged with implementing gender-responsive practices at Tutwiler and with leading long overdue culture change. The department looks forward to continuing to work with the Warden, the Commissioner and the dedicated Tutwiler staff who will be part of the solution going forward.
Alabama’s willingness to engage in this cooperative resolution also eliminates the expense of a protracted lawsuit and offers women immediate protections. “We very much appreciate the state’s cooperation and willingness to work to bring about meaningful and sustainable change on these important issues,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
The agreement comprehensively addresses the causes of the abuses uncovered by the department’s investigation. It draws upon gender-responsive, trauma-informed principles to build on the Prison Rape Elimination Act National Standards, which are designed to prevent, detect and respond to custodial sexual abuse and sexual harassment throughout our nation’s prisons and jails. The agreement tailors the more generalized national standards to target the specific problems revealed at Tutwiler and to meaningfully address the harm to Tutwiler’s women prisoners.
The agreement requires Tutwiler to protect women from sexual abuse and sexual harassment by ensuring sufficient staff to safely operate Tutwiler and supervise prisoners, supplemented by a state-of-the-art camera system. The agreement also provides safeguards to prevent staff from unnecessarily viewing prisoners who are naked or performing bodily functions.
Tutwiler must ensure that each prisoner knows of her right to be free from sexual abuse and harassment, and that each prisoner is aware of the several internal and external methods to report abuse, including a new grievance process. Tutwiler will protect prisoners from the threat of retaliation by monitoring the housing, programming and disciplinary status of any prisoner who reports or alleges abuse. Further, women who allege sexual abuse are entitled to unimpeded access to medical treatment and crisis intervention services.
The agreement also has provisions directed toward staff including the requirement to thoroughly train all staff on their duties to prevent, detect and respond to sexual abuse at Tutwiler. Staff will also be trained on how to manage, interact and communicate appropriately with women prisoners and with their lesbian, gay, bisexual, transgender and gender nonconforming prisoners.
The agreement requires that all sexual abuse and sexual harassment allegations are promptly, thoroughly and objectively investigated and appropriately referred for prosecutorial review, and that alleged victims are advised of the outcome of their allegations. Tutwiler must also take appropriate disciplinary action against staff found to have engaged in sexual abuse or sexual harassment or to have violated Tutwiler’s sexual abuse and sexual harassment policies and procedures.
Tutwiler will put in place a quality assurance program to track and analyze data to ensure that sexual abuse and harassment is being adequately prevented, detected and responded to. Significantly, an independent monitor will evaluate Tutwiler’s progress towards meaningful reform and assist Tutwiler’s compliance efforts. The agreement requires the monitor to provide compliance reports to the court every six months.
Tutwiler’s prisoners have already seen some changes implemented following the department’s investigation. One current prisoner recently wrote to the Civil Rights Division to say, “[W]e thank [DOJ] for all you are doing and are looking forward to all the miraculous things to come.”
The investigation was conducted by the Civil Rights Division’s Special Litigation Section, with assistance from the U.S. Attorney’s Office of the Middle District of Alabama. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department and Consumer Financial Protection Bureau Reach Settlement with Provident Funding Associates to Resolve Allegations of Mortgage Lending DiscriminationRead the Press Release
SAN FRANCISCO – The Justice Department and Consumer Financial Protection Bureau filed a consent order today to resolve allegations that Provident Funding Associates (Provident) engaged in a pattern or practice of discrimination, announced U.S. Attorney Melinda Haag, Principal Deputy Assistant Attorney General of the Civil Rights Division Vanita Gupta, and Consumer Financial Protection Bureau (CFPB) Director Richard Cordray. The consent order resolves allegations that Provident increased loan prices for African-American and Hispanic borrowers who obtained residential mortgages between 2006 and 2011 from Provident’s nationwide network of mortgage brokers.
The settlement, which is subject to court approval, was filed in conjunction with a complaint filed by U.S. Attorney Haag in the U.S. District Court for the Northern District of California. In the complaint, the government alleges Provident violated the Fair Housing Act and Equal Credit Opportunity Act by charging thousands of African-American and Hispanic borrowers higher fees on mortgage loans not based on borrower risk, but because of their race or national origin. The lawsuit originated from a 2011 referral by the Federal Trade Commission (FTC) to the Justice Department’s Civil Rights Division. In 2012, the CFPB joined the Justice Department’s investigation. Provident cooperated fully with the agencies’ investigation into its lending practices and agreed to settle this matter without contested litigation.
“The settlement demonstrates this U.S. Attorney’s office will devote the resources necessary to root out and address unfair lending practices that affect citizens of this district,” said U.S. Attorney Haag. “The law is clear: access to mortgage loans may not be made more difficult because of an applicant’s race or national origin. We are glad that Provident has agreed to put an end to this practice without engaging in protracted litigation.”
“The Civil Rights Division is committed to ensuring that all types of lending institutions, including wholesale mortgage lenders, comply with the fair lending laws,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We look forward to further collaboration with the Bureau in protecting consumers from illegal and discriminatory lending practices.”
“Consumers should never be charged higher fees because of their race or national origin,” said CFPB Director Richard Cordray. “We will continue to root out illegal and discriminatory lending practices in the marketplace. I look forward to working closely with our partners at the Department of Justice to ensure consumers are treated fairly.”
Under the terms of the proposed settlement, Provident will pay $9 million dollars into a fund for the benefit of victims of its alleged mortgage lending discrimination. The proposed settlement provides for an independent administrator to contact and disburse payments to borrowers whom the agencies’ identify as victims of Provident’s discrimination, at no cost to the borrowers. Provident will pay all costs and expenses of the administrator. Borrowers who are eligible for compensation will be contacted by the administrator. The Justice Department will make a public announcement and post contact information on its website once the administrator begins contacting victims.
The U.S. Attorney’s Office for the Northern District of California, the Civil Rights Division, the CFPB, and the FTC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Jury Convicts Property Development Company Executive for $1.2 Million Bank FraudRead the Press Release
TULSA, Okla.—Following an 8-day jury trial, Bruce Carlton Wright, 69, of Norman, was convicted today of conspiracy and 11-counts of bank fraud. The scheme to defraud the IBC Bank of approximately $1.2 million dollars was in connection with property development, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Court documents show from June 2007 to July 2008, Wright and his co-defendant, Robert Alan Blaksley, 52, of Owasso, conspired to submit fraudulent invoices to the IBC Bank for work that was not performed on a Bentonville, Arkansas property. The invoices were materially misleading and omitted sufficient detail to determine if work was actually completed and how much work remained on a property. The bank fraud amount totaled $1,176,490.60.
On August 13, 2014, Wright and Blaksley were charged by indictment for conspiracy to commit bank fraud and bank fraud. During the conspiracy, Wright was the Vice President and President of Group Blaksley, LLC, and was responsible for managing the day-to-day operations and overseeing construction projects. Blaksley was the CEO.
Wright will be sentenced on September 16, 2015, and faces the statutory maximum sentence of 30 years in prison and a fine of $1,000,000. Blaksley pleaded guilty on May 8, 2015, and will be sentenced on August 13, 2015 by United States District Court Chief Judge Gregory K. Frizzell. In addition to the prison incarceration, both defendants will face a criminal forfeiture money judgment in the amount of $1,176,490 representing proceeds of the bank fraud scheme.
The case was investigated by the Federal Bureau of Investigation; Assistant United States Attorneys Joel-lyn A. McCormick and Catherine Depew prosecuted the case.
(U.S. v. Bruce Carlton Wright and Robert Alan Blaksley)
Johnny White Sentenced to 120 Months on a-PVP ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 28, 2015, Johnny White, 46, of Kingsport, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 120 months in federal prison for his role in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in and around the Sullivan County area and for being a convicted felon in possession of ammunition. A-PVP is a synthetic drug which is commonly referred to on the street as “Gravel” or “Flakka.”
According to the plea agreement on file in U.S. District Court, White admitted that he conspired to distribute and was accountable for a conservative estimate of 1,800 grams of a-PVP between March 2012 and March 2014. Additionally, White maintained a dwelling in Kingsport, Tenn., for the purpose of using and distributing a-PVP. Multiple searches of this dwelling by Kingsport police officers resulted in seizures of a-PVP and/or items of drug paraphernalia.
In October 2013, during the search of a vehicle in Kingsport, a loaded .32 caliber handgun was located underneath the passenger seat where White was seated. Officers also found eight .32 caliber rounds of ammunition, a set of digital scales and other items of drug paraphernalia on his person and in his jacket pocket.
Others involved in this a-PVP trafficking investigation include Austin Michael Stallard, Johnny Michael Stallard and Phillip Wayne Mullins, who were sentenced to serve 121 months, 180 months and 151 months in federal prison respectively. White’s sentence of 120 months was ordered to run consecutively with his state sentences from Hawkins and Sullivan counties.
Law enforcement agencies participating in the investigation include the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Department of Homeland Security Investigations; Sullivan County Sheriff’s Office; Kingsport Police Department; Hawkins County Sheriff’s Department; Johnson City Police Department; Greeneville, Tennessee Police Department; Hendersonville, North Carolina Police Department; and Scott County, Virginia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
Jefferson City Man Sentenced to 15 Years in Prison for Attempted Sex Trafficking of a ChildRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for the attempted sex trafficking of a child as the result of an undercover investigation in which he thought he was meeting a 12-year-old victim for illicit sex.
Jeremy Ryan Bappert, 30, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole.
Bappert, who pleaded guilty on Oct. 27, 2014, admitted that he sent a text to a confidential informant, who then notified the Columbia, Mo., Police Department. Bappert asked the confidential informant to find a young girl, “around 9 to 11 years old,” and asked what $100 would get him. A police detective instructed the informant to send a response to Bappert that a person named “Julie” had a child available.
The police detective assumed the role of “Julie” and had a number of text conversations with Bappert. Bappert asked how old the child would be and said he was looking for “very young.” The undercover detective told Bappert that “Julie’s” daughter was 12 years old.
On July 19, 2013, Bappert sent a text to “Julie” seeking to arrange a meeting. He offered to pay $150 and provide a gram of hash in exchange for meeting at a hotel room in Jefferson City. Bappert, whose driver’s license was suspended, wasn’t able to find a ride on that day. He sent another text on July 24, 2013, saying that he had arranged a ride to Columbia but would have to pay $50 to the driver. He offered to pay “Julie” $100 but promised to pay $200 the next time. He also offered to bring “Julie” a gram of hash.
On July 25, 2013, Bappert agreed to meet at a restaurant in Columbia. When Bappert entered the restaurant, he was arrested. Investigators searched Bappert’s cell phone and recovered 246 images and six videos of child pornography.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
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."
Jefferson City Man Sentenced for MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Christopher Eugene Ronimous, also known as “Rodney,” 39, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to five years in federal prison without parole.
On Nov. 5, 2014, Ronimous pleaded guilty to being in possession of 50 grams or more of methamphetamine with the intent to distribute on July 7, 2014.
According to court documents, Jefferson City police officers stopped a vehicle for improper registration. Ronimous, a passenger in the vehicle, got out of the car while officers conducted a search. While standing outside the vehicle, an Altoids can fell from Ronimous’s shorts. Inside the can was approximately five grams of methamphetamine and three “hits” of LSD.
Ronimous was arrested and transported to the police station, where he was observed reaching into his crotch area while inside an interview room. An officer conducted a more thorough search of Ronimous and discovered two bags containing approximately 50 additional grams of methamphetamine.
This case was prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Iyanbito Man Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Kameron Lee Frank, 22, an enrolled member of the Navajo Nation who resides in Iyanbito, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 37 months in prison for his involuntary manslaughter conviction. He will be on supervised release for three years after he completes his prison sentence. Frank was also ordered to pay $4,542.00 in restitution to the family of the victim.
Frank was arrested on July 21, 2014, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Frank killed a Navajo man who was a passenger in his vehicle when he crashed and rolled his pickup truck while driving under the influence of alcohol. The crash occurred on May 23, 2014, in a location within the Navajo Indian Reservation in McKinley County, N.M.
On Jan. 2, 2015, Frank admitted killing the victim by driving recklessly while under the influence of alcohol which rendered him incapable of exercising clear judgment and a steady hand in operating a vehicle. Frank acknowledged that he operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Husband and Wife Sentenced on Conspiracy and Health Care Fraud ConvictionsRead the Press Release
DALLAS — Two Arlington, Texas, residents who were convicted at trial in January 2014 on all counts of a superseding indictment charging them with one count of conspiracy to commit health care fraud and seven substantive health care fraud counts, were sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Pamela Adenuga, 39, was sentenced to 121 months in federal prison, and her husband, Kehinde (Kenny) Adenuga, 46, was sentenced to 60 months in federal prison. In addition, Chief U.S. District Judge Jorge A. Solis ordered the couple to pay $166,653 in restitution.
Since approximately 2007, the Adenugas were the co-owners and operators of His Grace Medical Supply & More (HGMS), located in Arlington. The business also consisted of a lab component that drew and tested blood for Medicare and Medicaid beneficiaries. The defendants’ business was primarily adult incontinence supplies (diapers, wipes, cream, etc.). In fact, 98% of their business was billing Medicaid for these supplies.
Evidence revealed HGMS billed for incontinence supplies for beneficiaries who did not need them or HGMS never delivered the supplies. HGMS falsified files with forged prescriptions from doctors and forged delivery receipts of beneficiaries. The investigation revealed that HGMS billed in excess of $2.6 million solely for adult incontinence supplies.
During trial, the government called doctors and Medicaid beneficiaries to testify that the documents found at HGMS during a search were false and fraudulent.
Dozens of other doctor forgeries were found at HGMS. These forgeries were accompanied by affidavits prepared by the defendants to attest to the accuracy of patient files that were the subject of a Medicaid audit. Medicaid had identified some issues with HGMS billing in 2010, and asked HGMS to substantiate its claims with proper documentation. This documentation was forged and false. More than 100 of those affidavits were prepared on the same day and notarized by a parent of one of the defendants.
The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Michael C. Elliott prosecuted.
Guyanese National Indicted for Mortgage FraudRead the Press Release
A Guyanese national was indicted on charges stemming from his leadership and participation in an extensive mortgage fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ravindranauth “Ravi” Roopnarine, 55, of Guyana, was charged by indictment with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; wire fraud in violation of Title 18, United States Code, Section 1343; conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and money laundering, in violation of Title 18, United States Code Section 1956(a)(1). This morning, Roopnarine was arraigned on the indictment before Chief U.S. Magistrate Judge Frank J. Lynch, Jr.
According to publicly filed documents and statements made in court, on December 9, 2010, a Fort Pierce federal grand jury indicted Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme. Kamla Seecharan, Deo Seecharan and Rovetto previously pled guilty and were sentenced. Roopnarine recently waived extradition and returned from Trindiad and Tobago to the Southern District of Florida.
According to the court documents, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties. Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers. In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan.
Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.
U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release. In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively. U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Georgia trio charged with credit card fraudRead the Press Release
A federal grand jury returned a three-count indictment charging three Georgia residents with access device fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Taylor Johnson, Jayla Bass and Destiny Tanner, each 21. The indictment alleges each defendant knowingly possessed with intent to defraud 15 or more counterfeit or unauthorized credit cards.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the United States Secret Service and local law enforcement.
If convicted, the defendant’s sentence will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Georgia Man Living in PA Admits Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of failing to register as a sex offender, United States Attorney David J. Hickton announced today.
Christopher DeWayne Hayes, 50, formerly of Turner County, Georgia, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from June 12, 2014 to Feb. 5, 2015, Hayes, while living in Pennsylvania, failed to register as a sex offender, as required by the Sex Offender Registration and Notification Act. He was required to register by reason of his 1990 conviction in the State of Georgia for child molestation of a child under the age of 14 years.
Judge Bissoon scheduled sentencing for Sept. 9, 2015, at 10 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court detained Hayes pending his sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Marshal Service conducted the investigation that led to the prosecution of Christopher DeWayne Hayes.
Garden State Cardiovascular Specialists P.C. Agrees to Pay $3.6 Million for Allegedly Submitting False Claims to Federal Health Care ProgramsRead the Press Release
Garden State Cardiovascular Specialists P.C. (Garden State), a cardiology practice which owns and operates several facilities in New Jersey under the name NJ MedCare/NJ Heart, has agreed to pay more than $3.6 million to resolve allegations that its facilities falsely billed federal health care programs for tests that were not medically necessary, announced today by U.S. Attorney Paul J. Fishman for the District of New Jersey.
The settlement announced today resolves allegations that Garden State and its principals, Jasjit Walia M.D. and Preet Randhawa M.D., submitted claims to Medicare for various cardiology diagnostic tests and procedures, including stress tests, cardiac catheterizations and external counterpulsation, which were not medically necessary.
The allegations resolved by today’s settlement were raised in a lawsuit filed under the qui tam, or whistleblower provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower, Cheryl Mazurek, will receive more than $648,000 as part of today’s settlement.
The settlement is the culmination of an investigation conducted by special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Kristin L. Vassallo of the U.S. Attorney’s Office for the District of New Jersey in Newark and Trial Attorney Arthur Di Dio of the Justice Department’s Civil Division.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office in New Jersey 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.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The qui tam case is captioned United States ex rel. Cheryl Mazurek v. Garden State Cardiovascular Specialists, P.C. et al., Civil Action No. 10-4734 (D.N.J.).
Garden State Cardiovascular Specialists P.C. Agrees to Pay $3.6 Million for Allegedly Submitting False Claims to Federal Health Care ProgramsRead the Press Release
NEWARK, N.J. – Garden State Cardiovascular Specialists P.C. (Garden State), a cardiology practice which owns and operates several facilities in New Jersey under the name NJ MedCare/NJ Heart, has agreed to pay more than $3.6 million to resolve allegations that its facilities falsely billed federal health care programs for tests that were not medically necessary, U.S. Attorney Paul J. Fishman announced today.
The settlement announced today resolves allegations that Garden State and its principals, Jasjit Walia M.D. and Preet Randhawa M.D., submitted claims to Medicare for various cardiology diagnostic tests and procedures, including stress tests, cardiac catheterizations, and external counterpulsation, which were not medically necessary.
The allegations resolved by today’s settlement were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower, Cheryl Mazurek, will receive more than $648,000 as part of today’s settlement.
The settlement is the culmination of an investigation conducted by special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Kristin L. Vassallo of the U.S. Attorney’s Office in Newark and Trial Attorney Arthur Di Dio of the Justice Department’s Civil Division, Commercial Litigation Branch.
U.S. Attorney 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.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The qui tam case is captioned United States ex rel. Cheryl Mazurek v. Garden State Cardiovascular Specialists, P.C. et al., Civil Action No. 10-4734 (D.N.J.).
Defense counsel for Garden State and Doctors Walia and Randhawa:
Bruce A. Levy Esq., Newark
Counsel for Relator:
Ross Begelman Esq., Cherry Hill, New Jersey
Four Tampa Residents Charged in Conspiracy to Import XLR-11, a Synthetic Cannabinoid, a/k/a "Spice"Read the Press Release
Four Tampa residents have been charged by indictment with conspiracy to import a synthetic cannabinoid, a/k/a “Spice,” to the United States from China.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Saiful Hossain, 27, Ahmed Yehia Khalifa, 28, Ahmed Maher Elhelw, 25, and Tanjina Islam Piya, 24, all from Tampa, were charged with conspiracy to import a Schedule 1 controlled substance (XLR-11) and conspiracy to manufacture, possess with intent to manufacture and distribute a Schedule 1 controlled substance (XLR-11). If convicted, each offense carries a maximum penalty of 20 years in prison. The indictment also seeks forfeiture of items including, bank account funds and real property.
Following today’s detention hearing before Chief U.S. Magistrate Judge Frank J. Lynch, Jr., Hossain, Khalifa and Elhelw were detained without bond pending trial.
According to allegations contained in court records, U.S. Customs and Border Protection (CBP) Officers in New York identified, searched and detained twelve United States Postal Service (USPS) parcels, destined for Indian River and Palm Beach Counties, in the Southern District of Florida. Each of the parcels was shipped from China and allegedly contained three kilogram packages of a controlled substance, XLR-11 a chemical used in the manufacture of smokable synthetic cannabinoids (SSC). The parcels were mailed to separate private mailboxes, with defined street addresses, located at mailbox service centers in Indian River and Palm Beach Counties.
The court records further allege that SSC products, commonly known as “Spice,” are a mixture of an organic “carrier” medium, such as the herb-like substance damiana leaf and/or marshmallow leaf, which is then typically sprayed or mixed with a synthetic cannabinoid chemical compound which mimics the pharmacological effect of a Schedule I or II controlled substance. This organic “carrier” is then commonly sprayed with a tobacco flavoring such as strawberry, blueberry, or pineapple, in order to mask the harsh chemical taste upon ingestion. Currently, there are hundreds of synthetic cannabinoid compounds.
Mr. Ferrer commended the investigative efforts of HSI, DEA, USPIS, CBP, Hillsborough County Sheriff’s Office, Tampa Police Department, and the Indian River County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and Antonia Barnes.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Banks Reach Resolutions Under Department of Justice Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that the following four banks reached a resolution under the department’s Swiss Bank Program:
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Société Générale Private Banking (Lugano-Svizzera)
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MediBank AG
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LBBW (Schweiz) AG
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Scobag Privatbank AG
“Today’s agreements reflect the Tax Division’s continued progress towards reaching appropriate resolutions with the banks that self-reported and voluntarily entered the Swiss Bank Program,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “The department is currently investigating accountholders, bank employees, and other facilitators and institutions based on information supplied by various sources, including the banks participating in this Program. Our message is clear – there is no safe haven.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay the penalties in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Société Générale Private Banking (Lugano-Svizzera) SA (SGPB-Lugano) was established in 1974 and is headquartered in Lugano, Switzerland. Through referrals and pre-existing relationships, SGPB-Lugano accepted, opened and maintained accounts for U.S. taxpayers, and knew that it was likely that certain U.S. taxpayers who maintained accounts there were not complying with their U.S. reporting obligations. Since Aug. 1, 2008, SGPB-Lugano held and managed approximately 109 U.S.-related accounts, with a peak of assets under management of approximately $139.6 million, and offered a variety of services that it knew assisted U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS), including “hold mail” services and numbered accounts. Some U.S. taxpayers expressly instructed SGPB-Lugano not to disclose their names to the IRS, to sell their U.S. securities and to not invest in U.S. securities, which would have required disclosure and withholding. In addition, certain relationship managers actively assisted or otherwise facilitated U.S. taxpayers in establishing and maintaining undeclared accounts in a manner designed to conceal the true ownership or beneficial interest in the accounts, including concealing undeclared accounts by opening and maintaining accounts in the name of non-U.S. entities, including sham entities, having an officer of SGPB-Lugano act as an officer of the sham entities, processing cash withdrawals from accounts being closed and then maintaining the funds in a safe deposit box at the bank and making “transitory” accounts available, thereby allowing multiple accountholders to transfer funds in such a way as to shield the identity and account number of the accountholder. SGPB-Lugano will pay a penalty of $1.363 million.
Created in 1979 and headquartered in Zug, Switzerland, MediBank AG (MediBank) provided private banking services to U.S. taxpayers and assisted in the evasion of U.S. tax obligations by opening and maintaining undeclared accounts. In furtherance of a scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, MediBank failed to comply with its withholding and reporting obligations, providing “hold mail” services and offering numbered accounts, thus reducing the ability of U.S. authorities to learn the identity of the taxpayers. After it became public that the Department of Justice was investigating UBS, MediBank hired a relationship manager from UBS and permitted some of that person’s U.S. clients to open accounts at MediBank. Since Aug. 1, 2008, MediBank had 14 U.S. related accounts with assets under management of $8,620,675. MediBank opened, serviced and profited from accounts for U.S. clients with the knowledge that many likely were not complying with their U.S. tax obligations. MediBank will pay a penalty of $826,000.
LBBW (Schweiz) AG (LBBW-Schweiz) was established in Zurich in 1995. Since August 2008, LBBW-Schweiz held 35 U.S. related accounts with $128,664,130 in assets under management. After it became public that the department was investigating UBS, LBBW-Schweiz opened accounts from former clients at UBS and Credit Suisse. Despite its knowledge that U.S. taxpayers had a legal duty to report and pay tax on income earned on their accounts, LLB permitted undeclared accounts to be opened and maintained, and offered a variety of services that would and did assist U.S. clients in the concealment of assets and income from the IRS. These services included following U.S. accountholders instructions not to invest in U.S. securities and not reporting the accounts to the IRS and agreeing to hold statements and other mail, causing documents regarding the accounts to remain outside the United States. LBBW-Schweiz will pay a penalty of $34,000.
Headquartered in Basel, Switzerland, Scobag Privatbank AG (Scobag) was founded in 1968 to provide financial and other services to its founders, and obtained its banking license in 1986. Since August 2008, Scobag had 13 U.S. related accounts, the maximum dollar value of which was $6,945,700. Scobag offered a variety of services that it knew could assist, and that did assist, U.S. clients in the concealment of assets and income from the IRS, including “hold mail” services and numbered accounts. Scobag will pay a penalty of $9,090.
In accordance with the terms of the program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
“These four additional bank agreements signal a change in terrain for offshore banking,” said Chief Richard Weber for the IRS-Criminal Investigation (CI). “No longer is it safe to hide money offshore and expect that it will not be discovered. IRS CI Special Agents will continue to follow the money to find those who circumvent the offshore disclosure laws and hold them accountable.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and IRS’s Large Business and International Division for their substantial assistance, as well as Karen M. Quesnel, Sean P. Beaty, Gregory S. Seador, W. Damon Dennis and Brian D. Bailey, who served as counsel on these matters, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Forty-One Defendants Charged with Conspiracy to Traffic Heroin and Prescription Opioids to Upper Midwest Indian ReservationsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of forty-one members of a multi-state heroin trafficking conspiracy. The 41 defendants named in the indictment were charged with Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone. Several defendants were charged with additional crimes related to the drug trafficking scheme, including firearms offenses. The defendants are making initial appearances this week before Magistrate Judge Tony Leung in U.S. District Court in St. Paul, Minn.
"The indictment of the Beasley drug trafficking organization is emblematic of our commitment to combatting heroin trafficking in Minnesota," said U.S. Attorney Andrew Luger. "These defendants, led by Omar Beasley, represented the most significant source of heroin in Indian Country. Through close collaboration with our federal, local, and Tribal law enforcement partners, we have shut down this major pipeline that was spreading heroin across the Red Lake and White Earth Indian Reservations and the surrounding communities."
"The Omar Beasley heroin and prescription drug trafficking organization cared nothing about the collateral damage it inflicted upon neighborhoods, families, and especially young children on tribal lands in Minnesota and elsewhere in the Midwest," stated DEA Minneapolis-St Paul Assistant Special Agent in Charge Dan Moren. "Beasley and the 40 other members of his organization believed that federal, state, local and tribal law enforcement agencies throughout the region were not speaking with one another and connecting the dots…they were wrong."
Red Lake Police Department’s Public Safety Director William Brunelle said: "We have sent a clear message to drug trafficking organizations that drug dealing will not be tolerated on or near Tribal reservations. I have a great appreciation and the utmost respect for all law enforcement agencies participating in this drug investigation. This is a perfect example of how multiple law enforcement agencies can successfully collaborate against one common enemy that is devastating both Indian and Non-Indian communities alike. Drug dealers have no borders to follow and law enforcement has proven that they will cross all borders to get the job done as well."
White Earth Police Department’s Public Safety Director Randy Goodwin said: "We are proud of the hard work and dedication that resulted in the arrests of a criminal organization that prospered from poisoning many people on the White Earth Nation. Many lives, families and communities have been damaged or destroyed from this poison. Now, the hard work of healing and wellness begins!"
"I am very proud of the fantastic job that ATF, DEA, BCA, the Paul Bunyan Task Force and other law enforcement agencies did working collaboratively with the common goal of dismantling the Beasley drug trafficking organization," stated ATF St. Paul Field Division Special Agent in Charge James C. Modzelewski. "I am confident that this investigation has significantly impacted the flow of illegal narcotics and violations of federal firearms laws in a multi-state area."
Special Agent in Charge of the Federal Bureau of Investigation Minneapolis Division Richard Thornton said: "The FBI is proud to stand shoulder to shoulder with its law enforcement partners when it comes to fighting the scourge of drugs and drug dealing on reservations. Those who would engage in drug dealing should note that law enforcement will always be seeking to uncover their activities."
Minnesota Bureau of Criminal Apprehension Superintendent Wade Setter said: "This case came together because of the criminal justice partnerships that are critical when investigating multi- jurisdictional crimes of this nature. This effort will continue as long as criminals endeavor to funnel this deadly drug to the people of our state."
According to the indictment and documents filed in court, from at least April 2014 until April 2015, OMAR SHARIF BEASLEY, 37, led a drug trafficking conspiracy in which he recruited drug sources, managers, distributors, facilitators, couriers and drivers to bring heroin and other drugs to the Red Lake and White Earth Indian Reservations in Minnesota and Native American communities in North Dakota.
According to the indictment and documents filed in court, WILLIAM DAVID ALONZO, 23, CALVIN BEASLEY, 58, WILLIE BELLAMY, JR., 67, ERNESTINE DUKES, 45, MICHAEL LENIOR DUKES, 47, BRENDA ANN FAGAN, 67, VELVET ILENE JOHNSON, 44, YVETTE KOUAYARA, 53, BURNEY ABDULAH PEOPLES, 27, DOERON EARL RAYFORD, 41, LAMARCUS ANTONIO BROCK, 37, STEPHEN MARTIN HOLLIS, 37, MICHAEL TRAVELL COLLINS, 38, YALONZO RAMON HULL, 50, STACEY RAE DUCHAINE, 24, SARAH ELIZABETH THOMPSON, 30, and JODI LYNN KJOLBERG, 44, served as the out-of-state branches of the drug trafficking organization. These defendants acted as facilitators, suppliers, transporters, or distributors from Detroit, Mich., Chicago, Ill., Minneapolis, Minn., Milwaukee, Wis., and North Dakota.
According to the indictment and documents filed in court, TRAVIS JAMES BAKER, 25, ROSE LYNN BARRETT, 27, SONNIE MARIE BARRETT, 26, TIMOTHY JOSEPH BEAULIEU, JR., 33, MICHAEL JOSEPH DOMINGUEZ, 29, APRIL MARIE GRAVES, 31, JARVIS ALLEN KING, 23, CHRISTOPHER ERVING PEOPLES, 33, RAVONNA RAYE PEOPLES, 44, SHERRLENE ROSE ROBERTS, 67, DALE ANDREW SIGANA, 32, and ROBYN JOANNE WIPF, 33, served as the Red Lake branch of the drug trafficking organization. These defendants distributed drugs on the Red Lake Indian Reservation on behalf of the conspiracy. They also maintained drug stash houses on the reservation and gave the proceeds of drug sales to co-conspirators.
Several co-conspirators, identified in the indictment as WILLIAM JAMES FASTHORSE, 25, DURIAL JOHN JACKSON, 29, JUSTIN LEE JOHNSON, 24, GENE MICHAEL KEEZER, 37, NAKOYA HARRIS KEEZER, 37, RODNEY LEE KEEZER, 36, JENNIFER LYNN OPPEGARD, 27, JESSICA RAE OPPEGARD, 36, LEE ALLEN OPPEGARD, 39, LUCAS JOHN PETERSON, 26, and MAISIE ANN SARGENT, 25, served as the White Earth branch of the drug trafficking organization. These defendants facilitated, managed, transported and distributed drugs on the White Earth Indian Reservation on behalf of the conspiracy. They also received and transferred funds, as well as maintained drug stash houses on the White Earth Indian Reservation.
According to the indictment and documents filed in court, between April 2014 and April 2015, the defendants conspired with each other to distribute multiple kilograms of heroin, as well as methamphetamine, oxycodone, hydromorphone, hydrocodone, and methadone to the communities in and surrounding the Red Lake and White Earth Indian Reservations. As part of the drug trafficking conspiracy, BEASLEY traveled from Minneapolis, Minn. to Red Lake, Minn., White Earth, Minn., and to North Dakota to provide drugs to co-conspirators for distribution on the Indian Reservations. BEASLEY would then return to major cities in Minnesota, Wisconsin, Illinois, and Michigan to replenish the supply of drugs to bring into Indian Country.
Count One of the indictment alleges multiple overt acts committed by 13 of the defendants in furtherance of the conspiracy. The acts include:
* On October 3, 2014, OMAR BEASLEY, SONNIE BARRETT, and MICHAEL DUKES possessed with intent to distribute approximately 1300 grams of heroin.
* On November 6, 2014, OMAR BEASLEY, CALVIN BEASLEY, BRENDA FAGAN, YALONZO HULL, and YVETTE KOUAYARA possessed with intent to distribute hydrocodone, hydromorphone, and oxycodone.
* On December 2, 2014, OMAR BEASLEY, JODI KJOLBERG, and ROBYN WIPF possessed with intent to distribute approximately 48 grams of heroin.
* On December 9 and 10, 2014, LEE OPPEGARD distributed approximately 7 grams of heroin.
* On December 14, 2014, OMAR BEASLEY distributed approximately 13 grams of heroin.
* On December 16, 2014, OMAR BEASLEY distributed approximately 15 grams of methamphetamine.
* On March 10, 2015, WILLIAM ALONZO and TIMOTHY BEAULIEU, JR., possessed with intent to distribute approximately 200 grams of heroin as well as hydrocodone, methadone, and oxycodone.
* On April 14, 2015, OMAR BEASLEY possessed with intent to distribute approximately 300 grams of heroin.
* On April 15, 2015, STEPHEN HOLLIS possessed with intent to distribute approximately 200 grams of heroin.
This case is the result of a cooperative investigation conducted by the Red Lake Police Department, the White Earth Police Department, the Paul Bunyan Drug Task Force, the FBI Safe Trails Task Force, the West Central Minnesota Drug and Violent Crimes Task Force, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Minnesota Bureau of Criminal Apprehension, assisted by the following law enforcement agencies and task forces, Becker County Sheriff’s Office, Beltrami County Sheriff’s Office, Bemidji Police Department, Bloomington Police Department, Bureau of Indian Affairs, Clearwater County Sheriff’s Office, Customs and Border Protection, Detroit Lakes Police Department, Frazee Police Department, Hubbard County Sheriff’s Office, Mahnomen County Sheriff’s Office, Minnesota Department of Correction, Minnesota State Highway Patrol, Lakes to River Drug Task Force, North Dakota Bureau of Criminal Investigation, Pine to Prairie Drug Task Force, and Wisconsin Department of Criminal Investigation.
This case is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Melinda A. Williams.
Defendant Information:
OMAR SHARIF BEASLEY, 37
Anoka County Jail
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 3 counts
• Distribution of Heroin, 1 count
• Distribution of Methamphetamine, 1 count
WILLIAM DAVID ALONZO, 23
Detroit, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 1 count
• Possession with Intent to Distribute Hydrocodone, Methadone, and Oxycodone 1 count
• Possession of a Firearm During and in Relation to a Drug Trafficking Crime, 1 count
TRAVIS JAMES BAKER, 25
Bemidji, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• False Statements During the Purchase of a Firearm, 1 count
ROSE LYNN BARRETT, 27
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
SONNIE MARIE BARRETT, 26
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 1 count
CALVIN BEASLEY, 58
Detroit, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
TIMOTHY JOSEPH BEAULIEU, JR., 33
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 1 count
• Possession with Intent to Distribute Hydrocodone, Methadone, and Oxycodone 1 count
• Possession of a Firearm During and in Relation to a Drug Trafficking Crime, 1 count
WILLIE BELLAMY, JR., 67
Detroit, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
LAMARCUS ANTONIO BROCK, 37
Chicago, Ill.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
MICHAEL TRAVELL COLLINS, 38
Unknown
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
MICHAEL JOSEPH DOMINGUEZ, 29
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
STACEY RAE DUCHAINE, 24
Unknown
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
ERNESTINE DUKES, 45
Detroit, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
MICHAEL LENIOR DUKES, 47
Detroit, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 1 count
BRENDA ANN FAGAN, 67
Detroit, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
WILLIAM JAMES FASTHORSE, 25
White Earth, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
APRIL MARIE GRAVES, 31
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
STEPHEN MARTIN HOLLIS, 37
Brooklyn Park, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 1 count
YALONZO RAMON HULL, 50
Milwaukee, Wis.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
DURIAL JOHN JACKSON, 29
Unknown
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
JUSTIN LEE JOHNSON, 24
Mahnomen, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
VELVET ILENE JOHNSON, 44
Farmington Hills, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
GENE MICHAEL KEEZER, 37
Waubun, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
NAKOYA HARRIS KEEZER, 37
Ogema, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
RODNEY LEE KEEZER, 36
Frazee, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
JARVIS ALLEN KING, 23
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
JODI LYNN KJOLBERG, 44
Duluth, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 1 count
YVETTE KOUAYARA, 53
Detroit, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
JENNIFER LYNN OPPEGARD, 27
Naytahwaush, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
JESSICA RAE OPPEGARD, 36
Naytahwaush, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
LEE ALLEN OPPEGARD, 39
Mahnomen, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Distribution of Heroin, 1 count
BURNEY ABDULAH PEOPLES, 27
Clinton Township, Mich.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
CHRISTOPHER ERVING PEOPLES, 33
St. Paul, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
RAVONNA RAYE PEOPLES, 44
Minneapolis, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
LUCAS JOHN PETERSON, 26
White Earth, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
DOERON EARL RAYFORD, 41
Chicago, Ill.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
SHERRLENE ROSE ROBERTS, 67
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
MAISIE ANN SARGENT, 25
Mahnomen, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
DALE ANDREW SIGANA, 32
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
SARAH ELIZABETH THOMPSON, 30
Unknown
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
ROBYN JOANNE WIPF, 33
Red Lake, Minn.
Charges:
• Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
• Possession with Intent to Distribute Heroin, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Fort Myers Man Sentenced in Child Pornography Distribution CaseRead the Press Release
Fort Myers, Florida – United States District Judge John A. Steele has sentenced Adam Moffett (32, Ft. Myers) to 10 years in federal prison for distributing and possessing child pornography. The Court also ordered him to serve a life term of supervision as a sexual offender. Moffett pleaded guilty on February 25, 2015.
According to court documents, Moffett utilized private Internet chat rooms to communicate with other individuals, distribute, and receive child pornography. After a search warrant was executed at his residence, Moffett was found to be in possession of over 600 child pornography images.
This case was investigated by the Lee County Sherriff’s Office and the Federal Bureau of Investigation’s Child Exploitation Unit. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former VA Contractor Sentenced to Prison in Connection with Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Willie Streater (25, Tampa) to six years and nine months in federal prison for access device fraud and aggravated identity theft. As part of his sentence, the Court entered a money judgment in the amount of $25,206, which is a portion of the proceeds traceable to the offense. Streater was also ordered to pay restitution in excess of $1 million to the IRS. He pleaded guilty on March 19, 2015.
According to court documents, Streater is a former employee of a shredding company that had a contract with the U.S. Department of Veterans Affairs to shred documents at the James A. Haley Veterans Hospital in Tampa. Streater stole documents intended for shredding that contained the personal identifying information of U.S. veterans and sold them to multiple individuals engaged in filing fraudulent tax returns in order to steal tax refunds from the U.S. Treasury.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, the Internal Revenue Service - Criminal Investigation, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Former Speaker of the United States House of Representatives Charged with Structuring Cash Withdrawals to Evade Currency Transaction Reporting Requirements and Making False Statement to the FBIRead the Press Release
CHICAGO — The former Speaker of the United States House of Representatives was charged today with structuring the withdrawal of $952,000 in cash in order to evade the requirement that banks report cash transactions over $10,000, and lying to the Federal Bureau of Investigation about his withdrawals. The defendant, JOHN DENNIS HASTERT, 73, of Plano, Illinois, was charged with one count each of structuring currency transactions to evade Currency Transaction Reports and making a false statement to the FBI in an indictment returned by a federal Grand Jury. He will be ordered to appear for arraignment on a later date in U.S. District Court.
According to the indictment, in 2010, Hastert agreed to provide Individual A $3.5 million in order to compensate for and conceal his prior misconduct against Individual A. From 2010 to 2014, Hastert withdrew a total of approximately $1.7 million in cash from various bank accounts and provided it to Individual A. Beginning in approximately July 2012, Hastert started structuring his cash withdrawals in increments of less than $10,000 to evade the filing of Currency Transaction Reports (“CTRs”), which banks are required to file for cash withdrawals in excess of $10,000. In December of 2014, when questioned by the FBI regarding his structuring of cash withdrawals, Hastert falsely stated that he was keeping the cash.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Stephen Boyd, Acting Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
Each count of the indictment carries a maximum penalty of 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorneys Steven Block and Carrie Hamilton.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Senate Staffer Charged with Wire FraudRead the Press Release
A former staff member of the U.S. Senate Committee on Commerce, Science and Transportation was charged by indictment in the Eastern District of Virginia with defrauding at least three women of approximately $500,000, announced Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
The indictment charges Robert Lee Foster, 65, of De Pere, Wisconsin, with nine counts of wire fraud.
According to the indictment, from 2008 through May 2015, Foster devised a scheme to fraudulently obtain money and property from at least three women, whom Foster targeted because of their age, health, marital or family status, or other personal circumstances. The indictment alleges that Foster used his affiliation with the U.S. Senate to gain the victims’ trust and confidence, and that he made various false and fraudulent representations to the victims, which prompted them to send Foster money, which funds he then used for his own personal benefit.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
This case was investigated by the FBI. The case is being prosecuted by Trial Attorneys Kevin Driscoll and Peter Halpern of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia.
Foster Indictment