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26 May 2015
Summary of settlement agreement between the Justice Department and City of Cleveland regarding the Cleveland Division of PoliceRead the Press Release
INTRODUCTION
The Department of Justice (DOJ) and the City of Cleveland (City) have reached a Settlement Agreement (Agreement) to reform the Cleveland Division of Police (CDP). The Agreement is intended to resolve DOJ’s findings that CDP engages in a pattern or practice of using unreasonable force in violation of the Fourth Amendment.
PROVISIONS OF THE SETTLEMENT AGREEMENT
The Settlement Agreement contains the following important mechanisms:
Community engagement with CDP:
- Development of formal and informal mechanisms to ensure greater community engagement with CDP.
- Creation of a Community Police Commission that represents Cleveland’s many communities. Provides input on CDP’s policies, training, civilian oversight system, and bias-free policing and community engagement strategies.
- Implementation of a comprehensive community and problem-oriented policing model to strengthen partnerships with the community and ensure collaborative problem-solving.
Search and seizure practices and bias-free policing:
- Revision of policies and training to ensure that all stops and searches are conducted in accordance with the Constitution and in a manner that takes into account community values.
- Significantly more supervision of officers’ search and arrest practices.
- Development of a bias-free policing policy that makes clear that biased policing, including deciding to detain someone based solely on racial stereotypes, is prohibited. Includes training on cultural competency and implicit bias.
- Tracking and analysis of interactions between the police and residents, including the race, ethnicity, age, and gender of people who are stopped and against whom force was used.
- Community input into comprehensive training related to bias-free policing.
- Development of a recruiting plan that will include specific strategies for attracting a diverse group of applicants.
Use of force:
- Revision of force policies and improved training and guidance on when and how officers may use force, including an emphasis on de-escalation of incidents.
- Strengthening of the systems for reviewing and investigating uses of force.
- Creation of a Force Review Board to review serious uses of force, including the circumstances leading up to the use of force, officers’ tactical decisions, the adequacy of supervision and equipment, and CDP’s medical response.
Crisis intervention:
- Development of a Mental Health Response Advisory Committee to foster relationships and build support between police, the community and mental health providers.
- Development of a plan to ensure that specialized officers who have received advanced training in responding to individuals in crisis respond to calls related to those in mental-health crisis.
Accountability:
- Revised systems to ensure that all allegations of officer misconduct are investigated fully, fairly, and efficiently, and that officers who engage in misconduct are held accountable.
- Placement of a civilian at the head of Internal Affairs and improved training of Internal Affairs investigators.
- Substantial changes to the Office of Professional Standards and the Police Review Board to ensure that all civilian complaints of police misconduct are thoroughly and effectively investigated.
Transparency and oversight:
- Creation of a civilian Police Inspector General to review policies and practices; analyze trends; review investigations conducted by the Office of Professional Standards; and review all discipline imposed.
- Broad data collection regarding many of CDP’s activities, including its use of force and stop and search practices, and public reporting of that data.
Officer assistance and support:
- Implementation of an effective employee assistance program that provides officers ready access to the mental health and support resources.
- Development of a comprehensive equipment and resource study to assess current needs and priorities to perform the functions necessary for CDP to fulfill its mission, and submission of plan to the independent monitor.
Implementation and Termination:
- Filed in federal Court and operates as a federal court order once approved by a judge.
- Overseen by an independent monitor, chosen by the Parties for an initial term of five years, to assess and report on whether the requirements of this Agreement have been implemented.
- Termination of the Agreement when the city has demonstrated to a judge that it been in substantial and effective compliance for two consecutive years for most requirements of the Agreement, one year for the search and seizure requirements.
Statement by U.S. Attorney Damon P. Martinez on the Fatal Shooting of Rio Rancho Police Officer Gregg BennerRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez released the following statement today regarding the fatal shooting of Gregg Benner, 49, a Police Officer with the Rio Rancho Police Department:
“The fatal shooting of Officer Gregg Benner strikes at the very core of the values we hold dear. Officer Benner was a committed and courageous public servant, dedicated to our community and was devoted to our security. He exemplified the very best that our Country has to offer in the performance of his duties. The thoughts and prayers of the law enforcement community are with Officer Benner’s family and loved ones throughout this difficult time. As we go forward, the Department of Justice intends to honor his service and sacrifice by continuing to fight for our shared values, and defending the American people he proudly served.
“The murder of this man is a devastating reminder that the work our brave police officers perform every day is extremely dangerous, profoundly heroic, and deeply deserving of our unequivocal support. All Americans owe these courageous public servants a debt of gratitude.”
Springfield Woman Sentenced to Nearly Four Years in Prison for Embezzling More Than $400,000 from Former EmployerRead the Press Release
Springfield, Ill. – In court this morning, U.S. District Judge Sue E. Myerscough sentenced a Springfield, Ill., woman, Alice M. Foss, 53, to serve 46 months in federal prison for embezzling more than $400,000 from her former employer, a Springfield consulting and lobbying firm. During a jury trial in January 2015, Foss pled guilty to the charges against her: mail fraud (five counts), wire fraud (seven counts), and access device fraud (one count.)
Foss was ordered to pay restitution in the amount of $464,925. Foss was ordered to report to begin serving her prison term on a date to be determined by the federal Bureau of Prisons.
At her plea hearing, on Jan. 20, 2015, Foss admitted that she embezzled money from Don Moss and Associates from May 1997 to October 2009. At the time of the fraud, Foss was employed as the firm’s chief financial officer and in that capacity, had check-signing authority and control over the firm’s bank account and was responsible for paying the firm’s business expenses.
As part of the fraud scheme, Foss admitted that she repeatedly wrote fraudulent bonus checks to herself as well as checks she falsely represented were reimbursements for business expenses, when, in fact, the false expenses were simply one of the means she used to conceal her embezzlement. Foss admitted that she repeatedly used DMA’s bank account and credit card account to pay personal expenses, including personal car payments, donations to a private school, and payments to personal credit cards. Foss also used the DMA credit card to pay for personal expenses including payments for clothing, groceries, gas, car washes and rentals, hotel rooms, hair salon and spa expenses, and veterinary bills.
The charges were investigated by the U.S. Postal Inspection Service and the FBI. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.
Smithfield Resident Sentenced for Money Laundering and Harboring a FugitiveRead the Press Release
Defendant aided his brother after he fled the country
NEWPORT NEWS, Va. – Danish Syed, 19, of Smithfield, Va., was sentenced today to eighteen months in prison, followed by three years of supervised release, following his convictions for Conspiracy to Commit Money Laundering and Harboring a Fugitive. He was also ordered to pay $35,618.28 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and John S. Adams, Special Agent in Charge of the FBI’s, Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Danish Syed pled guilty on February 24, 2015. According to the statement of facts filed with his plea agreement, Danish Syed is the half-brother of Mehdi Syed, who was charged, in March, 2014, with an account take over and identity theft scheme. As alleged in the indictment, Mehdi, under the guise of a legitimate company sought to obtain thousands of dollars from customers of SunTrust Bank by fraudulently transferring funds from individual accounts to nominee checking accounts established by Mehdi in the names of aliases and purported business entities. In April, 2014, Mehdi was located in North Carolina and agreed to surrender to authorities. Mehdi relocated his family from North Carolina to Smithfield, Virginia; the home of his mother, his step-father and his half-brother, Danish. After Mehdi failed to turn himself in, authorities interviewed his family members and they each claimed they did not know his whereabouts. The next day Mehdi’s mother, “NS,” contacted authorities and admitted they had lied to the FBI and that they did know Mehdi’s location as Danish Syed drove Mehdi to a hotel on the Eastern Shore of Virginia. Mehdi was arrested and on May 28, 2014 was released on bond and electronic monitoring. In June, 2014, Mehdi opened several bank accounts with FirstView in the names of aliases. On July 9, 2014 Mehdi’s electronic monitoring bracelet was located in a wooded area off of Mercury Blvd. in Hampton, Virginia, and on the same day a warrant was issued for his arrest.
One of the customers whose account was fraudulently accessed was “DS.” Beginning in August, 2014 Mehdi caused “DS’s” account to be accessed without her permission. Through third party payroll services thousands of dollars were transferred out of “DS’s” account and into the Firstview accounts Mehdi had created while on pre-trial release. Firstview closed several of the accounts they suspected were opened on suspicion of fraud and the funds were mailed to the address on record; Danish Syed’s home in Smithfield. Thereafter Danish Syed communicated with Mehdi Syed about the funds. On or about October 14, 2014 through October 16, 2014, Danish Syed deposited the FirstView checks, which represented fraudulent funds, into an account accessible by Mehdi. From October 15, 2014 through October 30, 2014 Mehdi withdrew nearly all of the funds that Danish had deposited into the account from ATM machines located in Lahore, Pakistan.
This case was investigated by IRS-CI and FBI. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin Gratton are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14CR72.
Shreveport man sentenced for failing to update his sex offender registration after moving to TexasRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man was sentenced to 24 months in prison for failing to update his sex offender registration when he moved.
Justin Ray Merritt, 33, of Shreveport, was sentenced by U.S. District Judge Donald E. Walter on one count of failure to update his sex offender registration. He was also sentenced to five years of supervised release. According to evidence presented at the February 26, 2015 guilty plea, Merritt reported his residence to be in Shreveport in December 17, 2013 as required by the Sex Offender Registration and Notification Act. Merritt was discovered living in Texarkana, Texas, on August 14, 2014. He admitted to not updating his sex offender registration information when moving to Texarkana and to have been living there since November of 2013. He was convicted in 2004 of felony carnal knowledge of a juvenile in Caddo Parish, which requires 15 years of sex offender registration.
The U.S. Marshals Service and Louisiana Probation and Parole conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Shipping Company Sentenced to Pay $800K for Dumping OilRead the Press Release
Anchorage, Alaska – AML Ship Management GMBH, a German company, was sentenced in federal court today to pay a total of $800,000 in fines and community service payments for violating the Clean Water Act and the Act to Prevent Pollution from Ships by intentionally discharging 4,500 gallons of oily bilge water into the ocean off the coast of Alaska and then presenting false records to the U.S. Coast Guard.
AML was also ordered to implement a comprehensive Environmental Compliance Plan and was placed on probation for three years. During the term of probation, AML will be subject to a heightened level of scrutiny, including warrantless searches of its vessels and places of business based upon a reasonable suspicion that it is violating the law. Of the total payment, AML will pay $675,000 in criminal fines and $125,000 in community restitution. The community restitution payment will go to the Alaska SeaLife Center to be used for projects and research that have a nexus to the Clean Water Act oil pollution crime committed.
Chief Engineer Nicolas Sassin was sentenced in Oregon last Friday to serve five months of home confinement followed by five years of probation for his role in these offenses. The Court in Oregon found the Chief Engineer Sassin used a special skill due to his engineering abilities to commit his Clean Water Act crime.
Defendant AML is the operator of the Motor Vessel City of Tokyo. The M/V City of Tokyo is a vehicle carrier vessel that operates under the flag of the Republic of Liberia. It was built in 1987, weighs approximately 42,247 gross tons, and is 603 feet long. Defendant Nicolas Sassin worked as the Chief Engineer of the M/V City of Tokyo between May 28, 2014 and September 6, 2014, when the vessel arrived in Oregon and was contacted by the United States Coast Guard.
On August 22, 2014, the M/V City of Tokyo departed South Korea and thereafter travelled through the Exclusive Economic Zone (EEZ) of the United States off the coast of Alaska arriving in Canada on September 2, 2014. The vessel departed Canada on September 3, 2014. The M/V City of Tokyo arrived in Tacoma, Washington on September 4, 2014, and remained there until departing for Portland, Oregon. The M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
As the operator of the M/V City of Tokyo, AML was responsible for operating the Oil Water Separator (OWS) and maintaining an accurate Oil Record Book (ORB). As the Chief Engineer, Nicolas Sassin was responsible for the pollution control equipment in the M/V City of Tokyo’s engine room, including running the OWS and for maintaining the Oil Record Book (ORB).
On or about August 29, 2014, AML knowingly discharged oily bilge water into the United States’ Exclusive Economic Zone off the coast of Alaska which may have affected natural resources belonging to, appertaining to, and under the exclusive management authority of the United States and in a quantity that may be harmful.
AML admitted that while the M/V City of Tokyo was approximately 165 nautical miles south of the Aleutian Islands, specifically Sanak Island, Alaska, the Chief Engineer used an illegal pump system to knowingly discharge approximately 4,500 gallons of oily bilge water directly overboard. The illegal pump system consisted of a fabricated flanged fitting that connected the overboard discharge valve and pipe to a pneumatic Wilden pump. The pump’s suction was connected to a hose that was fed down the sounding tube for the bilge holding tank. The illegal pump system allowed the vessel’s crew to discharge oily bilge water from the bilge holding tank directly overboard without processing it through the required pollution prevention equipment (OWS and oil content meter). The overboard discharge created a sheen in the water off the stern of the vessel, and this was witnessed by crewmembers aboard the M/V City of Tokyo. The illegal pump system was dismantled prior to the vessel’s arrival in Portland.
AML knowingly failed to maintain an accurate ORB as required by the Act to Prevent Pollution from Ships (APPS).
Chief Engineer Sassin and AML also failed to record this discharge of oil into the sea by way of the illegal pump system and overboard discharge valve in the M/V City of Tokyo’s ORB, and knowingly presented and/or had available for inspection by the United States Coast Guard a false and fictitious ORB when the M/V City of Tokyo arrived in Portland, Oregon on September 5, 2014.
AML and Chief Engineer Sassin were charged in separate cases filed in both the District of Alaska and the District of Oregon. The Oregon charges against AML were transferred to Alaska, and the Alaska charges against Mr. Sassin were transferred to Oregon. No charges were dismissed.
“The year is 2015, and unfortunately oil pollution from ships continues to be a worldwide problem,” noted First Assistant United States Attorney Kevin Feldis. “AML and Mr. Sassin failed to uphold their obligations to protect our environment when they knowingly discharged oily water into the ocean within the Exclusive Economic Zone off the Coast of Alaska. The criminal fine, Environmental Compliance Plan, community service payment and probationary conditions ordered by the Court are all appropriate sanctions and remedies, and will hopefully serve to prevent future crimes.”
The M/V City of Tokyo was initially inspected and detained in Portland, Oregon by the United States Coast Guard marine inspectors. These cases were investigated by the U.S. Coast Guard Investigative Service and prosecuted jointly by the United States Attorney’s Office for the District of Alaska, the United States Attorney’s Office for the District of Oregon, and the Department of Justice’s Environmental Crimes Section.
Senior Member of Al-Qaeda Pleads Guilty to Conspiring to Kill U.S. Soldiers in Iraq and Afghanistan and Providing Material Support to Al-QaedaRead the Press Release
Defendant Tried to Lure American Solders to a Compound in Afghanistan that Was Rigged with Explosives; Also Facilitated the Entry of an American Citizen into Al-Qaeda
Earlier today, Saddiq al-Abbadi, 40, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, providing and conspiring to provide material support to al-Qaeda and using a machine gun in furtherance of those crimes.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington, D.C., Field Office. Today’s guilty plea proceeding took place before U.S. District Court Judge Nicholas G. Garaufis of the Eastern District of New York. At sentencing, al-Abbadi faces a maximum of life imprisonment.
“With the guilty plea entered today, Saddiq al-Abbadi will be held accountable for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division.”
“The defendant was a high-level al-Qaeda operative with ties to the terrorist group’s senior leadership in both Pakistan and Yemen,” said Acting U.S. Attorney Currie. “He fought in battles against U.S. troops in Iraq and Afghanistan, tried to kill U.S. troops in Afghanistan by luring them to a compound rigged with explosives, and helped an American citizen gain entry to al-Qaeda. We stand resolute in our commitment to bring to justice those who would try to harm members of our military or who assist al-Qaeda’s efforts to kill Americans at home or abroad.”
“With today’s guilty plea, Al-Abbadi admitted to directly supporting the mission of a designated terrorist organization through planning an operation designed to kill U.S. forces and for engaging in recruitment efforts on behalf of al-Qaeda,” said Assistant Director in Charge McCabe. “This plea is due in no small part to the many FBI Special Agents, intelligence analysts, and linguists from the Washington and New York Field Offices as well as our interagency and international partners who spent countless hours investigating terrorism actors and al-Abbadi’s actions. The FBI will not rest until we find and hold accountable those who provide support to terrorist groups and ensure that they are brought to justice.”
According to court filings, al-Abbadi traveled from his home country of Yemen to Iraq where, from approximately late 2005 through early 2007, he fought alongside al-Qaeda affiliated battalions against U.S. troops stationed in Iraq.
In early 2008, al-Abbadi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan in order to fight for al-Qaeda in Pakistan and Afghanistan. While in the FATA, al-Abbadi – who had longstanding ties to senior members of al-Qaeda’s Yemen-based affiliate known as al-Qaeda in the Arabian Peninsula (AQAP) – engaged directly with senior al-Qaeda leadership in Pakistan, including Sheikh Saeed al-Masri, the then-third ranking member of al-Qaeda.
During the late spring and summer of 2008, Al-Abbadi crossed from Pakistan into Afghanistan for the purpose of fighting and killing members of the U.S. military stationed in Afghanistan. In June 2008, he planned an operation designed to lure U.S. forces to a compound in Ghazni, Afghanistan, that was rigged with explosives set to detonate upon their entry. When U.S. forces arrived at the compound, they found rocket-propelled grenades and artillery rounds littered about. One soldier observed wiring running from the exterior gate to the inside of the compound and recognized the trap. The military evacuated and subsequently leveled the compound.
In addition to fighting against the U.S. military, al-Abbadi used his connections with al-Qaeda’s leadership to help U.S. citizen Bryant Neal Vinas gain entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island, New York, in the hopes of joining al-Qaeda and fighting against U.S. military forces in Afghanistan. As a result of al-Abbadi’s assistance, Vinas was allowed to join al-Qaeda. After participating in al-Qaeda’s military training program, Vinas developed a plan with senior al-Qaeda external operations leadership to conduct an attack on the Long Island Railroad in New York. Vinas was arrested before he could carry out this attack.
Assistant Attorney General Carlin extended his grateful appreciation to the FBI. The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section and by the Office of International Affairs.
Senior Member of Al-Qaeda Pleads Guilty to Conspiring to Kill U.S. Soldiers in Iraq and Afghanistan and Providing Material Support to Al-QaedaRead the Press Release
Earlier today, Saddiq al-Abbadi, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, providing and conspiring to provide material support to al-Qaeda, and using a machine gun in furtherance of those crimes. The guilty plea proceeding took place before United States District Judge Nicholas G. Garaufis. At sentencing, al-Abbadi faces a maximum of life imprisonment.
The guilty plea was announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
“The defendant was a high-level al-Qaeda operative with ties to the terrorist group’s senior leadership in both Pakistan and Yemen. He fought in battles against U.S. troops in Iraq and Afghanistan, tried to kill U.S. troops in Afghanistan by luring them to a compound rigged with explosives, and helped an American citizen gain entry to al-Qaeda,” stated Acting United States Attorney Currie. “We stand resolute in our commitment to bring to justice those who would try to harm members of our military or who assist al-Qaeda’s efforts to kill Americans at home or abroad.”
“With the guilty plea entered today, Saddiq al-Abbadi will be held accountable for conspiring to kill Americans overseas and providing material support to al-Qaeda,” said Assistant Attorney General Carlin. “Seeking to identify, thwart, and hold accountable those who target U.S. citizens and interests around the world will remain a top priority of the National Security Division.”
“With today’s guilty plea, Al-Abbadi admitted to directly supporting the mission of a designated terrorist organization through planning an operation designed to kill U.S. forces and for engaging in recruitment efforts on behalf of al-Qaeda,” said FBI Assistant Director in Charge McCabe. “This plea is due in no small part to the many FBI Special Agents, intelligence analysts, and linguists from the Washington and New York Field Offices as well as our interagency and international partners who spent countless hours investigating terrorism actors and al-Abbadi’s actions. The FBI will not rest until we find and hold accountable those who provide support to terrorist groups and ensure that they are brought to justice.”
According to court filings, al-Abbadi traveled from his home country of Yemen to Iraq where, from approximately late 2005 through early 2007, he fought alongside al-Qaeda affiliated battalions against U.S. troops stationed in Iraq.
In early 2008, al-Abbadi traveled to the Federally Administered Tribal Areas (“FATA”) of Pakistan in order to fight for al-Qaeda in Pakistan and Afghanistan. While in the FATA, al-Abbadi – who had longstanding ties to senior members of al-Qaeda’s Yemen-based affiliate, known as al-Qaeda in the Arabian Peninsula or AQAP – engaged directly with senior al-Qaeda leadership in Pakistan, including Sheikh Saeed al-Masri, at the time the third-ranking member of al-Qaeda.
During late spring and summer 2008, Al-Abbadi crossed from Pakistan into Afghanistan for the purpose of fighting and killing members of the United States military stationed in Afghanistan. In June 2008, he planned an operation designed to lure U.S. forces to a compound in Ghazni, Afghanistan, that was rigged with explosives set to detonate upon their entry. When U.S. forces arrived at the compound, they found rocket-propelled grenades and artillery rounds littered about. One soldier observed wiring running from the exterior gate to the inside of the compound and recognized the trap. The military evacuated and subsequently leveled the compound.
In addition to fighting against the U.S. military, al-Abbadi used his connections with al-Qaeda’s leadership to help U.S. citizen Bryant Neal Vinas gain entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island in the hopes of joining al-Qaeda and fighting against U.S. military forces in Afghanistan. As a result of al-Abbadi’s assistance, Vinas was allowed to join al-Qaeda. After participating in al-Qaeda’s military training program, Vinas developed a plan with senior al-Qaeda external operations leadership to conduct an attack on the Long Island Railroad in New York. Vinas was arrested before he could carry out this attack.
The case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad, Michael P. Canty, and Douglas M. Pravda, are in charge of the prosecution, with assistance provided by Trial Attorney Josh Parecki of the Justice Department’s Counterterrorism Section and by the Office of International Affairs.
The Defendant:
SADDIQ AL-ABBADI
Age: 40
Nationality: Yemeni
E.D.N.Y. Docket No. 15-CR-124 (NGG)
Schuele Boys Gang Associate Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Antwan Garner, 30, of Buffalo, NY, pleaded guilty to conspiracy to distribute cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that as an associate of the Schuele Boys Gang, the defendant purchased cocaine from co-defendants Michael Robertson and Antwon Steward. Garner then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Garner was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. He is the fifth to be convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Pyramid Scheme Promoter Arrested on Visa Fraud ChargesRead the Press Release
BOSTON – A Florida man involved in several pyramid schemes was arrested on visa fraud charges after entering the United States from a trip abroad.
Sanderley Rodrigues De Vasconcelos, 43, of Davenport, Fla., was charged in U.S. District Court in Boston on Saturday, May 16, 2015, with fraud and misuse of visas, permits, and other documents. He made an initial appearance in Newark, NJ on May 18th, and was detained pending meeting conditions of release set by a federal magistrate judge there.
According to the charging documents, Rodrigues presented his green card to Customs and Border Protection Officers on May 3, 2015, at Logan Airport, knowing that he obtained that document based upon false statements to immigration officials. Rodrigues was arrested at Newark International Airport when he returned to the United States from Israel on May 16, 2015, after a trip abroad. Following a detention hearing on Thursday, May 21, 2015, in Newark, NJ, Rodrigues was released on conditions, including the surrender of his passport and the passports belonging to his family members, a $200,000 secured bond, 24-hour electronic monitoring, and home confinement.
In 2006, Rodrigues first came to the attention of federal authorities when the Securities and Exchange Commission (SEC) sued him for owning and operating Universo Fone Club and defrauding investors of millions of dollars. More recently, Rodrigues was cited by the SEC for his role in promoting TelexFree, a pyramid scheme that purported to sell a voice over Internet service. In July 2014, the owners of TelexFree, James Merrill and Carlos Wanzeler, were charged with conspiracy to commit wire fraud and several counts of wire fraud.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pittsburg Bay Point Resident Sentenced to 41 Months for Tax Fraud SchemeRead the Press Release
OAKLAND – Charles S. Moore was sentenced to 41 months in prison and ordered to pay restitution of $78,353 to the United States for his role in a false tax refund scheme, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Moore, of Pittsburg Bay Point, Calif., pleaded guilty on January 16, 2015, to aiding and assisting in the preparation of false tax returns, in violation of 26 U.S.C. § 7206(2). In his plea agreement, Moore admitted that while he was a resident at a drug and alcohol rehabilitation facility, another resident asked him to assist with filing false tax returns. As payment for teaching him the false tax refund scheme, Moore paid the resident with coffee and cigarettes.
Moore realized that if he completed the Form 1040EZ a certain way, he would maximize a fraudulent tax refund, regardless of whether the people for whom the form was prepared earned money or paid taxes. After Moore successfully implemented the scheme once with his nephew, he began preparing false tax returns for people who had no reported income, no student loans, or unpaid child support. Moore usually took a portion of the fraudulent tax refunds as a fee. He prepared and filed no less than 242 tax returns for acquaintances and friends for the 2007 through 2010 tax years, claiming refunds of $166,462. The 41-month sentence was imposed by Judge Jon S. Tigar. Moore is currently in custody.
Assistant U.S. Attorneys Thomas Moore and Jose A. Olivera prosecuted this case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Pharmacist's Drug Conviction Results in 63 Month Prison TermRead the Press Release
PHILADELPHIA - Bevis Vanterpool, 37, of Philadelphia, was sentenced today to 63 months in prison for conspiring to distribute oxycodone, a Schedule II narcotic controlled substance, and money laundering. Between May 2010 and December 19, 2011, Vanterpool owned and operated TraceMark Pharmacy at 4839 North Broad Street in Philadelphia, where he was the sole pharmacist. During that period, Vanterpool accepted and filled nearly 5,000 fraudulent prescriptions for at least 447,761 mg. of oxycodone. Vanterpool knew that the prescriptions were forged and fraudulent, as they had not been written by physicians. Vanterpool laundered at least $1,180,000 in proceeds from his illegal activity.
In addition to the prison term, U.S. District Court Judge Mary A. McLaughlin ordered a fine of $1,000, a special assessment of $200, and three years of supervised release to follow imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration Diversion Unit, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Mary E. Crawley.
Passaic County, New Jersey, Man Sentenced to 78 Months in Prison for Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Wayne, New Jersey, man was sentenced today to 78 months in prison for sharing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.
Manuel Fernandez, 34, previously pleaded guilty before U.S. District Judge Jose L. Linares to one count of an indictment charging him with distributing images of child pornography over the Internet. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Fernandez admitted that between March 2011 and January 2012, he was a member of an online peer-to-peer file sharing network. Fernandez also admitted he made images and videos of child pornography available for other members to download from his “shared” folder. On March 24, 2011, an undercover law enforcement agent successfully downloaded multiple images and videos of child sexual abuse from Fernandez’s computer.
On Jan. 25, 2012, federal law enforcement agents executed a search warrant at Fernandez’s residence. The agents recovered a 1-terabyte hard drive and a 250-gigabyte computer tower, both of which contained numerous images and videos of minor children being sexually abused.
As part of his guilty plea, Fernandez agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.
In addition to the prison term, Judge Linares sentenced Fernandez to serve five years of supervised release.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Chris Adams Esq. Holmdel, New JerseyOwner of Los Angeles Medical Supply Company Sentenced to Seven Years in Prison for $3.3 Million Medicare Fraud SchemeRead the Press Release
The former owner of a Los Angeles-based medical supply company was sentenced today to seven years in prison for his role in a fraud scheme that resulted in $3.3 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office made the announcement.
Hakop Gambaryan, 55, of East Hollywood, California, was convicted following a jury trial on March 20, 2015, of four counts of health care fraud. In addition to the prison sentence, U.S. District Court Judge Otis D. Wright II of the Central District of California ordered Gambaryan to pay $1,740,009 in restitution.
At trial, the evidence showed that Gambaryan, the former owner of a durable medical equipment supply company, fraudulently billed more than $3 million to Medicare for durable medical equipment, such as expensive power wheel chairs, that was not medically necessary. Medicare paid approximately $1.7 million on those fraudulent claims.
The evidence demonstrated that between March 2006 and December 2012, Gambaryan paid cash kickbacks to medical clinics for fraudulent prescriptions for durable medical equipment, which the patients did not need. Gambaryan then used these prescriptions to bill Medicare for the unnecessary equipment.
According to evidence presented at trial, Gambaryan personally delivered power wheelchairs to many beneficiaries who were able to walk without assistance. In one instance, Gambaryan carried a power wheelchair up a flight of stairs for a woman who lived in a second floor apartment with no elevator. In another instance, the power wheelchair would not fit inside the beneficiary’s home, so Gambaryan put it in the beneficiary’s garage.
The evidence also demonstrated that Gambaryan generated false documentation to support the fraudulent claims, including fake home assessments when no home assessments actually occurred. In addition, Gambaryan photocopied beneficiaries’ signatures hundreds of times to create the appearance that the beneficiaries consented to ongoing equipment rentals, when they did not. Indeed, at least two of the beneficiaries had passed away prior to the date they supposedly signed the rental agreements.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. The case was prosecuted by Trial Attorneys Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Opelousas man sentenced to 15 months in prison for leaving Lake Charles halfway houseRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that an Opelousas man pleaded guilty and was sentenced to 15 months in prison for leaving a halfway house without permission.
Christopher James Courvelle, 45, of Opelousas, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of escape from custody. He was also sentenced to three years of supervised release. According to the guilty plea, Courvelle left a federally-approved halfway house in Lake Charles on March 3, 2015 without notifying those in charge. The U.S. Marshals Service was notified and began an investigation. Courvelle was located at a bus depot near the Road King truck stop in Lake Charles and was arrested on March 4, 2015. He had been placed in the halfway house after being convicted in June of 2012 for failing to update his registration pursuant to the Sex Offender Registration Act. He had also previously been convicted of simple rape, which requires a lifetime of sex offender registration.
The U.S. Marshals Service and U.S. Bureau of Prisons investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Howard C. Parker prosecuted the case.
New York Securities Lawyer and Owner of Registered Broker-Dealer Sentenced to 18 Months in Prison for Orchestrating Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – A New York corporate and securities lawyer was sentenced today to 18 months in prison for orchestrating a stock market manipulation scheme designed to artificially inflate the stock price of two publicly traded companies through manipulative trading and other fraudulent means, U.S. Attorney Paul J. Fishman announced.
Adam S. Gottbetter, 46, of New York and Boca Raton, Florida, pleaded guilty on Sept. 3, 2014, before U.S. District Judge Jose L. Linares to conspiracy to commit securities and mail fraud. Judge Linares imposed the sentence today in Newark federal court.
Two other men, Kenneth David Stevenson, 55, and Mitchell G. Adam, 47, both of Vancouver, Canada, have also been charged for their roles in the scheme. Stevenson pleaded guilty before Judge Linares on Dec. 9, 2013, to conspiracy to commit securities and mail fraud. He is scheduled to be sentenced on May 28, 2015 at 10 a.m. Adam was charged by criminal complaint on May 15, 2015, with conspiracy to commit securities, mail and wire fraud. He was arrested on May 20, 2015, at the Houston George Bush Intercontinental Airport in Texas.
According to the documents filed in these cases and statements made in court:
Gottbetter was a licensed attorney and the managing partner of Gottbetter & Partners LLC, a New York-based securities and corporate law firm, which he founded. Gottbetter marketed himself as an expert in taking private companies public through a reverse merger process, which he referred to as an “Alternative Public Offering,” or his trademarked “Gottbetter Public Offering.” Gottbetter owned Gottbetter Capital Markets LLC, a registered broker-dealer, and Gottbetter Capital Group Inc., a firm which provided a variety of corporate transactional services to its clients.
Between June 2012 and November 2013, Gottbetter directed a scheme to manipulate the price and trading volume of Dynastar Holdings Inc. (DYNA), a social media company headquartered in Louisville, Kentucky, and HBP Energy Corp. (HBPE), a developmental stage company based in Houston, Texas, to create the false appearance of market interest in, and to artificially inflate the value of, both securities. Gottbetter conspired with others to manipulate the price and volume of these securities to, among other things, make the companies more attractive to potential investors in various private offerings that Gottbetter would broker and which would generate substantial fees and other illicit gains to Gottbetter, his law firm and his broker-dealer, and to sell the stocks at the fraudulently inflated prices to the investing public for a profit.
Gottbetter and his conspirators obtained and concealed control of a significant portion of free-trading shares of DYNA and HBPE stock, agreed to fraudulently inflate the price and trading volume of the stocks through a variety of means – including disseminating false or misleading promotional materials to the investing public and engaging in manipulative trading of the stocks to create the appearance of market interest – and planned to sell the stocks at the fraudulently inflated prices or use the fraudulently inflated value of the companies to solicit private investments, thereby profiting at the expense of the investing public.
To assist in manipulating the stock of DNYA and HBPE, Gottbetter recruited a stock promoter and trader who owned a broker-dealer in New York and who claimed to have experience in various manipulative and fraudulent trading strategies. Unbeknownst to Gottbetter, however, this individual (“the CW”) was cooperating with law enforcement. During the DYNA manipulation, Gottbetter instructed the CW to create “volume” in DYNA’s stock so that the stock would eventually trade “on its own.” Gottbetter agreed that the CW would trade DYNA stock among various accounts that the CW controlled to “build a chart” for DYNA stock – in other words, to create the fake appearance of legitimate trading activity, which would be touted as “market” activity to unsuspecting investors in a later promotional mailer. Gottbetter reviewed a draft of a promotion that the CW created in connection with the DNYA scheme. The mailer contained numerous materially false and misleading statements and material omissions. During a meeting with the CW, Gottbetter was offered a copy of the mailer, but refused to keep it, stating that he “never saw it.”
Later in the scheme, the CW informed Gottbetter that the CW had developed an algorithmic trading system, or black box, for the purpose of manipulating the price of stocks. The CW controlled 32 online brokerage accounts that were opened in the names of foreign nominees, and that a computer program that the CW created and controlled could trade between those accounts to create the appearance of massive volume in any stock. Gottbetter directed the CW to use the black box in connection with the DYNA scheme
In July 2013, before Gottbetter and the CW had launched the DYNA promotional campaign and completed the manipulative trading of DYNA’s stock, Gottbetter recruited the CW to participate with him, Stevenson and Adam in another, more profitable and elaborate market manipulation scheme involving HBPE. Like DYNA, Gottbetter and others conspired to manipulate the price and volume of HBPE’s stock through a variety of fraudulent means, including manipulative trading through the CW’s black box. Gottbetter, Stevenson and Adam also planned an elaborate promotional campaign that would take place after HBPE’s stock was manipulated to a certain level, including international “call rooms,” listing HBPE’s stock on foreign exchanges, a “road show” and other activities. Law enforcement intervened before the HBPE promotion could take place.
Nonetheless, Gottbetter, Stevenson and Adam expected to realize significant profits by selling HBPE stock at fraudulently inflated prices. Gottbetter also anticipated generating substantial fees to his law firm and broker-dealer in connection with financing deals that he would close for HBPE after the stock price had been artificially inflated to certain levels. In one consensually recorded conversation with the CW, Gottbetter commented that the only other way to make as much money as he and his conspirators expected to make manipulating HBPE’s stock would be by “robbing a bank.”
In addition to the prison term, Judge Linares sentenced Gottbetter to one year of supervised release, fined him $60,000 and ordered him to forfeit $344,967. Gottbetter also forfeited $4,595,333 to the U.S. Securities and Exchange Commission.
The conspiracy counts with which Adam and Stevenson are charged each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s sentence and the related charges against Stevenson and Adam. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Andrew Calamari.
The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
The charges and allegations contained in the complaint against Adam are merely accusations, and he is presumed innocent unless and until proven guilty.
New Orleans Man Sentenced for Bank RobberiesRead the Press Release
In Austin today, a federal judge sentenced 39-year-old Derrick Terrill Nix of New Orleans, LA, to two six-year prison terms to run concurrent for an attempted bank robbery and a bank robbery in North Austin, announced Acting United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
In addition to the prison terms, U. S. District Judge Lee Yeakel ordered that Nix pay $5,262 restitution and be placed on supervised release for a period of three years after completing his prison term.
On February 20, 2015, Nix pleaded guilty to one count of attempted bank robbery and one count of bank robbery. By pleading guilty, Nix admitted that on May 12, 2014, he attempted to rob a Capital One Bank at 9602 N. Lamar Blvd. Nix pulled a handgun from a backpack and demanded money. When Nix realized the teller was behind bullet proof glass, Nix fled by vehicle. On that same day, Nix committed the second robbery at a Chase Bank located at 4601 N. Lamar Blvd. Nix ordered everyone in the bank to get on the floor and demanded money while holding guns in each of his hands. Nix fled with $5,262 in stolen money.
The case resulted from a joint investigation by the FBI, Austin Police Department, and the Brenham Police Department. Assistant United States Attorney Elizabeth Cottingham prosecuted this case on behalf of the Government.
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Montgomery County Man Pleads Guilty to Deceptive Telemarketing Fraud Scheme that Defrauded Clients of $2.9 MillionRead the Press Release
Greenbelt, Maryland - Richard A. Brennan, age 42, of Clarksburg, Maryland, pleaded guilty today to two counts of mail fraud, and to making a false statement on a tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement, until January 2009, Brennan was a licensed attorney in Maryland. In late 2005 or early 2006, Brennan established the Law Offices of Richard A. Brennan (LORAB) to perform debt settlement services. “Debt settlement” differed from “debt management” services. In debt management, debtors continue to make payments on accounts on negotiated terms, while debt settlement involves allowing debt accounts to go delinquent and making a lump sum offer to settle the account. While debt management services – and the fees that could be charged customers – were closely regulated in Maryland, debt settlement services were not.
The Maryland Attorney General’s Office and the Maryland Attorney Grievance Commission both received a high number of complaints from Brennan’s customers reporting that they were deceived by telemarketers who convinced them of the high probability of success by engaging Brennan and his debt settlement program, but who reported seeing little success in having their debts resolved. When the clients complained to LORAB, their calls frequently went unreturned and they were typically told their payments would not be refunded as they constituted Brennan’s attorney fees.
In October 2007, Brennan agreed with the Maryland Attorney General’s Office to cease engaging in a number of business practices, including misuse and commingling of his clients’ funds. Despite this agreement, Brennan continued to recruit new clients without making the disclosures required under the agreement with the Attorney General’s office, and omitting any mention of his restrictions under the agreement, which included a requirement that he maintain a surety bond in order to continue to provide debt settlement services.
To evade the restrictions in the agreement, Brennan changed his business entity name several times in quick succession, to include doing business for a few months as the Capital Law Group, then the Frederick Law Group and later as theMetro Law Group. Brennan did so in an effort to keep new clients from researching the large numbers of complaints posted online about his practices, and also instructed telemarketers working for him to deny the new entities’ relationship with Richard Brennan.
In January 2009, Brennan surrendered his license to practice law by signing a joint petition with the Attorney Grievance commission. In that document, Brennan admitted that he had used client trust money for purposes other than its intended use. In June, 2009, Brennan appeared before the Circuit Court of Frederick County and acknowledged that he continued to debit funds from client bank accounts even after his surety bond had been revoked. Brennan was ordered to pay a $2.58 million money judgment in restitution to clients from whom he collected money up until October 2007. The Court also briefly jailed Brennan for contempt after he failed to provide the Attorney General’s Office a list of clients or accounting for funds as he had promised.
Even after losing his license to practice and this judgment, Brennan continued to attempt to defraud debt clients. On November 6, 2009, Brennan mailed an existing Frederick Law Group client a letter under the business entity name “International Debt Solutions.” In that letter, Brennan acknowledged that Frederick Law Group’s “web site and call center have been closed” “[d]ue to unforeseen circumstances” and attempted to dissociate himself with that firm by claiming that that “[Frederick Law Group] has forwarded us your information.” Brennan asked the client to fill out a new representation agreement, power of attorney, and electronic funds transfer authorization, which the victim returned by mail to an address two houses away from Brennan’s.
Brennan’s debt management fraud scheme caused the loss of approximately $2.9 million to his clients between October 18, 2007, and 2010, and involved more than 250 victims.
Brennan also admitted that he filed false tax returns in 2006 and 2007, underreporting his income in both years. For example, in 2007, Brennan reported an adjusted gross income of negative $576,273.10 when he had unreported business receipts that year of at least $9,229,802. Additionally, Brennan received a total of $5,387 in tax refunds based on his knowingly false returns submitted for 2006 and 2007. Brennan filed no tax returns for the tax year 2008, despite receiving over $6 million into business bank accounts he controlled. The total approximate tax loss to the United States is $297,087.
Further, Brennan knowingly possessed unregistered machineguns and short-barreled rifles and also engaged in the unlicensed manufacture of the machineguns. Specifically, in February 2011, a search warrant executed at Brennan’s home in Clarksburg, Maryland, yielded evidence that Brennan unlawfully converted 10 semiautomatic rifles into fully automatic weapons, and modified another rifle so that it had a barrel length of less than six inches. Brennan failed to register those modified weapons, as required by law.
Brennan faces a maximum sentence of 20 years in prison for mail fraud and a maximum of three years in prison for the tax charge. U.S. District Judge Theodore Chuang has scheduled sentencing for September 3, 2015, at 10:15 a.m.
United States Attorney Rod J. Rosenstein praised ATF, U.S. Postal Inspection Service, IRS-Criminal Investigation, and the Maryland Attorney General’s Office for their work in the investigation and thanked the Maryland Attorney Grievance Commission for its assistance. Mr. Rosenstein thanked Assistant United States Attorneys Adam K. Ake and Joseph R. Baldwin, who are prosecuting the case.
Michigan Man Sentenced to 14 Months Prison for Making Telephone Bomb Threats to San Benito High SchoolRead the Press Release
SAN JOSE—Jason Keith Smith was sentenced to 14 months in prison for making multiple telephone bomb threats to San Benito High School, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Smith, 30, of Lincoln Park, Michigan, pleaded guilty on March 3, 2015, to an indictment charging him with communicating threats, in violation of 18 U.S.C. § 875(c). Smith admitted in his plea agreement that in November 2012, he began sending threatening Internet messages to a student at San Benito High School in Hollister, Calif. (the Student). In one instance, the defendant sent the Student a text message indicating that someone would be hurt unless she contacted him. The defendant admitted in his plea agreement that, in early December 2012, he knowingly placed a number of telephone bomb threats from his home in Michigan to San Benito High School. Specifically, on December 2 and 3, 2012, the defendant placed a call to San Benito High School claiming to be a police detective, stating that the Student was in trouble with the law and requesting that she contact him. The defendant also admitted in his plea agreement that on December 3, 2012, he called San Benito High School and left a series of telephone bomb threats on the school attendance message. In one of these messages, the defendant said that there was a bomb in the high school and that people should run and hide. The defendant further admitted that he left another telephone message indicating no one knew where he had placed the bomb, but he would blow the school to pieces. The defendant also admitted that he stated during one of these calls, “And by the way, I want you to look up this one chick named [the Student]. If she goes to school there, please let her know that I am watching her.” The defendant also admitted to making additional telephone bomb threats on December 4 and 7, 2014. As a result of defendant’s telephone bomb threats, San Benito High School had to be evacuated on several occasions and significant law enforcement resources were dedicated to investigate the threats.
Smith was charged in an indictment filed on February 19, 2014. Smith has been in federal custody since October 6, 2014. The sentence was handed down by U.S. District Judge Lucy H. Koh. Judge Koh also sentenced Smith to serve a three-year period of supervised release with special conditions. Among the special conditions of his supervised release are that he not telephone San Benito High School or possess any computer without permission from his probation officer.
The case was prosecuted by Northern District of California Assistant U.S. Attorney Joseph Fazioli and Eastern District of Michigan Assistant U.S. Attorney Kevin Mulcahy, with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation in Northern California and Detroit, the Hollister Police Department, and the Lincoln Park Police Department.
Miami Springs Police Department Sergeant Arrested on Corruption ChargeRead the Press Release
Miami Springs Police Department (MSPD) Sergeant Andres Quintanilla arrested today on a corruption charge.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Andres Quintanilla, 33, of Miami Springs Police Department, was charged by complaint with attempting to affect commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a), punishable by up to twenty years in prison.
According to the allegations contained in the complaint, in September 2014, an FBI confidential source (CS) informed Quintanilla that he (the CS) was a drug trafficker. Rather than arrest the CS, or open an investigation, Quintanilla offered to help the CS’s drug trafficking business. During a series of recorded meetings, Quintanilla allegedly offered advice on how the CS should run his drug trafficking business, provided the location of an unmarked Miami Dade Police Department narcotics office, provided the names of three Miami Dade Police Department officers, and promised to provide photographs of officers in the future. In addition, Quintanilla ran the name of a purported drug dealer in a law enforcement database when asked to do so by CS.
By December 2014, Quintanilla had agreed to act as an escort during a purported 10 kilogram cocaine deal. Under FBI direction, the CS told Quintanilla that the CS needed a safe location in Miami Springs where the CS could exchange 10 kilograms of cocaine for $250,000. Quintanilla chose a location for the transaction to take place and, on the date of the transaction, the FBI filmed and recorded Quintanilla meeting with the CS and viewing the cocaine. After the purported deal took place with a second undercover CS acting as a drug dealer, Quintanilla then followed the CS’s vehicle to an express package service center, where Quintanilla believed that the CS would ship the $250,000 of drug proceeds to New York. Quintanilla participated in the transaction in uniform, while driving his MSPD marked vehicle. In exchange for his assistance, Quintanilla accepted $3,500 in bribe payments.
The complaint further alleges that in April 2015, FBI agents approached Quintanilla at his residence to discuss his involvement in the trafficking of narcotics. During the interview, Quintanilla admitted receiving bribes in return for assisting the CHS’s drug trafficking business.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the Miami Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to 41 Months in Prison for Executing a $4 Million Dollar Bank Fraud SchemeRead the Press Release
Julian Martin Gaspar Vazquez (Gaspar), 52, of Mexico was sentenced on May 22, 2015, by United States District Judge William P. Dimitrouleas, to forty-one months imprisonment, to be followed by five years of supervised release for executing a $4 million dollar bank fraud scheme. Gaspar was also ordered to pay $4,488,000 in restitution. In addition, the Court imposed a $4 million forfeiture money judgment against Gaspar.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael McCarthy, Deputy Inspector General, Export-Import Bank (Ex-Im Bank), and Andrew G. McCabe, Assistant Director in Charge, Federal Bureau of Investigation (FBI), Washington Field Office, made the announcement.
On February 12, 2015, Gaspar pled guilty to one count of bank fraud, in violation of Title 18, United States Code, Section 1344.
According to court documents Gaspar was the owner of “Ecologia en Tratamientos de Agua, S.A. de C.V.” (“ETA”). ETA was a Mexican company in the business of water treatment. In or around March of 2006, Gaspar sought an Ex-Im Bank insured credit line from Espirito Santo Bank, a United States bank located in Miami, Florida. Ex-Im Bank is a United States agency that issues insurance to United States lending banks for loans made to foreign buyers of United States goods. The stated purpose for the credit line was to enable ETA to import United States goods into Mexico.
From September 2009 through February 2010, Gaspar caused Espirito Santo Bank to make four reimbursement disbursements of $1 million each to ETA. The supporting documents included false bank records purporting to show payments by ETA to a United States company and false Mexican customs documents purporting to show that United States goods had been exported to Mexico. From in or around March 2010, through in or around August 2010, ETA and Gaspar failed to repay the disbursements when due, and defaulted on the Ex-Im Bank insured loan. As a result, Gaspar caused $4,488,000 in losses to Ex-Im Bank which had insured the loan that Gaspar fraudulently obtained from Espirito Santo Bank.
Mr. Ferrer commended the investigative efforts of the Ex-Im Bank OIG and the FBI. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
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.
Memphis Woman Sentenced to 70 Months for Fraud, Identity TheftRead the Press Release
Memphis, TN – A 34-year-old Memphis woman has been sentenced to nearly six years in prison for access device fraud and identity theft.
At different times between December 1, 2011 and February 1, 2012, Kavecia Simon, while employed in the payroll department of Fred’s Department Store, illegally obtained the names, social security numbers and other personal information of colleagues, according to an indictment and facts discussed in court.
After obtaining the personal information of various coworkers, she would access Fred’s computer system and use the stolen information to order and route Fred’s pay cards. The pay cards were solely for reimbursing Fred’s employees for overtime and company expenses. However, Simon used them for personal benefit.
Further investigation revealed that Simon used additional victims’ information to acquire credit accounts and rent apartments. Altogether, Simon fraudulently obtained over $20,000 during her scheme.
In June 2014, Simon pled guilty, but she failed to appear for her sentencing that October. While in fugitive status, she committed additional acts of identity theft. In March 2015, she was apprehended in Desoto County, Mississippi.
Judge Sheryl H. Lipman sentenced Simon to 70 months in prison on Friday, May 22nd.
The case was investigated by the United States Secret Service and Memphis Police Department Economic Crimes Unit. Assistant U.S. Attorney Stephen Hall prosecuted the case on behalf of the government.
Media Advisory: Federal, State and Local Law Enforcement Officials to Highlight Child Protection Efforts and Announce National Missing Children CampaignRead the Press Release
WHO:
A. Lee Bentley, III
United States Attorney
Middle District of FloridaDavid Gee
Sheriff
Hillsborough County Sheriff’s OfficeMicah McCombs
Assistant Special Agent-in-Charge
ICE/Homeland Security InvestigationsRick Ramirez
Special Agent in Charge
Florida Department of Law EnforcementDaniel Slaughter
Chief of Police
Clearwater Police Department
Clearwater/Tampa Bay Area Task Force Against Human TraffickingAssistant Chief Brian Dugan
Tampa Police DepartmentWHAT: Press Conference
Enforcement and protection agencies to highlight combined efforts against child sexual predators and other predatory practices. Federal, state, and local law enforcement agencies will recognize National Missing Children’s Day by announcing a new national child safety campaign.
WHEN: WEDNESDAY, MAY 27, 2015
10:00 A.M. ESTWHERE: Tampa Marriott Waterside Hotel
700 N. Florida Avenue
(Meeting Room 1, Second Floor)
Tampa, FL 33602OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license). Media may begin arriving at 9:15 A.M. EST.
Media Advisory:Read the Press Release
Cedar Rapids, Iowa – The United States Attorney’s Office for the Northern District of Iowa will join the Waterloo Police Department, Black Hawk County Sheriff’s Office, and the Black Hawk County Attorney’s Office in holding a joint press conference on May 27, 2015, announcing federal gun-related criminal charges against seven individuals. This joint law enforcement action is part of Project Safe Neighborhoods, which has as its purpose reducing incidences of gun violence.
Event Details
When: Wednesday, May 27, 2015
Where: Waterloo City Hall Media Center (lower level), 715 Mulberry St., Waterloo, IA.
Time: 10:00 am.
Program
A press release and interview opportunities will be available at the end of the press conference.
Mechanic Pleads Guilty to Child Pornography ChargeRead the Press Release
LAREDO, Texas – Gamaliel Cortez-Mendoza, 43, of Laredo, has entered a guilty plea to possession of child pornography and failing to register as a sex offender, announced U.S. Attorney Kenneth Magidson.
Cortez-Mendoza was arrested in January following an investigation by the Laredo Child Exploitation Task Force led by Homeland Security Investigations and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service.
The Webb County Sheriff’s Office Cyber Crime Unit learned that an individual living at Cortez-Mendoza’s address had been downloading child pornography. Investigators then executed search warrants on Cortez-Mendoza’s home and computers. Forensic analysis later revealed numerous videos and pictures depicting child pornography. Cortez-Mendoza admitted downloading and viewing the videos.
Cortez-Mendoza had previously been convicted in 2004 of possessing child pornography in Harris County and was also required to register as a sex offender.
He faces a minimum of 10 years in prison for the child pornography possession as well as another 10 years for failing to register.
The case, prosecuted by Assistant U.S. Attorney Alfredo De La Rosa, was brought as part of 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."
Man Sentenced for Marijuana Operation and Sparking the Nicolls Fire in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 46, of Perris, was sentenced today to six years and 10 months in prison for his involvement in a large‑scale marijuana cultivation operation on federal land in Kern County and for his role in starting the Nicolls Fire, according to U.S. Attorney Benjamin B. Wagner.
In sentencing Fournier, U.S. District Judge Lawrence J. O’Neill ordered Fournier to pay $6,509,329 in restitution to the U.S. Forest Service.
According to court documents, from about April 1, 2014 to July 12, 2014, Fournier helped water and tend 2,090 marijuana plants at a grow site in the Smith Canyon area of the Sequoia National Forest in Kern County. He admitted that on July 11 and 12, he lit fires in the vicinity of the grow site within the boundaries of the federally designated Kiavah Wilderness Area. The fires converged and became known as the Nicolls Fire. The Nicolls Fire destroyed about 1,680 acres of public land causing over $6.5 million of damage. The fire did not damage the marijuana cultivation site, which also caused significant damage to the land and natural resources of the forest.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management (BLM), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Lockport Pharmacist Indicted for Allegedly Falsely Billing $2.4 Million for Prescription ClaimsRead the Press Release
CHICAGO — A southwest suburban pharmacist was indicted on federal charges for health care fraud, federal law enforcement officials announced today. The defendant, WALTER BEICH, the owner and licensed pharmacist at Lockport Pharmacy, Inc. operating as Corwin Pharmacy, was charged in a twelve-count indictment returned by a federal grand jury last week, alleging he participated in a scheme to defraud various health care benefit programs in the amount of $2,400,000. The indictment also charges Beich with aggravated identity theft for his use of patient and physician names and identifying information during his scheme. The indictment also seeks forfeiture in the amount of $2.4 million, the amount of the alleged loss to the health care providers. Beich, 61, of Lockport, Illinois, was arraigned in federal court this morning and was released on a $4,500 unsecured bond and is scheduled for a status in front of U.S. District Court Judge John W. Darrah on June 26, 2015.
According to the indictment, Beich participated in a scheme to defraud Medicare, Medicaid, Blue Cross Blue Shield, Humana, and United Healthcare by filing fraudulent claims for prescription drugs that were not dispensed to his customers or he had switched out for less-expensive supplements instead of FDA-approved prescription drugs. The indictment also alleges that Beich had his employees create fake prescriptions to make it appear as if a physician had phoned-in certain prescriptions. In addition, the indictment alleges that Beich obtained physician sample drugs and then submitted insurance claims for dispensing these sample drugs as if he obtained those drugs through commercial distribution channels. The indictment also alleges that Beich dispensed a foreign-sourced drug to customers instead of the prescription Viagra.
Health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. Aggravated identity theft carries a mandatory prison term of two years’ incarceration, served consecutively to any other term of imprisonment imposed. Upon a conviction, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
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; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor-OIG.
The government is being represented by Assistant U.S. Attorney Samuel B. Cole.
The public is reminded that a complaint 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
Lake Charles man sentenced to 33 months in prison for failing to register as a sex offenderRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a Lake Charles resident was sentenced to 33 months in prison for not registering as a sex offender.
Michael Dewain Dugas Smith, 35, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi on one count of failure to register pursuant to the Sex Offender Registration and Notification Act. He was also sentenced to five years of supervised release. According to evidence presented at the February 10, 2015 guilty plea, Smith was previously convicted in January 10, 2007 in the 18th Judicial District Court in Brevard County, Fla., of sexual battery with use of actual physical force. After he was released from prison in Florida in January of 2013, he moved to Louisiana but did not register as a sex offender as required by law. Smith was arrested in February of 2013 in Lake Charles for disturbing the peace. He later admitted to agents that he traveled to Louisiana where he has relatives and did not register as a sex offender.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Justice Department and City of Cleveland reach agreement on reforming Cleveland Division of PoliceRead the Press Release
JUSTICE DEPARTMENT REACHES AGREEMENT WITH CITY OF CLEVELAND TO REFORM CLEVELAND DIVISION OF POLICE FOLLOWING THE FINDING OF A PATTERN OR PRACTICE OF EXCESSIVE FORCE
WASHINGTON – The United States Department of Justice and the City of Cleveland announced today that they have entered into a court enforceable agreement to address the department’s findings that the Cleveland Division of Police (CDP) engages in a pattern or practice of using excessive force in violation of the Fourth Amendment. The agreement will create widespread reforms and changes within the CDP. The changes focus on building community trust, creating a culture of community and problem-oriented policing, officer safety and training, officer accountability and technological upgrades. Under the agreement, the parties will jointly select an independent monitor to assess and report whether the requirements of the agreement have been implemented for a term of at least five years.
“The Department of Justice is committed to ensuring that every American benefits from a police force that protects and serves all members of the community,” said Attorney General Loretta E. Lynch. “The agreement we have reached with the city of Cleveland is the result of the hard work and dedication of the entire Cleveland community, and looks to address serious concerns, rebuild trust, and maintain the highest standards of professionalism and integrity. I am pleased to have the full cooperation of law enforcement and city officials in this effort. And I look forward to working with the entire community to build a stronger, safer Cleveland for residents and officers alike.”
The comprehensive agreement calls for:
- The creation of Community Police Commission, made up of ten representatives from across the community, and one representative each from the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield.
- CDP to reform use of force policies, including requirements for the use of de-escalation techniques whenever possible and appropriate, a prohibition on retaliatory force, mandatory reporting and investigation standards following use of force, and medical care for the subjects of force.
- CDP to integrate bias-free policing principles into all levels of the organization, including comprehensive training of officers and supervisors, which is to be developed with community input.
- CDP to create a Mental Health Response Advisory Committee and provide all officers with sufficient training to identify and appropriately respond to situations involving individuals in crisis. CDP will develop a plan to ensure these specialized officers are always available to respond to calls related to those in mental-health crisis.
- CDP to improve officer training by ensuring that it reflects the needs of officers and that it is effective.
- CDP to improve equipment and resources available to officers following a comprehensive equipment and resource study to assess its current needs and priorities, including providing officers with functioning, up-to-date technology in their zone cars that allows them to access necessary information; safe zone cars; and first aid equipment.
- CDP to develop a recruiting policy and strategic recruitment plan that includes clear goals, objectives and action steps for attracting qualified applicants from a broad cross-section of the community. CDP will consult with the Community Police Commission and other stakeholders on strategies to attract a diverse pool of applicants.
“Today’s agreement reflects a commitment by the city and the Division of Police to work with the Department of Justice and the Cleveland community to transform this police agency into a model of community-oriented policing that will make both police officers and the people they serve safer,” said the head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Constitutional policing is key to building trust between police departments and the communities they serve. Today, Cleveland demonstrates to the rest of the country that people can come together across perceived differences to realize a common vision of a safer, more just city."
“For the past days and months the nation has looked toward Cleveland as we have grappled with difficult issues involving police-community relations,” said U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio. “Today, the nation should look to this city as an example of what true partnership and hard work can accomplish – a transformational blueprint for reform that can be a national model for any police department ready to escort a great city to the forefront of the 21st Century. But the hard work is just beginning, and we will need the committed partnership of this entire community to turn today’s promise into tomorrow’s reality.”
The agreement addresses the conclusions announced in December 2014 of a comprehensive investigation into the CPD started in March 2013 which assessed use of force practices of the CDP. The investigation concluded that there was reasonable cause to believe that Cleveland police officers engage in a pattern or practice of unreasonable and in some cases unnecessary force in violation of the Fourth Amendment of the Constitution. That pattern or practice included the unnecessary and excessive use of deadly force, including shootings and head strikes with impact weapons; the unnecessary, excessive or retaliatory use of less lethal force including Tasers, chemical spray and fists; excessive force against persons who are mentally ill or in crisis, including in cases where the officers were called exclusively for a welfare check; and the employment of poor and dangerous tactics that place officers in situations where avoidable force becomes inevitable.
The investigation also found that this pattern of excessive force has eroded public confidence in the police. As a result, public safety suffers and the job of delivering police services was more difficult and more dangerous. The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio.
READ THE SETTLEMENT AGREEMENT
# # #
15-XXX
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Justice Department Sues Beaumont, Texas, for Discrimination Against People with DisabilitiesRead the Press Release
The Justice Department today filed a lawsuit against the city of Beaumont, Texas, alleging violations of the Fair Housing Act and the Americans with Disabilities Act. The lawsuit, filed in U.S. District Court for the Eastern District of Texas, charges that Beaumont discriminated against persons with disabilities based on its treatment of small group homes and companion care homes for persons with intellectual or developmental disabilities by applying overly-restrictive zoning and fire code restrictions that are not imposed on similarly-situated housing for persons who do not have disabilities.
The suit seeks a court order prohibiting Beaumont from imposing a one-half mile spacing rule that effectively prohibits many small group homes and companion care homes from operating in Beaumont. The suit further seeks to prohibit Beaumont from imposing unnecessary fire code requirements that exceed those mandated by the state of Texas, which regulates such homes. The city’s excessive restrictions have prohibited numerous persons with intellectual or developmental disabilities from living in Beaumont and resulted in the institutionalization in a nursing home of a woman who was forced to move out of her home. The suit also seeks monetary damages to compensate victims, as well as payment of a civil penalty.
This lawsuit arose as a result of complaints filed with the U.S. Department of Housing and Urban Development (HUD) by persons with intellectual or developmental disabilities whose homes were closed and were threatened with closure under Beaumont’s challenged housing restrictions.
“The Fair Housing Act and the Americans with Disabilities Act seek to ensure that individuals with disabilities can live in communities of their choice without facing discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “This lawsuit furthers our commitment to community inclusion for persons with disabilities.”
“Fair housing practices for all Americans and certainly for individuals with disabilities is a keystone civil right and one which today’s legal action underscores,” said U.S. Attorney John Malcolm Bales of the Eastern District of Texas. “We trust that the city of Beaumont will respond appropriately but the department and the U.S. Attorney’s office is prepared to take the necessary steps to insure that these rights are enforced.”
“Persons with disabilities should not be further limited in their housing options by overly restrictive codes and policies,” said HUD Assistant Secretary Gustavo Velasquez of Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to support neighborhood-based choices for people with disabilities.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The Federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. Visit www.usdoj.gov/crt for more information about the Civil Rights Division and the laws it enforces. Additional information about the Fair Housing Act is available at www.HUD.gov. Additional information about the Americans with Disabilities Act is available at www.ADA.gov.
Justice Department Reaches Agreement with City of Cleveland to Reform Cleveland Division of Police Following the Finding of a Pattern or Practice of Excessive ForceRead the Press Release
The United States Department of Justice and the City of Cleveland announced today that they have entered into a court enforceable agreement to address the department’s findings that the Cleveland Division of Police (CDP) engages in a pattern or practice of using excessive force in violation of the Fourth Amendment. The agreement will create widespread reforms and changes within the CDP. The changes focus on building community trust, creating a culture of community and problem-oriented policing, officer safety and training, officer accountability and technological upgrades. Under the agreement, the parties will jointly select an independent monitor to assess and report whether the requirements of the agreement have been implemented for a term of at least five years.
“The Department of Justice is committed to ensuring that every American benefits from a police force that protects and serves all members of the community,” said Attorney General Loretta E. Lynch. “The agreement we have reached with the city of Cleveland is the result of the hard work and dedication of the entire Cleveland community, and looks to address serious concerns, rebuild trust, and maintain the highest standards of professionalism and integrity. I am pleased to have the full cooperation of law enforcement and city officials in this effort. And I look forward to working with the entire community to build a stronger, safer Cleveland for residents and officers alike.”
The comprehensive agreement calls for:
- The creation of Community Police Commission, made up of ten representatives from across the community, and one representative each from the Cleveland Police Patrolmen’s Association, the Fraternal Order of Police and the Black Shield.
- CDP to reform use of force policies, including requirements for the use of de-escalation techniques whenever possible and appropriate, a prohibition on retaliatory force, mandatory reporting and investigation standards following use of force, and medical care for the subjects of force.
- CDP to integrate bias-free policing principles into all levels of the organization, including comprehensive training of officers and supervisors, which is to be developed with community input.
- CDP to create a Mental Health Response Advisory Committee and provide all officers with sufficient training to identify and appropriately respond to situations involving individuals in crisis. CDP will develop a plan to ensure these specialized officers are always available to respond to calls related to those in mental-health crisis.
- CDP to improve officer training by ensuring that it reflects the needs of officers and that it is effective.
- CDP to improve equipment and resources available to officers following a comprehensive equipment and resource study to assess its current needs and priorities, including providing officers with functioning, up-to-date technology in their zone cars that allows them to access necessary information; safe zone cars; and first aid equipment.
- CDP to develop a recruiting policy and strategic recruitment plan that includes clear goals, objectives and action steps for attracting qualified applicants from a broad cross-section of the community. CDP will consult with the Community Police Commission and other stakeholders on strategies to attract a diverse pool of applicants.
“Today’s agreement reflects a commitment by the city and the Division of Police to work with the Department of Justice and the Cleveland community to transform this police agency into a model of community-oriented policing that will make both police officers and the people they serve safer,” said the head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Constitutional policing is key to building trust between police departments and the communities they serve. Today, Cleveland demonstrates to the rest of the country that people can come together across perceived differences to realize a common vision of a safer, more just city."
“For the past days and months the nation has looked toward Cleveland as we have grappled with difficult issues involving police-community relations,” said U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio. “Today, the nation should look this city for an example of what true partnership and hard work can accomplish – a transformational blueprint for reform that can be a national model for any police department ready to escort a great city to the forefront of the 21st Century. But the hard work is just beginning, and we will need the committed partnership of this entire community to turn today’s promise into tomorrow’s reality.”
The agreement addresses the conclusions announced in December 2014 of a comprehensive investigation into the CPD started in March 2013 which assessed use of force practices of the CDP. The investigation concluded that there was reasonable cause to believe that Cleveland police officers engage in a pattern or practice of unreasonable and in some cases unnecessary force in violation of the Fourth Amendment of the Constitution. That pattern or practice included the unnecessary and excessive use of deadly force, including shootings and head strikes with impact weapons; the unnecessary, excessive or retaliatory use of less lethal force including Tasers, chemical spray and fists; excessive force against persons who are mentally ill or in crisis, including in cases where the officers were called exclusively for a welfare check; and the employment of poor and dangerous tactics that place officers in situations where avoidable force becomes inevitable.
The investigation also found that this pattern of excessive force has eroded public confidence in the police. As a result, public safety suffers and the job of delivering police services was more difficult and more dangerous. The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the Northern District of Ohio.
Individual Pleads Guilty to Carjacking MurderRead the Press Release
SAN JUAN, Puerto Rico – Ángel Ayala-Dávila (“Ayala-Dávila”), 19, pled guilty to Count One of an information which charged him, aided and abetted by others, with the carjacking murder of Roy Figueiredo-Ramos, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. As part of the plea agreement the parties have recommended a sentencing range of 24 to 30 years’ imprisonment.
On September 8, 2013, Roy Figueiredo-Ramos (“victim”), arrived at the Las Dalias Public Housing Project (“LDPHP”) in San Juan, PR, driving a grey 2002 Toyota Camry, which he parked in front of building 29 of LDPHP. Co-defendant Victor Miguel Duluc-Méndez, charged in a separate indictment, approached the victim and inquired if he was interested in selling the vehicle. The victim replied that he was not, but that he was willing to rent it. Shortly thereafter, Ayala-Dávila joined the conversation. Ayala-Dávila expressed he liked the 2002 Toyota Camry.
Duluc, Ayala-Dávila and another unknown male stepped away from the victim’s vehicle and started planning how to take the vehicle and keep it for themselves. Ayala-Dávila went into his apartment and grabbed a .40 caliber Smith & Wesson pistol. Thereafter, Duluc, Ayala-Dávila and others took the victim’s car by force. Duluc drove the victim’s vehicle with victim in the front passenger seat, and Ayala-Dávila sat in the rear right passenger seat behind victim.
Duluc eventually drove the victim’s vehicle to the Banco Popular Branch located at Plaza Escorial shopping center, along with Ayala-Dávila and the victim. He parked the vehicle in Banco Popular’s parking lot. Ayala-Dávila requested the victim’s ATM card and the PIN number. The victim complied and gave the ATM card and PIN number to Duluc, who went to the ATM machine and withdrew $150.00.
Once the money was withdrawn, Duluc departed the Banco Popular Branch along with the victim and Ayala-Dávila. Duluc drove towards Trujillo Alto, PR, stopping in a rural area between Trujillo Alto and Carolina. Ayala-Dávila told the victim to step out to verify whether the vehicle had a flat tire. The victim and Ayala-Dávila exited the vehicle. The victim verified the front right tire of the vehicle and, as he turned around in the direction of Ayala-Dávila, Ayala-Dávila produced the pistol, pointed it at the victim’s head and fired one shot. The victim died as a result of this gunshot wound.
After shooting the victim, Ayala-Dávila got into the front right passenger side of the victim’s vehicle, and Duluc drove them back to LDPHP. Ayala-Dávila proclaimed that the victim’s vehicle belonged to him because he had been the one who killed the victim.
“The senseless crime that these men committed had fatal consequences,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Ayala-Dávila’s guilty plea brings us a step closer to bringing justice and closure to the victim and his family.”
The sentencing hearing is scheduled for August 26, 2015. The case is being prosecuted by Assistant U.S. Attorney Julia Díaz-Rex.
Victor Miguel Duluc-Méndez pled guilty on May 1st, 2014; his sentencing is scheduled for June 25, 2015. He faces a sentence of 30 years.
Individual Found Guilty of Drug TraffickingRead the Press Release
SAN JUAN, P.R. – After a five-day jury trial, Leoner Martínez-Lantigua was found guilty of conspiracy to possess with intent to distribute cocaine, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Judge Francisco Besosa presided over the trial. Five other co-conspirators had already pled guilty and are awaiting sentence. Defendant Erasmo Martínez-Trinidad remains a fugitive.
According to the indictment, throughout July of 2014, the defendant, along with others, intentionally combined, conspired and agreed to possess with intent to distribute more than 41 kilograms of cocaine.
During trial, the government presented video, audio, and telephone recordings of a Homeland Security Investigations undercover operation to transport 48 kilograms of cocaine from St. Thomas, U.S. Virgin Islands, to Puerto Rico for distribution and sale. The complex conspiracy involved numerous players with various roles, bags filled with U.S. currency, maritime coordination, and firearms. A jury heard lay and expert testimony at trial that proved Leoner Martínez-Lantigua’s willful participation and knowing involvement in the conspiracy.
“This conviction marks yet another victory in our fight against narcotics in Puerto Rico. Our team of prosecutors and case agents set an excellent example of teamwork during the investigation which led to the conviction of this defendant at trial,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case was prosecuted by Assistant United States Attorneys Aaron Howell and Luke Cass. Martínez-Lantigua faces a maximum penalty of up to life imprisonment. The now convicted defendant also faces forfeiture of a white Nissan Altima and a money judgment. The sentencing is scheduled for August 26, 2015 and the defendant was remanded to the custody of the U.S. Marshals.
Indiana Man Pleads Guilty to Perjury for Providing False TestimonyRead the Press Release
A Carmel, Indiana, resident pleaded guilty today to perjury today in the U.S. District Court in Cleveland, Ohio, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio.
According to the indictment, court documents and statements made at the court proceeding, Alexander Krivozus committed perjury by testifying falsely during the course of a federal grand jury investigation of Cleveland resident, Edward Gurary, who ultimately pleaded guilty in March 2011 to one count of filing a false income tax return on which he wilfully failed to report his Swiss bank accounts. As part of the investigation, bank records indicated that Gurary directed UBS AG to wire funds from his undeclared Swiss bank account, which was held in the name of a nominee Bahamian entity, and requested that confirmations of the transfers be sent to a U.S. fax number in the (317) area code. The investigation established that the fax number was associated with Krivozus. He was subpoenaed to testify before the federal grand jury and testified falsely.
Krivolus faces a statutory maximum sentence of five years in prison and a $250,000 fine for the perjury offense. A sentencing date has not yet been scheduled.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Dettelbach commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Richard M. Rolwing of the Tax Division and Assistant U.S. Attorney Robert Patton of the Northern District of Ohio, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Hurricane man pleads guilty in federal court to obstruction of justiceRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who sold heroin to a confidential informant on multiple occasions in 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Tayvon Mykal Gaulds, 21, entered a guilty plea in federal court in Huntington admitting that he distributed heroin.
On November 12, 2014, Gaulds arranged to sell heroin to a confidential informant working at the direction of the Huntington FBI Drug Task Force. Gaulds met the informant in the 1800 block of 9 1/2 alley in Huntington and sold the informant approximately 5 grams of heroin in exchange for $650. Gaulds also distributed heroin to the informant on two other occasions in Huntington.
Gaulds faces up to 20 years in federal prison, and is scheduled to be sentenced on August 24, 2015.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Huntington man pleads guilty to distributing heroinRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who sold heroin to a confidential informant on multiple occasions in 2014 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Tayvon Mykal Gaulds, 21, entered a guilty plea in federal court in Huntington admitting that he distributed heroin.
On November 12, 2014, Gaulds arranged to sell heroin to a confidential informant working at the direction of the Huntington FBI Drug Task Force. Gaulds met the informant in the 1800 block of 9 1/2 alley in Huntington and sold the informant approximately 5 grams of heroin in exchange for $650. Gaulds also distributed heroin to the informant on two other occasions in Huntington.
Gaulds faces up to 20 years in federal prison, and is scheduled to be sentenced on August 24, 2015.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Houston Man Sentenced on Drug ChargesRead 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 Ricardo Garza, 52, of Houston, TX, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and 100 kilograms or more of marijuana, was sentenced to 151 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that between January 2010 and December 9, 2011, the defendant conspired with James Leon, Richard Himbury, Daniel Garza and others, to distribute cocaine and marijuana. Garza supplied the drugs to James Leon who then redistributed them to Himbury and others.
On November 15, 2011, Special Agents with the Drug Enforcement Administration and members of the Southern Tier Regional Drug Task Force executed a search warrant at James Leon's residence in State Route 394 in the Town of Coldspring, NY. Officers found a grocery bag full of marijuana in the living room and a canister containing approximately four ounces of cocaine in the bathroom, as well as scales used to measure quantities of controlled substances.
Richard Himbury was arrested on November 15, 2011. Agents then searched his residence on St. Amelia Drive in Tonawanda, NY and located approximately eight kilograms of cocaine, 100 pounds of marijuana and $100,000.00 in United States currency. Himbury stated to the agents that one of his sources of supply was James Leon adding that Leon's source of supply for cocaine and marijuana was a Mexican male, later identified as Ricardo Garza.
James Leon, Richard Himbury, and Daniel Garza have been convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Golden Grove Prisoner Sentenced to 34 Months for Possession of Prison ContrabandRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis, on May 22, 2015, sentenced Gregoire George, 37, to 34 months in prison for Possession of Prison Contraband, United States Attorney Ronald W. Sharpe announced. Judge Lewis ordered George to serve the sentence consecutively to the sentence he was serving at the time he committed the offense.
Following a three-day jury trial, George was convicted of two counts of Possession of Prison Contraband and one count of Promoting Prison Contraband. Evidence presented at trial established that on June 14, 2013, while an inmate at the Golden Grove Adult Correctional Facility on St. Croix, George possessed a cell phone and a homemade knife or “shank” inside his cell. Virgin Islands Bureau of Corrections (BOC) officers found both items during a search of the facility.
“Contraband in prison threatens the safety and security of inmates, employees, and the community as a whole,” U.S. Attorney Sharpe said. “Cell phones, in particular, can be used to facilitate criminal activity inside and outside of Golden Grove including narcotics distribution and murder.”
George was sentenced to 34 months in prison for possessing a shank, 10 months for possessing a cell phone, and 12 months for promoting prison contraband, all to be served concurrently.
The case was investigated by the United States Drug Enforcement Administration and BOC. It was prosecuted by Assistant U.S. Attorney Rami S. Badawy.
Former Teacher Sentenced to Federal Prison on Child Pornography ConvictionsRead the Press Release
HOUSTON – Derrick Gossett, 34, of Humble, has been ordered to prison following his convictions on two counts of production of child pornography, announced United States Attorney Kenneth Magidson. At the time of the offense, he was a music teacher at Anderson Elementary School in the Spring Independent School District (ISD). Gossett pleaded guilty Aug. 4, 2014.
Today, U.S. District Judge Lynn Hughes handed Gossett a sentence of 15 years in federal prison to be immediately followed by 15 years of supervised release. He will also be ordered to register as a sex offender.
According to court records, Gossett used a Facebook profile he developed based on a former female student to solicit sexually explicit photographs that constituted child pornography from more than 150 young males. Gossett regularly used images he received from victims to extort additional images/videos containing child pornography. Not only did Gossett use the biographical information of a former student to elicit the child pornography images/videos from his victims, he created a fictitious woman “Katya” to communicate with and further manipulate the children. Victims have been identified throughout Texas, across the United States and in several foreign countries.
“While the Internet is a wonderful tool for connecting with others it can also a very dangerous place, especially for children,” said Magidson. “Adults, parents, older siblings and caregivers need to be vigilant in their efforts to protect our children online. We need to teach them about these dangers and what information should and should not be shared via the Internet.”
Authorities obtained a search warrant for Gossett’s residence, at which time authorities seized a laptop computer, several thumb drives, cell phones and digital cameras. One external portable hard drive, found in a lock box inside Gosset’s residence, was forensically analyzed and contained hundreds of files with images depicting different young males, ranging in age from I2 to I7 and in various stages of undress.
Gossett will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Harris County Precinct 4 Constables Office, Homeland Security Investigations and the Houston Metro Internet Crimes Against Children Task Force with the assistance of the Spring ISD Police Department. The matter was brought as part of 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."
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
Former IRS Employee Sentenced to 24 Months for Tax FraudRead the Press Release
OAKLAND – Valorie Shaw was sentenced to 24 months in prison and ordered to pay restitution of $309,834 for conspiring to file false claims, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Shaw, 38, of Oakland, pleaded guilty on January 23, 2015, to conspiracy to file false claims. Shaw was employed as a tax return preparer at “Kwiktax” for three years. Prior to working at Kwiktax, she held a variety of jobs, including working as a document transporter for the IRS. During 2011 and 2012, Shaw prepared false tax returns that she filed with the IRS. The purported filers listed on those tax returns were not entitled to tax refunds because the wage and tax withholding information listed on the returns were fictitious. Shaw also filed false W-2 information that stated the purported filers worked for the employers listed on the W-2s, even though she knew the information was false. Shaw filed the false tax returns using personal information she obtained illegally. Specifically, Shaw used personal identifying information of Kwiktax clients, including their names, dates of birth, and Social Security numbers, without these victims’ knowledge.
During 2011, Shaw assisted in filing false tax returns requesting refunds in an amount no less than $487,248, for the 2010 tax year. During 2012, Shaw assisted in filing false tax returns requesting refunds totaling $495,789 for the 2011 tax year.
Shaw was indicted on August 14, 2014. She was charged with conspiracy to file false claims, in violation of 18 USC § 286. Shaw pleaded guilty to that charge. The Honorable Jon Tigar, U.S. District Judge, imposed the sentence. Judge Tigar also ordered Shaw is to surrender on September 18, 2015, to begin serving her sentence.
Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former Fresno Resident Pleads Guilty to Fraudulent Bonding Scheme Involving Government ContractsRead the Press Release
FRESNO, Calif. — Abel Martin Carreon, 57, formerly of Fresno, pleaded guilty today to one count of mail fraud and one count of aggravated identity theft in connection with a scheme involving surety bonds and government contracts, United States Attorney Benjamin B. Wagner announced
According to court documents, between April 2005 and May 2011, Carreon devised and executed a scheme to defraud the United States and private companies seeking to perform contracted work for the United States. Through his company Tripartite Escrow Corporation (TEC), he offered bonding services to prospective government contractors throughout the United States that included bid bonds to secure a bid on a government contract and performance and payment bonds to insure the work on a government contract.
Surety bonds are required for certain federal government contracts. If a contractor defaults, the surety bonds compensate the government for the financial loss incurred. To be acceptable under federal regulations the bonding company must pledge acceptable assets with a value equal to or exceeding the amount of each bond, and submit a sworn affidavit disclosing the identity of the surety and verifying the existence and acceptability of the assets under penalty of prosecution.
According to the plea agreement, the bond packages Carreon submitted contained false statements and fraudulent documents. He pledged as collateral common stock that did not exist, was substantially less than represented, or was pledged across multiple bonds without full disclosure. He used forged notary stamps and notary signatures and other forged signatures on the bond documents.
Once the false and fraudulent performance and payment bonds were accepted by the contracting government agency and work began under the contract, the government would make payments on the contract to the contractor, including Carreon’s bond premium. The United States and government contractors paid Carreon for false and fraudulent payment and performance bonds, which resulted in a loss of approximately $1,253,000.
Department of Interior, Office of Inspector General Special Agent-In-Charge, David House stated: “This guilty plea represents the Department of Interior's, Office of Inspector General's commitment to pursue fraud involving the Department’s programs and operations.”
“As evidenced by the guilty plea entered into today by Mr. Abel Carreon, we remain steadfast in our commitment to maintaining the integrity of projects funded through Federal Highway Administration programs,” said William Swallow, regional Special Agent-in-Charge of USDOT’s Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
"We remain committed to fighting white collar crime affecting the United States and the General Services Administration," said U.S. General Services Administration Acting Inspector General Robert C. Erickson.
“The Department of Homeland Security (DHS), Office of Inspector General’s (OIG) highest priority is to ensure the integrity of the Department’s programs and operations. Today’s guilty plea by Abel Martin Carreon reaffirms the DHS OIG’s commitment to aggressively pursue, investigate, and hold accountable those who commit fraud against the Federal Emergency Management Agency. Such egregious violations will not be tolerated. The DHS OIG, our law enforcement partners, and the U.S. Attorney’s Office will continue to work tirelessly to bring justice to those who commit such fraud,” stated Roger T. Merchant, Special Agent-in-Charge, Los Angeles Field Office.
“America's Warfighters deserve the very best to perform their jobs and the taxpayers expect nothing less. Fraud committed by defense contractors not only takes away precious resources necessary for the protection of our brave solders, airman and marines, it also undermines the confidence of the American public who demand that tax dollars are used responsibly. This investigation should serve as a warning for those intent on defrauding the U.S. military and American public that the Defense Criminal Investigative Service (DCIS) and our law enforcement partners will pursue these crimes relentlessly,” said Chris Hendrickson, Special Agent in Charge, DCIS, Western Field Office.
This case is the product of an investigation by the U.S. Department of Transportation, Office of Inspector General; the Department of Interior, Office of Inspector General; the Department of Defense, Office of Inspector General; the U.S. Army, Criminal Investigation Division; the U.S. Air Force, Office of Special Investigations; the U.S. Department of Agriculture, Office of Inspector General; the Department of Homeland Security, Office of Inspector General; and the General Services Administration, Office of Inspector General. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Carreon is scheduled to be sentenced on August 17, 2015, by United States District Judge Anthony W. Ishii. Carreon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud and a mandatory consecutive sentence of two years in prison for aggravated identity theft.
Former Employee Pleads Guilty to Bribing DeKalb and Georgia World Congress Center OfficialRead the Press Release
ATLANTA - Cecil K. Clark has pleaded guilty to conspiracy to commit bribery of a public official while working for a janitorial services company from 2006-2010.
“Clark attempted to circumvent the process which provides companies an opportunity to bid fairly on government contracts, and in doing so his scheme exposed a corrupt public official who was willing to put his own interests above those of the taxpayers he served,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This plea clearly illustrates that the FBI will pursue not only those public officials engaged in corrupt activities but also those individuals who entice or otherwise conspire with those officials in their corrupt and criminal activities. The FBI considers public corruption as a priority investigative program and asks that anyone with information regarding such matters to contact their nearest FBI field office.”
“When bidding on government contracts, there are strict guidelines and processes that must be followed. Clark utilized a corrupt public official to obtain a lucrative contract without following the law and is now being held accountable,” said Vernon Keenan, Director of the Georgia Bureau of Investigation.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Cecil Clark worked for a company, identified as “Company A,” that sought to do business with both DeKalb County and the Georgia World Congress Center (GWCC). Clark facilitated payments through his company to provide a public official a furnished luxury apartment in Atlanta, Georgia. The official who lived in the apartment was Patrick Jackson.
Jackson was simultaneously employed by both DeKalb County and the GWCC as the manager of janitorial services from approximately 2006-2012. Jackson did not disclose to either employer that the company Clark worked for, Company A, provided him with an apartment. In exchange for the apartment, Jackson used his position as a public official to benefit the interests of Company A in its business dealings with DeKalb County and the GWCC. Jackson previously pleaded guilty to accepting the bribes and is scheduled for sentencing on July 16, 2015 at 9:30 a.m.
Sentencing for Cecil K. Clark, 55, of Jonesboro, Georgia, is scheduled for July 31, 2015, at 9:30 a.m., before United States District Judge William S. Duffey Jr.
This case is being investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant United States Attorneys Jamie L. Mickelson and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Attorney for Home Health Care Company Admits Stealing over $2.6 Million from His EmployerRead the Press Release
TRENTON, N.J. – The former in-house counsel of an Ocean County, New Jersey-based home health care company today admitted using his attorney trust account to steal over $2.6 million from his employer, U.S. Attorney Paul J. Fishman announced.
Matthew S. Neugeboren, 39, of Manalapan, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of wire fraud and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
From 2006 through 2013, Neugeboren was in-house counsel for Company A, a home health care company in Ocean County. As such, Neugeboren maintained an attorney trust account to pay for Company A’s expenses. To cover those expenses, Neugeboren requested checks and wire transfers be made from Company A’s bank accounts into his attorney trust account.
As part of the scheme, Neugeboren caused Company A to transfer more money into his attorney trust account than was necessary to cover company expenses. Neugeboren admitted that he used the additional money for his personal benefit, including gambling. Neugeboren admitted that from January 2008 through December 2012, he stole approximately $2,644,911.91 from Company A.
In addition to the wire fraud scheme, Neugeboren knowingly and willfully filed a false tax return that failed to include approximately $630,000 in gross income that he received in calendar year 2011 from his scheme to defraud Company A.
The wire fraud count to which Neugeboren pleaded guilty is punishable by a maximum penalty of 20 years in prison. The false tax return count is punishable by a maximum penalty of three years in prison. Both charges carry a maximum fine of $250,000. Neugeboren has already returned some of the money from the scheme. As part of his plea agreement, he must pay remaining restitution in the amount of $1,404,962.91. Sentencing is scheduled for Sept. 3, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Justin P. Walder Esq., Roseland, New Jersey
Federal Judge Hands Down Lengthy Prison Terms to Leaders of Operation Wax House Mortgage & Investment Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Today, Senior U.S. District Judge Graham C. Mullen sentenced four defendants involved in mortgage and investment fraud schemes codenamed “Operation Wax House,” including three of the conspiracy’s leaders, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina.
Judge Mullen sentenced James Tyson, Jr., 34, of Charlotte, to 30 years in prison, Carrie Tyson, 61, of Winterville, N.C., to 18 years in prison, Victoria Hunt, 36, of Rockville, Maryland, to 8 years in prison, and Vonetta Tyson Barnes, 41, of Mililani, Hawaii, to 30 days in prison. Each defendant was also sentenced to serve a term of three years supervised release.
Tyson, Jr., his mother, Carrie Tyson, and Victoria Hunt are three of the leaders of the Racketeering Influenced Corrupt Organization (RICO) (the “Enterprise”) which operated in Mecklenburg and Union Counties from approximately 2005 until the defendants were arrested in 2012. A fourth leader, Ramin Amini, remains a fugitive. The Enterprise was responsible for a mortgage fraud and an investment fraud scheme that collectively defrauded victims of more than $75 million.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join Acting U.S. Attorney Rose in making today’s announcement.
“As leaders of the racketeering conspiracy, James Tyson, Jr., Carrie Tyson and Victoria Hunt were single-handedly responsible for the financial hardships so many of their victims have suffered. In many instances, the victims knew and trusted the defendants, only to find themselves conned out of their money and left to deal with the devastating consequences of the fraud. Today’s lengthy sentences deliver a heavy dose of justice to the masterminds of a vast scheme that has been financially and psychologically devastating for so many individuals,” said Acting U.S. Attorney Rose.
“More than sixty people, from all walks of life, were cheated out of their hard earned money by those involved in these complex fraud schemes. Today’s sentencings represent the leaders of this vast racketeering enterprise which utilized mortgage fraud and high yield investment schemes to enrich themselves at a time our country was facing a tenuous economic future. The numerous convictions stemming from this long term investigation are proof of the FBI’s commitment toward holding accountable all those who put our nation’s economy at risk,” said John Strong, Special Agent in Charge of FBI Charlotte.
“The brazen, sustained criminal activity perpetrated by these defendants lasted for years, and demanded the attention of IRS Criminal Investigation and our law enforcement partners. While the short-term gains of a financial crime wave such as this may appear enticing, the necessary consequences reflected in today’s sentencings are now their long-term reality,” said Thomas J. Holloman III, Special Agent in Charge of IRS-CI.
According to filed court documents, evidence presented at trials, and statements made in court proceedings, including during today’s hearings:
The Enterprise, led by the three defendants sentenced today, stole approximately $27 million from victims as part of its investment operations and approximately $48 million in loans from financial and lending institutions as part of its mortgage fraud operations.
James Tyson, Jr.
In court today, prosecutors described defendant Tyson, Jr. as the leader of the leaders, the most culpable person in the RICO Enterprise, and the most culpable of the 91 defendants charged as part of Operation Wax House. Tyson led the Enterprise in all aspects of its operations, including its investment fraud, its mortgage fraud, and its money laundering operations as well as a conspiracy to distribute marijuana. At today’s court hearing, prosecutors described Tyson, Jr. as the linchpin of the multiple interwoven illegal schemes carried out by the Enterprise.
The Enterprise defrauded $27 million from victims as part of its investment operations, using a series of sham corporations to steal from individual investor-victims. When the fraud associated with one sham corporation was discovered, the Enterprise would create another sham company with a different co-conspirator serving as the public front of the company, so that it could continue to steal money from unsuspecting investor victims. As the leader, Tyson, Jr. was involved in creating and running each of the various sham companies used by the Enterprise to steal money from victims, and he was directly involved in stealing nearly $19 million from more than 60 individual victims.
When the Enterprise could not find victims who had money to invest, the conspirators induced individuals to become “credit” investors. In exchange for handing over their personal information and good credit to the Enterprise, the victims were falsely told that the loan payments would be made for them and they would receive investment returns. The Enterprise then took loans out in these victims’ names, kept the loan proceeds, and ultimately left the victims with thousands of dollars of debt.
In addition to the investment fraud scheme, Tyson, Jr. personally engaged in at least 18 different mortgage fraud transactions, resulting in loses to financial and lending institutions of more than $11 million. Tyson, Jr. received more than $2.3 million of the fraudulent proceeds from those mortgage fraud transactions, including more than $1.5 million of fraudulent proceeds from financial institutions.
Tyson, Jr. pleaded guilty to racketeering (RICO) conspiracy, securities fraud, mortgage fraud, wire fraud, money laundering conspiracy and bank bribery conspiracy. As part of the RICO conspiracy, Tyson Jr. pleaded guilty to the predicate act of conspiracy to distribute marijuana. Prosecutors noted that Tyson, Jr. arranged truckloads of marijuana from Texas and elsewhere to be transported to North Carolina, distributing hundreds of pounds of marijuana. Tyson, Jr. also admitted to paying bribes of $7,500 to $30,000 to a bank employee in exchange for bogus letters of credit that he and his co-conspirators tried to leverage to fraudulently induce other victims.
In announcing today’s sentence of Tyson, Jr., Judge Mullen described the defendant as the “apex of this pyramid of criminal activity.” Tyson, Jr. has been in custody since he was arrested on October 21, 2012, returning from Senegal, where he was operating the Enterprise’s last fraud company, PEI, a purported import-export business.
Carrie Tyson
Carrie Tyson was also a leader of the Enterprise, and, in some instances, mentored the conspirators on how to operate the various schemes. For example, Carrie Tyson created and served as President of one of the first companies the Enterprise used to steal money from victims, “Brighton Developers,” falsely promising investor-victims that their investments were secured by lots of land. When the terms of those investment contracts expired, Carrie Tyson wrote more than a million dollars in checks on an account which she knew had a negative balance. In total, Carrie Tyson was directly involved in defrauding at least 14 victims out of at least $1.3 million. Carrie Tyson was also a leader of the Enterprise’s mortgage fraud operations, participating in at least five different mortgage fraud transactions, resulting in losses of more than $4 million. Carrie Tyson’s husband, James Tyson, Sr., was charged and previously sentenced to 37 months in prison for his role in the scheme. Carrie Tyson pleaded guilty to RICO conspiracy in November 2013.
In announcing today’s sentence of Carrie Tyson, Judge Mullen noted that Carrie Tyson was “among the worst” of the defendants. Carrie Tyson has been in custody since September 2013, when she was found to have been in violation of her conditions of release.
Victoria Hunt
Victoria Hunt was the third leader of the Enterprise, who handled the Enterprise’s investment fraud and money laundering operations. Hunt served as Vice President and then CEO of “Sovereign Equity Group” and CEO of “Prestige Capital” and the “Elite Automotive” card dealership, which were used by the Enterprise to steal money from individual victims. Hunt targeted her friends and professional acquaintances to invest in the Enterprise’s sham businesses. In total, Hunt, working with Tyson, Jr., defrauded more than 60 victims of more than $19 million. Hunt also participated in the Enterprise’s mortgage fraud operations, providing down payment money for at least two transactions which resulted in losses of more than $2 million. Hunt pleaded guilty to RICO conspiracy, securities fraud, mortgage fraud, wire fraud and money laundering conspiracy in January 2013. Following the sentencing hearing, Hunt was released on bond. She will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
Vonetta Tyson Barnes
Vonetta Tyson Barnes, Carrie Tyson’s daughter, was a promoter in the Enterprise’s investment fraud operations. She served as the President of “Sovereign Equity Group” after her brother, Tyson, Jr., stepped down. Barnes also created another sham company, “Inspiron Holdings,” used by the Enterprise to steal money from victims. In total, Barnes was involved in stealing nearly $900,000 from approximately 16 victims. She pleaded guilty in September 2013 to one count of RICO conspiracy. Following the sentencing hearing, Barnes was released on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
All federal sentences are served without the possibility of parole.
These convictions are the latest in Operation Wax House, an investigation which began in 2007. Of the 91 individuals charged, 89 defendants have either pleaded guilty or have been convicted following trial. The two remaining defendants are international fugitives. Of the 89 defendants convicted, five remain to be sentenced in the coming months.
Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI and the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, along with the Securities Division of the North Carolina Secretary of State with respect to a separate prosecution. The Operation Wax House prosecution is being handled for the government by Assistant United States Attorney Maria K. Vento.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
District Real Estate Agent/Broker Pleads Guilty to Embezzling over $100,000 of Clients' MoneyRead the Press Release
WASHINGTON – Mark Alan Wall, 57, a real estate agent and broker from Washington, D.C., pled guilty today to a theft charge stemming from the embezzlement of over $100,000 of his clients’ money, announced Acting U.S. Attorney Vincent H. Cohen, Jr., and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Wall pled guilty to first-degree theft in the U.S. District Court for the District of Columbia. He appeared before the Honorable Amy Berman Jackson. The plea carries a potential sentence, under federal guidelines, of six to 24 months in prison, $117,000 in restitution, $5,000 in fines and $100 to $5,000 in assessments. A status hearing was set for Aug. 4, 2015.
According to the government’s factual proffer, from about July 2010 to at least May 2013, Wall stole from real estate clients who had entrusted their money to him. He entered into agreements with clients to serve as their agent in purchasing residential property in the District of Columbia. The agreements stated that the clients would not be paying Wall an advance fee, nor did they agree to pay him a percentage of the purchase price. Instead, as in an arrangement typical of residential real estate sales of existing homes, Wall would be paid his commission by the seller of the property upon the completion of the transaction.
Wall convinced his clients to provide as their earnest money deposit an amount of money greater than typically used, saying that he would hold it in escrow for their benefit to demonstrate that they had sufficient money to close on future sales. He assured his clients that the money remained theirs unless and until they purchased a property. If the clients were unable to quickly succeed with an offer to purchase a home, Wall convinced them to deposit additional money telling them that it would strengthen their negotiating power for future offers.
As a licensed real estate agent and broker, Wall had a fiduciary duty to keep earnest money deposit client funds in a separate escrow bank account. Agents/brokers may not commingle the escrow funds with their own funds, use the escrow funds for a purpose other than the purpose for which they were entrusted to them, or fail to return the money when directed by the client.
Wall deposited the clients’ earnest money deposit checks into his operating account, rather than his escrow account. If the clients became dissatisfied with him and asked about their money, he assured them that their earnest money deposit money was maintained in an escrow account held at a federally insured bank. Wall did not maintain his clients’ money for their benefit; rather, he spent their money on himself and his expenses within a few weeks or months of receiving the funds. He also borrowed money from another person, falsely representing that he needed money to pay expenses of a real estate closing; having received the money, Wall used the money to replace the money he had stolen from clients in order that the settlement on their District of Columbia home may proceed. After the closing on the home, Wall falsely stated that the settlement did not occur and that buyers were forced to file a law suit against the sellers of the property. He did not repay the loan.
In announcing the plea, Acting U.S. Attorney Cohen and Chief Lanier expressed appreciation for the work performed by detectives from the Metropolitan Police Department’s Criminal Investigation Division-Financial Crimes Section as well as by Special Agent Juan Juarez of the Fraud and Public Corruption Section of the U.S. Attorney’s Office. They also acknowledged the efforts of Paralegal Specialists Kristy Penny and Corinne Kleinman, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
District Man Found Guilty of First-Degree Murder, Conspiracy, Obstruction of Justice and Other Charges for Plot to Kill VictimRead the Press Release
WASHINGTON – Jarod Yorkshire, 21, of Washington, D.C., was found guilty by a jury today of conspiracy, first-degree murder while armed, and related charges in the December 2011 killing of a man in Northeast Washington. The jury also returned guilty verdicts on three counts of obstruction of justice, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. Yorkshire faces more than 100 years in prison at his sentencing on July 24, 2015 before the Honorable Jennifer Anderson.
At trial, the evidence established that on Dec. 16, 2011, the victim, Derrick Ragland, 19, orchestrated a sham gun sale with Jarod Yorkshire and his co-defendant, Raymond Faunteroy. The gun sale was a ruse, and masked men fired at both Yorkshire and Faunteroy, grazing Faunteroy in the hand. The two men then hatched a plot to gain revenge against Mr. Ragland.
Three days later, on Dec. 19, 2011, Yorkshire encountered Mr. Ragland at a home in the 1000 block of Taussig Place NE. He texted and called Faunteroy a total of 29 times prior to the murder to alert him to Mr. Ragland’s whereabouts. Yorkshire and two witnesses then entered a vehicle that began to drive around the neighborhood. According to the government’s evidence, Faunteroy ambushed the victim from behind, shooting him seven times in the back as Mr. Ragland ran for his life down an alley in the 1000 block of Taylor Street NE before collapsing in a neighbor’s yard. Despite the best efforts of emergency personnel, Mr. Ragland later died of his wounds.
Immediately following the shooting, Yorkshire and Faunteroy spoke seven more times by phone as Yorkshire directed the driver of the vehicle to Faunteroy’s location. According to the government’s evidence, Faunteroy confessed to the murder upon entering the vehicle, and then directed the driver to drop him off at a location away from the crime scene. Cellular tower records demonstrated that both Yorkshire and Faunteroy were in the vicinity of the murder at the time it occurred.
Following the murder, Yorkshire began a campaign of witness intimidation and obstruction of justice. He instructed one witness to refuse to cooperate with police in the homicide investigation and resulting court proceedings; corruptly persuaded another witness to provide false information to a defense investigator in an attempt to be called as a witness at trial to provide knowingly false testimony; and finally agreed in a recorded call with a police informant to cooperate in a scheme to kill a government witness.
Faunteroy, 29, is awaiting trial in the case.
In announcing the verdict, Acting U.S. Attorney Cohen recognized the efforts of the detectives, evidence technician, and officers who investigated the case for the Metropolitan Police Department, as well as the Special Agent from the FBI who provided expert testimony concerning cellular site evidence concerning the whereabouts of the defendant. He also commended the work of Assistant U.S. Attorneys Glenn Kirschner and Michael Spence, who tried the case, as well as Assistant U.S. Attorneys Jennifer Kerkhoff and Emily Miller and former Assistant U.S. Attorney Reagan Taylor, who investigated and indicted the case, and finally the work of Paralegal Specialists Meridith McGarrity and Lashone Samuels, Litigation Technology Specialist Leif Hickling, and Investigative Analyst Zachary McMenamin.
Detroit men sentenced for roles in heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – Two Michigan men who were part of a conspiracy that funneled large quantities of heroin from Detroit to Huntington between 2012 and 2014 were sentenced to federal prison today, announced U.S. Attorney Booth Goodwin. Robert Lamar Payne, 31, of Detroit, was sentenced to 87 months in federal prison and Derrick Wayne Goodwin, 25, also of Detroit, was sentenced to 74 months in federal prison. Both men previously pleaded guilty in federal court in Huntington in February of 2015 to possession with intent to distribute 100 grams or more of heroin.
Payne admitted that from 2012 to 2014, he conspired with others to distribute heroin from Detroit in the Huntington area. Members of the conspiracy used multiple Huntington residences to store, prepare and distribute the drugs.
Payne and Goodwin also used an apartment at 1002 12th Avenue in Huntington as a base for distribution. In February of 2014, a confidential informant made multiple purchases of heroin from Payne from that apartment. On February 13, 2014, agents executed a search warrant at the apartment and seized approximately 41 grams of heroin and two firearms. That same day, agents searched a room at the Super 8 Motel on 16th Street Road in Huntington where they found Payne and Goodwin with approximately 200 grams of heroin.
The Huntington FBI Drug Task Force conducted the investigation with assistance from the Huntington Police Department Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Colombian National Pleads Guilty to Conspiracy to Commit Money LaunderingRead the Press Release
A Colombian national who recently was extradited from Mexico, pleaded guilty today in federal district court in Dallas, to conspiracy to launder monetary instruments, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration.
Tito Miller Parra-Isaza, 45, a Colombian national, entered his guilty plea before U.S. Magistrate Judge Renee H. Toliver of the Northern District of Texas. He will be sentenced at a later date.
According to a factual stipulation filed with the court, Parra-Isaza’s role in the conspiracy was to coordinate the deposit of bulk cash, which he knew to be the proceeds of drug smuggling, into financial institutions in Mexico and elsewhere. In furtherance of the conspiracy, this bulk cash was later wire transferred to bank accounts in Dallas. The funds then were transported to Panama and elsewhere to distribute to individuals involved in drug smuggling.
Two other defendants charged in this case previously entered guilty pleas. Of the remaining charged defendants, one is in Mexican custody, two are fugitives and one is deceased.
This case is being investigated by the DEA. The case is being prosecuted by Trial Attorneys Mark Irish and Nicole Grosnoff of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Criminal Division’s Office of International Affairs also has provided substantial assistance.
Parra-Isaza Plea Agreement
Cleveland man convicted of heroin, cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – LeDon Gaither, 38, of Cleveland, Ohio, was convicted of heroin and cocaine trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Gaither engaged in a coordinated effort to transport heroin and cocaine across state lines from Cleveland, Ohio into Northern West Virginia. He then collaborated with other individuals to distribute and sell the drugs in Ohio and Marshall Counties.
Gaither pled guilty today to one count of “Conspiracy.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force and the Marshall County Drug and Violent Crime Task Force, both HIDTA-funded initiatives, investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Burtonsville Man Sentenced to over 9 Years in Prison for the Armed Robbery of a Convenience StoreRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Donnell Edward Harris, age 22, of Burtonsville, Maryland, today to 117 months in prison, followed by five years of supervised release, for robbing a convenience store in Waldorf, Maryland, and to brandishing a gun during the robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Charles County Sheriff Troy Berry.
According to Harris’ plea agreement, on September 11, 2013, Harris, Charles Johnson and Madani Tejan robbed a convenience store on St. Ignatius Drive in Waldorf. Harris brandished a firearm during the robbery and the conspirators forced the store employee at gunpoint to open the store’s cash register. The robbers stole $90 in cash and several packs of cigarettes.
Harris also admitted that after he was arrested for the robbery and while he was incarcerated, he threatened to hurt co-conspirator Charles Johnson if Johnson did not lie to law enforcement by stating that he (Johnson) had brandished the firearm during the robbery.
Johnson, age 21, of Beltsville, Maryland, and Madani Ilara Tejan, age 33, of Upper Marlboro, Maryland, previously pleaded guilty to the robbery, and were sentenced to 51 months in prison and 68 months in prison, respectively.
United States Attorney Rod J. Rosenstein commended the ATF, Montgomery County Police Department and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Daniel Gardner, who prosecuted the case.