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26 May 2015
Bloomsburg Man Sentenced for Distribution of Controlled Substance Analogue and Money LaunderingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Chief Judge Christopher C. Conner sentenced Adam N. Riegel, age 25, of Bloomsburg, Pennsylvania today to three years’ probation with eight months’ home confinement for conspiracy to distribute and distribution of the controlled substance analogue, 5-flouro-PB-22, and money laundering of proceeds from the distribution of that substance. Riegel was also ordered to forfeit $25,000 cash.
According to United States Attorney Peter Smith, Riegel conspired with other persons between September 2013 through February 20, 2014, to distribute 5-flouro-PB-22. Riegel deposited $52,000 in proceeds of that offense on February 20, 2014, at the Service 1st Credit Union in Danville, Pennsylvania. Riegel was charged in August 2014 and pled guilty in January 2015 pursuant to a plea agreement filed on December 23, 2014.
The case was investigated by the Danville Borough Police Department, the Mahoning Township Police Department, and the Federal Bureau of Investigation, Philadelphia Division. Prosecution of this matter was prosecuted by Assistant United States Attorney George J. Rocktashel.
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Big Fork Man Sentenced for Killing Three Grizzly BearsRead the Press Release
MISSOULA – Dan Wallen, 34, of Bigfork, Montana was sentenced today to $15,000 in restitution, and three years of probation for shooting three grizzly bears at his residence near Bigfork, Montana. Wallen is also required to serve sixty days of his sentence in a pre-release center. United States Magistrate Judge Jeremiah Lynch sentenced Wallen after finding him guilty following a bench trial in March 2015, of three counts of Unlawfully Taking a Threatened Species.
In spring 2014, several grizzly bears were reported in residential areas, which caused state wildlife officials to place electric wire around chicken coops and set traps to relocate bears in the Bigfork, Montana area. The bears had become habituated to human food sources, including dog food, bird feed, chicken feed, and unsecured garbage cans in the area. The bears that Wallen killed had attacked several of Wallen’s chickens the previous night and returned to the chicken coop on the evening of May 27, 2014. When the bears initially returned, Wallen, his wife, children, and family friends were outside. They retreated to the area in and around their house. Wallen used his truck to scare the bears away. He then spoke to a caretaker of a nearby house. He told her that grizzly bears had been killing his chickens and returned to the residence. The caretaker observed the grizzlies later that evening near the residence and scared them away by throwing rocks. She later heard at least three shots from the direction of Wallen’s residence.
Later in the evening, when the bears returned, Wallen shot all three bears. At the time, his family and friends were in or around the house, and the bears were only approaching his chickens. Wallen fired several shots from his .22 rifle at the bears and they ran off. Shortly after Wallen shot the bears, his neighbor discovered one of the bears lying in his driveway and unable to stand due to its injuries. The neighbor contacted Wallen. Concerned about the bear’s serious injuries, the neighbor shot the bear once with a .300 rifle, which killed it. He then reported to law enforcement that he had shot the bear, and a Montana Fish, Wildlife and Parks (MFWP) Bear Biologist was notified.
The Bear Biologist contacted a MFWP Game Warden, who responded to the incident location. Wallen admitted he had shot toward the grizzly with a .22 rifle, hoping to scare it away. Wallen did not report shooting at the other two grizzly bears at that time. On May 28, 2014, the biologist listened to a cell phone message from Wallen’s wife from May 27th. In the message, she stated they were having problems with grizzly bears killing their chickens. He then contacted Wallen’s wife and asked about setting traps to catch the other two grizzlies that were in the area. On May 28, 2014, the biologist went to the Wallen residence to set a trap. While inspecting the area to set a trap, he found another dead grizzly bear in tall grass near the location of the first dead grizzly. Wallen was questioned about the second bear and admitted to firing multiple shots at the three grizzly bears.
On May 29, 2014, Wallen confirmed, in a recorded interview, that the bears had killed a number of his chickens on the night of May 26th and returned to the chicken coop the following evening while his family and friends were in the yard. However, Wallen stated that the bears ignored the children and went to the coop. Wallen drove the bears off in his truck twice and when the three bears returned again, his family and friends were in or near the house and not in immediate danger from the bears. Wallen then used his .22 rifle to shoot in the direction of the bears. He stated that at the time he shot the bears, his family was behind him near the house. Wallen also acknowledged that he knew the bears were grizzlies when he shot them. Wallen testified at trial and provided a different account of the events than his previous statement.
On June 5, 2014, law enforcement agents were notified that the decomposed carcass of a third grizzly bear had been found by a neighbor. Based on examination of the carcass, it was determined that the bear had been dead for approximately a week.
Assistant U.S. Attorney Megan Dishong prosecuted the case, which was investigated by U.S. Fish and Wildlife Service.
Baltimore Career Offender Exiled to over 17 Years in Prison for Drug DistributionRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr., sentenced Damien Riley, age 34, of Baltimore, Maryland, today to 210 months in prison, followed by three years of supervised release, for three counts of possession with intent to distribute heroin and one count of possession with intent to distribute cocaine. Riley was convicted for those charges on February 9, 2015, after a six day trial. At today’s sentencing hearing Judge Quarles found that Riley was a career offender, based on previous convictions for robbery and drug distribution. In addition, Riley had a prior federal conviction for unlawful possession of ammunition by a convicted felon.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to evidence presented at trial, on August 13, 2013, August, 19, 2013 and September 4, 2013, an undercover ATF Task Force Officer purchased a total of more than 10 grams of heroin and 1.7 grams of crack cocaine. Riley provided the drugs in exchange for a total of $1,560 in premarked bills. The transactions occurred in the 3300 block of West Cold Spring Lane in Baltimore and were observed by ATF agents.
Witnesses testified that on October 23, 2013, a search warrant was executed at Riley residence in the 2900 block of West Cold Spring Lane. Law enforcement recovered a .357 caliber revolver loaded with five rounds of ammunition, 45 rounds of .357 caliber ammunition in a box, eight ziplock baggies of heroin, five cell phones, a digital scale, drug packaging material, a revolver speed loader, a firearm holster, and personal items belonging to Riley.
The jury was not able to reach a verdict on three other counts: possession with intent to distribute heroin; illegal possession of a ammunition by a convicted felon; and maintaining a place for the purpose of manufacturing, storing, distributing, and using any controlled substance.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, and Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.
Auburn Man Arrested for Selling Date Rape DrugRead the Press Release
Montgomery, Ala. – Stephen K. Howard, a 64-year old Auburn resident who is employed as a lab technician at Auburn University, was arrested Friday, May 22, 2015 for selling large quantities of a “date rape” drug, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama.
According to court documents, Howard sold an undercover agent 20 ounces of a liquid substance used to incapacitate women. Shortly thereafter, another purchase was made from Howard for nearly a gallon of the same substance. During the second purchase, Howard showed the undercover agent that he had a handgun.
Following these purchases, lab tests confirmed that the liquid was in fact a controlled substance called 1,4-butanediol. When ingested, 1,4-butanediol is converted into Gamma Hydroxybutyric Acid (GHB), commonly known as a “date rape drug.” On May, 22, 2015, law enforcement executed search warrants at Howard’s office on Auburn’s campus, and at his home. Howard was arrested the same day.
A complaint merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Howard faces up to 20 years in prison for distribution of a controlled substance, and a possible 32 year sentence on charges for possession of a firearm during a drug trafficking crime.
The case is being investigated by the Auburn Police Department, with assistance from the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Alabama Law Enforcement Agency. It is being prosecuted by Assistant United States Attorney Verne Speirs. The U.S. Attorney’s Office would like to give special thanks to Auburn University for its support and cooperation in this matter.
Arraignments Today for Two Men Charged with Using Counterfeit U.S. Postal Service Keys to Steal MailRead the Press Release
LAS VEGAS, Nev. – The arraignments for two men charged with using counterfeit mail box keys to steal checks, credit cards, and other information from local mailboxes will be held at 3:00 p.m. today before U.S. Magistrate Judge Carl W. Hoffman, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
John Douglas Gibson, 44, and Juan Carlos Rodriguez, 40, both of Las Vegas, are charged with one count of possession of counterfeit U.S. Postal Service keys, one count of possession of stolen mail, one count of theft of government money, one count of fraud and related activity in connection with access devices, and one count of aggravated identity theft. If convicted, they face up to five years in prison on the stolen mail count and up to 10 years in prison on each other count, except for the aggravated identity theft count which carries a two year mandatory minimum penalty which must be served consecutively. They also face fines of up to $250,000 on each count.
“Financial and personal identifying information stolen from the U.S. mail is commonly used to create counterfeit checks and credit cards and to assume the identity of the victims whose mail was stolen,” said U.S. Attorney Bogden. “Be aware of any suspicious activity at your mailbox and report it to the U.S. Postal Inspection Service as soon as possible so that investigators can track it.”
According to the criminal complaint filed on May 8, 2015, the U.S. Postal Inspection Service had been investigating reports of extensive mail theft in the Henderson and Las Vegas areas. The reports indicated that someone was stealing all of the mail from individual and cluster mailboxes without causing any damage to the mailboxes. Investigators determined that between Feb. 1 and May 7, defendants Gibson and Rodriguez were allegedly using counterfeit U.S. Postal Service mailbox keys to steal mail from secured mailboxes. The criminal indictment specifically charges Gibson and Rodriguez with possessing stolen mail belonging to an individual who resided at La Suena Court in Henderson, stealing U.S. Treasury checks valued at more than $10,000, and fraudulently using Sam’s Club and Lowe’s hardware store credit cards.
Information concerning mail theft should be reported to the U.S. Postal Inspection Service online at https://postalinspectors.uspis.gov/ or by telephone at 800-275-8777.
The case is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney J. Gregory Damm.
“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.”
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
25 May 2015
El Departamento de Justicia Lleeo a un Acuerdo con la Ciudad de Cleveland para Reformar la División de Policía de Cleveland Despues de Haberse Encontrado el Ejercicio de un Patrón o Práctica de Uso Fuerza ExcesivaRead the Press Release
WASHINGTON – El Departamento de Justicia de los Estados Unidos y la Ciudad de Cleveland anunciaron hoy que han realizado un acuerdo exigible judicialmente en resolución de los hallazgo por parte del Departamento de que la División de Policía de Cleveland [Cleveland Division of Police (CDP)] exhibe un patrón o una práctica de uso de fuerza excesiva en violación de la Cuarta Enmienda. El acuerdo creará reformas y cambios amplios en el ámbito de la CDP. Los cambios se centran en conquistar la confianza de la comunidad, y crear una cultura de servicio policial, seguridad y la capacitación de los agentes dirigida a los problemas y la comunidad, la responsabilización de los agentes y mejoras en tecnologías. Según el acuerdo, las partes seleccionarán en conjunto a un monitor independiente que evalúe e informe si se han implementado las exigencias del acuerdo por un período de al menos cinco años.
“El Departamento de Justicia se empeña en asegurar que cada ciudadano de los Estados Unidos disfrute de los beneficios de una fuerza policial que protege y sirve a todos los miembros de la comunidad”, señaló la Secretaria de Justicia Loretta E. Lynch. “El acuerdo que hemos realizado con la ciudad de Cleveland es el resultado de arduo trabajo y dedicación de toda la comunidad de Cleveland, y busca resolver inquietudes graves, reconquistar la confianza y mantener los más altos estándares de profesionalismo e integridad. Me complace contar con la plena colaboración de las fuerzas del orden público y las autoridades municipales en esta iniciativa. Y me complacerá trabajar con toda la comunidad en crear un Cleveland más fuerte y más seguro tanto para residentes como para agentes”.
El acuerdo integral exige:
- La creación de una Comisión de Policía Comunitaria, compuesta por diez representantes de la comunidad y un representante de la Asociación de Patrulleros Policiales de Cleveland (Cleveland Police Patrolmen’s Association), el sindicato Fraternal de Orden Policial y Black Shield.
- La CDP reformará el uso de políticas del uso de fuerza, lo que incluye exigencias de uso de técnicas de desintensificación, siempre que corresponda y sea posible, la prohibición del uso de fuerza como represalia, la emisión obligatoria de informes y estándares para la investigación de casos de uso de fuerza, y atención médica para las personas objeto de la fuerza.
- La CDP integrará principios de acción policial libres de parcialidad en todos los niveles de la organización, lo que incluye la capacitación integral de agentes y supervisores a ser desarrollada con opiniones de la comunidad.
- La CDP creará un Comité Asesor de Respuesta a Problemas de Salud Mental y esta proporcionará a los agentes la suficiente capacitación para identificar y responder adecuadamente a situaciones relacionadas con personas en crisis de salud mental. La CDP desarrollará un plan para asegurarse de que estos agentes especializados estén siempre disponibles para responder a llamadas relacionadas con personas en crisis de salud mental.
- La CDP mejorará la capacitación de los agentes al asegurarse de que refleje las necesidades de los agentes y que esta sea eficaz.
- La CDP mejorará los equipos y recursos disponibles para los agentes después de realizar un estudio integral de equipos y recursos para evaluar sus necesidades y prioridades actuales. Esto incluye el suministro de tecnología actualizada y funcional en sus carros de zona, que les permita acceso a información necesaria; carros de zona seguros y equipos de primeros auxilios.
- La CDP desarrollará una política de reclutamiento y un plan estratégico de reclutamiento que incluya metas, objetivos y pasos de acción claros para atraer a candidatos calificados de un amplio espectro de la comunidad. La CDP consultará a la Comisión de Policía Comunitaria y otras partes interesadas acerca de estrategias para atraer a un grupo diversificados de candidatos.
“El acuerdo de hoy refleja el compromiso de la ciudad y de la División de Policía de trabajar con el Departamento de Justicia y la comunidad de Cleveland en transformar a esta repartición policial en un modelo de acción policial con orientación comunitaria que permitirá una mayor seguridad tanto de los agentes de la policía como de las personas a las que sirven”, señaló la líder de la División de Derechos Civiles, la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta. “La acción policial constitucional es clave para la creación de confianza entre las comisarías y las comunidades a las que sirven. Hoy, Cleveland demuestra al resto del país que las personas pueden unirse en sus diferencias percibidas para realizar una visión común de una ciudad más segura y más justa”.
“En los últimos días y meses, la nación ha observado a Cleveland en nuestra resolución de problemas complejos relacionados con las relaciones entre la policía y la comunidad”, observó el Fiscal Federal Steven M. Dettelbach del Distrito Norte de Ohio. “Hoy, la nación debe considerar a esta ciudad un ejemplo de lo que el verdadero trabajo arduo conjunto puede lograr: un proyecto transformativo de reforma que puede ser un modelo nacional para cualquier comisaría lista para acompañar a una gran ciudad a la vanguardia del siglo 21. Sin embargo, el trabajo arduo recién comienza y necesitaremos el compromiso del trabajo conjunto de toda la comunidad para transformar a la promesa de hoy en la realidad de mañana”.
El acuerdo se ocupa de los hallazgos anunciados en diciembre de 2014, de una investigación integral de la CPD iniciada en marzo de 2013, que evaluó el uso de prácticas de uso de fuerza por parte de la CDP. La investigación concluyó que hubo causas razonables para creer que los agentes policiales de Cleveland ejercían un patrón o una práctica de fuerza irrazonable y, en algunos casos, innecesaria, en violación de la Cuarta Enmienda de la Constitución. Dicho patrón o práctica incluyó el uso innecesario o excesivo de fuerza letal, que incluyó disparos y golpes en la cabeza con armas de impacto; el uso innecesario, excesivo o en represalia de fuerza menos letal, incluidos Tasers, rosear químicos y fuerza física; fuerza excesiva contra personas con deficiencia mental o en crisis, que incluyó casos en los que se llamó a los agentes exclusivamente para una verificación del bienestar, y el empleo de tácticas ineficientes y peligrosas que colocaron a agentes en situaciones en las que la fuerza evitable se volvió inevitable.
La investigación también encontró que este patrón de fuerza excesiva desgastó la confianza pública en la policía. Como resultado de esto, afectó la seguridad pública y la tarea de prestar servicios policiales resultó más difícil y peligrosa. La investigación fue llevada a cabo conjuntamente por la Sección de Litigios Extraordinarios de la División de Derechos Civiles y la Fiscalía Federal para el Distrito Norte de Ohio.
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Download Cleveland Complaint (32.66 KB)
Download Cleveland Joint Motion and Memo for Entry of Consent Decree (26.98 KB)
Download Cleveland Settlement Agreement (21.39 MB)
Download SPL Police Accomplishments 5.26.15 (212.23 KB)
Download Cleveland Division of Police 5.26.15 (180.2 KB)
Resumen del Acuerdo de Conciliación con la Ciudad de Cleveland Hacerca de la División de Policía de Cleveland (103.08 KB)
23 May 2015
Statement from Vanita Gupta, Head of the Justice Department's Civil Rights Division, U.S. Attorney Steven M. Dettlebach for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony for the FBIRead the Press Release
Statement from Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony for the FBI:
“The U.S. Attorney's Office, the Federal Bureau of Investigation and the Civil Rights Division of the Department of Justice have been monitoring the extensive investigation that has been conducted around the events of Nov. 29, 2012. We will now review the testimony and evidence presented in the state trial. We will continue our assessment, review all available legal options and will collaboratively determine what, if any, additional steps are available and appropriate given the requirements and limitations of the applicable laws in the federal judicial system. This review is separate and distinct from the Civil Rights Division and U.S. Attorney's Office's productive efforts to resolve civil pattern and practice allegations under 42 U.S.C. 14141 with the city of Cleveland.”
Justice Department issues statement following Brelo verdictRead the Press Release
Statement from Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony for the FBI:
“The U.S. Attorney's Office, the Federal Bureau of Investigation and the Civil Rights Division of the Department of Justice have been monitoring the extensive investigation that has been conducted around the events of Nov. 29, 2012. We will now review the testimony and evidence presented in the state trial. We will continue our assessment, review all available legal options and will collaboratively determine what, if any, additional steps are available and appropriate given the requirements and limitations of the applicable laws in the federal judicial system. This review is separate and distinct from the Civil Rights Division and U.S. Attorney's Office's productive efforts to resolve civil pattern and practice allegations under 42 U.S.C. 14141 with the city of Cleveland.”
22 May 2015
Willis Texas Tax Return Preparer Sentenced for False ReturnsRead the Press Release
HOUSTON – Doyle J. Blevins Jr. has been ordered to prison following his conviction related to the preparation of false client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Blevins pleaded guilty in February 2015.
At a hearing held yesterday afternoon, U.S. District Judge Sim Lake handed Blevins a 24-month prison sentence. He was further ordered to pay $285,147 in restitution and will also be required to serve one year of supervised release following completion of the prison term.
Blevins owned and operated Total Refund Tax Service in Willis until 2012. Court documents show that Blevins included false deductions in at least 71 tax returns for tax years 2008 through 2010 without his clients’ knowledge or consent, which fraudulently increased their refunds by approximately $285,147. The most egregious fraudulent refund was obtained in a 2009 tax return that included a $23,248 loss for a non-existent family counseling business. This tax return alone caused an estimated loss to the U.S. Treasury of $7,351.
Blevins was permitted to remain on bond pending the issuance of an order to surrender to a U.S. Bureau of Prisons facility to be designated in the near future.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Wakpala Man Sentenced for Assault Resulting in Serious Bodily Injury and Sexual Abuse of A MinorRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Wakpala, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and four counts of Sexual Abuse of a Minor was sentenced on May 15, 2015, by U.S. District Judge Charles B. Kornmann. The convictions were the result of a jury trial held in Pierre in September of 2014.
Stoney End Of Horn, age 37, was sentenced to 293 months in custody, 5 years of supervised release, and a $500 special assessment to the Federal Crime Victims Fund.
The assault conviction stemmed from an incident that occurred in September 2008 near Wakpala, when End Of Horn assaulted the victim on a rural road. The 2008 assault caused multiple facial fractures and internal injuries to the victim’s brain. The surgeon that repaired the victim’s face described the bones as “busted up so bad they were like a bag of potato chips.” Eventually, injuries from the assault caused the victim to have a cerebellar infarction on February 9, 2010. The evidence at trial established that the victim never recovered from the cerebellar infarction and died at Triumph Long-Term Care Hospital in Mandan, North Dakota, on June 25, 2010.
The sexual abuse convictions arose from incidents in 2010 when End Of Horn, who had previously been convicted in South Dakota State Court for Possession, Manufacturing, and Distributing Child Pornography, engaged in repeated sexual acts with a minor victim he was caring for in Wakpala. The young victim considered End Of Horn to be a father figure.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Standing Rock Agency, the National Park Service, and the Mobridge Police Department. The case was prosecuted by Assistant U.S. Attorneys Troy R. Morley and Mikal Hanson.
End Of Horn was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
U.S. Attorney Announces “Be Here for Kids” Event in TucsonRead the Press Release
TUCSON, Ariz. - The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the “Be Here For Kids” event on Wednesday, May 27, 2015, at the Children’s Museum in Tucson. The event will take place from 10:00 a.m. to 3:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the “Be Here For Kids” campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life. Families also are encouraged to take 25 minutes to talk to their children about abduction and safety prevention.
“The annual ‘Be Here For Kids’ national child safety campaign is particularly important this time of year, when children begin their summer breaks and have more time on their hands” said U.S. Attorney John S. Leonardo. “This event is designed to increase awareness among parents and children of the potential threats to child safety present in daily life, including the Internet.”
This year’s event is being presented in partnership with the U.S. Marshals Service, the Pima County Sheriff’s Office, the Bureau of Alcohol, Tobacco and Firearms, Pima County Attorney’s Office, and the Arizona Attorney General’s Office. Interactive children’s self-defense demonstrations by Ko Sho Martial Training Institute will take place throughout the day, and digital child identification kits will be provided free of charge to those that attend.
A similar Phoenix event is scheduled for June 12, 2015.
For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2015-040_Take_25_Tucson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two Orange County Men Arrested on Federal Charges of Conspiring to Provide Material Support to ISILRead the Press Release
SANTA ANA, California – Two Orange County men, one of whom attempted to travel to the Middle East to allegedly join ISIL, have been arrested on federal charges of conspiring to provide material support to the designated foreign terrorist group the Islamic State of Iraq and the Levant (ISIL).
Muhanad Badawi, 24, and Nader Elhuzayel, 24, both of Anaheim, were arrested Thursday evening by special agents with the FBI.
Badawi and Elhuzayel were charged in a criminal complaint filed this morning in United States District Court in Santa Ana, and both me are expected to make their initial court appearances this afternoon.
The affidavit in support of the criminal complaint outlines a scheme in which Badawi and Elhuzayel used social media to discuss ISIL and terrorist attacks, expressed a desire to die as martyrs and made arrangements for Elhuzayel to leave the United States to join ISIL.
According to the affidavit, on May 3, Elhuzayel saw a tweet from Elton Simpson, one of the two gunmen who were killed trying to attack a conference in Garland, Texas. In this tweet, Simpson stated that he and his “bro” had pledged allegiance to the leader of ISIL. In response, Elhuzayel tweeted his support for the attempted attack and praised Simpson as a “martyr.”
In recorded conversations last month, Badawi and Elhuzayel “discussed how it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we,” according to the complaint affidavit. When Badawi expressed concerns about ISIL struggling due to airstrikes by Coalition forces, Elhuzayel responded that they had to be patient and “can you imagine when al-Qaeda joins with Islamic State”? According to the affidavit, Badawi responded: “We will be huge.” The two men also discussed local Muslim leaders and Elhuzayel complained that these leaders were not “legitimate” because they believed in democracy and were not fighting for an Islamic State.
The men discussed where in the Middle East they would rather be, and Elhuzayel said he wanted to fight and did not want to be in the United States, according to the conversations recounted in the affidavit.
On May 7, Badawi allowed Elhuzayel to use his credit card to purchase a one-way airline ticket for travel from Los Angeles to Tel Aviv, Israel, via Istanbul, Turkey, on a Turkish Airlines flight scheduled to depart on May 21. Badawi indicated that he would be traveling to the Middle East in the future, according to the affidavit.
Elhuzayel was arrested at Los Angeles International Airport. According to the allegations in the complaint, Elhuzayel admitted after being read his Miranda rights that he planned to disembark in Istanbul to join ISIL and did not intend to travel on to Israel.
If convicted of the charge in the criminal complaint, Badawi and Elhuzayel each would face a statutory maximum sentence of 15 years in prison for conspiring to provide material support to ISIL.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation in this case was conducted by the FBI’s Joint Terrorism Task Force in Orange County, which includes the following agencies: the Anaheim Police Department, the California Highway Patrol, the Orange County Sheriff’s Department, the Orange County Intelligence Assessment Center, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Secret Service, IRS – Criminal Investigation, the City of Orange Police Department, the Irvine Police Department, and the Buena Park Police Department.
Release No. 15-050
Two North Carolina Residents Indicted for Conspiracy to File False Tax ReturnsRead the Press Release
Two Mecklenberg County, North Carolina, residents were indicted yesterday in Charlotte, North Carolina, with conspiracy to defraud the United States and filing false, fictitious or fraudulent claims, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Jill W. Rose of the Western District of North Carolina.
Daniel Heggins and Joan Clark were charged with one count of conspiracy to defraud the United States and 16 counts of filing false, fictitious or fraudulent claims for federal income tax refunds. According to the allegations in the indictment, beginning no later than July 2009 and continuing through May 2011, Heggins and Clark operated Guarantor Manufacturer Inc., which advertised consulting, investing, debt reduction, and foreclosure avoidance services. Heggins and Clark recruited individuals who owed debts, such as mortgages or car loans, and used their information to file false federal income tax returns with fraudulent claims for tax refunds.
Heggins and Clark prepared false tax returns by attaching false Internal Revenue Service (IRS) Forms 1099-Original Issue Discount (OID) to the returns. Certain taxpayers file Forms 1099-OID because taxes owed to the IRS on certain bonds must be reported annually and paid as interest accrues. Heggins and Clark intentionally mischaracterized the debts owed by improperly using Forms 1099-OID to report debts as interest income to the individuals. As a result, the false tax returns claimed refunds based on fictitious tax withholdings from that purported interest income. Heggins and Clark filed at least 16 false tax returns that fraudulently claimed more than $4 million in tax refunds.
If convicted, Heggins and Clark each face a statutory maximum sentence of five years in prison and a maximum fine of $250,000 on each count.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the FBI, who investigated the case, and Assistant U.S. Attorney Michael Savage of the Western District of North Carolina and Trial Attorney Todd P. Kostyshak of the Tax Division, who are prosecuting the case.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
Daniel Heggins and Joan Clark Indictment
Two Men Charged with Distributing Synthetic Drugs That Caused Overdoses at Wesleyan UniversityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Middletown Police Chief William McKenna, today announced that a federal grand jury in New Haven has returned an indictment charging ERIC LONERGAN, 22, of Rio de Janeiro, Brazil, and ZACHARY KRAMER, 21 of Bethesda, Maryland, with distributing controlled substances that caused multiple Wesleyan University students to overdose during the past school year.
The five-count indictment was returned yesterday, and LONERGAN and KRAMER are scheduled to appear before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven at noon today.
“Our hope is that this prosecution puts to bed the misperception that synthetic drugs are harmless party drugs,” said U.S. Attorney Daly. “As the allegations in this indictment clearly show, these drugs are highly dangerous. Many of the Wesleyan students who overdosed were seriously ill and one student nearly died. The growth and evolution of synthetic drugs is a serious public health concern. As is clear today, together with the DEA and our local partners, we will prosecute these cases. We thank the DEA, the Middlesex State’s Attorney’s Office and the Middletown Police Department for their collaboration and diligent work in this ongoing investigation.”
“The distribution and use of synthetic drugs is a potentially deadly game,” said DEA Special Agent in Charge Ferguson. “The truth of the matter is that when someone uses a synthetic drug, they are playing Russian roulette with their life. There is no way for a user to know what deadly combination of drugs is in that capsule. The DEA New England Field Division and our law enforcement partners are committed to investigating individuals and groups that traffic synthetic drugs.”
“I am very proud of the Middletown Police Department members and all public safety officials who have worked on the WESU Molly incident,” said Middletown Police Chief McKenna. “We received incredible assistance from outside agencies, including the Middlesex County State’s Attorney’s office, the State of Connecticut Forensics Crime Laboratory, medical providers and WESU officials during the course of the investigation. The health of many students was jeopardized, causing a major public safety concern to our community. We are now fortunate to partner up with, and give continued assistance to, the U.S. Attorney’s office, DEA and other federal agencies in their continued efforts to achieve the results that are being reported today. The citizens of Middletown and the State of Connecticut are very fortunate to have the combined efforts of local, state and federal agencies working in collaboration to achieve law enforcement’s ultimate goal of providing the safety and security that they deserve.”
According to the allegations set forth in the indictment, LONERGAN and KRAMER were students at Wesleyan in Middletown, Connecticut. Beginning in approximately November 2013, LONERGAN began purchasing and redistributing MDMA, also known as “Molly,” a Schedule I controlled substance, to students on or in the vicinity of the Wesleyan campus. Charging approximately $20 per .1 gram of Molly or $200 per gram, LONERGAN regularly sold Molly from his dorm room between 5:00 p.m. and 9:00 p.m. during most nights. LONERGAN also counseled students on how to ingest Molly and other psychedelic drugs. At one point in 2014, after the administration at Wesleyan sent out a campus-wide communication warning of the dangers of ingesting controlled substances like Molly, LONERGAN responded by distributing a pamphlet instructing students on the use of psychedelic drugs. Also in 2014, KRAMER began purchasing Molly from LONERGAN and distributing it to students at Wesleyan.
The indictment alleges that in September 2014, LONERGAN agreed to provide Molly to students who were planning a “rolling” party at Wesleyan, which is a party where guests ingest Molly. LONERGAN provided several grams of what he represented to be Molly to an individual who then distributed it to students in .1 gram capsules. On September 13, 2014, several Wesleyan students overdosed on the substance provided by LONERGAN and some were transported to the hospital. The students either swallowed the capsule or opened the capsules and snorted the powder. Many of them had strong adverse reactions, complaining of extreme lethargy or an irrational fear of everything and everyone around them. Some of these students did not recover for at least three days. One student snorted only .05 grams of the substance and within 10 minutes, passed out. After she was revived and taken to her room, she remained bedridden for two days before finally being transported to the hospital.
According to the indictment, after the September 2014 overdoses, LONERGAN sent electronic communications to several of the students, assuring them that the substance he had sold them was safe and that he had tested it himself to make certain it was Molly. He also sent some of these students a link to a video purporting to show him performing a test on the substance that yielded a positive result for MDMA. In February 2015, one of the students, who had earlier overdosed, provided a capsule that she had purchased from LONERGAN in September 2014 to the Middletown Police. A lab test on that capsule revealed that it did not contain MDMA, but rather AB Fubinaca, which is a synthetic cannabinoid and a Schedule I controlled substance, and 6-MAPB, which is an analogue of MDMA.
The indictment further alleges that in early 2015, KRAMER, who had taken over for LONERGAN as the primary supplier of Molly at Wesleyan, provided Molly to some of his friends for redistribution to students on campus. On February 21, 2015, 11 individuals, including 10 Wesleyan students, overdosed on a substance they believed was Molly, and many were transported to the hospital. These students reported similar symptoms as those who overdosed in September 2014. Two of the students were in critical condition, and one of those students had to be revived after his heart stopped. All of these students obtained the purported Molly through individual distributers who were supplied directly by KRAMER. After the events of February 21, law enforcement officers seized the substance identified as Molly from one of KRAMER’s distributers and sent it to a toxicology laboratory for testing. Laboratory analysis confirmed that the powdered substance contained AB Fubinaca.
The indictment charges both LONERGAN and KRAMER with one count of conspiracy to distribute and possess with intent to distribute MDMA and AB Fubinaca, and one count of attempted distribution of MDMA and distribution of AB Fubinaca. Each of these charges carries a maximum term of imprisonment of 20 years and a fine of up to $1 million. The indictment also charges LONERGAN and KRAMER with distribution of MDMA within 1000 feet of a private college, a charge that carries a mandatory minimum term of imprisonment of one year, a maximum term of imprisonment of 40 years, and a fine of up to $2 million.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration and the Middletown Police Department, with the assistance of the State of Connecticut’s Forensic Science Laboratory.
U.S. Attorney Daly acknowledged the support and assistance of the Middlesex State’s Attorney’s Office, which is prosecuting several state cases stemming from these overdose events.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector, with the assistance of Senior Assistant State’s Attorney Eugene Calistro.
Two Men Arrested in Connection with Stock Trading SchemeRead the Press Release
DENVER – Michael Todd Osborn, age 44, who has been living in Connecticut and New York, and Corey Earl Engelen, age 45, of Parker, Colorado were arrested last week, Osborn on charges of wire fraud and money laundering, and Engelen on charges of money laundering, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Gilbert R. Garza announced. Osborn and Engelen were indicted by a federal grand jury on February 11, 2015 which remained sealed until Osborn’s arrest. Engelen has been released on a $70,000 unsecured bond after being read his rights and the charges pending against him. He was later arraigned and pled not guilty. Osborn was arrested in New York City and is pending release on bond.
According to the indictment, beginning in October 2009 and continuing until July 2010, Osborn devised a scheme to defraud investors. He told them that he would use their funds to trade stocks on their behalf. In fact, he did no trading, and he and his Colorado associate used the investors’ money for their own personal benefit and purposes other than trading. Osborn held himself out to investors as an experienced trader of stocks and other securities and a veteran in the equity/swing trading business. In some instances, he falsely represented he was a licensed broker. He sold investors units in the CU Equity Swing Fund I, LLC and the 10x Leveraged Oscillator Fund, through which he represented he would conduct short-term trading. Investors typically learned of the investment opportunity through a friend or trusted associate.
Osborn falsely represented that he had a prime trading account through which he would be able to leverage the funds invested and thereby reap greater profits than from unleveraged trading and falsely represented that the investors’ funds were protected from fraud, larceny, and embezzlement by a fidelity bond with Lloyds of London.
Osborn instructed investors to wire their funds to accounts held in the name of Infinite One, LLC, which he represented to be the trading accounts he would use for the trades. In fact, the accounts were not trading accounts and were never used for trading. They were merely checking accounts held by Osborn’s associate in Colorado. Once the investors had wired funds, Osborn provided them “blotters,” which contained detailed records of trades he had purportedly made. The information provided was false, as Osborn had never made the trades, and certainly no profits had been realized.
In June of 2010, Corey Engelen knowingly engaged in monetary transactions derived from specified unlawful activity, namely wire fraud. The transactions consisted of wire transfers from Infinite One, LLC of $50,000, $44,915, and $15,000 to the bank accounts of Dream Motor Cars and law offices.
Osborn was charged with eight counts of wire fraud and three counts of money laundering. Engelen was charged with three counts of money laundering. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000. Money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000. Included in the indictment is a notice of forfeiture for any property traceable to the structuring charges alleged in the indictment.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Linda Kaufman.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Two California Men Arrested on Charges of Conspiring to Provide Material Support to ISILRead the Press Release
Two California men, one of whom attempted to travel to the Middle East to allegedly join ISIL, have been arrested on charges of conspiring to provide material support to the designated foreign terrorist group the Islamic State of Iraq and the Levant (ISIL), announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Stephanie Yonekura of the Central District of California.
Muhanad Badawi, 24, and Nader Elhuzayel, 24, both of Anaheim, California, were arrested late Thursday afternoon by the FBI. Badawi and Elhuzayel were charged in a criminal complaint filed today in U.S. District Court of the Central District of California, and both men are expected to make their initial court appearance this afternoon.
The affidavit in support of the criminal complaint outlines a scheme in which Badawi and Elhuzayel used social media to discuss ISIL and terrorist attacks, expressed a desire to die as martyrs and made arrangements for Elhuzayel to leave the United States to join ISIL.
According to the affidavit, on May 3, 2015, Elhuzayel saw a tweet from Elton Simpson, one of the two gunmen who were killed trying to attack a conference in Garland, Texas. In this tweet, Simpson stated that he and his “bro” had pledged allegiance to the leader of ISIL. In response, Elhuzayel tweeted his support for the attempted attack and praised Simpson as a “martyr.”
In recorded conversations last month, Badawi and Elhuzayel “discussed how it would be a blessing to fight for the cause of Allah, and to die in the battlefield,” and they referred to ISIL as “we.” When Badawi expressed concerns about ISIL struggling due to airstrikes by Coalition forces, Elhuzayel responded that they had to be patient and “can you imagine when al-Qaeda joins with Islamic State”? According to the affidavit, Badawi responded: “We will be huge.” The two men also discussed local Muslim leaders and Elhuzayel complained that these leaders were not “legitimate” because they believed in democracy and were not fighting for an Islamic State.
The men discussed where in the Middle East they would rather be, and Elhuzayel said he wanted to fight and did not want to be in the United States, according to the conversations recounted in the affidavit.
On May 7, Badawi allowed Elhuzayel to use his credit card to purchase a one-way airline ticket for travel from Los Angeles to Tel Aviv, Israel, via Istanbul, Turkey, on a Turkish Airlines flight scheduled to depart on May 21. Badawi indicated that he would be traveling to the Middle East in the future, according to the affidavit.
Elhuzayel was arrested at Los Angeles International Airport. According to the allegations in the complaint, Elhuzayel admitted after being read Miranda rights that he planned to disembark in Istanbul to join ISIL and did not intend to travel on to Israel.
If convicted of the charge in the criminal complaint, Badawi and Elhuzayel each would face a statutory maximum sentence of 15 years in prison for conspiring to provide material support to ISIL.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation in this case was conducted by members of the FBI’s Joint Terrorism Task Force in Orange County, California.
Badawi and Elhuzayel Criminal Complaint
Three Members of an Illegal International Gambling Enterprise Convicted of Racketeering ConspiracyRead the Press Release
A federal jury in Oklahoma City today convicted two Texas men and a California man for their participation in a racketeering conspiracy involving illegal gambling and money laundering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
Rodger Bramley, 73, of Plano, Texas, Kelley Diebner, 43, of Houston, Texas, and Leon Moran Jr. 54, of Kingsburg, California, were found guilty of racketeering conspiracy, conducting an illegal gambling business and money laundering conspiracy. A sentencing hearing has not yet been set.
According to evidence presented at trial, from 2003 to 2013, Bramley, Diebner and Moran conspired with others to operate an international criminal enterprise known as Legendz Sports, which ran internet and telephone gambling services from Panama City, Panama. Legendz Sports took in more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States betting on American sporting events. Bramley and Diebner worked as bookies in Texas who illegally solicited and accepted sports wagers as well as settled gambling debts.
Evidence further showed that Moran worked as a runner who delivered and picked up cash to Legendz Sports bookies. As part of the racketeering conspiracy, bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama. The checks were made out to various shell companies created by Legendz Sports throughout Central America.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.
Tappahannock Man Sentenced to 10 Years in Prison for Attempting to Coerce Children into SexRead the Press Release
Law Enforcement Found Defendant on Incest Social Network
ALEXANDRIA, Va. – William Andrew Clarke, 44, of Tappahannock, Virginia, was sentenced today to 120 months in prison, followed by a lifetime of supervised release for online coercion and enticement of a minor.
Clarke, who also is a resident of Reston, Virginia, was found guilty by a jury on Feb. 24, 2015. According to court documents and evidence presented at trial, Clarke created a profile page on a social networking website for people who were interested in engaging in incest or sharing their children with others who are interested in sexually abusing children. Clarke was contacted through the website by an undercover agent with HSI. The agent pretended to be a father with two children, ages eight and nine. Clarke described to the undercover agent how he was interested in sexually abusing the two children, and Clarke and the agent made arrangements to meet in Fairfax, Virginia. Clarke traveled from Tappahannock to the designated meeting place, where he was taken into custody.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Clark E. Settles, Special Agent in Charge of the Washington, D.C. Field Office of Homeland Security Investigations (HSI), made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
This case was investigated by the Department of Homeland Security, HSI. Special Assistant U.S. Attorney Scott A. Claffee is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-246.
Tampa Man Sentenced to More Than Ten Years for Bank Robbing SpreeRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Todd Michael Vincent (48, Tampa) to 10 years and 10 months in federal prison for armed bank robbery. Vincent pleaded guilty to the charges on January 28, 2015.
According to court documents, between August and October 2014, Vincent robbed several bank branches, including Synovus Bank (Tampa), BB&T Bank (Seffner), and US Ameribank (Tampa). He also attempted to rob a Bank of America branch in Riverview. During several of the robberies, Vincent presented bank tellers with a note stating, “I have a gun.” On at least one occasion, he entered the bank, pointed a gun at the teller and said, “I want all of your money…I will shoot you.”
On September 11, 2014, law enforcement received a tip identifying Vincent from bank security photos, along with his possible location. After a brief chase by law enforcement, Vincent was apprehended. In his pocket was $1777.79. Along his flight path, officers recovered a bag containing $9100.
This case was investigated by the FBI and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Natalie Hirt Adams and Megan Kistler.
Tampa Coin Dealer Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Mark Yaffe (55, Tampa) has pleaded guilty to one count of conspiracy to commit bank fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Yaffe was vice-president and principal of National Gold, Exchange, Inc. (“NGE”), a Tampa-based company in the business of warehousing, retailing, and trading rare coins. NGE entered into a series of loan agreements with Sovereign Bank (“Sovereign”), whereby Sovereign agreed to lend up to approximately $35 million to NGE, secured by NGE’s assets. Yaffe The loan agreements limited the amount of the $35 million NGE could borrow at any given time, using a formula that considered the value of NGE’s assets, which served as collateral for the loans. To make calculation of the formula possible, NGE was required to submit a monthly “borrowing base report,” along with back-up documents, regarding the value of its assets. The loan agreements also gave Sovereign the right to perform unannounced audits of NGE to verify that NGE had sufficient collateral.
On July 10, 2009, NGE began an unannounced audit at NGE. In connection with the audit, on July 11, 2009, Yaffe provided members of Sovereign’s audit team with a false and fraudulent borrowing base report, falsely inflating the value of NGE’s assets. In this report, he included fictitious sales to entities that he knew did not exist: $2,221,975 in false sales to Rifkin Management, Inc., (“Rifkin”) and $2,623,308 in false sales to Tudor Trust. Yaffe also submitted false invoices to Sovereign claiming to prove these fictitious sales and provided to Sovereign contact information for Rifkin and Tudor Trust that was false. An NGE employee reports that Yaffe instructed the employee to lie to Sovereign officials about the fictitious customers and sales. Yaffe then caused approximately $3,049,581 to be transferred out of two NGE bank accounts that were part of Sovereign’s collateral. Under the plea agreement, Yaffe has agreed to forfeit this amount.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by U.S. Department of Justice Trial Attorney Timothy Loper and Assistant United States Attorney Rachelle DesVaux Bedke.
Smithtown Doctor Indicted for the Illegal Distribution of Controlled Substances Without Legitimate Medical NeedRead the Press Release
A federal grand jury indicted Smithtown, New York, doctor Mitchel Fagin this morning on charges that he illegally distributed oxycodone, methodone and alprazalom, highly addictive prescription pain medications.1 The defendant is scheduled to be arraigned this afternoon before United States District Judge Joanna Seybert at the United States Courthouse located in Central Islip, New York.
The charges were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York.
Fagin surrendered this morning to the Long Island District Office Tactical Diversion Squad, which is comprised of federal agents and officers of the Nassau County, Rockville Centre, and Port Washington police departments. The 12-count indictment and public filings allege that between May 2010 and September 2014, Fagin, a pain management doctor, issued mutltiple controlled substance prescriptions without a legitimate medical purpose to individuals he knew were addicts. Fagin is also alleged to have issued controlled substance prescriptions in exchange for sexual favors from female patients. Fagin was previously investigated by the Office of Professional Medical Conduct resulting in at least one suspension of his medical license.
Acting United States Attorney Currie stated, “Dr. Fagin allegedly used his prescription-writing privileges not to heal, as was his duty, but to victimize vulnerable patients. Doctors who issue prescriptions without a legitimate medical need are violating the law and will be held accountable.” Mr. Currie extended his grateful appreciation to each of the law enforcement agencies for their assistance in this case.
DEA Special Agent-in-Charge Hunt stated, “As detailed in the indictment, Dr. Fagin’s house was a medicine chest for opioid addicts to fuel their addiction. Dr. Fagin allegedly abused his position as a medical practitioner and prescribed medications for non-medical needs. I commend the Long Island District Office Tactical Diversion Squad and the U.S. Attorney’s Office, Eastern District of New York, for their diligent work throughout this investigation.”
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the United States Department of Health and Human Services’ Center for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 15 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Lara Treinis Gatz is in charge of the prosecution.
The Defendant:
Name: MITCHEL FAGIN
Age: 63
Residence: Smithtown, New York
______________________________________________________________________________
1. The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Slidell Man Charged with Operating National Ponzi SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN SPOSATO, age 64, of Slidell, was charged today in a one-count Bill of Information with wire fraud for his role in promoting and operating a national Ponzi scheme.
According to the Bill of Information, since approximately 2010, SPOSATO was affiliated with, owned, or operated numerous different companies, including: Pegasus Investment & Development Corporation, LLC; Pegasus Investments; Oil Eaters, LLC; Organic Miracle Incorporation; S&J Corporate Properties, LLC; Pegasus Demolition & Debris Removal Service, LLC; and Pegasus Truck Lines, Inc. SPOSATO represented to potential investors that the companies were all investment entities that offered participants the chance to invest in various low-risk, high-reward investment vehicles, including international bank instruments, cutting edge oil remediation and recovery products, and real estate transactions. SPOSATO primarily relied upon word-of-mouth and e-mail correspondence, in which he fraudulently represented that he had knowledge and expertise in financial investing, to attract new investors. SPOSATO told investors that the alleged investments were safe, secure, and never at risk.
SPOSATO did not actually invest the money in any legitimate investment vehicle, instead using it to make retail purchases for himself and his friends for various goods and services, including luxury items such as a new Chevrolet Camaro for one girlfriend and breast augmentation surgery for another girlfriend. In total, between about January 2010, and April 2014, approximately forty-eight individuals invested approximately $811,305 with SPOSATO and his companies.
To perpetuate his scheme, SPOSATO promised guaranteed and extraordinarily high rates of return – rates much higher than market rates –or so called “guaranteed” investments to potential investors, such as a $25,000 investment in “oil-clean remediation work” in the Gulf of Mexico and another $25,000 investment in the purchase of “1,000,000 gallons of EP 55 Bio Fertile” fertilizer. SPOSATO promised that the first investment would result in a profit of $25,000 within approximately two weeks and the second investment would result in a profit of up to $3,000,000 within one year. SPOSATO provided prospective investors false or fraudulent documents to make the investments appear legitimate and to conceal the true nature of the Ponzi scheme. When investors became impatient, SPOSATO used new investor money to pay lulling payments to other investors, which he characterized as partial payments for investments with an overdue return, in an effort to give investors a false sense of security, to deceive investors into believing their money was invested legitimately, and to conceal the true nature of the Ponzi scheme.
If convicted, SPOSATO faces a maximum term of imprisonment of twenty years, followed by up to three years of supervised release, and a $250,000 fine per count.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
John Sposato Bill of Information.pdf (142.8 KB)
Sherman Jury Finds Pakistani National Guilty of International Drug Conspiracy and Money Laundering CrimesRead the Press Release
SHERMAN — A 49-year-old man from Karachi, Pakistan, has been found guilty of being a member of a large-scale drug trafficking organization responsible for illegally importing and distributing millions of counterfeit, adulterated, and misbranded pills in the Eastern District of Texas and throughout the United States, U.S. Attorney John M. Bales announced.
On May 14, 2015, a federal jury in Sherman, Texas, convicted Muhammad Aijaz Sarfraz of conspiracy to manufacture and distribute controlled substances and international money laundering conspiracy following a four-day trial before U.S. District Judge Amos Mazzant. Today, the Court entered a Preliminary Order of Forfeiture against Sarfraz, awarding the government a $38,967,372 money judgment based on a portion of the drug proceeds generated by the criminal enterprise.
According to information presented in court, from approximately March 2009 until Sarfraz’s arrest in April 2012, Sarfraz and his co-conspirators operated numerous illegal websites through which they distributed millions of illicit Schedule II, III, and IV controlled substances to Internet customers throughout the United States. Those pills included such popular prescription medications as OxyContin, Percocet, Adderall, Ritalin, Hydrocodone, Xanax, Valium, Ambien, and others. The counterfeit drugs were generally manufactured in China, Singapore, Malaysia, India, Pakistan, and Hong Kong. The pills, which were made to look like authentic prescription medications approved for use in the U.S. when validly prescribed by a physician, often contained incorrect active pharmaceutical ingredients or the wrong quantity and dosage strength of those substances. No physicians or medical professionals of any kind were involved at any stage of the drug distribution process. Anyone with access to the Internet, a credit card and a physical mailing address could order drugs from this criminal organization without a prescription or limits on quantity desired.
Key members of the group operated in Pakistan, India, the United Arab Emirates, and other foreign countries. Bulk pill shipments containing 25,000 to 50,000 or more pills at a time were shipped to ground operatives living in the U.S., who would re-ship the pills to co-conspirators operating in other parts of the country and fulfill Internet drug orders by drop-shipping individual pill bottles to Internet customers. Evidence presented at trial established that the drug trafficking organization was capable of distributing upwards of 1 million pills or more per month on average. This is believed to be one of the largest cases of its kind ever prosecuted in the United States in terms of pill quantities involved.
The criminal enterprise laundered money by moving drug proceeds from the United States to various foreign countries for the purpose of promoting the unlawful drug operation. Sarfraz and other conspirators also caused money to be moved back into the U.S. through foreign banks and shell companies for the purpose of funding U.S. operations by, for example, purchasing bulk pill bottles, postage and other shipping supplies, as well as paying ground operatives. It is estimated that the criminal enterprise may have generated as much as $100 million or more in proceeds between 2009 and 2012.
Several low-level ground operatives have been successfully prosecuted in the Eastern District of Texas and elsewhere over the past three years, but Sarfraz is the first upper-level member of the group to be apprehended and prosecuted. Sarfraz faces up to 20 years in federal prison on each of the two drug conspiracy and money laundering conspiracy charges for which he was convicted. A sentencing date has not yet been set.
This case was investigated by the Drug Enforcement Administration and Internal Revenue Service-Criminal Investigations Division, and was prosecuted by Assistant U.S. Attorneys Stevan Buys and Will Tatum.
Sex Trafficker, Christopher T. Bryant, Gets 40 Years in Federal Prison for Trafficking Three Minors in West Michigan and One Woman in ArizonaRead the Press Release
GRAND RAPIDS, MICHIGAN –Patrick Miles, U.S. Attorney for the Western District of Michigan announced today that Christopher T. Bryant, 25, of Detroit was sentenced to 40 years in federal prison for sex trafficking three minor girls in Lansing, Michigan, and one woman in Phoenix, Arizona. This is the second ever federal conviction for sex trafficking in West Michigan, following Eddie Jackson’s 2014 trial for sex trafficking minor girls in Muskegon and Grand Rapids, for which he is serving a 30-year federal sentence.
Bryant faced a minimum possible sentence of 15 years and a maximum of life. At the sentencing hearing today, Bryant refused to take responsibility for his actions. In delivering the 40-year sentence, Chief United States District Judge Paul L. Maloney described Bryant as "a man who is totally self-absorbed," "narcissistic to the extreme," and "a major risk to reoffend."
U.S. Attorney Miles stated, "This case involved yet another predator who took advantage of young girls and forced them into the sex trade. This defendant will now answer for his crimes with a long prison term. The U.S. Attorney’s Office and law enforcement throughout Western Michigan will continue to aggressively fight crimes against children, sex trafficking and human trafficking and see that those who commit these crimes will be brought to justice."
"The sentence handed down today holds Mr. Bryant accountable for his depraved criminal behavior, which violated those who are most vulnerable," stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "The West Michigan Based Child Exploitation Task Force is committed to safeguarding our children and protecting our communities from the ills of human trafficking."
Bryant’s four victims all testified at trial, along with other witnesses and federal agents. The first testified that she and Bryant were in a relationship in Michigan, and he was repeatedly violent towards her. He took her to Phoenix with him in 2012, where he checked them into a cheap motel, took her across the city to a busy highway intersection, and made her walk the streets for money. He told her how to attract the attention of passing cars and how to walk, but when she refused to get into cars with customers, Bryant became irate. He violently raped her at the motel, and she ran for help the next morning after escaping from him at a fast food restaurant. The other three victims, all minors, testified that Bryant recruited them through Facebook, at a bus station, or through another teenage girl in 2014. He posted photographs of them online advertising them as prostitutes and took them to cheap motels around Lansing, where customers responded to the ads and paid to have sex with them. Bryant told the girls he would split the money with them, but he only gave them drugs and alcohol. When one of the girls stayed out too late one night, Bryant choked her and threatened he could kill her and no one would know.
Bryant has a long criminal history, including violent assaults on other women, drug dealing, home invasion, and a high-speed chase in a stolen car. He made a video in a hotel that was posted on Facebook in late 2013 in which Bryant bragged about pimping "for a living" and how this was "only the beginning."
The FBI and the Ingham County Sheriff’s Office investigated the case jointly. Assistant U.S. Attorneys Tessa Hessmiller and Russ Kavalhuna prosecuted the case. Bryant is linked to an alleged sex trafficking ring in Lansing involving Mariah Haughton and Jonathan Purnell, whose cases are pending in Ingham County.
Community members can help stop child sex trafficking in West Michigan by recognizing the warning signs and reporting suspicious activity to police. Teens who are vulnerable to being targeted by pimps are often discontent in school, absent from school or home, suicidal or suffering from low self-esteem, defiant towards authority, seeking quick sources of income, and craving independence. They may have a history of drug and alcohol use that a pimp can exploit as a means of "payment" to the teen. Warning signs of child sex trafficking include seeing an adult man with multiple teenagers – particularly girls – buying condoms, alcohol, cigarettes, clothing, hair/nail supplies, or prepaid gift or debit cards. Community members may encounter these suspicious situations at pharmacies, convenience stores, gas stations, fast food restaurants, grocery stores, casinos, and hotels.
If you suspect illegal activity involving child exploitation, contact law enforcement immediately. If a child is in imminent danger, call 911. To report suspicious activity involving possible sex trafficking, call: West Michigan Based Child Exploitation Task Force (WEBCHEX) at 616-456-5489; Homeland Security Investigations, Grand Rapids, at 616-235-3936 (x. 2215); or 1-800-THE-LOST® (National Center for Missing and Exploited Children).
The case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement.
END
Seventh Defendant Indicted on Federal Charge of Heroin Distribution Resulting in DeathRead the Press Release
Rock Island, Ill. – A Rock Island, Ill., man, Phil Trent, 50, of the 2900 block of 11 1/2 Ave., appeared in federal court this morning for arraignment on a charge of distribution of heroin resulting in death. Trent becomes the seventh defendant charged in the past year with distribution of heroin that resulted in death in the Rock Island Division of the U.S. Attorney’s Office for the Central District of Illinois.
The grand jury returned the indictment against Trent earlier this week; however, the indictment remained sealed pending Trent’s appearance in federal court before U.S. District Judge Sara Darrow, who scheduled Trent’s trial for July 27, 2015. Trent was also ordered to remain in the custody of the U.S. Marshals Service.
The two-count indictment alleges that on Aug. 29, 2014, Trent distributed heroin in Rock Island County, and that the heroin resulted in a death. Count two of the indictment alleges Trent also distributed heroin on Oct. 1, 2014.
In addition to Trent, since April 2014, six defendants have been charged with distribution of heroin resulting in death in the Rock Island Division:
Kyle Joseph Wilson, 25, address unknown, indicted in April 2014 on a charge of distributing heroin that caused the death of another person. On Sept. 24, 2014, Wilson pleaded guilty and is scheduled to be sentenced on July 23, 2015.
Steven Waldrip, 47, of Rock Island, Ill., indicted July 22, 2014, on four counts of distributing heroin, including one count of heroin distribution resulting in the death of another person. On May 15, 2015, Waldrip pleaded guilty to three counts of distributing heroin; Waldrip is scheduled for trial in July 2015, on the remaining charge of heroin distribution resulting in death.
Courtney Davis, 37, of Aledo, Ill., and Bradley DeVriese, 23, address unknown, indicted Feb. 18, 2015, charged with distribution of heroin on July 2, 2014, that resulted in death. A jury trial is scheduled for July 6, 2015, for DeVriese; Davis’s trial date is pending.
Kyle Hull, 22, of the 8500 block of Ridgewood Road, Rock Island, Ill., and Curtis Land, 52, of the 2900 block of 11 1/2 Ave., Rock Island, entered pleas of guilty on May 19, 2015, to distributing the fatal dose of heroin that resulted in a death last year. Land also pled guilty to distributing heroin on another occasion. Sentencing has been scheduled for Sept. 17, 2015.
During court hearings and according to court documents, Land admitted that he gave heroin to Hull in exchange for $90 on Aug. 29, 2014, and again on Aug. 30, 2014. Hull admitted that on Aug. 29, 2014, he purchased the heroin from Land, for his friend, and that he supplied a syringe to his friend to inject the heroin. Hull’s friend fell asleep after injecting the heroin in a park in Rock Island and Hull left. Hull checked on his friend later and found him unconscious, but did not call an ambulance. When Hull returned to the park on the morning of Aug. 30, Hull discovered his friend had died. Both Hull and Land admitted that the death was the direct result of the heroin distribution.
The charges against Trent, Hull and Land are the result of investigation by the Rock Island Police Department; Assistant U.S. Attorneys Don Allegro and Meredith DeCarlo are prosecuting the cases.
The charges against Davis and DeVriese were investigated by the Mercer County Sheriff’s Office and the Aledo Police Department. Assistant U.S. Attorneys Don Allegro and Meredith DeCarlo are prosecuting the case.
Charges against Wilson and Waldrip were investigated by the Bettendorf, Iowa Police Department, the Quad Cities Metropolitan Enforcement Group, and the U.S. Drug Enforcement Administration. The cases are being prosecuted by Assistant U.S. Attorneys Don Allegro and Micah Reyner.
The statutory penalty for distribution of heroin resulting in death is a mandatory minimum term of 20 years, and up to life, in prison, and a fine of up to $1,000,000. The statutory maximum penalty for each count of heroin distribution is 20 years in prison and a fine of up to $1,000,000.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Raleigh Identity Thief Sent to Prison for 7 Years for Role in Credit Card and Cigarette Trafficking SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that yesterday in federal court Chief United States District Judge James C. Dever, III sentenced SAIKU GANDO BARRIE, 28, of Raleigh, to serve a total of 7 years in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. BARRIE was also ordered to make restitution to numerous victims.
According to the Indictment, BARRIE was a participant in a five year credit card and cigarette trafficking scheme. The purpose of the scheme was to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which were resold in New York. To carry out the scheme, participants acquired stolen credit card data from other conspirators and encoded the stolen data onto the magnetic strip of what appeared to be legitimate gift cards. Managers in the scheme, including BARRIE, then distributed the cards to “runners” who traveled to various gas stations, convenience stores, and grocery stores located around the state to purchase dozens of cartons of cigarettes at a time using the counterfeit gift cards. The runners returned the cigarettes to the managers in the scheme, who paid the runners a kickback. Managers, including BARRIE, periodically made trips to New York to sell the cigarettes on the black market for cash.
At the sentencing hearing, the Government argued for a 7 year prison sentence based upon a variety of factors, including the fact that the defendant had been involved in five separate arrest events with state authorities over time, but had been undeterred from the activity. The Government also argued that the case involved untold losses and large numbers of victims whose identities had been compromised. The defendant argued, through counsel, the he carried out the offenses in order to eat. The court specifically rejected this argument when it announced the lengthy prison sentence.
Investigation of BARRIE’s case was conducted by the United States Secret Service, with the assistance of the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Quincy Man Charged with Child PornographyRead the Press Release
BOSTON – Scot Letourneau, 42, of Quincy, was arrested and charged in federal court yesterday with receipt and possession of child pornography.
As alleged in the charging documents, law enforcement officers learned that an individual was trading images of child pornography on “Kik Messenger,” an instant messaging app, with another individual in Connecticut. After further investigation, law enforcement officers determined that an Internet IP address used in transmitting the contraband images was associated with Letourneau. On May 21, 2015, law enforcement officers executed a search warrant at Letourneau’s home, and a preliminary review of his mobile phone revealed that he exchanged images of child pornography with others using that phone. Investigators also learned that Letourneau had been convicted more than 10 years ago of distribution of child pornography.
In light of Letourneau’s prior conviction, the charge of receipt of child pornography provides for a mandatory minimum term of 15 years and no greater than 40 years in prison, and the charge of possession of child pornography provides for a mandatory minimum term of 10 years and no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Connecticut State Police, the Quincy Police Department, and the U.S. Coast Guard. The case is being prosecuted by Assistant U.S. Attorney Seth B. Orkand of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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.
Plummer Man Pleads Guilty to Violating the Bald and Golden Eagle Protection ActRead the Press Release
COEUR D'ALENE - Adrian Q. Brown-Sonder, 23, of Plummer, Idaho, pleaded guilty today to violating the Bald and Golden Eagle Protection Act, U.S. Attorney Wendy J. Olson announced. Brown-Sonder was charged by the United States Attorney’s Office on January 26, 2015.
According to the plea agreement, a confidential informant contacted Coeur d’Alene Tribal Police, who in turn contacted the FBI and U.S. Fish and Wildlife Service, and stated that Brown-Sonder killed eagles and other migratory birds. Several witnesses were interviewed and explained that Brown-Sonder admitted to them that he had killed hawks and eagles. A search warrant at the defendant’s residence resulted in the discovery of a large number of eagle and hawk feathers, as well as a wide array of bird skulls and feet. Two bald eagles, two golden eagles, two rough-legged hawks, two red-tailed hawks, and two unspecified dark-morph hawks were identified by a morphology examination.
Chairman of the Coeur d’Alene Tribal Council wrote a letter to U. S. Fish and Wildlife Service setting forth the tribe’s official position regarding hunting of eagles and other birds of prey, categorically condemning the killing of these birds and supporting protective federal laws. The Chairman wrote that even before the passage of these federal laws, “the tribe revered and admired eagles as symbols of strength and courage.”
The maximum punishment for the first violation of the Bald and Golden Eagle Protection Act is punishable by up to one year in prison, five years of probation, a maximum fine of $100,000, and up to one year of supervised release.
Sentencing is set for August 18, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Coeur d’Alene Tribe, U.S. Fish and Wildlife Services and the FBI.
Pasco County Man Federally Charged with Advertising for Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Russell Lee Orr (39, Trinity) has been indicted by a federal grand jury and charged with eight counts of advertising for child pornography. If convicted, he faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison, and a potential life term of supervision. Orr was arrested on May 21, 2015, at his residence in Trinity, Florida. Following his initial court appearance and a detention hearing later that same day, he was ordered detained.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the St. Johns County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ogden Man Sentenced to 150-Months in Federal Prison After Shooting at Special Deputy U.S. MarshalsRead the Press Release
SALT LAKE CITY – Lorenzo Puentes, age 38, of Ogden, pleaded guilty in federal court in Salt Lake City Thursday to assault on a federal officer with a dangerous weapon and discharging a firearm during a crime of violence.
U.S. District Judge Dee Benson accepted the guilty pleas and imposed a sentence of 150 months, including 30 months for the assault conviction and 120 months for discharging the firearm during a crime of violence, to run consecutively to each other. Puentes will be on supervised release for 60 months following the completion of his federal prison sentence. There is no parole in the federal prison system. As a special condition of his supervised release, he was ordered not to have any contact with any member or associate of a criminal street gang or prison gang either in person, by mail, by phone, by e-mail, by third party; or any other means.
Deputy United States Marshals were conducting surveillance at a residence in Ogden, Utah, on the evening of Nov. 4, 2014. Puentes, who had an outstanding no-bail arrest warrant for a weapons violation, was believed to be at the residence. During the evening, Puentes stepped outside of the residence to smoke a cigarette. He encountered three Special Deputy United States Marshals who verbally identified themselves as police officers. They are local police officers assigned to the U.S. Marshal Service’s Violent Fugitive Apprehension Strike Team.
Puentes raised his right arm, pointed a handgun at the deputies, and discharged one round toward the deputies. He then turned and ran from the officers. Deputies pursued Puentes approximately one block down the street and took him into custody. A bullet hole was located in a fence directly behind where the deputies were standing at the time of the gunshot. Law enforcement officers recovered the firearm in a nearby driveway the next morning.
“This incident demonstrates the danger that our task force officers face each day. I am proud of their bravery and their service to our community,” James A. Thompson, U.S. Marshal for the District of Utah, said today.
As a part of his plea agreement Thursday, Puentes admitted that he forcibly assaulted the three Special Deputy U.S. Marshals while they were engaged in their official duties. He admitted pointing the handgun toward them and firing a shot in their direction.
A federal grand jury returned an indictment charging Puentes with the two counts in November.
Monmouth County, New Jersey, Man Sentenced to 121 Months in Prison for Possessing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – A previously convicted sex offender was sentenced today to 121 months in prison for uploading images of child sexual abuse to an online file-sharing network, U.S. Attorney Paul J. Fishman announced.
Layne Bracht, 32, of Highlands, New Jersey, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to an information charging him with one count of possession of child pornography. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:Bracht, who pleaded guilty to possession of child pornography in 2006, admitted that on Oct. 28, 2013, he knowingly placed images and videos depicting child sexual abuse into shared folders that others could access via a peer-to-peer network. Special agents of the FBI executed a search warrant at his residence in Highlands on Jan. 15, 2014 and seized digital evidence that contained numerous videos and images depicting child sexual abuse, including material involving prepubescent minors and sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from Bracht by law enforcement agents working in an undercover capacity on the peer-to-peer network.
In addition to the prison term, Judge Irenas sentenced Bracht to serve 15 years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Richard M. Frankel in Newark, New Jersey, and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencing.
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: Assistant Federal Public Defender Brian P. Reilly Esq., TrentonMoney Launderer for Marijuana Distribution Organization Pleads GuiltyRead the Press Release
Baltimore, Maryland – Richard Drummond, age 38, of Hyattsville, Maryland pleaded guilty today to conspiracy to engage in money laundering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to Drummond’s plea agreement, he conspired with others to launder the proceeds from the sale of marijuana. The conspiracy distributed large quantities of marijuana in Maryland, Pennsylvania, Ohio and elsewhere, which generated hundreds of thousands of dollars in proceeds. Richard Drummond’s role in the conspiracy was to gather proceeds from various locations and deliver the cash to his co-conspirators. The proceeds were then deposited in various bank accounts, often in amounts exceeding $10,000, and transferred elsewhere to pay for the acquisition of additional drugs or to fund other activities by members of the conspiracy. Drummond admitted that he laundered between $200,000 and $400,000.
For example, on September 10, 2013, Drummond drove from Maryland to Ohio and took delivery of a white trash bag from a man at a gas station in Cincinnati, Ohio. Drummond then drove to a Family Dollar store and purchased a bag of rubber bands, and returned to his hotel. The following day, September 11, 2013, Drummond was stopped by officers of the Ohio Highway Patrol after he left Cincinnati. When he was stopped by police, Drummond had $96,500 in cash, separated into bundles held together by rubber bands. Extra rubber bands were also found in the vehicle. Drummond then drove back to Maryland. The next day Drummond met with a co-conspirator at a restaurant in Laurel, Maryland.
On October 31, 2013, Drummond traveled from California to Phoenix, Arizona with a co-conspirator. After police conducted surveillance, the vehicle operated by Drummond was stopped and the police recovered approximately $58,000 in cash, along with approximately 27 cellular phones, and an airline boarding pass in the name of the co-conspirator. Drug notations and tally sheets were also recovered, indicating that Drummond and his co-conspirator were engaged in the distribution of marijuana.
Drummond faces a maximum sentence of 20 years in prison for the money laundering conspiracy. As part of his plea agreement, Drummond will also be required to forfeit the cash seized during the 2013 traffic stops, totaling $154,500, as well as any assets derived from, acquired as a result of, or used to facilitate the commission of the money laundering or drug distribution conspiracies. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 14, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department, the Maryland Transportation Authority Police, IRS-Criminal Investigation and HSI-Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Massena Woman Sentenced to 36 Months Jail in Identity Theft Tax Fraud CaseRead the Press Release
SYRACUSE, NEW YORK –United States Attorney Richard S. Hartunian and IRS Criminal Investigations, New York Field Office, Special Agent in Charge Shantelle P. Kitchen announced that Lacey Jane Hollinger, 27, of Massena, New York was sentenced on May 20, 2015 in connection with her convictions for mail fraud and aggravated identity theft. The case involved false federal income tax returns that resulted in the theft of over $200,000.00 from the IRS.
Hollinger was sentenced by United States District Court Judge David N. Hurd to serve twenty-four (24) months incarceration for aggravated identity theft and a consecutive term of one year and one day for mail fraud. She was also sentenced to serve three (3) years of supervised release following her release from prison and ordered to make restitution to the IRS in the amount of $212,317.00.
Lacey Hollinger was sentenced for her part of the fraud scheme, which took place in 2011 and 2012, when she contacted Massena area residents via Facebook and other electronic media to tell them they were eligible for a tax refund as part of a U.S. Government "stimulus program". No such program existed. Several dozen responded, providing personal identification information (date of birth, social security number, etc.). This information was then used to create fraudulent tax returns generating over $200,000.00 in tax refunds. Hollinger stole these funds after they were electronically deposited in bank accounts she controlled in Arizona.
Co-defendant, Elaine Monique Zavalas-Charres, is scheduled to be sentenced on June 10, 2015 for her role in the scheme.
"Tax fraud is a serious offense which we will continue to aggressively prosecute," said United States Attorney Richard S. Hartunian. "The use of the identities of innocent taxpayers to steal money from the government through the filing of fraudulent tax returns is on the increase. I urge people to take steps to protect themselves from these types of crimes."
How to reduce your risk
• Don’t routinely carry your Social Security card or any document with your SSN on it.
• Don’t give a business your SSN just because they ask – only when absolutely necessary.
• Protect your personal financial information at home and on your computer.
• Check your credit report annually.
• Check your Social Security Administration earnings statement annually.
• Protect your personal computers by using firewalls, anti-spam/virus software, update security patches and change passwords for Internet accounts.
• Don’t give personal information over the phone, through the mail or the Internet unless you have either initiated the contact or are sure you know who is asking.
The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigations (Syracuse, New York Field Office), under the direction of Special Agent in Charge Shantelle P. Kitchen. It was prosecuted by Assistant United States Attorney Richard Southwick.
Manhattan U.S. Attorney Announces the Arrest of the Son of Former President of Honduras for Conspiring to Import Cocaine into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Mark Hamlet, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration, today announced that FABIO PORFIRIO LOBO was arrested in the Republic of Haiti and brought to the United States on charges that he conspired to import cocaine into the United States. LOBO was presented and arraigned before U.S. Magistrate Judge Kevin Nathaniel Fox this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Fabio Lobo attempted to break U.S. law by conspiring to traffic in cocaine. Being the son of a former public official, though, does not mean that you are above the law.”
DEA Special Agent in Charge Mark Hamlet said: “The arrest of Fabio Porfirio Lobo proves, once again, that no one is above the law, Mr. Lobo will be prosecuted in a U.S. court thanks, in large part, to the great cooperation from our international partners, particularly the Government of the Republic of Haiti.”
LOBO’s father, Porfirio Lobo, served as president of Honduras between 2010 and 2014. According to the allegations in the Indictment,[1] which was previously unsealed in Manhattan federal court, LOBO conspired with others from 2009 to 2014 to violate U.S. narcotics laws prohibiting the importation of cocaine. Specifically, the Indictment charges LOBO with conspiring to (i) import five or more kilograms of cocaine into the United States from a foreign country; and (ii) distribute five or more kilograms of cocaine knowing and intending that it would be imported into the United States. The charge in the Indictment carries a maximum penalty of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division and New York Strike Force. Mr. Bharara also thanked the DEA’s Port-au-Prince Country Office, the Government of the Republic of Haiti and its Bureau de Lutte Contre le Trafic Illicite de Stupefiants, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Michael D. Lockard, and Adam Fee are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
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[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on May 21, 2015, and entering pleas of Not Guilty were:
- MICHALENE FAST BUFFALO HORSE, a 61-year-old resident of Browning, appeared on charges of theft of federally provided welfare benefits by fraud and federal welfare assistance fraud. If convicted of the most serious charge contained in the indictment, FAST BUFFALO HORSE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General. PACER Case Reference. 15-23
Appearing before U.S. Magistrate Judge Lynch in Missoula on May 20, 2015, and entering pleas of Not Guilty were:
- JEREMY MICHAEL HANNUM, a 43-year-old resident of Loon Lake, Washington, appeared on charges of felon in possession of a firearm/armed career criminal. If convicted of the charge contained in the indictment, HANNUM faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Highway Patrol. PACER Case Reference. 15-09
Appearing before U.S. Magistrate Judge Johnston in Great Falls on May 19, 2015, and entering pleas of Not Guilty were:
- JASON ARNOLD ROHRICH, a 39-year-old resident of Great Falls, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, ROHRICH faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration and the Russell Country Drug Task Force. PACER Case reference. 15-30
Appearing before U.S. Magistrate Ostby in Billings on May 12, 2015, and entering pleas of Not Guilty were:
- TAJ TESFAYE HAYES, a 38-year-old resident of Oceanside, California, appeared on charges of transportation of a person with intent to engage in criminal sexual activity, interstate travel and use of interstate facility in aid of racketeering and false statements. If convicted of the most serious charges contained in the indictment, HAYES faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, U.S. Marshals Service, Montana Division of Criminal Investigation and the Billings Police Department. PACER Case Reference. 15-50
Appearing before U.S. Magistrate Ostby in Billings on May 11, 2015, and entering pleas of Not Guilty were:
- JOSEPH LEE BROWN, a 19-year-old resident of Miles City, appeared on charges of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, BROWN faces life in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 15-39
Appearing before U.S. Magistrate Johnston in Great Falls on May 11, 2015, and entering pleas of Not Guilty were:
- CHANLER CHAZE WHITEGRASS, a 32-year-old resident of Browning, appeared on charges of strangulation, assault resulting in substantial bodily injury and assault with a dangerous weapon. If convicted of the most serious charges contained in the indictment, WHITEGRASS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-31
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Godfrey Man Pleads Guilty to Multiple Business RobberiesRead the Press Release
On May 22, 2015, Joseph E. Schwank, a twenty-four year old Godfrey, Illinois, man pled guilty in federal district court, in East St. Louis, to one count of Bank Robbery and two counts of Interference with Commerce by Robbery (Hobbs Act Robbery), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Schwank is scheduled for sentencing on September 16, 2015, at which time he faces a potential sentence for each count of up to 20 years in prison and/or a fine of up to $250,000, up to 3 years of supervised release after his prison term, a mandatory special assessment of $100, and restitution.
Court proceedings revealed that on March 2, 2015, Schwank entered a US Bank branch facility in Alton, Illinois, wearing a hunter’s hat and large white sunglasses. He approached a teller and handed her a note which read, "don’t be a hero put all of the money in your cash register on the counter for me robbery." A teller removed cash in the amount of $1,613 from a drawer and placed it in a bag. Schwank picked up the cash and then exited the bank. On February 23, 2015, Schwank entered a Pizza Hut restaurant in Alton, Illinois, wearing a disguise, walked to the counter, handed a bag to an employee, and stated, "Put the money in the bag." Schwank showed this employee a black airsoft gun he had in his waistband upon making this demand. The employee then provided Schwank with approximately $475 in cash. Schwank then fled from the restaurant. In a third robbery, Schwank entered Domino’s Pizza on March 3, 2015, in Bethalto, Illinois, wearing a disguise, and yelled, "This is a robbery. Give me all the money you have." After being handed approximately $53 in cash by an employee, Schwank fled.
This case was investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Four Indicted on Federal Gun Charges in Rock IslandRead the Press Release
Rock Island, Illinois - Four men have been indicted on separate federal gun charges in the Rock Island Division of the United States District Court, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. A federal grand jury returned the indictments earlier this week but the charges remained sealed pending their arrests and court appearances.
Chavonte A. Bragg, 23, of the 900 block of 14th and ½ Street, Rock Island, IL, has been charged in a three-count indictment with possessing crack cocaine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. The indictment alleges that on April 22, 2015, Bragg possessed at least 28 grams of crack cocaine with the intent to distribute. The indictment also alleges Bragg possessed a handgun in furtherance of a drug trafficking crime, and that Bragg possessed that handgun after having been previously convicted of a felony offense. If convicted on all charges, the statutory maximum penalty is life in prison and a fine of up to $8,500,000. The case is being prosecuted by Assistant U.S. Attorney Micah Reyner, and the charges are the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Defendant Bragg appeared in federal court in Rock Island this morning for his initial appearance before U.S. District Judge Sara Darrow. Bragg was also ordered to remain in the custody of the U.S. Marshals Service.
Walker Hampton, 40, of Viola, Ill., has been charged in a four-count indictment with robbery, brandishing a firearm during and in relation to the robbery, possession of stolen firearms, and being a felon in possession of firearms. The indictment alleges that Hampton robbed two employees of the U.S. Post Office in Taylor Ridge, Ill., on Jan. 24, 2015, and that he brandished a handgun during and in relation to the robbery. The indictment further alleges that on Feb. 25, 2015, Hampton possessed stolen firearms and was a felon in possession of firearms. If convicted on all counts, Hampton faces a mandatory minimum sentence of seven years in prison and a statutory maximum of life in prison, and a fine of up to $1,000,000. Hampton was arrested on Feb. 25, on state charges in Mercer County, Illinois and will be transferred to federal custody to be arraigned in U.S. District Court in Rock Island. The case is being prosecuted by Assistant U.S. Attorney Micah Reyner; the charges are the result of an investigation by the Rock Island County Sheriff’s Office, the Mercer County Sheriff’s Office, the U.S. Postal Inspection Service, and the U.S. Bureau of Alcohol, Firearms, Tobacco, and Explosives. Hampton appeared in federal court in Rock Island this morning for his initial appearance before U.S. District Judge Sara Darrow. Hampton was also ordered to remain in the custody of the U.S. Marshals Service.
Kenneth Russell, 34, of the 500 block of 6th Street, Rock Island, Ill., has been charged with being a felon in possession of firearms. The indictment alleges that on April 16, 2015, Russell unlawfully possessed a handgun after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney Micah Reyner, and the charges are the result of an investigation by the Quad City Metropolitan Enforcement Group, the Rock Island Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Jones appeared in federal court in Rock Island this afternoon for his initial appearance before U.S. District Judge Sara Darrow.
Brandon Willis McNeal, 24, of the 1600 block of 12th Avenue, Moline, Ill., was charged by the grand jury earlier this week with being a felon in possession of a firearm. The indictment remained sealed pending McNeal’s arrest. The indictment alleges that on Apr. 27, 2015, McNeal unlawfully possessed a handgun after having previously been convicted of a felony offense. If convicted, the statutory maximum penalty is ten years in prison, and a fine of up to $250,000. The case is being prosecuted by Assistant U.S. Attorney John Mehochko, and the charges are the result of an investigation by the Moline Police Department and the Federal Bureau of Investigation. McNeal appeared in federal court in Rock Island this afternoon for his initial appearance before U.S. Magistrate Judge Stephen B. Jackson, Jr. McNeal was also ordered to remain in the custody of the U.S. Marshals Service.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Former Postal Worker Charged with Stolen Identity Refund FraudRead the Press Release
NEWARK, N.J. – A former postal worker who allegedly used stolen identities to assist in the filing of fraudulent tax returns to generate false U.S. Treasury checks was charged today for his involvement in the scam, U.S. Attorney Paul J. Fishman announced.
Luis Martin, 24, of Trenton, New Jersey, was arrested this morning by special agents of IRS-Criminal Investigation, postal inspectors from the U.S. Postal Inspection Service, special agents of the U.S. Postal Service Office of Inspector General, and special agents of the U.S. Secret Service. He is charged by complaint with one count of stealing government funds. He is scheduled to make his initial appearance today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
Background on Stolen Identify Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund.
- They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access.
- With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control.
The Investigation
From June 2014 through February 2015, Martin allegedly caused to be filed 13 fraudulent Form 1040s, claiming $75,380 in fraudulent tax refund payments from the U.S. Treasury. He allegedly used his position as a postal worker in Monmouth County, New Jersey, to facilitate the scheme.
The count of theft of government funds with which Martin is charged is carries a maximum potential penalty of 10 years in prison and a fine of up to $250,000, or twice the gain or loss caused by the offense.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Monica S. Weyler; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli, with the investigation leading to today’s arrest and charge.
The government is represented by Assistant U.S. Attorneys Melissa Wangenheim and Elisa Wiygul of the General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the Defendant is considered innocent unless and until proven guilty.
Defense counsel: Carl J. Herman Esq., West Orange, New Jersey
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
Former Plymouth Finance Director Sentenced to 30 Months in Prison for Embezzling More Than $800KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. BERTNAGEL, 41, of Thomaston, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for embezzling more than $800,000 from the Town of Plymouth. Judge Meyer also ordered BERTNAGEL to perform 1,500 hours of community service while on supervised release.
According to court documents and statements made in court, from October 2011 through October 2014, BERTNAGEL was employed as the Finance Director for the Town of Plymouth. During that time period, BERTNAGEL issued 207 checks totaling approximately $808,030 from the Town’s payroll account to himself. BERTNAGEL used the embezzled funds to make mortgage payments, pay credit card bills, fund home improvement projects and purchase more than $100,000 in coins, stamps and other collectibles. He also converted more than $182,000 of the stolen funds by way of cashed checks, ATM withdrawals and money orders.
In addition, BERTNAGEL’s federal tax returns for the 2012 and 2013 tax years failed to report any of his embezzled income, resulting in a tax loss to the government of $145,564 for those two years. BERTNAGEL also did not file a tax return with the IRS for the 2011 tax year.
BERTNAGEL was arrested on January 20, 2015. On February 20, 2015, he pleaded guilty to one count of theft from a local government receiving federal funds and one count making and subscribing a false tax return.
Judge Meyer ordered BERTNAGEL to make restitution in the amount of $808,029.94 to the Town of Plymouth, and to cooperate with the IRS to pay all outstanding taxes, penalties and interest. BERTNAGEL also has agreed to forfeit more than $45,000 that he held in bank accounts, and assorted jewelry, stamps, coins and other collectibles that were seized on the date of his arrest.
This matter was investigated by the Connecticut Public Corruption Task Force, which includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report corrupt activity to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).
Former Deputy Court Clerk Pleads to Embezzling $24,000 from GovernmentRead the Press Release
Memphis, TN – A former Deputy Court Clerk pled guilty Thursday to embezzling more than $24,000 from the City of Memphis during a year-long scheme.
According to the indictment, from December 1, 2013 to December 1, 2014, Tammy Brooks-Carpenter, a Deputy Court Clerk at the time, voided 248 payments made by customers to the City Court Clerk’s office for traffic fines. By doing so, she was able to steal $24,011.50 of the approximate $43,230.50 paid to the government over that period.
Brooks-Carpenter’s illegal actions placed her in violation of Title 18, United States Code, Section 666(a)(1)(A), which makes it a crime to embezzle money from a local government entity that receives in excess of $10,000 of federal assistance during a 12-month period.
During Brooks-Carpenter’s employment at the City Court Clerk’s Office, her duties included accepting payments from customers who were issued motor vehicle citations by the City of Memphis. Brooks-Carpenter was required to enter all transactions into the Electronic Ticket Information System (ETIMS), which recorded the payments. But instead of submitting full payments to the ETIMS System, she voided them and entered in smaller amounts. The remaining funding would then be converted for Brooks-Carpenter’s personal use.
As a result of Brooks-Carpenter not entering full payments, customers who paid their traffic tickets would receive a "Blue Letter," essentially a written message sent out by the City of Memphis to individuals who haven’t paid a fine in the designated timeframe.
Brooks-Carpenter faces up to 10 years in prison and a fine of up to $250,000 when sentenced.
U.S. District Judge John T. Fowlkes, Jr., who presided over the court, set sentencing for August 21, 2015 at 10 a.m. Assistant U.S. Attorney Brian K. Coleman is representing the government in this case.
The Federal Bureau of Investigation, Memphis Police Department, and the Tarnished Badge Task Force investigated this case.
Facebook Predator Sentenced to 29 Years in Prison for Child Pornography and Sexual Extortion OffensesRead the Press Release
SACRAMENTO, Calif. — Jordan James Kirby, 23, of Paradise, was sentenced today by United States District Judge Garland E. Burrell Jr. to 29 years in prison for production of child pornography and enticement of a minor, United States Attorney Benjamin B. Wagner, FBI Special Agent in Charge Monica M. Miller, Butte County District Attorney Michael L. Ramsey, and Paradise Police Chief Gabriela F. Tazzari‑Dineen announced.
According to court documents, between 2011 and 2013, Kirby used various online identities on Facebook to solicit women and juvenile girls for lascivious and sexually explicit photographs, which he would then use them to extort them. Generally, Kirby’s initial posts stated that he was an agent for a modeling agency and offered thousands of dollars to girls for photographs of themselves in their underwear, bikinis, or various stages of undress. As an inducement, Kirby told the girls that he had come into a large amount of money, and sent pictures of himself holding a large wad of cash, or a large amount of cash spread on his computer. After receiving the desired photos, Kirby used the embarrassing pictures to extort or attempt to extort sex acts from victims. On March 6, 2015, Kirby pleaded guilty to two counts of enticement of a minor, three counts of attempted production of child pornography, and one count of attempted enticement of a minor. The victims were between the ages of 10 and 15.
U.S. Attorney Wagner said: “While always reprehensible, on-line exploitation and extortion of under-aged victims inflicts very real and lasting harm upon our community’s most vulnerable victims. We will continue to work together with our federal and local law enforcement partners to bring such predators to justice.”
“Kirby took unlawful and inappropriate pictures of multiple children, using social media as a platform for his crimes, and then extorted an threatened children to obtain more photographs. His is conduct is reprehensible,” said Supervisory Special Agent Monica M. Miller. “Kirby committed his crimes by exploiting the anonymity and distance of internet communications. This case highlights the need for family dialogue about the potential dangers of online interaction. Social media platforms present safety risks that are akin to any public space and all users should know the steps to take to report suspicious activity. In this case, prompt response from the victims’ parents enabled law enforcement to identify Kirby, ceasing his ability to continue to victimize others. We thank our law enforcement partners for the collaborative effort to identify Kirby and ensure that he faced justice for his crimes.”
District Attorney Michael L. Ramsey said: “I appreciate the collaborative work with both the local and federal agencies that resulted in taking a predator off of the streets for the next twenty-nine years.”
Chief Tazzari-Dineen said: “The Paradise Police Department considers the safety of all citizens to be a top priority and it is especially true of children. A predator of young children has been removed from our community. We appreciate the collaboration and assistance of the local FBI Office and the Butte County District Attorney’s Office with this investigation.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Paradise Police Department and the Butte County District Attorney’s Office. Assistant U.S. Attorney Sherry Haus prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
FBI Concludes Lengthy Investigation of Corrections Corporation of AmericaRead the Press Release
BOISE – After a fifteen-month investigation by the Federal Bureau of Investigation, the U.S. Attorney’s Office for the District of Idaho announced today that it is declining prosecution under federal public corruption statutes and federal criminal fraud statutes of any actors in connection with the Corrections Corporation of America (CCA) falsifying staffing rosters and understaffing at the Idaho Correctional Center. CCA operated the Idaho Correctional Center under a contract with the State of Idaho until the end of June 2014.
The FBI initiated an investigation in March 2014 to determine whether CCA or its employees defrauded the State of Idaho by falsifying staffing rosters and understaffing shifts. The investigation included the years from 2008 to early 2014. The FBI also investigated whether any state actors sought to delay, hinder or corruptly influence a state criminal investigation into CCA’s staffing practices and subsequent billings to the State of Idaho under the ICC contract. The Idaho State Police, which initiated an investigation in February 2014 when directed to do so by Governor C.L. “Butch” Otter, discontinued their investigation after meeting with the FBI in March 2014.
“The FBI’s detailed and thorough investigation did not produce evidence of a federal criminal violation,” announced U.S. Attorney Wendy J. Olson. “Rather, the evidence showed that the false entries and understaffing could be attributed only to relatively low-level CCA employees. No evidence obtained during the investigation showed that any CCA employee at the assistant warden level or above participated in creating the falsified rosters, or affirmatively knew that rosters were falsified at the time they were falsified. Likewise, no evidence showed that the false entries were made by the low-level employees with the intent to defraud the state of Idaho of money or property, as is required under the federal criminal fraud statutes.”
Olson continued, “In addition, no evidence obtained during the FBI investigation showed that state employees at the Idaho State Police, the Idaho Department of Correction or the Governor’s Office sought to delay, hinder or corruptly influence a state criminal investigation, as is required under the federal public corruption statutes. Rather, the evidence shows a series of miscommunications and uncorrected assumptions that lead to incorrect reports in the media and incorrect statements in related civil federal court proceedings that the Idaho State Police were conducting a criminal investigation, when in fact they were not.”
The media reports and court statements were made prior to February 2014 when Governor Otter ordered the Idaho State Police to conduct an investigation. “My office and the FBI met early on with the Idaho State Police detectives assigned in 2014 to conduct a criminal investigation,” said Olson. “Following that meeting, to ensure an investigation in which the public could have great confidence and to avoid any appearance of a conflict of interest in investigating activities of the Idaho State Police and other state agencies, we all agreed that it would be best for the FBI to initiate an investigation and for the Idaho State Police to discontinue their investigation. I commend the Idaho State Police and the Idaho Department of Correction for recognizing that a neutral, independent federal investigation was the best course of action in this matter. We have conducted that investigation, reviewed its results, and concluded that there is insufficient evidence to prove any federal criminal charges beyond a reasonable doubt. In such situations, we are obligated to decline prosecution.”
The FBI’s investigation included review of voluminous documents obtained from the Idaho State Police, the Idaho Department of Correction, the Governor’s Office and other state agencies. It also included review of documents obtained from CCA, depositions and pleadings in the related civil proceedings, and interviews of numerous witnesses.
“In assessing whether CCA, or anyone at CCA, violated federal fraud statutes by falsifying staffing rosters, the FBI and assigned prosecutors in this office looked closely at the contract between the state and CCA,” said Olson. “Under the contract’s terms, the state did not directly reimburse CCA for guard or staff hours worked. Rather, all evidence showed that the reimbursement was based on the number of inmates. Where contract terms, such as adequate staffing, were violated, the state had the option of obtaining liquidated damages for the contract violations. Evidence showed that CCA and ICC employees responsible for billing were unaware of the staffing issues or the falsified rosters. This evidence supports the finding that neither CCA nor its employees acted with the intent to defraud.”
The state of Idaho entered into a $1 million civil settlement with CCA in February 2014, prior to Governor Otter directing the Idaho State Police to conduct a criminal investigation. Prior to February 2014, media outlets reported that the Idaho State Police were conducting a criminal investigation. Those reports were based in part on an Idaho Department of Correction employee testifying in federal court in August of 2013 that the Idaho State Police were conducting such an investigation. Throughout 2013, Idaho Department of Correction and Idaho State Police representatives met regularly to address the inaccurate rosters and understaffing at ICC. In addition, the state of Idaho had retained independent auditing firm KPMG to conduct an audit of the staffing entries for 2012. “The evidence obtained during the investigation showed that although Idaho State Police representatives in the meetings never affirmatively represented that they were conducting a criminal investigation and consistently referred to the matter as civil, some Idaho Department of Correction employees believed that a criminal investigation was ongoing based on other statements and actions of Idaho State Police representatives,” said Olson. “Representatives from neither agency made further inquiry or attempted to publicly correct this incorrect assumption. While these miscommunications ultimately gave rise to suspicion of an effort to delay, hinder or influence a state criminal investigation, such miscommunications, unsupported by any other evidence, do not rise to the level of criminal conduct.”
Olson noted that the FBI investigation did not focus on whether understaffing resulted in additional violence within CCA, as alleged in various civil lawsuits brought against CCA and ICC. “The investigating FBI agents were certainly familiar with the allegations in the civil lawsuits but did not identify any evidence that would support a criminal civil rights charge,” said Olson. Olson noted that the FBI had previously conducted an investigation into inmate-on-inmate assaults at the Idaho Correctional Center and that her office had declined prosecution in October 2013 of any criminal civil rights charges based on evidence gathered in that separate investigation.
Everett Man Sentenced to Seven Years in Prison for Role as Supplier of Highly Pure MethamphetamineRead the Press Release
A 27–year-old Everett man who supplied highly pure methamphetamine to a drug trafficking organization operating in Western Washington was sentenced today in U.S. District Court in Seattle to seven years in prison and four years of supervised release for conspiracy to distribute methamphetamine, announced U.S. Attorney Annette L. Hayes. JAIME ARAUJO supplied the highly pure methamphetamine to a number of different drug dealers operating in Whatcom, Skagit and Snohomish Counties. ARAUJO was arrested in March 2014 following a lengthy wiretap investigation of heroin and methamphetamine trafficking. In ARAUJO’s residence law enforcement recovered highly pure methamphetamine, more than $15,000 in cash and evidence of multiple wire transfers of money to Mexico. At sentencing U.S. District Judge Robert S. Lasnik said ARAUJO “had a serious part in a drug trafficking organization wreaking havoc in the community.”
According to records filed in the case, ARAUJO was identified in court authorized wire-taps as the supplier of highly pure methamphetamine to various drug dealers. In recorded phone calls ARAUJO used coded phrases as he talked with others about drug deals and drug smuggling. In one instance he described bringing kilograms of methamphetamine north in a suitcase on a bus. Evidence recovered at ARAUJO’s residence revealed he had been transferring drug money to Mexico, and planned to take drug cash to Mexico to purchase properties. Even after his arrest and incarceration at the Federal Detention Center at SeaTac, ARAUJO made statements on recorded telephone calls that indicate he was still trying to control his drug operation.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the Drug Enforcement Administration (DEA, Bellingham Resident Office), the Whatcom County Drug and Gang Task Force, Skagit County Inter-local Drug Enforcement Unit, Snohomish Regional Drug and Gang Task Force, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and Customs and Border Protection Air and Marine Division.
The case was prosecuted by Assistant United States Attorneys Steven Masada and Karyn Johnson.
Detroit-Area Neurosurgeon Admits Causing Serious Bodily Injury to Patients in $11 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area neurosurgeon pleaded guilty today in two separate criminal cases that resulted in serious bodily injury to his patients and more than $11 million in Medicare, Medicaid and private insurance companies.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Service Office of Inspector General (HHS-OIG), 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 Special Agent in Charge Marlon Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Detroit Field Office made the announcement.
“Disregarding his Hippocratic oath to do no harm, Dr. Sabit enriched himself by performing unnecessary, invasive spinal surgeries and implanting costly and unnecessary medical devices, all at the expense of his patients’ health and welfare,” said Assistant Attorney General Caldwell. “Doctors who sell their medical judgment and ethics for personal profit endanger the lives and safety of vulnerable patients who count on their advice to make life-altering decisions. The Criminal Division of the Department of Justice will continue to prioritize the prosecution of doctors whose criminal behavior puts patients at risk.”
“This case of health care fraud is particularly egregious because Dr. Sabit caused serious bodily injury to his patients by acting out of his own greed instead of the best interests of his patients,” said U.S. Attorney McQuade. “Not only did he steal $11 million in insurance proceeds, but he also betrayed his trust to patients by lying to them about the procedures that were medically necessary and that were actually performed.”
Aria O. Sabit, M.D., 39, of Birmingham, Michigan, entered his guilty pleas in both criminal cases at a hearing before U.S. District Judge Paul D. Borman of the Eastern District of Michigan. Sabit pleaded guilty to four counts of health care fraud, one count of conspiracy to commit health care fraud and one count of unlawful distribution of a controlled substance, resulting in losses to Medicare, Medicaid and various private insurance companies. A sentencing hearing is scheduled for Sept. 15, 2015.
According to court documents, Sabit was a licensed neurosurgeon who owned and operated the Michigan Brain and Spine Physicians Group with various locations in the Eastern District of Michigan, including Southfield, Michigan, Clinton Township, Michigan, and Dearborn, Michigan, which opened in approximately April 2011.
During his guilty plea today, Sabit admitted that he derived significant profits by convincing patients to undergo spinal fusion surgeries with instrumentation (meaning specific medical devices designed to stabilize and strengthen the spine), which he never rendered, and subsequently billing public and private healthcare benefit programs for those fraudulent services.
Sabit further admitted he operated on patients and dictated in his operative reports—that he knew would later be used to support his fraudulent insurance claims—that he had performed spinal fusion with instrumentation, which he never performed. This invasive surgery caused serious bodily injury to the patients. Sabit admitted that his operative reports and treatment records contained false statements about the procedures performed, and the instrumentation used in the procedures. Sabit also admitted that, on occasion, he would implant cortical bone dowels and falsely dictate in his operative reports that he had implanted instrumentation. Sabit, then fraudulently billed public and private health care programs for instrumentation, when in fact the implants were tissue. Sabit admitted he failed to render services in relation to lumbar and thoracic fusion surgeries, including in certain instances, billing for implants that were not provided.
Sabit also admitted that, prior to moving to Michigan, he was a resident of Ventura, California, and a licensed neurosurgeon in California. He admitted that in approximately February 2010, he became involved with Apex Medical Technologies LLC (Apex) while he was on the staff of a California hospital.
Apex was owned by another neurosurgeon and three non-physicians who operated Apex as a physician-owned distributorship and paid neurosurgeons lucrative illegal kickbacks tied directly to the volume and complexity of the surgeries that the surgeons performed, and the number of Apex spinal implant devices the surgeons used in their spine surgeries.
In exchange for the opportunity to invest in Apex and share in its profits, Sabit admitted that he agreed to convince his hospital to buy spinal implant devices from Apex and use a sufficient number of Apex spinal implant devices in his spine surgeries. Sabit further admitted that he and Apex’s co-owners used Apex to operate an illegal kickback scheme. In doing so, they concealed Sabit’s involvement in Apex from outsiders. Sabit then required the hospitals and surgical centers where he and his fellow neurosurgeon performed surgeries to purchase spinal implant devices from Apex.
Sabit admitted that his involvement in Apex, and the financial incentives provided to him by Apex and his co-conspirators, caused him to compromise his medical judgment and cause serious bodily injury to his patients by performing medically unnecessary spine surgeries on some of the patients in whom he implanted Apex spinal implant devices. Sabit admitted that on a few occasions, the money he made from using Apex spinal implant devices motivated him either to refer patients in for spine surgery who did not medically need surgery or refer his patients for more complex surgeries, such as multi-level spine fusions, that they did not need.
Sabit also admitted that the financial incentives provided to him by Apex and his co-conspirators caused him to “over instrument” his patients (meaning Sabit used more spinal implant devices than were medically necessary to treat his patients) in order to generate more sales revenue for Apex, which resulted in serious bodily injury to his patients.
The Michigan case was investigated by the FBI, HHS-OIG and ICE. The California case—which was subsequently transferred to the Eastern District of Michigan—was investigated by the FBI and HHS-OIG. The Michigan case is being prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Philip A. Ross of the Eastern District of Michigan. The California case 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 Eastern District of Michigan, and is being prosecuted by Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Dustin Davis and Blanca Quintero of the Criminal Division’s Fraud Section.
Sabit is also a defendant in two civil False Claims Act cases brought by the Department of Justice in the U.S. District Court of the Central District of California.
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’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Department of Justice Establishes Policy Guidance on Domestic Use of Unmanned Aircraft SystemsRead the Press Release
The Department of Justice issued agency-wide policy guidance today on the use of Unmanned Aircraft Systems (UAS) that sets standards of use and management controls of UAS by the department and its components.
UAS are used at times by law enforcement agencies as cost-effective, efficient and potentially life-saving tools to support public safety efforts. The policy highlights protections of privacy, civil rights and liberties and makes clear that UAS use must be consistent with the protections afforded by the U.S. Constitution. Justice Department components are barred from using UAS solely for the purpose of monitoring activities protected by the First Amendment, and components can only operate UAS on properly authorized investigations and activities. The collection, retention and dissemination of information collected by UAS is also subject to Privacy Act protections.
To ensure accountability, the department will also require that personnel operating UAS are appropriately trained and supervised, including but not limited to a mandatory training on the department’s policies. Annual privacy reviews will be conducted to ensure compliance with the department policy, existing laws and regulations and to identify potential privacy risks.
The guidance issued today is a result of various discussions and research – and meetings will continue to be held at least twice a year to ensure that the department strikes the appropriate balance between its law enforcement and national security missions and respect for civil rights and civil liberties.
Justice Department UAS Policy
Court approves three-year plan to complete desegregation in Avoyelles Parish schoolsRead the Press Release
WASHINGTON – Last night, the U.S. District Court for the Western District of Louisiana approved a comprehensive consent order filed by the Justice Department, the Avoyelles Parish School Board and private plaintiffs in United States v. Avoyelles Parish School Board. The consent order requires the school district to implement remedies in student assignment and discipline to complete the desegregation of the Avoyelles Parish school system.
The Avoyelles Parish School Board serves 5,400 students and has been operating under a continuing duty to desegregate its schools since 1967.
The court retained jurisdiction over the case to ensure that the school board fully implements the relief required by the consent order and complies with applicable federal law. The district may move for dismissal of the case if it successfully complies with the consent order for three years, during which time the school board must:
- Implement a new student assignment and transfer policy, including better address verification measures;
- Adopt a uniform admission process for the school system’s charter school along with a rigorous publicity and outreach program directed toward African-American students;
- Strengthen advertising and marketing of the New Tech magnet program, which is located at a majority African-American high school;
- Conduct a comprehensive study to determine whether a magnet program can be established at a racially identifiable African-American elementary school and take proactive steps to encourage white students to transfer to the school;
- Ensure classes within schools are desegregated;
- Revise discipline policies to reduce racial disparities in the use of exclusionary discipline and expand the school board’s positive behavior interventions and supports program; and
- Hire an experienced consultant to monitor and report annually on the school board’s efforts to comply with the consent order.
consent_order_ecf_330_05-21-15.pdf (2.63 MB)
“The Avoyelles Parish School Board’s unanimous vote to approve the consent order reflects our shared goal of securing equal educational opportunities for all students,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We are confident that this agreement will bring meaningful progress, and we look forward to working closely with the School Board over the next three years to bring this case to a successful close.”
“My office is committed to ensuring that this district’s schools provide all students with equal educational opportunities,” stated U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “I applaud the Avoyelles Parish School Board for its efforts to eliminate the effects of state-mandated segregation. It is our goal to assist in any way possible so that the Consent Order will work to provide all students in Avoyelles Parish with a quality education, a safe and fruitful learning environment, and academic offerings to help them achieve their dreams.”
Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Court Approves Three-Year Plan to Complete Desegregation in Avoyelles Parish, Louisiana SchoolsRead the Press Release
Last night, the United States District Court for the Western District of Louisiana approved a comprehensive consent order filed by the Justice Department, the Avoyelles Parish School Board, and private plaintiffs in United States v. Avoyelles Parish School Board. The consent order requires the school district to implement remedies in student assignment and discipline to complete the desegregation of the Avoyelles Parish school system.
The Avoyelles Parish School Board serves 5,400 students and has been operating under a continuing duty to desegregate its schools since 1967.
The court retained jurisdiction over the case to ensure that the school board fully implements the relief required by the consent order and complies with applicable federal law. The district may move for dismissal of the case if it successfully complies with the consent order for three years, during which time the school board must:
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Implement a new student assignment and transfer policy, including better address verification measures;
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Adopt a uniform admission process for the school system’s charter school along with a rigorous publicity and outreach program directed toward African-American students;
-
Strengthen advertising and marketing of the New Tech magnet program, which is located at a majority African-American high school;
-
Conduct a comprehensive study to determine whether a magnet program can be established at a racially identifiable African-American elementary school, and take proactive steps to encourage white students to transfer to the school;
-
Ensure classes within schools are desegregated;
-
Revise discipline policies to reduce racial disparities in the use of exclusionary discipline and expand the school board’s positive behavior interventions and supports program; and
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Hire an experienced consultant to monitor and report annually on the school board’s efforts to comply with the consent order.
“The Avoyelles Parish School Board’s unanimous vote to approve the consent order reflects our shared goal of securing equal educational opportunities for all students,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We are confident that this agreement will bring meaningful progress, and we look forward to working closely with the School Board over the next three years to bring this case to a successful close.”
“My office is committed to ensuring that this district’s schools provide all students with equal educational opportunities,” stated U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “I applaud the Avoyelles Parish School Board for its efforts to eliminate the effects of state-mandated segregation. It is our goal to assist in any way possible so that the Consent Order will work to provide all students in Avoyelles Parish with a quality education, a safe and fruitful learning environment, and academic offerings to help them achieve their dreams.”
Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
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Chula Vista Man Guilty of International Trafficking in over $100,000 Worth of Counterfeit World Cup JerseysRead the Press Release
SAN DIEGO – This afternoon Clemente Leon of Chula Vista pled guilty to selling hundreds of thousands of dollars’ worth of counterfeit World Cup soccer jerseys over the internet.
In pleading guilty, Leon admitted that in August of 2013, approximately four months after he began importing soccer jerseys and other clothing from China, he received a Cease and Desist letter from Nike. Leon acknowledged that after learning that the jerseys were counterfeit, he nonetheless continued to import the counterfeit soccer jerseys, and then placed counterfeit World Cup team patches and stencils with the names of World Cup players on the backs of the jerseys, in his garage in Chula Vista. Leon admitted that he sold the jerseys bearing the unauthorized and counterfeit trademarks throughout the United States over the internet on his own website, www.playerasfutbol.com, and via Amazon.com, and received payment via PayPal and other means. Leon agreed that the value of the counterfeit goods he sold was between $120,000 and $320,000. As part of his plea, he agreed to forfeit $50,000 of proceeds from the sale of the counterfeit jerseys.
Leon is scheduled to be sentenced on August 17, 2015, at 8:30 a.m. before the Hon. John A. Houston, United States District Court Judge.
DEFENDANTS Case Number: 15cr1326-JAH Clemente Leon Age: 37Chula Vista, California
CHARGESImportation Contrary to Law—Title 18, United States Code, Section 545
INVESTIGATING AGENCIES
Maximum penalty: 20 years’ imprisonment and $250,000 fineHomeland Security Investigations
Chinese National Convicted of Immigration FraudRead the Press Release
ALEXANDRIA, Va. – Kaixiang Zhu, 44, of Bentonville, Arkansas, was convicted on Wednesday by a federal jury on charges of conspiracy to commit immigration fraud and immigration fraud, stemming from a 2011 attempt at unlawfully obtain a green card.
Zhu was indicted on June 14, 2012. According to court records and evidence presented at trial, Homeland Security Investigations conducted an undercover operation which offered green cards for sale in Northern Virginia hotels. On Aug. 25, 2011, Zhu and others came to a hotel in Crystal City where they were told on videotape that the cards were being obtained unlawfully through a corrupt public official and if they wished to purchase a card they would be fingerprinted. Zhu had been present in the United States without legal status for 10 years and agreed to be fingerprinted despite the warning that doing so was a crime. A total of 24 individuals were charged in 2012. Zhu was located and apprehended in Rogers, Arkansas, at the end of last year.
Zhu faces a maximum penalty of 10 years in prison when sentenced on Aug. 14, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Washington, DC; and Maggie A. DeBoard, Chief of the Herndon Police Department, made the announcement after the verdict was accepted by U.S. District Judge T.S. Ellis, III.
This case was investigated by Homeland Security Investigations and the Herndon Police Department. Special Assistant U.S. Attorney Caroline Friedman and Assistant U.S. Attorney Ronald L. Walutes, Jr., prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cr-258.
Chemung County Man Sentenced for Receiving, Possessing and Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Terry M. Dickinson, 56, of Millport, NY, who was convicted following a jury trial of distribution of child pornography, receipt of child pornography and possession of child pornography, was sentenced to 40 years in prison and lifetime supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the prosecution of the case, stated that an undercover agent in Elmira, NY, downloaded child pornography from the defendant, through a peer-to-peer software program, in June and July of 2010. Agents executed a search warrant at Dickinson’s residence in August 2010 and seized items of digital media, including computers, thumb drives and memory cards. A forensic analysis determined that the memory cards contained images and videos of child pornography.
The search warrant led to the discovery of a notebook containing handwritten notes that appeared to detail the defendant's sexual encounters with children.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, investigators and troopers of the New York State Police, Troop E, under the direction of Major Craig Hanesworth; and deputies and Investigators from the Chemung County Sheriff’s Office under the direction of Sheriff Christopher Moss.