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14 May 2015
Fort Myers Man Indicted for Check-Kiting Scheme and Obstruction of JusticeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Roger Eugene Hagood (43, Fort Myers) with 13 counts of bank fraud and two counts of obstruction of justice. If convicted, he faces a maximum penalty of 30 years in federal prison for each bank fraud count and up to 20 years’ imprisonment for each obstruction of justice count. The indictment also notifies Hagood that the United States is seeking a forfeiture money judgment in the amount of $1,592,121.00, the proceeds of the bank fraud offenses.
According to the indictment, Hagood operated Coral Palm Auto Sales, a used car dealership. Coral Palm Autos Sales received financing through a third-party lender to purchase automobiles. Vehicle titles were provided as security to procure the loans, and loan payments were made using proceeds from the vehicle sales. Once each loan was paid in full, the third-party lender would release the vehicle titles used to secure the loan back to Coral Palm Auto Sales.
In November and December 2011, Hagood allegedly engaged in a check-kiting scheme by writing 13 checks on his business checking account, made payable to the third-party lender, knowing that the account lacked sufficient funds to cover the checks.
As a result, the third-party lender wrote new loan checks on its account, made payable to Coral Palm Auto Sales, based on Hagood’s worthless checks. According to the indictment, Hagood’s scheme caused federally insured financial institutions to suffer significant financial losses.
The indictment also alleges that on March 29, 2015, Hagood concealed and attempted to destroy documents and records in an effort to obstruct an official proceeding and federal investigation.
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 unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Number Two of Los Angeles Sheriff’s Department Charged with Obstructing Federal Investigation into Misconduct at County JailsRead the Press Release
Paul Tanaka, 56, who was the second in command of the Los Angeles Sheriff’s Department (LASD) and William Thomas Carey, 56, who oversaw internal criminal investigations at the LASD, have been indicted on obstruction of justice charges for allegedly directing efforts to quash a federal investigation into corruption and civil rights violations by sheriff’s deputies at two downtown jail complexes.
A federal grand jury yesterday returned a five-count indictment against Tanaka and Carey, who allegedly participated in a broad conspiracy to obstruct the investigation, a scheme that started when the sheriff’s department learned that an inmate at the Men’s Central Jail (MCJ) was an informant for the Federal Bureau of Investigations (FBI). Tanaka and Carey allegedly directed, oversaw and participated in a conspiracy that last year resulted in the conviction of seven other former LASD deputies.
The obstruction of justice case was announced at a news conference this morning by Acting U.S. Attorney Stephanie Yonekura for the Central District of California and Assistant Director in Charge David Bowdich for the FBI’s Los Angeles Field Office.
Tanaka and Carey are charged with conspiracy to obstruct justice and each is named in one count of obstruction of justice. Carey is charged with two counts of making false declarations for perjuring himself last year during the trials of co-conspirators.
Tanaka was the undersheriff, the number two in the LASD, until 2013 and he ran an unsuccessful campaign for sheriff last year. Carey left LASD after reaching the rank of captain and heading the Internal Criminal Investigations Bureau.
Tanaka and Carey surrendered themselves to the FBI early this morning and the two men are expected to be arraigned on the indictment this afternoon in U.S. District Court.
According to the indictment, the two defendants were well aware of “problem deputies” at the jails, “allegations of rampant abuse of inmates” and “insufficient internal investigations” into deputy misconduct. But against this backdrop, Tanaka allegedly told deputies assigned to the jails to work in a “gray area” and that he thought that the LASD Internal Affairs Bureau should be reduced from 45 investigators to just one.
The scheme to thwart the federal investigation allegedly started when deputies in August 2011 recovered a mobile phone from an inmate in MCJ, linked the phone to the FBI and determined that the inmate was an informant for the FBI who was cooperating in a federal corruption civil rights investigation. The phone was given to the inmate by a corrupt deputy, who subsequently pleaded guilty to federal bribery charges.
Alarmed by the federal investigation, members of the conspiracy, guided by Tanaka and Carey, took affirmative steps to hide the cooperator from the FBI and the U.S. Marshals Service, which was attempting to bring the inmate to testify before a federal grand jury in response to an order issued by a federal judge. The indictment alleges that as part of the conspiracy, the deputies altered records to make it appear that the cooperator had been released. They then re-booked the inmate under a different name, moved him to secure locations, prohibited FBI access to the informant and then told the cooperator that he had been abandoned by the FBI.
Over the course of several weeks, members of the conspiracy allegedly attempted to obtain an order from a Los Angeles Superior Court judge that would have compelled the FBI to turn over information about its investigation to LASD. After the judge refused to issue such an order because he had no jurisdiction over the federal law enforcement agency and even though it was clear that the FBI was properly acting in the course of a lawful investigation, Tanaka and Carey met to discuss having two sergeants approach the lead FBI case agent. Soon thereafter, the sergeants confronted the agent at her residence in an attempt to intimidate her. The sergeants threatened the agent with arrest and later reiterated this threat to her supervisor, stating that the agent’s arrest was imminent.
“As the allegations demonstrate, Tanaka had a large role in institutionalizing certain illegal behavior within the sheriff’s department,” said Acting U.S. Attorney Yonekura. “This case also illustrates how leaders who foster and then try to hide a corrupt culture, will be held accountable, just like their subordinates.”
The indictment also alleges that Tanaka and Carey oversaw co-conspirators who told fellow deputies not to cooperate in the federal investigation. Members of the conspiracy allegedly engaged in witness tampering by telling fellow deputies that the FBI would lie, threaten, manipulate and blackmail them to obtain information about the sheriff’s department.
“The allegations in the indictment include cover-ups, diversionary tactics, retribution and a culture generally reserved for Hollywood scripts,” said Assistant Director in Charge Bowdich. “The public held the defendants to the highest standard, but, instead, they spent their time and energy setting a tone which minimized the value of their oath and dishonored the badge they wore.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The conspiracy count carries a statutory maximum sentence of five years in federal prison and the obstruction of justice charges carry a maximum penalty of ten years. The two false declaration counts against Carey each carry a potential penalty of five years.
As a result of this investigation, a total of 21 defendants who held various ranks in the LASD have been charged, including the deputy who took the bribe to smuggle the phone and seven co-conspirators in the scheme to obstruct justice (see, for example: http://www.justice.gov/usao/cac/Pressroom/2014/161.html).
The investigation into corruption, civil rights abuses and obstruction of justice related to the Los Angeles County jails is being conducted by the FBI.
Former No. 2 of Los Angeles Sheriff’s Department Charged with Obstructing Federal Investigation into Misconduct at County JailsRead the Press Release
Former Head of LASD Criminal Investigation Unit also Accused of Obstructing Justice and Perjuring Himself during Trial Testimony of Co-Conspirators
LOS ANGELES – Paul Tanaka, who was the second in command of the Los Angeles Sheriff’s Department, and William Thomas Carey, who oversaw internal criminal investigations at the LASD, have been indicted on obstruction of justice charges for allegedly directing efforts to quash a federal investigation into corruption and civil rights violations by sheriff’s deputies at two downtown jail complexes.
A federal grand jury yesterday returned a five-count indictment against Tanaka and Carey, who allegedly participated in a broad conspiracy to obstruct the investigation, a scheme that started when the Sheriff’s Department learned that an inmate at the Men’s Central Jail (MCJ) was an FBI informant. Tanaka and Carey allegedly directed, oversaw and participated in a conspiracy that last year resulted in the conviction of seven other former LASD deputies.
The obstruction of justice case was announced at a news conference this morning by Acting United States Attorney Stephanie Yonekura and FBI Assistant Director in Charge David Bowdich.
Tanaka and Carey, both 56, are charged with conspiracy to obstruct justice, and each is named in one count of obstruction of justice. Carey is charged with two counts of making false declarations for perjuring himself last year during the trials of co-conspirators.
Tanaka was the undersheriff – the number 2 in the LASD – until 2013, and he ran an unsuccessful campaign for sheriff last year. Carey left the LASD after reaching the rank of captain and heading the Internal Criminal Investigations Bureau.
Tanaka and Carey surrendered themselves to the FBI early this morning, and the two men are expected to be arraigned on the indictment this afternoon in United States District Court.
According to the indictment that was unsealed this morning, the two defendants were well aware of “problem deputies” at the jails, “allegations of rampant abuse of inmates,” and “insufficient internal investigations” into deputy misconduct. But against this backdrop, Tanaka allegedly told deputies assigned to the jails to work in a “gray area” and that he thought that the LASD Internal Affairs Bureau should be reduced from 45 investigators to just one.
The scheme to thwart the federal investigation allegedly started when deputies in August 2011 recovered a mobile phone from an inmate in MCJ, linked the phone to the FBI, and determined that the inmate was an informant for the FBI and was cooperating in a federal corruption civil rights investigation. The phone was given to the inmate by a corrupt deputy, who subsequently pleaded guilty to federal bribery charges.
Alarmed by the federal investigation, members of the conspiracy, guided by Tanaka and Carey, took affirmative steps to hide the cooperator from the FBI and the United States Marshals Service, which was attempting to bring the inmate to testify before a federal grand jury in response to an order issued by a federal judge. The indictment alleges that as part of the conspiracy, the deputies altered records to make it appear that the cooperator had been released. They then re-booked the inmate under a different name, moved him to secure locations, prohibited FBI access to the informant, and then told the cooperator that he had been abandoned by the FBI.
Over the course of several weeks, members of the conspiracy allegedly sought an order from a Los Angeles Superior Court judge that would have compelled the FBI to turn over information about its investigation to the LASD. After the judge refused to issue the order because he had no jurisdiction over the federal law enforcement agency, and even though it was clear that the FBI was properly acting in the course of a lawful investigation, Tanaka and Carey met to discuss having two sergeants approach the lead FBI case agent. Soon thereafter, the sergeants confronted the agent at her residence in an attempt to intimidate her. The sergeants threatened the agent with arrest and later reiterated this threat to her supervisor, stating that the agent’s arrest was imminent.
“As the allegations demonstrate, Tanaka had a large role in institutionalizing certain illegal behavior within the Sheriff’s Department,” said Acting United States Attorney Stephanie Yonekura. “This case also illustrates how leaders who foster and then try to hide a corrupt culture, will be held accountable, just like their subordinates.”
The indictment also alleges that Tanaka and Carey oversaw co-conspirators who told fellow deputies not to cooperate in the federal investigation. Members of the conspiracy allegedly engaged in witness tampering by telling fellow deputies that the FBI would lie, threaten, manipulate and blackmail them to obtain information about the Sheriff’s Department.
“The allegations in the indictment include cover-ups, diversionary tactics, retribution and a culture generally reserved for Hollywood scripts,” said David Bowdich, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The public held the defendants to the highest standard, but, instead, they spent their time and energy setting a tone which minimized the value of their oath and dishonored the badge they wore.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The conspiracy count carries a statutory maximum sentence of five years in federal prison, and the obstruction of justice charges carry a maximum penalty of 10 years. The two false declaration counts against Carey each carry a potential penalty of five years.
As a result of this investigation, a total of 21 defendants who held various ranks in the LASD have been charged, including the deputy who took the bribe to smuggle the phone and seven co-conspirators in the scheme to obstruct justice (see, for example: http://www.justice.gov/usao/cac/Pressroom/2014/161.html).
The investigation into corruption, civil rights abuses and obstruction of justice related to the Los Angeles County jails is being conducted by the Federal Bureau of Investigation.
Release No. 15-044
Former Executive Director of the Virgin Islands Legislature Sentenced to Five Years in Prison for Bribery and ExtortionRead the Press Release
The former Executive Director of the Virgin Islands Legislature was sentenced to five years in prison today, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Ronald W. Sharpe of the District of the Virgin Islands.
Louis “Lolo” Willis, 57, a resident of St. Thomas, was sentenced by U.S. District Court Judge Curtis V. Gomez of the District of the Virgin Islands. On Nov. 19, 2014, a jury in the Virgin Islands convicted Willis of four counts of federal programs bribery and extortion under color of official right.
According to evidence presented at trial, Willis was the executive director of the Legislature between 2009 and 2012. His responsibilities included oversight of the major renovation of the Legislature building and awarding and entering into government contracts in connection with the project. Willis was also responsible for authorizing payments to the contractors for their work. Evidence presented at trial demonstrated that Willis accepted bribes, including $13,000 in cash and checks, from contractors in exchange for using his official position to secure more than $350,000 in work for the contractors and to ensure they received payment upon completion.
This case was investigated by the FBI’s San Juan Field Office’s St. Thomas Resident Agency, the Internal Revenue Service-Criminal Investigation and the Office of the Virgin Islands Inspector General. The case is being prosecuted by Trial Attorney Justin Weitz of the Criminal Division’s Public Integrity Section, Trial Attorney Traccee Plowell of the Criminal Division’s Office of Enforcement Operations, Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Delia Smith of the District of the Virgin Islands.
Former Executive Director of the Virgin Islands Legislature Sentenced to Five Years in Prison for Bribery and ExtortionRead the Press Release
WASHINGTON – The former Executive Director of the Virgin Islands Legislature was sentenced to five years in prison today, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Ronald W. Sharpe of the District of the Virgin Islands.
Louis “Lolo” Willis, 57, a resident of St. Thomas, was sentenced by U.S. District Court Judge Curtis V. Gomez of the District of the Virgin Islands. On Nov. 19, 2014, a jury in the Virgin Islands convicted Willis of four counts of federal programs bribery and extortion under color of official right.
According to evidence presented at trial, Willis was the executive director of the Legislature between 2009 and 2012. His responsibilities included oversight of the major renovation of the Legislature building and awarding and entering into government contracts in connection with the project. Willis was also responsible for authorizing payments to the contractors for their work. Evidence presented at trial demonstrated that Willis accepted bribes, including $13,000 in cash and checks, from contractors in exchange for using his official position to secure more than $350,000 in work for the contractors and to ensure they received payment upon completion.
This case was investigated by the FBI’s San Juan Field Office’s St. Thomas Resident Agency, the Internal Revenue Service-Criminal Investigation and the Office of the Virgin Islands Inspector General. The case is being prosecuted by Trial Attorney Justin Weitz of the Criminal Division’s Public Integrity Section, Trial Attorney Traccee Plowell of the Criminal Division’s Office of Enforcement Operations, Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Delia Smith of the District of the Virgin Islands.
Former Doctor Pleads Guilty to Illegally Prescribing Pain MedicationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Pravin Mehta, 77, of Amherst, NY, pleaded guilty to conspiring to illegally dispense controlled substances from his medical office by issuing prescriptions other than for a legitimate medical purpose and not in the usual course of professional practice, before Senior U.S. District Judge William M. Skretny. This conviction represents the 14th defendant charged and convicted as part of this investigation, including Office staff and other conspirators.
“This case demonstrates that those who would harm the community through illegal narcotics trafficking consist of far more than street corner drug dealers,” said U.S. Attorney Hochul. “In this case, a medical doctor, in his 70’s, stands convicted of turning his medical practice into a drug trafficking organization, complete with other conspirators and employees. This case – like others before it – also demonstrates that regardless of title or position, this Office will simply not allow anyone to contribute to the current public health crisis involving dangerous opiate substances.”
Drug Enforcement Administration Special Agent in Charge James J. Hunt stated, “Prescribing medication for no medical purpose opens the door to drug addiction. Nearly 80 percent of people who recently started using heroin had previously used prescription pain relievers illegally. To combat opioid addiction, DEA and our law enforcement partners are committed to identifying and investigating those responsible for diverting pain medication while using resources to educate the public about the perils of opioid abuse.”
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that Mehta is a former physician who practiced medicine in the City of Niagara Falls. The defendant surrendered his medical license immediately after being first charged in this case in January 2011.
Mehta wrote prescriptions for narcotic pain medications, such as fentanyl, hydrocodone, oxycodone, and oxymorphone, for individuals without conducting legitimate medical examinations. In 2010, the Government sent four individuals who were part of the investigation to see the defendant at his office on 10 different occasions. On all but the last visit, Mehta issued prescriptions for controlled substance pain medication at the request of the individuals without conducting a thorough medical exam.
In addition, on four separate occasions between December 2007 and January 2010, prior to leaving the country for multiple weeks, the defendant signed blank prescriptions and directed his office manager, who was not a trained medical provider, to complete the prescription by writing in a patient’s name, type, amount, and dosage of controlled substances whenever a patient came to the office in his absence seeking pain medication. In fact, Mehta’s medical staff did not include any licensed medical professionals, such as other doctors, physician assistants, registered nurses, or licensed practical nurses.
U.S. Attorney Hochul further stated: “Such medications, when prescribed properly, can be very beneficial to a patients. But when they are abused can be dangerous and highly addictive. Let me be clear, a vast majority of physicians faithfully uphold their oath. For those who do not, be warned, we will prosecute to the fullest extent of the law.”
The defendant was arrested in January 2011 along with 13 others. All 14 individuals have now been convicted. All but two have been sentenced.
The charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Mehta also forfeited the building that housed his medical practice, 550-552 Main Street in Niagara Falls, and $125,000 in United State currency.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto, the Niagara County Sheriff's Drug Task Force under the direction of Sheriff James Voutour, the New York State Medicaid Fraud Control Unit, the New York State Bureau of Narcotic Enforcement, and the Internal Revenue Service, Criminal Investigation Division, New York Field Division under the direction of Special Agent in Charge Shantelle P. Kitchen.
Sentencing is scheduled for September 9, 2015 at 9:00 a.m. before Judge Skretny.
Former Credit Union Official Pleads Guilty to Mail FraudRead the Press Release
ATLANTA - Ardonus “Donna” Perkins, the former Assistant Vice President of Risk Management of the Credit Union of Georgia, has pleaded guilty to a charge of mail fraud for causing the credit union to disburse over $300,000 in fraudulent loans.
“This now former credit union executive used her institutional knowledge of the financial system to concoct a multi-faceted fraud scheme to steal money from the credit union,” said Acting U.S. Attorney John Horn. “The Department of Justice and our law enforcement partners will vigorously investigate and prosecute those engaged in fraud that threatens the integrity of the banking system.”
“The United States Secret Service will continue to take an aggressive approach to arrest individuals who violate the trust of businesses to further their personal financial gain,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through August 2010, Perkins, who was the Assistant Vice President of Risk Management for the Credit Union of Georgia, used the names of unknowing family members and friends to open signature loans and true lines of credit at the credit union, which are open-ended personal lines of credit. Perkins took the funds obtained from these fraudulent loans for her own personal use. She also secretly refinanced automobile loans without the auto owner’s knowledge, consent, or authorization, and took those proceeds. Additionally, Perkins established fraudulent VISA accounts in the names of family members and friends and received cash advances on those accounts without their knowledge.
Perkins’ fraud scheme went undetected at the Credit Union of Georgia until she was fired in 2010 for policy violations. She continually increased the loan limits and available credit limits on the fraudulent loans to obtain more funds. In an effort to conceal and continue her scheme, Perkins used some of the money she fraudulently received to make payments on some of the loans, lines of credit, and credit card accounts that she had fraudulently established in the names of others. To further conceal her scheme, Perkins directed the monthly statements of the fraudulently established accounts to her personal post office box. As a result of Perkins’ scheme, the Credit Union of Georgia lost more than $300,000.
Sentencing for Ardonus “Donna” Perkins, 40, of Atlanta, Georgia, is scheduled for July 30, 2015, at 10:00 a.m. before United States District Judge Mark H. Cohen.
This case is being investigated by the United States Secret Service.
Assistant United States Attorneys Loranzo M. Fleming and Jeff A. Brown are prosecuting the case.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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.”
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Former Automotive Parts Manufacturer Executive Indicted for Role in Conspiracy to Fix PricesRead the Press Release
A Detroit federal grand jury returned a one-count indictment against the former Executive Managing Director of a Japanese automotive parts manufacturer for his participation in a conspiracy to fix prices and rig bids of automotive parts, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court of the Eastern District of Michigan, charges Michitaka Sakuma, a former director and member of the board of directors of T.RAD Co. Ltd., with conspiring to fix the prices of radiators sold to Honda Motor Co. Ltd., Toyota Motor Corp., and certain of their subsidiaries in the United States and elsewhere.
“Today’s charge demonstrates that the Antitrust Division will continue to hold senior executives accountable for directing and authorizing subordinate employees to engage in criminal conduct,” said Deputy Assistant Attorney General Brent Snyder of the Antitrust Division’s Criminal Enforcement Program. “Senior executives should expect that they will be pursued and prosecuted when they knowingly permit and direct collusive conduct to occur under their management.”
Sakuma participated in the conspiracy first as a general manager in charge of Toyota sales and then as the executive managing director in charge of all sales at T.RAD. Sakuma was also a member of the board of directors at T.RAD.
The indictment alleges, among other things, that beginning at least as early as October 2003 and continuing until at least February 2010, Sakuma and his co-conspirators participated in meetings with co-conspirators and reached collusive agreements to rig bids, allocate supply and fix the price of radiators sold to Honda and Toyota.
T.RAD is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan. On Nov. 12, 2013, T.RAD pleaded guilty and agreed to pay a $13.75 million criminal fine for its role in the conspiracy. On Dec. 9, 2014, Kosei Tamura, the general manager in charge of Honda sales at T.RAD, pleaded guilty of participating in the same conspiracy and was sentenced to serve one year and one day in a U.S. prison.
Including Sakuma, 53 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing and bid rigging in the automotive parts industry. Additionally, 35 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.5 billion in criminal fines.
Sakuma is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323
Florida Businessman Found Guilty of Conspiring to Defraud InvestorsRead the Press Release
ORLANDO, FLA. – Donovan G. Davis, Jr., 33, of Palm Bay, Fla., was found guilty by a jury today of federal charges stemming from an investment fraud scheme in which more than 100 investors lost over $13 million, announced Vincent H. Cohen, Jr., Acting U.S. Attorney for the District of Columbia, and James D. Robnett, Special Agent in Charge of the Tampa Field Office of IRS-Criminal Investigation.
Davis was found guilty of one count of conspiracy to commit mail/wire fraud; one count of mail fraud; six counts of wire fraud, and eight counts of money laundering. The jury trial began May 4, 2015, before the Honorable Carlos E. Mendoza of the U.S. District Court for the Middle District of Florida. After the verdicts were returned the judge ordered Davis to be detained pending his sentencing on Aug. 5, 2015.
Two co-defendants earlier pled guilty. Blayne S. Davis, 33, formerly of Naples, Fla., pled guilty in July 2014, to conspiracy to commit mail and wire fraud; he was later sentenced to a nine-year prison term and ordered to pay $13,215,874.75 in restitution. (The Davises are not related). Damien L. Bromfield, 38, of Ocoee, Fla., pled guilty in November 2013, to conspiracy to commit wire fraud and is awaiting sentencing.
“These families lost more than $13 million when they entrusted their hard-earned savings to an investment firm that lied about its performance,” said Acting U.S. Attorney Cohen. “With today’s guilty verdict, all three men responsible for this fraud are seeing the consequences of their crimes. Financial crimes don’t just create losses on paper; they cause lasting harm to real people. I commend the prosecutors from here in D.C. who held these criminals accountable for their deception in a Florida courthouse.”
“Today’s verdict holds this man accountable for his misuse of a position of trust within his investment corporation,” said Special Agent in Charge Robnett. “The Special Agents of IRS-Criminal Investigation, along with our law enforcement partners, are committed to unraveling complex financial transactions and money laundering schemes and bringing justice for the investors.”
According to the government’s evidence, Donovan Davis, Jr. was the managing member of Capital Blu Management, LLC, a Florida-based corporation that purported to offer investment and managed account services for investors in the off-exchange foreign currency, or “forex,” marketplace. Blayne S. Davis was the director of trading, and Bromfield was the director of operations.
Blayne S. Davis and Bromfield formed Capital Blu in January 2007. In 2007 and 2008, according to the government’s evidence, Donovan Davis, Jr. solicited relatives, friends, and associates to invest in Capital Blu, resulting in substantial amounts being placed under the company’s management. Donovan Davis, Jr., became a managing member of Capital Blu in August 2007, working out of an office in Melbourne, Fla.
In or about September 2007, according to the government’s evidence, the three men formed the CBM FX Fund, LP, which pooled investors’ money into a common fund to be traded by Capital Blu Management. Many of Capital Blu’s managed-account investors transferred their investments into the CBM FX Fund.
By January 2008, according to the government’s evidence, the three partners knew that the CBM FX Fund had sustained significant trading losses, resulting in large losses for its investors. At or about that time, the men began defrauding investors by means of materially false and fraudulent pretenses, representations, and promises. These included, according to the government’s evidence, a series of misrepresentations about Capital Blu’s trading performance, the value of the fund, and the risks of the fund.
According to the government’s evidence, the men conspired to post positive monthly returns to the CBM FX Fund’s investors from January through August of 2008, even though the fund and its investors had sustained net losses. In addition, the men diverted investors’ money from the fund to pay for Capital Blu’s operational expenses and personal expenses, including their salaries and payments for the use of a private airplane and luxury cars.
In or about September 2008, the National Futures Association, an independent self-regulatory organization that oversees commodities and futures trading in the United States, conducted a surprise audit of Capital Blu and suspended its operations. As of September 2008, investors had invested over $16.9 million into the CBM FX Fund; the investors lost over $13 million.
This case was transferred from the Middle District of Florida to the U.S. Attorney’s Office for the District of Columbia and the Department of Justice, Criminal Division.
The case was investigated by a task force consisting of agents from the IRS- Criminal Investigation, the U.S. Secret Service, the Florida Department of Law Enforcement, and the Brevard County, Fla., Sherriff’s Office. Related civil litigation was pursued by the Commodity Futures Trading Commission, which resulted in a civil judgment against the defendants after a trial in 2011.
Assistance on the criminal case was provided by Paralegal Specialists Donna Galindo, Corinne Kleinman, and Heather Sales; former Paralegal Specialist Diane Hayes; Legal Assistant Angela Lawrence; Forensic Accountant Crystal Boodoo; Information Technology Specialist Thomas (Ron) Royal; and Victim Witness Advocates Yvonne Bryant and Tasheeka Hawkins, all of the U.S. Attorney’s Office for the District of Columbia. Paralegal Specialists Zayden Tethong and Elias Brockman of the U.S. Department of Justice, Criminal Division, also assisted at trial. Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, have assisted with guidance on asset forfeiture matters.
The case was prosecuted by Assistant U.S. Attorney Jonathan P. Hooks of the U.S. Attorney’s Office for the District of Columbia, who was designated as a Special Attorney in the Middle District of Florida, and Trial Attorneys David M. Fuhr and Ephraim (Fry) Wernick, of the U.S. Department of Justice, Criminal Division.
Felon Arrested for Possessing A Firearm at Area Shooting RangeRead the Press Release
CHICAGO — A Chicago man was arrested this morning and is facing federal gun charges for being a felon in possession of a firearm. The defendant, LABAR SPANN, was arrested following an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chicago Police Department.
SPANN, 36, of the 800 block of North Francisco Street, was arrested at his residence and charged by criminal complaint that was unsealed following his initial appearance today. He appeared today before U.S. Magistrate Judge Michael T. Mason and was ordered to remain in custody pending a detention hearing at 2:00 p.m. on Monday in U.S. District Court.
According to the complaint, on September 14, 2014, Spann, a convicted felon, knowingly possessed a firearm, namely a Glock 19, model 19C, .9 mm caliber handgun while with two individuals, L.H. and K.C., at Midwest Sporting Goods, a firearms store and shooting range, located in Lyons, Illinois. Allegedly, one of the individuals, L.H., rented a Glock 19C pistol and proceeded to the firing line with Spann and K.C. while Spann allegedly loaded a magazine with 9 mm ammunition into the firearm and then shot at the target, emptying the magazine. Spann then allegedly loaded additional magazines into the firearm twice and handed it to L.H., then K.C., who each shot at targets and emptied the magazines.
If convicted of being a felon-in-possession of a firearm, the defendant could be sentenced to a maximum 10 years imprisonment and a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Federal Bureau of Investigation Chicago Office; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Chicago Police Superintendent Garry McCarthy.
The government is being represented by Assistant U.S. Attorneys Peter S. Salib, Timothy J. Storino and Tobara Richardson.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Federal Jury Finds New Jersey Man Guilty of Supplying Heroin to Pittsburgh-based Drug RingRead the Press Release
PITTSBURGH - After deliberating for approximately 90 minutes, on May 13, 2015, a federal jury found Santino Drew guilty of two felony narcotics counts: conspiracy to distribute one kilogram or more of heroin and possession with the intent to distribute 100 grams or more of heroin, United States Attorney David J. Hickton announced today.
Santino Drew, 36, of New Brunswick, New Jersey, was tried before United States District Judge Cathy Bissoon in Pittsburgh, Pa.
According to Assistant United States Attorneys Eric Rosen and Conor Lamb, who prosecuted the case, Drew was originally scheduled to proceed to trial with Brandon Thompson and Aldwin Vega as co- defendants. All three defendants were alleged to have supplied Jay Germany, a resident of Homestead, Pa. with heroin for distribution. On May 4, 2015, Vega pled guilty to heroin trafficking charges, and that same day, Thompson pled guilty to heroin and cocaine trafficking charges, as well as discharge of a firearm in furtherance of a drug trafficking offense. Vega’s guilty plea called for a stipulated sentence of 16 years in prison, while Thompson’s guilty plea called for a stipulated sentence of 15 years in prison.
On May 4, 2015, with Thompson and Vega having pled guilty, Drew proceeded to trial alone. Over a period of four and a half days, the jury heard evidence establishing that over an approximately five-month period in 2012 and 2013, Drew conspired together with two other New Jersey-based heroin suppliers – Thomas Martinez and Hector Guadalupe – to transport heroin from New Jersey to Pittsburgh, where it was resold. One of the persons Drew sold heroin to was Jay Germany, who, in the fall of 2012, became the focal-point of an FBI-led investigation into violent gang activity in Homestead. Germany has pled guilty to the heroin trafficking charges against him, and he was sentenced to 15 years in prison. On Jan. 30, 2013, the FBI, who was monitoring a telephone utilized by Santino Drew, anticipated that a load of heroin was being brought to Pittsburgh by Thomas Martinez. That evening, a search warrant was executed at the Comfort Inn in Robinson Township, and 519 bricks of heroin, totaling 707 grams, were found under Drew’s bed.
Judge Bissoon scheduled sentencing for Sept. 2, 2015 at 10 a.m. The law provides for a total sentence of not less than 20 years in prison and not more than life, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant. Pending sentencing, the court continued the detention of Mr. Drew.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of Santino Drew.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Summerville Man Indicted for Attempted Possession and Attempted Receipt of Child Pornography
Ernest Christopher Limehouse, age 31, of Summerville, South Carolina, was charged in a 4-count Indictment with Attempted Possession and Attempted Receipt of Child Pornography, a violation of 18 U.S.C. § 2252A. The maximum penalty that Limehouse could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Summerville Woman Indicted for Theft of Government Property
Ophelia Williams, age 60, of Summerville, South Carolina, was charged in a 1-count Indictment with Theft of Government Property, a violation of 18 U. S. C. § 641. The maximum penalty that Williams could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.Hanahan Man Indicted for Illegal Reentry of an Alien after Removal
Ivan Edgardo Soto Naranjo, a/k/a Juan Chavez Avalos, age 37, of Hanahan, South Carolina, was charged in a one-count Indictment with Illegal Reentry of an Alien after Removal, in violation of Title 8, United States Code, Section 1326(a). The maximum penalty Soto Naranjo could receive is 2 years imprisonment and a $250,000 fine. The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Man Charged with False Statement to a Federal Agency
Divett Lydrell Mays, age 43, of Hurghada, Egypt, was charged in a one-count Indictment with False Statement to a Federal Agency, a violation of Title 18, United States Code, Section 1001(a)(2). The maximum penalty Mays could receive is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of the Department of State, Diplomatic Security Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.Hollywood Man Indicted for Failure to Register as a Sex Offender
Andre Youngblood, a/k/a Michael S. Long, a/k/a Michael Johnson, age 40, of Hollywood, South Carolina, was charged in a one-count Indictment with Failing to Register as a Sex Offender, a violation of Title 18, United States Code, Section 2250(a). The maximum penalty Youngblood could receive is 10 years imprisonment. The case was investigated by agents of the United States Marshals Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution. This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 better locate, apprehend, and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information, please visit www.usdoj.gov/psc.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Evansville, Indiana Man Charged with Transportation of an Owensboro, Kentucky Minor to Engage in Criminal Sexual ActivityRead the Press Release
Bowling Green, Ky. – An Evansville, Indiana man was detained and remanded to the custody of the U.S. Marshals following a detention hearing yesterday, before Magistrate Judge H. Brent Brennenstuhl, on charges of the transportation of a minor to engage in criminal sexual activity, announced Acting United States Attorney John E. Kuhn, Jr.
Zachery Andrew Coleman, age 27, was arrested on May 5, 2015, on federal charges, following an investigation by members of the Daviess County, Kentucky Sheriff’s Office (DCSO), the Evansville, Indiana Police Department and the FBI. According to an Affidavit in support of the Criminal Complaint, on or about February 6, 2015, a minor female of twelve years of age, left her residence in Owensboro, Kentucky with Coleman, was taken to the defendant’s home in Evansville, Indiana, and was returned to the minor’s residence the next day. Coleman is alleged to have engaged in criminal sexual activity with the minor during that time. According to the Affidavit, Coleman communicated with the minor on a social networking site called Mylol and allegedly sent sexually explicit messages to the minor using the screen name Swisher812. Conversations obtained via a search of the minor’s computer show Coleman arranged to pick up the minor at the minor’s home for the purposes of transporting the minor to engage the child in illegal sexual activities.
If convicted at trial, Coleman faces a statutory mandatory minimum of 10 years and a maximum of life imprisonment, a fine of $250,000, and supervised release of not less than 5 years and not more than life.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness, and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Daviess County, Kentucky Sheriff’s Office, and the Evansville, Indiana Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Enviro-Safe Refrigerants Agrees to Halt Sales of Unapproved Flammable Hydrocarbon Refrigerants as Direct Replacements for Ozone Depleting SubstancesRead the Press Release
Enviro-Safe Refrigerants Inc. of Pekin, Illinois, has agreed to pay a $300,000 civil penalty and cease marketing and sale of unapproved flammable hydrocarbon refrigerants as substitutes for ozone depleting substances (ODS). ODS are being phased out of production and importation because they deplete the Earth’s stratospheric ozone layer. As part of the United States’ transition away from ODS, the Environmental Protection Agency’s (EPA) Significant New Alternatives Policy (SNAP) Program evaluates and approves substitute refrigerants so that they can safely and legally replace ODS. EPA evaluates these potential substitute refrigerants according to health, safety and environmental criteria. The Clean Air Act addresses ODS and establishes standards and requirements where a substitute for an ODS is sought to be introduced to the marketplace.
According to the two-count complaint, filed simultaneously with the settlement today in the Central District of Illinois, Enviro-Safe allegedly violated Clean Air Act requirements through the marketing and sale of two flammable hydrocarbon refrigerant products, ES 22a and ES 502a, as substitutes for ODS without providing the requisite information to EPA for review and approval. EPA has not approved any flammable hydrocarbon as a replacement for ODS in systems not specifically designed for flammable refrigerants and has warned that use of flammable refrigerants in those systems presents a risk of fire or explosion.
“With this settlement, Enviro-Safe will pay a penalty, stop its nationwide sales of unapproved flammable refrigerants and ozone depleting substances, and notify consumers of potential safety hazards from these products,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division. “This civil action illustrates how the requirements of the Clean Air Act guard consumer safety and the health of our environment each and every day.”
“The actions Enviro-Safe will be required to take under this consent decree will protect consumers and the environment from a potentially dangerous product,” said Regional Administrator Susan Hedman of EPA.
In addition to paying a penalty and halting non-compliant sales, the company will also state on the label of any flammable refrigerant, its website and other marketing materials that the refrigerant is “flammable to an open flame or spark” and to “proceed with caution if used in systems designed for non-flammable refrigerants.” Labels must also include any use restrictions for approved substitutes. The company will notify by mail all known past customers that purchased products labeled “ES 12a,” “ES 22a” and “ES 502a” of potential safety hazards associated with such products.
The consent decree is subject to a 30-day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice website at www.usdoj.gov/enrd/Consent_Decrees.html.
El Paso Man Sentenced to Federal Prison for the Distribution of over 700 Kilograms of Cocaine and Laundering Almost $8 Million in Drug ProceedsRead the Press Release
In El Paso today, 44-year-old Juan Manuel Flores (aka “Cholo”), the leader of an El Paso-based cocaine trafficking and money laundering organization, was sentenced to 15 years in federal prison, announced Acting United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Will R. Glaspy, El Paso Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison term, United States District Judge David C. Guaderrama ordered that Flores be placed on supervised release for five years after completing his prison term. Furthermore, the court ordered forfeiture of the defendant’s interest in five real properties in El Paso County, Texas, as proceeds of the drug conspiracy.
On February 3, 2015, Flores pleaded guilty to one count of conspiracy to possess with intent to deliver cocaine, and one count of conspiracy to launder monetary instruments. By pleading guilty, the defendant admitted to trafficking cocaine in the Western District of Texas between 2005 and July 2013. According to court records, Flores conspired to distribute over 700 kilograms of cocaine in the El Paso area and conspired to launder over $7.9 Million in drug proceeds.
“Juan Manuel Flores was a significant drug trafficker living and working in El Paso. With Flores’ crimes extending back at least a decade, supported by his ties to the Vicente Carrillo Fuentes cartel, today’s sentencing is the culmination of a long and complex investigation that has made the city of El Paso safer,” stated DEA Special Agent in Charge Will R. Glaspy.
This joint investigation was conducted by the Drug Enforcement Administration (DEA) and the Internal Revenue Service-Criminal Investigation (IRS-CI), together with the United States Department of Homeland Security, Customs and Border Protection Internal Affairs (DHS-CBP), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), El Paso Police Department, and the El Paso County Sheriff’s Office.
El Departamento de Justicia y el Tribunal Superior del Condado de Mohave, Arizona Trabajan en Asegurar el Acceso Igualitario para Personas Que No Hablen InglésRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha cerrado su revisión del Programa de Acceso Idiomático del Tribunal Superior del Condado de Mohave, Arizona. El cierre se produce después de la conclusión exitosa por el tribunal de sus obligaciones bajo un acuerdo para brindar servicios de asistencia idiomática a todos los usuarios del tribunal con conocimientos limitados del idioma inglés [Limited English Proficient (LEP)]. La División de Derechos Civiles comenzó a trabajar con el Tribunal Superior del Condado de Mohave en 2013 después de haber recibido una queja de un usuario del tribunal en la que alegaba que el tribunal discriminaba con base en el origen nacional en violación del Título VI de la Ley de Derechos Civiles de 1964 al negarse a brindarle un intérprete sin cargo en un asunto de derecho de familia. El Título VI exige que los destinatarios de asistencia financiera federal, tal como los tribunales, brinden servicios idiomáticos competentes sin cargo a personas LEP en todos los procesos y trámites judiciales.
Con la asistencia del departamento, el Tribunal Superior del Condado de Mohave ha realizado una serie de mejoras a su Programa de Acceso Idiomático, entre las que se incluyen:
- Actualización del Plan de Acceso Idiomático del Tribunal de modo que indique claramente que todas las partes LEP, los testigos, las víctimas y cualquier persona con interés en un caso recibirán servicios de intérprete en todos los procesos judiciales sin cargo, independientemente del tipo de caso, de los ingresos del usuario del tribunal o del idioma que hable.
- Creación e implementación de un sistema de quejas acerca de servicios idiomáticos.
- Mejora del acceso a servicios fuera de la sala del tribunal para todos los usuarios del tribunal a través de empleados bilingües, tarjetas “Yo hablo” disponibles en la oficina del secretario del juzgado, carteles multilingües, formularios traducidos en el portal en Internet del tribunal y servicios de intérprete telefónicos o por video disponibles para el uso de todos los empleados.
- Capacitación de todo el personal del tribunal sobre la importancia de proveer servicios idiomáticos adecuados.
- Optimización de la comunicación con partes implicadas de la comunidad.
- Trabajar con el sistema judicial estatal en mejorar la eficiencia y la calidad de los servicios de interpretación y traducción.
“Felicito al liderazgo y al personal del Tribunal Superior de Mohave por su labor para brindarles a todas las comunidades acceso igualitario a la justicia, independientemente del idioma que hablen”, señaló la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta de la División de Derechos Civiles. “A medida que Mohave y otros tribunales de Arizona siguen mejorando los servicios idiomáticos, les brindaremos con gusto la asistencia que requieran”.
El departamento viene trabajando con tribunales de todo el país en mejorar el suministro de servicios idiomáticos a personas LEP. Se puede encontrar una serie de recursos de acceso idiomático de tribunales estatales en la siguiente dirección: http://www.lep.gov/resources/resources.html#SC. En 2014, el departamento lanzó una “Herramienta de planificación de acceso idiomático y asistencia técnica para tribunales” que les brinda a los sistemas judiciales una serie de preguntas que considerar al desarrollar e implementar planes para brindar asistencia idiomática.
Haga clic aquí para más información sobre la FCS. Para más recursos relacionados con las personas LEP, diríjase al portal Interagencias Federal sobre personas LEP.
Duke Energy Subsidiaries Plead Guilty and Sentenced to Pay $102 Million for Clean Water Act CrimesRead the Press Release
Three subsidiaries of North Carolina-based Duke Energy Corporation, the largest utility in the United States, pleaded guilty today to nine criminal violations of the Clean Water Act at several of its North Carolina facilities and agreed to pay a $68 million criminal fine and spend $34 million on environmental projects and land conservation to benefit rivers and wetlands in North Carolina and Virginia. Four of the charges are the direct result of the massive coal ash spill from the Dan River steam station into the Dan River near Eden, North Carolina, in February 2014. The remaining violations were discovered as the scope of the investigation broadened based on allegations of historical violations at the companies’ other facilities.
Under the plea agreement, both Duke Energy Carolinas and Duke Energy Progress, must certify that they have reserved sufficient assets to meet legal obligations with respect to its coal ash impoundments within North Carolina, obligations estimated to be approximately $3.4 billion.
Officials from the Justice Department’s Environment and Natural Resources Division and the three U.S. Attorney’s Offices in North Carolina, the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance, EPA’s Office of Inspector General, the Internal Revenue Service (IRS) Criminal Investigations and the North Carolina State Bureau of Investigation (SBI) made the announcement following a plea hearing at the federal courthouse in Greenville, North Carolina today.
“The massive coal ash spill into North Carolina’s Dan River last year was a crime and it was the result of repeated failures by Duke Energy’s subsidiaries to exercise controls over coal ash facilities,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The terms of these three plea agreements will help prevent this kind of environmental disaster from reoccurring in North Carolina and throughout the United States by requiring Duke subsidiaries to follow a rigorous and independently verifiable program to ensure they comply with the law.”
“Duke Energy's crimes reflect a breach of the public trust and a lack of stewardship for the natural resources belonging to all of the citizens of North Carolina,” said U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina. “The massive release at the Dan River coal ash basin revealed criminal misconduct throughout the state – conduct that will no longer be tolerated under the judgment imposed by the court today.”
“Duke’s subsidiaries discharged potentially toxic pollutants that put at risk North Carolina’s water quality and wildlife and today’s outcome ensures they will be held responsible for violating federal environmental requirements,” said Acting U.S. Attorney Jill W. Rose for the Western District of North Carolina. “The defendants will now have to comply with the terms imposed by the court, including paying hefty financial penalties and making significant financial contributions toward improving the quality of impacted waterways, wetlands and our water supply system.”
“Duke’s actions adversely impacted the Dan River ecosystem and caused residents who live near and rely on the water supply much apprehension about the safety of the river,” said Criminal Chief Cliff Barrett for the U.S. Attorney’s Office in the Middle District of North Carolina. “Today’s plea holds Duke accountable for this result and charts a course to remediate the impact of these spills.”
“Over two hundred sixteen million Americans rely on surface water as their source of drinking water,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Duke Energy put that precious resource at risk in North Carolina as the result of their negligence. Companies that cut corners and contaminate waters on which communities depend, as Duke did here, will be held accountable.”
On Feb. 20, 2015, the three U.S. Attorney’s Offices in North Carolina filed separate criminal bills of information in their respective federal courts, alleging violations of the Clean Water Act at the following Duke facilities: the Dan River steam station (Rockingham County), the Cape Fear steam electric plant (Chatham County), the Asheville steam electric generating plant (Buncombe County), the H.F. Lee steam electric plant (Wayne County) and the Riverbend steam station (Gaston County). The alleged violations included unlawfully failing to maintain equipment at the Dan River and Cape Fear facilities and unlawfully discharging coal ash and/or coal ash wastewater from impoundments at the Dan River, Asheville, Lee and Riverbend facilities.
As part of their plea agreements, Duke Energy Business Services LLC, Duke Energy Carolinas LLC and Duke Energy Progress Inc. will pay a $68 million criminal fine and a total $24 million community service payment to the National Fish and Wildlife Foundation for the benefit of the riparian environment and ecosystems of North Carolina and Virginia. The companies will also provide $10 million to an authorized wetlands mitigation bank for the purchase of wetlands or riparian lands to offset the long-term environmental impacts of its coal ash basins. In addition, they will pay restitution to the federal, state and local governments that responded to the Dan River spill and be placed on a period of supervised probation for five years.
Duke’s subsidiaries operating 18 facilities in five states, including 14 in North Carolina, will also be required to develop and implement nationwide and statewide environmental compliance programs to be monitored by an independent court appointed monitor and be regularly and independently audited. Results of these audits will be made available to the public to ensure compliance with environmental laws and programs. The companies’ compliance will be overseen by a court-appointed monitor who will report findings to the court and the U.S. Probation Office as well as ensuring public access to the information.
Approximately 108 million tons of coal ash are currently held in coal ash basins owned and operated by the defendants in North Carolina. Duke Energy Corporation subsidiaries also operate facilities with coal ash basins in South Carolina, approximately 5.99 million tons of coal ash, Kentucky, approximately 1.5 million tons of coal ash, Indiana, approximately 35.6 million tons of coal ash and Ohio, approximately 5.9 million tons of coal ash.
The companies must also meet the obligations imposed under federal and state law to excavate and close coal ash impoundments at the Asheville, Dan River, Riverbend and Sutton facilities.
Additionally, at the insistence of the United States, the holding company Duke Energy Corporation has guaranteed the payment of the monetary penalties and the performance of the nationwide and statewide environmental compliance plans.
“Duke’s environmental crimes required a special financial review of their actions to which we were proud to join our partners in investigating,” said Special Agent in Charge Thomas J. Holloman, III of the IRS Criminal Investigation. “The considerable fines, formal apologies and massive cleanup initiatives will impact the Duke image and brand, assuring the public that corporations will be held accountable for their gross actions involving the environment, wildlife and the communities of this great state.”
“The SBI worked closely with the Environmental Protection Agency Criminal Investigation Division and the Internal Revenue Service in this matter,” said Acting Director B.W. Collier of the North Carolina SBI. “This type of collaboration is critical to ensuring a thorough and intensive review on cases such as this. The SBI remains committed to the public interest and is prepared to continue assisting the U.S. Attorney’s office.”
The criminal investigation was conducted by the Criminal Investigation Division, Region Four and the Office of Inspector General of EPA, Criminal Investigations of the IRS and North Carolina State Bureau of Investigation with assistance from the Federal Bureau of Investigation and the Department of Defense Criminal Investigative Service.
Duke Energy Subsidiaries Plead Guilty and Sentenced to Pay $102 Million for Clean Water Act CrimesRead the Press Release
WASHINGTON – Three subsidiaries of North Carolina-based Duke Energy Corporation, the largest utility in the United States, pleaded guilty today to nine criminal violations of the Clean Water Act at several of its North Carolina facilities and agreed to pay a $68 million criminal fine and spend $34 million on environmental projects and land conservation to benefit rivers and wetlands in North Carolina and Virginia. Four of the charges are the direct result of the massive coal ash spill from the Dan River steam station into the Dan River near Eden, North Carolina, in February 2014. The remaining violations were discovered as the scope of the investigation broadened based on allegations of historical violations at the companies’ other facilities.
Under the plea agreement, both Duke Energy Carolinas and Duke Energy Progress, must certify that they have reserved sufficient assets to meet legal obligations with respect to its coal ash impoundments within North Carolina, obligations estimated to be approximately $3.4 billion.
Officials from the Justice Department’s Environment and Natural Resources Division and the three U.S. Attorney’s Offices in North Carolina, the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance, EPA’s Office of Inspector General, the Internal Revenue Service (IRS) Criminal Investigations and the North Carolina State Bureau of Investigation (SBI) made the announcement following a plea hearing at the federal courthouse in Greenville, North Carolina today.
“The massive coal ash spill into North Carolina’s Dan River last year was a crime and it was the result of repeated failures by Duke Energy’s subsidiaries to exercise controls over coal ash facilities,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The terms of these three plea agreements will help prevent this kind of environmental disaster from reoccurring in North Carolina and throughout the United States by requiring Duke subsidiaries to follow a rigorous and independently verifiable program to ensure they comply with the law.”
“Duke Energy's crimes reflect a breach of the public trust and a lack of stewardship for the natural resources belonging to all of the citizens of North Carolina,” said U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina. “The massive release at the Dan River coal ash basin revealed criminal misconduct throughout the state – conduct that will no longer be tolerated under the judgment imposed by the court today.”
“Duke’s subsidiaries discharged potentially toxic pollutants that put at risk North Carolina’s water quality and wildlife and today’s outcome ensures they will be held responsible for violating federal environmental requirements,” said Acting U.S. Attorney Jill W. Rose for the Western District of North Carolina. “The defendants will now have to comply with the terms imposed by the court, including paying hefty financial penalties and making significant financial contributions toward improving the quality of impacted waterways, wetlands and our water supply system.”
“Duke’s actions adversely impacted the Dan River ecosystem and caused residents who live near and rely on the water supply much apprehension about the safety of the river,” said Criminal Chief Cliff Barrett for the U.S. Attorney’s Office in the Middle District of North Carolina. “Today’s plea holds Duke accountable for this result and charts a course to remediate the impact of these spills.”
“Over two hundred sixteen million Americans rely on surface water as their source of drinking water,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Duke Energy put that precious resource at risk in North Carolina as the result of their negligence. Companies that cut corners and contaminate waters on which communities depend, as Duke did here, will be held accountable.”
On Feb. 20, 2015, the three U.S. Attorney’s Offices in North Carolina filed separate criminal bills of information in their respective federal courts, alleging violations of the Clean Water Act at the following Duke facilities: the Dan River steam station (Rockingham County), the Cape Fear steam electric plant (Chatham County), the Asheville steam electric generating plant (Buncombe County), the H.F. Lee steam electric plant (Wayne County) and the Riverbend steam station (Gaston County). The alleged violations included unlawfully failing to maintain equipment at the Dan River and Cape Fear facilities and unlawfully discharging coal ash and/or coal ash wastewater from impoundments at the Dan River, Asheville, Lee and Riverbend facilities.
As part of their plea agreements, Duke Energy Business Services LLC, Duke Energy Carolinas LLC and Duke Energy Progress Inc. will pay a $68 million criminal fine and a total $24 million community service payment to the National Fish and Wildlife Foundation for the benefit of the riparian environment and ecosystems of North Carolina and Virginia. The companies will also provide $10 million to an authorized wetlands mitigation bank for the purchase of wetlands or riparian lands to offset the long-term environmental impacts of its coal ash basins. In addition, they will pay restitution to the federal, state and local governments that responded to the Dan River spill and be placed on a period of supervised probation for five years.
Duke’s subsidiaries operating 18 facilities in five states, including 14 in North Carolina, will also be required to develop and implement nationwide and statewide environmental compliance programs to be monitored by an independent court appointed monitor and be regularly and independently audited. Results of these audits will be made available to the public to ensure compliance with environmental laws and programs. The companies’ compliance will be overseen by a court-appointed monitor who will report findings to the court and the U.S. Probation Office as well as ensuring public access to the information.
Approximately 108 million tons of coal ash are currently held in coal ash basins owned and operated by the defendants in North Carolina. Duke Energy Corporation subsidiaries also operate facilities with coal ash basins in South Carolina, approximately 5.99 million tons of coal ash, Kentucky, approximately 1.5 million tons of coal ash, Indiana, approximately 35.6 million tons of coal ash and Ohio, approximately 5.9 million tons of coal ash.
The companies must also meet the obligations imposed under federal and state law to excavate and close coal ash impoundments at the Asheville, Dan River, Riverbend and Sutton facilities.
Additionally, at the insistence of the United States, the holding company Duke Energy Corporation has guaranteed the payment of the monetary penalties and the performance of the nationwide and statewide environmental compliance plans.“Duke’s environmental crimes required a special financial review of their actions to which we were proud to join our partners in investigating,” said Special Agent in Charge Thomas J. Holloman, III of the IRS Criminal Investigation. “The considerable fines, formal apologies and massive cleanup initiatives will impact the Duke image and brand, assuring the public that corporations will be held accountable for their gross actions involving the environment, wildlife and the communities of this great state.”
“The SBI worked closely with the Environmental Protection Agency Criminal Investigation Division and the Internal Revenue Service in this matter,” said Acting Director B.W. Collier of the North Carolina SBI. “This type of collaboration is critical to ensuring a thorough and intensive review on cases such as this. The SBI remains committed to the public interest and is prepared to continue assisting the U.S. Attorney’s office.”The criminal investigation was conducted by the Criminal Investigation Division, Region Four and the Office of Inspector General of EPA, Criminal Investigations of the IRS and North Carolina State Bureau of Investigation with assistance from the Federal Bureau of Investigation and the Department of Defense Criminal Investigative Service.
Link to Duke Joint Factual Statement
Duke Energy Subsidiaries Plead Guilty and Sentenced to Pay $102 Million for Clean Water Act CrimesRead the Press Release
WASHINGTON – Three subsidiaries of North Carolina-based Duke Energy Corporation, the largest utility in the United States, pleaded guilty today to nine criminal violations of the Clean Water Act at several of its North Carolina facilities and agreed to pay a $68 million criminal fine and spend $34 million on environmental projects and land conservation to benefit rivers and wetlands in North Carolina and Virginia. Four of the charges are the direct result of the massive coal ash spill from the Dan River steam station into the Dan River near Eden, North Carolina, in February 2014. The remaining violations were discovered as the scope of the investigation broadened based on allegations of historical violations at the companies’ other facilities.
Under the plea agreement, both Duke Energy Carolinas and Duke Energy Progress, must certify that they have reserved sufficient assets to meet legal obligations with respect to its coal ash impoundments within North Carolina, obligations estimated to be approximately $3.4 billion.
Officials from the Justice Department’s Environment and Natural Resources Division and the three U.S. Attorney’s Offices in North Carolina, the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance, EPA’s Office of Inspector General, the Internal Revenue Service (IRS) Criminal Investigations and the North Carolina State Bureau of Investigation (SBI) made the announcement following a plea hearing at the federal courthouse in Greenville, North Carolina today.
“The massive coal ash spill into North Carolina’s Dan River last year was a crime and it was the result of repeated failures by Duke Energy’s subsidiaries to exercise controls over coal ash facilities,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The terms of these three plea agreements will help prevent this kind of environmental disaster from reoccurring in North Carolina and throughout the United States by requiring Duke subsidiaries to follow a rigorous and independently verifiable program to ensure they comply with the law.”
“Duke Energy's crimes reflect a breach of the public trust and a lack of stewardship for the natural resources belonging to all of the citizens of North Carolina,” said U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina. “The massive release at the Dan River coal ash basin revealed criminal misconduct throughout the state – conduct that will no longer be tolerated under the judgment imposed by the court today.”
“Duke’s subsidiaries discharged potentially toxic pollutants that put at risk North Carolina’s water quality and wildlife and today’s outcome ensures they will be held responsible for violating federal environmental requirements,” said Acting U.S. Attorney Jill W. Rose for the Western District of North Carolina. “The defendants will now have to comply with the terms imposed by the court, including paying hefty financial penalties and making significant financial contributions toward improving the quality of impacted waterways, wetlands and our water supply system.”
“Duke’s actions adversely impacted the Dan River ecosystem and caused residents who live near and rely on the water supply much apprehension about the safety of the river,” said Criminal Chief Cliff Barrett for the U.S. Attorney’s Office in the Middle District of North Carolina. “Today’s plea holds Duke accountable for this result and charts a course to remediate the impact of these spills.”
“Over two hundred sixteen million Americans rely on surface water as their source of drinking water,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Duke Energy put that precious resource at risk in North Carolina as the result of their negligence. Companies that cut corners and contaminate waters on which communities depend, as Duke did here, will be held accountable.”
On Feb. 20, 2015, the three U.S. Attorney’s Offices in North Carolina filed separate criminal bills of information in their respective federal courts, alleging violations of the Clean Water Act at the following Duke facilities: the Dan River steam station (Rockingham County), the Cape Fear steam electric plant (Chatham County), the Asheville steam electric generating plant (Buncombe County), the H.F. Lee steam electric plant (Wayne County) and the Riverbend steam station (Gaston County). The alleged violations included unlawfully failing to maintain equipment at the Dan River and Cape Fear facilities and unlawfully discharging coal ash and/or coal ash wastewater from impoundments at the Dan River, Asheville, Lee and Riverbend facilities.
As part of their plea agreements, Duke Energy Business Services LLC, Duke Energy Carolinas LLC and Duke Energy Progress Inc. will pay a $68 million criminal fine and a total $24 million community service payment to the National Fish and Wildlife Foundation for the benefit of the riparian environment and ecosystems of North Carolina and Virginia. The companies will also provide $10 million to an authorized wetlands mitigation bank for the purchase of wetlands or riparian lands to offset the long-term environmental impacts of its coal ash basins. In addition, they will pay restitution to the federal, state and local governments that responded to the Dan River spill and be placed on a period of supervised probation for five years.
Duke’s subsidiaries operating 18 facilities in five states, including 14 in North Carolina, will also be required to develop and implement nationwide and statewide environmental compliance programs to be monitored by an independent court appointed monitor and be regularly and independently audited. Results of these audits will be made available to the public to ensure compliance with environmental laws and programs. The companies’ compliance will be overseen by a court-appointed monitor who will report findings to the court and the U.S. Probation Office as well as ensuring public access to the information.
Approximately 108 million tons of coal ash are currently held in coal ash basins owned and operated by the defendants in North Carolina. Duke Energy Corporation subsidiaries also operate facilities with coal ash basins in South Carolina, approximately 5.99 million tons of coal ash, Kentucky, approximately 1.5 million tons of coal ash, Indiana, approximately 35.6 million tons of coal ash and Ohio, approximately 5.9 million tons of coal ash.
The companies must also meet the obligations imposed under federal and state law to excavate and close coal ash impoundments at the Asheville, Dan River, Riverbend and Sutton facilities.
Additionally, at the insistence of the United States, the holding company Duke Energy Corporation has guaranteed the payment of the monetary penalties and the performance of the nationwide and statewide environmental compliance plans.
“Duke’s environmental crimes required a special financial review of their actions to which we were proud to join our partners in investigating,” said Special Agent in Charge Thomas J. Holloman, III of the IRS Criminal Investigation. “The considerable fines, formal apologies and massive cleanup initiatives will impact the Duke image and brand, assuring the public that corporations will be held accountable for their gross actions involving the environment, wildlife and the communities of this great state.”
“The SBI worked closely with the Environmental Protection Agency Criminal Investigation Division and the Internal Revenue Service in this matter,” said Acting Director B.W. Collier of the North Carolina SBI. “This type of collaboration is critical to ensuring a thorough and intensive review on cases such as this. The SBI remains committed to the public interest and is prepared to continue assisting the U.S. Attorney’s office.”
The criminal investigation was conducted by the Criminal Investigation Division, Region Four and the Office of Inspector General of EPA, Criminal Investigations of the IRS and North Carolina State Bureau of Investigation with assistance from the Federal Bureau of Investigation and the Department of Defense Criminal Investigative Service.
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Duke Energy Subsidiaries Plead Guilty and Sentenced to Pay $102 Million for Clean Water Act CrimesRead the Press Release
WASHINGTON – Three subsidiaries of North Carolina-based Duke Energy Corporation, the largest utility in the United States, pleaded guilty today to nine criminal violations of the Clean Water Act at several of its North Carolina facilities and agreed to pay a $68 million criminal fine and spend $34 million on environmental projects and land conservation to benefit rivers and wetlands in North Carolina and Virginia. Four of the charges are the direct result of the massive coal ash spill from the Dan River steam station into the Dan River near Eden, North Carolina, in February 2014. The remaining violations were discovered as the scope of the investigation broadened based on allegations of historical violations at the companies’ other facilities.
Under the plea agreement, both Duke Energy Carolinas and Duke Energy Progress, must certify that they have reserved sufficient assets to meet legal obligations with respect to its coal ash impoundments within North Carolina, obligations estimated to be approximately $3.4 billion.
Officials from the Justice Department’s Environment and Natural Resources Division and the three U.S. Attorney’s Offices in North Carolina, the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance, EPA’s Office of Inspector General, the Internal Revenue Service (IRS) Criminal Investigations and the North Carolina State Bureau of Investigation (SBI) made the announcement following a plea hearing at the federal courthouse in Greenville, North Carolina today.
“The massive coal ash spill into North Carolina’s Dan River last year was a crime and it was the result of repeated failures by Duke Energy’s subsidiaries to exercise controls over coal ash facilities,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The terms of these three plea agreements will help prevent this kind of environmental disaster from reoccurring in North Carolina and throughout the United States by requiring Duke subsidiaries to follow a rigorous and independently verifiable program to ensure they comply with the law.”
“Duke Energy's crimes reflect a breach of the public trust and a lack of stewardship for the natural resources belonging to all of the citizens of North Carolina,” said U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina. “The massive release at the Dan River coal ash basin revealed criminal misconduct throughout the state – conduct that will no longer be tolerated under the judgment imposed by the court today.”
“Duke’s subsidiaries discharged potentially toxic pollutants that put at risk North Carolina’s water quality and wildlife and today’s outcome ensures they will be held responsible for violating federal environmental requirements,” said Acting U.S. Attorney Jill W. Rose for the Western District of North Carolina. “The defendants will now have to comply with the terms imposed by the court, including paying hefty financial penalties and making significant financial contributions toward improving the quality of impacted waterways, wetlands and our water supply system.”
“Duke’s actions adversely impacted the Dan River ecosystem and caused residents who live near and rely on the water supply much apprehension about the safety of the river,” said Criminal Chief Cliff Barrett for the U.S. Attorney’s Office in the Middle District of North Carolina. “Today’s plea holds Duke accountable for this result and charts a course to remediate the impact of these spills.”
“Over two hundred sixteen million Americans rely on surface water as their source of drinking water,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Duke Energy put that precious resource at risk in North Carolina as the result of their negligence. Companies that cut corners and contaminate waters on which communities depend, as Duke did here, will be held accountable.”
On Feb. 20, 2015, the three U.S. Attorney’s Offices in North Carolina filed separate criminal bills of information in their respective federal courts, alleging violations of the Clean Water Act at the following Duke facilities: the Dan River steam station (Rockingham County), the Cape Fear steam electric plant (Chatham County), the Asheville steam electric generating plant (Buncombe County), the H.F. Lee steam electric plant (Wayne County) and the Riverbend steam station (Gaston County). The alleged violations included unlawfully failing to maintain equipment at the Dan River and Cape Fear facilities and unlawfully discharging coal ash and/or coal ash wastewater from impoundments at the Dan River, Asheville, Lee and Riverbend facilities.
As part of their plea agreements, Duke Energy Business Services LLC, Duke Energy Carolinas LLC and Duke Energy Progress Inc. will pay a $68 million criminal fine and a total $24 million community service payment to the National Fish and Wildlife Foundation for the benefit of the riparian environment and ecosystems of North Carolina and Virginia. The companies will also provide $10 million to an authorized wetlands mitigation bank for the purchase of wetlands or riparian lands to offset the long-term environmental impacts of its coal ash basins. In addition, they will pay restitution to the federal, state and local governments that responded to the Dan River spill and be placed on a period of supervised probation for five years.
Duke’s subsidiaries operating 18 facilities in five states, including 14 in North Carolina, will also be required to develop and implement nationwide and statewide environmental compliance programs to be monitored by an independent court appointed monitor and be regularly and independently audited. Results of these audits will be made available to the public to ensure compliance with environmental laws and programs. The companies’ compliance will be overseen by a court-appointed monitor who will report findings to the court and the U.S. Probation Office as well as ensuring public access to the information.
Approximately 108 million tons of coal ash are currently held in coal ash basins owned and operated by the defendants in North Carolina. Duke Energy Corporation subsidiaries also operate facilities with coal ash basins in South Carolina, approximately 5.99 million tons of coal ash, Kentucky, approximately 1.5 million tons of coal ash, Indiana, approximately 35.6 million tons of coal ash and Ohio, approximately 5.9 million tons of coal ash.
The companies must also meet the obligations imposed under federal and state law to excavate and close coal ash impoundments at the Asheville, Dan River, Riverbend and Sutton facilities.
Additionally, at the insistence of the United States, the holding company Duke Energy Corporation has guaranteed the payment of the monetary penalties and the performance of the nationwide and statewide environmental compliance plans.
“Duke’s environmental crimes required a special financial review of their actions to which we were proud to join our partners in investigating,” said Special Agent in Charge Thomas J. Holloman, III of the IRS Criminal Investigation. “The considerable fines, formal apologies and massive cleanup initiatives will impact the Duke image and brand, assuring the public that corporations will be held accountable for their gross actions involving the environment, wildlife and the communities of this great state.”
“The SBI worked closely with the Environmental Protection Agency Criminal Investigation Division and the Internal Revenue Service in this matter,” said Acting Director B.W. Collier of the North Carolina SBI. “This type of collaboration is critical to ensuring a thorough and intensive review on cases such as this. The SBI remains committed to the public interest and is prepared to continue assisting the U.S. Attorney’s office.”
The criminal investigation was conducted by the Criminal Investigation Division, Region Four and the Office of Inspector General of EPA, Criminal Investigations of the IRS and North Carolina State Bureau of Investigation with assistance from the Federal Bureau of Investigation and the Department of Defense Criminal Investigative Service.
District Man Sentenced to Prison for Assaulting Deputy U.S. MarshalsRead the Press Release
WASHINGTON - David Jenkins, also known as Ronald Pannell, 37, has been sentenced to an 18-month prison term for assaulting deputy United States marshals who were attempting to arrest him on a warrant, announced Acting U.S. Attorney Vincent H. Cohen, Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Jenkins, of Washington, D.C., pled guilty in January 2015, in the U.S. District Court for the District of Columbia, to a charge of assaulting, resisting, or impeding law enforcement officers. He was sentenced on May 13, 2015, by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, he will be placed on one year of supervised release.
According to the government’s evidence, on the night of Dec. 30, 2013, deputy marshals went to Maryland Avenue and 19th Street NE to apprehend Jenkins, who was wanted on a warrant charging him with assault with a dangerous weapon. The deputies were assigned to the warrant squad assigned to the Superior Court of the District of Columbia and wore approved U.S. Marshals Service vests with law enforcement insignia.
The deputy marshals located Jenkins in a sport utility vehicle at 19th and L Streets NE. They surrounded the vehicle and activated their police lights. Jenkins immediately fled the front passenger seat of the vehicle and ran on the sidewalk, where he made physical contact with one of the deputies, who fell and injured his hand. Jenkins continued to flee, despite verbal commands to stop. Deputies located him several minutes later, on a basement stairway in the 1700 block of Lang Place NE, where he pushed two of them and was able to run from them for about two blocks before he was apprehended. The Superior Court case later was dismissed, but Jenkins continued to face charges stemming from the assault on the deputy marshals.
In announcing the sentence, Acting U.S. Attorney Cohen and Marshal Hughes commended the actions of the U.S. Marshals Service deputies who investigated the case. He also expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
Department of Justice and Mohave County, Arizona, Superior Court Work to Ensure Equal Access for Non-English SpeakersRead the Press Release
The Justice Department announced today that it has closed its review of the Language Access Program of the Mohave County, Arizona Superior Court. The closure follows the court’s successful completion of its obligations under an agreement to provide language assistance services to all limited English proficient (LEP) court users. The Civil Rights Division began working with the Mohave County Superior Court in 2013 following the receipt of a complaint by a court user alleging that the court discriminated on the basis of national origin in violation of Title VI of the Civil Rights Act of 1964 by refusing to provide her an interpreter free of charge in a family law matter. Title VI requires recipients of federal financial assistance, such as courts, to provide competent language services free of charge to LEP individuals in all court proceedings and operations.
With the department’s assistance, the Mohave County Superior Court has made a number of improvements to its Language Access Program, including:
- Updating the Court Language Access Plan to clearly state that all LEP parties, witnesses, victims and anyone with an interest in a matter will be provided interpreter services in all court proceedings free of charge regardless of case type, court user income, or language spoken.
- Creating and implementing a language services complaint system.
- Improving access to services outside the courtroom for all court users through bilingual employees, “I Speak” cards available in the clerk’s office, multilingual signage, translated forms on the court’s website, and telephonic or video interpreter services available for all employees to use.
- Training all court staff on the importance of providing appropriate language services.
- Enhancing communication with stakeholders in the community.
- Working with the state court system to improve the efficiency and quality of interpreter services and translations.
“I commend the Mohave Superior Court leadership and staff for their efforts to provide all communities with equal access to justice regardless of the language they speak,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “As Mohave and other courts across Arizona continue to improve language services, we welcome the opportunity to provide assistance when needed.”
The department has worked with courts across the country to improve the provision of language services to LEP individuals. Information on an array of state court language access resources can be found here: http://www.lep.gov/resources/resources.html#SC. In 2014, the department released a “Language Access Planning and Technical Assistance Tool for Courts” which provides court systems with a series of questions to consider as they develop and implement plans to provide language assistance.
Please click here for further information about FCS. For additional LEP-related resources, please go to the Federal Interagency LEP website.
Couple Heads to Prison for Sex Trafficking of Minors in Two StatesRead the Press Release
HOUSTON – David J. Golson, 28, and Arieal J. Bishop, 30, have been ordered to prison following convictions related to crimes that occurred in both Texas and Arkansas, announced U.S. Attorney Kenneth Magidson.
Golson previously pleaded guilty in November 2014 to one count of sex trafficking of minors in Texas and one count of conspiracy to commit sex trafficking in the Arkansas case. Bishop had pleaded to possession of child pornography and transportation of minors in the Texas case and sex trafficking of minors in the Arkansas case.
Today, U.S. District Judge U.S. District Judge Sim Lake handed Golson a total sentence of 60 months in federal prison to be immediately followed by 10 years of supervised release. Bishop was sentenced April 10, 2015, and ordered to serve a total of 120 months in federal prison. Both will also be ordered to register as a sex offender.
The pair faced charges in both Texas and Arkansas. The Texas indictment was returned in April 2013, alleging crimes that occurred between April and September 2011. The charges from Arkansas took place in November 2012. The Arkansas case was eventually transferred to Houston the charges merged. The convictions resolve the allegations in both cases.
The investigation revealed Bishop filmed Golson engaging in sex with a 17-year-old girl within a short time after meeting them. Bishop posted advertisements for commercial sex for both herself and the victim in Houston as well as other cities in Texas and in Louisiana. The victim traveled with Bishop to Louisiana where they met up with Golson and continued to post ads and engage in commercial sex. The victim gave money she earned from commercial sex to Bishop who then gave it to Golson.
Bishop and Golson were originally arrested in Arkansas and charged with sex trafficking offenses involving a different minor victim.
In May 2013, the two appeared in Houston federal court, at which time U.S. Magistrate Judge Stephen W. Smith found them to be a flight risk and ordered them into custody. The court considered that neither person had any legitimate source of income, residence or significant ties to the area. They will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future
The Texas case was investigated by the Houston FBI Innocence Lost Task Force and is being prosecuted by Assistant U.S. Attorney (AUSA) Sherri L. Zack. The Arkansas case was prosecuted by AUSA Kristin Bryant.
Collegeville, Pennsylvania, Man Gets Life Sentence for Preying on ChildrenRead the Press Release
Matthew Krapf, 45, of Collegeville, Pennsylvania, was sentenced today to life in prison for 10 counts, each, of using or inducing a child to pose for child pornography, use of an interstate commerce facility to entice a minor to engage in sexual contact, three counts of distribution of child pornography and one count of possession of child pornography. He was also sentenced to 10 years supervised release. Krapf pleaded guilty on Oct. 28, 2014, to all 24 counts.
Krapf met his victims online and directed the conversation to sexually explicit chats. As early as December 2012, the defendant recorded Skype video chats, later recovered by police, that depicted the defendant directing one victim to masturbate for him. In the months that followed, the defendant met the victim at his parent’s home and engaged in sexual conduct from their very first encounter. A 13-year old victim met the defendant online and engaged in sexually explicit chats from the beginning of their communication, even after informing the defendant that he was just 13-years old. The defendant videotaped his encounters and later distributed the videos over the Internet.
In October 2013, Montgomery County, Pennsylvania, detectives received consent to take over one victim’s identity and corresponded with the defendant on-line and via text messaging. The defendant, believing that he was speaking with the 14-year old victim, made arrangements to meet him at his parents’ home on Nov. 2, 2013 to have sex again. Krapf was arrested by Montgomery County detectives after he entered the victim’s house.
When agents seized his computers, cell phones and collection of DVDs and CDs, a forensic exam uncovered more than two million images of child pornography, including more than 100 videos that the defendant manufactured of the victim teenage boys. Krapf’s collection is believed to be the largest ever seized in the Eastern District of Pennsylvania.
Krapf admitted to meeting one victim on at least eight occasions during the summer of 2013 and engaging in oral sex, anal sex and digital penetration. He also admitted that he knew the victim was just 14-years old before he had any sex with him. Krapf told police that during the time he was engaging in the sexual abuse of this boy, he directed him to have sex with other juvenile boys, record the sex and then send the recording to him and to take nude and sexually explicit photographs of himself. Defendant Krapf also confirmed the July 2013 sexual abuse of the two minor boys, admitting that he engaged in oral and anal sex with these boys, knowing that they were minors and videotaped the encounter. In his confession the defendant also admitted to sexually abusing at least four other underage boys. His abuse of these boys was over a nine year period, dating back to 2005.
“This predator used the internet to identify and begin the process of sexually exploiting his numerous victims,” said U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania. “He then took full advantage of his vulnerable victims through a series of horrific sexual assaults over several years. His post-arrest admissions provide disturbing insight into the methods he used to entice his young victims for his criminal gratification. The sentence handed down today is the only way to guarantee that he will never again victimize an innocent child.”
“The heinous crimes this pedophile committed are something his victims will have to deal with for the rest of their lives, but the community will now be safe from this menace,” said Special Agent in Charge John P. Kelleghan of Homeland Security Investigation (HSI) of Philadelphia. “He will be spending his life in prison as a result of the excellent cooperative efforts of the Limerick, Pennsylvania Police Department, HSI, the Montgomery County District Attorney’s Office and the U.S. Attorney’s Office of the Eastern District of Pennsylvania.”
The case was investigated by HSI, the Montgomery County District Attorney’s Office and the Limerick Township Police Department, and is being prosecuted by Assistant U.S. Attorney Michelle Rotella of the Eastern District of Pennsylvania.
Collegeville Man Gets Life Sentence for Preying on ChildrenRead the Press Release
PHILADELPHIA - Matthew Krapf, 45, of Collegeville, PA, was sentenced today to life in prison for 10 counts, each, of using or inducing a child to pose for child pornography, use of an interstate commerce facility to entice a minor to engage in sexual contact, three counts of distribution of child pornography, and one count of possession of child pornography. He was also sentenced to 10 years supervised release. Krapf pleaded guilty on October 28, 2014 to all 24 counts.
Krapf met his victims online and directed the conversation to sexually explicit chats. As early as December 2012, the defendant recorded Skype video chats (later recovered by police) that depicted the defendant directing one victim to masturbate for him. In the months that followed, the defendant met the victim at his parent’s home and engaged in sexual conduct from their very first encounter. A 13-year old victim met the defendant online and engaged in sexually explicit chats from the beginning of their communication, even after informing the defendant that he was just 13-years old. The defendant videotaped his encounters and later distributed the videos over the Internet.
In October 2013, Montgomery County detectives received consent to take over one victim’s identity and corresponded with the defendant on-line and via text messaging. The defendant, believing that he was speaking with the 14 year old victim, made arrangements to meet him at his parents’ home on November 2, 2013 to again have sex. Krapf was arrested by Montgomery County detectives after he entered the victim’s house.
When agents seized his computers, cell phones, and collection of DVDs and CDs, a forensic exam uncovered more than 2 million images of child pornography, including more than 100 videos that the defendant manufactured of the victim teenage boys. Krapf’s collection is believed to be the largest ever seized in the Eastern District of Pennsylvania.
Krapf admitted to meeting one victim on at least eight occasions during the summer of 2013 and engaging in oral sex, anal sex, and digital penetration. He also admitted that he knew the victim was just 14 years of age before he had any sex with him. Krapf told police that during the time he was engaging in the sexual abuse of this boy, he directed him to have sex with other juvenile boys, record the sex, and then send the recording to him, and to take nude and sexually explicit photographs of himself. Defendant Krapf also confirmed the July 2013 sexual abuse of the two minor boys, admitting that he engaged in oral and anal sex with these boys, knowing that they were minors, and videotaped the encounter. In his confession the defendant also admitted to sexually abusing at least four other underage boys. His abuse of these boys was over a nine year period, dating back to 2005.
“This predator used the internet to identify and begin the process of sexually exploiting his numerous victims,” said U.S. Attorney Zane David Memeger. “He then took full advantage of his vulnerable victims through a series of horrific sexual assaults over several years. His post-arrest admissions provide disturbing insight into the methods he used to entice his young victims for his criminal gratification. The sentence handed down today is the only way to guarantee that he will never again victimize an innocent child.”
“The heinous crimes this pedophile committed are something his victims will have to deal with for the rest of their lives, but the community will now be safe from this menace,” said John P. Kelleghan, HSI Philadelphia special agent in charge. “He will be spending his life in prison as a result of the excellent cooperative efforts of the Limerick Police Department, HSI, the Montgomery County District Attorney’s Office, and the U.S. Attorney’s Office.”
The case was investigated by Homeland Security Investigations, the Montgomery County District Attorney’s Office, and the Limerick Township Police Department, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Chubbuck Man Indicted for Wire Fraud and Theft of Government FundsRead the Press Release
BOISE - Travis John Attanasio, 53, of Chubbuck, Idaho, was indicted yesterday by a federal grand jury in Boise for wire fraud and theft of government funds, U.S. Attorney Wendy J. Olson announced.
The indictment alleges that between June 29, 2012, and October 30, 2014, Attanasio defrauded a disabled veteran and the federal government of $259,563.12. Attanasio served as the fiduciary for the veteran and instead of conserving the veteran’s funds and monthly benefits from the Veteran’s Administration and Social Security Administration, he spent them at various retail and online vendors. The indictment further alleges that during the time Attanasio received and spent the funds, he knew that the veteran lived in a state veteran’s home and was disabled.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. The charge of theft of government funds is punishable by up to 10 years in prison, a maximum fine of $250,000.00 and up to three years of supervised release.
The case is being jointly investigated by the U.S. Department of Veteran Affairs Office of Inspector General and the Social Security Administration Office of Inspector General with assistance from the Pocatello Police Department. The case is being prosecuted by a Special Assistant U.S. Attorney as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office to prosecute social security fraud.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chicago Man Sentenced to 10.5 Years in Prison for Sex Trafficking of Underage Girl in Sacramento AreaRead the Press Release
SACRAMENTO, Calif. — Marquist Piere Bradford, 29, of Chicago, was sentenced today to 10 and a half years in prison for sex trafficking of minors, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, Bradford recruited a 15-year-old girl to travel from Fresno to Sacramento where she was used by Bradford as part of a prostitution business from January 19 through February 5, 2012. Bradford maintained an apartment in Rancho Cordova that he used as a base of operations for a prostitution business that spanned the Sacramento and Bay areas, as well as cities outside California. At least two of Bradford’s victims were under the age of 18. Bradford fled from Sacramento to the Chicago area after he became aware of law enforcement’s investigation of this case.
US Attorney Wagner stated: “The U.S. Attorney’s Office is committed to ensuring that the weakest and most vulnerable in our society receive the full protections to which they are entitled as Americans. Few are weaker and more vulnerable than the child victims of commercial sexual exploitation. This office is attacking the problem with federal, state and local law enforcement agencies. Since the beginning of 2011, 20 defendants have been sentenced in federal court for this offense with sentences ranging from five to 50 years in prison.”
“Exploiters like Bradford profit from trafficking vulnerable minors, using violence and threats to control the victims,” said Supervisory Special Agent Maria Johnson of the FBI's Sacramento field office. “The FBI and our task force partners are committed to recovering exploited minors and ensuring their traffickers face justice.”
Sacramento County Sheriff Scott Jones stated: “This resolution demonstrates the commitment of the Sacramento County Sheriff's Department in combatting human trafficking in our region, and the importance of ongoing collaborations between law enforcement agencies on all levels. Crimes involving human trafficking and the Internet occur in a dynamic environment that requires advanced investigative techniques. This case was an opportunity to stem the flow of crimes affecting human trafficking victims nationwide.”
This case was the product of an investigation by the Sacramento FBI Innocence Lost Task Force and the Sacramento County Sheriff’s Department. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Charges Filed in Robberies of Pizza Delivery PeopleRead the Press Release
PHILADELPHIA - Titus Kellam, 20, and Kimberly Monfort, 24, both of Philadelphia, Pennsylvania, were charged today by indictment in a scheme involving six armed robberies of pizza delivery employees in Philadelphia, announced United States Attorney Zane David Memeger. Kellam is charged with committing all six robberies, between November 26, 2014 and December 21, 2014, and with brandishing a firearm in two of those robberies. Monfort is charged in one robbery. The charges include Hobbs Act robbery and using, carrying, and brandishing a firearm during a crime of violence.
The indictment alleges that on November 26, 2014, Kellam and Monfort robbed a pizza delivery employee of Key Pizza, located at 1846 S. 12th Street, of cash, food, and a cell phone belonging to that employee, by means of actual and threatened violence. Kellam is further charged in the armed robberies of pizza delivery employees of: Wolf Street Pizza, located at 2135 Wolf Street; City Pizza, located at 100 Snyder Avenue; Uncle Oogie’s Pizzeria, located at 2010 Gerritt Street; Not Just Pizza, located at 2240 S. 11th Street; and Isabella Pizza, located at 1824 East Passyunk Avenue, all in Philadelphia, Pennsylvania.
If convicted, Kellum faces a maximum possible statutory sentence of life in prison, with a statutory mandatory minimum sentence of 32 years imprisonment; Monfort faces a maximum statutory sentence of 20 years in prison.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
Canada Extradites Second Drug Trafficking Defendant to Colorado for ProsecutionRead the Press Release
DENVER – Javier Batista-Cervantes, age 35, who was until today in Canada, was extradited from Canada to Denver, Colorado so he can face drug trafficking charges, U.S. Attorney John Walsh and Drug Enforcement Administration (DEA) Denver Division Special Agent in Charge Barbra Roach announced. Batista-Cervantes was indicted, along with six others, in 2010 for the importation of cocaine from Mexico. The cocaine was brought to Colorado, where it was then later sent to Canada. The defendant made his initial appearance today before a U.S. Magistrate Judge Michael E. Hegarty. The defendant will next be in court on May 19, 2015 at 2:00 p.m. for arraignment and detention.
According to the indictment, Batista-Cervantes, along with others, conspired to import into the United States from Mexico, and then export from the United States into Canada, cocaine, a Schedule II Controlled Substance. The defendant also faces three counts of using a telephone to facilitate the commission of a drug trafficking felony. If convicted of conspiracy, he faces not less than 10 years, and up to life in federal prison, as well as up to a $4,000,000 fine. If convicted of using a telephone for drug trafficking, the defendant faces not more than 4 years imprisonment, and up to a $250,000 fine, per count, for each of the three counts.
The investigation dates back to when a co-defendant, Calvin Wayne Skidmore, was arrested in 2010 at the Del Bonita Port of Entry by U.S. Customs and Border Protection officers. A search of his vehicle yielded 46 packages of cocaine, equating to 16.5 kilograms, concealed in hidden compartments.
In addition to Batista-Cervantes, two other people named in the indictment remain fugitives. Co-defendant Hector Armondo Chavez was extradited to Colorado from Canada on January 16, 2015. Defendant Hernandez-Renteria is deceased. Dionisio Salgado, a U.S. citizen, pled guilty in a related case in federal court in Colorado and was sentenced to serve 10 years in prison. Canadian citizen Calvin Wayne Skidmore pled guilty in a related case in the District of Montana and was also sentenced to 10 years in prison.
This case was investigated by the DEA. The Lethbridge Regional Police Service, a part of the Alberta Law Enforcement Response Teams in Canada as well as the Royal Canadian Mounted Police, assisted U.S. government authorities. The U.S. Marshals Service assisted in the transportation of Batista-Cervantes from Canada to Colorado. The Department of Justice’s Office of International Affairs provided assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Michele Korver of the U.S. Attorney’s Office, District of Colorado.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
California Man Sentenced to Federal Prison for Failing to Register as a Sex Offender in New MexicoRead the Press Release
ALBUQUERQUE – Eric Leo Alexander, 37, of Anaheim, Calif., was sentenced today in federal court in Las Cruces, N.M., to 46 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). The sentence was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Alexander was arrested in Anaheim, Calif., on Jan. 10, 2014, on a criminal complaint charging him with violating SORNA by failing to register as a sex offender after traveling in interstate commerce. Alexander subsequently was transferred to New Mexico to face the charges in this case. According to the indictment, which was filed on May 14, 2014, Alexander violated SORNA by failing to register as a sex offender in Doña Ana County, N.M., between Sept. 1, 2013 and Sept. 23, 2013.
Trial against Alexander began Sept. 15, 2014, and concluded the next day when the jury returned a verdict of guilty on the sole count of the indictment. The evidence at trial established that the U.S. Marshals Service initiated an investigation into Alexander in late Sept. 2013, after California authorities requested their assistance in locating and apprehending Alexander. The California authorities reported that Alexander, a fugitive who had violated the conditions of his probation, was believed to be residing in Las Cruces.
Through investigation, the U.S. Marshals Service learned that Alexander’s criminal history included a 2012 conviction for sexually assaulting a minor for which he was sentenced to four years in a California state prison. After he was convicted, Alexander was twice informed of his requirements to register as a sex offender. Alexander also signed forms acknowledging that he was required to register as a sex offender for the rest of his life and update his registration annually. Although Alexander registered as a sex offender in California after he was released from prison in Aug. 2013, he then traveled to Las Cruces without informing the California authorities of his intention to leave.
The U.S. Marshals Service’s investigation revealed that as of Sept. 23, 2013, Alexander had been living at a Las Cruces residence with a woman and her two children for three weeks. It also revealed that Alexander had not registered with the Doña Ana County Sheriff’s Department within three days of moving to New Mexico as required by SORNA.
U.S. Attorney Damon P. Martinez praised the efforts of the U.S. Marshals Service in the investigation and the prosecution of the case. He also thanked the Doña Ana County Sheriff’s Department, Tustin (Calif.) Police Department and Santa Ana (Calif.) Police Department for their assistance in the investigation.
The case was prosecuted by Assistant U.S. Attorneys Amanda Gould and Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
CBP Officer Charged with Collecting Pay for Hours not WorkedRead the Press Release
LAREDO, Texas - Federal charges have been filed against Jesus Javier Garcia Jr., of Laredo, alleging he committed larceny by wrongfully collecting more than $40,000 in government pay for hours he did not work, announced United States Attorney Kenneth Magidson.
The indictment was returned under seal May 12, 2015, and unsealed today upon his arrest. Garcia, 34, is expected to make his initial appearance before U.S. Magistrate Judge J. Scott Hacker tomorrow at 9:00 a.m.
If convicted, he faces up to 10 years in prison and a possible $250,000 maximum fine.
The investigation leading up to the indictment was conducted by Customs and Border Protection - Office of Internal Affairs and the FBI-Border Corruption Task Force. Assistant U.S. Attorney Christopher S. Coker is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Butler County Man Pleads Guilty to Stealing $1.2 Million from Presbyterian ManorsRead the Press Release
WICHITA, KAN. – A Butler county man pleaded guilty Thursday to a federal charge of stealing more than $1.2 million from Presbyterian Manors of Mid-America, a Wichita-based company that owns assisted living centers in Kansas and Missouri, U.S. Attorney Barry Grissom said.
In Kansas, the company has facilities in Wichita, Topeka, Kansas City, Olathe, Lawrence, Emporia, Salina, Dodge City, Fort Scott, Parsons, Arkansas City, Newton, Sterling and Clay Center.
Brent A. Shryock, 44, Augusta, Kan., pleaded guilty to one count of mail fraud. In his plea, he admitted the crime occurred while he was employed as information systems director for the company. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.
In his plea, Shryock said he created four fictitious companies and used them to submit fraudulent invoices to PMMA. As a result, the company was defrauded out of more than $1.2 million.
Sentencing is set for Aug. 6. The parties have agreed to recommend a sentence of three years in federal prison and restitution to be determined by the judge.
Shryock’s wife and co-defendant, Lori A. Shryock, is scheduled for a change of plea hearing May 22.
Grissom commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Bureau of Prisons Employee Who Was Also A Union Official Sentenced for Making False Statements on DocumentsRead the Press Release
DENVER – Aide Spade, age 49, of Evergreen, was recently sentenced by Chief U.S. District Court Judge Marcia S. Krieger to 3 years’ probation and ordered to pay restitution of $14,234.18 plus an additional $5,000 fine for making and using a false document knowing it contained fraudulent statements and entries, the U.S. Attorney’s Office, the Department of Justice Office of the Inspector General (DOJ OIG), and the U.S. Department of Labor’s Office of Labor-Management Standards (OLMS) announced.
Spade was indicted by a federal grand jury in Denver on June 4, 2014. She pled guilty before Chief Judge Krieger on October 14, 2014. She was sentenced on May 11, 2015.
According to the stipulated facts contained in the plea agreement, Spade was the Treasurer of the American Federation of Government Employees (AFGE) Local 709 and an employee of the Bureau of Prisons, assigned to the Federal Correctional Institution in Englewood. As Treasurer, Spade was responsible for maintaining all financial records of the union, preparing the union’s annual financial reports, and keeping records of all financial transactions. Spade used her position as treasurer to embezzle over $59,000 that the Union had received in dues payments from its members. Overall, the defendant issued 33 unauthorized cashier’s checks to herself totaling $46.489.18 and made unauthorized cash withdrawals for her own personal use totaling $12,680. She also submitted forms to the U.S. Department of Labor on which she knowingly and willfully underreported the amount of allowances and disbursements the Union paid to her.
Her embezzlement was discovered when, in April 2012, the AFGE Local 709 membership requested financial records from Spade so they could conduct an audit. Spade delayed, which resulted in AFGE’s National office making an identical request in November of 2012. She then turned over all the records to the Union President and resigned her post with the union and her position with the Bureau of Prisons. The records included a folder with copies of checks and withdrawal slips payable to Spade totaling $40,676.86.
On November 18, 2013, agents of the Department of Labor’s Office of Labor-Management Standards, and the Department of Justice Office of the Inspector General interviewed Spade. During the interview, it was determined that Spade had embezzled union funds for her own personal use, including car payments, gas, and other expenses. After resigning, Spade has paid $44,935.00 to the union as restitution for her embezzlement, leaving a total of $14,234.18 as restitution still due and owing.
“Officials who victimize their unions and union members by stealing funds will face felony prosecution,” said U.S. Attorney John Walsh. “The consequence in this case is that the defendant is now a felon who had to resign from her union position as well as her career service job.”
“The Office of the Inspector General will continue its efforts to ensure that Department of Justice employees who break the law and fail to act with integrity are held accountable and brought to justice,” said Special Agent in Charge Norman Lau of the DOJ OIG.
“This sentence sends a clear message that there are consequences for union officers who break the trust placed in them to be good stewards of union funds,” said Emily Prosise, Denver-St. Louis District Director of the Office of Labor-Management Standards. “The Department of Labor will continue to protect workers by seeking appropriate punishment of, and restitution from, anyone attempting to use their position for personal financial gain at the expense of union members.”
This case was investigated by the Department of Justice Office of the Inspector General and the Department of Labor’s Office of Labor-Management Standards.
The defendant was prosecuted by Special Assistant U.S. Attorney Daniel Burrows and Assistant U.S. Attorney Anna Edgar.
Bossier City woman sentenced to 20 months in prison for filing false tax returnsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Bossier City woman was sentenced Monday to 20 months in prison for filing false tax returns.
Susan Santoro, 40, of Bossier City, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of making or subscribing a false tax return. She was also sentenced to one year of supervised release and ordered to pay restitution of $308,213 to Top Dollar Pawn in Bossier City, $88,347 to the Internal Revenue Service and $44,554.63 to the Louisiana Department of Revenue. According to evidence presented at the January 26, 2015 guilty plea, Santoro, who was the general manager of Top Dollar Pawn in Bossier City from 2009 to 2011, embezzled more than $300,000 from the company. She embezzled the money by falsifying records, which she regularly reviewed and reconciled. A review of her personal bank accounts revealed numerous large, unexplained cash deposits that far exceeded her income from Top Dollar Pawn. The IRS considers the money, which Santoro did not report on her tax returns, as income.
“We are pleased with the sentencing of Ms. Santoro and will continue to work with our federal partners and the U.S. Attorney’s Office to vigorously pursue those who engage in financial crimes,” stated Special Agent in Charge of Internal Revenue Service Criminal Investigation – New Orleans Field Office, Jerome R. McDuffie. “Ms. Santoro used her place of employment to engage in illegal activity and our office will continue to investigate and prosecute those who engage in these actions.”
The FBI and IRS conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Cytheria D. Jernigan prosecuted the case.
Bonsall Man Pleads Guilty in Illegal Firearms Trafficking OperationRead the Press Release
SAN DIEGO – Clay Bautista-Marquez of Bonsall pleaded guilty in federal court this morning to a firearms trafficking violation, admitting that he and a co-conspirator sold six untraceable AR-15-style semi-automatic rifles for almost $6,000, and that the guns had been built from unfinished lower receivers.
According to his plea agreement, Bautista-Marquez pleaded guilty before U.S. Magistrate Judge Jill L. Burkhardt to engaging in the business of manufacturing and dealing in firearms and illegally possessing three rifles and a shotgun to protect his marijuana manufacturing and trafficking operation.
Bautista-Marquez is scheduled to be sentenced before U.S. District Judge William Q. Hayes on August 31, 2015 at 9 a.m.
The case stemmed from an investigation that resulted in the seizure of more than 50 firearms and culminated in March with the arrests of Bautista-Marquez and four other men. Christian Romero, Matthew Nutt and Ruben Tovar-Ordonez were charged with participating in a scheme to manufacture and traffic in firearms. Michael Martin was charged with possession of a firearm – specifically two silencers - not registered to him in the National Firearms Registration and Transfer Record.
Romero was the first to plead guilty on April 28, 2015. In his plea agreement, Romero admitted to manufacturing and selling six AR-15 type semi-automatic rifles bearing no manufacturer’s markings or serial numbers and built from unfinished lower receivers between the dates of December 8, 2014, and March 6, 2015. Like Bautista-Marquez, Romero did not have a license to manufacture or deal in firearms at the time. Romero is scheduled to be sentenced by Judge William Q. Hayes on July 20, 2015.
Cases of the remaining defendants are pending.
During the searches and throughout the investigation, federal agents seized more than 50 firearms, including silencers, a short-barreled shotgun, unfinished lower receivers and AR-15-style homemade assault rifles. Some of the firearms were stolen, or had obliterated serial numbers, or both. Agents also found thousands of rounds of ammunition and numerous unfinished lower receivers commonly known as ULRs.
As part of his plea agreement, Bautista-Marquez has agreed to forfeit to the government three rifles, a shotgun and ammunition and $3,860, all of which were seized during searches.
DEFENDANT Case Number: 14cr3360 Clay Bautista-Marquez Age: 31 Bonsall, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.Possession of Firearms in furtherance of a drug trafficking crime, in violation of Title 18, USC 924(c)(1)(A). Maximum Penalties: Life in prison, with a mandatory minimum 5 years in prison and maximum fine of $250,000 fine
DEFENDANT Case Number: 15mj0721 *Christian Romero Age: 22 Bonsall, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.*Romero has pleaded guilty
DEFENDANT Case Number: 15mj0740 Matthew Nutt Age: 29 Escondido, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 14cr3360 Ruben Tovar-Ordonez Age: 45 Temecula, California CHARGESUnlawful Dealing in Firearms, in violation of18 USC 922(a)(1)(A). Maximum Penalties Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 15mj0741 Michael Martin Age: 38 Bonsall, California CHARGESPossession of a Firearm not Registered to him in the National Firearms Registration and Transfer Record, 26 U.S.C. § 5861(d). Maximum Penalties: Ten years in prison, $10,000 fine.
INVESTIGATING AGENCIESDrug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
Internal Revenue Service
Bureau of Land Management
San Diego Police Department
Immigration and Customs Enforcement –Enforcement and Removal Operations
United States Marshal’s Service
San Diego Sheriff’s Department*A complaint or indictment are not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Bolingbrook Man Sentenced to 24 Months for Attempting to Illegally Export Thermal Imaging Camera to PakistanRead the Press Release
CHICAGO — A Bolingbrook man was sentenced today to 24 months in federal prison for violating U.S. export laws by attempting to ship a thermal imaging camera from his company in Schaumburg to a company in Pakistan without obtaining a license from the U.S. Commerce Department, federal law enforcement officials announced today. The defendant, Bilal Ahmed, 34, of Bolingbrook, Illinois, was also ordered to complete a term of two years of supervision after his release by U.S. District Judge Rebecca R. Pallmeyer. Ahmed was ordered to report to the Federal Bureau of Prisons on July 17, 2015. Ahmed pled guilty to one count of willfully violating export control regulations, specifically the International Emergency Economic Powers Act, between June 2009 and March 2014.
Ahmed was the owner, president, and registered agent of Trexim Corporation, an Illinois corporation based in Schaumburg, which was in the business of purchasing items for export from the United States. The defendant was regularly involved in the negotiation, purchase, and export of materials from United States manufacturers to overseas locations, including Pakistan. The defendant received orders for goods from Pakistani entities, including Pakistan’s Space and Upper Atmosphere Research Commission, also known as SUPARCO, and then purchased and exported those items to the Pakistani entities, including to SUPARCO. Ahmed knew that the export of goods, particularly the export of goods designated as “dual use” items, was controlled in some instances by the Department of State and the Department of Commerce and was aware that certain items required a license issued from either the Department of State or the Department of Commerce in order to be exported from the United States.
The items exported by Ahmed included, among other things, a FLIR HRC-U thermal imaging camera, carbon fiber to make “bullet proof-vests,” and microwave laminate, all to Pakistan. Each of those items was on a Commerce Department list of controlled export goods for reasons of national security and regional stability. A license was required to ship the items to Pakistan. The defendant exported and attempted to export those items to Pakistan without ever having applied for such a license.
“For a period of at least four years, defendant made it his business to export items from the United States to overseas locations, without obtaining the necessary licenses and approvals when required. In fact, based just on the purchase orders recovered from defendant’s computer at the time of his arrest, purchase orders reflected the export of approximately 203 items from the United States to Pakistan,” stated Assistant U.S. Attorney Bethany Biesenthal in the government’s sentencing memorandum.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Edward Holland, Supervisory Special Agent of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement. The Justice Department’s National Security Division provided assistance in the case.
The government was represented by Assistant U.S. Attorney Bethany Biesenthal.
Belle Chasse Man Sentenced for Misuse of a Mariner LicenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILLIE ENGLISH, age 42, of Belle Chasse, was sentenced today for his misuse of a federal license.
U.S. District Judge Mary Ann Vial Lemmon sentenced ENGLISH to three years probation with six months home detention.
According to the court documents, in November 2008, ENGLISH used a fake U.S. Coast Guard Merchant Mariner’s License, purporting to be a Master of vessels not more than 100 gross tons, to maintain employment as a vessel captain at Bud’s Boat Rental in Belle Chase, Louisiana. ENGLISH admitted he made the license while he was a deckhand onboard another vessel for another employer.
U.S. Attorney Polite praised the work of the Coast Guard Investigative Service in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Baltimore Robber Exiled to More Than 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Robert Collins, age 49, of Baltimore, Maryland, today to 125 months in prison followed by five years of supervised release for robbery, attempted robbery, and carrying and brandishing a firearm during a robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on December 15, 2013, Collins walked into the New York Fried Chicken Restaurant at 542 E. Patapsco in Baltimore. He pointed a handgun at the cashier, demanded that the register be opened and took about $290.
That same day, Collins walked into the Italiano’s Restaurant at 2229 Washington Boulevard in Baltimore. He pointed a handgun at a cashier and demanded money. The cashier refused to cooperate. Collins grabbed three iPhones belonging to other Italiano’s employees and fled. Collins was apprehended and the three iPhones were recovered. Additionally, a .380 caliber pistol was found near Collins.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Scott A. Lemmon, who prosecuted the case.
Baltimore Robber Exiled to 20 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Sharmaine Christopher Diggs, age 35, of Baltimore, today to 20 years in prison followed by five years of supervised release for robbery, and two counts of using and brandishing a firearm during a robbery. Judge Russell also entered an order that Diggs pay restitution of $19,000.
Late yesterday, following a six day trial, a federal jury convicted Diggs’ co-defendant Paul Chance, age 28, of Baltimore, Maryland, of conspiring to commit robbery, three counts of robbery, four counts of possessing and brandishing a firearm in furtherance of robbery, and being a felon in possession of a firearm.
The sentence and conviction were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Marilyn Mosby; Baltimore Police Commissioner Anthony W. Batts; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County Police Chief Tim Altomare.
According to Diggs’ plea agreement, on March 29, 2013, Diggs and Chance arrived at the Ashland Café on York Road in Cockeysville, Maryland. Both brandished semi-automatic handguns at the owner, who they forced inside his business and bound his hands with duct tape. They threatened to shoot the owner if he did not provide money, and pistol-whipped him. The defendants took $4,000 and a .45 caliber weapon that was in the kitchen safe, and another $15,000 from a downstairs safe. The robbers then forced the owner into the walk-in freezer, and left.
On May 3, 2013, Diggs and another co-conspirator came back to rob the café a second time. Diggs wore a mask and carried a duffle bag and a handgun. The café’s employees called the police. The robbers’ vehicle was stopped a short distance away. Diggs fled, but was located an hour later in the woods. Detectives executed a search warrant and recovered the duffle bag containing a ski mask, duct tape and the handgun and ammunition that was stolen in the first robbery.
According to trial testimony, Chance, armed with a firearm, also robbed the following businesses: Pizza Hut on Annapolis Road in Severn, Maryland on April 7, 2013; the Hobbit Liquor Store on Bowleys Lane in Baltimore on April 26, 2013; and attempted to rob the Olive Garden on Perry Hall Boulevard in Baltimore on April 29, 2013. The jury also found that on April 19, 2013, Chance possessed a semi-automatic rifle and a pump action shotgun. Because of a prior felony conviction, Chance was prohibited from possessing a firearm.
Judge Russell has scheduled sentencing for Paul Chance on August 24, 2015, and he faces a mandatory minimum sentence of 82 years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore City, Baltimore County and Anne Arundel County Police Departments and Baltimore City, Baltimore County and Anne Arundel County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Patricia C. McLane, who prosecuted the case.
Baltimore City Police Officer Charged with TheftRead the Press Release
Baltimore, Maryland – Baltimore City Police officer Maurice Lamar Jeffers, age 47, of Savage, Maryland, has been charged by criminal complaint with theft of government property and stealing property as a federal officer. The criminal complaint was returned on Friday, May 8, 2015 and unsealed today.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“The affidavit alleges that agents carried out an undercover operation and obtained a video recording of the defendant stealing cash while he believed he was executing a search warrant,” said U.S. Attorney Rod J. Rosenstein. “I want to thank the officers of the Baltimore Police Department and other agencies that assisted in this investigation.”
According to the criminal complaint, Jeffers has been a sworn member of the Baltimore Police Department for the last 12 years, and is currently assigned as a Task Force Officer (TFO) to the U.S. Marshals’ Capital Area Regional Fugitive Task Force (CARFTF). As a TFO, Jeffers received special deputation to execute arrest and search warrants supporting the federal task force. Jeffers is responsible for locating and arresting offenders who have active local and federal arrest warrants and assisting in locating individuals for other jurisdictions and agencies upon request.
The criminal complaint alleges that Jeffers stole approximately $3,000 on March 10, 2015, while Jeffers was on official business as a TFO for CARFTF. According to the affidavit filed in support of the criminal complaint, law enforcement conducted a covert operation in which agents rented a hotel room and set up surveillance equipment. Law enforcement also placed $3,200 in cash throughout the room – a portion of the money was placed in pain view and the rest was hidden.
At the direction of law enforcement involved in this investigation, Jeffers and other members of CARFTF were told that the subject of a fictitious drug investigation was staying at the hotel room. Jeffers and CARFTF members were directed to secure the subject and the hotel room so that law enforcement could later execute a search warrant in the subject’s hotel room.
According to the criminal complaint, Jeffers and another CARFTF member went to the hotel room to secure it. After Jeffers and the other TFO conducted a security check of the room the other TFO left to report that the room was secured. According to the criminal complaint, after the other TFO left, audio and video surveillance captured Jeffers searching the room and placing the money into his pants pockets. After Jeffers and the other CARFTF members left, law enforcement involved in this investigation conducted an inventory of the hotel room. As seen on the video, the prerecorded funds that had been planted in the hotel room – totaling $3,000 – were gone. The stolen cash was not submitted as evidence, as it should have been if it had been lawfully seized.
Jeffers faces a maximum sentence of 10 years in prison for each of the two theft counts. An initial appearance was held on May 8, 2015, in U.S. District Court in Baltimore. Jeffers was released under the supervision of U.S. Pretrial Services.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Baltimore FBI Public Corruption Task Force, which includes Agents and law enforcement officers from the IRS, the Baltimore Police Department, the Prince George’s County Police Department and the Baltimore FBI, for their work in the investigation, and recognized the U.S. Marshals Service for its assistance. Mr. Rosenstein thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.
Attorney General Loretta E. Lynch Appoints U.S. Attorney Wagner to Co-chair White Collar/Fraud SubcommitteeRead the Press Release
SACRAMENTO, Calif. — The United States Attorney’s Office announced today that Attorney General Loretta E. Lynch has appointed U.S. Attorney Benjamin B. Wagner to serve as co-chair of the White Collar/Fraud Subcommittee of the United States Department of Justice’s Attorney General’s Advisory Committee (AGAC).
Created in 1973, the AGAC provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management and operational issues, helping to shape policies to accomplish the Department’s core mission of serving justice. The White Collar/Fraud Subcommittee reports to the AGAC and represents the voice of the 93 U.S. Attorneys in matters relating to white collar crime. U.S. Attorney Wagner’s co-chair on the White Collar/Fraud Subcommittee is Melinda Haag, the U.S. Attorney for the Northern District of California.
Wagner previously served for three years on the AGAC after being appointed by Attorney General Eric Holder in May 2010. Wagner continues to serve on several AGAC subcommittees, including those focusing on Civil Rights and Terrorism and National Security.
Arizona Man Sentenced for Communicating ThreatsRead the Press Release
GREENSBORO, N. C. - An Arizona man was sentenced to 30 months in prison for communicating interstate threats, announced United States Attorney Ripley Rand.
Aaron Jerome Khan, 27, of Tucson, Arizona, pleaded guilty on December 1, 2014, to one count of interstate communication of a threat with intent to injure, an offense punishable by a maximum of 5 years imprisonment. He was sentenced on May 12, 2015, by the Honorable Catherine C. Eagles to 30 months imprisonment followed by 3 years supervised release.
Khan made threatening communications to the victim, a person with whom Khan had had a dating relationship while they both lived in Arizona, by sending numerous e-mail and text messages to the victim between December 2011 and October 2014. After the dating relationship ended, the victim obtained a no-contact order in Arizona and later began attending school in North Carolina. Khan continued to send the victim harassing messages via email and text message, which she first reported to campus security officials on December 9, 2011. Campus security officers contacted Khan to ask him to stop sending the victim messages; Khan said he would do so, but he continued to harass the victim with messages, including threats to kill the victim. In some messages, Khan included images of handguns. After Khan found out that the victim was attending school in North Carolina, he told the victim that that he was coming to North Carolina to see her. Airline records show that Khan flew to Raleigh on October 2, 2014. While traveling to North Carolina, Khan repeatedly texted and emailed the victim of his intention to find her. The victim notified the police, and Khan was arrested on state cyberstalking charges upon his arrival in North Carolina.
“No one deserves to be subjected to this kind of deplorable behavior, and our office will not tolerate violence against intimate partners,” said United States Attorney Rand. “We will continue to work effectively with our federal, state, and local partners to hold abusers accountable for their criminal acts and to help domestic violence victims take their lives back.”
This case was prosecuted by Assistant United States Attorney Anand P. Ramaswamy and investigated by the Town of Chapel Hill Police Department and by the University of North Carolina Department of Public Safety.
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Ambulance Companies Pay $595,000 to Settle Allegations of Medically Unnecessary Ambulance TransportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EFK OF CONNECTICUT, INC., d/b/a NELSON AMBULANCE SERVICE, located in North Haven, and SKMP ENTERPRISES, INC., d/b/a ACCESS AMBULANCE SERVICE, located in Bridgeport, have entered into a civil settlement agreement with the government in which they will pay $595,000 to resolve allegations that they improperly billed the Medicare and Medicaid programs.
The government alleges that NELSON AMBULANCE SERVICE (“NELSON”) and ACCESS AMBULANCE SERVICE (“ACCESS”), routinely billed for non-emergency, scheduled ambulance services that were not medically necessary. The medically unnecessary ambulance services were provided to Medicare and Medicaid beneficiaries being transported to and from their regularly scheduled dialysis treatments. Patients transported by NELSON and ACCESS were typically picked up at their residences or at nursing homes and transported by ambulance to and from dialysis treatment three times per week.
Relevant regulations indicate that medical necessity for ambulance transport is established when the patient’s condition is such that the use of any other means of transportation is contraindicated. The regulations indicate that the patient must be “bed confined” or otherwise have a medical condition such that transportation by ambulance is medically required.
The government alleges that NELSON and ACCESS, which have the same ownership, regularly transported patients by ambulance, at an average cost of approximately $380 for each round trip, when the patients did not meet the criteria of being “bed confined” or otherwise have a medical condition requiring transportation by ambulance. Some of the same patients NELSON and ACCESS regularly transported by ambulance were transported to and from other doctor’s visits utilizing a wheelchair van, at an average cost of only $60 for each round trip.
To resolve their liability, NELSON and ACCESS will pay $595,000 for conduct occurring between January 2008 and August 2013.
In entering into the civil settlement agreement, NELSON and ACCESS did not admit liability.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
A Miami-Dade Resident was Sentenced for Selling Personal Identifying Information to be used in a Tax Refund Fraud SchemeRead the Press Release
A Miami-Dade County resident was sentenced to 12 months and one day in prison, followed by two years of supervised release for selling personal identifying information (PII), including stolen names, dates of birth, and social security numbers belonging to real individuals (most of whom were from the State of Rhode Island), to be used in a tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jeff Pierre Michel, 25, previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2).
According to court documents, on April 8, 2013, a confidential law enforcement source arranged for Michel to sell PII to an undercover law enforcement officer. On April 9, 2013, Michel sold 100 pieces of PII, belonging to 100 different individuals, to the undercover law enforcement officer in exchange for $500. On April 22, 2013, Michel sold additional pieces of PII (less than the previously agreed upon amount of 150 pieces of PII) to an undercover law enforcement officer in exchange for $800. In order to compensate for the missing PII, Michel provided the undercover law enforcement officer with a TurboTax username and password. Michel intended that the PII would be used, along with the TurboTax username and password, to commit stolen identity income tax refund fraud over the internet.
Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. This case was prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
13 May 2015
World Triathlon Corporation (Ironman) Forfeits More Than $2.7 Million in Lottery ProceedsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that the World Triathlon Corporation (Ironman) has agreed to forfeit $2,761,910 in lottery proceeds to the United States government. According to a sworn complaint filed in U.S. District Court in Tampa, Ironman illegally charged athletes for a chance to win the opportunity to compete in the “Ironman World Championship,” held each October in Hawaii.
According to the complaint, Ironman, the company that organizes, promotes, and licenses “Ironman” triathlons around the world, has agreed to forfeit to the United States lottery proceeds that it has earned since October 24, 2012. Ironman charged athletes, who did not otherwise qualify, $50 to enter lotteries for the chance to compete in the Ironman World Championship. Thousands of athletes purchased multiple entries. Ironman would have been permitted to give away the opportunity to compete in the race, but violated the law when it charged athletes money for the chance to win.
Ironman cooperated fully in the investigation and voluntarily provided all information necessary to allow the parties to promptly resolve the matter.
The case was investigated by Assistant United States Attorneys James A. Muench and Natalie Hirt Adams, with assistance from the Federal Bureau of Investigation.
Woman Sentenced to 33 Months for Selling Stolen Merchandise on the InternetRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced Maria Steele Vera, 60, of Dallas, Texas to 33 months in prison and to one year of supervised release for selling stolen merchandise on the Internet, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. In April 2014, Vera pleaded guilty to wire fraud in connection with her scheme. Judge Conrad also ordered Vera to pay more than $70,000 in restitution.
Acting U.S. Attorney Rose is joined in making today’s announcement by Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division.
According to filed court documents and court proceedings, from 2009 to 2013, Vera shoplifted items from numerous hobby and craft retail stores in Mecklenburg County and elsewhere, which she then listed for sale on E-bay. Court records indicate that Vera created various E-bay seller accounts and sold the stolen items below retail value. Court records also show that this scheme netted Vera between $400,000 and $1,000,000. According to court records, when law enforcement executed a search warrant at Vera’s residence, they recovered 70 plastic crates full of stolen craft and scrapbooking products, as well as 50 flat rate mailing boxes.
Following the sentencing hearing Vera was released on bond. She will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Acting U.S. Attorney Rose credited the U.S. Secret Service for the investigation leading to today’s sentence.
Assistant U.S. Attorney Kevin Zolot of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Virginia Department of Juvenile Justice Employee Pleads Guilty to BriberyRead the Press Release
RICHMOND, Va. – Connie E. Richardson, 64, of Richmond, Virginia, pleaded guilty today to a criminal information charging her with bribery concerning a program receiving federal funds.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the Richmond Division of the Federal Bureau of Investigation, made the announcement after the plea was accepted by U.S. Magistrate Judge Roderick Young.
Richardson faces a maximum penalty of 10 years in prison when she is sentenced on July 30, 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.
According to a statement of facts filed with the plea agreement, Richardson was employed by the Virginia Department of Juvenile Justice (VDJJ) as its Runaway Coordinator. In that role, she was responsible for administering services related to the transport of juveniles from one state to another. From October 2010 through February 2015, Richardson accepted over $30,000 from the owner of a security company that provided transportation and escort services for VDJJ. In return, Richardson steered the vast majority of VDJJ’s transportation and escort requests to the company and she knowingly approved inflated and falsified invoices submitted by the company. From October 2010 through February 2015, VDJJ paid this security company over $469,000 for transportation and escort services.
This case was investigated by Federal Bureau of Investigation and the Virginia State Police Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15cr78.
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United States Reaches $22 Million Settlement Agreement with CVS for Unlawful Distribution of Controlled SubstancesRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces today that CVS Health has agreed to pay $22 million to resolve allegations that two of its retail stores in the City of Sanford distributed controlled substances based on prescriptions that had not been issued for legitimate medical purposes by a health care provider acting in the usual course of professional practice. CVS acknowledged that its retail pharmacies had a responsibility to dispense only those prescriptions that were issued based on legitimate medical need. CVS further acknowledged that certain of its retail stores dispensed certain controlled substances in a manner not fully consistent with their compliance obligations under the Controlled Substances Act and the related regulations.
The Controlled Substances Act authorizes the United States to seek civil penalties for a pharmacy’s failure to fulfill its corresponding responsibility to dispense only those prescriptions that have been issued for a legitimate medical purpose by a health care provider acting in the usual course of professional practice. Knowingly filling an illegitimate prescription subjects a pharmacy to civil penalties under the Controlled Substances Act.
This settlement caps off an investigation that began as part of DEA’s crackdown on pill mills in Florida. Prescription drug addicts were travelling to Florida, known as the nation’s epicenter for the illegal distribution of prescription drugs, for access to physicians who were prescribing pain medication without regard to medical need and to pharmacies that were filling the prescriptions despite red flags that they were illegitimate. The investigation led to DEA’s execution of administrative inspection warrants at two CVS stores in Sanford. As a result, the DEA licenses of both stores were revoked in June 2012.
“Prescription drug abuse continues to be a problem in Florida and throughout the country,” said U.S. Attorney Bentley. “We are using all of the tools at our disposal to combat this problem, including civil penalties for pharmacies that fail to comply with the Controlled Substances Act.”
This settlement illustrates the United States Attorney’s Office efforts to address the wrongdoing that occurred at the height of Florida’s pill mill crisis.
This matter was investigated by the Drug Enforcement Administration Diversion Group in Orlando. It was handled by Assistant U.S. Attorney Katherine M. Ho.
United Kingdom Man Pleads Guilty to Federal Charges in Two Separate Fraud ConspiraciesRead the Press Release
HOUSTON – Marc T. Duchesne, 53, of the United Kingdom, has pleaded guilty to two federal charges stemming from separate schemes involving financial fraud in Texas and the District of Columbia, announced U.S. Attorney Kenneth Magidson of the Southern District of Texas and Vincent H. Cohen Jr., Acting U.S. Attorney for the District of Columbia.
Duchesne pleaded guilty May 11, 2015, to one count of conspiracy to commit wire fraud in the Texas case and one count of conspiracy to commit securities fraud and wire fraud in the unrelated case District of Columbia case. Duchesne entered both pleas before U.S. District Judge Reggie B. Walton in the District of Columbia.
In the Texas case, Duchesne and his co-conspirators engaged in a scheme from 2000 to 2005 that involved the selling of fraudulent liability insurance policies to apartment complexes, condominium associations, bars, restaurants and other businesses throughout the United States and Caribbean. One company that purchased the insurance was Shoreline Cruises Inc. which operated a 40-foot tour boat called the Ethan Allen on Lake George, N.Y. The tour boat operator discovered its insurance policy was fictitious after the Ethan Allen sank on Oct. 2, 2005, in a tragic accident that claimed the lives of 20 elderly tourists. The total loss was $2,455,531.
Four others have also been convicted in this scheme. Christopher Purser pleaded guilty to conspiracy to commit wire fraud, while Edmund Benton, Malchus Irvin Boncamper and Robert Steve Mills pleaded guilty to conspiracy to launder money. Purser received a sentence of 188 months, while Boncamper is serving a 97-month-term. Benton and Mills were both ordered to serve 120 months of federal imprisonment.
In the separate and unrelated case in the District of Columbia, Duchesne engaged in a conspiracy from May 2002 through October 2002 to defraud investors by fraudulently creating Nationwide Capital Corporation (publicly traded as NCCN) and then artificially driving up its stock price. Unbeknownst to the U.S. Securities and Exchange Commission (SEC) or investors, Duchesne and his co-conspirators owned and controlled vast amounts of the stock. They employed tactics such as bid manipulation, false SEC filings and false press releases to effectuate their scheme. The National Association of Securities Dealers estimated losses to investors to be in excess of $2 million.
The plea, which is contingent upon the court’s approval, calls for a prison sentence of 91-97 months. Also, as part of the plea agreement, Duchesne is to pay a total of $4,543,261 ($2,455,531 and $2,087,730 in the Texas and District of Columbia cases, respectively). Judge Walton has set sentencing for July 30, 2015.
The case in Texas was investigated by Internal Revenue Service - Criminal Investigation with assistance from Homeland Security Investigations and the Texas, New York and California Departments of Insurance. During this four-year investigation, the U.S. government also received extensive and valuable assistance from the governments of St. Kitts and Nevis and also St. Vincent and the Grenadines. Investigators also received valuable assistance from the governments of The Bahamas, Nicaragua, The Philippines and Australia. Assistant U.S. Attorneys John Lewis and Belinda Beek prosecuted the case.
The case in the District of Columbia was investigated by the FBI’s Washington Field Office and the SEC. Assistant U.S. Attorneys Mervin A. Bourne Jr. and Lionel André prosecuted that case.United Kingdom Man Pleads Guilty to Federal Charges in Two Separate Fraud ConspiraciesRead the Press Release
WASHINGTON – Marc T. Duchesne, 53, of the United Kingdom, has pled guilty to two federal charges stemming from separate schemes involving financial fraud in the District of Columbia and Texas, announced Vincent H. Cohen, Jr., Acting U.S. Attorney for the District of Columbia, and Kenneth Magidson, U.S. Attorney for the Southern District of Texas.
Duchesne pled guilty on May 11, 2015, to one count of conspiracy to commit securities fraud and wire fraud in the District of Columbia case and one count of conspiracy to commit wire fraud in the unrelated case that had originated in Texas. Duchesne entered both pleas before the Honorable Reggie B. Walton in the United States District Court for the District of Columbia.
The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 91 to 97 months. Also, as part of the plea agreement, Duchesne is to pay a total of $4,543,261 ($2,087,730 and $2,455,531 in the District of Columbia and Texas cases, respectively). Judge Walton has set sentencing for July 30, 2015.
According to the government’s evidence, in the District of Columbia case, Duchesne engaged in a conspiracy from May 2002 through October 2002 to defraud investors by fraudulently creating Nationwide Capital Corporation (publicly traded as NCCN), and then artificially driving up its stock price. Unbeknownst to the U.S. Securities and Exchange Commission (SEC) or investors, Duchesne and his co-conspirators owned and controlled vast amounts of the stock. They employed tactics such as bid manipulation, false SEC filings, and false press releases to effectuate their scheme. The National Association of Securities Dealers estimated losses to investors to be in excess of $2 million.
In the Texas case, Duchesne and his co-conspirators engaged in a scheme from 2000 to 2005 that involved the selling of fraudulent liability insurance policies to apartment complexes, condominium associations, bars, restaurants and other businesses throughout the United States and Caribbean. One company that purchased the insurance was Shoreline Cruises Inc. which operated a 40-foot tour boat called the Ethan Allen on Lake George, N.Y. The tour boat operator discovered its insurance policy was fictitious after the Ethan Allen sank on Oct. 2, 2005, in a tragic accident that claimed the lives of 20 elderly tourists. The total loss was $2,455,531.
Four others have also been convicted in the Texas matter. Christopher Purser pled guilty to conspiracy to commit wire fraud, while Edmund Benton, Malchus Irvin Boncamper and Robert Steve Mills pled guilty to conspiracy to launder money. Purser received a sentence of 188 months, while Boncamper is serving a 97-month-term. Benton and Mills were both ordered to serve 120 months of federal imprisonment.
The case in the District of Columbia was investigated by the FBI’s Washington Field Office and the SEC. Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Lionel André prosecuted that case. Assistance was provided by Paralegal Specialists Corinne Kleinman and Krishawn Graham.
The case in Texas was investigated by Internal Revenue Service - Criminal Investigation with assistance from Homeland Security Investigations and the Texas, New York and California Departments of Insurance. During this four-year investigation, the U.S. government also received extensive and valuable assistance from the governments of St. Kitts and Nevis and also St. Vincent and the Grenadines. Investigators also received valuable assistance from the governments of The Bahamas, Nicaragua, The Philippines and Australia. Assistant U.S. Attorneys John Lewis and Belinda Beek prosecuted the case.