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11 May 2015
Kanawha County woman gets probation and home confinement for possessing opiates for distributionRead the Press Release
CHARLESTON, W.Va. – A London, West Virginia woman who received a package of oxycodone from New York through the U.S. mail, was sentenced today to five years of probation, with the first six months to be served in home confinement, announced U.S. Attorney Booth Goodwin. Whitney Reanne Kent, 26, previously pleaded guilty in February of 2015, to possession with intent to distribute oxycodone.
On December 5, 2012, the United States Postal Inspection Service and a member of the Metro Drug Enforcement Network Taskforce (MDENT) were conducting interdiction efforts at the Charleston Post Office to curb drug trafficking through the U.S. Mail. They intercepted a package addressed to Kent. Upon executing a federal search warrant on the package, investigators seized approximately 89 30mg oxycodone pills. On December 7, 2012, when Kent arrived at the Post Office to retrieve the package, investigators confronted her about the pills. She admitted she knew the pills were in the package and that she was there to pick them up for someone else. United States District Judge Thomas E. Johnston handed down the sentence.
The Metro Drug Enforcement Network Team and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Joshua C. Hanks handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Justice Department Announces Missoula Police Department Has Fully Implemented Agreement to Improve Response to Reports of Sexual AssaultRead the Press Release
The Department of Justice announced today that the Missoula, Montana, Police Department (MPD) has fully implemented the requirements of its agreement with the department to improve the MPD’s response to reports of sexual assault. The agreement, which was entered into in May 2013, resolved part of the department’s comprehensive investigation of the response by the Missoula criminal justice system and the University of Montana to sexual assault. Thomas R. Tremblay, the independent reviewer who determines whether the terms of the agreement have been met, has determined, and the department has agreed, that the MPD has met all of its obligations under the agreement and achieved the overall purpose of the agreement.
The purpose of the agreement between the department and the MPD was to better protect and vindicate the rights of sexual assault victims by transforming the MPD’s response to allegations of sexual assault. To do this, the agreement required significant changes to the police department’s policies, practices and supervision. These changes promote more reliable sexual assault investigations, and effective, nondiscriminatory law enforcement and community support for victims, the police department and its officers. The MPD’s implementation of the agreement has resulted in a host of historic advances in the Missoula response to sexual assault, including the following:
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creation of a new Special Victims’ Unit in the MPD focusing on sex crimes cases, and an interview room specifically designed for interviews with victims of sexual assault;
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extensive specialized training for first responders and detectives in the response to sexual assault;
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development and institution of an external review panel – one of the first of its kind – to review closed sexual assault cases for investigative comprehensiveness and indications of gender bias;
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completion of an audit of the community-wide response to sexual assault – one of the first community audits to focus exclusively on sexual assault – including all of the key law enforcement agencies, advocacy organizations and medical service providers serving victims of sexual assault in Missoula County;
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community advocates reporting better communication and coordination with local law enforcement than ever before; and
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victim surveys indicating significant satisfaction with police officers’ and detectives’ treatment of victims reporting sexual assault to law enforcement.
“Our agreement with the Missoula Police Department following our investigation into the handling of sexual assault complaints made by women in Missoula has been a catalyst for powerful changes in both the law enforcement and the community’s coordinated response to sexual assault,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We are grateful for the efforts of MPD and the entire Missoula community because, as a result of these reforms, the women of Missoula are safer, more trusting of the criminal justice system, and subject to more fair and respectful treatment by local law enforcement. Missoula’s police department had the courage and leadership to acknowledge that it had a problem and to address it, and as a result, is poised to become a model for communities struggling with these issues around the country.”
“We commend the Missoula Police Department and the city of Missoula for the leadership and commitment that they have demonstrated to transform the way in which their city police department responds to reports of sexual assault,” said U.S. Attorney Michael Cotter of the District of Montana. “We also recognize and appreciate the hard work that the detectives and officers of the Missoula Police Department have put into carrying out these reforms. In so doing, they have carried out the highest ideals of public service, making the safety and civil rights of their community a top priority, and their efforts should be an inspiration to us all.”
The full implementation of the department’s agreement with the MPD marks the first completion of the series of agreements stemming from the department’s multi-pronged investigation, launched in May 2012, regarding the handling of sexual assault complaints made by women in Missoula. The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the University of Montana Police Department (UMPD), the MPD, and the Missoula County Attorney’s Office. The department entered into agreements with the university, the UMPD and the MPD in May 2013, to resolve findings related to those parties and address deficiencies in their response to sexual assaults. The department, together with the Montana Attorney General’s Office, entered into agreements regarding the Missoula County Attorney’s Office the following year, in June 2014. The implementation of those agreements has already improved these parties’ response to sexual assaults.
These agreements, as well as a description of the department’s work regarding sexual assault in Missoula, are available at: http://www.justice.gov/crt/about/spl/. The independent reviewer’s final compliance report, describing in detail his determination that the MPD has successfully implemented the department’s agreement, is forthcoming, and will be available on the department’s website upon its release.
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Jacksonville Man Sentenced to More Than 4 Years in Federal Prison for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Arnold Bernard Conrad, Jr. (52, Jacksonville) to four years and four months in federal prison for possessing child pornography. The Court also ordered him to serve a five-year term of supervision following his release, register as sex offender, forfeit his computer media, and pay $9,000 in restitution to three victims. Conrad pleaded guilty on November 12, 2014.
According to court documents, a detective with the Jacksonville Sheriff’s Office began an undercover investigation to identify individuals that were trading images and videos depicting child pornography over the Internet. The detective determined that a particular computer in Jacksonville was hosting and trading images of child pornography using a peer-to-peer file sharing program. The subscriber information for the computer was traced back to Conrad’s Jacksonville residence, where a search warrant was subsequently executed, and his computer media was seized. During an interview with agents, Conrad admitted to having used two different programs to download child pornography from the Internet, saving it to external hard drives, and that he had been doing so for almost two years. A forensic analysis of Conrad’s computer media revealed that it contained 504 images and 145 videos depicting child pornography, including at least one video depicting a nude toddler being sexually assaulted.
“Working with strong law enforcement partners, like the Jacksonville Sheriff’s Office, allows our HSI special agents to remove criminals like this from our communities,” said Susan L. McCormick, special agent in charge of HSI Tampa.
This case was investigated by the Jacksonville Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Glen Allen Woman Sentenced to 4 ½ Years in Prison for Making False Statements in an International Terrorism InvestigationRead the Press Release
RICHMOND, Va. – Heather Elizabeth Coffman, 29, of Glen Allen, Virginia, was sentenced today to 54 months in prison, followed by three years of supervised release for a charge related to her attempted support of the international terrorist group ISIS.
Coffman pleaded guilty to a one-count criminal information on Jan. 30, 2015. According to the statement of facts filed with the plea agreement, Coffman admitted that beginning prior to June 2014 and continuing up through November 2014, she used several Facebook accounts under different names showing her support for the Islamic State of Iraq and the Levant’s (ISIL, referred to as ISIS by the defendant and within the case) cause. These accounts also revealed the defendant’s romantic involvement with an individual referred to as “N.A.,” a foreign national living outside of the United States. In the months leading up to September 2014, Coffman and N.A. communicated almost daily via Facebook and other communications platforms. During their conversations, Coffman and N.A. explored options for N.A. to travel to Syria in order to fight for ISIS and die a “Shaheed,” referring to a martyr who dies for “jihad.”
Coffman cultivated online relationships with individuals she believed were ISIS facilitators operating in Syria. She put N.A. in contact with a facilitator to assist with his travel and eventual training with ISIS (with the Coffman’s financial assistance for travel) before he was to cross the border into Syria to fight with ISIS. This plan was moving forward when the couple’s relationship deteriorated in early September 2014, and N.A. backed out of the plans. Coffman later communicated with others about her disappointment and expressed how she wished that the plan had succeeded.
According to the plea documents, Coffman admitted that she lied during the ongoing investigation on Nov. 13, 2014, when she told FBI agents that she did not know whether N.A. had talked to anybody else who supported ISIS, and that she did not know anybody N.A. had talked to when, as Coffman well knew, she had previously put N.A. in contact with ISIS fighters and N.A., in turn, had communicated with them to facilitate N.A.’s travel to Turkey to join ISIS.
John P. Carlin, Assistant Attorney General for National Security; Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.
This case was investigated by FBI’s Richmond Field Office and the Richmond Joint Terrorism Task Force (JTTF). The JTTF is a collection of state, federal and local law enforcement agencies, dedicated to the mission of proactively keeping communities safe by thwarting national security and terrorism issues before they become a reality. Member agencies of the Richmond JTTF who assisted in this particular investigation include Virginia State Police, Henrico County Police, Chesterfield County Police, Richmond Police, Homeland Security Investigations, United States Secret Service, Bureau of Alcohol Tobacco and Firearms and Explosives, Department of State Diplomatic Security Service, Transportation Security Administration and Defense Criminal Investigative Service.
Assistant U.S. Attorneys Michael Gill and Jessica Aber of the Eastern District of Virginia, and Trial Attorney Annamartine Salick of the National Security Division's Counterterrorism Section are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-016.
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Ghana Native Pleads Guilty to Obtaining U.S. Citizenship by FraudRead the Press Release
KANSAS CITY, KAN. – A native of Ghana who obtained naturalized U.S. citizenship in 2004 has pleaded guilty to obtaining citizenship by fraud and faces possible deportation, U.S. Attorney Barry Grissom said Monday.
Ernest Opoku Acheampong, 44, Shawnee, Kan., entered a guilty plea Monday before U.S. District Judge Julie A. Robinson and is scheduled to be sentenced July 29. Because he pleaded guilty to making a false statement on his application for U.S. citizenship and ultimately became a naturalized U.S. citizen, federal law requires that his citizenship be revoked, Grissom said.
“Not only will his certificate of naturalization be cancelled, he will be placed in removal proceedings,” Grissom said. “And, he faces possible incarceration in the criminal case. People who make false statements in their attempt to become naturalized U.S. citizens undermine the process and dishonor those seeking citizenship honestly.”
During court proceedings Monday, Acheampong admitted that he first entered the United States in 1994, claiming to be a “Michael Smith” from Libya. He was denied entry, but requested asylum and sought to remain in the U.S. His claims of fear of persecution were found to be unfounded and he was ordered deported, but Acheampong never surrendered himself for deportation.
In 1996, Acheampong was able to obtain a valid entry visa under his true name and country of citizenship, Ghana, and ultimately applied for naturalized U.S. citizenship in 2004, but failed to disclose his previous entry into the United States and the prior order of deportation on his naturalization application. He was granted naturalized U.S. citizenship in September 2004, Grissom said.
However, in August 2014, when Acheampong applied for a Kansas driver’s license, officials of the Kansas Department of Revenue determined through facial recognition software employed whenever people apply for state ID cards or driver’s licenses that the defendant had previously obtained a Kansas driver’s license under the name “Michael Smith.”
Their agents then notified the Department of Homeland Security’s Citizenship and Immigration Services (CIS) and Homeland Security Investigations (HSI), who completed the investigation and documented what Acheampong had done. Acheampong was indicted in the case in October.
Grissom praised the agencies for their work on their case and Assistant U.S. Attorney Brent Anderson for his prosecution.
Ft. Walton Man Charged with Producing Child PornographyRead the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment charging Samuel J. Johnson, 42, of Ft. Walton Beach, Florida, with production, receipt, and possession of child pornography, and transfer of obscene matter to a minor. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, between April 2013 and April 2015, Johnson knowingly used a minor to engage in sexually explicit conduct for the purpose of producing visual depictions, and that he committed this offense while he was required to register as a sex offender. The indictment also alleges that Johnson received images and videos containing child pornography, that he possessed material containing images and videos of child pornography involving a minor under age 12, and that he transferred obscene matter to an individual less than age 16.
Johnson was arraigned in federal court today before Chief United States Magistrate Judge Elizabeth M. Timothy at the United States Courthouse, in Pensacola, Florida. The trial is scheduled for July 6, 2015.
The case is being investigated by the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Pensacola Police Department, and the other agencies that are part of the North Florida Internet Crimes Against Children Task Force, whose joint investigation led to the charges in this case. It is being prosecuted by Assistant United States Attorney Jeffrey Tharp.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fort Lauderdale Man Sentenced for Telemarketing FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Lev Derbaremdiker, 29, of Fort Lauderdale, FL, was sentenced in the United States District Court in East St. Louis, Illinois on one count of conspiracy to commit mail and wire fraud in connection with telemarketing. Derbaremdiker was sentenced to a year and a day in prison, to be followed by two years of supervised release. Derbaremdiker was also ordered to pay a $100 special assessment.
The investigation determined that Derbaremdiker was a closer at C&G Marketing Associates, LLC, also known as Premier Timeshare Solutions (PTS). Working out of office buildings in Florida, PTS, targeted owners of timeshares throughout the United States and Canada. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Assistant United States Attorney’s Scott Verseman and Michael Hallock.
Former employee at Parma Public Housing Agency charged with stealing $232,000Read the Press Release
A former employee at Parma Public Housing Agency was charged with stealing more than $232,000 from the agency, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Amy Belz, 34, of Brunswick, Ohio, was charged with one count of theft of government funds via criminal information.
“This defendant is accused of stealing hundreds of thousands of dollars that was meant to be used to help people obtain housing,” Dettelbach said. “Public employees who steal from taxpayers will be held accountable for their actions.”
The information charges that between 2008 and 2014, while Belz was program manager of the Parma Public Housing Agency, she stole $232,407.48 by writing 138 checks to herself, money which was provided to Parma from the U.S. Department of Housing and Urban Development.
In order to conceal her theft of funds from Parma Public Housing Agency and HUD, Belz made the checks out to herself, but typed vendor names on the carbon copies in the Parma Public Housing Agency check registers. Belz then created false invoices from these legitimate Parma Public Housing Agency vendors, attached them to the false carbon copies, and placed them in the Parma Public Housing Agency files to make it appear that the vendor was paid for work, knowing that such was never actually ordered or completed, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Adam Hollingsworth after an investigation by the U.S. Department of Housing and Urban Development Office of the Inspector General and the Parma Police Department.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former TSA Security Officer Pleads Guilty to Faking Cancer to Receive Paid Government LeaveRead the Press Release
ATLANTA – Marc Bess, a former transportation security officer with the Transportation Security Administration, has pleaded guilty to theft of government funds after he faked an abdominal cancer diagnosis and forged doctor’s notes in order to receive donated leave hours from his TSA coworkers.
“Bess deceived his coworkers, who donated their own paid vacation time out of concern for their colleague, so he could take time off from work at the public’s expense,” said Acting U.S. Attorney John Horn. “He made the mistake of faking a doctor’s note from a physician who had died months earlier. His repeated lies over five years betrayed not only his coworkers but also the passengers he was charged with protecting.”
“Mr. Bess' thoughtless actions to defraud his fellow employees was indeed despicable; he betrayed the general trust of many compassionate TSA employees, who were willing to donate their hard-earned leave in support of a fellow employee,” said James E. Ward, Special Agent in Charge, DHS - Office of Inspector General. “We are pleased with Mr. Bess’ guilty plea, and the acknowledgment that he will be held responsible for his treachery.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: The TSA offers a Voluntary Leave Transfer Program to its employees, which permits them to donate paid leave hours to other employees in cases of emergency. In order to be eligible to receive donated leave hours through this program, employees must submit a written application describing the nature and severity of their medical emergency with supporting documentation from the treating physician.
Bess was a TSA employee at Hartsfield-Jackson Atlanta International Airport. Between September 2009 and January 2014, Bess submitted three written applications to the TSA falsely claiming that he was receiving treatment for lymphoma cancer in the abdominal area. In support of these applications, Bess forged the signature of a physician in letters he drafted that described phony radiation therapy and surgical treatments for the fake cancer diagnosis. Based on these false applications, Bess became eligible to receive donated leave hours from coworkers. In reality, Bess has never been diagnosed with or treated for cancer.
Bess also submitted periodic forged physician’s notes to the TSA from 2009 through December 2014 describing fake cancer treatments in support of his requests for additional paid leave hours. Two of the forged letters that were purportedly written by the physician were dated several months after the physician died in July 2014.
In total, Bess received approximately 2240 hours of paid leave hours donated by other federal employees over a five-year span based on his false claim of cancer. Based on these donated hours, the TSA paid Bess approximately $60,000 in salary and benefits while he took time off from work. Bess resigned from the TSA in January 2015 after his fraud was exposed.
Bess, 42, of Atlanta, Georgia, pleaded guilty before U.S. District Court Judge Mark H. Cohen. Sentencing for Bess is scheduled for July 24, 2015, at 10:00 a.m.
This case is being investigated by the Department of Homeland Security, Office of the Inspector General.
Assistant United States Attorney Nathan P. Kitchens is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former President Sentenced for Embezzling from Union LocalRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees was sentenced in federal court today for a wire fraud scheme in which he embezzled more than $138,000 from the union local.
Jesse E. Morgan, 39, of Kansas City, Mo., was sentenced by U.S. Chief District Judge Greg Kays to 21 months in federal prison without parole. The court also ordered Morgan to pay $138,011 in restitution to the union.
Morgan, who pleaded guilty to wire fraud on Oct. 7, 2014, was president of the American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from 2008 through Oct. 20, 2012.
Morgan admitted that he engaged in a wire fraud scheme during most of his tenure as president, from November 2008 through Oct. 22, 2012, to steal from AFSCME Local 1707. Morgan issued checks from Local 1707 to third parties for his benefit or to himself; made electronic transfers from Local 1707 bank accounts to pay personal expenses; made unauthorized ATM withdrawals from Local 1707 bank accounts; and made unauthorized counter withdrawals from Local 1707 checking and savings accounts.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor – Office of Labor-Management Standards.
Former Omaha Man Convicted of Tax FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Adam Mwanza, age 43, of Miami, Florida, was convicted Wednesday, May 6, 2015, after a jury found him guilty of 13 counts of tax fraud for his involvement in assisting in the preparation of false tax returns. The Honorable Joseph F. Bataillon presided over the trial that was held last week in United States District Court. Sentencing has been set for August 7, 2015. Mr. Mwanza faces 3 years of imprisonment and a $250,000.00 fine on each count.
Mr. Mwanza was a tax preparer. In tax years 2007 and 2008 he was servicing a primarily immigrant client base. He would electronically file fraudulent returns falsely claiming rental deductions for what people were paying for their monthly rent expense and would fabricate Adjusted Gross Income amounts. The effect of the fraud was to inflate the amount of the refunds the taxpayer received.
The case was investigated by Internal Revenue Service Criminal Investigations.
Former Kittery Woman Pleads Guilty to Bankruptcy Fraud ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Rana J. Clarizio, 46, of Oak Brook, Illinois, and formerly of Kittery, Maine, pleaded guilty today in U.S. District Court to bankruptcy fraud.
According to court records, on March 21, 2014 the defendant filed for bankruptcy in Maine. On April 4, 2014, she filed Schedules of Assets and Liabilities (“schedules”) and a Statement of Financial Affairs (“SOFA”) under the penalty of perjury in which she failed to disclose more than $70,000 worth of property of the bankruptcy estate. On May 2, 2014, she testified under oath at a meeting of her creditors that her schedules and SOFA were true and correct. In addition, in anticipation of the bankruptcy filing, she transferred and concealed over $125,000 worth of property of the estate that she failed to disclose in her April schedules and SOFA.
Clarizio faces up to five years in prison and a $250,000 fine on each charge. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation.Former Concord Resident Charged with Religious Hate Crime and Arson ChargesRead the Press Release
OAKLAND – Hugo John Scherzberg made his initial appearance and was arraigned in federal court today on religious hate crime and arson charges relating to the March 20, 2010, fire at a church in Pittsburg, Calif., announced United States Attorney Melinda Haag and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge, Joseph M. Riehl.
Scherzberg, 48, formerly of Concord, Calif., was indicted by a federal grand jury on March 5, 2015, with burning the Church of the Living God (C.W.F.F.) building in Pittsburg because of its religious character, and with arson of a building used in activities affecting interstate commerce.
Scherzberg made his appearance before the Honorable Kandis A. Westmore, U.S. Magistrate Judge, and entered not guilty pleas to the charges. On the government’s motion, Judge Westmore ordered Scherzberg detained pending trial. His next appearance, a status hearing, is scheduled to occur on June 8, 2015, at 2:00 p.m., before the Honorable Haywood S. Gilliam, U.S. District Judge.
The maximum statutory penalties for damaging religious property by the use of fire, in violation of 18 U.S.C. §§ 247(a)(1) and (d)(3), is 20 years imprisonment and a fine of $250,000. The maximum statutory penalty for arson of a building used in interstate and foreign commerce, in violation of 18 U.S.C. § 844(i), is also 20 years imprisonment, with a mandatory minimum of 5 years, and a fine of $250,000. Restitution and an additional period of supervised release may also be ordered, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment contains only allegations and, as with all defendants, Scherzberg must be presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Andrew S. Huang is prosecuting the case with the assistance of Vanessa Vargas Quant. The Civil Rights Division, U.S. Department of Justice is also assisting in the prosecution. The prosecution is the result of an investigation by the ATF and the Contra Costa County Fire Investigation Unit, with assistance from the San Francisco Fire Department, San Francisco Police Department, and San Francisco District Attorney’s Office.
Former Champaign Business Owner to Serve 27 Months in Prison for Filing False Income Tax ReturnsRead the Press Release
Urbana, Ill. – A former Champaign, Ill. businessman, Michael Fogerson, has been sentenced to 27 months in prison for filing false income tax returns. On Friday, U.S. District Judge Harold A. Baker further ordered that Fogerson, 52, serve one year of supervised release following his release from prison. Fogerson was ordered to report on July 20, 2015, to the federal Bureau of Prisons to begin serving his sentence. Fogerson was also ordered to pay restitution in the total amount of $465,211 to the IRS, as well as a $200 special assessment.
On March 17, 2015, Fogerson, pleaded guilty to two counts of filing false income tax returns. According to court records, Fogerson was the owner, sole proprietor, and operator of The Smoke Shack in Champaign, Ill., and The Smoker’s Den in Decatur, Ill. During 2009, 2010, and 2011, The Smoke Shack sold tobacco-related products, as well as synthetic marijuana prior to its regulation by state and federal authorities. For tax years 2009 and 2010, Fogerson sold bulk quantities of synthetic marijuana to tobacco product stores similar to The Smoke Shack that operated outside of the Champaign and Decatur area. Fogerson admitted that he failed to report to the IRS the profits generated from these bulk sales.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges were investigated by the Internal Revenue Service Criminal Investigation Division.
Former CIA Officer Sentenced to 42 Months in Prison for Leaking Classified Information and Obstruction of JusticeRead the Press Release
Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was sentenced today to 42 months in prison for disclosing national defense information and obstructing justice. Sterling disclosed classified information about a clandestine operational program concerning Iran’s nuclear weapons program to a New York Times reporter in 2003.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew McCabe of the FBI’s Washington, D.C. Field Office made the announcement.
“For his own vindictive purposes, Jeffrey Sterling carelessly disclosed extremely valuable, highly classified information that he had taken an oath to keep secret,” said U.S. Attorney Boente. “His attempt to leverage national security information for his own malicious reasons brought him to this sentence today. I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
“The sentence handed down by a federal judge is the culmination of a lengthy investigation, a protracted prosecution and a unanimous decision by a federal jury to convict Mr. Sterling for the unauthorized disclosure of national security information,” said Assistant Director in Charge McCabe. “The time and effort dedicated to this case by FBI special agents, intelligence analysts and prosecutors working on this matter exemplify the extent the FBI will undertake in pursuit of justice.”
Sterling was found guilty by a federal jury on Jan. 26, 2015. According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington Field Office, with assistance in the arrest from the FBI’s St. Louis Field Office. This case was prosecuted by Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel James L. Trump and Assistant U.S. Attorney Dennis Fitzpatrick of the Eastern District of Virginia.
Former CIA Officer Sentenced to 3 ½ Years in Prison for Leaking Classified Information and Obstruction of JusticeRead the Press Release
ALEXANDRIA, Va. – Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was sentenced today to 42 months in prison for disclosing national defense information and obstructing justice. Sterling disclosed classified information about a clandestine operational program concerning Iran’s nuclear weapons program to a New York Times reporter in 2003.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
“For his own vindictive purposes, Jeffrey Sterling carelessly disclosed extremely valuable, highly classified information that he had taken an oath to keep secret,” said U.S. Attorney Boente. “His attempt to leverage national security information for his own malicious reasons brought him to this sentence today. I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”
“The sentence handed down by a federal judge is the culmination of a lengthy investigation, a protracted prosecution and a unanimous decision by a federal jury to convict Mr. Sterling for the unauthorized disclosure of national security information,” said Assistant Director in Charge McCabe. “The time and effort dedicated to this case by FBI special agents, intelligence analysts and prosecutors working on this matter exemplify the extent the FBI will undertake in pursuit of justice.”
Sterling was found guilty by a federal jury on Jan. 26, 2015. According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002. From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program. He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin. Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.
In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense. These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information. These procedures permit such concerns to be addressed while still protecting the classified nature of the information. The media was not an authorized party to receive such classified information.
In August 2000, Sterling pursued administrative and civil actions against the CIA. Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006. Sterling’s civil and administrative claims were ultimately dismissed by the court.
Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment. While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail. In January 2006, the reporter published a book that contained classified information about the program and the human asset.
Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book. Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.
This case was investigated by the FBI’s Washington, D.C., Field Office, with assistance in the arrest from the FBI’s St. Louis Field Office. This case was prosecuted by Assistant U.S. Attorneys James L. Trump and Dennis M. Fitzpatrick of the Eastern District of Virginia, and Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section.
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Federal Jury Convicts Topeka Man of Producing Child PornographyRead the Press Release
TOPEKA, KAN. – A federal jury has convicted a Topeka man of producing child pornography, U.S. Attorney Barry Grissom said today.
Jonathan Kearn, 40, Topeka, Kansas, was convicted Friday on one count of producing child pornography, one count of distributing child pornography and one count of possessing child pornography.
During trail, prosecutors presented evidence that the investigation began in April 2013 when Homeland Security Investigations received a report from the Queensland Police Service, Queensland, Australia. An Australian investigator had received emails from Kearn in Kansas containing child pornography Kearn had produced. The child pornography included images of a child under six years old.
Sentencing is set for Aug. 10. He faces a penalty of not less than 15 years in federal prison on the production count, not less than five years on the distribution charge, and a maximum penalty of 10 years on the possession charge. Grissom commended Homeland Security Investigations, the Topeka Police Department, the Queensland Police Service and Assistant U.S. Attorney Christine Kenney for their work on the case.
Federal Jury Convicts Sex Offender for Failure to RegisterRead the Press Release
Ronald W. Paul, 74, of Gainesboro, Tennessee, was found guilty of failing to report his residence as required by the federal Sex Offender Registration and Notification Act, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Following a trial before U.S. District Court Judge William J. Haynes, Jr., the jury found Paul guilty on three separate counts of failing to register under the Sex Offender Registration and Notification Act. The evidence at trial proved that Paul, who had been convicted of rape and was therefore required to register as a sex offender, failed to report his residence and whereabouts to authorities at various times between 2009 and 2011. Specifically, Paul traveled back and forth to the Philippines without reporting his travels to law enforcement and resided at an address in Gainesboro without reporting this address. By doing so, Paul failed to keep his sex offender registration current.
The Sex Offender Registration and Notification Act is designed to protect the public from sex offenders by establishing a comprehensive national system for the registration of those offenders by tracking their interstate movement. Under federal law, it is a felony for a sex offender to fail to register or update his or her registration.
Paul faces up to 10 years in prison and a fine of up to $250,000 for each count.
The case was investigated by the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorneys S. Carran Daughtrey and William F. Abely.
Exeter Man Charged with Distributing Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment was returned on Tuesday, May 5, 2015, by a grand jury in Scranton charging an Exeter man with distribution of crack cocaine.
According to United States Attorney Peter J. Smith, the indictment charges that Sekou Lashley, age 36, of Exeter, Pennsylvania, distributed cocaine base (crack) in Plains Township, Pennsylvania, on March 19, 2015.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Peter Hobart is prosecuting the case.
The maximum penalty under federal law for distributing cocaine is 20 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Embezzler Sentenced to 41 Months in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James Moody has sentenced John Yates (42, Ruskin) to three years and five months in federal prison for mail fraud and access device fraud. As part of his sentence, the Court also entered a money judgment in the amount of $286,279.50, which are the proceeds traceable to his criminal conduct. Yates pleaded guilty on January 29, 2015.
According to court documents, in January 2009, Yates was employed by Federal Marine Terminals (FMT) as the manager of the Port Tampa Bay office. As manager, he would oversee the movement of inbound import shipping containers that had been identified for inspection by U.S. Customs and Border Protection. He would then bill customers for FMT’s services in the form of invoices. Yates was responsible for preparing, mailing, and faxing the invoices. Customers were directed to mail payments FMT’s facility in Port Manatee.
In December 2011, while Yates was on vacation, another FMT employee discovered five invoices that looked like FMT invoices, but directed payments to “THW,” in Tampa. A subsequent investigation revealed that the THW payments were deposited into a bank account controlled by Yates. Eighty-nine companies remitted payments to Yates totaling $270,279.50. He was subsequently fired from his position.
After being fired from FMT, Yates was hired as a dispatcher by JRC Transportation, Inc., a large trucking company. There, Yates entered phantom loads into JRC’s system and diverted the related payments back to him. Yates embezzled approximately $30,000 from JRC.
This case was investigated by the U.S. Postal Inspection Service and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
East St. Louis Man Sentenced to 120 Months in Federal Prison for Drug, Attempted Robbery, and Firearm OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Micky Gibb, 25, of East St. Louis, Illinois, was sentenced on Friday by United States District Court Judge David R. Herndon to 120 months in federal prison for committing four felonies in July 2013: (1) conspiracy to possess with intent to distribute cocaine; (2) attempted interference with commerce (robbery); (3) using or carrying firearms in furtherance of a drug trafficking offense and a crime of violence; and (4) possession of a firearm by a convicted felon.
According to court documents, in July 2013, Gibb agreed with two men to rob a drug stash house containing cocaine. Gibb’s codefendants brought two loaded firearms with them to assist in the robbery. ATF agents, who had been investigating Gibb and his codefendants’ plans to commit the robbery, arrested the three men in St. Louis. Gibb was charged in federal court in East St. Louis, Illinois with four charges and pled guilty to all counts.
Gibb was sentenced to a total of 120 months in federal prison. There is no parole in the federal prison system. In addition to the prison sentence, Gibb must serve a total of five years of supervised release and pay $400 in court fees.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant United States Attorney Monica A. Stump was assigned the prosecution.
Eagle Butte Man Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating and Wounding was sentenced on May 8, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Loren LaPlante, Jr., age 24, was sentenced to 18 months of probation, $100.96 in restitution, and $25 to the Federal Crime Victims Fund.
LaPlante was indicted by a federal grand jury on February 11, 2015. He pled guilty on March 16, 2015.
The conviction stems from an incident on January 9, 2015, when LaPlante, who was intoxicated in a bar in Dupree, got into a verbal confrontation with an adult male victim who was playing darts. Once the victim was done playing darts, he approached LaPlante, who sucker-punched the victim in the face. The Defendant’s assault was made without just cause or excuse, and it struck and wounded the victim, who needed medical attention for the injury to his face.
This case was investigated by the Cheyenne River Sioux Tribal Law Enforcement Agency. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Dublin Resident Sentenced in False Tax Refund SchemeRead the Press Release
OAKLAND – Kenya Brown was sentenced Friday, May 8, 2015, to twelve months in prison and ordered to pay $221,124 in restitution for her involvement in a false tax refund scheme, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
Brown, 31, of Dublin, Calif., pleaded guilty today to conspiracy to file a false claim. According to the plea agreement, from April 2009 through June 2011, Brown conspired to file more than 139 false federal income tax returns with the IRS. As part of the conspiracy, Brown electronically filed false returns from residences in San Leandro and Oakland. The tax returns requested refunds based on fictitious W-2 forms. To carry out the scheme, Brown instructed the IRS to wire the fraudulent refunds onto debit cards. In total, Brown filed documents seeking in excess of $700,000 in false tax refunds.
On January 8, 2015, Brown was charged in a nine count indictment with conspiracy to file false claims, wire fraud, theft of public money, and aggravated identity theft. Brown pleaded guilty to conspiracy to file false claims. At sentencing, Brown was also ordered to pay restitution in the amount of $221,124.Brown is already in custody as a result of a prior conviction. During the execution by the IRS of a search warrant at Brown’s home on July 28, 2011, she was found in possession of nearly two pounds of cocaine and a firearm. Brown was charged with possession with the intent to distribute cocaine and being a felon in possession of a firearm. On December 7, 2011, as the tax investigation continued, Brown was sentenced on the drug and weapons charges, and is serving a 60 month sentence on those charges.
Assistant U.S. Attorney Thomas Newman is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Drug Free Clubs of America honored for innovative commitment to drug preventionRead the Press Release
Drug Free Clubs of America honored for innovative commitment to drug prevention
WHEELING, WEST VIRGINIA – Drug Free Clubs of America was presented today with the 2015 Community Outreach Award from United States Attorney William J. Ihlenfeld, II, in recognition of its commitment to drug prevention.
In 2005, a dedicated group of firefighters in Cincinnati, were determined to find a way to loosen the grip of substance abuse in their community. Their vision was to remove the powerful temptation of peer pressure and make it easy for young people to make informed, healthy decisions. They founded Drug Free Clubs of America and developed a creative program. Students that join drug free clubs are subject to periodic, random drug tests. Schools, restaurants, and businesses provide those students with discounts and other incentives to remain drug free. Perhaps most importantly, Drug Free Clubs members are provided with a tangible membership card that students can show when they are faced with the fierce temptation of peer pressure.
Today, Drug Free Clubs of America is a thriving non-profit organization with chapters throughout Ohio, Kentucky, and West Virginia. In 2010, Wheeling Central Catholic High School opened the first Drug Free Clubs chapter in West Virginia and recently became the second school in the country where students choosing not to participate in Drug Free Clubs are in the minority. This year, over 750 West Virginia teens are members of Drug Free Clubs. Wheeling Park High School has the largest chapter in West Virginia with over 230 student members.
Drug Free Clubs has developed a variety of creative partnerships in West Virginia. In 2012, West Liberty University became the first higher education program to offer a scholarship to any student who was a member of Drug Free Clubs for all four years of high school. Student leaders from Drug Free Clubs chapters in the northern panhandle have partnered with the United States Attorney’s Office to produce an innovative series of drug awareness videos.
The United States Attorney’s Awards ceremony took place at the United States Post Office and Federal Courthouse in Wheeling and included remarks from U.S. District Judge John Preston Bailey and U.S. Attorney Ihlenfeld. A variety of local, state, and federal law enforcement agencies were represented along with community leaders, volunteers, and advocates.
Dorchester Gang Member Sentenced to over Twelve Years in Prison for Sex Trafficking MinorsRead the Press Release
Boston – A Dorchester man was sentenced today in U.S. District Court in Boston for sex trafficking minors.
Miriam Kizzie, a/k/a “Keys” and “Keyshawn,” 21, was sentenced by U.S. District Court Judge William G. Young to 153 months in prison and five years of supervised release. In February 2015, Kizzie pleaded guilty to two counts of sex trafficking of two minor women.
In July 2013, Kizzie met a 14-year-old and a 15-year-old girl, and, shortly thereafter, photographed the girls in suggestive poses. Kizzie created online advertisements for commercial sex using their photographs and posted the ads on the Internet. Over the course of the next week, both girls were repeatedly advertised online for prostitution and continued to see prostitution clients, primarily in Dorchester apartments, but also in the apartments of men who responded to the advertisements.
At today’s sentencing hearing, the mother of each victim addressed the court explaining the impact that the trafficking had on their teenage daughters and their families. One of the victims, now 16-years-old, addressed the court herself and described not only the impact of Kizzie’s actions but also her ongoing struggles as a result of the crime. She said, “He broke me. He lied to me. I’ve spent the past almost two years trying to put myself back together again.”
In addition to the charges against Kizzie, the indictment charged Anthony Pledger, a/k/a “Polo,” and “Jaden,” 26, with sex trafficking two other minors in October 2013 in Massachusetts in Rhode Island. Court documents allege that Pledger and Kizzie were members of the Thetford Avenue Buffalos, a local Boston street gang. In February 2015, Pledger pleaded guilty to two counts of sex trafficking the two minors and is scheduled to be sentenced on May 28, 2015.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today. The case was also investigated by the Rhode Island State Police, Massachusetts State Police, and the Brookline, Providence, Brockton, and Dedham Police Departments. Significant assistance was provided by the Rhode Island Attorney General’s Office and the Plymouth, Middlesex and Suffolk County District Attorney’s Offices. The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.
Members of the public who have questions, concerns, or information regarding this case should call (617) 748-3274, and messages will be promptly returned.
Depew Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Mark Newman, 56, of Depew, NY, pleaded guilty to possession of child pornography, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on September 26, 2012, a search warrant was executed at the defendant's residence. Items seized from Newman’s residence that contained child pornography included a Toshiba laptop computer. A forensic analysis uncovered approximately 300 videos of child pornography stored on the computer. Some of the images depicted prepubescent minors or minors less than 12 years of age, as well as images of violence. In addition, as part of the plea agreement, Newman admitted that he has engaged in a pattern of sexual abuse of a minor.
The plea is the result of an investigation on the part of Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 13, 2015, at 4:00 p.m. before Judge Wolford.
DeLand Man Sentenced to 65 Years for Child ExploitationRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced David Jacob William Guite (31, DeLand) to 65 years in federal prison for producing and distributing child pornography. Guite pleaded guilty on February 20, 2015.
According to court documents, an FBI task force officer, acting in an undercover capacity, posted an advertisement on a website frequented by individuals who have a sexual interest in children and incest. Guite responded to the ad and, during the ensuing conversation, sent the agent sexually explicit images of a young boy.
On October 29, 2014, FBI agents executed a federal search warrant at Guite’s residence. During an interview, he admitted to manufacturing, possessing, and distributing sexually explicit images of minor children. A search and subsequent analyses of Guite’s smart phone and computer revealed hundreds of sexually explicit images and videos of young children.
This case was investigated by the Federal Bureau of Investigation, the DeLand Police Department, and the Volusia County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dasean Nisbett of Bronx, New York Sentenced to Time Served for Possession with Intent to Distribute OxycodoneRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Dasean Nisbett, 24, of Bronx, New York was sentenced today to time served and three years of supervised release based on his arrest for possession with intent to distribute Oxycodone pills. U.S. District Judge William K. Sessions III also ordered that Nisbett submit to a period of home detention and location monitoring, as well as complete 100 hours of community service.
According to court records, on March 3, 2013, Nisbett arrived in Burlington after midnight on the Megabus from New York City. After a police canine alerted on the area of the bus where Nisbett had been sitting, University of Vermont Police approached Nisbett as he walked down Main Street. Nisbett denied having anything illegal in his possession and permitted law enforcement to search his person. A subsequent search revealed a bag of 1,000 oxycodone pills concealed in Nisbett’s underwear. Nisbett was subsequently indicted federally for possession with intent to distribute oxycodone.
This matter was investigated by the U.S. Drug Enforcement Administration and the University of Vermont Police Department. The government was represented by Assistant U.S. Attorney Kevin Doyle. Dasean Nisbett was represented by Michael L. Desautels, the Federal Defender for the District of Vermont.
Contractor charged with bribery of postal managerRead the Press Release
A contractor for the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was charged with bribing a public official, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service’s Office of Inspector General Eastern Area Field Office.
Andrew Maloney, Jr., 37, of Bedford Heights, was charged by criminal information with a single count of bribery of a public official.
The information charges that Maloney received a contract for vehicle maintenance and repair with the Postal Service Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. The information alleges that the Facility’s manager, Kevin R. Hood, used his position to extort cash bribes and vehicle repair services from Maloney in exchange for work under the contract. According to the information, Maloney made cash payments and provided free services to Hood between May 2011 and December 2013 to secure and maintain the contract.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Miranda E. Dugi following an investigation by special agents of the U.S. Postal Service’s Office of Inspector General.
Chamberlain Man Sentenced for LarcenyRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Chamberlain, South Dakota, man convicted of Larceny was sentenced on May 11, 2015, by U.S. District Judge Roberto A. Lange.
James Short Bear, age 19, was sentenced to 8 months in custody, $500 in restitution, and a special assessment of $100 to the Federal Crime Victims Fund.
Short Bear was indicted by a federal grand jury on February 11, 2015. He pled guilty on March 26, 2015.
The conviction stems from an incident which occurred between February 11, 2014, and February 13, 2014, when Short Bear entered the Lower Brule Sioux Tribal administration building and stole a ceremonial pipe known as a Chanupa. The Chanupa had been purchased by the Tribe in 2006 for $5,500. Short Bear was captured on video entering the building and leaving a short time later with the Chanupa. After a few months had passed, Short Bear pawned the pipe for $500, claiming he had made it himself.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Short Bear was immediately turned over to the custody of the U.S. Marshals Service.
Cabell County man pleads guilty for failure to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. - A 55-year old Cabell County man faces up to 10 years in prison after pleading guilty today to failing to register as a sex offender, U.S. Attorney Booth Goodwin announced. Daniel Walter Varnes, of Huntington, West Virginia, entered a guilty plea before Chief District Court Judge Robert C. Chambers.
Varnes was convicted in 2000 in Colorado of Sexual Assault of a Child Under Age 15 by a Person in a Position of Trust. As a result of that conviction, Varnes was required to register as a sex offender. In August of 2014, Varnes moved to Huntington, West Virginia, and did not register as a sex offender despite knowing it was required by law. He continued to reside and work in Huntington without registering until his arrest on February 6, 2015.
The court scheduled sentencing for Varnes for August 10, 2015, in Huntington, West Virginia.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Brothers Sentenced to Federal Prison for Delivery of Heroin Resulting in DeathRead the Press Release
PORTLAND, Ore. - Gerardo Chalke Lopez (a.k.a. “La Loca”), 41, and Sergio Quezada-Lopez (a.k.a. “Cheche” , 36, of Nayarit, Mexico, appeared for sentencing on April 28 and April 29, 2015, before U.S. District Judge Michael Simon. The brothers were sentenced to 18 and 15 years prison, followed by five years of supervised release, and ordered to pay restitution for their roles in a conspiracy to distribute heroin, that resulted in death of a young woman. The brothers were also sentenced each to 27 months prison on illegal re-entry charges to run concurrent with the drug sentences.
The investigation began on April 16, 2012 when police officers responded to the Keizer, Oregon residence of 21 year old Laurin Putnam, who was found deceased. The initial investigation indicated that her death was likely caused by a heroin overdose and later confirmed by the Oregon State Medical Examiner’s Office. Soon after her death, investigators learned the identity of the last person in the chain that was responsible for distributing the heroin to Putnam that caused her death. From there, investigators were able to identify several conspirators and move six levels up the chain of distribution to brothers Gerardo Chalke Lopez and Sergio Quezada-Lopez. During the investigation, agents learned that the brothers were higher level members of a large scale conspiracy involving the distribution of significant quantities of heroin in Oregon, Washington, Nevada, and Colorado.
The investigation of the case was led by the Drug Enforcement Administration (DEA) through its Salem DEA Drug Task Force, and the Keizer Police Department with assistance from the Salem Police Department; the Marion County Sheriff's Office; the Oregon State Police; the Washington County Interagency Narcotics Team (WIN); the Portland Police Bureau; the Oregon State Medical Examiner; the Clark-Skamania Drug Task Force; the Oregon Department of Justice; and, the Portland based Highway Interdiction Team.
The case was prosecuted by Assistant U.S. Attorneys Kemp Strickland and Kathleen Bickers.
Belleville Woman Sentenced for Making False Claims in Operating Tax Preparation BusinessRead the Press Release
Dorresa Braggs, 46, of Belleville, Illinois, was sentenced to serve a total of 70 months in federal prison, followed by three years supervised release, as a result of her convictions for ten counts of Making False Claims Against the United States and one count of Aggravated Identity Theft, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
In Braggs’ case, potential fraud was detected by the Scheme Development Center of the I.R.S. The investigation determined that from 2010 through 2012, Braggs filed 152 fraudulent tax returns for the tax year 2010 and 49 fraudulent tax returns for the tax year 2011, for a total of 201 fraudulent tax returns. The 201 fraudulent tax returns submitted to the IRS created an attempted total tax loss of $1,395,370. The IRS declined or denied a significant amount of the fraudulent tax returns submitted by Braggs and the amount paid by the IRS was determined to be $579,705, which was ordered to be repaid as restitution.
The returns included fraudulent or falsified W-2 (income/withholdings) Schedule C (business expenses/losses), and Form 8863 (education credits) and falsified dependents. Braggs submitted the claims via the internet using H&R Block and Turbotax software, and refunds were issued in check and direct deposit form. The direct deposit refunds were typically issued to prepaid debit cards, which the defendant purchased and used to receive and disperse the fraudulent tax refunds. The addresses used on the tax returns were typically not the right address for the taxpayer but an address that she controlled through a friend or family member. The refunds, if directed to be loaded on prepaid cards were often a different address than the tax return or the real address of the taxpayer. Braggs’ tax preparation fee ranged from $500 to $1,000, and her fees were based on the amount of refund the client received. At sentencing it was disclosed that Braggs even filed a tax return for her oldest son, who was in jail for a murder. At the time he was in the Illinois Department of Corrections, Braggs filed a federal tax return on his behalf claiming he was working at a St. Louis hospital and had a side business as a mechanic. Braggs spent a large portion of the money received from the fraudulent tax returns gambling at St. Louis area casinos.
It was also revealed that at the time she was in the business of preparing fraudulent returns, Braggs was also receiving public aid. Braggs was collecting food stamps, receiving
housing assistance from St. Clair County, and was a representative payee for Social Security benefits for her son.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Baltimore Drug Dealer Exiled to 14 Years in Prison for Robbing A Pharmaceutical Truck and Conspiring to Distribute CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles Jr. sentenced Donte Walter Robinson, age 36, of Baltimore, today to 14 years in prison followed by five years of supervised release for conspiring to distribute five or more kilograms of cocaine, and robbery. Judge Quarles also ordered Robinson to pay restitution of $75,186.
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; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Acting Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on December 13, 2010, Robinson and others robbed a pharmaceutical delivery truck. Robinson obtained a U-Haul as the get-away vehicle. Three co-conspirators waited for the pharmaceutical delivery truck to arrive at a pharmacy on West Pratt Street in Baltimore. When the driver got out of the truck and opened the rear door, two co-conspirators jumped into the truck and pointed a loaded gun at the truck driver. They tied the driver’s hands behind his back and continued to hold a gun on him. One of the co-conspirators stayed in the back with the driver while the other drove the truck, with Robinson driving the U-Haul behind them. They drove to the 2000 block of Annapolis Road in Baltimore where they transferred the pharmaceuticals, worth a total of $75,186, to the U-Haul.
Additionally, on six occasions from January to May, 2011, Robinson flew with other co-conspirators from Baltimore to McAllen, Texas to transport one to two kilograms of cocaine, per trip, back to Maryland on behalf of a drug dealer. Robinson knew that the cocaine was to be distributed in Maryland.
United States Attorney Rod J. Rosenstein commended the FBI, DEA, HSI Baltimore, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Bonnie S. Greenberg and Christopher Romano, who prosecuted the case.
8 May 2015
Wilkes-Barre Man Sentenced to 80 Months’ Imprisonment for Distribution of CocaineRead the Press Release
WILKES-BARRE- The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge A. Richard Caputo sentenced Shawn Morse, age 43, of Wilkes-Barre, yesterday to 80 months’ imprisonment for his involvement in the distribution of cocaine between 2010 and April 2013.
According to United States Attorney Peter Smith, Morse was involved in the distribution of cocaine in the Wilkes-Barre area. On April 3, 2013, FBI Agents arrested Morse at his Wilkes-Barre home. On November 17, 2014, Morse appeared in federal court and pleaded guilty to a criminal information which charged him with cocaine distribution.
In addition to the 80-month term of imprisonment, Judge Caputo ordered that Morse be placed under the supervision of the United States Probation Office for a period of three years following the service of his prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Luzerne County District Attorney’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
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Violent Bloods Gang Member Sentenced to 13 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Abdur Rahman Roland, 26, of Alexandria, was sentenced today to 156 months in prison, followed by three years of supervised release for his role in multiple armed robberies, including an armed home invasion robbery where innocent bystanders were assaulted and restrained.
Roland pleaded guilty to four felonies, including Hobbs Act robberies and firearms offenses, on Feb. 19, 2015.
According to court documents, Roland, along with other coconspirators, robbed a marijuana dealer in Prince William County. During the robbery the assailants held the dealer and a passenger at gun point and proceeded to steal the marijuana, the dealer’s wallet, his keys, and his vehicle. Following this armed carjacking, Roland and his coconspirators, using the carjacking victim’s identification and keys, engaged in an armed home invasion robbery. This robbery, which took place just hours after the carjacking, involved the physical assault and restraint of innocent bystanders who were in the home. In addition to these two robberies, Roland, who was previously convicted of a felony, illegally possessed a firearm during a confrontation in Prince William County. During this particular incident, Roland and his coconspirators threw bricks through the windows of the occupied dwelling and fired shots into the residence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Prince William County Police Department as well as the Prince William and Spotsylvania Commonwealth Attorneys’ Offices. Assistant U.S. Attorney Zachary Terwilliger and Special Assistant U.S. Attorney Catherine Ahn are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-53.
Vadian Bank AG Reaches Resolution Under Department of Justice Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Vadian Bank AG (Vadian), located in St. Gallen, Switzerland, reached a resolution under the Department of Justice’s (DOJ) Swiss Bank Program.
“The department continues to work with Swiss banks to reach final resolutions in accordance with the terms of the program, and is focused on its goal of completing this process expeditiously,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division. “Simultaneously, the department has opened investigations of culpable individuals and entities based on information obtained from the Swiss banks in the program, and will pursue and prosecute those engaged or assisting others in evading U.S. tax obligations.”
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
- Make a complete disclosure of their cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreement signed today, Vadian agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a $4.253 million penalty in return for the department’s agreement not to prosecute Vadian for tax-related criminal offenses.
Vadian has one office and 26 employees. Prior to 2008, Vadian’s business predominantly consisted of savings accounts, residential mortgage lending and small business loans. In 2007, Vadian hired a marketing firm to assist with its planned growth into private banking, and focused its efforts on attracting external asset managers. In 2008, after it became publicly known that UBS was a target of a criminal investigation, Vadian accepted accounts from U.S. persons who were forced out of other Swiss banks. At this time, Vadian’s management was aware that the U.S. authorities were pursuing Swiss banks that facilitated tax evasion for U.S. accountholders in Switzerland, but was not deterred because Vadian had no U.S. presence. As a result of its efforts, after August 2008, Vadian attracted cross-border private banking business and increased its U.S. related accounts from two to more than 70, with $76 million in assets under management.
Through its managers, employees and/or other individuals, Vadian knew or believed that many of its U.S. accountholders were not complying with their U.S. tax obligations, and Vadian would and did assist those clients to conceal assets and income from the IRS. Vadian’s services included: “hold mail” services; numbered accounts, where the client was known to most bank employees only by a number or code name; opening and maintaining accounts for U.S. taxpayers through non-U.S. entities such as corporations, trusts or foundations; and accepting instructions from U.S.-based accountholders to prevent investments from being made in U.S.-based securities that would require disclosure to U.S. tax authorities.
In resolving its criminal liabilities under the program, Vadian provided extensive cooperation and encouraged U.S. accountholders to come into compliance.
While Vadian’s U.S. accountholders who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS’s offshore voluntary disclosure programs, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS offshore voluntary disclosure program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of Vadian’s non-prosecution agreement, its noncompliant U.S. accountholders must now pay that 50 percent penalty to the IRS if they wish to enter the IRS’ program.
“Today’s action is another warning for those who are still considering hiding money offshore to evade U.S. tax laws,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “The IRS and DOJ continue to aggressively work together to put an end to this abuse. When individuals and institutions allow this to happen, they are not only cheating the U.S. government, they are cheating the honest taxpaying citizens who are obeying the law and doing the right thing.”
Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and IRS’s Large Business and International Division (LB & I) for their substantial assistance, as well as Trial Attorney Michael Wilcove of the Tax Division, who served as lead counsel on this matter, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Settles False Claims Act Allegations Against Multiple Jacksonville Hospitals and an Ambulance Company for $7.5 MillionRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces that the United States has settled allegations that nine hospitals in Jacksonville had a practice of routinely ordering basic life support ambulances when this type of transport was not medically necessary. The United States has also settled allegations with an ambulance company for its role in submitting millions of dollars of false claims to federal healthcare programs. The allegations resolved included liability under the False Claims Act (FCA).
After a multiple-year investigation, the United States announces settlements with the following defendants: Baptist Health, who owns and operates four hospitals in Jacksonville (settlement of $2.89 million); Memorial Hospital, Specialty Hospital, Lake City Medical Center, and Orange Park Medical Center (collective settlement of $2.37 million); UF Health Jacksonville (settlement of $1 million); and Century Ambulance Service (settlement of $1.25 million). In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until April 2014, the hospitals provided Certificates of Medical Necessity that attested to the need for basic life support, non-emergency ambulance transports even when these transports were not medically necessary. With respect to Century Ambulance, the parties resolved allegations, for the same time period, that Century Ambulance knowingly up-coded claims from Basic to Advanced life support, unnecessarily transported patients, and unnecessarily transported patients to their homes in an “emergent” fashion.
“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Bentley. “Whether the fraud is intentional or the product of deliberate ignorance, we will pursue these cases and recover taxpayer money.”
“Hospital staff that certify the medical need for services when they are in fact not medically necessary fail in their role as gatekeepers of valuable taxpayer-funded health care programs,” said Chief Counsel to the Inspector General Gregory E. Demske of the U.S. Department of Health and Human Services Office of Inspector General.
Today’s settlement involved false claims submitted to Medicare, TRICARE, Medicaid, and the Federal Employees Health Benefits Program managed by the Office of Personnel Management. This case was initiated by the filing of a qui tam lawsuit filed by Shawn Pelletier, a former employee of Century Ambulance. Mr. Pelletier will collect more than $1.2 million in proceeds from the settlements.
“Ambulance companies must ensure that services billed to federal healthcare programs are medically necessary and reasonable,” said Chief Counsel Demske. “Billing Medicare and Medicaid for transports that amount to taxpayer-funded taxi services will not be tolerated.”
The United States was unable to reach settlement with one defendant – Liberty Ambulance. The United States intends to pursue claims against that defendant and plans to file a civil complaint in the near future. The United States alleges that Liberty knowingly submitted medically unnecessary claims for reimbursement in violation of the federal healthcare program requirements.
"Our office is committed to working with other law enforcement organizations to ensure that both federal employees and taxpayers are protected from unscrupulous organizations that seek to reap profits by defrauding government programs such as the Federal Employees Health Benefits Program," stated Patrick E. McFarland, Inspector General for the U.S. Office of Personnel Management. "We will continue to work to hold such entities accountable for their wrongdoing."
"The FBI is extremely grateful to have been part of this investigative team,” said FBI Special Agent in Charge Michelle S. Klimt. “This is a perfect example of when all agencies work together how our collaborative efforts lead to success.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Departments of Justice and Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19 billion through False Claims Act cases, with more than $13.4 billion of that amount recovered in cases involving fraud against federal health care programs.
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees."
This case was investigated by Federal Bureau of Investigation, the Office of Personnel Management, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Counsel to the Inspector General, the U.S. Department of Health and Human Services Office of Inspector General, Office of Audit Services, the Florida Medicaid Fraud Control Unit, the Defense Health Agency Program Integrity Office, and Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
United States and State of New York Announce Start up of Croton Water Filtration Plant in Compliance with Mandates of Federal Consent DecreeRead the Press Release
Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, Judith A. Enck, Regional Administrator, United States Environmental Protection Agency Region 2, and Eric T. Schneiderman, Attorney General for the State of New York, announced today that the City of New York, in compliance with the Consent Decree and Supplements entered in this action, began distribution of filtered drinking water from its Croton Water Filtration Plant. Through the Croton Water Filtration Plant, the City of New York will have the ability to deliver 290 million gallons of high-quality drinking water each day to residents of the City. If the City had failed to meet the May 17, 2015 deadline for commencement of operation of the Croton Water Filtration Plant, the Consent Decree provided for stipulated penalties in the amount of $65 million.
In 1997, the United States brought suit against New York City to enforce the filtration requirements for its Croton System. Soon thereafter, the State of New York and its Commissioner of Health intervened in the suit as plaintiffs and are parties to the Consent Decree as supplemented. New York City is required to filter its Croton System under the Safe Drinking Water Act and the Surface Water Treatment Rule (SWTR), as well as the New York State Sanitary Code. Under the SWTR, the City was required to implement filtration for its Croton System by June 29, 1993. By stipulation with the State of New York, the City agreed to begin construction of a filtration plant by July 1, 1996. When the City failed to comply with the Stipulation, the United States filed its suit to compel filtration of the Croton System. The United States and the State of New York have vigorously enforced the terms of the Consent Decree, resulting in the City constructing the Croton Filtration Plant and paying $5,064,000 in penalties to date for missed deadlines associated with the delays in the project schedule. Under the Consent Decree, the City was also required to conduct interim measures including monitoring the quality and safety of the Croton System and implementing watershed protection measures.
Filtering drinking water obtained from surface water sources, such as the Croton System, reduces the risk of waterborne disease. These sources are susceptible to potential contamination from disease causing organisms such as Giardia and Cryptosporidium which can easily get into surface water supplies from human activity and animals. Filtration, coupled with disinfection and source water protection, is the best means of ensuring the safety of drinking water from the City’s Croton water supply.
“The United States brought this action in 1997 to ensure that New York City residents are provided with safe drinking water from the Croton Water Supply. Through many years of litigation, enforcement and negotiation, this office has persevered to ensure that construction of the filtration plant was completed and that filtered water will be available to New York City residents from the Croton System. I am pleased that our enforcement efforts have come to fruition and the residents of New York City will have a high quality filtered drinking water supply,” said Acting United States Attorney Currie.
“New Yorkers deserve to have the highest quality water possible," said EPA Regional Administrator Judith A. Enck. "The EPA required New York City to build a filtration plant to protect people from Giardia and Cyrptosporidium, both of which can cause serious illness. The Croton Water Filtration plant will provide millions with a safe source of drinking water, which is essential to protecting public health.”
“Water from the Croton Watershed system has been critical to New Yorkers for more than a century, since the Croton Aqueduct began operating in 1842. Bringing this water filtration plant on-line is a major step forward in ensuring that drinking water from the watershed remains safe and available to New York City residents. It is also a critically-needed investment in New York's public infrastructure. My office will continue to work with our federal, state, and local partners to ensure that the city's compliance with the remaining obligations of the consent decree,” said New York Attorney General Schneiderman.
The action is entitled United States and State of New York v. City of New York and New York City Department of Environmental Protection, Civil Action No. 97-CV-2154 (Gershon, J.) (Gold, M.J.). The action was litigated and the Consent Decree was negotiated by Assistant United States Attorney Deborah B. Zwany, Elizabeth Yu, U. S. Department of Justice, Environment and Natural Resources Division, and Andrew Gershon, New York State Attorney General’s Office, with assistance from EPA Region 2, Phyllis Feinmark, Regional Counsel’s Office, Doughlas McKenna, Chief of the Water Compliance Branch, and Nicole Kraft, Chief of the Ground Water Compliance Section, and the New York State Department of Health’s Bureau of Water Supply Protection.
Union County, New Jersey, Man Federally Charged with Robbing One Bank and Attempting to Rob Another While Using A FirearmRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man who allegedly robbed one bank and attempted to rob another at gunpoint has been charged federally, U.S. Attorney Paul J. Fishman announced.
Marlon Peek, 39, of Plainfield, New Jersey, is charged by complaint with one count of bank robbery, one count of attempted bank robbery, and one count of using and brandishing a firearm during the commission of the attempted bank robbery. Peek was arrested by the Linden Police Department on May 6, 2015. The U.S. Attorney’s Office is adopting the case for federal prosecution. Peek will have his initial court appearance in Newark federal court at a date to be determined.
According to the complaint:
On April 21, 2015, Peek allegedly robbed a PNC Bank in South Plainfield, New Jersey, of cash, including certain bills whose serial numbers had been recorded in advance (bait money). Later that day, at an address associated with Peek, law enforcement observed a vehicle registered to Peek. The defendant exited his vehicle and fled on foot. Law enforcement later found some of the bait money from the PNC Bank robbery as well as Peek’s driver’s license, among other items, in the vehicle.
On May 6, 2015, Peek allegedly attempted to rob a Bank of America in Linden, New Jersey. He allegedly entered the Bank of America, pointed a gun directly at a teller, and demanded money. Due in part to the Bank of America branch having bullet-proof glass in front of the teller station, the teller refused to turn over money to Peek.
Peek fled the bank and allegedly attempted to carjack three cars, all at gunpoint, on or near Route 1 in Linden. After the three unsuccessful attempts to commandeer a car, Peek took a hostage and held a gun to the hostage’s head. Officers of the Linden Police Department, who had by then arrived on the scene, ordered Peek to drop his gun. Peek complied and was taken into custody. A loaded firearm was recovered.
The bank robbery and attempted bank robbery charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of brandishing a weapon during the attempted robbery of Bank of America carries a mandatory seven-year sentence to be served consecutively with any other sentence.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the arrest and charges. He also thanked the Linden, Edison, South Plainfield, Middlesex, Dunellen, and Springfield Police Departments for their excellent work in this case.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
peek_marlon_complaint.pdf (341.28 KB)
U.S. Attorney Charges Former Police Dispatcher for Unauthorized Use of Crime ComputersRead the Press Release
BIRMINGHAM -- Federal prosecutors today charged a former police dispatcher with unauthorized use of law enforcement computers for non-law enforcement purposes, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell, and Alabama Secretary of Law Enforcement Spencer Collier.
The U.S. Attorney's Office charged DERRICK R. THOMAS, 38, of Warrior, with one count of unauthorized access to a protected computer to query law enforcement databases between 2011 and 2014 while he worked as a dispatcher for the Gardendale Police Department. Thomas queried the Alabama Criminal Justice Information Center and the National Crime Information Center on at least four individuals for other than law enforcement purposes at the request of someone who was not a law enforcement officer, according to the information filed in U.S. District Court.
Thomas has entered a plea agreement with the government acknowledging the actions charged and stating his intention to plead guilty. The plea agreement also was filed in court today.
The entity formerly known as ACJIC operates a data center to provide information to Alabama law enforcement and the criminal justice community. ACJIC, which operates in Montgomery, connects via a secure connection to criminal justice information systems for all 50 states, as well as NCIC. NCIC is an electronic clearinghouse of crime data maintained by the FBI and used by criminal justice agencies nationwide.
According to Thomas' plea agreement, he logged into the ACJIC/NCIC system on multiple occasions in order to gather and provide information to an acquaintance who was not a law enforcement officer. By doing so, Thomas engaged in unauthorized public dissemination of personal information. Thomas knew he was authorized to use the ACJIC/NCIC system only for law enforcement purposes and that accessing it for other purposes was a crime, according to the plea agreement.
The maximum penalty for unauthorized access to a protected computer is five years in prison and a $250,000 fine.
The Secret Service investigated the case with the assistance of the Alabama Law Enforcement Agency, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting.
Two Men Who Breached Photobucket.com Indicted and Arrested on Conspiracy and Fraud Related ChargesRead the Press Release
Two men have been arrested after breaching the computer services of Colorado based Photobucket, a company that operates an image and video hosting website, announced U.S. Attorney John Walsh for the District of Colorado and Special Agent in Charge Thomas Ravenelle for the Denver Division of the Federal Bureau of Investigations (FBI). Brandon Bourret, 39, of Colorado Springs, Colorado and Athanasios Andrianakis, 26, of Sunnyvale, California, were arrested today without incident at their homes. Both made initial appearances today, where they were advised of their rights and the charges pending against them.
According to the indictment, beginning on July 12, 2012 and continuing through July 1, 2014, Bourret and Andrianakis knowingly conspired to commit acts and offenses against the United States, namely computer fraud and abuse, access device fraud, identification document fraud and wire fraud. The indictment further alleges that there was interdependence among the members of the conspiracy.
The purpose of the conspiracy was for the conspirators to enrich themselves by selling passwords and unauthorized access to private and password protected information, images and videos on the Internet and by selling private and password protected information, images and videos that the conspirators obtained from the Internet.
The conspirators developed, marketed and sold a software application called Photofucket, which allowed viewers to circumvent the privacy settings of the image and video hosting website at Photobucket.com and to access and copy users private and password protected information, images and videos without authorization. The conspirators used Photofucket to obtain guest passwords to access users’ password protected albums. They also transferred, or caused to be transferred, guest passwords to others who paid to use the Photofucket application.
“It is not safe to hide behind your computer, breach corporate servers and line your own pockets by victimizing those who have a right to protected privacy on the internet,” said U.S. Attorney Walsh. “The U.S. Attorney’s Office is keenly focused on prosecuting those people for their theft -- and for the wanton harm they do to innocent internet users.”
“Unauthorized access into a secure computer system is a serious federal crime,” said Special Agent in Charge Ravenelle. “The arrest of Brandon Bourret and his co-conspirator reflects the FBI’s commitment to investigate those who undertake activities such as this with the intent to harm a company and its customers.”
The investigation regarding the breach and who’s albums were accessed is ongoing. For those who want to follow the status of this case, visit http://www.justice.gov/largecases – and then select “Photobucket.” In addition, the U.S. Attorney’s Office and the FBI commend Photobucket for their cooperation from the inception of the investigation – and thanked them for their continued assistance as both the investigation and prosecution moves forward.
Bourret and Andrianakis both face one count of conspiracy, which carries a penalty of not more than five years in federal prison and up to a $250,000 fine. They each face one count of computer fraud, aid and abet, which also carries a penalty of not more than five years in federal prison and up to a $250,000 fine. Finally, they each face two counts of access device fraud, which carries a penalty of not more than ten years in federal prison, and up to a $250,000 fine, per count.
This case is being prosecuted by Assistant U.S. Attorney David Tonini.
The charges contained in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
Two Men Who Breached Photobucket.com Indicted and Arrested on Conspiracy and Fraud Related ChargesRead the Press Release
CLICK HERE FOR A COPY OF THE INDICTMENT
Defendants sold access to people’s private photographs and videos by creating an applications known as “Photofucket”
DENVER – Two men have been arrested after breaching the computer services of Colorado based Photobucket, a company that operates an image and video hosting website (http://www.photobucket.com), U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Brandon Bourret, age 39, of Colorado Springs, and Athanasios Andrianakis, age 26, of Sunnyvale, California, were arrested today without incident at their homes. Both made initial appearances today, where they were advised of their rights and the charges pending against them.
According to the indictment, beginning on July 12, 2012 and continuing through July 1, 2014, Bourret and Andrianakis knowingly conspired to commit acts and offenses against the United States, namely computer fraud and abuse, access device fraud, identification document fraud and wire fraud. The indictment further alleges that there was interdependence among the members of the conspiracy.
The purpose of the conspiracy was for the conspirators to enrich themselves by selling passwords and unauthorized access to private and password protected information, images, and videos on the Internet and by selling private and password protected information, images and videos that the conspirators obtained from the Internet.
The conspirators developed, marketed and sold a software application called Photofucket, which allowed viewers to circumvent the privacy settings of the image and video hosting website at Photobucket.com and to access and copy users private and password protected information, images and videos without authorization. The conspirators used Photofucket to obtain guest passwords to access users’ password protected albums. They also transferred, or caused to be transferred, guest passwords to others who paid to use the Photofucket application.
“It is not safe to hide behind your computer, breach corporate servers, and line your own pockets by victimizing those who have a right to protected privacy on the internet,” said U.S. Attorney John Walsh. “The U.S. Attorney’s Office is keenly focused on prosecuting those people for their theft -- and for the wanton harm they do to innocent internet users.”
“Unauthorized access into a secure computer system is a serious federal crime,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “The arrest of Brandon Bourret and his co-conspirator reflects the FBI’s commitment to investigate those who undertake activities such as this with the intent to harm a company and its customers.”
The investigation regarding the breach and who’s albums were accessed is ongoing. For those who want to follow the status of this case visit http://www.justice.gov/largecases -- and then select “Photobucket”. In addition, the U.S. Attorney’s Office and the FBI commend Photobucket for their cooperation from the inception of the investigation – and thanks them for their continued assistance as both the investigation and prosecution moves forward.
Bourret and Andrianakis both face one count of conspiracy, which carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. They each face one count of computer fraud, aid and abet, which also carries a penalty of not more than 5 years in federal prison, and up to a $250,000 fine. Finally, the each face two counts of access device fraud, which carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine, per count.
This case is being prosecuted by Assistant U.S. Attorney David Tonini.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Twins Found Guilty of Attacking Man in Bias-Related Crime in Northwest WashingtonRead the Press Release
WASHINGTON – Christopher Lucas and Christina Lucas, 21-year-old twins from Washington, D.C., were found guilty by a jury today of the felony offense of aggravated assault while armed, with a bias enhancement, for attacking a man in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
The verdicts followed a trial in the Superior Court of the District of Columbia. In addition to the aggravated assault charge, Christopher Lucas was found guilty of a charge of simple assault involving a second victim. The Honorable Yvonne M. Williams will sentence them at a date to be determined. Both defendants are detained pending sentencing. Because of the bias enhancement, the defendants could face additional time in prison for the crime.
According to the government’s evidence, early on Oct. 19, 2013, the male victim and two women were among those attending a party at a rooming house in the 2800 block of Sherman Avenue NW. Just before 12:30 a.m., the three left the party and walked to street corner to hail a cab. While they were trying to hail a cab, the Lucases and a group of men approached them and attacked the man, using homophobic slurs. One of the women was also punched by Christopher Lucas. The male victim was knocked over on the sidewalk and punched and stomped multiple times by the Lucases and others in the group. Christina Lucas had an object in her hand and used it to cut the victim’s face while he was lying on the sidewalk.
The Metropolitan Police Department (MPD) was called, and the defendants fled. The victim was treated at a hospital for facial fractures and lacerations. The victim has a permanent scar beneath his eye as a result of the cut. Both defendants were later arrested pursuant to arrest warrants. The object in Christina Lucas’s hand during the assault was never recovered.
In announcing the verdicts, Acting U.S. Attorney Cohen commended the work of the officers, detectives and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Nicole McGhee and Tiffany Fogle; Litigation Technology Specialists Paul Howell, Aneela Bhatia, and Anisha Bhatia; Victim/Witness Security Specialist David Foster, and Victim/Witness Advocate Diana Lim. Finally, he praised the work of Assistant U.S. Attorneys Veronica Jennings, who investigated and prosecuted the case, and Kapil Longani, who prosecuted the case.
Tampa Woman Sentenced to Federal Prison for Engaging in Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Rosa Moultry Martin to five years in federal prison for mail fraud and aggravated identity theft. The Court also ordered Martin to forfeit $153,219 and two luxury cars, which are traceable to proceeds of the offense. She pleaded guilty on December 2, 2014.
According to court documents, in May 2012, postal employees at the New Tampa Post Office reported to law enforcement that numerous pieces of mail bearing the label “Turbo Tax,” and addressed to at least 10 different individuals, were scheduled to be delivered to Martin’s residence in Tampa. On June 7, 2012, investigators made a controlled delivery of two of these envelopes to Martin’s curbside mailbox. The envelopes, which contained prepaid debit cards, were addressed to J.H. and D.H. Neither of these individuals resided at the address.
Investigators learned that the prepaid debit cards issued to J.H. and D.H. were each loaded with a fraudulently obtained tax refund in the amount of $9,919. Further investigation revealed that a debit card was opened in the name of D.H. using his actual date of birth and social security number. This debit card was used at an ATM in Zephyrhills on June 7, 2012, to make three simultaneous cash withdrawals totaling $1,000. These successive transactions were captured on the ATM’s video and show Martin making the withdrawals. She also made additional withdrawals using another reloadable debit card containing a fraudulently obtained tax refund.
On June 26, 2012, a search warrant was executed at Martin’s home. Evidence seized during the search included a laptop and desktop computer, more than 50 prepaid debit cards issued in other names, print-outs from a genealogy website containing personally identifiable information (PII), and numerous ledgers containing PII, account information, passwords, and email addresses. The search also lead to the recovery of receipts for money orders that had been purchased with fraudulently obtained tax refunds and used by Martin to pay for her rent and other items. A subsequent search of Martin, her husband, and her vehicle revealed several items, including an iPad, a tablet, cell phones, and approximately $25,000 worth of jewelry. Forensic examinations of the computers and tablets revealed Internet search history for tax-related websites and the PII of at least 20 individuals.
In total, investigators have determined that Martin possessed and used the PII of approximately 76 victims, without their permission, to file fraudulent tax returns and/or receive refunds resulting from the filing of fraudulent tax returns. Investigators determined that Martin, working alone and with others, made false claims for refunds totaling approximately $641,754 and received approximately $153,219 to which she was not entitled.
This case was investigated by the United States Postal Inspection Service, the Tampa Police Department, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Tampa Man Sentenced to Seven Years for Credit Card Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Ricardo Romero-Mesa (44, Tampa) to seven years in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. The Court also ordered him to forfeit $13,423.79, which are the proceeds traceable to his criminal conduct. He pleaded guilty on January 15, 2015.
According to court documents, in early 2014, investigators identified Romero-Mesa and Lazaro Hernandez-Cabrales as co-leaders of a credit card fraud ring. Together, and with others, they used numerous stolen credit and debit card account numbers to generate counterfeit credit cards. They used the credit cards to purchase hundreds of reloadable Visa gift cards. The gift cards were then used to purchase items at home improvement stores, which were later returned in exchange for cash.
Investigators determined that the conspirators initially purchased the stolen account numbers, many from Navy Federal Credit Union and Armed Forces Bank, from an online website based in Eastern Europe. Later, Hernandez-Cabrales stole account numbers by obtaining keys to gas pumps and installing skimmers.
On February 17, 2014, during a search of the residence shared by Romero-Mesa and Hernandez-Cabrales, investigators seized more than 200 gift cards, credit cards, and hotel room keys, some of which had been re-encoded with other credit and debit card account numbers. Agents also recovered computers, receipts from merchandise returns, high-end purses and clothing, and receipts for the purchase of wire transfers from the United States to Ukraine. Further investigation revealed that Hernandez-Cabrales had wired more than $23,500 to recipients in Ukraine and Russia to purchase at least 800 stolen account numbers from a website that offers them for sale.
In total, investigators recovered more than 1,000 stolen credit card numbers issued by at least 15 different financial institutions.
Lazaro Hernandez-Cabrales previously pleaded guilty for his role in this case. On February 10, 2015, he was sentenced to five years and ten months in federal prison.
This case was investigated by the Tampa Police Department, the Florida Department of Law Enforcement, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Stephen M. Howells II Enters Guilty Pleas to All 21 Counts of Federal IndictmentRead the Press Release
SYRACUSE, NEW YORK –Stephen M. Howells II, age 39, of Hermon, NY pled guilty today to all 21 counts of a federal indictment charging him with child exploitation offenses, according to United States Attorney Richard S. Hartunian and Andrew T. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. Howells will be sentenced by U.S. District Judge Glenn T. Suddaby on Friday, September 18, 2015 at 11:00 am in Syracuse, New York. A trial is scheduled for co-defendant Nicole Vaisey on June 22, 2015 before Judge Suddaby in Syracuse.
Howells pled guilty to conspiracy to produce child pornography, producing child pornography (Counts 2-10), and possessing child pornography. The conspiracy count (Count 1) and fifteen additional counts relate to Howells’ sexual abuse of six separate children (ranging in age from 5 to 11) and his filming of that abuse on sixteen dates between December 2012 and August 2014. Howells is charged alone in six of those counts (Counts 11-16); Vaisey is also charged with conspiracy and nine of the production counts (Counts 2-10). Howells also pled guilty to five counts of possession of child pornography, (Counts 17-21), separate and apart from the children and images charged in the first 16 counts of the superseding indictment. These counts relate to numerous image and video files Howells collected from the Internet and downloaded to each of five separate hard drives from computers that were recovered from his residence. These images and video files also involve prepubescent minors and minors under the age of 12.
Howells’ admissions as part of his guilty plea included the following:
From September 2013 to August 2014, Howells conspired with Vaisey to produce child pornography. Howells obtained drugs through his work as a registered nurse and he used the drugs to sedate the child victims. On sixteen specified dates between December 2012 and August 2014, Howells sexually abused six separate children, ranging in age from 5 to 11, sometimes with Vaisey also doing so, as Howells or Vaisey filmed that abuse. Howells and Vaisey planned to abduct children to engage in sexually explicit conduct. They kidnapped two Amish children from a farm stand in August of 2014 to use them to engage in sexually explicit conduct and produce images and videos of that conduct. On August 15, 2014, Howells possessed five separate computer hard drives containing numerous image and video files of actual young children engaged in sexually explicit conduct.
Howells faces at least 15 years imprisonment, and up to 30 years on the conspiracy charge, as well as on each of the substantive exploitation counts. He also faces a maximum sentence of 20 years on each of the possession counts. The Court has the discretion to run all of these sentences concurrently or consecutively to one another. Howells will also be required to serve a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration. In addition, conviction on any count of the superseding indictment will require Howells to register as a sex offender.
"The criminal conduct committed by Stephen Howells is beyond comprehension," stated U.S. Attorney Richard S. Hartunian. "Our hearts go out to all the young victims who endured his unspeakable acts. We will continue to do everything in our power to see that he will never abuse another innocent child. I commend the community, the St. Lawrence County Sheriff’s Office, the New York State Police, and the Federal Bureau of Investigation for working tirelessly to bring him to justice."
"The crimes committed by Howells are some of the most horrific imaginable," said Special Agent in Charge Andrew W. Vale. "He carefully planned and carried out these abuses and exploitations, and today's guilty plea is the result of a vigorous investigation to locate Howells and uncover the full extent of his criminal actions. The FBI commends the work and dedication of its law enforcement partners and the U.S. Attorney's Office. It is because of this essential collaboration that the victims were recovered and that Howells is receiving justice for his crimes."
This case was investigated by the St. Lawrence County Sheriff’s Office and the Federal Bureau of Investigation with substantial assistance from the New York State Police. It is being prosecuted by Assistant United States Attorneys Lisa Fletcher and Tamara Thomson.
The case is 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, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
St. Louis Man Charged with Armed Robberies of Auto Parts Stores in Collinsville and BellevilleRead the Press Release
Michael D. Dean, 24, of St. Louis, MO was arraigned Friday on a four count Indictment charging him with two counts of Interference with Commerce by Robbery, violations of the Hobbs Act, and two counts of Carrying and Using a Firearm during a Crime of Violence.
The charges stem from two armed robberies of Advanced Auto Parts stores in Collinsville and Belleville in April 2015. If convicted of the Hobbs Act charges, Dean faces a term in federal prison of not more than twenty years, a fine of up to $250,000, and a term of supervised release of not more than three years on each offense. If convicted of both counts of Carrying and Using a Firearm during a Crime of Violence, Dean faces a minimum term of imprisonment of thirty-two years to run consecutive to, or in addition to, any term of imprisonment on the Hobbs Act charges.
The case is being investigated by the St. Clair County Sheriff’s Department, the Collinsville Police Department, and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Laura Reppert.
St. James Resident Charged with Selling and Possessing Migratory BirdsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, was charged today in an eight-count Indictment with selling and possessing migratory game birds.
According to the Indictment, from June 2010 to December 2011, FOSLE illegally bartered and sold for cash four yellow-crowned night herons and sixty-two white ibis, which are migratory birds protected under the Migratory Bird Treaty Act (MBTA). The Indictment also charges that on April 2, 2013, FOLSE possessed a Barn Owl and a Red-Tailed Hawk.
If convicted for the sale of migratory birds, FOLSE faces a maximum term of imprisonment of two years, followed by one year of supervised release, and a maximum fine of $2,000. A conviction for the possession of the Barn Owl and the Red-Tailed Hawk carries a maximum term of imprisonment of six months, followed by one year of supervised release, and a maximum fine of $15,000.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Louisiana Department of Wildlife and Fisheries and the United States Fish and Wildlife Service in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Royley Folse, Jr. Indictment (1.92 MB)
School Construction Authority General Contractor and His Employees Convicted of Multiple Crimes for Participating in Long-Running Scheme to Deprive Workers of the Prevailing WageRead the Press Release
Earlier today, following four weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Muzaffar Nadeem, the owner of SM&B Construction Co., Inc. (SM&B), and co-defendants Zainul Syed, Afzaal Chaudry, and Irfan Muzaffar for their participation in a scheme to pay SM&B’s workers a fraction of the prevailing wage on projects funded by the New York City School Construction Authority (SCA), as SM&B was legally and contractually required to do. Specifically, Nadeem was convicted on charges of mail and wire fraud, structuring financial transactions, federal programs bribery, making illegal cash payments to a union official, money laundering, unlawful monetary transactions over $10,000, subscribing to false tax returns, and multiple related conspiracy charges. Syed, Chaudry, and Muzaffar were convicted of various crimes for their participation in the scheme. When sentenced by United States District Judge Brian M. Cogan, Nadeem, Syed, and Chaudry face sentences of up to 20 years in prison, and Muzaffar faces a sentence of up to five years in prison.
The verdicts were announced by Kelly T. Currie, Acting United States Attorney for the Eastern District of New York; Shantelle P. Kitchen, Special-Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York; and Special Agent-in-Charge Cheryl Garcia, New York Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“The message to those who win and perform public works contracts in New York City and New York State is loud and clear – if you want to reap the benefits that come from being awarded those contracts, you will be held to following the rules,” stated Acting United States Attorney Currie. “You must pay your workers the wages to which they are entitled, rather than rig the system with bribes and then scheme to hide your income from the government. Those who do not follow the rules will be vigorously prosecuted.”
Mr. Currie expressed his grateful appreciation to the Office of the New York State Attorney General and that office’s Organized Crime Task Force, the New York City Department of Investigation, the New York City School Construction Authority, Office of Inspector General, the New York City Police Department, and the New York County District Attorney’s Office for their assistance in the investigation and prosecution of the defendants.
Nadeem owned and operated SM&B, which received over $36 million in fraud-induced payments from the SCA since 2007. Chaudry and Syed worked as a foreman and office manager, respectively, at SM&B. Muzaffar is Nadeem’s son, and also worked in SM&B’s office.
Both New York State Labor Law and the terms of its contracts with the SCA required SM&B to pay workers on SCA-funded projects a prevailing wage rate, which was set by the New York City Comptroller. Instead, SM&B paid workers, including bricklayers and laborers, cash wages on its projects at rates that were a small fraction of the prevailing wage. Nadeem, Chaudry, and Syed then falsely certified to the SCA that the workers had been paid the prevailing wage, thereby committing mail fraud, wire fraud, and conspiracy to commit those crimes.
To conceal the charged fraud scheme, and to obtain cash to pay the illegally low wages to workers, Nadeem, Syed, and Muzaffar engaged in illegal structuring, cashing multiple checks, each for less than $10,000 on a single day, for a total amount of more than $10,000, in an effort to avoid the required filing of Currency Transaction Reports (CTRs). Since July 2006, Nadeem and others acting his direction wrote more than $4.1 million in structured checks on SM&B’s account.
Nadeem and Syed also arranged for the payment of $30,000 in cash bribes to an undercover SCA Inspector, and over $7,000 in cash bribes to a shop steward for the Local 1 Bricklayers Union, Russell Argila. Argila has previously pleaded guilty to accepting those bribes. Nadeem also laundered approximately $7 million in proceeds of the charged fraud scheme by funneling it through shell companies and sent millions of dollars through these shell companies to Pakistan to invest in an amusement park and resort complex named “Wayzgoose Park.”
Finally, Nadeem filed false tax returns for SM&B and himself that fraudulently inflated SM&B’s business expenses and reduced its profits by more than $4 million.
At sentencing, the defendants also face forfeiture of substantial assets and cash.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Lan Nguyen, Gina M. Parlovecchio, and Nathan Reilly are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
The Defendants:
MUZAFFAR NADEEM
Age: 59
Brooklyn, New York
ZAINUL SYED
Age: 40
Brooklyn, New York
AFZAAL CHAUDRY
Age: 48
Brooklyn, New York
IRFAN MUZAFFAR
Age: 31
Brooklyn, New York
E.D.N.Y. Docket No. 13-CR-424 (BMC)