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8 May 2015
Sacramento Man Sentenced to Two Years in Prison for Marriage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Sippy Lal, 62, of Sacramento, was sentenced to two years in prison today for conspiring to induce aliens to illegally enter the United States for private financial gain, United States Attorney Benjamin B. Wagner announced.
According to court documents, from at least October 24, 2006, until January 10, 2012, Lal and co-defendants Mamta Sharma, 37, and Rani Singh-Lal, 30, both of Sacramento, were involved in an elaborate immigration-fraud scheme involving foreign nationals from India who paid to enter into sham engagements or marriages with locally recruited U.S. citizens in an effort to legalize their immigration status. The citizens recruited by Lal were paid thousands of dollars to fly to India, meet and take pictures with a purported spouse, and sometimes enter into actual marriages (albeit often using aliases). Thereafter, fraudulent petitions were filed with the United States seeking visas allowing the Indian citizens to enter and reside within the United States. On at least one occasion, after an alien entered the country on a fraudulent fiancé visa procured through the scheme, Lal paid a U.S. citizen to further participate by entering into a sham marriage with the alien in Sacramento.
Sharma used various aliases to pose as a U.S. citizen in five different petitions filed since 2008, despite the fact that she is not a U.S. citizen and despite the fact that she was married to Lal throughout that time period. Similarly, Singh-Lal posed as the petitioner in three different petitions, all filed with slight variations of her true name. According to court documents, over 25 fraudulent petitions were submitted to immigration authorities as a result of the conspiracy, and at least nine Indian nationals entered the United States and were, at least for some period of time, able to avoid detection.
“At U.S. Citizenship and Immigration Services, a team of three fraud officers looked into the allegations, and developed information to provide to Immigration and Customs Enforcement that helped to get an admission of guilt,” said District Director Mari Carmen Jordan.
“Marriage fraud is not a storyline for a Hollywood movie, it’s a federal crime, and unfortunately one that is all too common,” Tatum King, acting special agent in charge for ICE Homeland Security Investigations (HSI) in northern California. “As this case makes clear, HSI will aggressively target those who conspire to corrupt the integrity of America’s legal immigration system for personal profit, putting our nation’s security at risk in the process.”
Sharma and Singh-Lal previously pleaded guilty and were sentenced to of 24 months and 27 months in prison, respectively.
This case was the product of an investigation U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Citizenship and Immigration Services – Fraud Detection and National Security Unit, and the California Department of Justice – Bureau of Investigation and Intelligence. Assistant United States Attorneys Michele Beckwith and Philip Ferrari prosecuted the case.
Ruston, Louisiana, Housing Authority Agrees to Pay $175,000 and Stop Filling Vacancies Based on Race to Settle Justice Department LawsuitRead the Press Release
The Justice Department announced today that the Housing Authority of the city of Ruston, Louisiana, has agreed to pay $175,000 and adopt comprehensive new policies to settle a race discrimination lawsuit filed by the department. The settlement must still be approved by U.S. District Court Judge Robert G. James of the Western District of Louisiana.
The department’s lawsuit, filed in September 2013, alleged that the Ruston Housing Authority (RHA) had long segregated the 300 apartments in its five public housing developments by assigning vacancies to applicants based on their race, rather than on their place on the waiting list. Specifically, the department alleged that the RHA disproportionately assigned white applicants to its two developments that were located in the predominantly white neighborhoods of Ruston—Louise Homes and Maryland Plaza Homes. At the same time, the department alleged, RHA primarily assigned African-American applicants to the complexes located in predominantly African-American neighborhoods—Eastwood Homes, Greenwood Homes and Truman Homes. When it originally began developing housing in the 1950’s and early 1960’s, the RHA explicitly reserved Louise Homes and Maryland Plaza for “white” persons, while reserving Greenwood and Truman for what it termed “colored” persons.
Although the RHA no longer maintained this de jure system, the department alleged that it had continued to segregate its complexes in practice. During the litigation, the former Ruston Housing Authority project manager from 2003 to 2013 admitted in her sworn deposition testimony that on numerous occasions she skipped over earlier applying African-American applicants in order to fill vacancies at Louise Drive Homes with later applying white applicants. She also testified that on multiple occasions she did not offer eligible white applicants available apartments in the nearly all-black Eastwood Homes, Greenwood Homes and Truman Homes, but instead offered those units to later-applying African American applicants.
“People who seek public housing, like all other home seekers, have the right to access housing free from racial discrimination," said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “It is particularly distressing that, almost 50 years after the passage of the Fair Housing Act, this public housing authority was still filling vacancies based on the color of an applicant’s skin, rather than based on when he or she had applied. We are pleased that the Ruston Housing Authority has agreed to dismantle this segregated system and compensate its victims.”
“We have zero tolerance for housing providers that discriminate against individuals based on race,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “Today’s settlement is an example of our continuing effort to end discrimination in such a vital need, housing. The U.S. Attorney’s Office is committed to addressing unlawful discriminatory practices and enforcing anti-discrimination laws that protect the rights of all people."
“Assigning persons housing based on the color of their skin not only robs them of the basic dignity everyone seeking housing should be afforded, it violates the Fair Housing Act,” said Assistant Secretary Gustavo Velasquez of the Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office. “HUD is committed to working with the Justice Department to take action against housing providers whose policies and practices are discriminatory.”
Upon court approval, the settlement, which is in the form of a consent decree, will require the RHA to implement nondiscriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that RHA housing units are made available for rent based on an applicant’s position on its waiting list, irrespective of race. The decree also requires that if RHA builds or acquires additional units, they are to be located in areas that do not further racial segregation. In addition, RHA employees who are responsible for making housing decisions will receive training on the new nondiscriminatory policies and procedures, the consent decree and the Fair Housing Act.
In addition, the RHA will pay $175,000 to compensate 19 individuals who suffered damages as a result of the RHA passing them over for available housing units because of their race. Additionally, for those 19 victims of the RHA’s discriminatory actions identified in the consent order, the RHA will allow those who are current tenants to request a transfer to another complex on a priority basis. It will also permit those identified individuals who are prior applicants and former tenants to reapply and, upon approval of their applications, give them priority for a unit at a complex of their choice.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the division’s Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Ruston Housing Authority agrees to pay $175,000 and stop assigning vacancies based on race to settle Justice Department lawsuitRead the Press Release
WASHINGTON – The Justice Department announced today that the Housing Authority of the city of Ruston, La., has agreed to pay $175,000 and adopt comprehensive new policies to settle a race discrimination lawsuit filed by the department. The settlement must still be approved by U.S. District Judge Robert G. James of the Western District of Louisiana.
The department’s lawsuit, filed in September 2013, alleged that the Ruston Housing Authority (RHA) had long segregated the 300 apartments in its five public housing developments by assigning vacancies to applicants based on their race, rather than on their place on the waiting list. Specifically, the department alleged that the RHA disproportionately assigned white applicants to its two developments that were located in the predominantly white neighborhoods of Ruston—Louise Homes and Maryland Plaza Homes. At the same time, the department alleged, RHA primarily assigned African-American applicants to the complexes located in predominantly African-American neighborhoods—Eastwood Homes, Greenwood Homes and Truman Homes. When it originally began developing housing in the 1950s and early 1960s, the RHA explicitly reserved Louise Homes and Maryland Plaza for “white” persons, while reserving Greenwood and Truman for what it termed “colored” persons.
Although the RHA no longer maintained this de jure system, the department alleged that it had continued to segregate its complexes in practice. During the litigation, the former Ruston Housing Authority project manager from 2003 to 2013 admitted in her sworn deposition testimony that on numerous occasions she skipped over earlier applying African-American applicants in order to fill vacancies at Louise Drive Homes with later applying white applicants. She also testified that on multiple occasions she did not offer eligible white applicants available apartments in the nearly all-black Eastwood Homes, Greenwood Homes and Truman Homes, but instead offered those units to later-applying African American applicants.
“People who seek public housing, like all other home seekers, have the right to access housing free from racial discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “It is particularly distressing that, almost 50 years after the passage of the Fair Housing Act, this public housing authority was still filling vacancies based on the color of an applicant’s skin, rather than based on when he or she had applied. We are pleased that the Ruston Housing Authority has agreed to dismantle this segregated system and compensate its victims.”
“We have zero tolerance for housing providers that discriminate against individuals based on race,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “Today’s settlement is an example of our continuing effort to end discrimination in such a vital need, housing. The U.S. Attorney’s Office is committed to addressing unlawful discriminatory practices and enforcing anti-discrimination laws that protect the rights of all people.”
“Assigning persons housing based on the color of their skin not only robs them of the basic dignity everyone seeking housing should be afforded, it violates the Fair Housing Act,” said Assistant Secretary Gustavo Velasquez of the Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office. “HUD is committed to working with the Justice Department to take action against housing providers whose policies and practices are discriminatory.”
Upon court approval, the settlement, which is in the form of a consent decree, will require the RHA to implement nondiscriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that RHA housing units are made available for rent based on an applicant’s position on its waiting list, irrespective of race. The decree also requires that if RHA builds or acquires additional units, they are to be located in areas that do not further racial segregation. In addition, RHA employees who are responsible for making housing decisions will receive training on the new nondiscriminatory policies and procedures, the consent decree and the Fair Housing Act.
Read the Ruston Housing Authority consent order here (4.87 MB)
In addition, the RHA will pay $175,000 to compensate 19 individuals who suffered damages as a result of the RHA passing them over for available housing units because of their race. Additionally, for those 19 victims of the RHA’s discriminatory actions identified in the consent order, the RHA will allow those who are current tenants to request a transfer to another complex on a priority basis. It will also permit those identified individuals who are prior applicants and former tenants to reapply and, upon approval of their applications, give them priority for a unit at a complex of their choice.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the division’s Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Rochester Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Luis Guzman, 26, of Rochester, NY, pleaded guilty to distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime, before U.S. District Judge Charles J. Siragusa. The charges carry a maximum penalty of life in prison and a $1,000,000 fine.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated on December 18, 2012, the defendant sold heroin and a .22 caliber revolver to a confidential informant during a police investigation. Guzman admitted to selling heroin and cocaine on approximately 18 other occasions between November 30, 2012 and March 7, 2013.
The plea is the result of an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division and Investigators of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for August 18, 2015 at 1:30 p.m. before Judge Siragusa.
Richmond Man Charged with Cashing U.S. Treasury Checks Using Stolen IdentitiesRead the Press Release
OAKLAND – A federal grand jury indicted Hugh Robinson with theft of public money and aggravated identity theft, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the indictment, on March 18, 2014, Robinson, a resident of Richmond, Calif., used the stolen identities of others to cash U.S. Treasury checks. The U.S. Treasury checks cashed by Robinson were payments of tax refunds and/or Social Security benefits to which Robinson was not entitled. In the indictment, Robinson was charged with three counts of theft of public funds, in violation of 18 U.S.C. § 641, and three counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Robinson has been arrested and is currently detained.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces 10 years in prison and a fine of $250,000 for each violation of 18 U.S.C. § 641 as well as 2 years in prison and a fine of $250,000 for each violation of 18 U.S.C. § 1028A. The 2-year terms for identity theft violations would be served consecutive to the underlying felony. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Repeat Bank Robber who Recruited and Trained Juveniles for Robberies Sentenced to 10 Years in PrisonRead the Press Release
A 31-year-old King County man was sentenced today in U.S. District Court in Seattle to ten years in prison for his involvement in more than a dozen bank robberies across the state, announced U.S. Attorney Annette L. Hayes. ROBERT CAL ADAMS, III, 31, was dubbed the “Rabid Fan Bandit” by the FBI because of the various hats with sports logos he wore in a string of bank robberies. The investigation revealed ADAMS’ involvement in a second string of bank robberies dubbed the “Buddy Bandit” bank robberies where juveniles were recruited, trained and sent in to rob tellers using notes almost identical to the one ADAMS used when solo. At sentencing U.S. District Judge John C. Coughenour stated that this sentence is imposed “with a heavy emphasis on the defendant’s decision to involve juveniles” in criminal activity.
“This defendant not only terrorized tellers across our state, he recruited and trained teen-agers to continue his crime spree,” said U.S. Attorney Annette L. Hayes. “His willingness to draw young people into these bank robberies makes this a particularly despicable crime”
ADAMS pleaded guilty to one count of conspiracy to commit bank robbery and ten individual counts of bank robbery. According to records filed in the case ADAMS robbed the following banks by handing a teller a threatening note demanding various amounts of cash: Chase Bank on Auburn Way in Auburn, Washington on March 3, 2014; Banner Bank on East Mission Street in Spokane, Washington on March 10, 2014; Chase Bank on 272nd Street in Covington, Washington on March 13, 2014; Chase Bank on 108th SE in Renton, Washington on March 19, 2014; Wells Fargo Bank on Gravelly Lake Dr. SW in Tacoma, Washington on March 24, 2014, and Chase Bank on S. 19th Street in Tacoma on March 31, 2014.
After the March 2014 bank robberies, ADAMS recruited others to his scheme and is convicted in connection with four other bank robberies where juveniles went into the banks with notes demanding money and threatening harm to the tellers. These robberies include the April 1, 2014 robbery of Chase Bank on Pacific Avenue in Tacoma; the April 7, 2014 robbery of US Bank on 176th St., Puyallup, Washington; the April 9, 2014 robberies of Alaska Federal Credit Union branches in Renton and Kent, Washington; the April 9, 2014 robbery of US Bank on Pacific Highway in Des Moines, Washington; the April 10, 2014 robbery of Wells Fargo on 72nd Street East, Tacoma; the April 11, 2014 robbery of BECU on Pacific Highway South, Kent, and the April 11, 2014 robbery of Bank of America on SW 336th St., Federal Way, Washington.
Finally, ADAMS teamed up with co-defendant Vincent G. Thompson to rob Chase Bank, on Canyon Road East in Puyallup on April 14, 2014. The final robbery in the spree was on April 21, 2014. Following the robbery of US Bank on Pacific Highway South in Des Moines, investigators were able to locate ADAMS at a nearby motel and arrest him.
“Bank robbers who commit their crimes across multiple jurisdictions might never face justice if not for the coordination of partners,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle Division. “The FBI’s Seattle Safe Streets Task Force and its partners throughout the state shared information at every step of this investigation, which allowed us to determine connections between bank robberies and identify everyone involved.”
The case was investigated by the FBI’s Seattle Safe Streets Task Force with assistance from multiple local police departments and the Washington State Department of Corrections.
The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County prosecutor specially designated to prosecute cases in federal court.
Previously Convicted Felon Sentenced for Gun PossessionRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway has sentenced Noel Alvarado Mathew (39, Puerto Rico) to four years and nine months in federal prison for being a felon in possession of a firearm. He pleaded guilty on January 28, 2015.
According to court documents, law enforcement officers obtained a cell phone video depicting Alvarado at a local gun range repeatedly firing a Glock pistol. At the time of the incident, Alvarado had previous felony convictions for robbery, gun, and drug violations. As a result, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Pottawattamie County Resident Sentenced to 120 Months in Prison for Conspiracy to Distribute Methamphetamine and 60 Months in Prison for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
COUNCIL BLUFFS, IA - On May 7, 2015, Jeffrey Scott Gibler, a 50 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 120 months in prison for conspiring to distribute methamphetamine, and 60 months consecutive in prison for carrying and possessing a firearm in relation to and in furtherance of drug trafficking, announced United States Attorney Nicholas A. Klinefeldt. Gibler was also ordered to serve ten years of supervised release following imprisonment, and to pay $200 towards the Crime Victims Fun.
On January 1, 2015, the defendant pled guilty to these charges, which was the result of an investigation by law enforcement of drug trafficking that occurred in Pottawattamie County, Iowa. Beginning as early as March of 2013, continuing through October of 2013, Gibler conspired with others to distribute over approximately two kilograms of methamphetamine in the Southern District of Iowa. Gibler was also found to have carried and possessed a .22 caliber revolver in relation to the methamphetamine distribution.
The investigation was conducted by the Southwest Iowa Narcotics Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pembroke Woman Pleads Guilty to Making False Statements to Obtain Social Security BenefitsRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Rosemary Peterson, 29, of Pembroke, Maine, pleaded guilty today in U.S. District Court in Bangor to making false statements to obtain Social Security Disability Insurance (“SSDI”) benefits. SSDI benefits are paid by the Social Security Administration (“SSA”) to people with disabilities.
According to court records, from April 2011 until November 2012, the defendant was designated as the representative payee for her boyfriend’s SSDI benefits. During this period of time, her boyfriend received over $17,000 in SSDI benefits. In November 2011, the defendant’s boyfriend was required to undergo a Continuing Disability Review to determine if he was still disabled. During this review, the defendant claimed that her boyfriend did not work outside the house and required someone to clean, bathe, dress and cook for him. In fact, the defendant had lived with her boyfriend for several years and was well aware that he did not have disabilities that required her to clean, bathe, dress and cook for him. She was also aware that her boyfriend did a significant amount of work outside the house including working as a scrap metal dealer, carpenter and woodcutter.
The defendant faces up to five years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the SSA’s Office of the Inspector General.
Owner of Utica Dog Food Plant Admits to Harboring Illegal AliensRead the Press Release
SYRACUSE, NEW YORK – Michael Dote, age 47, of West Edmeston, New York, pled guilty to harboring four illegal aliens from November 2013 through December 31, 2013 at a dog food plant Dote owns named Scooby Rendering, Inc. ("Scooby"), located at 1930 Oriskany Street, Utica, New York according to United States Attorney Richard S. Hartunian.
During the plea hearing on May 8, 2015, Dote admitted as the co-owner/operator of Scooby, he was responsible for the hiring of Scooby employees. In 2013, Dote hired four illegal aliens from Guatemala. When Dote hired the four aliens, he did not request any documentation verifying that they were authorized to work in the United States. On December 30, 2013, emergency crews responded to the report of a fire at one of the loading docks at Scooby. The fire investigation subsequently revealed that there were four aliens working and residing at Scooby. Dote admitted that he harbored the aliens and that such conduct substantially facilitated the aliens’ remaining in the United States.
The defendant is facing a statutory maximum sentence of 5 years imprisonment and a maximum fine of $250,000.00. Dote is scheduled to be sentenced on September 18, 2015 before the Honorable Glenn T. Suddaby.
This prosecution resulted from an investigation conducted by U.S. Homeland Security Investigations (HSI), Syracuse, New York, with cooperation from the New York State Police, Whitestown Police Department, ICE Enforcement and Removal Operations, U.S. Border Patrol, Utica Police Department, and CBP Air and Marine Operations. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant United States John Duncan at (315) 448-0672.
O.C. Firefighter Pleads Guilty to Child Pornography Charges for Sending Money Abroad to Produce Explicit Photos of Young GirlsRead the Press Release
SANTA ANA, California – A commercial firefighter who resides in Huntington Beach pleaded guilty this morning to a federal charge of attempting to produce child pornography after sending money to what he thought was a young girl in the Philippines to purchase a camera to take sexually explicit photos of herself and an 11-year-old friend.
John McArthur, 57, pleaded guilty before United States District Judge Josephine Staton.
An investigation revealed that in January 2012 McArthur had online conversations with a person he believed was a 13-year-old girl in the Philippines. During those online conversations, McArthur agreed to send money for the purchase of a camera that would be used to take sexually explicit photographs of the girl and an 11-year-old friend. McArthur later went to a Western Union agent to transfer the money to the 13-year-old minor.
Unbeknownst to McArthur at the time, the person posing as the 13-year-old girl was Robert Oliver Clark, 75, a United States citizen residing in the Philippines. Clark was arrested in September 2014 in a related case, and he has agreed to plead guilty to possession of child pornography. In a plea agreement recently filed in United States District Court, Clark admitted that he “possessed, in his computer hard drive and in his email accounts, 5,443 images and 53 videos of child pornography, including 43 images and 1 video portraying sadistic or masochistic conduct and 16 images portraying toddlers.” Clark, who resided in Texas prior to moving to the Philippines, is scheduled to enter his guilty plea on May 21 in United States District Court in Los Angeles.
During this investigation, law enforcement authorities discovered that McArthur received hundreds of images and several videos of child pornography through his email accounts.
McArthur is scheduled to be sentenced by Judge Staton on August 21, at which time he faces a statutory maximum sentence of 30 years in federal prison.
The investigation into McArthur and Clark was headed by the United States Postal Inspection Service, which received substantial assistance from the U.S. Department of State, Diplomatic Security Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Los Angeles Joint Regional Intelligence Center.
“Protecting children from crimes of sexual abuse and exploitation is a priority for the U.S. Postal Inspection Service,” stated Robert Wemyss, Inspector in Charge for the Los Angeles Division. “I'm proud of the work of the Postal Inspection Service and our investigative partners to bring child predators to justice. U.S. Postal Inspectors have investigated these crimes for more than a century. While the predators’ use of technology has evolved, the core harm has not changed: a child's lost innocence. We will not lose sight of this, and remain steadfast in our efforts to investigate, apprehend, and assist in the prosecution of those who seek to exploit children via the U.S. Mail, wherever in the world they may be.”
Release No. 15-043
O'Fallon, Missouri, Man Sentenced on Federal Wire Fraud ChargesRead the Press Release
St. Louis, MO – DANA JEFFERSON was sentenced to 42 months imprisonment on multiple fraud charges involving a scheme to lure lenders by falsely representing that he was the beneficiary of a multi-million dollar inheritance.
According to court documents, Jefferson represented to prospective lenders that he had been left a multi-million dollar inheritance from his deceased father’s estate, with the amount ranging from $5,000,000 to $200,000,000. Jefferson sometimes told lenders that the funds were kept in a trust, and other times that the funds were kept either in a local credit union or a bank in Miami, Florida. Jefferson also told lenders that he did not have immediate access to his inheritance, providing various explanations as to the reasons why. However, Jefferson had not been left any such inheritance. Instead, the inheritance was a fiction used to induce his victims to lend him money and to offer him free housing at their residences. Jefferson made false promises to lenders that once he gained access to his inheritance, he would use the funds to purchase homes for them, or in some cases, would repay double the amount of the loan. Jefferson also promised other lenders that he would purchase them expensive motor vehicles, pay for plastic surgery, cruises and a wedding. Jefferson obtained in excess of $740,000 in loans from nine individuals as part of his scheme.
Jefferson, of O’Fallon, Missouri (also known as Casey Jefferson, Dana Tiberius Jefferson and Dana Tyrone Jefferson), pled guilty in January to four felony counts of wire fraud. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran handled the case for the U.S. Attorney’s Office.
New York Man Enters Guilty Plea to All Twenty One Counts of Federal IndictmentRead the Press Release
Stephen M. Howells II, 39, of Hermon, New York, pleaded guilty today to all 21 counts of a federal indictment charging him with child exploitation offenses, according to U.S. Attorney Richard S. Hartunian for the North District of New York and Special Agent in Charge Andrew T. Vale of the Albany Division for the Federal Bureau of Investigation (FBI). Howells will be sentenced by U.S. District Judge Glenn T. Suddaby on Friday, Sept. 18, 2015 at 11 a.m. in Syracuse, New York. A trial is scheduled for co-defendant Nicole Vaisey on June 22, 2015 before Judge Suddaby in Syracuse, New York.
Howells pleaded guilty to conspiracy to produce child pornography, producing child pornography (Counts 2-10) and possessing child pornography. The conspiracy count (Count 1) and 15 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 pleaded 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 16 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 Aug. 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 five 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,” said U.S. Attorney 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 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 FBI with substantial assistance from the New York State Police. It is being prosecuted by Assistant U.S. 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 the U.S. 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.
New Jersey Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
NEWARK, N.J. – With summer approaching, parents are making arrangements to send their children to camps. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office announced today that it has sent the attached flyer to hundreds of summer camps located within the District of New Jersey, reminding them of their obligations under the Americans with Disabilities Act (ADA).
“A disability is no reason to deny a child a chance to enjoy the friendships and learning experiences available at summer camps,” U.S. Attorney Fishman said. “Reasonable accommodations are not an option; they are a requirement under the law.”
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
Additional information about the ADA is available at www.ada.gov and http://www.justice.gov/usao-nj/civil-rights-enforcement.
camp_ada_flyer.pdf (58.21 KB)
New Iberia man sentenced to 9 years in prison for possessing child pornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a New Iberia man was sentenced Thursday to 108 months in prison on charges that he downloaded child pornography onto his computer.
Jason Daniel Scott, 32, of New Iberia, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of possession of child pornography. He was also sentenced to a lifetime of supervised release and must register as a sex offender. According to evidence presented at the January 29, 2015 guilty plea, agents detected child pornography being downloaded from an internet file sharing service in October of 2010 to a residence in Lafayette Parish, which is where Scott was living at the time. The home was searched on October 20, 2010, and a computer was seized. Once the computer’s hard drive was examined, agents found child pornography that was downloaded from the internet.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
New Castle Man Sentenced to 27+ Years in Federal Prison for Producing Videos Showing Abuse of GirlRead the Press Release
PITTSBURGH - A former resident of New Castle, Pa., was sentenced in federal court to 327 months imprisonment, followed by lifetime supervised release, on his conviction of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Donald A. Miller, 43, of New Castle, Pa.
According to information presented to the court at the Oct. 22, 2014, guilty plea hearing and at the sentencing, Miller, on Dec. 22, 2013, used and coerced an eight-year-old victim to engage in sexually explicit conduct for the purpose of producing videos depicting her sexual exploitation. The child victim was identified and Miller arrested after the sexual videos depicting her abuse were discovered on a used Samsung Galaxy Tablet that Miller sold to a New Castle resident at a flea market in Ohio the day before Christmas 2013. The resident immediately notified the New Castle Police Department when she happened upon the videos depicting Miller and the child stored in the Galaxy’s memory. The witness was able to identify Miller as the perpetrator and the individual who sold her the electronic device.
Miller is scheduled to be sentenced in Lawrence County, Pennsylvania, during the week of May 18, 2015, for child rape and other offenses related to the sexual contact with the eight-year-old victim.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the New Castle Police Department for the investigation leading to the successful prosecution of Miller.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.justice.gov/psc.
Member of ‘Dirty Block’ Atlantic City, New Jersey, Gang Sentenced to 20 Years in Prison on Drug Conspiracy and Weapons ChargesRead the Press Release
CAMDEN, N.J. – A member of a criminal street gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City, New Jersey, was sentenced today to 240 months in prison on drug conspiracy and weapons charges, U.S. Attorney Paul J. Fishman announced.
Terry Davis, 26, of Atlantic City – was convicted in January 2015 of conspiracy to distribute one kilogram or more of heroin, possession of firearms in furtherance of a drug trafficking crime, brandishing and discharging firearms in furtherance of the conspiracy and being a felon in possession of a weapon following a six-week trial before U.S. District Judge Joseph E. Irenas in Camden federal court. The jury deliberated approximately five hours before returning the verdicts.
According to documents filed in this case and the evidence presented at trial:
Davis is a member of a gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which operated in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes Village Public Housing Complex, Renaissance Plaza and Schoolhouse Apartments. He participated in a violent street-level drug trafficking organization that controlled heroin sales through the possession of dozens of firearms and the use of gun violence, including at least one homicide and several non-fatal, drug-related shootings.
In addition to the prison term, Judge Irenas sentenced Davis to 10 years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s convictions.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Burgos of the Atlantic County Prosecutor’s Office.
The charges and allegations against the other defendants arrested in this investigation are merely accusations and the defendants are considered innocent unless and until proven guilty.
Defense Counsel: Gina Capuano Esq., Philadelphia
Man Pleads Guilty to Possession of Firearm by Illegal AlienRead the Press Release
St. Thomas, USVI – Eilin Montano, 35, pleaded guilty today in District Court on St. Thomas to Possession of a Firearm by an Illegal Alien, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Montano admitted that he is in the United States unlawfully and without status, and that on November 17, 2014, he discharged a firearm with an obliterated serial number in a residential area while involved in a domestic disturbance.
Possession of a Firearm by an Illegal Alien carries a maximum sentence of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for August 30, 2015.
This case was investigated by the Department of Homeland Security Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney David White.
Madison County Man Pleads Guilty to Robbing Pontoon Beach Gas StationRead the Press Release
Shawn Bequette, 23, a resident of Madison County, Illinois, pled guilty on May 7, 2015, to Hobbs Act Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Bequette was ordered held without bond pending a sentencing hearing scheduled for September 24, 2015, before the Honorable Michael J. Reagan, Chief Judge of the United States District Court for the Southern District of Illinois.
The investigation revealed that in the early morning hours of October 6, 2014, Bequette robbed a gas station in Pontoon Beach, Illinois. Witnesses to the crime chased Bequette as he left the gas station, subdued him, and called the police. The charges in this case include a maximum term of 20 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
The case was investigated by the Federal Bureau of Investigation and the Pontoon Beach Police Department, and is being prosecuted by Special Assistant United States Attorney Shane B. Kelbley.
Lynn Tax Preparer Arrested on Tax Fraud ChargesRead the Press Release
BOSTON – A Lynn tax preparer was arrested today for filing fraudulent personal federal tax returns and attempting to obstruct the Internal Revenue Service.
Arismendy Ramos, a/k/a Arismendi Ramos, a/k/a Aris Almonte, was charged in a criminal complaint with four counts of filing false tax returns and two counts of obstructing the IRS. U.S. District Court Magistrate Judge Marianne B. Bowler ordered Ramos detained pending a further hearing.
According to allegations in the complaint, Ramos owned and operated Almonte Tax, a tax preparation service in Lynn, and prepared tax returns for numerous clients. Ramos allegedly filed false forms with the IRS claiming that he paid the clients to work for him when, in fact, they had never been employed by him. Ramos then allegedly claimed the bogus wages as business expenses on his own personal tax returns, thereby illegally reducing his own tax liabilities. The obstruction charges allege that Ramos instructed two clients that they should lie if they were asked about the false wages.
The charging statutes provide for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 for each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and a number of sentencing factors.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lubbock County Man Sentenced to 108 Months in Federal Prison for Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — A 27-year-old Shallowater, Texas, man, Michael Wayne Brown, was sentenced today by U.S. District Judge Sam R. Cummings to 108 months in federal prison and a 20-year term of supervised release, following his guilty plea in December 2014 to one count of possession of prepubescent child pornography. Acting U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
According to documents filed in the case, Brown owned various telephones and electronic devices, and he stored pornographic images on some of them, including an 8GB Sandisk memory card. On that memory card, Brown stored numerous images of child pornography, some of which involved prepubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department’s Internet Crimes Against Children (ICAC) Task Force and the FBI investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Kinmundy Man Pleads Guilty to Possession of A Firearm by A Convicted FelonRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that James Conrad Riley, 44, of Kinmundy, Illinois, pled guilty on May 6, 2015, to an Indictment charging him with Possession of a Firearm by a Convicted Felon. The prior felony alleged in the Indictment was Retail Theft, for which Riley was convicted in Ogle County, Illinois, on or about October 13, 2004.
The charges relate to an incident that occurred in April, 2009, when Riley sold four firearms to an individual in Mt. Vernon, Illinois. The transaction did not come to the attention of the Government until late 2013; Riley was charged in March, 2014, shortly before his anticipated release from a halfway house, following incarceration on separate federal charges for Sale of Stolen Motor Vehicles, for which he had been sentenced on November 7, 2011.
Riley also has prior convictions for Burglary of Vehicle, Aggravated Battery, Unlawful Possession of a Motor Vehicle, Driving While License Revoked, and Criminal Trespass.
Sentencing has been set for September 16, 2015, at 10 a.m. in federal district court in East St. Louis. The maximum penalties that can be imposed are ten years in prison, followed by 3 years’ supervised release, a $100 special assessment, and a fine of $250,000.
The case was investigated by members of the Illinois Secretary of State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Justice Department Settles Immigration-Related Discrimination Claim Against the Data Entry Company Inc.Read the Press Release
The Justice Department announced today that it reached a settlement with The Data Entry Company Inc., a government subcontractor headquartered in Bethesda, Maryland. The settlement resolves a charge filed with the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), claiming that the company engaged in hiring discrimination in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that on two occasions The Data Entry Company Inc., removed a U.S. citizen from its pool of applicants because she is a dual citizen, in violation of the INA. The INA’s anti-discrimination provision prohibits employers from engaging in hiring discrimination on the basis of citizenship.
“The Justice Department is committed to identifying and tearing down illegal barriers that prevent authorized workers from working,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The department commends The Data Entry Company Inc., for working to rectify this situation in a cooperative manner.”
Under the settlement agreement, The Data Entry Company Inc. will pay $7,007.75 in back pay to the charging party and will also pay a civil penalty to the United States. The company also will undergo training on the anti-discrimination provision of the INA.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. Trial Attorney Silvia Dominguez-Reese investigated this charge.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Justice Department Opens Pattern or Practice Investigation into the Baltimore Police DepartmentRead the Press Release
Attorney General Loretta E. Lynch announced today that the Justice Department has opened a civil pattern or practice investigation into Baltimore Police Department (BPD), pursuant to the Violent Crime Control and Law Enforcement Act of 1994. The department’s investigation of BPD will seek to determine whether there are systemic violations of the Constitution or federal law by officers of BPD. The investigation will focus on BPD’s use of force, including deadly force, and its stops, searches and arrests, as well as whether there is a pattern or practice of discriminatory policing.
While the pattern or practice investigation is ongoing, the department’s Office of Community Oriented Policing will continue to work with BPD and the collaborative reform process that was started in October 2014 will convert to the provision of technical assistance to the BPD allowing for changes and improvements even as the pattern or practice investigation is underway.
“Our goal is to work with the community, public officials and law enforcement alike to create a stronger, better Baltimore,” said Attorney General Loretta Lynch. “The Department of Justice’s Civil Rights Division has conducted dozens of these pattern or practice investigations, and we have seen from our work in jurisdictions across the country that communities that have gone through this process are experiencing improved policing practices and increased trust between the police and the community. In fact, I encourage other cities to study our past recommendations and see whether they can be applied in their own communities. Ultimately, this process is meant to ensure that officers are being provided with the tools they need – including training, policy guidance and equipment – to be more effective, to partner with civilians and to strengthen public safety.”
During the course of the investigation, the Justice Department will consider all relevant information, particularly the efforts that BPD has undertaken to ensure compliance with federal law, and the experiences and views of the community. The Justice Department has taken similar steps involving a variety of state and local law enforcement agencies, both large and small, in jurisdictions throughout the United States. These investigations have in many instances resulted in comprehensive, court-overseen agreements to fundamentally change the law enforcement agency’s police practices.
In addition to gathering information directly from community members, pattern or practice investigations involve interviewing police officers and local officials; gathering information from other criminal justice stake holders, such as public defenders and prosecutors; observing officer activities through ride-alongs and other means; and reviewing documents and specific incidents that are relevant to our investigation.
Pattern or practice investigations of police departments do not assess individual cases for potential criminal violations. The investigation into BPD is separate from the department’s concurrent criminal civil rights investigation related to the death of Freddie Gray.
This matter is being investigated by attorneys and staff from the Justice Department’s Civil Rights Division. They will be assisted by experienced law enforcement experts. The department welcomes the views of anyone wishing to provide relevant information. Individuals who wish to share information related to the investigation are encouraged to contact the department at 1-844-401-3733 or via email at [email protected].
Police Reform and Accountability Fact Sheet
How P&P Investigations Work
CRI Fact Sheet
Jefferson County Man Indicted on Child Exploitation ChargesRead the Press Release
BEAUMONT, Texas — A 57-year-old Beaumont, Texas man has been indicted on child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Gary Allen George was indicted by a federal grand jury on May 6, 2015 and charged with receiving child pornography, distributing child pornography and possession of child pornography.
According to the indictment, an investigation revealed that from Aug. 6, 2014 to Sep. 18, 2014, George is alleged to have received, distributed and possessed files containing images or videos of child pornography on his computer. At least one of the images involved a minor under the age of 12-years-old engaging in sexually explicit conduct.
George faces a minimum of 5 years, and up to 20 years, in federal prison if convicted.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
This case is being investigated by Homeland Security Investigations (HSI) and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Immigrant Sentenced to 44 Months in Prison for Illegal ReentryRead the Press Release
St. Thomas, USVI – On Thursday May 7, 2015, District Court Judge Curtis V. Gomez sentenced Terrance L. Hanley a/k/a Robert A. Jenkins, 45, a national of St. Kitts, to 44 months in prison and three years of supervised release for illegal reentry into the United States, United States Attorney Ronald W. Sharpe announced.
Hanley was arrested on November 16, 2014 by agents of the Department of Homeland Security Homeland Security Investigations at the Cyril E. King Airport on St. Thomas after he attempted to board a flight to the mainland United States using the name Robert A. Jenkins. On January 15, 2015, he pleaded guilty to illegal reentry into the United States.
Court records show that in December 2003, Hanley was arrested in New York for conspiracy to import cocaine and heroin, and was deported to St. Kitts in June 2014. He has not obtained permission to reenter the United States.
This case was investigated by the Department of Homeland Security Homeland Security Investigations and was prosecuted by Assistant United States Attorney Everard E. Potter.
Houston Woman Indicted for PerjuryRead the Press Release
HOUSTON – Federal charges have been filed against Amy Fisher, 36, of Houston, alleging she committed perjury during a civil deposition and trial, announced U.S. Attorney Kenneth Magidson.
The indictment was returned under seal April 29, 2015, and unsealed yesterday upon her arrest. She is expected to make her initial appearance before U.S. Magistrate Judge Frances Stacey at 10:00 a.m. today.
“The integrity of the judicial system requires truthfulness from all witnesses in legal matters in order for justice to prevail,” said Magidson. “When perjury allegations are referred to us, we work closely with investigators to determine whether to seek federal criminal charges. We do not take allegations of perjury lightly in any proceeding - civil or criminal - and will pursue those that attempt to undermine the reliability of our legal processes.”
According to the allegations in the indictment, Fisher committed perjury on Nov. 17, 2014, during her deposition and trial testimony related to the civil trial of Lipinski et. al. v. Meritage Co., Civil Action No. H-10-CV-605.
The Meritage case was a Fair Labor Standards Act (FLSA) case that went to trial in Houston in November 2014. One of the primary issues during trial was whether or not Meritage Corporation had properly classified its sales people as “outside salesmen” who are exempt from the FLSA’s overtime and a minimum wage requirements. Plaintiffs, who were all employed as sales associates for Meritage Corporation, argued the company misclassified them as “outside salesmen” to avoid paying minimum wage and overtime pay.
One of the key issues during the civil trial was determining how much time Meritage sales associates spent in sales activity outside of the sales office. Fisher was the only Meritage sales associate who testified on behalf of the corporation. The deposition and trial, which both occurred on Nov. 17, 2014, focused on what activities Fisher performed outside of her sales office.
The indictment alleges that during those proceedings, Fisher was questioned regarding her sales activity that occurred on Nov. 16, 2014, the preceding work day. Fisher is charged with committing perjury by falsely testifying as to her specific actions on that day.
If convicted, Fisher faces up to five years in federal prison and a possible $250,000 fine.
This case is being investigated by the FBI. Assistant U.S. Attorney Julie Searle is prosecuting the case.
Gray, Louisiana Man Indicted for Receipt and Distribution of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARION VEAL, age 20, of Gray, Louisiana, was indicted today for crimes involving the sexual exploitation of children.
VEAL was indicted as a result of a child exploitation investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) and the Louisiana Attorney General’s Office, High Tech Crime Unit (“LAGO”). According to court records, on January 7, 2015, HSI and LAGO agents executed a search warrant at VEAL’s residence after determining he received and distributed images depicting the sexual victimization of children. On March 3, 2015, VEAL was taken into federal custody pursuant to a federal criminal complaint.
If convicted, VEAL faces a mandatory minimum penalty of five years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine per count. In addition, VEAL will be required to register as a sex offender.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney praised the work of the U.S. Department of Homeland Security-HSI and the Louisiana Attorney General’s Office, High Tech Crime Unit in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Darion Veal Indictment.pdf (176.78 KB)
Fugitive Chinese National Sentenced to Prison for Illegal Firearms ExportsRead the Press Release
A Chinese citizen illegally in the United States was sentenced today in U.S. District Court in Seattle to three years in prison for smuggling firearms, firearms parts and ammunition out of the United States without the proper export control licenses, announced U.S. Attorney Annette L. Hayes. YONG GUO, 45, pleaded guilty in February 2015, admitting that between August 2012 and June 2014, he illegally purchased firearms, firearms parts and ammunition and sold and shipped them to people in Hong Kong and China. GUO shipped about 80 packages using false names and addresses from various post offices in King and Pierce Counties. At sentencing Chief Judge Marsha J. Pechman said “This was a particularly egregious offense… It was not a single act but an ongoing, calculating plan to engage in criminal activity.”
“Illicit firearms trafficking fuels crime and conflicts around the world,” said United States Attorney Annette L. Hayes. “I commend the work of Homeland Security Investigations, with the cooperation of our international partners, to uncover this kind of wrongdoing and ensure dangerous weapons do not end up in the wrong hands.”
In two instances described in the plea agreement, in May 2014, GUO shipped ten .22 caliber rifle bolt assemblies to a contact in Hong Kong. A few weeks later, GUO shipped numerous other parts for .22 caliber rifles. Both packages had been labeled to contain fictitious items such as “steel blocks,” “toy parts,” and a “canvas bag.” Both packages were seized by law enforcement.
“Exporting restricted items, such firearms components and ammunition, without the permission of the U.S. government, is a crime.” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “Mr. Guo knew this and made attempts to evade detection by falsifying export documents, nonetheless his scheme was detected by law enforcement. Stemming the illicit export of firearms, arms components and other sensitive military technology is a high priority for HSI.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with the assistance of the U.S. Postal Inspection Service, U.S. Customs and Border Protection’s National Targeting Center, the Hong Kong Police Force, and the Hong Kong Customs and Excise Department.
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Ft. Wright Man Sentenced to 106 Months for Drug and Weapons OffensesRead the Press Release
COVINGTON – A Ft. Wright, Ky., man has been sentenced to 106 months in federal prison for heroin, cocaine and weapons offenses.
On Tuesday, U.S. District Judge David L. Bunning sentenced 27 year-old Michael Daniels, for possession with intent to distribute heroin and crack cocaine and possessing a firearm in furtherance of a drug trafficking crime. Under federal law, Daniels must serve at least 85 percent of his prison sentence; and following his release, he will be under the supervision of the U.S. Probation Office for eight years.
Daniels pleaded guilty on December 1, 2014 and admitted that he had been selling heroin and crack cocaine, while staying at a hotel in Ft. Wright, in June 2014. Agents investigated a complaint about drug activity in Daniels’ hotel room and located 36 grams of heroin, 22 grams of crack cocaine, money, a digital scale, and a loaded 9mm handgun.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, and Daniel Kreinest, Chief of the Ft. Wright Police Department, jointly made the announcement today.
The investigation was conducted by the FBI’s Safe Streets Task Force and the Ft. Wright Police Department. Assistant U.S. Attorney Tony Bracke prosecuted this case on behalf of the federal government.
Ft. Thompson Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Ft. Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on May 5, 2015, by U.S. District Judge Roberto A. Lange.
Wylie Wind, age 28, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wind was indicted by a federal grand jury on February 11, 2015, and pled guilty to Failure to Register as a Sex Offender on March 10, 2015.
The conviction arose from Wind’s failure to register and update his sex offender registration between December 15, 2014, and February 6, 2015. Wind was required to register as a sex offender due to a prior federal conviction. Wind knowingly failed to register and update his address as required by federal law.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Meghan Dilges.
Wind was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Former West Hartford Attorney Sentenced to Prison for Role in Mortgage Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GABRIEL SERRANO, 49, of West Hartford, was sentenced today by Judge Alvin W. Thompson to 12 months and one day of imprisonment, followed five years of supervised release, for his role in an extensive mortgage fraud scheme.
SERRANO, a former attorney, was a partner at the law firm of Serrano & Serrano, LLC in West Hartford until December 2013 when he was suspended from the bar.
According to court documents and statements made in court, from approximately June 2005 to at least November 2008, SERRANO was involved in a mortgage fraud conspiracy with co-defendants Filippos Milios, Malgorzata Karas-Golka, Carmelinda Marotta, Daniel Monteiro, and others that involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms for the purchase of over 50 houses in Hartford, New Haven, and Middlesex counties. SERRANO served as the closing attorney on at least two dozen fraudulent transactions.
SERRANO often served as the closing attorney when Milios purchased properties with financing from private lenders. Later, when Milios sold many of the properties to a buyer, SERRANO usually represented the buyer. In connection with many of the transactions where Milios sold properties, SERRANO knew that Milios, and not the borrower, had provided the required down payment checks on behalf of the borrower. SERRANO often released the seller’s proceeds checks to Milios before receiving a down payment, and he knew that Milios would use the seller’s proceeds checks to obtain the down payment check for the same transaction. In this way, contrary to what SERRANO led the mortgage lenders to believe, the borrowers were purchasing the properties with no down payment funds of their own.
In addition, some of the borrowers purchased multiple properties from Milios and represented to the mortgage lenders that they were purchasing each of the properties as primary residences. SERRANO knew that the borrowers did not intend to use the properties as primary residences.
In the course of many of the fraudulent closings involving Milios’s sale to borrowers, SERRANO received mortgage proceeds from banks and mortgage lenders. SERRANO would frequently disburse some of those proceeds to private lenders who had loaned Milios money to purchase those properties.
The loss attributable to SERRANO’s conduct is this scheme is approximately $3.5 million. The court will hold a subsequent hearing to determine restitution.
On August 6, 2013, SERRANO pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.
Milios, Karas-Golka, Marotta and Monteiro also pleaded guilty and were sentenced to prison terms of 97 months, 30 months, 30 months and 13 months, respectively.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the U.S. Postal Inspection Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
Former U.S. Nuclear Regulatory Commission Employee Charged with Attempted Spear-Phishing Cyber-Attack on Department of Energy ComputersRead the Press Release
Defendant Arrested in the Philippines
An indictment has been unsealed charging Charles Harvey Eccleston, a former employee of the U.S. Department of Energy and the U.S. Nuclear Regulatory Commission (NRC), in connection with an attempted email “spear-phishing” attack in January 2015, targeting dozens of Department of Energy employee e-mail accounts.
The indictment was announced today by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office.
The indictment was unsealed, along with an earlier-filed complaint and affidavit, following Eccleston’s first appearance this afternoon in the U.S. District Court of the District of Columbia. The court ordered that he remain detained pending a hearing set for May 20, 2015.
According to the affidavit, the goal of the attack was to cause damage to the computer network of the Department of Energy through a computer virus that Eccleston believed was being delivered to particular department employees through emails, and to extract sensitive, nuclear weapons-related government information that Eccleston believed would be collected by a foreign country.
An email spear-phishing attack involves crafting a convincing email for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus. Attackers may gather personal information about their target to increase their probability of success.
“Combating cyber-based threats to our national assets is one of our highest priorities,” said Assistant Attorney General Carlin. “As alleged in the indictment, Eccleston sought to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent to allow foreign nations to gain access to that material. We must continue to evolve our efforts and capabilities to confront cyber enabled threats and aggressively detect, disrupt and deter them. We are grateful for the tireless efforts of law enforcement in this case.”
“This former federal employee is charged with trying to launch a cyber-attack to steal sensitive information from the Department of Energy,” said Acting U.S. Attorney Cohen. “Thanks to an innovative operation by the FBI, no malicious code was actually transmitted to government computers. This prosecution demonstrates federal law enforcement’s vigorous efforts to neutralize cyber threats that put consumers, our economy, and our national security at risk.”
“Computer intrusions are among the greatest cyber threats to our national security,” said Assistant Director in Charge McCabe. “Cyber actors have become increasingly adept at exploiting our computer networks in order to exfiltrate our nation’s secrets and valuable research. As threats to the U.S. government become increasingly complex, the FBI will continue to evolve in order to counter these threats.”
Eccleston, 62, a U.S. citizen who had been living in Davos City in the Philippines since 2011, was terminated from his employment at the U.S. Nuclear Regulatory Commission in 2010. The attack targeted computers at the Department of Energy. Eccleston was detained by Philippine authorities in Manila on March 27, 2015, and deported to the United States to face U.S. criminal charges.
According to the affidavit, Eccleston initially came to the attention of the FBI after he entered a foreign embassy and offered to provide classified information, which he claimed had been taken from the U.S. government. Thereafter, Eccleston met with FBI undercover employees who were posing as representatives of the foreign country, and in exchange for a promised future payment, offered to design and send spear-phishing e-mails that could be used to damage the computer systems used by his former employer and to extract sensitive information from them.
The affidavit alleges that Eccleston sent those emails to over 80 Department of Energy computers in January 2015. The FBI was able to ensure that no computer virus or malicious code was actually transmitted to the government computers.
The indictment charges Eccleston with a total of four felony offenses. These include three counts of crimes involving unauthorized access of computers. Each of the crimes, as charged, is a felony punishable by a fine or imprisonment for various terms, the longest of which is ten years. The indictment also charges Eccleston with wire fraud. Such a violation is a felony punishable by a fine or imprisonment for not more than 20 years, or both. Eccleston is charged with attempted violations of the statutes because the FBI ensured that no computer virus was actually embedded in the spear-phishing emails.
Charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The investigation was conducted by the FBI’s Washington Field Office with assistance from the Nuclear Regulatory Commission and Department of Energy. The prosecution is being handled by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia. Trial Attorneys Scott Ferber and Julie A. Edelstein of the Justice Department’s National Security Division assisted in this matter.
The Department of Justice expressed appreciation to the Government of the Philippines for its assistance.
Eccleston Indictment
Former U.S. Nuclear Regulatory Commission Employee Charged with Attempted Spear-Phishing Cyber-Attack on Department of Energy ComputersRead the Press Release
WASHINGTON – An indictment has been unsealed charging Charles Harvey Eccleston, a former employee of the U.S. Department of Energy and the U.S. Nuclear Regulatory Commission (NRC), in connection with an attempted e-mail “spear-phishing” attack in January 2015, targeting dozens of Department of Energy employee e-mail accounts.
The indictment was announced today by Acting U.S. Attorney Vincent H. Cohen, Jr. of the District of Columbia; Assistant Attorney General for National Security John P. Carlin, and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office.
The indictment was unsealed, along with an earlier-filed complaint and affidavit, following Eccleston’s first appearance this afternoon in the U.S. District Court for the District of Columbia. The Court ordered that he remain detained pending a hearing set for May 20, 2015.
According to the affidavit, the goal of the attack was to cause damage to the computer network of the Department of Energy through a computer virus that Eccleston believed was being delivered to particular department employees through e-mails, and to extract sensitive, nuclear weapons-related government information that Eccleston believed would be collected by a foreign country.
An e-mail spear-phishing attack involves crafting a convincing e-mail for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus. Attackers may gather personal information about their target to increase their probability of success.
“This former federal employee is charged with trying to launch a cyber-attack to steal sensitive information from the Department of Energy,” said Acting U.S. Attorney Cohen. “Thanks to an innovative operation by the FBI, no malicious code was actually transmitted to government computers. This prosecution demonstrates federal law enforcement’s vigorous efforts to neutralize cyber threats that put consumers, our economy, and our national security at risk.”
“Combating cyber-based threats to our national assets is one of our highest priorities,” said Assistant Attorney General Carlin. “As alleged in the indictment, Eccleston sought to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent to allow foreign nations to gain access to that material. We must continue to evolve our efforts and capabilities to confront cyber enabled threats and aggressively detect, disrupt and deter them. We are grateful for the tireless efforts of law enforcement in this case.”
“Computer intrusions are among the greatest cyber threats to our national security,” said Assistant Director in Charge McCabe. “Cyber actors have become increasingly adept at exploiting our computer networks in order to exfiltrate our nation’s secrets and valuable research. As threats to the U.S. government become increasingly complex, the FBI will continue to evolve in order to counter these threats.”
Eccleston, 62, a U.S. citizen who had been living in Davao City in the Philippines since 2011, was terminated from his employment at the U.S. Nuclear Regulatory Commission in 2010. The attack targeted computers at the Department of Energy. Eccleston was detained by Philippine authorities in Manila on March 27, 2015, and deported to the United States to face U.S. criminal charges.
According to the affidavit, Eccleston initially came to the attention of the FBI after he entered a foreign embassy and offered to provide classified information, which he claimed had been taken from the U.S. government. Thereafter, Eccleston met with FBI undercover employees who were posing as representatives of the foreign country, and in exchange for a promised future payment, offered to design and send spear-phishing e-mails that could be used to damage the computer systems used by his former employer and to extract sensitive information from them.
The affidavit alleges that Eccleston sent those emails to over 80 Department of Energy computers in January 2015. The FBI was able to ensure that no computer virus or malicious code was actually transmitted to the government computers.
The indictment charges Eccleston with a total of four felony offenses. These include three counts of crimes involving unauthorized access of computers. Each of the crimes, as charged, is a felony punishable by a fine or imprisonment for various terms, the longest of which is ten years. The indictment also charges Eccleston with wire fraud. Such a violation is a felony punishable by a fine or imprisonment for not more than 20 years, or both. Eccleston is charged with attempted violations of the statutes because the FBI ensured that no computer virus was actually embedded in the spear-phishing emails.
Charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The investigation was conducted by the FBI’s Washington Field Office with assistance from the Nuclear Regulatory Commission and Department of Energy. The prosecution is being handled by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia. Trial Attorneys Scott Ferber and Julie A. Edelstein of the Justice Department’s National Security Division assisted in this matter.
The Department of Justice expressed appreciation to the Government of the Philippines for its assistance.
Former PPG Employee Charged with Theft of Trade SecretsRead the Press Release
A former PPG Industries, Inc. employee has been arrested and charged in federal court in Pittsburgh with theft of trade secrets, U.S. Attorney David J. Hickton for the Western District of Pennsylvania announced today.
The criminal complaint names Thomas Rukavina, 62, of Plum Borough, Pennsylvania.
“Theft, whether hands-on or through cyber intrusions, diminishes our competitive edge in technology and product development and deprives our citizens of economic opportunities,” stated U.S. Attorney Hickton. “We will aggressively pursue intellectual property theft regardless of who commits the crime.”
The criminal complaint alleges that Rukavina retired from PPG in July of 2012. As early as June 2014, Rukavina passed proprietary and confidential information to J.T.M.G. Co., a glass company based in Jiangsu, China, that specializes in automotive and other specialty glass. The trade secret information he passed included PPG’s manufacturing specifications for windows, which are made of synthetic plastics and used for high-speed transportation, including airplanes.
The defendant was arrested yesterday and made an initial appearance today before federal magistrate Judge Cynthia Reed Eddy. He was ordered detained pending a formal detention hearing scheduled for Monday, May 11, 2015.
The law provides for a maximum total sentence of up to ten years in prison, a fine of $250,000, or both. Under the federal sentencing guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Assistant U.S. Attorney James T. Kitchen is prosecuting this case. The Federal Bureau of Investigation conducted the investigation that led to the complaint charging Rukavina.
Former PPG Employee Charged with Theft of Trade SecretsRead the Press Release
PITTSBURGH – A former PPG Industries, Inc., employee has been arrested and charged in federal court in Pittsburgh with theft of trade secrets, United States Attorney David J. Hickton announced today.
The criminal complaint names Thomas Rukavina, 62, of Plum Borough, Penn.
“Theft, whether hands-on or through cyber intrusions, diminishes our competitive edge in technology and product development, and deprives our citizens of economic opportunities,” stated U.S. Attorney Hickton. “We will aggressively pursue intellectual property theft regardless of who commits the crime.”
The criminal complaint alleges that Rukavina retired from PPG in July of 2012. As early as June 2014, Rukavina passed proprietary and confidential information to J.T.M.G. Co., a glass company based in Jiangsu, China, that specializes in automotive and other specialty glass. The trade secret information he passed included PPG’s manufacturing specifications for windows, which are made of synthetic plastics and used for high-speed transportation, including airplanes.
The defendant was arrested yesterday and made an initial appearance today before Federal Magistrate Judge Cynthia Reed Eddy. He was ordered detained pending a formal detention hearing scheduled for Monday, May 11, 2015.
The law provides for a maximum total sentence of up to 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Assistant United States Attorney James T. Kitchen is prosecuting this case. The Federal Bureau of Investigation conducted the investigation that led to the complaint charging Rukavina.
Former Officer Sentenced in Absentia to Federal Prison in Connection with Fraudulent U.S. Army Contracts SchemeRead the Press Release
Though she failed to appear in federal court in San Antonio today, 52-year-old former U.S. Army officer Heidi Webster of Manhattan, KS, was sentenced to six years in federal prison for defrauding the United States in connection with U.S. Army contracts worth millions of dollars for medical equipment and personnel announced Acting United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, Chief United States District Judge Fred Biery ordered that Webster pay $613,828 restitution and be placed on supervised release for a period of three years after completing her prison term. A warrant has been issued for Webster’s arrest.
On January 9, 2014, Webster and her co-defendant, Lawrence Fenti, a former non-commissioned officer in charge of Base Realignment and Closure issues for Brooks Army Medical Center (BAMC) radiology, pleaded guilty to one count of conspiracy and one count of bribery. Criminal acts involved in the conspiracy included intent to defraud the U.S., violate the Government conflict of interest law; commit bribery; commit wire fraud; make false claims against the United States; make false statements to federal authorities; and, commit money laundering.
By pleading guilty, the defendants admitted to conspiring together since 2007 to fraudulently secure multiple Army contracts and sub-contracts for radiology equipment and services by using Fenti’s position of influence, taking advantage of a prime contractor’s non-competitive bidding status, making false statements and fraudulent claims, as well as bribing Army personnel and Army contractors. Those contracts included a $2 million BAMC magnetic resonance imaging (MRI) contract in June 2008, a $4.9 million BAMC MRI contract in July 2008, a $633,406.69 BAMC staffing contract in September 2008, and a $336,600 MRI contract in September 2009 for Womack Army Medical Center at Fort Bragg, NC. Webster also admitted to paying Fenti thousands of dollars for his role in the overall scheme.
In September 2014, Fenti was sentenced to four years in federal prison followed by three years of supervised release for his role in the scheme.
A third defendant in this case, 43-year-old John Walter Hoffman, owner/operator of Hoffman Surgical Devices, Inc. in San Antonio, is awaiting trial on charges of conspiracy to commit wire fraud, money laundering, wire fraud and making false statements to U.S. Army authorities. Jury selection is scheduled for June 8, 2015.
This investigation was conducted by the U.S. Army Criminal Investigations Division (Army CID), the Internal Revenue Service--Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
Former Louis Berger Group Inc. Chairman, CEO, and President Sentenced to One Year of Home Confinement, Fined $4.5 Million, for 20-Year Conspiracy to Defraud Federal GovernmentRead the Press Release
Scheme Involved International Environmental Consulting Contracts, Including Reconstruction Contracts in Afghanistan and Iraq
TRENTON, N.J. – The former president, chief executive officer, and chairman of the board of a New Jersey-based international engineering consulting company was sentenced today to 12 months of home confinement and fined $4.5 million for conspiring to defraud the U.S. Agency for International Development (USAID) with respect to billions of dollars in contracts over a nearly 20-year period, U.S. Attorney Paul J. Fishman announced.
Derish Wolff, 79, of Bernardsville, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to a superseding information charging conspiracy to defraud the government with respect to claims. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Wolff, the former president and CEO of Morristown, New Jersey-based Louis Berger Group Inc. (LBG), and the former chairman of LBG’s parent company, Berger Group Holdings Inc. (BGH), led a conspiracy to defraud USAID by billing the agency on so-called “cost-reimbursable” contracts – including hundreds of millions of dollars of contracts for reconstructive work in Iraq and Afghanistan – for LBG’s overhead and other indirect costs at falsely inflated rates.
USAID, an independent federal government agency that advances U.S. foreign policy by supporting economic growth, agriculture, trade, global health, democracy, and humanitarian assistance in developing countries, including countries destabilized by violent conflict, awarded LBG hundreds of millions of dollars in reconstruction contracts in Iraq and Afghanistan as well as in other nations. LBG calculated certain overhead rates and charged USAID and other federal agencies these rates on cost-reimbursable contracts, which enabled LBG to pass on their overhead costs to the agency in general proportion to how much labor LBG devoted to the government contracts.
From at least 1990 through July 2009, LBG, through Wolff and other former executives, intentionally overbilled USAID in connection with these cost-reimbursable contracts. The scheme to defraud the government was carried out by numerous LBG employees at the direction of Wolff.
Wolff targeted a particular overhead rate, irrespective of what the actual rate was, and ordered his subordinates to achieve that target rate through a variety of fraudulent means. From at least as early as 1990 through 2000, Wolff ordered LBG’s assistant controller to instruct the accounting department to pad its time sheets with hours ostensibly devoted to federal government projects when it had not actually worked on such projects.
At an LBG annual meeting in September 2001, Salvatore Pepe, who was then the controller and eventually became chief financial officer (CFO), presented a USAID overhead rate that was significantly below Wolff’s target. In response, Wolff denounced Pepe, called him an “assassin” of the overhead rate and ordered him to target a rate above 140 percent, meaning that for every dollar of labor devoted to a USAID contract, LBG would receive an additional $1.40 in overhead expenses supposedly incurred by LBG.
In response, Pepe and former controller Precy Pellettieri, with Wolff’s supervision, hatched a fraudulent scheme from 2003 through 2007 to systematically reclassify the work hours of LBG’s corporate employees, including high-ranking executives and employees in the general accounting division, to make it appear as if those employees worked on federal projects when they did not. At his plea hearing on Dec. 12, 2014, Wolff admitted that Pepe and Pellettieri, at Wolff’s direction, reclassified these hours without the employees’ knowledge and without investigating whether the employees had correctly accounted for their time, and at times did so over an employee’s objection.
In addition to padding employees’ work hours with fake hours supposedly devoted to USAID work, Wolff instructed his subordinates to charge all commonly shared overhead expenses, such as rent, at LBG’s Washington, D.C., office to an account created to capture USAID-related expenses, even though the D.C. office supported many projects unrelated to USAID or other federal government agencies.
On Nov. 5, 2010, Pepe and Pellettieri both pleaded guilty before then-U.S. Magistrate Judge Patty Shwartz to separate informations charging them with conspiring to defraud the government with respect to claims. Also on that date, LBG resolved criminal and civil fraud charges related to Wolff’s and others’ conduct. The components of the settlement included:
• a Deferred Prosecution Agreement (DPA), pursuant to which the U.S. Attorney’s Office in New Jersey suspended prosecution of a criminal complaint charging LBG with a violation of the Major Fraud Statute; in exchange, LBG agreed, among other things, to pay $18.7 million in related criminal penalties; make full restitution to USAID; adopt effective standards of conduct, internal controls systems, and ethics training programs for employees; and employ an independent monitor who would evaluate and oversee the company’s compliance with the DPA for a two‑year period;
• a civil settlement that required the company to pay the government $50.6 million to resolve allegations that LBG violated the False Claims Act by charging inflated overhead rates that were used for invoicing on government contracts; and
• an administrative agreement between LBG and USAID, which was the primary victim of the fraudulent scheme.
In the settlement, the government took into consideration LBG’s cooperation with the investigation and the fact that those responsible for the wrongdoing were no longer associated with the company.
U.S. Attorney Fishman credited special agents of USAID-Office of Inspector General, under the direction of Special Agent in Charge Daniel Altman; the FBI, under the direction of Special Agent in Richard M. Frankel; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig W. Rupert; and the former Office of the Special Inspector General for Iraq Reconstruction, under the direction of former Special Inspector General Stuart W. Bowen Jr., for the investigation leading to today’s sentencing. He also thanked the U.S. Attorney’s Office, District of Maryland, and the U.S. Department of Justice Civil Division for their roles in the case.
The government is represented by Assistant U.S. Attorneys Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit, and Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit.
Defense counsel: Herbert J. Stern Esq.; Mark W. Rufolo Esq.; Jeffrey Speiser Esq.; Florham Park, New Jersey
Former La Vernia Restaurant Operator and Accomplice Sentenced to Federal Prison for Immigration Document Fraud SchemeRead the Press Release
In San Antonio today, 49–year-old Yolanda Hernandez de Arteaga, the former operator of the Los Compadres Restaurant in LaVernia, TX, was sentenced to 30 months in federal prison followed by three years of supervised release for fraudulently benefiting from a financial scheme which targeted individuals seeking legitimate immigration documents announced Acting United States Attorney Richard L. Durbin, Jr. and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Chief United States District Judge Fred Biery also sentenced Hernandez de Arteaga’s co-defendant--57–year-old Maria de Lourdes Montano-Vicencio, an undocumented alien living in Houston, to 46 months in federal prison for her role in the scheme. In addition to the prison terms, Chief Judge Biery ordered that the defendants pay $144,063 restitution to their victims.
“Hernandez de Arteaga and Montano-Vicencio twice victimized these immigrants. They first stole their money with the promise of legal papers. Then they extorted their silence with the threat of reporting them to immigration authorities,” stated Acting United States Attorney Richard L. Durbin, Jr.
According to court records, from October 2010 through December 2012, Hernandez de Arteaga and Montano-Vicencio initiated a series of financial fraud schemes including numerous incidents of wire fraud whereby they would induce vulnerable immigrants in the LaVernia area into giving them money in exchange for securing legal immigration status documents. In the schemes, the defendants claimed to have personal contacts with immigration authorities who could provide each victim with items such as a social security card, a resident alien car and a work permit in about six months-time. It was part of the scheme that the defendants did not provide any documents to the undocumented aliens. During the time of the conspiracy, the defendants collected over $100,000 from more than 60 immigrants desperate for legal immigration status documents. When the victim-immigrants became angry because they never received any documents or refunds, the defendants threatened to notify immigration authorities and facilitate the deportation of the immigrants if the victims made trouble. During the scheme, Hernandez de Arteaga wired proceeds from the scheme from LaVernia to Montano-Vicencio in Houston via Western Union or MoneyGram.
In December 2014, Hernandez de Arteaga pleaded guilty to one count of conspiracy to commit wire fraud and five substantive counts of wire fraud. In February 2013, Montano-Vicencio pleaded guilty to four counts of wire fraud.
“The defendants preyed on vulnerable victims and exploited them for profit,” said Special Agent in Charge Christopher Combs, FBI San Antonio. Detecting and bringing to justice those who perpetrate these insidious fraud schemes will always be a top priority for the FBI. ”
This case resulted from an investigation conducted by FBI agents with assistance from Homeland Security Investigations (HSI), U.S. Border Patrol and the LaVernia Police Department. Assistant United States Attorney Bettina Richardson prosecuted this case on behalf of the Government.
Former Georgia National Guard Employee Pleads Guilty to CorruptionRead the Press Release
ATLANTA - Raytosha Elliott, a former contracting official with the Georgia National Guard, has pleaded guilty to awarding contracts in exchange for illegal kickbacks. Elliott used her position to award numerous contracts under $5,000 to vendor companies created by her friends and associates.
“Ms. Elliott abused her position with the Georgia National Guard by awarding no-bid contracts to her friends in exchange for illegal kickbacks,” said Acting U.S. Attorney John Horn. “She and one friend alone pocketed nearly $75,000 in funds that were intended to maintain facilities supporting those who serve this country.”
“This guilty plea should send a message that there is a price to pay for such a betrayal of trust as seen in this case. This case also represents the FBI’s commitment to those investigations that protect the integrity of government funds and assets,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“The Government relies on the honesty and integrity of its officials engaged in contracting and procurement," stated John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This guilty plea by a corrupt National Guard employee who misused her position was the result of DCIS' joint efforts with our Federal and State law enforcement partners to investigate corruption within the contracting process.”
“IRS Criminal Investigation will continue to provide its investigative resources and expertise in exposing fraud schemes like the one Elliott orchestrated,” said Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation.
“We hope this case serves as a deterrent to those who desire to pilfer the State and Federal governments’ coffers. We also believe this case exemplifies how multiple agencies can work together to achieve a common goal: to serve the public who depends on us to defend the integrity of government programs,” said Deb Wallace, State Inspector General, Georgia Office of the Inspector General.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From May 2007 through April 2012, Elliott worked for the Georgia Department of Defense, the state agency charged with coordinating and supervising all agencies and functions of the Georgia National Guard. Elliott worked as an Engineering Operations Manager out of the Clay National Guard Center, located at Dobbins Air Reserve Base, in Marietta, Georgia.
In that position, Elliott worked with engineering firms to develop bid-ready construction projects, prepared bid documents, and oversaw no-bid purchase orders. Under the rules governing the contracting process that Elliott oversaw, projects that cost less than $5,000 did not need to go through a competitive bidding process, allowing Elliott to award the contracts. She certified that the work had been completed for those projects, and facilitated payment to the vendors who allegedly completed such projects.
In that position, Elliott awarded numerous contracts under $5,000 to vendor companies created by her friends and associates, including co-defendant Lakeysha Ellis. In return, Ellis paid Elliott kickbacks, equal to 50% of the value of the contracts, for steering the contracts to Ellis’ vendor company, Total Source Solution, LLC. Elliott falsely certified that work had been completed when, in fact, it had not.
Elliott awarded Total Source Solution 17 contracts with a total value of approximately $75,000. Those contracts were for a variety of services supposedly to be performed by Total Source Solution, including electrical work, landscaping, and HVAC work. But the work was never done. Instead, the defendants split the money awarded under these contracts and spent it on personal items, including travel, meals, merchandise, and even liposuction treatment for Ellis. As part of the scheme, Elliott owned a company named Tech Group Investments, LLC. Ellis took money she had obtained from the Georgia National Guard contracts, and paid kickbacks to Elliott through this company.
Elliott and Ellis conducted a similar fraud scheme from January 2009, through May 2011, when Ellis was an accountant at Baumueller-Nuermont Corporation, an industrial equipment company with offices in Atlanta. Her job responsibilities included payroll and paying vendors. While employed as Baumueller-Nuermont’s accountant, Ellis fraudulently funneled money to the defendants’ two sham companies, Total Source Solution and Tech Group Investments. Ellis wrote corporate checks to Total Source Solution, signed her name on the checks, and forged the signature of the Vice President on the checks, to ensure that the checks could be negotiated. Ellis recorded these payments in the check registry to reflect falsely that the checks had been issued to true vendors (such as American Express) when in fact they went to Ellis’ company.
As part of the scheme, Ellis also falsified employee records in the corporation’s payroll system to disguise payments to the defendants’ two companies. Ellis created at least two phantom employees by altering the names of real employees (by switching their first and last names) and slightly changing their Social Security numbers. She then caused the payroll system to make fraudulent salary payments to Total Source Solution and Tech Group Investments for these new, non-existent employees.
Baumueller-Nuermont lost about $85,000 from this scheme.
Elliott, 35, of Atlanta, Georgia, pleaded guilty to two counts of conspiracy today. As part of her plea agreement, Elliott has also agreed to pay restitution to WebBank based on a fraudulent loan application she submitted to the bank in September 2013. In that application, Elliott falsely inflated Tech Group Investments’ sales and gross receipts, and provided a fraudulent federal tax return in support of those figures, to obtain the loan.
On March 27, 2014, Ellis, 37, of Atlanta, Georgia, pleaded guilty to two counts of conspiring with Elliott, to commit fraud against the Georgia National Guard and Baumueller-Nuermont. The indictment also charges a third defendant, Angela Thicklin (f/k/a Angela Stanback Kinlaw), 44, of Atlanta, Georgia, of conspiring with Elliott and bribing a public official. In her position at the Georgia National Guard, Elliott awarded contracts to 3M Construction LLC, which was a company owned by Thicklin. The case against Thicklin is pending trial.
Sentencing for Elliott is scheduled for August 13, 2015, at 10:30 a.m., before United States District Judge Amy Totenberg. Sentencing for Ellis has not yet been scheduled.
This case is being investigated by Special Agents of the Federal Bureau of Investigation; the Georgia Bureau of Investigation; the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; Internal Revenue Service Criminal Investigation; the U.S. Army Criminal Investigation Command; and Deputy Inspectors General of the State of Georgia Office of the Inspector General.
Assistant United States Attorney Stephen H. McClain 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-ndga.
Former FCI-Greenville Inmate Sentenced for Possession of Contraband by A Federal InmateRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on May 7, 2015, Rodney George Plenty Hawk, Jr., 36, formerly an inmate at the Federal Correctional Institution in Greenville, IL ("FCI-Greenville"), was sentenced for Possession of Contraband by a Federal Inmate. Plenty Hawk received 18 months in federal prison, which must run consecutive (in addition) to the remainder of his current sentence, to be followed by 3 years of supervised release, and ordered to pay a $100 special assessment. Plenty Hawk has been detained since his arraignment on the Indictment on December 5, 2014.
The charge occurred on November 5, 2014, when a correctional officer at FCI-Greenville received information that Plenty Hawk might be under the influence of alcohol. Based on this information, Plenty Hawk was escorted to an area for a visual search of his person and so that he could provide a urine sample. Before the search began, Plenty Hawk told the correctional officers that he had a "shank" on his person which he subsequently turned over to the officers. The "shank" was a white plastic rod, approximately 9½ inches long, sharpened to a point at one end with a braided cord at the other end. Federal inmates are prohibited from possessing "shanks" or any type of home-made weapon, and these items are considered contraband within FCI-Greenville.
The case was investigated by the Bureau of Prison’s Special Investigations Section. The case was assigned to Assistant United States Attorney Angela Scott.
Former Columbia Resident Pleads Guilty to Receipt of Child Pornography and Possession of Prepubescent Child PornographyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on May 7, 2015, Dan Stephen Daniels, 59, formerly of Columbia, IL, pled guilty to a two-count Indictment charging him, in Count 1, with Receipt of Child Pornography, and, in Count 2, Possession of Prepubescent Child Pornography. On Count 1, Daniels faces a term in federal prison of not less than five years but not more than twenty years, a fine up to $250,000, and a term of supervised release of five years to life. On Count 2, Daniels faces a prison term of not more than twenty years, a fine up to $250,000, and a term of supervised release of five years to life. Daniels’ sentencing is scheduled for October 2, 2015, in East St. Louis, Illinois. Daniels has been detained (held without bond) since his arraignment on the Indictment on February 20, 2015.
Facts revealed in Court showed that the charges arose after an undercover Internet investigation by the FBI’s Springfield Child Exploitation Task Force downloaded approximately fourteen images of child pornography between February 9, and August 5, 2014, from a computer in Illinois that was offering the images to share. An investigation traced the computer to the Daniels’ residence in Columbia, Illinois. A federal search warrant executed at the Daniels’ residence on October 17, 2014, produced an eMachines desktop computer, an Apple MacBook Pro laptop computer, and a SanDisk 4 GB thumb drive. A forensic examination of these devices revealed that these devices contained images and/or videos of child pornography, many of which involved prepubescent minors or minors who had not attained 12 years of age. The examination also revealed that, on or about October 12, 2014, Daniels downloaded and received two images of child pornography, one of a prepubescent male engaged in sexual intercourse with an adult female and the other of a prepubescent female in the lascivious display of her genitals.
During the search of his home, Daniels provided a voluntary statement to law enforcement officers in which he admitted using peer to peer programs to download and view child pornography, and provided the name of the current program that he was using. Daniels said that he had used the program as recently as October 13, 2014, to obtain child pornography. Daniels said that he would save the image and/or video files of child pornography either in a separate folder with an innocuous name such as "empty," "hard drive," or "other files," or he would save the child pornography to a thumb drive. He said that he would view the child pornography once or twice and then delete it. Daniels told the agents that he gravitated towards image and video files of children between the ages of 10 and 17, and that he used search terms commonly associated with child pornography in order to find child pornography involving younger girls.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Columbia Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Former Alton Resident Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on May 8, 2015, Joshua D. Kenshalo, 29, formerly of Alton, IL, was sentenced for Failure to Register as a Sex Offender. Kenshalo received 33 months in federal prison, to be followed by 10 years of supervised release, fined $250, and ordered to pay a $100 special assessment. Kenshalo has been detained since his arraignment on December 16, 2014.
Facts underlying this case were that on June 3, 2002, Kenshalo was convicted of Criminal Sexual Assault of a Family Member in Madison County. As a result of that conviction, he was required to register as a sex offender under Illinois law and the Sex Offender Registration and Notification Act. On February 26, 2014, Kenshalo was living in a halfway house in Missouri while on probation for Larceny. Because of the 2002 conviction listed above, Kenshalo was also required to register as a sex offender in Missouri.
Investigation revealed that Kenshalo had been living in Alton from February 27, 2014, when he absconded from the halfway house in Missouri, until June 10, 2014, when he was arrested. During this time period, Kenshalo never registered as a sex offender in Illinois or updated his registration information in Illinois. Kenshalo said that he did not register because he knew that he had outstanding warrants for his arrest.
The case was investigated by the Alton Police Department and the United States Marshals Service. The case was assigned to Assistant United States Attorney Angela Scott.
FBI Arrests Two Men in Murder-for-Hire PlotRead the Press Release
ATLANTA - Jorge Maturano and Cesar Santos have been arraigned on federal charges of murder-for-hire. They were arrested May 6, 2015, on a criminal complaint. Both defendants were allegedly hired to kill a member of a rival drug trafficking organization.
“These arrests demonstrate how law enforcement, working together with concerned citizens, can not only hold criminals accountable for their actions but prevent violence from occurring in our community,” said Acting U.S. Attorney John Horn.
“Our agents responded quickly to end this alleged murder plot. This case reflects the ever present potential for violence that drug trafficking organizations bring to our community and the FBI will continue to play a role in addressing them,” stated J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to Acting U.S. Attorney Horn, the complaint, and other information presented in court: Maturano and Santos were allegedly hired out of Chicago, Illinois, by a drug trafficking organization to travel to the metro Atlanta area and kill a member of a rival drug trafficking organization who was living in Clayton County, Georgia.
Jorge Maturano, 46, and Cesar Santos, 29, both of Mexico, were arrested on May 6, 2015, and both made initial appearances before United States Magistrate Judge Justin S. Anand on May 7, 2015.
Members of the public are reminded that the criminal complaint in this matter only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
In that this remains an ongoing investigation, anyone with information regarding this matter should contact the FBI Atlanta Field Office at (404) 679-9000
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Evansville man sentenced for possession of child pornographyRead the Press Release
PRESS RELEASE
Evansville – Josh J. Minkler, United States Attorney, announced today that Gregory R. Baumberger, 46, Evansville, was sentenced to 41 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to possession of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force and the Evansville Police Department.
Law enforcement executed a search warrant at Baumberger’s Northside residence in October 2103, and confiscated two laptop computers. A forensic computer examination was performed and investigators discovered videos and images depicting sexually explicit conduct involving minors under the age of 12. Baumberger was found guilty in January of this year and sentenced today.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 5 years of supervised release following Baumberger’s prison term. Baumberger must register as a sex offender, must not have unsupervised contact with minors and also must participate in a sex offender treatment program while on supervision.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Office and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resource.”
District Man Sentenced to Five Years in Prison for Events Leading to Shooting That Wounded Eight-Year-Old GirlRead the Press Release
WASHINGTON – Nathaniel Patten, 22, of Washington, D.C., was sentenced today to five years in prison for his role in events leading to a shooting that seriously wounded an eight-year-old girl, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Patten pled guilty in November 2014, in the Superior Court of the District of Columbia, to charges of assault with intent to commit robbery while armed and unlawful possession of a firearm by a convicted felon. He was sentenced by the Honorable Rhonda Reid Winston. Following his prison term, Patten will be placed on three years of supervised release.
A co-defendant, the gunman, Karie Brown, 20, pled guilty in October 2014 to charges of aggravated assault while armed; assault with intent to rob while armed, and unlawful possession of a firearm by a convicted felon. He was sentenced in December 2014 to 16 years in prison.
According to the government’s evidence, Brown and Patten decided on the afternoon of Friday, Feb. 14, 2014 to rob an individual they believed sold marijuana. The men were armed with a .22-caliber Ruger semi-automatic pistol, which Brown was carrying. The men headed to the 1200 block of Valley Avenue SE, an area they knew that the individual had frequented.
Brown and Patten pretended to be waiting to gain access to a locked apartment building on the block. The eight-year-old girl – who was going outside to play in the snow - held the door open for them. Brown and Patten then followed the individual who they were targeting into the building as he went upstairs. They then attempted to rob him and gain access to an apartment that he was about to enter. The individual escaped and ran downstairs. Brown shot once at the individual while inside the building and then fired multiple shots at him outside.
The shots missed the individual, but hit the girl in the torso. The bullet struck inches from her heart. It caused severe bleeding, and she was rushed to an emergency room and placed in critical care. She required immediate surgery and could have died but for the timely intervention of medical assistance.
According to the government’s evidence, Brown and Patten fled together, not stopping to provide any assistance to their young victim, and Brown discarded the firearm, which was found by the Metropolitan Police Department (MPD). The defendants were both found and arrested soon after the shooting in the 3500 block of Wheeler Road SE.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Muyiwa Bamiduro; Paralegal Specialist Theresa Nelson; Victim/Witness Advocate Jennifer Clark, and Victim/Witness Security Specialist Tanya Via. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Tejpal S. Chawla and Kendra Briggs, who investigated and prosecuted the case.
District Man Sentenced to Five Years in Prison for Attempting to Buy Cocaine from Undercover Police OfficerRead the Press Release
WASHINGTON - Robert Walker, 31, of Washington, D.C., was sentenced today to five years in prison on a felony charge stemming from his attempt to buy cocaine from an undercover police officer, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Walker pled guilty in February 2015, in the U.S. District Court for the District of Columbia, to a charge of unlawful possession with intent to distribute 500 grams or more of cocaine. He was sentenced by the Honorable Colleen Kollar-Kotelly. Upon completion of his prison term, Walker will be placed on four years of supervised release.
According to the government’s evidence, on several occasions in 2014, Walker had conversations in person and on the phone with a person who was an undercover officer from the Metropolitan Police Department (MPD) to discuss the purchase of a kilogram of cocaine. He ultimately agreed to purchase the kilogram, and on July 18, 2014, at about 7:10 p.m., he met the undercover officer in the 6000 block of Kansas Avenue NW. Walker stated that he would pay $15,000 immediately for the kilogram and pay the remaining $15,000 owed in three days.
Walker further stated that he needed until 8:30 p.m., to obtain the money. He left the area to retrieve the money. At about 8:45, he returned, showing the undercover officer a large amount of U.S. currency that he said totaled $17,000; it actually was $16,967. He gave the money to the undercover officer and was subsequently arrested. In a search of the defendant’s person, officers recovered a quantity of marijuana and crack cocaine, along with another $847 in U.S. currency. The money was seized by law enforcement.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers from the Metropolitan Police Department who worked on the case. He also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. Finally, he acknowledged the efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
District Man Sentenced to 28 1/2 Years in Prison for 2013 Slaying of Howard University StudentRead the Press Release
WASHINGTON – Rasdavid Lagarde, 28, of Washington, D.C., was sentenced today to a 28 ½-year prison term for a botched attempted armed robbery of two Howard University students in which one victim was killed, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Lagarde pled guilty in February 2015, in the Superior Court of the District of Columbia, to second-degree murder while armed for the death of 22-year-old Omar Sykes and attempted armed robbery and possession of a firearm during a crime of violence for the attack on the surviving victim. He was sentenced by the Honorable Lynn Leibovitz. Upon completion of his prison term, Lagarde will be placed on five years of supervised release.
“Omar Sykes was a rising senior at Howard with a passion for serving others and a world of promise,” said Acting U.S. Attorney Cohen. “His murder impoverishes our entire community. This prison sentence ensures that Omar Sykes’s killer will spend decades behind bars for his embrace of senseless violence. This case should serve as a warning to all the young men in our city who are tempted to get something for nothing through armed robberies.”
According to the government’s evidence, on July 4, 2013, at about 11:20 p.m., Lagarde and an accomplice were in the 700 block of Fairmont Street NW. Mr. Sykes and another Howard University student were also on the block, walking ahead of them.
Lagarde’s accomplice pulled out a gun. He ran towards the student who was with Mr. Sykes, and ordered him to the ground. He struck the student in the head multiple times with the gun, hit him in the ribs, and kicked him. He then ordered the student multiple times not to look at him or Lagarde. At one point during the assault, Lagarde told the accomplice that he thought the student was looking at him. The accomplice then hit the student yet again.
During this attack, Lagarde pulled out a gun and approached Mr. Sykes to assist in the robbery. Lagarde’s accomplice ordered Mr. Sykes to the ground and tried to force him to the ground next to the other victim. As Lagarde attempted to pistol-whip Mr. Sykes, Lagarde fired his gun at Mr. Sykes. Mr. Sykes was shot by a single gunshot that traversed through his arm and into his chest. Lagarde and the accomplice then fled from Fairmont Street.
Mr. Sykes died from the gunshot wound. The other student suffered lacerations to his head, including a huge gash to his forehead that required multiple stitches to treat. He also suffered several bruised ribs.
Lagarde was arrested by the Metropolitan Police Department (MPD) on Oct. 15, 2013 for the murder of Mr. Sykes. He told detectives that the accomplice initiated the robbery. However, once the attempted robbery began, Lagarde helped with it. Lagarde admitted that he was armed with a .380 firearm, which he used during the robbery attempt. Lagarde stated that he did not intend for the gun to fire, but it did fire during a tussle with Mr. Sykes when he tried to force Mr. Sykes to the ground. No other arrests have been made in the case.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Third Police District of the Metropolitan Police Department, as well as Jacob Kunkle of the FBI’s Cellular Analysis Survey Team. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker, James Brennan, M. Laverne Forrest, Debra Cannon, Lesley Slade, and Michael Hailey, all of the Victim/Witness Assistance Unit; Paralegal Specialist Vanessa Trent-Valentine; former Paralegal Specialists Fern Rhedrick and Marian Russell; Investigative Analyst Zachary McMenamin, Litigation Technology Specialist Jeanie Latimore-Brown, and Intern Abhi Mehta. He also praised the efforts of Assistant U.S. Attorneys Shana Fulton and Veronica Sanchez, who investigated, indicted and prosecuted the case.
Defendant Arrested Pursuant to Grand Jury IndictmentRead the Press Release
U.S. Attorney Kenneth A. Polite announced the arrest of TARAY BUTLER following his Indictment for being a felon in possession of a firearm. BUTLER was arrested on Wednesday, May 6, 2015, with assistance of the United States Marshals Service.
The Indictment charges that on October 14, 2014, BUTLER was arrested by the New Orleans Police Department and found to be in possession of a firearm with an extended magazine. BUTLER has a prior felony conviction from Orleans Parish Criminal District Court. If convicted, BUTLER faces a maximum ten years in the Bureau of Prisons, a $250,000 fine, three years of supervised release, and a $100.00 special assessment fee.
U. S. Attorney Polite reiterated that the 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department for their work in investigating this case. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Taray Butler Indictment.pdf (1.62 MB)
Dallas Physician and His Employee Arrested for Alleged $5.2 Million Medicare Fraud SchemeRead the Press Release
A physician who ran a medical house call service business in Dallas, and an employee of that business were arrested this morning on charges related to their alleged participation in a $5.2 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John R. Parker of the Northern District of Texas, Special Agent in Charge Mike Fields of the Department of Health and Human Services’ Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Thomas M. Class, Sr. of the FBI’s Dallas Division and Special Agent in Charge Max Eamiguel of the U.S. Postal Service’s Office of the Inspector General’s (USPS-OIG) Southern Area Field Office made the announcement.
Hector Molina, M.D., 51, of Irving, Texas, and Blanca Mata, 46, of Forney, Texas, were charged with one count of conspiracy to commit health care fraud. In addition, Molina was charged with eight counts of health care fraud, and Mata was charged with four counts of health care fraud. Both defendants made their initial appearances before U.S. Magistrate Judge Renée Harris Toliver of the Northern District of Texas earlier today and were released on bond.
According to allegations in the indictment, Molina owned and operated Molina Medical Housecall Services in Dallas, and Mata was an employee of that business. The indictment alleges that from approximately June 2012 through January 2015, Molina and Mata conspired to defraud Medicare by billing for home visits performed by Mata, who was not a physician, as if Molina had performed the home visits. Additionally, the indictment alleges that Molina billed for home visits performed in the Dallas area while he was out of the country.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by HHS-OIG, the Texas Attorney General’s MFCU, the FBI and USPS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas. The case is being prosecuted by Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.