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Monday 23 March 2015
U.S. Attorney’s Office Spearheads National Youth Violence Prevention Week Events in BostonRead the Press Release
BOSTON – For the second consecutive year, city, state, and federal officials in Boston will present events for young people in recognition of National Youth Violence Prevention Week, March 23-27, 2015.
A citywide Peace Rally at the Reggie Lewis Center at Roxbury Community College on March 26th from 5:30 to 7:30 pm, hosted by radio personalities, DJ Pup Dawg, DJ Maverik, and DJ EDubble from JAM’N 94.5, will be the highlight of the week. At the rally, the winners of the anti-violence themed contest for Boston students will be announced and the event will also feature the Vine Street Dancers, the Seekers of Knowledge dance group, and surprise audience-participation contests. Officials from the Mayor’s Office, Suffolk County District Attorney’s Office, and Boston Police Department will attend. Over 250 people attended the 2014 Rally.
The Boston Interagency Committee on Violence Prevention announced creative anti-violence themed contests in schools and community centers several weeks ago. Boston students in grades K-5 submitted posters with a theme of “Youth Standing Strong Against Violence;” grades 6-8 entered poetry with the same theme; and high school students were invited to create hip-hop music videos with an anti-violence message.
Prizes for the top entries include Red Sox tickets and a spotlight on JAM’N 94.5’s “Saturday Night Jump Off.” Sponsoring schools or community centers will also receive Staples gift cards in recognition of their support. Last year’s video contest winner appeared in a television interview with the Boston Police Department’s Chief Superintendent William Gross.
Another event taking place in Boston during National Youth Violence Prevention Week will be held at the Martin Luther King, Jr. K-8 School on March 24th. The school will be the site of a half-day program for students, encouraging positive decision-making and alternatives to violence. For the first time, the U.S. Attorney’s “Your Future, Your Decision” program will be combined with the Suffolk County District Attorney’s “Overcoming Violence” program, both designed to provide role models, positive options, and constructive activities for out-of-school time.
The Boston Interagency Committee on Violence Prevention consists of representatives from the U.S. Attorney’s Office, Boston Police Department, Suffolk County District Attorney’s Office, Boston Centers for Youth & Families, and Suffolk County Sheriff’s Department.
Sponsors of the event include Roxbury Community College, Longwood Security, MassHousing, Crystal Rock Beverages, Boston Police Athletic/Activities League, and the Youth Violence Prevention Funders Learning Collaborative.
For further information, visit www.cityofboston.gov/bcyf/programs and click on “Youth Standing Strong Against Violence,” or send an email to [email protected].
U.S. Attorney and HHS Ensure Effective Communication with the Hearing Impaired at St. Francis HospitalRead the Press Release
Follow @USAO_CT
The U.S. Attorney’s Office for the District of Connecticut and the U.S. Department of Health and Human Services, Office for Civil Rights (OCR), have entered into a voluntary resolution agreement with St. Francis Hospital and Medical Center in Hartford to ensure effective communication with and enhance the quality of services for persons who are deaf or hard of hearing.
The matter was initiated by a complaint filed with the Department of Justice (DOJ) alleging violations of Title III of the Americans with Disabilities Act (ADA). Specifically, the complainant alleged that St. Francis Hospital and Medical Center (“St. Francis Hospital”) failed to provide auxiliary aids and services when necessary to ensure effective communication with him during multiple admissions to St. Francis Hospital. Title III of the ADA prohibits public accommodations, including hospitals, from discriminating on the basis of disability in the full and equal enjoyment of their goods, services, facilities, privileges, advantages or accommodations.
In cooperation with DOJ, OCR initiated a compliance review of St. Francis Hospital with regard to the Hospital’s policies and procedures for ensuring effective communication with individuals who are deaf or hard of hearing to determine the Hospital’s compliance with Section 504 of the Rehabilitation Act of 1973. Section 504 of the Act prohibits discrimination on the basis of disability in any program or activity receiving federal financial assistance.
As a result of these investigative efforts, concerns were raised regarding whether St. Francis Hospital has been implementing adequate policies and procedures to ensure effective communication with deaf or hard of hearing individuals.
Under the agreement, which resolves both the DOJ complaint investigation and OCR compliance review, St. Francis Hospital is obligated to take several critical steps toward improving access to appropriate communication services for deaf and hard of hearing individuals, including revising its policies and procedures as necessary, revising its training as necessary, and performing an assessment of the need for auxiliary aids and services for patients and their companions.
St. Francis Hospital also agreed to pay the complainant $45,000 in compensatory relief.
The agreement is effective for three years, during which time both OCR and the U.S. Attorney’s Office will monitor St. Francis Hospital’s compliance.
A copy of the voluntary resolution agreement may be found here.
This matter was handled by Assistant U.S. Attorney Brenda Green.
To learn more about the ADA and its application to places of public accommodation, call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Local Marijuana Traffickers Sentenced to PrisonRead the Press Release
McALLEN, Texas – Two McAllen men have received significant sentences for conspiring to possess with the intent to distribute marijuana and conspiring to launder the drug proceeds, announced U.S. Attorney Kenneth Magidson. Alberto Alaniz, 51, and Jose Ramon Romo, 30, pleaded guilty to the charges May 29, 2014.
Today, U.S. District Judge Randy Crane ordered Alaniz to serve 262 months in federal prison, while Romo received a sentence of
120 months. Alaniz will also serve 10 years of supervised release following completion of the prison term, while Romo will serve a five-year-term.The investigation revealed that from 2008 through 2013, Alaniz and Romo conspired to transport large amounts of marijuana from the Rio Grande Valley to various destinations via tractor-trailers. During the investigation, law enforcement was able to seize several loads of marijuana, including 1,799 kilograms on June 16, 2011, and 442 kilograms on Feb. 10, 2012. In addition, agents seized hundreds of thousands of dollars in currency from both defendants as part of the investigation.
Alaniz was taken into custody, while Romo was permitted to voluntarily surrender to authorities at a later date.
The investigation leading to the charges was conducted by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney James Sturgis prosecuted the case.
Two Latvian Women Plead Guilty to Wire Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Janis Tonis, 32, and Veronika Krutova, 26, of Latvia, pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to conspiracy to commit wire fraud. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000, or both.Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendants, along with other co-conspirators, defrauded financial institutions and victim businesses by sending false wire transfer requests. Participants in the scheme used stationary from victim businesses to authorize wire transfer requests at the financial institutions. The defendants attempted to defraud a total of $80, 928 from the financial institutions.
The defendants also defrauded online purchasers of motor vehicles by posting cars for sale online, the defendants instructed the buyers to send money to bank accounts they controlled and then took the money and disappeared without ever delivering a vehicle. The loss amounts total $32,300.
The pleas are the culmination of an investigation on the part of Special Agents of Immigrations and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing will be scheduled at a later date before U.S. District Court Judge William M. Skretny.
Two Individuals Plead Guilty in Manhattan Federal Court in Connection with 2009 Home Invasion Robbery and MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANTOINE BURROUGHS and LEON WHITFIELD pled guilty to robbery charges in connection with the home invasion robbery and murder of Gerardo Antoniello on September 9, 2009. Antoniello was killed during the home invasion robbery of his father, Bartolomeo Antoniello, who was targeted for the cash proceeds of the pizza shop he owned in Queens, New York. BURROUGHS and WHITFIELD pled guilty today before United States District Judge Gregory B. Woods.
U.S. Attorney Preet Bharara said: “At the direction of an associate of the Gambino Crime Family, Antoine Burroughs and Leon Whitfield targeted and attempted to rob a Queens pizza shop owner in his home, and then brutally murdered his son as he tried to protect his father. With today’s pleas, the perpetrators of this crime will be held accountable.”
According to the allegations in the Indictment and statements made at various proceedings in this case, including the guilty pleas:
BURROUGHS and WHITFIELD were hired by Frank LaCorte, an associate of the Gambino Crime Family, to commit a home invasion robbery. On September 9, 2009, BURROUGHS and WHITFIELD attempted to rob Bartolomeo Antoniello at his home in Queens, New York. BURROUGHS and WHITFIELD were targeting the cash proceeds of Antoniello’s pizza shop. Antoniello’s son, Gerardo Antoniello, was home at the time, and attempted to protect his father. BURROUGHS and WHITFIELD brutally beat and pistol-whipped the father and son, and the father was seriously injured. During the struggle, Gerardo Antoniello was shot in the head and died later of his injuries. He was 29 years old.
As a result of these criminal activities, the two men have pled guilty as follows:
BURROUGHS pled guilty to one count of robbery conspiracy, which carries a maximum sentence of 20 years in prison, and one count of attempted robbery, which carries a maximum sentence of 20 years in prison. As a part of his plea, BURROUGHS admitted to shooting and killing Antoniello during the robbery.
WHITFIELD pled guilty to one count of robbery conspiracy, which carries a maximum sentence of 20 years in prison, and one count of attempted robbery, which carries a maximum sentence of 20 years in prison. As a part of his plea, WHITFIELD admitted that he carried a fake gun during the robbery and that BURROUGHS shot and killed Antoniello during the struggle.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Judge.
Both defendants are scheduled to be sentenced by Judge Woods on July 29, 2015.
Frank LaCorte was convicted in Queens County Court for his role in organizing this and numerous other home invasion robberies and in June 2012 was sentenced to a term of 50 years to life in prison.
Mr. Bharara praised the work of the Federal Bureau of Investigation, the New York City Police Department, the Queens District Attorney’s Office, and the United States Marshals Service.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Rachel Maimin is in charge of the prosecution.
Two Essex County, New Jersey, Men Sentenced to Prison for Smuggling Marijuana and Cell Phones into Federal Detention FacilityRead the Press Release
TRENTON, N.J. – Two Newark, New Jersey, men were each sentenced prison terms today for their involvement in a scheme to smuggle contraband, including marijuana and cell phones, into the Essex County Correctional Facility, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Darsell Davis, 29, and Dwayne Harper, 31, were sentenced to 15 months and 12 months in prison, respectively. Davis previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiring with others to commit extortion under color of official right. Harper previously pleaded guilty before Judge Cooper to an information charging him with one count of conspiring to smuggle contraband into the Essex County Correctional Facility. Judge Cooper imposed both sentences today in Trenton federal court.
According to the documents filed and statements made in court:
On multiple occasions between September 2013 and May 2014, Stephon Solomon, 27, a corrections officer at the Essex County Correctional Facility, smuggled contraband – including cell phones, tobacco, and marijuana – to Quasim Nichols, 30, a federal pretrial detainee at facility, in exchange for cash bribes. Davis and Harper aided the smuggling scheme by collecting the contraband to be smuggled into the facility. After receiving contraband and cash bribes from Davis, Solomon smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchased the contraband by having friends and family send Western Union money transfers to Nichols, who then enlisted Davis and others to retrieve those payments for him. Davis obtained at least $4,300 in Western Union payments over the course of the conspiracy.
Nichols pleaded guilty before U.S. District Judge Mary L. Cooper on Feb. 11, 2015, to an information charging him with one count of committing an armed carjacking and one count of conspiring with others to commit extortion under color of official right. Nichols is scheduled for sentencing on May 20, 2015.
Solomon pleaded guilty on Oct. 1, 2014, to one count of conspiring to commit extortion under color of official right and awaits sentencing on March 25, 2015. He has been released on bail.
In addition to the prison term, Judge Cooper sentenced Davis and Harper to each serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and investigators with the Internal Affairs Division of the Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Defense counsel:
Davis: Maria Noto Esq., Matawan, New Jersey
Dwayne Harper: Michael Pedicini Esq., Morristown, New JerseyTwo Co-Conspirators Sentenced for Using Counterfeit Checks to Buy Store Merchandise and Gift CardsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Nichelle Nicole Rogers, age 28, of Washington, D.C., today to 54 months in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft, in connection with a scheme to defraud Target Corporation. Judge Chasanow also sentenced Ebony Nicole Ruffin, age 28, of District Heights, Maryland, today to 27 months in prison followed by three years of supervised release for the wire fraud conspiracy in connection with the scheme. Judge Chasanow entered orders that Rogers and Ruffin each forfeit and pay restitution of $485,000.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to their plea agreements, from September 2011 to November 2013, Rogers and Ruffin used counterfeit personal checks and false identifications to fraudulently obtain visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina. The co-conspirators presented over 1,400 counterfeit checks at Target stores, including stores in Frederick, Bowie, and Waldorf, Maryland, as payments for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.
Rogers and Ruffin used the visa gift cards to buy items from Target for themselves, and to buy merchandise from other retailers, such as Nordstrom, later returning the merchandise for cash.
Rogers used or caused to be used the stolen identification of a real person on the counterfeit checks and presented this means of identification to Target cashiers to complete at least 350 transactions.
On November 9, 2013, Rogers was arrested by Prince William County (Virginia) Police officers for shoplifting at a Nordstrom Rack in Woodbridge, Virginia. Police seized 27 counterfeit checks in her possession. Rogers had previously attempted to use counterfeit checks and false identifications at other stores, and she had four receipts from a Target store which indicated that she had purchased 12 visa gift cards via counterfeit checks that day.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Thomas P. Windom, who prosecuted the case.
Sioux City Woman Sentenced for Making False StatementsRead the Press Release
United States Attorney Deborah R. Gilg announced that Melissa S. Edwards, 41, of Sioux City, Iowa, was sentenced in federal court in Omaha, Nebraska, for Making False Statements to the Department of Housing and Urban Development (HUD). The Honorable Laurie Smith Camp sentenced Edwards to 1 year and 1 day in prison. There is no parole in the federal system. After her release from prison, Edwards will begin a three-year term of supervised release. Edwards was ordered to pay restitution in the amount of $179,118.55.
Melissa Edwards managed the Canterbury Apartments in South Sioux City, Nebraska. The complex was owned by a management company in Maine. The complex offered Section 8 housing subsidized by HUD. Between October 2011 and continuing into October 2013, Edwards embezzled $169,924 from the management company which included more than $100,000 of funds derived from HUD. To accomplish her theft and conceal her crime Edwards created false applications and recertifications. The recertifications would decrease the tenant’s income thus increasing the subsidy. The tenant was unaware of the recertification and Edwards would convert the increased subsidies to her own use. False applications were submitted using the names of relatives and friends.
Settlement with Continental Carbon Company to Reduce Air Pollution at Manufacturing Facilities in Alabama, Oklahoma and TexasRead the Press Release
In a settlement with the United States and the states of Alabama and Oklahoma, Continental Carbon Company has agreed to install pollution control technology that will significantly cut emissions of harmful air pollutants at manufacturing facilities in Alabama, Oklahoma and Texas, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. The settlement will resolve claims that Houston-based Continental violated the Clean Air Act by modifying their facilities in a way that caused the release of excess sulfur dioxide (SO2) and nitrogen oxide (NOx).
The settlement requires Continental to pay a civil penalty of $650,000, which will be shared with Alabama and Oklahoma, co-plaintiffs in the case. Continental must also spend $550,000 on environmental projects to help mitigate the harmful effects of air pollution on the environment and to benefit local communities, including at least $25,000 on energy efficiency projects in the communities near each of the three facilities.
“Today’s agreement is good news for residents living near Continental facilities, many of whom were overburdened by air pollution for far too long and whose children, like all Americans, should be able to breath clean air,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The agreement also reflects our continuing efforts to vigorously enforce the Clean Air Act to protect public health and the environment. The settlement requires Continental to control large sources of air pollution with advanced technology and requires projects that will have a direct and positive impact on Continental’s neighbors.”
“This settlement brings another major carbon black company into compliance with a law that protects clean air for American communities,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “By investigating all 15 carbon black manufacturing plants in the U.S., EPA is committed to improving public health and leveling the playing field for companies that follow the law. By installing the latest pollution control technology and funding environmental projects, Continental is taking steps to reduce emissions of air pollutants that can lead to serious health problems.”
Continental manufactures carbon black, a fine carbonaceous powder used in tires, plastics, rubber, inkjet toner and cosmetics, at facilities in Phenix City, Alabama, Ponca City, Oklahoma, and Sunray, Texas. Because the oil used to make carbon black is high in sulfur, its production creates large amounts of nitrogen oxide, sulfur dioxide and particulate matter. This settlement supports EPA’s and the Justice Department's national efforts to advance environmental justice by working to protect communities such as Phenix City and Ponca City that have been disproportionately impacted by pollution.
EPA expects that the actions required by the settlement will reduce harmful emissions by approximately 6,278 tons per year of sulfur dioxide and 1,590 tons per year of nitrogen oxide. Continental estimates that it will spend about $98 million to implement the required measures. The pollution reductions will be achieved through the installation, upgrade and operation of state-of-the-art pollution control devices designed to reduce emissions and protect public health.
SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
EPA concluded that the modifications made at Continental’s plants violated the Clean Air Act based on information the company submitted in response to an information request from EPA in 2007. EPA issued notices of violation to Continental for these claims in 2012.
The settlement was filed with the U.S. District Court of the Western District of Oklahoma and is subject to a 30 day public comment period. The company is required to pay the penalty within 30 days after the court approves the settlement.
The consent decree is available for review at http://www.justice.gov/enrd/Consent_Decrees.html.
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution. Through the initiative, EPA investigated all 15 of the carbon black plants in the U.S. for violations of the Clean Air Act’s Prevention of Significant Deterioration requirements. With this settlement, six of the 15 facilities will be covered by consent decrees with EPA. In 2013, EPA announced the first national carbon black settlement with Boston-based Cabot Corporation, the second largest carbon black manufacturer in the United States.
More on the settlement: http://www2.epa.gov/enforcement/continental-carbon-company-clean-air-act-settlement.
Settlement with Continental Carbon Company to Reduce Air Pollution at Manufacturing Facilities in Alabama, Oklahoma and TexasRead the Press Release
WASHINGTON – In a settlement with the United States and the states of Alabama and Oklahoma, Continental Carbon Company has agreed to install pollution control technology that will significantly cut emissions of harmful air pollutants at manufacturing facilities in Alabama, Oklahoma and Texas, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. The settlement will resolve claims that Houston-based Continental violated the Clean Air Act by modifying their facilities in a way that caused the release of excess sulfur dioxide (SO2) and nitrogen oxide (NOx).
The settlement requires Continental to pay a civil penalty of $650,000, which will be shared with Alabama and Oklahoma, co-plaintiffs in the case. Continental must also spend $550,000 on environmental projects to help mitigate the harmful effects of air pollution on the environment and to benefit local communities, including at least $25,000 on energy efficiency projects in the communities near each of the three facilities.
“Today’s agreement is good news for residents living near Continental facilities, many of whom were overburdened by air pollution for far too long and whose children, like all Americans, should be able to breath clean air.” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “The agreement also reflects our continuing efforts to vigorously enforce the Clean Air Act to protect public health and the environment. The settlement requires Continental to control large sources of air pollution with advanced technology and requires projects that will have a direct and positive impact on Continental’s neighbors.”
“This settlement brings another major carbon black company into compliance with a law that protects clean air for American communities,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “By investigating all 15 carbon black manufacturing plants in the U.S., EPA is committed to improving public health and leveling the playing field for companies that follow the law. By installing the latest pollution control technology and funding environmental projects, Continental is taking steps to reduce emissions of air pollutants that can lead to serious health problems.”
Continental manufactures carbon black, a fine carbonaceous powder used in tires, plastics, rubber, inkjet toner and cosmetics, at facilities in Phenix City, Alabama, Ponca City, Oklahoma, and Sunray, Texas. Because the oil used to make carbon black is high in sulfur, its production creates large amounts of nitrogen oxide, sulfur dioxide and particulate matter. This settlement supports EPA’s and the Justice Department's national efforts to advance environmental justice by working to protect communities such as Phenix City and Ponca City that have been disproportionately impacted by pollution.
EPA expects that the actions required by the settlement will reduce harmful emissions by approximately 6,278 tons per year of sulfur dioxide and 1,590 tons per year of nitrogen oxide. Continental estimates that it will spend about $98 million to implement the required measures. The pollution reductions will be achieved through the installation, upgrade and operation of state-of-the-art pollution control devices designed to reduce emissions and protect public health.
SO2 and NOx have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
EPA concluded that the modifications made at Continental’s plants violated the Clean Air Act based on information the company submitted in response to an information request from EPA in 2007. EPA issued notices of violation to Continental for these claims in 2012.
The settlement was filed with the U.S. District Court of the Western District of Oklahoma and is subject to a 30 day public comment period. The company is required to pay the penalty within 30 days after the court approves the settlement.
The consent decree is available for review at http://www.justice.gov/enrd/Consent_Decrees.html
This settlement is part of EPA’s National Enforcement Initiative to control harmful emissions from large sources of pollution. Through the initiative, EPA investigated all 15 of the carbon black plants in the U.S. for violations of the Clean Air Act’s Prevention of Significant Deterioration requirements. With this settlement, six of the 15 facilities will be covered by consent decrees with EPA. In 2013, EPA announced the first national carbon black settlement with Boston-based Cabot Corporation, the second largest carbon black manufacturer in the United States.
More on the settlement: https://www.epa.gov/enforcement/continental-carbon-company-clean-air-act-settlement
Scranton Man Pleads Guilty to Tobacco Tax FraudRead the Press Release
BOSTON – A Scranton, Pa. man pleaded guilty today in U.S. District Court in Springfield to charges relating to tobacco tax evasion.
Irfan Sami, 46, pleaded guilty to one count of conspiracy and three counts of wire fraud for his role in a multi-state scheme to defraud Massachusetts and Connecticut of tax revenue relating to cigars and smokeless tobacco. Sami had been charged in November 2014. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 24, 2015.
Sami, along with a number of co-conspirators, helped wholesale businesses in Springfield and Attleboro, Mass., Danbury, Hamden, and Berlin, Conn. evade state tobacco taxes. Working from a warehouse in Scranton, Sami helped his employer create fake invoices that would be used to make false tobacco tax filings that vastly understated the amount of tobacco tax due.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Each count of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Alex J. Grant of Ortiz’s Springfield Branch Unit and Veronica M. Lei of Ortiz’s Asset Forfeiture Unit.
San Antonio Man Sentenced to Almost 11 Years in Federal Prison for Transportation of a Minor to Engage in Sexual ActivityRead the Press Release
In San Antonio today, U.S. District Judge David A. Ezra sentenced 33-year-old Ricardo Castillo, Jr., to 130 months in federal prison followed by ten years of supervised release for transportation of a minor with intent to engage in sexual activity announced Acting United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
Judge Ezra also ordered that the San Antonio resident register as a sex offender for life.
According to court records, in December 2013, Castillo began text messaging with a 15-year-old female in Illinois. Communications between the two eventually became sexual in nature resulting in Castillo texting a sexually explicit photograph of himself to the minor. The child confided to Castillo that she was upset with her home life. On April 25, 2014, Castillo drove from San Antonio to Illinois, and picked the child up at the end of her street. Once in the car, Castillo removed the SIM card from the child’s phone, and then transported her back to San Antonio where he sexually assaulted her twice.
On the day she disappeared, the victim’s family filed a missing child report with the LaSalle County (IL) Sheriff’s Department. From the victim’s phone records, her father noted an unknown phone number which belonged to the defendant.
On May 5, 2014, Illinois law enforcement detected cell phone activity from the missing child’s cell phone in San Antonio. Coincidentally, that same day, the victim reached out to a friend via Facebook for help. The friend provided the victim’s location to her family. A family member, who had previously driven from Illinois to San Antonio to help locate the missing child, successfully recovered the missing child.
Castillo has remained in custody since his arrest on June 13, 2014. He pleaded guilty to the charge on September 16, 2014.
This case was investigated by the Federal Bureau of Investigation (FBI) together with the LaSalle County (IL) Sheriff’s Department and the San Antonio Police Department. Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Romanian National Extradited to New Jersey to Face Charges in Computer Hacking SchemeRead the Press Release
NEWARK, N.J. – A Romanian citizen made his initial court appearance today following his extradition to face charges that he orchestrated an international hacking scheme targeting retailers, security companies, medical offices and individuals in the United States, U.S. Attorney Paul J. Fishman announced.
Mircea-Ilie Ispasoiu, 29, of Drobeta-Turnu Severin, Romania, is charged by federal indictment with two counts of wire fraud, two counts of unauthorized computer access to obtain information, two counts of unauthorized computer access that caused damage and three counts of aggravated identity theft. Ispasoiu was arrested Nov. 13, 2014, following an investigation led by the U.S. Secret Service and coordinated with Romanian law enforcement. The Court of Appeal of Bucharest granted extradition on Jan. 26, 2015, and Ispasoiu arrived in the United States on March 20, 2015. He appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2011 through February 2014, Ispasoiu was employed as computer systems administrator at a large financial institution in Romania. Ispasoiu’s scheme allegedly involved hacking networks belonging to retailers, security companies, medical offices and individuals in order to steal user names and passwords, personal identifiers and credit and debit card data. For just one of the victims identified in the indictment, Ispasoiu was able to steal more than 10,000 credit and debit card numbers. Ispasoiu also gained access to a computer at a large security company that ran background checks on job applicants. Ispasoiu stole the applicants’ personal identifying information, including their fingerprints.
The maximum potential penalties for each count are as follows:
Count
Violation
Maximum Penalty
1 and 2
Wire fraud
30 years; $1 million fine or twice the gain or loss from the offense
3 and 4
Unauthorized computer access to obtain information
Five years; $250,000 fine or twice the gain or loss from the offense
5 and 6
Unauthorized computer access that caused damage
Five years; $250,000 fine or twice the gain or loss from the offense
7-11
Aggravated identity theft
Mandatory two years (consecutive to any other imposed sentence); $250,000 fine or twice the gain or loss from the offense
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli, with the investigation leading to the charges. U.S. Attorney Fishman also thanked the Justice Department’s Office of International Affairs in Washington, as well as the Prosecutor’s Office attached to the High Court of Cassation and Justice in Romania and its law enforcement partners, for their support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Rensselaer County Man Pleads Guilty to Distribution, Receipt and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Howard Hazelton, age 63, of Rensselaer County, New York, pled guilty today in Albany before United States District Judge Thomas J. McAvoy to two counts of distribution of child pornography, one count of receipt of child pornography and five counts of possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Hazelton faces at least 5 years and up to 20 years of imprisonment, as well as a term of supervised release of at least 5 years and up to life. He also faces a maximum fine of $250,000 and mandatory registration as a sex offender. Hazelton will be sentenced in Albany, New York on August 11, 2015.
As part of his guilty plea, Hazelton admitted that in August and September 2013, he knowingly distributed child pornography, and that in November 2013, he knowingly received child pornography and possessed child pornography involving prepubescent minors and minors who had not attained 12 years of age.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Special Assistant United States Attorney Amanda W. Cox.
Pueblo Bishop Gang Member Sentenced to Life in Federal Prison in RICO Case for Ambush Slaying of Man in Front of His 2-Year-Old SonRead the Press Release
LOS ANGELES – A member of the Pueblo Bishop Bloods street gang was sentenced this afternoon to life (plus 10 years) in federal prison for his conviction on racketeering offenses that included the execution of a man in front of his 2-year-old son.
Rondale Young, also known as “Pueblo-Grump,” 31, of South Los Angeles, was sentenced by United States District Judge S. James Otero.
A federal jury convicted Young in December 2013 of violating the federal Racketeer Influenced and Corrupt Organizations Act (RICO) in relation to the murder of 23-year-old Francisco Cornelio, a 23-year-old man who had no gang affiliation and who was shot point-blank in front on his young child.
The jury also found Young guilty of conspiring to murder Mr. Cornelio, as well as the actual murder in 2009, both of which were done in furtherance of the Pueblo Bishop criminal enterprise. In addition, Young was found guilty of a firearms offense based on a co-conspirator’s use of pistol grip shotgun that resulted in murder. Young was also convicted of witness intimidation.
In court documents filed in relation to the sentencing, prosecutors wrote, “The seriousness of defendant’s offense is among the most egregious in the federal code, among the few punishable by death. The ultimate consequences of the murder that resulted from defendant’s conduct were to: rob a young wife of her husband; rob a young son of his father and of his childhood; and to further inflame racial and gang tensions in combustible South Los Angeles, thereby putting the entire community at risk.”
The federal convictions came after Young was acquitted in Los Angeles Superior Court on murder charges related to the slaying of Mr. Cornelio. After the acquittal in state court, the FBI’s Los Angeles Metropolitan Task Force on Violent Gangs re-investigated the case, with the help of LAPD’s Newton Homicide Division, and uncovered additional evidence related to the murder and Young’s involvement with the Pueblo Bishops.
Young is the third person to be convicted in federal court in relation to the murder of Mr. Cornelio. In another trial, a federal jury determined that Anthony “Bandit” Gabrourel, was also part of the plot to murder Mr. Cornelio. At that trial, the evidence showed that Gabourel was one of two Pueblo Bishops who exited Young’s car with shotguns and fatally shot Mr. Cornelio. Gabrourel was sentenced earlier this year by Judge Otero to 40 years in federal prison. The third person conviction in relation to the murder was sentenced to five years in prison for hiding the murder weapon after the slaying.
The evidence presented at Young’s trial showed that Young drove his car, which contained other armed gang members, into rival gang territory early on the morning of August 2, 2009. The Pueblo Bishops were seeking retaliation after an earlier shooting against their gang. The Pueblo Bishops targeted Mr. Cornelio because he was of Hispanic descent and in rival gang territory.
According to witnesses who testified, two Pueblo Bishops, who were armed with shotguns, got out of Young’s vehicle and ambushed an unsuspecting victim, who was washing his car. The gang members shot him once in the back without saying a word, while the young Cornelio sat in the back seat of the car. There was no evidence that Cornelio had any gang ties.
The murder was unsolved prior to a federal racketeering indictment that was unsealed in August 2010. That indictment charged that Young and other members of the gang were members of a criminal enterprise that engaged in drug dealing, firearms trafficking, murder, witness intimidation and armed robbery as part of the gang’s efforts to control and terrorize the Pueblo Del Rio Housing Projects in South Los Angeles.
As a result of the federal investigation into the racketeering activity of the Pueblo Bishop Bloods, a total of 45 defendants were charged in federal indictments. Prosecutors have secured convictions against 41 of those defendants. Two defendants are in state custody after receiving lengthy sentences for violent gang crimes, and two are fugitives.
The investigation into the Pueblo Bishop Bloods was conducted by the Federal Bureau of Investigation; the Los Angeles Police Department, Newton Division; the United States Department of Housing and Urban Development, Office of Inspector General; and the Los Angeles County District Attorney’s Office.
Release No. 15-029
Portage Hospital Pays $4.44 Million to Resolve Voluntary Disclosure Regarding False Medicare Clains for Health Care ServicesRead the Press Release
GRAND RAPIDS, MICHIGAN – Portage Hospital, LLC, in Hancock, Michigan, has agreed to pay the United States $4,446,392.43 to settle allegations that a hospital-owned home health care agency, Portage Health Home Care & Hospice, violated the False Claims Act by submitting false claims to Medicare for home health care services purportedly rendered by a staff physical therapist.
The settlement stems from a self-disclosure to the U.S. Department of Health & Human Services, Office of Inspector General (“HHS-OIG”) by Portage Hospital. Based on information provided by Portage Hospital, the United States alleged that physical therapy services that the staff therapist provided to Medicare home health care patients between January 1, 2006 and November 30, 2013 were medically unnecessary, lacked adequate documentation of medical necessity, and/or did not qualify for payment by Medicare. The United States alleged that while the staff therapist claimed to be performing between 1,889 and 3,352 home health care visits each year, his documentation generally failed to establish, among other things, patients’ homebound status and the need for skilled therapy services.
“Portage Hospital is to be commended for disclosing this matter,” said U.S. Attorney Patrick A. Miles, Jr. “Self-disclosures by providers are critical to protecting the integrity of federal health care programs. My office is committed to bringing voluntary disclosures to resolution as quickly and efficiently as is reasonably possible.”
“A health care provider’s decision to self-disclose its improper behavior benefits both the provider, in this case a hospital, and Federal health care programs, and we will continue to work with our law enforcement partners and providers to reach prompt, appropriate settlement of conduct disclosed in good faith,” said Special Agent in Charge Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General.
The United States encourages health care providers to self-disclose any violations that have resulted in the submission of improper claims to federal health care programs. A timely voluntary disclosure can result in a significantly reduced penalty. This case was investigated by HHS-OIG and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States.
END
Point Pleasant man sentenced to 3+ years for investment fraudRead the Press Release
Defendant swindled victims out of more than $220,000
HUNTINGTON, W.Va. – A Point Pleasant man was sentenced today to 37 months in federal prison for an investment fraud scheme, U.S. Attorney Booth Goodwin announced. Mark Anthony, 40, who pleaded guilty last November to one count of mail fraud in connection with the scheme, also was ordered to repay more than $220,000 that he stole from his victims, including two elderly widows.
Anthony previously admitted that over a span of nearly 10 years, he deceived an elderly Point Pleasant couple into believing that he was a licensed investment representative who would invest their money in high-yielding annuities and money-market accounts. In all, the couple gave him more than $200,000 of their savings to invest, with the wife continuing to give Anthony money for supposed investments after her husband passed away. Instead of investing the money, Anthony stole it, spending the couple’s nest egg to buy things for himself and pay personal expenses. Occasionally, Anthony mailed the couple a small check that he pretended was a return on their investments. These checks were actually money from other sources, which Anthony sent to make his victims believe their so-called investments were producing legitimate returns. Anthony also mailed the couple fake tax forms that pretended to show their income from investments Anthony had made for them.
Anthony also defrauded at least three other victims as part of the same scheme.
“Protecting West Virginia’s senior citizens from scams like this has been a priority for me from day one,” said U.S. Attorney Goodwin. “This case is a reminder to stay vigilant. There are plenty more scammers out there like this defendant, who may seem trustworthy but are really out to separate people from their hard-earned savings. Always be wary of a deal that seems too good to be true.”
U.S. Attorney Goodwin’s website provides information for seniors to avoid becoming victims of fraud and other crimes: http://www.justice.gov/usao/wvs/Safe-senior-brochure.pdf.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The West Virginia State Police Bureau of Criminal Investigation and the FBI investigated the case. Counsel to the United States Attorney Steve Ruby and Assistant United States Attorney Gabriele Wohl handled the prosecution.
PA State Police Investigation Leads to Child Exploitation Charges Against Erie ManRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The three-count indictment named Ian Matthew Ahenger, 41, as the sole defendant.
According to the indictment presented to the court, Ahenger distributed, received and possessed computer images depicting minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
One Pasco and Two Lake County Residents Charged with Trafficking in MethamphetamineRead the Press Release
Tampa, Florida – A federal grand jury has returned an indictment charging Shawn Paul Hendricks (41, Dade City), Vladimir Castaneda (26, Eustis), and Jose Edgar Gonzalez-Castaneda (45, Eustis) with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, announces United States Attorney A. Lee Bentley, III, along with Acting Special Agent in Charge A.D. Wright, DEA Miami Field Division, and Pasco Sheriff Chris Nocco. Castaneda and Gonzalez-Castaneda were also charged with distribution of 500 grams or more of methamphetamine, and possession with intent to distribute 500 grams or more of methamphetamine. If convicted, each faces a mandatory minimum penalty of 10 years, up to life, in federal prison. The indictment also notifies the defendants that the United States intends to forfeit $49,334 in cash, a silver 2008 BMW sedan, and a Smith and Wesson .357 Magnum pistol and ammunition, which are alleged to be traceable to the offenses.
According to court documents, Hendricks, who was known by law enforcement to be a large-scale methamphetamine trafficker, was arrested in Dade City on February 18, 2015, for fleeing and alluding law enforcement after an attempted traffic stop. Agents subsequently seized marijuana, a gun, and nearly $50,000 in cash from a Dade City residence where Hendricks lived with his girlfriend. Hendricks admitted to having received 10 to 15 pounds of methamphetamine a week over the past year from a source of supply in Atlanta, and stated that he was to receive such a shipment the following night. With Hendricks’s cooperation, on February 19, 2015, agents arrested Castaneda and Gonzalez-Castaneda in Eustis, after they had delivered nearly 9 pounds of methamphetamine to Hendricks. In one of the transport vehicles, agents found an additional 11 pounds of methamphetamine. Gonzales-Castaneda admitted that he and Castaneda had picked up the methamphetamine in Atlanta earlier that morning.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Drug Enforcement Administration and the Pasco Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kathy J.M. Peluso.
Newark Man Admits Stealing 25 Firearms from Local Gun StoreRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Rodney Goodrich, Jr., 28, of Newark, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to theft of firearms and possession and sale of stolen firearms and ammunition. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that on January 21, 2013, the defendant was involved in the theft of 24 handguns and one rifle from D&M Shooting Sports, a commercial establishment located in Palmyra, NY. Goodrich aided and abetted Angel Hernandez-Ramos and another individual to unlawfully enter the store and steal the firearms. The defendant then sold the stolen firearms to others in exchange for cash and cocaine.
Angel Hernandez-Ramos, who was also involved in the theft of the firearms, has been convicted and is scheduled to be sentenced on May 14, 2015.
The plea is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, and investigators of the Wayne County Sheriff’s Office, under the direction of Sheriff Barry Virts.
Sentencing is scheduled for June 23, 2015 at 9:30 a.m. before Judge Geraci.
New York Man Charged with Possession of Counterfeit Money and Fraudulent Credit CardsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that on Friday, March 20, 2015, federal criminal charges in U.S. District Court in Scranton were filed against Robert Cagle, age 50, Bronx, New York.
According to U.S. Attorney Peter Smith, a criminal information was filed charging Cagle with access device fraud and aggravated identity theft. Allegedly, in April 2014, Pennsylvania State Police conducted a search of a disabled vehicle on Interstate 81. Cagle, a passenger in the vehicle, was allegedly found to be in possession of counterfeit $100 bills and fraudulent credit/debit cards. The government also filed a plea agreement with the defendant which is subject to approval by the court.
The investigation was conducted by the U.S. Secret Service and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 12 years imprisonment, a term of supervised release following imprisonment, and a $500,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Criminal Complaint
New Hampshire Man Pleads Guilty to Federal Sex CrimeRead the Press Release
BOSTON – A New Hampshire man pleaded guilty today to traveling with intent to engage in illegal sexual activity with a minor.
Karl W. Leeman, 48, of Milford, N.H., pleaded guilty before U.S. Chief District Court Judge Patti B. Saris to a Superseding Information charging travel with intent to engage in illegal sexual activity with a minor.
In February 2014, federal undercover agents in Boston placed an advertisement on Craigslist purportedly as a mother seeking an adult interested in a “taboo relationship” with her daughter. Leeman responded that he was interested, even after the purported mother disclosed that her daughter was only 14-years-old. Leeman proceeded to engage in more than 650 email communications with the purported mother, detailing the sexual activities in which he would engage with the minor “daughter.” On Feb. 27, 2014, Leeman left his home in Milford, NH, traveled to work in Massachusetts, and then to Watertown for the purpose of having sex with a minor. Upon his arrival at the designated meeting place, he was arrested by federal agents. At the time of his arrest, Leeman was carrying alcohol, bath products, lubricant, and gifts of clothing for the minor.
The charging statute provides a sentence of no greater than 30 years in prison, a minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by HSI Manchester N.H., the Massachusetts State Police, the Watertown Police Department and the Milford, N.H. Police Department. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the 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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Montgomery Man Sentenced to 10 Years for Gun and Drug ChargesRead the Press Release
Montgomery, Alabama-- Joseph Irwin Westerlund, a 49-year old Montgomery resident, was sentenced last week to 120-months in prison for firearm and methamphetamine charges, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
On May 22, 2014, postal workers at the Lagoon Station Post Office in Montgomery contacted postal inspectors concerning a Postal Priority Mail Express envelope addressed to Joe Westerlund. According to postal management, the owners of the residence told them that they did not want mail in the name of Joe Westerlund delivered to them because he did not live there. On the same date, a man claiming to be Joe Westerlund called the Lagoon Park Post Office inquiring about the Priority Mail Express envelope.
After obtaining a search warrant, U.S. Postal Inspectors examined the contents of the Priority Mail envelope on May 28, 2015 and found 1.1 ounces of methamphetamine.
The next day, at the direction of postal inspectors and law enforcement, management at the post office called Westerlund and informed him that his package was available for pick up. Westerlund came to the post office and signed for the envelope. As he was leaving the post office he was arrested and his vehicle searched. Inside the vehicle officers found a loaded handgun. Westerlund later pled guilty to possession of a controlled substance with intent to distribute, and possession of a firearm in connection with a drug trafficking crime.
“Methamphetamine is a dangerous drug that destroys lives and wreaks havoc on our neighborhoods,” stated U.S. Attorney Beck. “Drugs and guns do not mix. As long as this deadly combination continues to plague our community, we will prosecute those who illegally possess and distribute them.”
The case was investigated by U.S. Postal Inspectors with assistance from the Montgomery Police Department, and prosecuted by Assistant United States Attorney John Geer.
Minot Man Convicted of Possession with Intent to Distribute MethamphetaminesRead the Press Release
BISMARCK – Acting US Attorney Chris C. Myers announced that on March 23, 2015, Daniel Adam Connelly, 30, of Minot, ND, was sentenced before U.S. District Judge Daniel L. Hovland to serve 12 years and 7 months in prison for Possession with Intent to Distribute a Controlled Substance (methamphetamine), to be followed by three years of supervised release. Connelly was also ordered to pay a $100 special assessment to the Crime Victim’s Fund.
In October 2012, law enforcement officials, while investigating drug trafficking in the Minot, ND, area, executed a search warrant at Connelly’s residence where they found approximately 6.5 ounces of methamphetamine, with a street value of $15,000-30,000, in Connelly’s bedroom inside the drawer of a plastic storage container. Law enforcement officials also located a loaded .357 rifle next to the storage container. Other information indicated that Connelly had obtained meth from Arizona and California in order to distribute it in North Dakota.
The case was investigated by the United States Department of Homeland Security, the Ward County Narcotics Task Force, the North Dakota Bureau of Criminal Investigation, and the Minot Police Department.
Assistant U.S. Attorney David Hagler prosecuted the case
Michigan man sentenced to federal prison for heroin offenseRead the Press Release
HUNTINGTON, W.Va. – A Michigan man who sold heroin in the Huntington area, was sentenced today to 46 months in federal prison, announced U.S. Attorney Booth Goodwin. Clarence Edward House II, also known as “Nitty,” 44, previously pleaded guilty in December of 2014 to aiding and abetting the distribution of heroin. House admitted that he had arranged for the sale of $800 worth of heroin from a drug dealer to a confidential informant working with law enforcement. Chief United States District Judge Robert C. Chambers handed down the sentence.
The FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Michigan Physician Pleads Guilty for Role in $3.6 Million Medicare Fraud SchemeRead the Press Release
A Detroit-area medical doctor who referred Medicare beneficiaries for home health services in exchange for illegal cash kickbacks as part of a $3.6 million home health care fraud scheme pleaded guilty today for his role in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Kutub Mesiwala, 64, of Bloomfield Hills, Michigan, pleaded guilty before U.S. District Judge George Caram Steeh of the Eastern District of Michigan to one count of conspiracy to commit health care fraud. A sentencing hearing is set for Oct. 5, 2015.
According to admissions in his plea agreement, Mesiwala referred patients to Detroit-area home health agency Advance Home Health Care Services Inc. (Advance) and other home health care agencies in exchange for cash kickbacks. Advance’s owner, Amer Ehsan, pleaded guilty on July 24, 2014, to fraudulently billing Medicare for $3.6 million in home health services that were not medically necessary or not provided through Advance. Ehsan is awaiting sentencing.
Mesiwala admitted that Medicare paid a total of $770,668.31 to Advance and $118,375.81 to other home health care companies for fraudulent claims based on his referrals.
This case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorney Katharine A. Wagner of the 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.
Mexican National Sentenced to 18 Months on Immigration ChargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Mexican national was sentenced to 18 months in prison for selling counterfeit identification documents and for illegally reentering the United States. A second Mexican national was sentenced to six months in prison for hiring an illegal alien.
Nazario Flores-Cordero, 45, of Mexico, was sentenced on one count of fraud and misuse of visas, permits and other documents; one count of false representation of a Social Security account number; and one count of illegal re-entry to the United States following deportation. Jesus Francisco Herrera-Gonzalez, 36, also of Mexico, was sentenced on one count of encouraging and inducing Nazario Flores-Cordero, an illegal alien, to reside in the United States by illegally employing him. They were also ordered to be deported following the completion of their prison terms. United States District Judge S. Maurice Hicks sentenced them.
According to the evidence presented at the December 2, 2014 guilty pleas, Flores-Cordero sold counterfeited or altered fake permanent resident cards and Social Security cards from October 2011 to May of 2014 in the Shreveport/Bossier City area that were to be used to falsely show that illegal aliens were lawfully in the United States and could be employed. Each counterfeit permanent resident card showed the name of the individual and photograph of the individual to be employed. Each counterfeit Social Security card falsely used and represented a Social Security account number not assigned to the individual named on the card. Flores-Cordero was also found to be illegally in the United States after he was last removed from the United States to Mexico in 2013.
United States Immigrations and Customs Enforcement-Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Mexican National Sentenced for Drug ConspiracyRead the Press Release
Jose Ivan Mejia-Chavez, 28, a citizen of Mexico, was sentenced to 120 months in prison on March 20, 2015, on an eleven-count indictment charging him with Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine, Illegal Re-Entry after Deportation, and Interstate Travel in Support of Racketeering, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. Mejia-Chavez had previously pled guilty to these charges on November 18, 2014. Mejia-Chavez was also ordered to pay a $300 special assessment. An Order for forfeiture was entered in the amount of $35,738. A Judicial Order of Removal was also entered during the sentencing hearing today.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Martinsburg man sentenced to five years for cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Courtney Lamar Jenkins, 26, of Martinsburg, West Virginia, was sentenced today to 60 months in prison for his role in a conspiracy to distribute crack cocaine throughout Northern West Virginia., United States Attorney William J. Ihlenfeld, II, announced.
Jenkins pled guilty in December 2014 to one count of “Drug Conspiracy” following an investigation by the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative. As part of the sentence imposed today, Jenkins will also forfeit his interest in $2,936.00 in United States currency.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government.
Chief U.S. District Judge Gina M. Groh presided.
Leaders of South L.A. Gang Controlled by Incarcerated Mexican Mafia Member Sentenced to Prison in Federal Racketeering CaseRead the Press Release
LOS ANGELES – The daughter of a Mexican Mafia member who acted as the conduit between her father and South Los Angeles street gangs he controlled from state prison was sentenced today to 15 years in federal prison on racketeering charges.
Vianna Roman, 39, of South Los Angeles, received a 180-month prison term from United States District Judge R. Gary Klausner after she pleaded guilty last year in a RICO case targeting the Harpys street gang.
Roman, who is the daughter of Mexican Mafia member Danny Roman, pleaded guilty last May to racketeering, narcotics, and weapons offenses, while admitting that she acted as the street-level proxy for her father, carrying out his orders as he exercised control over Harpys and other street gangs. Danny Roman is serving a life-without-parole sentence at Pelican Bay State Prison and was not charged in the federal RICO case.
The “shotcaller” of the Harpys gang – Manuel Valencia, 38, of Walnut – was sentenced on March 2 to 27 years in federal prison. Valencia pleaded guilty last May to racketeering and drug trafficking charges for his role in orchestrating the day-to-day activities of the gang. Valencia specifically admitted that he oversaw and participated in gang activities, which included conspiracy to murder and violent retaliation against the gang’s rivals, issuing orders to gang members regarding violence such as drive-by shootings, collecting “taxes” from drug dealers who were allowed to operate in gang territory, and engaging in drug trafficking.
The Harpys gang, which claims territory southwest of downtown Los Angeles and north of the University of Southern California, is one of more than a dozen Latino gangs across a wide swath of South Los Angeles that was overseen by Vianna Roman on behalf of her father.
According to court documents, Vianna Roman and Valencia orchestrated a scheme that allowed Danny Roman to continue to continue to control the activities of the street gangs from the Special Housing Unit of Pelican Bay State Prison. Vianna Roman used coded language to pass information to and received orders from her father during trips to the Pelican Bay prison in Northern California. Vianna Roman passed the orders to Valencia and other high-ranking members of Harpys, who oversaw violent conduct and drug trafficking within both Harpys territory and the broader area controlled by Danny Roman. Valencia controlled and enforced the collection of tax payments from Latino gangs under Danny Roman’s control and issued orders to other gangs regarding drug sales and the use of violence.
Today’s sentencing of Vianna Roman concludes a federal case targeting the Harpys gangs that was brought under the federal Racketeer-Influences and Corrupt Organizations Act. The RICO case charged a total of 29 defendants, 25 of whom have now been convicted and sentenced. Three of the charged defendants are fugitives, and charges against one were dismissed following his conviction of first-degree murder in Los Angeles Superior Court.
According to court documents, Danny Roman oversaw gang activity by giving orders that directed gang members to engage in criminal conduct, including the murder of rival gang and Mexican Mafia members, and the extortion of businesses and gangs to generate income that was funneled back to Danny Roman in state prison. The Harpys gang collected taxes and other extortionate payments through threats of violence, including murder. Acting under Danny Roman’s authority, Vianna Roman and Valencia orchestrated the extortion of vendors at the Alameda Swap Meet, which is outside of Harpys territory but within the area controlled by Danny Roman. The Alameda Swap Meet was in territory controlled by the 38th Street gang, another gang under the control of Danny Roman.
In addition to outlining Danny Roman’s control of the Harpys and of other gangs in South Los Angeles, the RICO indictment charged specific criminal acts, including the distribution of methamphetamine, cocaine, crack cocaine and heroin; the murder of a gang member over a drug debt; robberies against residents and rival gang members; and conspiracies to commit murder, including a plot to kill a witness in a state court case against a member of another gang.
The investigation into members of the Harpys and the other street gangs was called Operation “Roman Empire” and was conducted by the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Task Force, which is comprised of officers with the Los Angeles Police Department and agents with the Drug Enforcement Administration.
Release No. 15-029
Lawrence Man Sentenced for Trafficking in Designer DrugsRead the Press Release
TOPEKA, KAN. - A Lawrence man who helped launch a global sales and supply network for smokable synthetic cannabinoids (synthetic marijuana) and other designer drugs was sentenced Monday to federal prison for violating the federal Food, Drug and Cosmetic Act, U.S. Attorney Barry Grissom said.
Bradley Miller, 57, Lawrence, Kan., was sentenced to 87 months in federal prison. He pleaded guilty to one count of conspiracy, one count of misbranding and one count of mail fraud. In his plea, he admitted he conspired with his brother, co-defendant Clark Sloan, and Sloan’s son, co-defendant Jonathan Sloan, to manufacture and sell designer drugs, including a marijuana substitute called K2 that was named after the second-highest mountain in the world.
Miller and Jonathan Sloan owned and operated Persephone’s Journey, a retail store at 1103 Massachusetts in Lawrence, Kan., and Bouncing Bear Botanicals, 14501 South U.S. 59 Highway, Oskaloosa, Kan. Both businesses ostensibly sold herbs and botanical products. Over time, the business grew to encompass a chain of suppliers, retailers, wholesalers and business associates with locations in Kansas, California, Massachusetts, New Jersey, Oregon, Nevada and Indiana, as well as in other nations including Argentina, Latvia, Germany, Lithuania, the United Kingdom, Ukraine, the Netherlands, Canada, Sweden, Singapore, Thailand and Uruguay. The defendants made at least $3.3 million from the sale of the drugs
Miller developed recipes for K2 and manufactured it. During the Sloans’ trial, prosecutors presented evidence that:
- The defendants manufactured and distributed K2 as an Aall natural product@ but it contained synthetic chemicals called JWH Compounds that mimic the effects of the THC in marijuana. Their products also contained solvents, either the alcohol Everclear or acetone, as well as other additives.
- They manufactured and sold at least four types of K2 products: Standard, Citron, Blonde and Summit, with Standard being the least potent and Summit being the most potent, depending on the amount of JWH Compounds that were mixed with herbs.
- The defendants manufactured the K2 without quality controls, resulting in inconsistent potencies. They intended K2 products to be smoked like marijuana by recreational drug users, but they falsely referred to K2 products as aromatic incense and falsely labeled them as Anot for consumption.@
Co-defendant Clark Sloan was sentenced to 87 months in federal prison. Jonathan Sloan was sentenced to 96 months.
“Protecting the public health lies at the core of FDA’s and Office of Criminal Investigation’s mission,” said Catherine Hermsen, special agent in charge, FDA Office of Criminal Investigation, Kansas City Field Office. “When innocent-appearing products disguise their actual ingredients, their safety cannot be assured. We will continue to work to bring to justice those who would endanger the public health.”
Grissom commended the Food and Drug Administration - OCI, Assistant U.S. Attorney Tanya Treadway and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Identity Thief Sentenced to 15 Years in Prison in What Judge Called “Extraordinary” CaseRead the Press Release
SAN DIEGO – A Mexican national who stole the identity of a California-born farmworker and impersonated him for almost three decades – even claiming to be the father of some of his victim’s children - was sentenced in federal court today to 184 months in prison in what is believed to be the longest sentence of its kind.
Ramiro Plascencia-Orozco was charged in 2011 with two counts of aggravated identity theft and two counts of illegal reentry after deportation for acts that occurred in 2008 and 2011. He was convicted by a federal jury in August 2014 of all four counts after less than four hours of deliberation.
According to court records, Plascencia has used at least 35 different aliases over the course of four decades, but none more prolifically than that of Alberto Jose Del Muro-Guerrero, a man he met once through a mutual friend in the 1980s. Plascencia also has been removed from the United States more than 20 times and has been prosecuted 10 times for alien smuggling, illegal reentry, identity theft, false claim to U.S. Citizenship, drug trafficking and other crimes by the U.S. Attorney’s Office. At sentencing today, Plascencia still continued to assert that he is Del Muro.
U.S. District Judge John Houston said the long sentence was warranted in part because of Plascencia’s extensive criminal history, the decades-long impact of the crime on the victim and his family, and the defendant’s lack of remorse.
“The court finds the seriousness of identity theft is extraordinary in this case,” Judge Houston.
Later in the hearing, Judge Houston scolded Plascencia, speaking of the impact of his crimes on the real Del Muro. “Throughout the last 30 years he (Del Muro) has not had the opportunity to advance his life for himself and his family. He could not get a good job because of the criminal record that you imposed upon him. Because he couldn’t get a good job, it’s only reasonable to infer that his kids could not get a better education, that he could not have a better lifestyle for he and his family, because he was limited and handcuffed by you, because you stripped him of his identity throughout his entire adult life, to the benefit of yourself, and to his detriment - his extreme detriment.”
The judge criticized Plascencia for his legal maneuverings, including numerous instances in which he fired or pressed for the removal of almost all of his defense attorneys over the course of his criminal career in an attempt to delay proceedings.
“Unfortunately what a transcript in this case cannot reveal is your cavalier demeanor in court proceedings, demonstrating and telegraphing to this court that you understand what’s going on here and that you understand that you’re manipulating this entire system of justice, holding this very system hostage to your whim…for your own reasons,” Judge Houston said.
“I am extremely gratified by this sentence, which could not be more appropriate for a man who not only stole a name but hijacked a life for three decades,” said U.S. Attorney Laura Duffy. “We hope that with this sentence, Mr. Del Muro’s nightmare will be over and he will never again be forced to share his name with an audacious, calculating thief with no regard for anyone but himself.”
While arguing for a significant sentence, Assistant U.S. Attorney Marietta Geckos told the court: “We know that prison time cannot replace the years Mr. Del Muro has lost, the anxiety he has suffered, and the inconvenience he and his family endured. But today, for everyone here, we can say that there is one Mr. Del Muro, and he is not here today. Plascencia-Orozco is a serial violator of our immigration laws and is an unremorseful imposter. No U.S. citizen should have to fight this hard to save his own name. This must end.”
According to a statement read to the court by Assistant U.S. Attorney David Finn on behalf of Del Muro: “I want this to end, and for him (the defendant) to leave me alone, and I want him to get enough time in jail so that he doesn't come out and reuse my name. He only gets 3-4 years each time and as soon as he is released he uses my identity. Please do me a favor of putting an end to this. Have him stop bothering me and my family. It happens too often. Please give the maximum punishment you can since he deserves whatever you decide.”
According to court documents, Plascencia was arrested August 2, 2011 at the San Ysidro Port of Entry when he attempted to enter the United States through the pedestrian lane. He presented a U.S. birth certificate bearing the name Alberto Jose Del Muro, but a fingerprint inspection indicated that he was a Mexican citizen with no legal right to enter the U.S.
This attempted reentry occurred about one month after he had been deported by an immigration judge for entering the U.S. illegally yet again. The trial also included Plascensia’s 2008 illegal entry, and his illicit use of Del Muro’s documents at that time.
During trial, the real Alberto Jose Del Muro-Guerrero testified that he met Plascencia at a bar through a friend. The next day, Del Muro said, he ran into Plascencia in the street. Plascencia complained that their mutual friend had left him stranded, so Del Muro took Plascencia to his house and allowed him to sleep one night in his car.
Del Muro said Plascencia had asked for the car keys so he could listen to the radio. The next day, Del Muro found his car and Plascencia missing, along with his wallet, driver’s license, birth certificate and social security card, which he kept in the glove compartment on work days.
During his testimony, Del Muro explained that he worked in the fields and could be stopped by immigration authorities at any time, so he kept his identification documents at the ready, in the glove compartment of his car. He said he could not keep them in his pocket because they would get wet while working in the fields. Del Muro immediately reported his car stolen to police. His 1969 Ford Montego was later found in Oregon, but he would later realize he’d suffered a loss that proved far worse.
According to court transcripts, Del Muro testified that he started getting tickets after that, and his license was suspended. “I would go the Department of Motor Vehicles, and then the first thing that would show up would be his picture.” Even now, Del Muro has been unable to get a California Driver’s license.
Plascencia took the stand in his own defense. In addition to the wholesale adoption of the true Del Muro’s relatives - including names of parents, grandparents, children, spouse, date of birth, and city of birth - the defendant claimed that the true Mr. Del Muro – the victim in this case - had actually stolen the defendant’s wife/woman, and that some or all of the Del Muro children were fathered by the defendant.
According to the government’s sentencing memorandum, “The suffering caused by defendant Plascencia on the Del Muro family is palpable as they have been dragged through litigation for almost three decades because of defendant Plascencia’s identity theft.”
DEFENDANTS Case Number: Ramiro Plascencia-Orozco Age: 60 Guadalajara, Jalisco, Mexico CHARGESTwo counts (2 & 4) Aggravated Identity Theft, in violation of Title 18 U.S.C. Sec. 1028A – required penalty two years per count consecutive to any other term of imprisonment.
Two counts (1 & 3) Illegal Entry after Deportation, in violation of Title 8, U.S.C., Sec. 1326 (a)(b)–, Maximum penalties 20 years in prison, $250,000 fine.
INVESTIGATING AGENCIESU.S. Customs and Border Protection
Frisco Man Sentenced to 10 Years in Federal Prison for the Attempted Enticement of A MinorRead the Press Release
DALLAS, Texas — Matthew Jarmon, 24, of Frisco, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 10 years in federal prison, following his guilty plea in December 2014 to one count of attempted enticement of a minor, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to the factual resume filed in the case, in June 2014, Jarmon used his computer to engage in a number of sexually explicit “chat” conversations with a minor under the age of 17. Jarmon made plans to meet the minor and to engage in sexual activity with the minor. Upon arriving at the pre-arranged location on June 18, 2014, Jarmon was arrested by law enforcement.
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 Garland Police Department and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Camille Sparks prosecuted.
Fresno Woman Pleads Guilty to Bomb Threat Hoax at Fresno City CollegeRead the Press Release
FRESNO, Calif. —Judy Gutierrez, 22, of Fresno, pleaded guilty today to violating federal law by making a false bomb threat (false information and hoax), United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 22, 2014, Judy Gutierrez emailed a bomb threat to her biology professor at Fresno City College resulting in classes in the science building being cancelled for the day. The science building was evacuated and searched, but no bomb was found by police.
This case is the product of an investigation by the Federal Bureau of Investigation and the State Center Community College District Police Department. Assistant United States Attorney Duce Rice is prosecuting the case.
Gutierrez is scheduled to be sentenced by United States District Judge Anthony W. Ishii on July 27, 2015. Gutierrez faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Freedom Industries pleads guilty to environmental crimesRead the Press Release
Charleston, W.Va. – Freedom Industries pleaded guilty in federal court today in Charleston to three environmental crimes in connection with the January 2014 Elk River chemical spill, U.S. Attorney Booth Goodwin announced. Freedom, which owned and operated the facility from which the chemical MCHM spilled into the river, pleaded guilty to negligent discharge of a pollutant, the unlawful discharge of refuse, and violating a permit condition. Sentencing of the company is scheduled for June 29, 2015.
The case is being investigated by the Federal Bureau of Investigation and the Environmental Protection Agency - Criminal Investigation Division.
Former U.K. Rabobank Derivatives Trader Pleads Guilty to LIBOR Interest Rate Manipulation ChargesRead the Press Release
A former senior derivatives trader at the London desk for Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) pleaded guilty today in U.S. federal court for his role in a scheme to manipulate the U.S. Dollar (USD) and Yen London InterBank Offered Rate (LIBOR), a benchmark interest rate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
Lee Stewart, 51, of London appeared in the Southern District of New York before United States District Judge Jed S. Rakoff and pleaded guilty to one count of conspiracy to commit wire and bank fraud. A sentencing hearing is scheduled for June 9, 2017.
At the time relevant to the charges, LIBOR was an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believed they would be charged if borrowing from other banks. It served as the primary benchmark for short-term interest rates globally and was used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. LIBOR was published by the British Bankers’ Association, a trade association based in London, and was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for U.S. Dollar and Yen currency for a specific maturity was the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
According to admissions made in connection with his guilty plea, Stewart worked as a senior derivatives trader at Rabobank’s London desk from 1993 to 2009, and entered into derivative contracts involving interest rate swaps linked to the U.S. Dollar LIBOR rate. Stewart admitted that from May 2006 through early 2011, he conspired with others at Rabobank to manipulate the LIBOR benchmark interest rate, which was tied to the profitability of interest rate derivative trades entered into by Rabobank traders.
The investigation is being conducted by special agents, forensic accountants and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of conduct at Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
Former Owner of Health PMO Serves Nearly Four Years in Prison for Illegal Distribution of Drugs and Money LaunderingRead the Press Release
-Websites were used to dispense pharmaceutical drugs without prescriptions
LOUISVILLE, Ky. – The former owner of Health PMO was sentenced to time served, of 45 months in prison, and ordered to pay $20,000 in restitution by Senior Judge Charles R. Simpson, III in U.S. Federal Court today, for conspiring to illegally distribute and dispense controlled substances, wire fraud, and conspiring to commit money laundering, announced Acting U.S. Attorney John E. Kuhn, Jr.
Stacy Allen Taylor, age 47, of Louisville, pleaded guilty to the charges on October 22, 2014, in U.S. District Court. Taylor admitted that between March of 2008 and March of 2009, he conspired and agreed with others to distribute and dispense prescription drugs, by setting up an internet pharmacy to dispense controlled substances to customers without valid prescriptions. Taylor used various web site addresses including www.RXvaluePharm.com to distribute and dispense hundreds of orders for prescription drugs, throughout the United States each day, generating sales of Schedule II, III, and IV controlled substances for a profit that totaled $790,753.51.
“Many of these drugs had a high potential for abuse and dependence,” stated Acting U.S. Attorney John Kuhn. “Without a license to prescribe or dispense prescription drugs, Taylor was no more than a drug dealer with a website. We hope and expect today’s sentence will be a deterrent to those who might consider trying to conduct illegal pharmaceutical sales using the internet.”
According to court documents, customers were not required to provide prescriptions from a practitioner, licensed by law, to administer such drugs before dispensing the controlled prescription drugs. Instead, Taylor permitted customers to fill out forms or provide information to telemarketing sales agents, allowing customers to choose the type and quantity of controlled substances and other prescriptions they wished to purchase. Over time, Taylor approved every order for which a valid credit card was provided and unlawfully distributed hundreds of prescriptions drugs on a daily basis. At no time was Taylor licensed to practice medicine or pharmacy by the Commonwealth of Kentucky.
As part of this scheme, Taylor admitted that beginning in March 2008, and continuing until at least March 2009, he committed wire fraud. Taylor conspired with others to conduct financial transactions affecting interstate and foreign commerce which involved the proceeds of unlawful activity, namely, the unlawful distribution and dispensing of, and conspiracy to distribute and dispense, controlled substances and other substances. To accomplish this, Taylor and his co-conspirators sent wire transfers from a Health PMO Class Act Federal Credit Union account to an account at the Federal Bank of the Middle East, Ltd., Nicosia, Cypress. These wire transfers were from the proceeds of selling and distributing controlled substances and other drugs to customers in the United States and other locations.
Further, Taylor admitted to knowingly engaging in a scheme to defraud investors of Health PMO beginning in June 2008. This scheme was used to obtain money and property by soliciting and receiving money from individuals by promising them stock in Health PMO. Taylor falsely represented and promised to provide investment interest (stock) in Health PMO. Instead, Taylor used the funds received for his personal benefit and gain.
The case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and was investigated by the U.S. Food and Drug Administration Office of Criminal Investigations and the United State Postal Inspection Service.
Former Omaha Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 20, 2015, Trent Nitzel, 46, formerly of Omaha, Nebraska, was sentenced in federal court in Omaha for Bank Robbery. The Honorable Joseph F. Bataillon sentenced Nitzel to 44 months in prison. Nitzel has been incarcerated since December 5, 2011, and was given credit for approximately 40 months of prison time already served. Nitzel’s sentence of 44 months prison will be in addition to the 40 months of prison already served. There is no parole in the federal system. After his release from prison, Nitzel will begin a three year term of supervised release.
On October 24, 2011, Nitzel robbed the Centennial Bank, located at 6307 Center Street, Omaha, Nebraska. During the robbery, Nitzel took from Centennial Bank an amount totaling approximately $5,027.00. On October 28, 2011, Nitzel robbed the First National Bank, located at 1601 Capitol Street, Omaha, Nebraska. During the robbery, Nitzel took from First National Bank an amount totaling approximately $3,730.00. During both of the robberies, Nitzel handed the teller a note demanding money. Nitzel did not use or display a weapon during either of the robberies.
Omaha Police investigated the robberies.
Former Dunwoody Police Detective Pleads Guilty to Running Fraudulent Warrant Checks in Return for Airline Tickets and Other KickbacksRead the Press Release
ATLANTA – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.
“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn. “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause. The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”
“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department. The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant.
In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database. Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them. In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time.
Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose. Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.
Assistant United States Attorney Garrett L. Bradford is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Dunwoody Police Detective Pleads Guilty to Running Fraudulent Warrant Checks in Return for Airline Tickets and Other KickbacksRead the Press Release
ATLANTA – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.
“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn. “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause. The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”
“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department. The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant.
In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database. Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them. In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time.
Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose. Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.
Assistant United States Attorney Garrett L. Bradford is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Bechtel Executive Sentenced to 42 Months in Prison and Ordered to Forfeit $5.2 Million in Connection with Kickback SchemeRead the Press Release
The former principal vice president of Bechtel Corporation and general manager of a joint venture operated by Bechtel and an Egyptian utility company was sentenced today to 42 months in prison for accepting $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement.
Asem Elgawhary, 73, of Potomac, Maryland, pleaded guilty on Dec. 4, 2014, to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. In imposing sentence today, U.S. District Judge Deborah K. Chasanow of the District of Maryland also ordered Elgawhary to forfeit $5.2 million.
From 1996 to 2011, Elgawhary was assigned by Bechtel—a U.S. corporation engaged in engineering, construction and project management—to be the general manager at Power Generation Engineering and Services Company (PGESCo), a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company, known as EEHC. PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. According to his plea agreement, Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. One of the power companies, Alstom S.A., together with a Swiss subsidiary, pleaded guilty on Dec. 22, 2014, to violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to foreign officials, including Elgawhary, in various countries.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors, falsely certifying that he had no knowledge or suspicion of any fraud at PGESCo, and that there were no possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in a further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary further admitted to obstructing and interfering with tax laws by failing to report any of the kickback payments as income for the tax years 2008 through 2011 and providing false information about foreign bank accounts.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a criminal complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
The case was investigated by the FBI’s Baltimore Division and IRS-CI’s Washington D.C. Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. The case was prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Bechtel Executive Sentenced to over Three Years in Prison and Ordered to Forfeit $5.2 Million in Connection with Kickback SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Asem Elgawhary, 73, of Potomac, Maryland today to 42 months in prison for accepting $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt. Judge Chasanow also ordered Elgawhary to forfeit $5.2 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Elgawhary, the former principal vice president of Bechtel Corporation and general manager of a joint venture operated by Bechtel and an Egyptian utility company pleaded guilty on Dec. 4, 2014, to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws.
From 1996 to 2011, Elgawhary was assigned by Bechtel—a U.S. corporation engaged in engineering, construction and project management—to be the general manager at Power Generation Engineering and Services Company (PGESCo), a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company, known as EEHC. PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. According to his plea agreement, Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. One of the power companies, Alstom S.A., together with a Swiss subsidiary, pleaded guilty on Dec. 22, 2014, to violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to foreign officials, including Elgawhary, in various countries.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors, falsely certifying that he had no knowledge or suspicion of any fraud at PGESCo, and that there were no possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in a further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary further admitted to obstructing and interfering with tax laws by failing to report any of the kickback payments as income for the tax years 2008 through 2011 and providing false information about foreign bank accounts.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a criminal complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
United States Attorney Rod J. Rosenstein thanked the FBI and IRS-CI for their work in the investigation. U.S. Attorney Rosenstein also recognized the significant assistance provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. Mr. Rosenstein praised Assistant U.S. Attorney David I. Salem and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section, who prosecuted the case.
Former Banker in Great Bend Pleads Guilty to Bank FraudRead the Press Release
WICHITA, KAN. - A former loan officer for a bank in Great Bend pleaded guilty Monday to a federal charge of bank fraud, U.S. Attorney Barry Grissom said.
Brian W. Harrison, 56, Great Bend, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted the crime occurred during the time from 2004 to 2012 when he was a loan officer for Farmer’s Bank and Trust in Great Bend.
His duties included reviewing, approving and disbursing loans within his lending authority without the approval of the bank’s loan committee. In furtherance of a scheme to defraud the bank, he made or caused to be made false statements to the bank to hide the poor performance of various loans he made. His false statements were intended to deflect questions from the bank about problems with the loans. He falsified credit and loan applications, promissory notes and security agreements on behalf of a purported debtor without the debtor’s proper authority.
Sentencing is set for he. Both parties have agreed to recommend a sentence of six months in prison, followed by six months home detention, as well as an order to pay more than $124,000 in restitution.
Grissom commended the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and Assistant U.S. Attorney Aaron Smith for their work on the case.
Fireman's Fund Insurance Company to Pay $44 Million to Settle False Claims Act AllegationsRead the Press Release
Fireman’s Fund Insurance Company has agreed to pay $44 million to settle allegations under the False Claims Act that it knowingly issued insurance policies that were ineligible under the U.S. Department of Agriculture’s (USDA) federal crop insurance program and falsified documents, the Justice Department announced today. Fireman’s Fund, an Allianz SE subsidiary headquartered in Novato, California, provides personal and commercial property insurance throughout the United States.
“Federal crop insurance provides vital support for farmers suffering crop losses due to natural disasters,” said Acting Assistant Attorney General Benjamin C. Mizer of the Department’s Civil Division. “The Department of Justice will continue aggressively to pursue those who abuse this important program.”
Between 1999 and 2002, Fireman’s Fund operated a crop insurance business and participated in the federal crop insurance program. Under the program, Fireman’s Fund sold and serviced crop insurance policies that were reinsured by the USDA for a portion of the risks.
The United States alleged that between Jan. 1, 1999, and Dec. 31, 2002, Fireman’s Fund knowingly issued federally reinsured crop insurance policies that were ineligible for federal reinsurance. Specifically, Fireman’s Fund allegedly backdated policies, forged farmers’ signatures, accepted late and altered documents, whited-out dates and signatures, and signed documents after relevant deadlines. The policies were issued by Fireman’s Fund offices in Modesto, California; Lambert, Mississippi; Fargo, North Dakota; Lubbock, Texas; Prosser, Washington; and Overland Park, Kansas.
“Today's announcement shows how working alongside our partners in law enforcement, we will ensure the integrity of the crop insurance program for American taxpayers and producers alike,” said Risk Management Agency Administrator Brandon Willis of the USDA.
The settlement resulted from a coordinated investigation by the Justice Department’s Civil Division, the U.S. Attorney’s Office in the Western District of North Carolina and the USDA’s Office of Inspector General, Office of Investigations, Office of General Counsel, and Risk Management Agency, including its Special Investigations Branch. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Federal Jury Convicts Scientists of Wire Fraud, Identity Theft, and ObstructionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Mahmoud Aldissi (a/k/a, Matt) and Anastassia Bogomolova (a/k/a, Anastasia) guilty of conspiracy to commit wire fraud, wire fraud (7 counts), aggravated identity theft (5 counts), and falsification of records involving a federal investigation (2 counts). Aldissi and Bogomolova each face a maximum penalty of 20 years in federal prison. The sentencing hearing has been set for May 28, 2015.
According to testimony and evidence presented during the month-long trial, through their two companies, Fractal Systems, Inc., and Smart Polymers Research Corp., Aldissi and Bogomolova fraudulently obtained approximately $10.5 million worth of small business research awards from the federal government. In order to be awarded contracts, they submitted proposals using the stolen identities of real people in order to create false endorsements of and for their proposed contracts. In the proposals, they also lied about their facilities, costs, the principal investigator on some of the contracts, and certifications in the proposals.
“The Small Business Innovation Research program is a vital link in stimulating innovative technologies. The conviction of these individuals on all charges including identify theft and falsification of records sends a clear message that fraud in this program will not be tolerated,” said Allison C. Lerner, Inspector General at the National Science Foundation. “I commend the U.S. Attorney’s Office and our investigative partners for their work on this case.”
"This conviction demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to protect the integrity of all Department of Defense programs," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates violators who defraud the DoD procurement process, to preserve precious American taxpayer dollars intended to support our Warfighters."
"These guilty verdicts are another win for our organization," said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "Although these two defendants tried to cover their tracks with layers of deceptive paperwork, our special agents, in cooperation with other law enforcement agencies, were able to peel back the layers and uncover their scheme to defraud multiple government agencies."
“These defendants stole millions of dollars from the American taxpayer by systematically scheming to take contracting opportunities from legitimate business owners. This audacious scheme included several contracts awarded by the U.S. Environmental Protection Agency (EPA). The EPA’s Office of Inspector General (OIG) will continue to work with our law enforcement partners to aggressively investigate and expose these types of crimes,” said Jerry Polk, Acting Special Agent in Charge, EPA OIG Atlanta Field Office.
Paul Martin, NASA Inspector General, congratulated the prosecution team and noted that, “The NASA Office of Inspector General is committed to ensuring aggressive oversight of taxpayer funds used for scientific research by NASA contractors and grantees.”
This case was investigated by Defense Criminal Investigative Service (DCIS), National Aeronautics and Space Administration’s Office of the Inspector General (NASA-OIG), the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigation Division (Army CID), National Science Foundation’s Office of the Inspector General (NSF-OIG), the Environmental Protection Agency’s Office of the Inspector General (EPA-OIG), the Department of Energy’s Office of the Inspector General (DOE-OIG), and the Department of Homeland Security’s Office of the Inspector General (DHS-OIG). It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Federal Grand Jury Indicts Six for Conspiracy to Use Stolen Credit Card NumbersRead the Press Release
United States Attorney Deborah R. Gilg announced the indictment of six people in a conspiracy to use stolen debit and credit card account numbers. An Indictment, unsealed today, alleges between March and September of 2014, Angel A. Oramas, Jorge E. Aleman Tsuhako, Vilma E. Fernandez, Anyier Paladon, Elain Cartaya and Yusnel Abreu Lamas, agreed to use account numbers of legitimate credit and debit card holders living in various states within the United States, Japan and Spain, that had been stolen and re-encoded onto other plastic cards. The legitimate card holders had possession of their credit and debit cards; however, their account numbers were stolen and allegedly used by the defendants to purchase merchandise, food, gift cards, and gasoline from southeast Nebraska merchants including Shopko, Walmart, Sam’s Club, Home Depot, Hy-Vee Gas, Cenex, and J.C. Penney in Lincoln, Omaha, Grand Island, Beatrice, Crete and Gretna.
Three of the defendants are charged in a second count of the Indictment with possession of 15 or more unauthorized "access devices" - - the stolen debit and credit card account numbers - - on April 21, 2014. A third count of the Indictment alleges the six defendants used the unauthorized account numbers to purchase merchandise valued at $74,772.50.
The Indictment also alleges a 2004 Ford Super Duty Ford and an H&H utility trailer were used to commit the offenses, and should be forfeited to the United States.
The six defendants: Angel Oramas (42) of Columbus, Nebraska; Jorge E. Tsuhako, a/k/a Jorge E. Aleman (44), of Crete, Nebraska; Vilma E. Fernandez (48) of Wilber, Nebraska; Anyier Paladon (38), of Crete, Nebraska; Elain Cartaya (34) of Crete, Nebraska and Yusnel Abreu Lamas (29) of Grand Island, Nebraska, were arrested at various locations on Monday and entered not guilty pleas at their initial appearances before United States Magistrate Judge Cheryl R. Zwart in Lincoln, Nebraska. The possible penalties include up to 10 years in prison, $250,000 fine, and up to three years of supervised release after any prison term.
The case was investigated by the Lincoln Police Department with the assistance of the Federal Bureau of Investigation and United States Marshal's Service.
Eureka Man Pleads Guilty to ‘Washing’ BillsRead the Press Release
WICHITA, KAN. - A Eureka man pleaded guilty Monday to making counterfeit money by “washing” old bills, U.S. Attorney Barry Grissom said.
Rusty D. Banning, 35, Eureka, Kan., pleaded guilty to one count of counterfeiting. In his plea, he admitted that in May 2014 he manufactured counterfeit $50 bills by “washing” genuine bills of smaller denominations and using a computer and printer to print the image of a $50 bill on the “washed” bill.
Sentencing is set for May 27. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Grissom commended the U.S. Secret Service and Assistant U.S. Attorney Alan Metzger for their work on the case.
Employee Charged with Defrauding Memorial Herman Hospital System of Nearly $10 Million in False Invoicing SchemeRead the Press Release
HOUSTON – Kenneth Joseph Wild II, 49, of Katy, has been arrested for allegedly defrauding his employer, Memorial Herman Health Systems (MHHS), of nearly $10 million over a 14-year period, announced United States Attorney Kenneth Magidson.
Wild is expected to make his initial appearance before U.S. Magistrate Judge Mary Milloy at 10 a.m. today, at which time the government is expected to request he be detained pending further criminal proceedings.
The complaint alleges that on or about Feb. 23, 2001, Wild was appointed the manager of Printing and Mail Services, a division within MHHS which outsources the creation of all informational and promotional materials disseminated by MHHS. In this role, Wild had the responsibility for approving invoices submitted for printing services utilized by MHHS and for forwarding those invoices on to accounts payable for payments to be remitted via checks delivered by U.S. mail.
According to the complaint, on or about March 8, 2001, just two weeks after Wild’s promotion to management, an entity named Digital Designs Limited began submitting invoices to MHHS for printing and data conversion services purportedly provided to MHHS. These invoices were submitted by the Printing Services Division and Wild allegedly authorized the payments to Digital Designs. For the next 14 years, the complaint alleges Digital Designs submitted more than 200 invoices to MHHS, varying in frequency and amount each year. The Digital Designs invoices directed all payments to be remitted to a Post Office box in Houston. To date, MHHS has mailed well more than $9 million in payments to Digital Designs at that address, according to the complaint.
On March 11, 2015, MHHS’s chief audit and compliance officer received an anonymous, hand-written letter alleging the Digital Designs account was an anomalous, ghost account and asking for an investigation, according to the allegations. As a result, MHHS swiftly conducted a preliminary review of the account and immediately reached out to law enforcement to report the incident.According to the complaint, the investigation revealed that Wild allegedly opened the Post Office box where the Digital Designs payments were sent and that he had previously obtained an assumed name certificate for “Digital Designs of Texas, P.O. Box 36345, Houston, TX 77236.”
The investigation further revealed that payments remitted to Digital Designs were allegedly deposited into a bank account which was assigned to Wild with a dba of Digital Designs. The complaint further alleges that a preliminary review of the activity in that account indicates no actual business operations, but appears to be a pass-through account for Wild to allegedly disseminate payments to himself to his other bank accounts. The other accounts appear to show a pattern of significant expenditures for Wild’s credit card payments, substantial interior home improvements and enormous cash withdrawals, according to the allegations in the complaint.
If convicted of mail or wire fraud, Wild faces up to up to 20 years in federal prison and a possible $250,000 maximum fine.
The charges are the result of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Eight New Defendants Charged in Racketeering Conspiracy Related to Gang Activity in the Cherry Hill Area of BaltimoreRead the Press Release
Baltimore, Maryland - A federal grand jury has returned a superseding indictment charging eight new defendants with racketeering conspiracy, drug and gun charges related to their gang activities as members and associates of the UDH or “Up Da Hill” organization, which operates in the Cherry Hill section of Baltimore. The superseding indictment, which was returned on March 18, 2015, and unsealed on March 20, 2015, also adds new charges against four defendants charged in the original indictment.
The superseding indictment charges the following defendants:
Steven Jackson, a/k/a Cutty, age 24, of Baltimore;
Asim Benns, a/k/a Seem, age 31, of Baltimore;
Clarence Shipley, a/k/a Mook, age 27, of Baltimore;
Gregory Sykes-Bey, age 21, of Baltimore;
*Elijah Sykes-Bey, a/k/a LaLa, age 20, of Baltimore;
*Cornell Harvey, a/k/a Little Head, age 27, of Baltimore;
*James Scott, a/k/a Mook Day, age 23, of Essex, Maryland;
*Lamont Jones, a/k/a Butt Juice, age 22, of Baltimore;
*Dominic Evans, a/k/a Flatline, age 25, of Baltimore;
*Michael Smith, a/k/a Lil Mikey, age 22, of Baltimore;
*Donte Thornton, a/k/a Tay, age 30, of Baltimore; and
*Alonzo Clea, a/k/a Zo, age 25, of Baltimore.
* - indicates new defendant charged in this indictment.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
All 12 defendants are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and marijuana as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”
According to the superseding indictment, the members of UDH were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. The superseding indictment alleges that UDH members have also committed murders, attempted murders, assaults, carjackings, obstruction of justice and robberies. Specifically, the superseding indictment alleges that, beginning in 2004, UDH members committed six murders of rival gang members and/or drug dealers, and shot nine other individuals. In addition, the superseding indictment alleges that members of UDH committed home invasion, street and bank robberies in order to fund their narcotics activities.
All 12 defendants face a maximum sentence of life in prison. All are detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Eight Arrested for Role in Timeshare Telemarketing Fraud Scheme That Targeted Individuals Age 55 and OlderRead the Press Release
www.postalinspectorsurvey.com/haffar
DALLAS — Eight residents of Florida were arrested or self-surrendered over the past few days on charges outlined in a federal indictment returned by a grand jury in Dallas last month and unsealed last week. The allegations in the indictment stem from the operation of a telemarketing fraud scheme that targeted persons over the age of 55. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
The eight-count indictment charges each of the below-listed defendants with one count of conspiracy to commit mail fraud, wire fraud, bank fraud and telemarketing fraud and seven substantive counts of mail fraud, telemarketing fraud, and aiding and abetting. Each defendant made his initial appearance last week before various U.S. Magistrate Judges in the Southern and Middle Districts of Florida. The eight defendants who appeared were released on various bond conditions, and most were ordered to appear for arraignment in the Northern District of Texas on March 30, 2015, at 2:00 p.m.
Max Joseph Chilson, 36, of Lake Mary, Florida.
Gunner Dell Jenkins, 36, of Orlando, Florida.
Antonio Enrique Martinez, 43, of Kissimmee, Florida.
Richard Mendez, 44, of Kissimmee, Florida.
Victor Sanchez, 45, of Hollywood, Florida.
Angelina Laboy Smith, 37, of Orlando, Florida.
Harold Eugene Smith, a/k/a H.E. Smith, 72, of Kissimmee, Florida.
Jonathon Edward Warren, 32, of Winter Garden, Florida.
The indictment alleges that from at least March 2009 to March 2011, the above defendants conspired together and with others to commit mail, wire, bank and telemarketing fraud in connection with a telemarketing scheme that targeted and victimized persons over the age of 55 in the U.S. and in Canada. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. They misrepresented the existence of a buyer for their timeshare and solicited money from them to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with their credit cards, personal checks, bank checks, or through electronic check conversion.
As part of the conspiracy, the defendants also instituted a bogus telephone verification process to make follow-up phone calls to the targeted timeshare owners to give them the false impression they were dealing with entities that would protect their money and property, and to trick them into making recorded statements that no sale had been promised by the telemarketers.
Further, the defendants falsely represented their companies were global leaders in connecting timeshares to buyers, sellers, and renters; their companies were full-service timeshare resale companies and vacation rental agencies with more than 30 years of experience in timeshares; bona fide buyers were interested in purchasing the owner’s properties and offers exceeded the original amount paid for the properties; buyers had already paid money into an escrow account, been approved by a lender, and were ready to close; the timeshare owner would receive all the funds from the purchase within 45 to 90 days; and that the timeshare owners must pay a one-time fee to cover the title search and other closing costs before the sale could close.
After obtaining money from the timeshare owners, the defendants, in order to lull the timeshare owners and cause them to not question, investigate or report the status of the transaction, made additional false and fraudulent statements to the timeshare owners, including advising them they were protected under established telemarketing laws and could cancel their contract and request a refund by mailing written notification within seven days of receiving the contract and advising them they could phone or send correspondence to Resorts Condos Management in Irving, Texas, — which, unbeknownst to the owners was in fact, a boiler room.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of 30 years in federal prison, a mandatory 10-year penalty and a $1 million fine. Each of the seven remaining substantive counts carries a maximum statutory penalty of 20 years in federal prison, a mandatory 10-year penalty and up to a $250,000 fine. Restitution could also be ordered.
Information for Timeshare Owners Affected by the Scheme:
1. If you believe you were the victim of criminal fraud committed by any of the defendants, possibly using the below company names, please go to www.postalinspectorsurvey.com/haffar and complete the questionnaire:
Resorts Condos Management;
Timeshare Goldline;
JAMS Management;
Vision Ventures Inc.;
Timeshare Services Today;
Vacation Equity Marketing, Inc.;
Maximum Properties;
Universal Processing Services of Wisconsin, LLC, also known as Newtek Merchant Solutions;
HES Merchant Services, Inc.;
Interval Equity Marketing, Inc.;
Vacations And Resorts; and
Visionary Investments, LLC.The information you provide through the questionnaire regarding your experience may be helpful in the criminal investigation and prosecution of this case. A law enforcement agent may contact you with additional questions or to request documents you may have received or submitted during your dealings with these businesses. To access the questionnaire, please go to www.postalinspectorsurvey.com/haffar and input the user name timeshare and the password uspis.
Please note that submitting the questionnaire is NOT a substitute for consulting with your own attorney to determine what actions and remedies are available to you through civil litigation or other federal or state agencies.
2. On or after March 30, 2015, you may access the websites for the U.S. Attorney’s Office for the Northern District of Texas http://www.justice.gov/usao/txn/to obtain more information on the case or the court proceedings.
3. If you have any questions related to this matter that are not addressed at the above website, you may contact the government on or after March 30, 2015, at the e-mail address [email protected].
The U.S. Postal Inspection Service is investigating this fraud. The Orlando Police Department provided substantial assistance in the investigation and apprehension of the defendants. Assistant U.S. Attorney C.S. Heath is prosecuting.