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Monday 16 March 2015
New Jersey Man Sentenced for Taking Minor Across State Lines for SexRead the Press Release
Louay Shaman, 32, of Cliffside Heights, New Jersey, was sentenced on March 13, 2015, to eight years in prison for traveling with purpose of having illicit sexual conduct with a minor. Shaman pleaded guilty to the charge on January 6, 2014.
Shaman met the then-14-year old victim on an Internet dating site called “Are You Interested.” He conversed with her via the Internet two days before driving to her home near Allentown, Pennsylvania, meeting her for the first time, driving her back to New Jersey, and having sex with her in the car.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered 10 years of supervised release, forfeiture of the defendant’s BMW, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and a Pennsylvania local police department. It was prosecuted by Assistant United States Attorney Albert S. Glenn.
New Jersey Man Pleads Guilty to Role in Anabolic Steroid Distribution RingRead the Press Release
MONROE La. – United States Attorney Stephanie A. Finley announced today that a New Jersey man pleaded guilty for his role in importing and selling anabolic steroids.
Justin R. Kull, 28, of Turnersville, N.J., entered a conditional guilty plea for one count of conspiracy to distribute Schedule III controlled substances before U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Judge Robert G. James. According to evidence presented at the guilty plea, Kull in addition to Gary Lynn Ward, 47; and David Ray Dean, 47, both of Monroe, conspired to possess with intent to distribute anabolic steroids starting sometime in 2013 until August 27, 2013. Kull was a nurse from New Jersey who supplied quantities of steroids to Ward and Dean. Ward and Dean would also import the drugs from overseas and other domestic sources. They would then process the drugs in a makeshift lab in the Monroe area and distribute them.
Kull faces up to 20 years in prison, at least four years supervised release, and a $1 million fine. A sentencing date of June 15, 2015 was set. Dean pleaded guilty February 18, 2015, and Ward pleaded guilty March 6, 2015 to one count of conspiracy to distribute Schedule III controlled substances. Dean is to be sentenced July 6, 2015, and Ward is to be sentenced on June 15, 2015.
United States Customs and Border Patrol-Homeland Security Investigations, the U.S. Postal Inspection Service and Louisiana State Police participated in the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Monroe County Woman Pleads Guilty to Participating in Drug ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 21-year-old Tobyhanna Township woman pleaded guilty today before U.S. Magistrate Judge Karoline Mehalchick in Scranton, to participating in a conspiracy to distribute heroin and cocaine in Monroe and Wayne Counties between 2011 and 2014.
According to United States Attorney Peter Smith, the defendant, Tiffanyann Cruz, admitted to distributing heroin on two occasions in November 2013, in drug transactions that were arranged by other members of her family. Three other Cruz family members - Brandon Cruz, Rubie Cruz, and Carlos Cruz - are charged in the case and are awaiting trial
Cruz was indicted by a federal grand jury in August 2014, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, and the Wayne County District Attorney’s Office. U.S. District Court Judge Richard P. Conaboy will schedule sentencing at a later date.Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
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 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million 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.
# # #Monroe County Man Sentenced to More Than 15 Years in Prison for Role in Heroin Conspiracy and Supervised Release ViolationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 41-year-old Effort man was sentenced today to a total of 181 months in prison for his role in a heroin trafficking conspiracy and for violating conditions of his supervised release.
According to United States Attorney Peter Smith, the defendant, Kerion Johnson, previously pleaded guilty to committing the crime between November 2013 and April 22, 2014 in Monroe County. Johnson also admitted to committing the crime while he was on supervised release from an earlier federal drug conviction.
In today’s first proceeding, Senior U.S. District Court Judge Richard P. Conaboy imposed a 151-month prison sentence on Johnson for the conspiracy offense. A short time later, Senior U.S. District Court Judge James M. Munley imposed a 30-month sentence on Johnson for violating the conditions of supervised release, and ordered the 30-month sentence to run consecutive to the 151-month sentence.
In regard to the more recent offense, Johnson was charged in a Criminal Information filed by the United States Attorney on June 4, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Miami Man Sentenced to 170 Months in Prison for Prescription Drug Diversion ConspiracyRead the Press Release
Rashad Woodside, 38, of Miami, Florida, was sentenced on March 12, 2015, to 170 months in prison by U.S. District Court Chief Judge Kevin H. Sharp, for conspiring to possess and distribute a variety of diverted prescription drugs, including Oxycodone and Oxymorphone, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Woodside pleaded guilty to the charges in July 2014.
During testimony at the sentencing hearing, it was revealed that over a period of several years, Woodside sent tens of thousands of diverted prescription pills from Miami, Florida to two of his co-defendants who resided in the Middle District of Tennessee. Judge Sharp described Woodside as an “opportunist” and found that he held a leadership role in the conspiracy.
This matter was investigated by the Drug Enforcement Administration, the Lebanon Police Department, and the United States Postal Inspection Service. The United States was represented by Assistant U.S. Attorney Brent A. Hannafan.
Marshall County man convicted of cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Thaddeus Emrys Richardson, 29, of McMechen, West Virginia, was convicted in federal court today for crack cocaine trafficking in Ohio County, West Virginia in August 2014, United States Attorney William J. Ihlenfeld, II, announced.
Richardson pled guilty today to one count of “Possession with Intent to Distribute Cocaine Base.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri is prosecuting the case on behalf of the government. The Wheeling Police Department is leading the investigation.
Senior U.S. District Judge Frederick P. Stamp presided.
Many Resident Sentenced to More Than 6 Years in Prison for Distribution of MethamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Many was sentenced to 78 months in prison for distributing methamphetamine.
Marcus Johnson, 38, of Many, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of distribution of methamphetamine. He was also sentenced to three years of supervised release. According to evidence presented at the December 10, 2014, guilty plea, law enforcement agents conducted controlled buys of methamphetamine from Johnson on November 4, 7, and 12 of 2013. Johnson would conduct methamphetamine sales at various retail stores in Many.
The DEA and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Manhattan U.S. Attorney Announces Charges Against Bronx Man for Aiming A Laser Beam at AircraftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), and Michael A. Fedorko, Superintendent of Police and Director of Public Safety for the Port Authority of New York and New Jersey (“PAPD”), announced that ELEHECER BALAGUER was arrested today for aiming the beam of a laser pointer at aircraft in the vicinity of LaGuardia Airport. BALAGUER surrendered to the FBI this morning, and appeared before U.S. Magistrate Judge Debra C. Freeman in Manhattan federal court earlier today.
U.S. Attorney Preet Bharara said: “As charged, Elehecer Balaguer’s actions were simple but potentially disastrous: pointing a powerful laser at airplanes carrying hundreds of people and then at a police helicopter. In fact these actions had dire consequences that could have been worse yet, including impairing and damaging the vision of pilots with the possibility of creating real danger to the aircraft. I commend the NYPD Aviation Unit pilots who, at great risk to themselves, located the source of these incidents.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The behavior displayed by Mr. Balaguer was more than careless. Pointing a laser at an aircraft during its operation creates a dangerous situation for pilots, passengers, and innocent bystanders on the ground. The FBI will vigorously pursue these criminal acts. For the safety of all who fly, we remind the public to alert law enforcement of any known incidents of laser strikes.”
Police Commissioner William J. Bratton said: “Pointing a laser pointer at the operator of an aircraft is an irresponsible act that poses a real and immediate danger. It is important that the public understands that the intentional misuse of this device has the potential to create a devastating outcome and is against the law.”
According to the Complaint filed in Manhattan federal court today:
On March 9, 2015, three pilots of commercial airplanes arriving at or departing from LaGuardia Airport in Queens were stuck in the eyes with a bright green beam, causing the pilots to lose focus temporarily and, in two instances, briefly blinding the pilots. In response, an Air Traffic Controller at LaGuardia Airport temporarily changed the runway directions used for all airplanes arriving at and departing from LaGuardia Airport that evening, so that airplanes would avoid the laser beam.
Each of the pilots who was struck with the green beam noticed that the beam appeared to originate from the Bronx, New York. Later in the evening on March 9, 2015, officers from the NYPD Aviation Unit responded to the pilots’ complaints by flying in a helicopter (the “NYPD Helicopter”) in the vicinity of the location where the airplanes had been struck with a beam. While the NYPD Helicopter was in that area, a green beam was directed into the cockpit of the NYPD Helicopter, causing both of the pilots also to lose sight temporarily. The pilots on board the NYPD Helicopter observed that the laser beam appeared to originate from a particular second floor apartment of a building in the Bronx (the “Apartment”).
NYPD officers responded to the Apartment later in the night of March 9, 2015. BALAGUER and others were present in the Apartment. The officers recovered a laser pointer (the “Laser Pointer”) from the top of a refrigerator near the window from where the green beam that struck the NYPD Helicopter appeared to have originated. Written on the Laser Pointer is the warning: “DANGER – LASER RADIATION – AVOID DIRECT EYE EXPOSURE.” When questioned the night of March 9, 2015, BALAGUER admitted that he owned the Laser Pointer, but denied knowing who pointed the Laser Pointer at passing airplanes.
On March 13, 2015, BALAGUER admitted to law enforcement that he shined the beam of the Laser Pointer at an airplane on March 9, 2015. BALAGUER further admitted to lying to law enforcement when he was interviewed by NYPD officers on March 9, 2015.
BALAGUER, 54, is charged with one count of aiming a laser pointer at an aircraft, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
U.S. Attorney Bharara praised the investigative work of the New York FBI’s Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD, and comprises investigators from numerous federal, state, and local law enforcement agencies. Mr. Bharara also thanked the NYPD’s Aviation Unit and the Port Authority of New York and New Jersey.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Ian McGinley is in charge of the prosecution.
The charge in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Elehecer Balaguer Complaint
Man Charged in Multi-Year Fraud SchemeRead the Press Release
HOUSTON – A man believed to be from the Houston area has been arrested on allegations he engaged in an eight-year bank fraud, identity theft and money laundering scheme, announced U.S. Attorney Kenneth Magidson.
Andre Lamont Chenier, 41, was arrested late Friday, March 13, 2015, and will make his initial appearance before U.S. Magistrate Judge George Hanks at 10:00 a.m. today.
The indictment alleges Chenier engaged in a bank fraud scheme spanning from July 2004 to August 2012, during which time he obtained fraudulent commercial loans from local banks using falsified documents and someone else’s Social Security number and laundering the proceeds.
In 2004, Chenierallegedly applied for a $100,000 revolving line of credit loan from a local bank for a company called Teksync Inc. The indictment alleges he requested to have the $100,000 loan increased to $2 million in 2006. As part of his increase request, Chenier allegedly submitted a Personal Financial Statement—Business Banking that contained false and fraudulent information about stock ownership and an Ameritrade account statement that listed fictitious stock ownership and account balances. The indictment further alleges that as part of this statement, Chenier also submitted a falsified balance sheet and bank statement for Teksync that listed a bank balance of $9,309,796.16 when, in fact, the true balance was only $100.
According to the indictment, in 2011, Chenier began the process of applying for a $1,250,000 revolving line of credit loan from another bank for a company called Scott & Burgess. Similar to the other loan, Chenier allegedly submitted a Personal Financial Statement and accounts receivables report that listed fictitious assets as well as U.S. Individual Income Tax Returns that contained the Social Security number of someone else.
If convicted, Chenier faces federal prison time of up to 30 years on the bank fraud charges, 10 years on the money laundering charges as well as a mandatory two years for aggravated which must be served consecutively to any other sentence imposed.
The charges are the result of an investigation conducted by the FBI, Federal Deposit Insurance Corporation – Office of Inspector General and Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Los Angeles-Area Pharmacist Pleads Guilty to Medicare Part D Fraud SchemeRead the Press Release
A pharmacist who owned and operated a pharmacy in Los Angeles pleaded guilty today in connection with a Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office.
Rouzbeh Javaherian, 34, of Beverly Grove, California, pleaded guilty to health care fraud in connection with a scheme to defraud the Medicare Part D program through a pharmacy called Emoonah Inc., doing business as Westaid Pharmacy and Medical Supply (Westaid). According to admissions in the plea agreement, Javaherian was a licensed pharmacist and owner of Westaid, which was located in Los Angeles. From January 2008 to November 2014, Javaherian devised and executed a scheme to defraud the Medicare Part D program by paying illegal cash kickbacks to Medicare beneficiaries to induce them to submit their prescriptions to Westaid. Javaherian then filled some of those prescriptions, but also submitted false and fraudulent claims to Medicare Part D plan sponsors for prescriptions that he did not actually fill.
From January 2008 to November 2014, Javaherian received approximately $644,060 in overpayments from Medicare as the result of the fraud scheme.
Sentencing is scheduled for June 1, 2015, before U.S. District Judge Stephen V. Wilson of the Central District of California.
The case was investigated by the FBI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Trial Attorney Alexander F. Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Lewis County man convicted of painkiller traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alex Paul Jordan, 26, of Jane Lew, West Virginia, was convicted in federal court today of oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Jordan admitted to his involvement in oxycodone trafficking in Lewis County, West Virginia in January 2014. He pled guilty today to one count of “Distribution of Oxycodone – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The Lewis County Sheriff’s Office is leading the investigation.
U.S. Magistrate Judge John S. Kaull presided.
Kalamazoo Woman Indicted on Multiple Counts of Tax FraudRead the Press Release
“#1 Tax Lady” charged with filing multiple phony tax returns
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles announced today that Fontrice Lenee Charles, 39, of Kalamazoo, Michigan, appeared in federal district court today to be arraigned on 27 felony charges. The charges stem from Charles’s Kalamazoo business, “#1 Tax Lady.”
On March 6, 2015, a federal grand jury charged Charles with 27 federal felony offenses. Counts 1-25 allege that Charles filed false tax returns for others, and supplied false information designed to ensure hefty refunds, between January 17, 2011 and February 4, 2014. Further information disclosed on court records indicate that Charles prepared 482 such tax returns during this period, resulting in improper tax refunds of approximately $2,000,000. Each of these counts carries a maximum possible sentence of five years in prison and other penalties.
Counts 26 and 27 of the indictment allege that Charles’s own tax returns for 2010 and 2011 were false as well. The indictment alleges that these returns were false because they did not report the income that Charles earned as a result of her fraudulent tax preparation activity, and because she claimed a deceased person as a dependent. Filing false tax returns is a violation of federal law and each offense carries a maximum penalty of three years in prison.
Charles appeared in federal court today before Magistrate Judge Ellen Carmody. Charles requested court-appointed counsel, and the judge released Charles on bond. An arraignment and initial pretrial conference will be scheduled later this week. Chief U.S. District Judge Paul Maloney will preside over the resolution of the case. Prosecution of the matter has been assigned to Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the Grand Rapids office of the Internal Revenue Service Criminal Investigation.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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KC Man Pleads Guilty to $1.2 Million Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was injured while setting a house on fire and forced to shed his burning pants in the street, pleaded guilty in federal court today to his role in a nearly $1.2 million arson and insurance fraud conspiracy.
John S. Wayne, 31, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to one count of conspiracy to commit arson, use of a fire to commit a federal crime, mail fraud and wire fraud. In addition to the conspiracy, Wayne pleaded guilty to one count of arson.
Wayne is among six co-conspirators – all of whom have pleaded guilty – who bought, over-insured and burned five houses in Kansas City. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was $1,196,840.
On April 23, 2011, the house at 4901 Agnes partially burned, and the fire was determined to be arson. Two days later, on April 25, 2011, Wayne and co-defendant Joshua Stamps, 28, of Independence, Mo., burned the house in another arson fire. This time the house was a total loss.
A witness saw Wayne running from the house with his pants on fire. Wayne took his pants off and left them in the street. Kansas City police detectives recovered burned sweatpants and boots from the street; DNA recovered from the pants confirmed that Wayne wore the burned pants discarded in the street. A chemical analysis established that the pants and boots had evaporated gasoline on them.
Wayne was admitted to Research Medical Center with severe burns to his legs later that day. Wayne told investigators that Stamps, who was driving, refused to take him to a hospital and instead took him home and bought him some burn cream. Wayne said the burn cream wasn’t going to work so he went to the hospital.
On June 22, 2011, as a result of false and fraudulent claims, American Family Insurance issued a check for $29,881 to Kansas City Missouri Treasurer. (This is standard procedure in event of a total loss. When the insured/owner can prove the property has been cleared of debris, the check is then refunded to the owner.) Also on June 22, 2011, American Family Insurance issued a check for $88,645 to Area Contractors, which was owned by Stamps’s mother and co-defendant, Randy Stamps, 57, of Kansas City, Mo. Area Contractors issued a purported invoice and contract for $53,000, supposedly for work done at the property. However, Area Contractors did no work.
Joshua Stamps was the leader of the conspiracy. Beginning in July 2007, Joshua Stamps bought houses costing from $6,500 to $15,000. He used co-conspirators as straw owners for three of the houses, while other co-conspirators helped commit the arsons and/or acted as tenants so the properties could be classified as rentals.
In the conspiracy that lasted until 2013, Joshua Stamps and his co-conspirators insured the houses for much more than the purchase price, in amounts from $88,000 to $307,000. Joshua Stamps and his co-conspirators made false statements on the insurance applications, such as that the houses were rented and/or occupied, that there were valuable contents in the houses, and that the houses had been renovated.
Joshua Stamps and his co-conspirators set fire to the houses. The listed owner of the house that burned would then claim a total loss with the applicable insurance company and would falsely claim they had no knowledge of, or involvement in, the fire.
Under the terms of today’s plea agreement, Wayne must pay a money judgment of $434,938, which represents the proceeds of the conspiracy. Wayne is subject to a mandatory minimum sentence of five years in federal prison without parole, up to 25 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and New York Attorney General Secure Settlement with New York City Tour Bus Joint VentureRead the Press Release
The Department of Justice and New York State Attorney General today announced that they have reached a settlement with Coach USA Inc., City Sights LLC and their joint venture, Twin America LLC, to remedy competitive concerns in the New York City hop-on, hop-off bus tour market. The settlement requires the defendants to relinquish all of City Sights’ Manhattan bus stop authorizations and disgorge $7.5 million in ill-gotten profits that the defendants obtained by operating Twin America in violation of the antitrust laws.
The settlement resolves a lawsuit filed on Dec. 11, 2012, in the U.S. District Court of the Southern District of New York alleging that the March 2009 formation of Twin America violated the antitrust laws and resulted in higher prices for hop-on, hop-off bus tours in New York City. Trial had been set for Feb. 23, 2015 before the parties adjourned the trial date to facilitate settlement discussions. Today’s settlement, if approved by the court, would resolve the claims alleged in the complaint filed in this case.
“The formation of Twin America gave Coach and City Sights an unlawful monopoly over the New York City hop-on, hop-off bus tour market and allowed them to immediately increase prices to consumers,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “As a result of the joint efforts of the Antitrust Division and the New York Attorney General, Coach and City Sights will forfeit key bus stop authorizations throughout Manhattan to restore competition and surrender illegal profits they obtained from violating the antitrust laws.”
“By eliminating the competition between them, the largest operators of New York City’s iconic double-decker tour buses were able to raise prices and deprive city visitors of the benefits of a free and fair market,” said New York Attorney General Eric T. Schneiderman. “This settlement allows competition to thrive once again, and ensures that these companies did not profit from operating an unlawful and anticompetitive joint venture. I thank the Justice Department’s Antitrust Division for partnering with my office to achieve this resolution for consumers in New York.”
As alleged in the complaint, prior to the formation of Twin America, Coach, the long-standing market leader through its “Gray Line New York” brand, and City Sights, a firm that launched the “CitySights NY” brand in 2005, accounted for approximately 99 percent of the hop-on, hop-off bus tour market in New York City. Between 2005 and early 2009, the two companies engaged in vigorous head-to-head competition on price and product offerings that directly benefited consumers.
The formation of Twin America ended competition between Coach and City Sights and enabled them to increase hop-on, hop-off bus tour prices by approximately 10 percent. According to the complaint, Coach and its corporate parent, Stagecoach Group PLC, had long assumed that combining with Coach’s only meaningful competitor would allow the merged firm to raise prices and communicated this assumption to City Sights during joint venture negotiations. In early 2009, over a period of approximately two months, Coach and City Sights implemented the price increases and executed the joint venture. The joint venture continues to operate both the Gray Line New York and CitySights NY brands today.
For more than three years following Twin America’s formation, there was no new entry or expansion in the market, and Coach and City Sights sustained the 2009 price increases. Although some firms have entered since 2012, they have been unable to obtain bus stop authorizations from the New York City Department of Transportation (NYCDOT) at or sufficiently close to top attractions and neighborhoods to meaningfully compete with Twin America. NYCDOT is the city agency in charge of managing bus stop authorizations, which are required for hop-on, hop-off operators to load and unload passengers. Both Coach and City Sights hold large portfolios of bus stop authorizations covering virtually all of Manhattan’s key attractions that the firms received from the NYCDOT years ago before many locations were at capacity. The formation of Twin America gave them a dominant share of the competitively-meaningful bus stop authorizations in Manhattan.
The proposed settlement requires Twin America to divest all of City Sights’ Manhattan bus stop authorizations by relinquishing them to the NYCDOT. The relinquished bus stop authorizations include highly-coveted locations such as the areas surrounding Times Square, the Empire State Building and Battery Park, where rival firms have been chronically unable to obtain competitive bus stop authorizations. By increasing the NYCDOT’s inventory of bus stops and freeing up capacity at approximately 50 locations throughout Manhattan, the settlement will significantly ease the most intractable barrier to rivals being able to meaningfully compete with Twin America. The defendants will continue to hold Gray Line New York’s bus stop authorizations for their own hop-on, hop-off service.
The settlement also requires the defendants to disgorge $7.5 million in profits they obtained from the operation of their illegal joint venture. This amount is in addition to $19 million that the defendants had already agreed to pay to a class of consumers to settle related private litigation brought after the filing of the government’s complaint. The United States and the New York Attorney General determined that the defendants earned profits in excess of $19 million from their unlawful monopoly and that disgorgement was particularly appropriate on the facts of this case – a consummated merger involving an anticompetitive price increase and deliberate attempts to evade antitrust enforcement. The payment of $7.5 million in disgorgement will deprive the defendants of ill-gotten profits they retained even after the class settlement and deter future antitrust law violations.
In a separate but related filing, Coach USA has further agreed to reimburse the United States $250,000 in attorney’s fees and costs to resolve claims that the Coach defendants spoliated evidence and failed to meet their document preservation obligations.
The settlement of the lawsuit also requires Coach and Twin America to establish antitrust training programs and that the defendants provide the government with advance notice of any future acquisition in the New York City hop-on hop-off bus tour market that is not otherwise reportable under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act).
Coach USA is a Delaware corporation with its principal place of business in Paramus, New Jersey. Coach offers scheduled bus routes, motorcoach tours, charters and city sightseeing tours in the United States and Canada. Coach is a wholly-owned subsidiary of Stagecoach Group PLC, a leading international public transport company based in the United Kingdom.
City Sights is a New York limited liability company with its principal place of business in New York City. City Sights is part of the New York Airport Service group of companies, one of New York City’s largest operators of ground transportation, tour and sightseeing services for leisure and corporate markets.
Twin America is a Delaware limited liability company with its principal place of business in New York City.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to William H. Stallings, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court of the Southern District of New York may enter the proposed final judgment upon finding that it is in the public interest.
BACKGROUND
The transaction forming Twin America was not required to be reported under the HSR Act, and the department did not learn about the joint venture until after its consummation. The State of New York was similarly unaware of Twin America at the time of its formation, but began to investigate shortly thereafter and issued subpoenas in the summer of 2009.
After receiving the subpoenas, the defendants delayed the State of New York’s antitrust investigation by belatedly filing the transaction with the federal Surface Transportation Board (STB) and asserting that the STB had exclusive jurisdiction. The STB rejected the joint venture in early 2011 as not in the “public interest” and affirmed its ruling in early 2012, directing the defendants to either dissolve Twin America or terminate minimal interstate operations that provided the basis for STB jurisdiction. The defendants chose the latter, which removed the matter from STB jurisdiction but did nothing to address the joint venture’s anticompetitive effects in New York City. The department and New York State Attorney General’s lawsuit followed in December 2012.
Justice Department Issues Statement on the Abandonment of the National Cinemedia/Screenvision MergerRead the Press Release
Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division issued the following statement today after National CineMedia Inc. (NCM) abandoned its proposed acquisition of Screenvision LLC, which the department had filed suit to block in November:
“This result is a victory for advertisers, movie theaters and consumers. Had this merger-to-monopoly gone forward, it would have combined the only two significant cinema advertising networks in the United States, creating an unlawful monopoly in the markets for cinema advertising and preshow services. The Antitrust Division’s lawsuit, which sought to prevent the companies from merging and preserve their existing head-to-head competition, was filed late last year in the U.S. District Court of the Southern District of New York.
“Nothing harms competition more than the creation of a monopoly through merger. In recent years, NCM and Screenvision competed aggressively by offering lower prices to advertisers, a variety of attractive financial incentives to movie theaters and better products and services overall. This scheme to eliminate competition should never have been considered, much less publicly proposed. We sued to preserve the significant competition between these competitors, and with the parties’ abandonment, we achieved that result. Their decision to abandon the transaction less than a month before trial is a testament to the strength of the Antitrust Division’s case and the hard work of our talented litigation team.”
Johnson City Resident Charles Randall Whitson Sentenced to Serve 87 Months in Federal Prison for Role in Drug ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Charles Randall Whitson, 54, of Johnson City, Tenn., was sentenced on Mar. 16, 2015, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 87 months in federal prison. Whitson was previously convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
For approximately three years, Whitson participated in a large-scale crack cocaine conspiracy. He served as a street-level distributor and facilitator, repeatedly selling crack cocaine and arranging deals for others. As part of his plea agreement on file with the U.S. District Court, Whitson admitted to being personally responsible for at least 280 grams, but less than 840 grams, of crack cocaine. Whitson often used his residence as a place from which to sell crack cocaine, and let his coconspirators do the same.
As part of the investigation, law enforcement conducted seven different controlled drug transactions with members of this conspiracy. On three of those occasions, Whitson himself sold crack cocaine to individuals working with and acting under the supervision of law enforcement agents and officers.
Two others have previously been sentenced as part of this conspiracy. Michelle Nicole Lane, 33, of Blountville, Tenn., was sentenced to serve 132 months in prison. Cedric Nickose Carr, 29, of Chattanooga, Tenn. was sentenced to serve 120 months.
This case was the product of cooperation between the Johnson City Police Department, and Federal Bureau of Investigation. Assistant U.S. Attorney Nick Regalia represented the United States.
Huntington man pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that a Huntington man who participated in a heroin distribution ring in 2014, pleaded guilty today in federal court in Huntington to a drug charge. Paul A. Roberts, Jr., 21, entered a guilty plea for providing a residence in Huntington that was used by him and others as base for the distribution of heroin in the community.
From at least October of 2014 to December of 2014, Roberts and others used a home at 403 Homestead Place, Huntington, to operate their heroin distribution ring. Roberts signed a lease for the property, knowing it would be used as a base to store, package and distribute heroin.
On December 6, 2014, a United States Postal Inspector intercepted a package addressed to Roberts Homestead Place home. The package contained approximately 230 grams of heroin. After agents delivered the package, they executed a search warrant and seized heroin, equipment used to package and distribute heroin, more than $6,500 in cash, and four guns.
Roberts faces up to 20 years in federal prison, and is scheduled to be sentenced on June 15, 2015.
The Federal Bureau of Investigation Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being 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.
HHS OIG Top 10 Most Wanted Sentenced to 57 Months PrisonRead the Press Release
Contact Person: Jim May (803) 929-3000
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Columbia, South Carolina---- United States Attorney Bill Nettles stated that Karo Gotti Blkhoyan, a/k/a “Gotti,” age 34, of Glendale, California was sentenced last week in federal court in Columbia, South Carolina, for Conspiracy to Commit Money Laundering , a violation of 18 U.S.C. § 1956(h). Senior United States District Judge Cameron McGowan Currie of Columbia sentenced Blkhoyan to 57 months and three years supervised release. Blkhoyan was fugitive for approximately two years, when was arrested at the San Francisco International Airport attempting to re-enter the country.
Evidence presented established that the conspiracy was a transnational criminal organization that established a “ghost” medical clinic in South Carolina using stolen information from a South Carolina doctor. Members of the conspiracy enrolled the clinic in Medicare, established bank accounts, linked the bank accounts to a fictitious address which was a mailbox store, registered the clinic with the South Carolina Secretary of State, and began to bill Medicare. All together, the “ghost” clinic billed Medicare over 1.1 million dollars, with Medicare paying approximately $350,000 worth of claims. The money that was paid was laundered through Southern Californian banks and shell businesses by members of the conspiracy. During the sentencing hearing, Blkhoyan challenged his role in the conspiracy; however, the Court found that the defendant was a manager/supervisor of the conspiracy which increased his sentencing guidelines. Two other members of the conspiracy have previously pleaded guilty to laundering money. Four members of the conspiracy are currently international fugitives.
United States Attorney, Bill Nettles, stated ““When the rich take things that don’t belong to them they want us to call it fraud. But let’s be clear, it is stealing, it is wrong and against the law. He stole from all of us. We will continue to aggressively prosecute those who steal from us. Let there be no doubt about that.”
“Healthcare fraud is undoubtedly a lucrative business, but the business of IRS Criminal Investigation and our law enforcement partners, is to pursue criminals such as Karo Blkhoyan, and bring them to justice, no matter where they may attempt to hide.” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Blkhoyan’s sentence is a warning to others that would defraud Medicare and steal from the programs that provide assistance for individuals in need. We will investigate every dollar, every fraudulent claim, and when you are found, you will go to prison.”
"Our agency is dedicated to investigating those responsible for health care fraud, including this former Most Wanted health care fugitive, who stole scarce taxpayer money meant to pay for legitimate patient care,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General’s Atlanta region. “Working closely with our law enforcement partners, our agents are determined to hold such fraudsters accountable for their crimes."
“Health care fraud affects every American. Waste, fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for all Americans. The sentencing of Karo Blkhoyan, shows the commitment of the FBI to stop those who would illegally manipulate the system. We are pleased with Blkhoyan’s sentence to 57 months,” stated Special Agent Charge, David A. Thomas, Columbia FBI Field Office.
The case was investigated by agents of the HHS OIG, IRS CID and FBI. Assistant United States Attorney Jim May of the Columbia office prosecuted the case.Georgia Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity Theft for Credit Card Fraud SchemeRead the Press Release
BOISE – Brian Treadwell, 25, of Buford, Georgia, pleaded guilty today in United States District Court to one count of conspiracy to commit wire fraud and one count of aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Sentencing is set for June 16, 2015, before U.S. District Chief Judge B. Lynn Winmill.
Treadwell was indicted, along with Rakeen Anderson, 31, of Atlanta, Georgia; Kyandre Banks, 34, of Lilburn, Georgia; Terrance Barimah, 26, of Floranceville, Georgia; Clarence Collins, 34, of Douglasville, Georgia; Jean Estinville, 26, of Lawrenceville, Georgia; Rashine Kale, 38, of Lawrenceville, Georgia; Charles Moore, 25, of Stone Mountain, Georgia; Jonathan Penn, 20, of Suwanee, Georgia; and Mikki Williams, 24, of Atlanta, Georgia on charges relating to a wire fraud and identity theft scheme. Banks, Collins, Estinville, Kale, Moore, Penn, Treadwell, and Williams were each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson was charged with conspiracy to commit wire fraud and wire fraud. Barimah was charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
According to the plea agreement, Treadwell traveled to the District of Idaho, along with his co-defendants, for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded onto stock debit cards. Treadwell admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers, and making purchases at retail stores on October 5, 2014. In all, Treadwell admitted to traveling to four separate retail stores, and making eight total purchases, using six different credit cards numbers that he was not authorized to use. Upon his arrest, Treadwell was found in possession of 10 debit cards encoded with unauthorized credit card numbers.
Conspiracy to Commit Wire Fraud is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not more than three years, and a $100 special assessment. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100. As part of his plea, Treadwell also agreed to forfeit $49,953.41 in cash proceeds of the charged offenses.
Co-defendants Anderson, Barimah, Collins, Estinville, Kale, Moore, Penn, and Williams are currently scheduled for a jury trial on April 27, 2015. Co-defendant Kyandre Banks remains a fugitive.
The case was investigated by the United States Secret Service and the Boise Police Department.
Fresno Woman Pleads Guilty to Embezzling Money from Vocational CollegeRead the Press Release
FRESNO, Calif. —Sandi Marie Hollifield, 49, of Fresno, pleaded guilty today to theft from a program receiving federal funds, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hollifield worked under contract at Galen College, a now-defunct vocational college in Fresno, as a bookkeeper. Beginning in September 2008, Hollifield embezzled money from Galen College by creating false invoices for supplies and charging Galen College for those supplies. These charges caused Galen College to issue checks paying the false invoices to Hollifield under the name of her fictitious business, “Total Business Forms.” Between September 15, 2008, and April 13, 2010, Hollifield deposited Galen College checks made payable to Total Business Forms totaling approximately $85,448.
This case is the product of an investigation by the Department of Education, Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Hollifield is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on June 15, 2015. Hollifield faces a maximum statutory penalty of 10 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.
Former Letter Carriers Plead Guilty to A Drug Distribution Conspiracy and to Accepting Bribes to Divert Packages Containing MarijuanaRead the Press Release
Baltimore, Maryland – A former U.S. Postal Service (USPS) letter carrier, Antoinette McDaniels, age 46, of Windsor Mill, Maryland, pleaded guilty today to a bribery and drug conspiracy in which she accepted bribes to divert packages of marijuana sent through the mail and deliver the packages to co-conspirators. Former USPS letter carrier, Hilary Gainey, age 26, of Baltimore, pleaded guilty to the same charges on March 6, 2015.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.
“The US Postal Inspection Service is determined to protect Postal employees and the US Mail from criminal misuse and unsafe elements,” said David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service - Washington Division. Inspector McGinnis continued, “Postal Inspectors will continue to team with our law enforcement partners to pursue those individuals who would endanger Postal employees and corrupt the US Postal Service to further their criminal enterprises.”
According to the their plea agreements, McDaniels and Gainey conspired with others who paid them bribes in exchange for diverting packages containing marijuana and delivering those packages to the co-conspirators.
Specifically, Gainey and McDaniels admitted that in December 2013 and January 2014, respectively, while they were employed by the U.S. Postal Service as letter carriers, they agreed to divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to co-conspirators, in exchange for $100 per parcel. According to their plea agreements, the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland.
During the course of the conspiracy Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to their co-conspirators, and were paid approximately $100 per delivery. In addition, McDaniels received a total of $1,700 from co-conspirators in the form of “loans” that they never requested to be paid back. Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators. The total amount of marijuana distributed by McDaniels during the course of the conspiracy was between 80 and 100 kilograms. During her participation in the conspiracy, Gainey is responsible for the distribution of between 100 and 400 kilograms of marijuana.
McDaniels and Gainey each face a maximum sentence of five years in prison for the bribery conspiracy and two years in prison for bribery. McDaniel faces a maximum of 20 years in prison and Gainey faces a mandatory five years and up to 40 years in prison, for conspiracy to distribute and possess with intent to distribute marijuana. U.S. District Judge J. Frederick Motz has scheduled sentencing for McDaniels on May 8, 2015, at 10:00 a.m. and for Gainey on June 5, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.
Former Freedom Industries executives plead guilty to environmental crimesRead the Press Release
CHARLESTON, W.Va. – William E. Tis and Charles E. Herzing, former owners, officers, and directors of Freedom Industries, Inc., pleaded guilty in federal court in Charleston today to an environmental crime in connection with the January 2014 Elk River chemical spill, U.S. Attorney Booth Goodwin announced. Both men pleaded guilty to causing the unlawful discharge of MCHM into the Elk River without a permit. Sentencing is set for June 22, 2015.
The case is being investigated by the Federal Bureau of Investigation and the Environmental Protection Agency – Criminal Investigation Division.
Tis and Herzing’s plea agreements, which include stipulations of facts in which they admit their criminal conduct, are linked below.
Flatwoods, WV man convicted of assaulting federal employeeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Albert L. Fuhrmaneck, 50, of Flatwoods, West Virginia, was convicted in federal court today of assaulting a Department of Veterans Affairs employee, United States Attorney William J. Ihlenfeld, II, announced.In June 2014, Fuhrmaneck engaged in a verbal and physical confrontation with employees of the Department of Veterans Affairs Community Based Outpatient Clinic in Sutton, West Virginia.
Fuhrmaneck pled no contest today to one count of “Simple Assault on Federal Property.” He faces up to six months in prison and a fine of up to $5,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Fuhrmaneck’s plea of no contest, which has the same legal effect as a guilty plea, was accepted over the objection of the government.
Assistant U.S. Attorney Andrew Cogar is prosecuting the case on behalf of the government. The Department of Veterans Affairs Police are leading the investigation.
U.S. Magistrate Judge John S. Kaull presided.
Executive Office for Immigration Review Releases FY 2014 Statistics YearbookRead the Press Release
FALLS CHURCH, Va. - The Executive Office for Immigration Review (EOIR) today announced the release of its Fiscal Year (FY) 2014 Statistics Yearbook.
The book is a representation of data that EOIR tracked and compiled during the previous fiscal year. As in previous years, the figures and tables contained within the book examine respondents' cases by nationality, language, and disposition, and provide detailed information surrounding asylum cases.
"The annual publication of the Statistics Yearbook is one way in which EOIR works to provide transparency into the agency's daily work," said EOIR Director Juan P. Osuna. "We believe that providing our stakeholders with this tool allows for an improved understanding about agency policies and procedures."
Hard copies of the publication are not available to the public, but a user-friendly version is available at http://www.justice.gov/eoir/statspub/fy14syb.pdf.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
District Man Sentenced to 15 Years in PrisonRead the Press Release
District Man Sentenced to 15 Years in Prison
For Killing Man Following Brief Argument Over Beer
Shooting Took Place at Northwest Washington Park
WASHINGTON - James Johnson, 32, of Washington, D.C., has been sentenced to 15 years in prison for fatally shooting a man last year at a park in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Johnson pled guilty in November 2014, in the Superior Court of the District of Columbia, to voluntary manslaughter while armed for the death of Talbert Bright. The plea, which was contingent upon the Court’s approval, called for a prison term of 15 years. The Honorable John Ramsey Johnson accepted the plea on March 13, 2015, and sentenced Johnson accordingly. Upon completion of his prison term, Johnson is to be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of June 28, 2014, Johnson was in a small park in the 200 block of Massachusetts Avenue NW, drinking beer with other individuals who had come there for a social gathering. Johnson had a small cooler filled with several cans of beer. Mr. Bright, 48, who had been in the park earlier that evening but had left to go home, returned to the park at about 2:45 a.m.
Shortly after Mr. Bright arrived, he and Johnson engaged in a brief verbal argument over beer. Mr. Bright took sneakers out of his duffel bag to change into from the sandals he had on his feet. While Mr. Bright changed into his sneakers, Johnson reached into a black backpack and took out a .9 mm pistol, pointed the gun at Mr. Bright, and fired several times. Mr. Bright was hit three times, once in the center of his chest. He was transported to Washington Hospital Center, where he was pronounced dead shortly thereafter.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the First Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Allen and Paralegal Specialist Lashone Samuels. Finally, he acknowledged the efforts of Assistant U.S. Attorney Richard DiZinno, who prosecuted the case.
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Detroit man pleads guilty to distributing heroin in HuntingtonRead the Press Release
Huntington, W.VA. – United States Attorney Booth Goodwin announced that Keith Cornell McKinney, also known as “Tony,” 32, of Detroit, Michigan, pleaded guilty today to distribution of heroin.
McKinney admitted that on October 9, 2013, he sold heroin to an informant working for the Huntington Drug & Violent Crimes Task Force. The transaction occurred at a residence on Rear 30th Street in Huntington.
McKinney who is scheduled to be sentenced on June 15, 2015, faces up to 20 years in federal prison and a $1 million fine.
The case is being investigated by the Federal Bureau of Investigation, Barboursville Police Department, Cabell County Sheriff’s Department and the Huntington Drug & Violent Crimes Task Force. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
This case is being 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.
Department of Justice Files Suit Against Storage Company for Unlawfully Selling Service Members' BelongingsRead the Press Release
The Department of Justice has filed a lawsuit to recover damages from a storage company that allegedly violated the Servicemembers Civil Relief Act (SCRA) when it sold service members’ personal property without obtaining the necessary court orders. The defendants in this lawsuit are Daniel E. Homan and Horoy Inc., doing business as Across Town Movers—a San Diego, California, storage company. Homan is the President and sole owner of Horoy Inc.
The SCRA protects the rights of service members while on active duty by suspending or modifying certain civil obligations. The law states that a storage lien may not be enforced against service members during, or 90 days subsequent to, their period of military service without a court order. The Department of Justice’s complaint alleges that, since 2011, Across Town Movers sold the personal property of 11 service members without obtaining a required court order.
The complaint further alleges that after illegally selling one of the service member’s personal property, Across Town Movers continued to receive regular payments from the United States for storage of the sold property. That service member is U.S. Navy Master Chief Petty Officer Thomas E. Ward.
In 2006, Master Chief Ward, a 30-year veteran, was deployed overseas. He placed his valuable car parts and many household items into storage, and entrusted Across Town Movers to keep his personal property safe until he returned. Just before he returned home, he learned that Across Town Movers had auctioned all of his stored personal property, including vintage original car parts.
“Federal law does not allow storage companies to sell the contents of a service member’s storage lot without a court order,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Storage companies should check the Defense Department’s military database and other resources before conducting any auction to see if the customer is protected by the Servicemembers Civil Relief Act. The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to devote time and resources to make sure that they are given the legal protections they deserve.”
“Service members, especially when deployed overseas, should be able to focus on protecting our county and shouldn’t have to worry about losing their personal property,” said U.S. Attorney Laura E. Duffy of the Southern District of California. “Congress enacted the SCRA for this purpose, and we will pursue all appropriate remedies to ensure that our service members’ rights are protected. Whether large or small, businesses will be held accountable for violating those rights.”
In addition to seeking damages for the value of the auctioned goods, the SCRA provides for civil monetary penalties of up to $55,000 for the first offense and $110,000 for each subsequent offense. The Department of Justice will also seek injunctive relief.
This lawsuit was filed today in the Southern District of California. This matter resulted from a referral to the Justice Department by the U.S. Navy.
Service members and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting service members is available at www.servicemembers.gov.
This matter is being handled by Assistant U.S. Attorneys Dylan M. Aste and Leslie M. Gardner of the Southern District of California.
Department of Justice Files Suit Against Storage Company for Unlawfully Selling Servicemembers’ BelongingsRead the Press Release
SAN DIEGO – The Department of Justice has filed a lawsuit to recover damages from a storage company that allegedly violated the Servicemembers Civil Relief Act when it sold service members’ personal property without obtaining the necessary court orders. The defendants in this lawsuit are Daniel E. Homan and Horoy Inc., doing business as Across Town Movers—a San Diego, California, storage company. Homan is the President and sole owner of Horoy Inc.
The Servicemembers Civil Relief Act, known as SCRA, protects the rights of service members while on active duty by suspending or modifying certain civil obligations. The law states that a storage lien may not be enforced against service members during, or 90 days subsequent to, their period of military service without a court order. The Department of Justice’s complaint alleges that, since 2011, Across Town Movers sold the personal property of 11 service members without obtaining a required court order.
The complaint further alleges that after illegally selling one of the service member’s personal property, Across Town Movers continued to receive regular payments from the United States for storage of the sold property. That service member is U.S. Navy Master Chief Petty Officer Thomas E. Ward.
In 2006, Master Chief Ward, a 30-year veteran, was deployed overseas. He placed his valuable car parts and many household items into storage, and entrusted Across Town Movers to keep his personal property safe until he returned. Just before he returned home, he learned that Across Town Movers had auctioned all of his stored personal property, including vintage original car parts.
“Service members, especially when deployed overseas, should be able to focus on protecting our county and shouldn’t have to worry about losing their personal property,” said U.S. Attorney Laura E. Duffy of the Southern District of California. “Congress enacted the SCRA for this purpose, and we will pursue all appropriate remedies to ensure that our service members’ rights are protected. Whether large or small, businesses will be held accountable for violating those rights.”
“Federal law does not allow storage companies to sell the contents of a servicemember’s storage lot without a court order,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Storage companies should check the Defense Department’s military database and other resources before conducting any auction to see if the customer is protected by the Servicemembers Civil Relief Act. The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to devote time and resources to make sure that they are given the legal protections they deserve.”
In addition to seeking damages for the value of the auctioned goods, the SCRA provides for civil monetary penalties of up to $55,000 for the first offense and $110,000 for each subsequent offense. The Department of Justice will also seek injunctive relief.
This lawsuit was filed today in the Southern District of California. This matter resulted from a referral to the Justice Department by the U.S. Navy.
Service members and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting service members is available at www.servicemembers.gov.
This matter is being handled by Assistant U.S. Attorneys Dylan M. Aste and Leslie M. Gardner of the Southern District of California.
Clarksburg man sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joseph Scott Green, 46, of Clarksburg, was sentenced to 66 months in prison for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.During a December 2012 traffic stop, Green, also known as “Scotty,” was discovered in possession of bath salts and a loaded 12 gauge shotgun. He pled guilty in November 2014 to one count of “Possession with Intent to Distribute Controlled Substance Analogue,” and one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.” He was sentenced to sixty months in prison for the firearm offense and six months in prison for the drug trafficking offense.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, led the investigation.
U.S. District Judge Irene M. Keeley presided.
Christopher C. Myers Appointed as Acting United States Attorney for the District of North DakotaRead the Press Release
FARGO - The Executive Office of United States Attorneys has selected Christopher C. Myers to serve as Acting United States Attorney pending the confirmation of a presidentially-appointed United States Attorney for the District of North Dakota.
Chris started in the office as an Assistant United States Attorney in 2002 after being hired by former United States Attorney Drew Wrigley and has been a federal prosecutor in the U.S. Attorney's office for nearly thirteen (13) years, spending ten (10) years as the Organized Crime Drug Enforcement Task Force (OCDETF) prosecutor. In the OCDETF role, Chris specialized in identifying, targeting, and dismantling criminal enterprises of national and international scope.
In December of 2013 Chris was promoted to First Assistant United States Attorney by former United States Attorney Tim Purdon and served as second-in-command of the U.S. Attorney's Office.
Prior to joining the U.S. Attorney's Office Chris was the Chief Assistant Clay County Attorney (1998-2002) and an Assistant Cass County States Attorney (1997-1998).
Before becoming a prosecutor, Chris was a Special Agent with the North Dakota Bureau of Criminal Investigation, specializing in narcotics investigations.
Chris is a graduate of Fargo North High School, North Dakota State University, and earned a Masters Degree in Public Administration as well as his law degree from Drake University.
Chesapeake Man Sentenced for Distribution of Child PornographyRead the Press Release
NORFOLK, Va. – Michael Odell Shaddeau, 31, of Chesapeake, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for distribution of child pornography.
Shaddeau pleaded guilty to a criminal information on December 2, 2014. According to court documents, Shaddeau was discovered distributing and trading images of child pornography via e-mail using his Sony PlayStation Vita handheld console. Homeland Security Investigations and parallel agencies made the discovery which resulted in Shaddeau’s identification.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., and Colonel K. L. Wright, Chief of Police, Chesapeake Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
This case was investigated by Homeland Security Investigations and the Chesapeake Police Department. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr143Car Salesman Sentenced to Prison for Odometer Fraud SchemeRead the Press Release
A car salesman was sentenced earlier today in U.S. District Court in Los Angeles to serve one year and one day in prison on charges related to an odometer tampering scheme, the Justice Department announced.
Jeffrey Levy, 63, of Woodland Hills, California, was also ordered to pay $115,818.80 in restitution to victims who purchased vehicles without knowing the odometers displayed incorrect mileages. In November 2014, Levy pleaded guilty to one count of conspiracy to tamper with odometers.
“A car salesman should know better than anyone that odometer tampering is a fraud and a crime,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “As this prosecution demonstrates, criminals with an electronic tool can easily alter electronic vehicle odometers, defrauding future car buyers.”
Levy was a salesman at Galpin Ford in North Hills, California. In his guilty plea, Levy admitted that he referred customers and friends to his co-conspirator, Shamai Salpeter, who rolled back odometers in the driveway of his residence in Woodland Hills. Salpeter was also charged and pleaded guilty to odometer tampering and conspiracy to commit odometer fraud and is scheduled to be sentenced on April 13.
Levy knew that some of his customers had exceeded the maximum allowed mileage under the terms of their leases and wished to avoid fees and penalties. He knew that other customers wanted to lower the mileage on their odometers to make their vehicles more valuable when they traded in the vehicles. After Salpeter altered the odometers, Levy’s customers returned or traded in their vehicles with false, lower mileage readings. Levy accepted the vehicles without alerting Galpin Ford that the odometer readings were false. Future purchasers of the vehicles were defrauded because they purchased vehicles with false odometer readings. Galpin Ford cooperated with the government’s investigation.
“Tampering with odometers is a crime that puts consumers’ lives and wallets at risk,” said Administrator Mark Rosekind of the National Highway Traffic Safety Administration (NHTSA). “Not only do purchasers end up paying more for used cars, but rolling back the mileage on odometers hides necessary information that could ultimately affect a car’s safety and the costs of future repairs to consumers.”
This case is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch. The case was investigated by the NHTSA’s Office of Odometer Fraud Investigation and California’s Department of Motor Vehicles.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website, and tips on detecting and avoiding odometer fraud are available at this page.
Attorney General Holder Applauds Settlement to Improve Right to Counsel in New York StateRead the Press Release
Attorney General Eric Holder on Monday hailed the outcome in a lawsuit challenging the lack of funding for public defender programs in five counties in New York State, calling the finalized settlement in the case a “major step forward.”
In September 2014, the Justice Department had filed a statement of interest in the case, known as Hurrell-Harring v. State of New York. This represented the first time the department addressed the constructive denial of counsel in state courts. After extensive negotiations, the parties reached a settlement, which Judge Gerald Connolly of the Supreme Court of the State of New York, Albany County, has now signed. The settlement agreement, which applies to five New York counties, guarantees that indigent criminal defendants will have legal counsel at arraignment, establishes and implements caseload and workload standards for public defenders, provides for effective supervision and training of public defenders and sets new indigency standards for determining whether a defendant is entitled to public counsel.
“This settlement marks a major step forward in the safeguarding of the essential right to effective legal representation, which stands at the core of America’s criminal justice system,” said Attorney General Eric Holder. “It is simply unacceptable that, today – more than half a century after the Supreme Court’s landmark decision in Gideon v. Wainright affirmed the right to counsel for low-income defendants – America’s indigent defense systems continue to exist in a state of crisis, and inequities remain all too common. That’s why, especially in recent years, the Department of Justice has fought tirelessly to ensure effective representation for all who are charged with crimes. With this settlement, we send a clear message that this fight will continue. And we will never waver in our commitment to ensuring that all Americans receive the rights and protections to which they are entitled.”
“This important settlement agreement is a model, not just for the five counties named in the case, but for all of New York State, and for the country,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The right to counsel is one of the core guarantees of the Bill of Rights, and yet, as countless cases and studies show, indigent defense systems across the county are facing significant challenges in meeting their Sixth Amendment obligations.”
In Hurrell-Harring the plaintiffs alleged that a lack of funding for indigent defense deprives public defenders of the time or resources to prepare cases or meaningfully represent their clients and amounts to the denial of counsel in violation of Gideon v. Wainwright and the Sixth Amendment. In its statement of interest, the department advised the court that under resourcing public defense may force even otherwise competent and well-intentioned public defenders into a position where they are, in effect, a lawyer in name only. The statement of interest added that if the court finds that the plaintiffs have been constructively denied the right to counsel on a systemic basis, the court has broad injunctive authority to remedy those constitutional violations.
The Hurrell-Harring case was filed in 2007 and brought by former indigent defendants who faced criminal charges in Onondaga, Ontario, Schuyler, Suffolk and Washington counties in the state of New York.
Armed Heroin Trafficker Sentenced 5 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Christian Montalvo, 40, of Providence, was sentenced today to 60 months in federal prison for trafficking heroin and for being a felon in possession of a firearm, announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston field division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Montalvo to serve 3 years supervised release upon completion of his prison term. Montalvo pleaded guilty on November 4, 2014, to one count each of possession of heroin with the intent to distribute and being a felon in possession of a firearm.
Montalvo entered his guilty plea as jury selection was underway for his federal court trial. No plea agreement was filed in this matter.
According to court documents, on November 14, 2013, ATF agents executed a court authorized federal search warrant at Montalvo’s residence and of his vehicle. As a result of the search, agents seized nearly 10 grams of heroin found stashed inside a void in a bedroom door; a loaded .38 caliber revolver and various items used in the preparation and distribution of heroin discovered in the kitchen; and more than 58 grams of heroin from inside a hidden compartment inside Montalvo’s vehicle.
According to court documents, Montalvo admitted to an ATF agent that the drugs and the firearm were his and that he purchased the firearm for $200 from a heroin user for protection.
Montalvo has been detained in federal custody since his arrest on November 14, 2013.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Providence Police assisted ATF in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Anthony Montesino of Bronx, New York Sentenced to Time Served and Two Years of Supervised Release After Conviction of Possession of A Firearm as A Convicted FelonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Anthony Montesino, 31, of Bronx, New York was sentenced today to a time served sentence for possessing a firearm as a convicted felon. United States District Judge William K. Sessions III also ordered that Montesino serve a two-year period of supervised release.
According to court records, Luis Santiago, Gilbert Bahamundi, Krystal Brace, and Anthony Montesino were involved in the distribution of crack cocaine in the Burlington area during the summer of 2013. Between June and September 2013, law enforcement conducted controlled purchases of crack cocaine from Brace’s apartment. On September 11, 2013, a search warrant was executed at Brace’s apartment, where law enforcement encountered Santiago, Brace, Bahamundi, and Montesino. Law enforcement recovered three handguns --- a Walther .380 caliber pistol, a Glock .40 caliber pistol, and a Ruger .380 pistol. Also recovered from both Santiago and the apartment generally was a total of approximately $8,000 in cash.
Investigation determined that all three of the pistols had been straw-purchased
shortly before the execution of the search warrant. All of the individuals found in the apartment were charged federally: Santiago and Bahamundi were ultimately charged with conspiracy to distribute 28 grams or more of cocaine base; Brace was charged with making false statements to a federally licensed firearms dealer in connection with the purchase of the Ruger .380 pistol; and Montesino was charged with possessing a firearm as a convicted felon. In addition, John Olsen was charged with making false statements to a federally licensed firearms dealer, in connection with his purchase of the Glock handgun. On November 24, 2014, Santiago was sentenced to 72 months in prison and 4 years of supervised release; on October 27, 2014, Bahamundi was sentenced to 18 months in prison and 4 years of supervised release; and on October 6, 2014, John Olsen was sentenced to 1 year of probation. Brace has not yet been sentenced.This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Burlington Police Department, with the assistance of the United States Marshals Service. The government was represented by Assistant U.S. Attorney Kevin J. Doyle. Montesino was represented by Ian P. Carleton, Esq.
Alhambra Man Sentenced for Distribution and Receipt of Child PornographyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 13, 2015, Robert E. Godsey, 35, Alhambra, IL, was sentenced for Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 1), Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct (Count 2), and Possession of Visual Depictions of Prepubescent Minors Engaged in Sexually Explicit Conduct (Count 3). Godsey received 210 months in federal prison on each count, to run concurrently; 5 years’ supervised release on each count, also to run concurrently; fined $300 on each count, for a total fine of $900; and ordered to pay a $300 special assessment. Godsey has been detained since pleading guilty to the offenses on December 11, 2014.
On July 8, 2014, a special agent with the Department of Homeland Security, Homeland Security Investigations (HSI), obtained a federal search warrant to search a residence in Alhambra occupied by Godsey and others for evidence of child pornography offenses that may have been committed by Godsey. When executing the search warrant, officers seized a Samsung notebook computer from Godsey’s bedroom.
On the same day that the search warrant was executed, Godsey waived his Miranda rights and provided a voluntary, videotaped statement in which he admitted collecting and trading images and videos of minors engaged in sexually explicit conduct with other collectors of child pornography via the internet. Godsey said that he was the only user of the Samsung notebook computer, and that there would be some images and/or videos depicting minors under the age of twelve (prepubescent minors) engaged in sexually explicit conduct. A forensic review of the notebook computer revealed numerous video and image files of minors engaged in sexually explicit conduct and, as acknowledged by Godsey, some of these images and videos were of minors under the age of twelve.
After obtaining Godsey’s consent to assume control of the e-mail account used to trade image and video files of minors engaged in sexually explicit conduct, a special agent with HSI accessed the e-mail account and found video and image files of minors engaged in sexually explicit conduct on the account, many of which involved prepubescent minors. This confirmed Godsey’s statement that he traded images and videos of minors engaged in sexually explicit conduct, many of which depicted prepubescent minors, with other individuals online.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case was assigned to Assistant United States Attorney Angela Scott.
Akron physician sentenced to five years in prison for illegally distributing prescription painkillersRead the Press Release
An Akron physician was sentenced to more than five years in prison for illegally distributing tens of thousands of doses of prescription painkillers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Joseph P. Reagan, Special Agent in Charge of the Drug Enforcement Administration’s Detroit office.
Brian Heim, 56, was sentenced to 63 months in prison. He previously pleaded guilty to one count of conspiracy to distribute controlled substances and 20 counts of distribution of controlled substances.
“Our region is awash in opioids that have brought heartbreak and suffering to countless families,” Dettelbach said. “We will continue to work with the DEA to identify and prosecute physicians who illegally divert pills.”
Heim was registered with the State of Ohio Medical Board as a medical doctor specializing in family medicine, obstetrics and gynecology. From August 2011 through October 2012, Heim and others agreed to illegally distribute thousands of doses of prescription painkillers to customers from Heim’s office at 3562 Ridge Park Drive, Suite A, in Akron, according to court documents.
Heim distributed and dispensed more than 30,000 tablets of Oxycodone, Oxycontin and Opana to various individuals for which there was not a legitimate medical purpose. He did this by one or more of the following manners: without adequate verification of the patient’s identity or medical complaint; without adequate and reliable patient medical history; without performance of a complete or adequate examination; without establishment of a true diagnosis; without the use of appropriate diagnostic or laboratory testing, and others, according to court documents.
Heim and others did this by using pre-signed blank prescription forms upon which Heim’s staff would fill in the controlled substance and dosage to be prescribed, according to court documents.
The case was prosecuted by Assistant U.S. Attorney Vasilie C. Katsaros following an investigation by the Drug Enforcement Administration.
Sunday 15 March 2015
Statement by Attorney General Holder on Arrest in Officer Shootings in Ferguson, MissouriRead the Press Release
U.S. Attorney General Eric Holder released the following statement Sunday regarding the arrest of Jeffrey Williams in the shooting of two law enforcement officers outside the Ferguson, Missouri Police Department on Thursday:
“This arrest sends a clear message that acts of violence against our law enforcement personnel will never be tolerated. The swiftness of this action is a credit to the significant cooperation between federal authorities and the St. Louis County Police Department. The ATF’s ballistic imaging technology has played a critical role in the ongoing investigation. I commend both the ATF and St. Louis police for their tremendous work in identifying this suspect.
“In the days ahead, we will continue to partner with the authorities in St. Louis County to secure justice for all those affected by this heinous and cowardly crime. And we will continue to stand vigilant in support of public safety officers and the communities they serve.”
Saturday 14 March 2015
Ukrainian Businessman Arrested in Austria on U.S. International Corruption Conspiracy ChargesRead the Press Release
CHICAGO ― Dmitry Firtash, 48, a Ukrainian businessman, was arrested Wednesday by Austrian authorities in Vienna on a provisional arrest request based on charges filed in the Northern District of Illinois, announced Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
The charges result from an investigation, which the FBI has conducted for several years, of an alleged international corruption conspiracy. Firtash’s arrest is not related to recent events in Ukraine.
Firtash, who controls Group DF, an international conglomerate of companies, remains in Austrian custody unless he meets the bail condition of posting a €125 million bond, which was set today in a Vienna court. The U.S. government will seek his extradition.
The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The department has worked closely with and has received significant assistance from its law enforcement counterparts in Austria and greatly appreciates their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs. The Chicago Office of the FBI conducted the investigation.
Friday 13 March 2015
West Reading Man Charged with Illegal Reentry After DeportationRead the Press Release
Hostyn Manuel Perez-Corza, a/k/a “Christian Moises Perez-Corza,” 34, of West Reading, PA, was charged yesterday by indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 22, 2014, Perez-Corza, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about January 14, 2010 and February 26, 2014.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Week in Review –south BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Brandon Heuer, 28, of Michigan City, Indiana pled guilty to the felony offense of conspiring to distribute heroin. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for June 11, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Adrian Williams, 42, of La Porte Indiana was sentenced to 6 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of manufacturing marijuana. According to documents filed in this case, on September 21, 2013, law enforcement came to a building Williams owned in La Porte County. Officers found a marijuana grow in the building owned by Williams. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Ronnie Seward, 26, of South Bend, Indiana was sentenced to 63 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance cocaine base (crack). According to documents filed in this case, on April 10, 2014, Seward possessed a package containing a white rocklike substance that he believed was cocaine base (crack). He possessed the item in a residence in South Bend, Indiana, which is in the Northern District of Indiana. It was his intent to sell the substance. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Marie Henderson, 36, of Bristol, Indiana was sentenced to 24 months imprisonment with 1 years supervised release and restitution of $99,786.64 after pleading guilty to the felony offense of willfully aiding, assisting and advising in the preparation and presentation to the Internal Revenue Service, of U.S. Individual Income Tax Returns, Forms 1040 which were false as to a material matter. According to documents filed in this case, on From 2009 through 2012, Henderson was the sole owner and employee of Four Seasons Finance, a tax return preparation business which she operated out of her home in Bristol, Indiana. She was a tax return preparer and clients paid for her services to prepare and file electronically their tax returns. Henderson learned how to prepare tax returns, having learned the process while working at H & R Block from 2004-2008. The 1040 Returns she prepared for many of her clients contained materially false information in the form of Schedule C deductions. These Schedule C deductions consisted of false business income, business mileage, and/or false car and truck expenses. These expenses were not supported by any documentation nor was the information provided to her by the client. Henderson purposely prepared the Schedule C deductions so that her clients would receive larger tax refunds than what they legitimately deserved. In particular, she prepared tax returns for FBR and his wife WER in 2009, 2010 and 2011. The couples' sources of income consisted of pension retirement benefits, military disability payments, social security disability payments and investment interest. Specifically, she prepared for the tax year 2010, Form 1040 Tax Return for her clients FBR and WER. These clients provided her with documentation associated with the sources of income stated above. Henderson prepared the Form 1040 and included Schedule C, which listed a false mileage claim of 100,000 miles and car and truck expenses of $50,000. Both FBR and WER were retired and neither owned a business, partnership or joint venture in which business expenses could be legitimately claimed. By supplying this false information, the 2010 Tax return showed a business loss of $50,000 which generated an incorrect adjusted gross income tax figure and with their deductions, garnered them a refund of $4,955. She purposely electronically filed this return with the false information she added to the return. She does not dispute the IRS records deemed this return filed on March 7, 2011. Henderson agreed the return contained truthful information related to business expenses, the 2010 Form 1040 should not have reflected a refund due of $4,955. This case was the result of an investigation by the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review –hammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Dandre Lamote Hall, 33, of Hammond, Indiana was sentenced to 84 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of possessing with intent to distribute crack cocaine. According to documents filed in this case, on September 19, 2013, the defendant knowingly and intentionally possessed with intent to distribute crack cocaine. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Nicholas J. Padilla.
- Bart Lombard, 58, of Michigan City, Indiana, was sentenced 12 months’ probation with a special condition of 12 months home detention. He was also ordered to pay restitution in the amount of $36,671 to the Internal Revenue Service, along with a $75 special assessment following his convictions for three misdemeanor offenses for failing to file federal income tax returns for tax years 2008 through 2010, while earning taxable income as deputy trustee of the Michigan Township Trustee’s Office, LaPorte County, Indiana, and as director of operations for Access LaPorte County, Indiana. This case was the result of an investigation by the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United State Attorneys Gary Bell and Dean Lanter.
Washington County Woman Charged with ExtortionRead the Press Release
PITTSBURGH - A resident of Valencia, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of interference with commerce by extortion, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on March 11, named Pamela A. Vivirito, 44, as the sole defendant.
According to the indictment Vivirito extorted property from a person known to the grand jury.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
U.S. Attorney's Office Receives Suspicious PackageRead the Press Release
Denver Fire Department determents the contents were not hazardous
DENVER – The U.S. Attorney’s Office for the District of Colorado released the following statement regarding receiving a piece of mail containing white powder:
“The Colorado U.S. Attorney’s Office received a piece of mail that contained a letter and white powder. The piece of mail was opened in the mail room. Once the person who opened the piece of mail determined it contained white powder, he and the office followed its standard protective protocol. The Federal Protective Service, Denver Fire Department, Denver Police Department and the FBI responded. The Denver Fire Department determined on site that the substance contained in the envelope was not hazardous. The piece of mail is now in the custody of the Federal Bureau of Investigation, which is conducting a criminal investigation into the letter. Operations in the U.S. Attorney’s Office were minimally impacted and have since returned back to normal.”
Jeff Dorschner, Spokesman, U.S. Attorney’s Office, District of Colorado
Tribal Implementation of the Violence Against Women ActRead the Press Release
Acting United States Attorney Randolph J. Seiler has announced that a conference regarding Tribal Implementation of the Violence Against Women Act (VAWA) will be held on Tuesday, March 31, 2015. All sessions will be held at the Rushmore Plaza Holiday Inn, located at 505 N. Fifth St. in Rapid City, South Dakota. The one-day conference will run from 8:00 am – 5:00 pm.
The conference is co-sponsored by Acting U.S. Attorney Chris C. Myers, District of North Dakota; Deborah R. Gilg, U.S. Attorney, District of Nebraska; and the University of South Dakota School of Law.
The conference will focus on the implementation of VAWA by tribal entities.
The Violence Against Women Reauthorization Act of 2013 was recently signed into law. Revisions in the law included increased legal protection for Native American women and other victims, emphasized the importance of tribal governments protecting their people, and enhancing the powers of tribal courts.
Featured conference speakers will explain the law as it relates to addressing domestic violence in Indian country, discuss the role of tribal elected leaders in the implementation of VAWA, and provide tribal perspectives and updates on pilot projects authorized under the new law.
Additionally, afternoon breakout sessions will address the topics of building stability in tribal justice programs, incarceration, re-entry, and rehabilitation services, tribal code development, technical assistance, and how to ensure that tribal protection orders and convictions qualify for federal prosecution.
The conference is free and open to the public.
Three Indicted on Wilmington Heroin Trafficking ChargesRead the Press Release
WILMINGTON, Del. – Ingrid Gonzalez-Rodriguez, 28, of Philadelphia, Pa., Joseph Collazo, 25, of Wilmington, Del., and Stefano Saienni, 23, of Elkton, Md., were indicted by a federal grand jury today on charges relating to the trafficking of a significant amount of heroin into the Wilmington, Del. area, announced Charles M. Oberly, III, United States Attorney for the District of Delaware.
According to court documents filed in support of the indictment, Gonzalez-Rodriguez, Collazo, and Saienni conspired to distribute heroin in Delaware. The case is the result of a four-month investigation by the Drug Enforcement Administration (“DEA”), which culminated in January 2015 when Gonzalez-Rodriguez was caught delivering two packages of heroin from Philadelphia to Wilmington. Approximately 5,720 bags of heroin were seized from Gonzalez-Rodriguez, some of which were packaged inside baby diapers. The heroin is valued at nearly $30,000.
If convicted, the defendants face charges that carry a maximum penalty of 40 years imprisonment (with a mandatory minimum of five years), up to a lifetime of supervised release (with a mandatory minimum of four years), a fine of up to $5,000,000 and a $100 special assessment. In addition, Saienni faces a charge for possession of a firearm in furtherance of a drug trafficking crime, which carries an additional mandatory minimum term of five years imprisonment. The case is the result of an investigation conducted by the Wilmington Tactical Diversion Squad of the DEA. Assistant United States Attorney Shawn A. Weede and Special Assistant United States Attorney Elizabeth L. Van Pelt are prosecuting the case on behalf of the United States.
Indictments are only charges and are not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Three Indianapolis men face federal charges in North Vernon robbery and murder caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler, announced today three Indianapolis men have been charged federally for their role in the robbery and murder of Scott D. Maxie, a federally licensed gun store owner in North Vernon, IN.
• Darryl Anthony Worthen, 25, Indianapolis
• Dejuan Andre Worthen, 23, Indianapolis
• Darion Dashon Harris, 20, Indianapolis
All were charged with discharging a firearm in relation to a crime of violence resulting in death, robbery, conspiracy to commit robbery and theft of firearms.
"This type of violence is something no family or community should have to face," said Minkler. "When a violent crime like this occurs, the federal hammer will be used by the United States Attorney’s Office."
The indictment alleges that on September 20, 2014, Darryl Worthen, Dejuan Worthen and Harris (the defendants) traveled from Indianapolis to North Vernon to see what inventory was inside the Muscatatuck Outdoors Gun Shop and made plans to rob the owner. They drove back to Indianapolis only to return the following day to commit the robbery.
After returning to the gun store, on September 21, 2014, one of the defendants disconnected a security camera inside the gun shop. During the robbery, Darryl Worthen allegedly shot and killed the gun shop owner with a .22 caliber handgun then all the defendants stole a large quantity of firearms from the gun shop and returned to Indianapolis. Once home with the guns, the defendants sold and distributed many of the firearms and kept several for themselves.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, Indianapolis Metropolitan Police Department, Jennings County Sheriff’s Department and the Jennings County Prosecutors Office.
“Violent crime will not be tolerated in this community,” said Jennings County Prosecuting Attorney Brian Belding. “The individuals responsible should be punished to the fullest extent of the law. The decision to have these individuals charged federally was made after thoughtful consultation with the family members. My goal is that the individuals responsible for this heinous act serve the maximum sentence under the law. This is more likely to be accomplished under the federal sentencing guidelines. As much as it would be appropriate to prosecute these crimes locally, it would not be in the best interest of our community when they could receive a harsher sentence in Federal Court if convicted. My heart goes out to Mr. Maxie’s family, friends, and loved ones.”
“My condolences go out to Mr. Maxie’s family and friends,” said Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “While nothing can fill the void of his loss, ATF and our law enforcement partners will work to ensure that these individuals, and others like them, are held accountable for their actions. This violent act was a senseless tragedy for the entire community."
“When armed robbers graduate to murder to complete their crime, they are deserving of the most aggressive prosecution possible,” said Indiana State Police Superintendent Doug Carter. “A civil society demands such prosecution and it is the very least we can do to honor Scott Maxie and his surviving family after such a senseless act.”
According to Assistant U.S. Attorneys Barry D. Glickman and William L. McCoskey, who are prosecuting this case for the government, all defendants could face the death penalty, life imprisonment, or any term of years if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The Game Stop Robber Receives 11 Year Prison SentenceRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Javon Glen Britton, aged 34, of Sacramento, California, was sentenced on March 12, 2015 to serve a total of 138 months (11.5 years) in Federal prison for robbery and brandishing a firearm during a crime of violence. The sentence was handed down by the Honorable Marc T. Treadwell, United States District Court Judge, in Macon, Georgia.
Mr. Britton entered a guilty plea to the charges on November 25, 2014. As part of his plea agreement, he admitted that he robbed The Game Stop, located at 4659 Presidential Parkway in Macon, Georgia, on August 21, 2014, at gunpoint. Mr. Britton entered the store carrying a large black bag containing a U.S. Military Surplus M1 carbine. He pulled the firearm from the bag and ordered everyone in the store to get on the ground. He then demanded that the customers place their cell phones and money on the floor and approached the store clerk and demanded money, brandishing the M1 firearm. The store clerk gave approximately $492.00 from the cash register to Mr. Britton, who then fled the store to a waiting vehicle.
After an ensuing altercation with a private citizen, Mr. Britton crashed his vehicle and sought refuge in a nearby store where he and his passenger were later apprehended by deputies from the Bibb County Sheriff’s Office.
“Through the outstanding efforts of both local and federal law enforcement officers, Mr. Britton was brought to justice and a tragedy was avoided. I am confident that even though he tried to rob a game store, Mr. Britton now realizes that when you use a gun to commit a crime, we are going to make sure that you lose,” said U.S. Attorney Michael Moore.
“ATF and our outstanding Federal and local law enforcement partners have ensured the law abiding citizens of this community are safer as a result of this sentence,” said ATF Special Agent in Charge Carl Walker. “This sentence is a direct message to criminals that law enforcement is observant and will not allow egregious violations of our laws to go unpunished.”
The case was investigated by Bibb County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives (BATF) and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Michael T. Solis handled the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Affairs Specialist, United States Attorney’s Office, at (478) 621-2603.
Tax Preparer Sentenced to Prison for Stealing and Selling the Identities of Minors to Clients for Use as Tax DeductionsRead the Press Release
PROVIDENCE, R.I. – Evelyn Nunez, 40, of Providence, was sentenced today to 30 months in federal prison and ordered to pay more than $1.4 million dollars in restitution to the IRS and the State of Rhode Island for her role in a scheme to steal personal identifying information of minors named as dependents on legitimate tax returns prepared by her company, NBP Multiservices (NBP), a tax preparation business in Cranston, R.I., and then sold to other tax filers for use on their tax returns in order to increase tax refunds, announced United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Nunez to serve two years of supervised released upon completion of her prison term. Nunez pleaded guilty on December 12, 2014, to one count each of conspiracy to defraud the government and aggravated identity theft.
Two co-defendants in this matter have also pleaded guilty to federal charges and are awaiting sentencing. Tashia Bodden, 37, of Cranston, pleaded guilty to one count of conspiracy to defraud the government and one count of aggravated identity theft. Wendy Molina, 40, of Cranston, pleaded guilty to one count of conspiracy to defraud the government.
According to court documents, the Scheme Development Center, a division of the IRS, conducted an analysis of tax returns prepared by individuals working at NBP and identified questionable use of children being claimed as dependents. The use of the dependents led to the refunding by the IRS of hundreds of thousands of dollars under the Earned Income Credit available to low income taxpayers.
According to court records and information presented to the court, an investigation by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Attorney’s Office revealed that between January 2008 and February 2012, taxpayers purchased false dependents for approximately $600 - $700 per dependent. The investigation revealed that on numerous tax returns the defendants falsely claimed dozens of children to be foster children, nieces and nephews of some of their clients. In reality, they had no relation to the taxpayer.
The investigation revealed that the scheme defrauded the IRS of more than $1.34 million dollars and defrauded the State of Rhode Island of more than $65,500 dollars.
The cases are being prosecuted by Assistant U.S. Attorney Lee H. Vilker.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
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[email protected]St. Louis Man Sentenced for Drug and Money Laundering ConspiraciesRead the Press Release
A St. Louis man, convicted of Conspiracy to Distribute Methamphetamine and Conspiracy to Commit Money Laundering, was sentenced to 96 months in federal prison on March 13, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Herbert Garstang, 33, of St. Louis, MO, received a 96 month sentence for offenses which occurred in St. Clair County, IL and in St. Louis, Mo. Garstang had previously pled guilty to those offenses. Following release from imprisonment, Garstang will serve a 4 year term of supervised release. Weil was also ordered to pay a $400 fine and a $200 special assessment.
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. Agencies participating in this case include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigations, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and United States Marshals Service. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.