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Friday 13 March 2015
St. Louis Area Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO –RONALD L. ROBERTS was sentenced to 68 months imprisonment on charges of mail and wire fraud in connection with his obtaining more than a million dollars from lenders in a loan fraud scheme.According to court documents, Roberts solicited personal loans for a fictitious real estate transaction involving property in or around Poplar Bluff, Missouri, which Roberts claimed he owned and planned to sell to Wal-Mart. In some instances, Roberts claimed that the funds were needed to buy out the interests of family members, including his half-brother, who had purportedly asserted claims against the property; in others, he claimed that it was necessary to extinguish liens or perform environmental remediation; in yet others, he claimed that one or more parties associated with the transaction were demanding additional sums to close the transaction.
Roberts usually promised lenders either that their money would be returned in a matter of days or weeks at most, usually with considerable interest, or that they would receive a portion of the profits that Roberts expected to generate from the fictitious transaction. The rate of return promised by Roberts varied from 0% to at least as much as 180%, with terms varying between a couple of weeks and a few hours.
In truth, Roberts owned a piece of property, constituting less than ten (10) acres in size, in Neelyville, Missouri, more than ten (10) miles outside of Poplar Bluff, Missouri. At the time of Roberts’ representations, the property had a market value of less than $30,000 and was encumbered by a judgment against Roberts in excess of $13 million, making the property worthless to Roberts. During the scheme, Wal-Mart had not made any offer to purchase that property, nor did it have any present plans to develop additional land in or near Poplar Bluff where there is already an existing Wal-Mart store. Instead, Roberts employed funds given to him by lenders for his own personal use.
Roberts, of Town and Country, MO, pled guilty last July to two felony counts of wire fraud and one felony count of mail fraud. He appeared today in St. Louis for sentencing before United States District Judge E. Richard Webber.
The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran handled the case for the U.S. Attorney’s Office.
Springdale Man Sentenced to over Eight Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Octavio Torres-Rivas, aka Cesar Torres, age 46, a Mexican citizen residing in Springdale, Arkansas, was sentenced today on one count of Conspiracy to Distribute a Controlled Substance, namely Methamphetamine. Torres-Rivas was sentenced to 100 months in prison followed by three years of supervised release and a $2500.00 fine. The Honorable Robert T. Dawson presided over the sentencing in the United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, “The trafficking and distribution of illegal drugs represents a colossal problem in our communities, bringing crime and violence onto our streets and exposing our children to grave risks. The sentence announced today shows that our office, joined by federal, state, and local law enforcement agencies, remains committed to aggressively pursuing and shutting down illegal drug trafficking in Springdale and across the Western District of Arkansas.”
“Methamphetamine is a plague that drug traffickers inflict upon law-abiding communities without any regard for the violence and destruction that often accompanies its use,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “This case illustrates the successful ongoing partnership between HSI and its partners with the Rogers Police Department, Springdale Police Department and the Washington County Sheriff's Office that continue to identify and bring Arkansas drug traffickers to justice.”
“The collaborative effort of federal and local law enforcement in Arkansas, including the U.S. Attorney’s Office, has led to the sentencing of a Mexican drug dealer and ultimately safer streets within our community,” said DEA Assistant Special Agent in Charge David Downing. “Methamphetamine is a highly addictive drug that ravages many communities in our nation. Because of the positive results in this investigation, other meth traffickers in Arkansas are being put on notice that DEA and its law enforcement partners will not tolerate their continued efforts to distribute this insidious drug.”
According to court records, in 2010, Homeland Security Investigations began an investigation into a drug trafficking conspiracy operating in Northwest Arkansas that was involved in the distribution of methamphetamine. During the investigation, agents received information that implicated Torres-Rivas in the conspiracy. Specifically, agents learned from a confidential source that on at least one occasion, the confidential source had received methamphetamine after texting and requesting it from Torres-Rivas. Homeland Security Agents were able to corroborate this information by reviewing telephone records from Torres-Rivas’ phone, the confidential source’s phone, and by conducting surveillance. Additionally, agents were able to examine a cellular phone used by Torres-Rivas which contained text messages between Torres-Rivas and the confidential source that further corroborated this drug transaction. Torres-Rivas was arrested July 1, 2013, and plead guilty to the charge of Conspiracy to Distribute Methamphetamine on July 1, 2014.
This case was investigated by the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Rogers Police Department, the Springdale Police Department, the Benton County Sheriff’s Office and the Washington County Sheriff’s Office. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Springdale Man Pleads Guilty in Counterfeit Credit Card SchemeRead the Press Release
Baltimore, Maryland – Charles A. Adegbesan, age 26, of Springdale, Maryland pleaded guilty today to conspiring to commit access device fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea, on three occasions from July 11 to August 4, 2009, Adegbesan and co-conspirators were captured on surveillance cameras at Giant grocery stores in Salisbury, Maryland, and in Bear and Middletown, Delaware, using access device numbers belonging to 11 victims to make unauthorized purchases totaling $45,477.91.
On May 30, 2010, law enforcement officers executed a search warrant at Adegbesan’s residence and seized three debit cards and a credit card, all of which had been re-encoded with stolen access device numbers.
During the course of the conspiracy from May 2009 to May 2010, Adegbesan and his coconspirators were responsible for losses to over 50 victims totaling $125,687.61.
Adegbesan has agreed to pay restitution of at least $125,687.61.
Adegbesan faces a maximum sentence of five years in prison and a fine of $250,000. U.S. District Judge J. Frederick Motz scheduled his sentencing for June 11, 2015, at 10:30 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Sex Offender Sentenced to 188 Months in Federal Prison for Producing Child PornographyRead the Press Release
Lance Plunske will begin serving his federal sentence after a state sentence of 144 months in prisonUnited States Attorney Andrew M. Luger today announced the sentencing of LANCE DEAN PLUNSKE, 57, to 188 months in federal prison for production of child pornography. PLUNSKE was indicted on July 14, 2014, and pleaded guilty on November 1, 2014, to one count of Production of Child Pornography. The defendant was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, between August 2008 and January 7, 2009, PLUNSKE knowingly persuaded and coerced a 15-year-old girl to pose nude while he took digital photos focused on the victim’s genitals, and produced visual depictions of sexually explicit conduct involving the victim.
PLUNSKE was convicted in 2009 in Traverse County, Minn., of First Degree Criminal Sexual Conduct. He was sentenced to serve 144 months in state prison. After PLUNSKE’S conviction in Traverse County, the United States Attorney’s Office investigated and prosecuted the defendant for the production of child pornography, which led to the conviction in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov.
This case resulted from an investigation conducted by the Federal Bureau of Investigation and the Traverse County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
LANCE DEAN PLUNSKE, 57
Moose Lake, Minn.
Convicted:
• Production of Child Pornography, 1 count
Sentenced:
• 188 months in prison
• 15 years supervised releaseSerial Armed Bank Robber Exiled to 40 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Raymond Edward Gill, age 59, of Baltimore, today to 40 years in prison followed by five years of supervised release for armed bank robbery and brandishing a firearm during the robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to evidence presented during the four day trial, on August 27, 2013, Gill used a handgun to rob the Wells Fargo Bank in Catonsville, Maryland. Gill waited in line for a teller window to become available and then pointed a revolver at the teller, demanding money. The teller opened her cash drawer and provided $22,004. Gill left the bank.
The bank manager followed Gill out to the parking lot, and saw him remove his shirt and walk away. Baltimore County Police investigated the scene and seized the shirt, along with a hat and surgical mask. Gill’s DNA was found on the hat and mask. Bank surveillance videos showed views of Gill’s face, and the robbery itself.
Approximately a week later, Gill was arrested near his home. On October 6, 2013, Gill was overheard on a jail call telling his sister to sell his gun.
Since age 24, Gill has been convicted three times for crimes arising out of the robberies of 12 banks, 10 of which were committed while on parole and supervised release.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Sean R. Delaney, who prosecuted the case.
Sarasota Felon Sentenced to 15 Years in Prison for Possessing A Firearm and Drugs for SaleRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Lonzine Adams (58, Sarasota) to 15 years in federal prison for being a felon in possession of a firearm and for possessing with the intent to distribute crack cocaine. The Court also ordered him to forfeit the firearm and ammunition. Adams pleaded guilty on July 15, 2014.
According to court documents, a confidential informant purchased drugs from Adams on two occasions at his store in Sarasota. Law enforcement officers then obtained a search warrant for “Bud’s Store” and found Adams in possession of a revolver and ammunition. Officers also found crack cocaine, which was intended for sale, and $12,000 in cash, which were the proceeds of Adams’s drug sales.
Adams had multiple prior felonies, including at least four convictions related to the sale of cocaine. As a convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violence in our communities.
Rochester Man Senteced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Juan Dejesus Santiago, 33, of Rochester, NY, who was convicted of drug conspiracy, money laundering conspiracy and discharge of a firearm during a crime of violence, was sentenced to 30 years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Jennifer M. Noto and Thomas S. Duszkiewicz, who handled the case, stated that Santiago participated in a large, violent narcotics trafficking organization. The defendant also participated in the contract killing of Quincy Turner in May 2008 in Jamestown, NY.
The drug trafficking organization that Santiago was a member of was responsible for the receipt and distribution of hundreds of kilograms of cocaine in the Rochester area between January 2007 and October 2008. The defendant was one of 33 related defendants charged with federal crimes involving their participation in this armed drug conspiracy that sent and received packages of cocaine via the U.S. Mail from Puerto Rico to Rochester. Proceeds from the drug sales were sent back to Puerto Rico to purchase more cocaine. To date, all 33 defendants have been convicted and only two remain to be sentenced.
Santiago was also involved in the murder of Quincy Turner, a man suspected of being an informant for the government in a narcotics investigation. Quincy Turner was shot and killed on May 30, 2008. The defendant provided one of the firearms used to carry out the contract killing, a .45 caliber pistol, as well as the vehicle utilized to drive the shooters to Turner’s residence. Santiago received a portion of the proceeds provided in consideration for the murder. Law enforcement officers recovered the .45 caliber pistol, along with 500 grams of cocaine during a search of the defendant’s residence on October 9, 2008.
The sentencing is the culmination of investigations into the drug trafficking organization and murder as part of the High Intensity Drug Trafficking Area (HITA) and Organized Crime Drug Enforcement Task Force (OCDETF) initiatives. Investigative agencies involved include the Bureau of Alcohol Tobacco Firearm and Explosives, under the direction of Delano A. Reid, Special Agent in Charge, New York Field Division, the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Southern Tier Regional Drug Task Force, under the direction of Lieutenant David Bentley, and the Chautauqua County Sheriff’s Department, under the direction of Joseph Gerace.
Reisterstown Man Sentenced to 12 Years in Prison for Supplying Heroin to an Eastern Shore Drug TraffickerRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Gary Tyrone Kess, age 37, of Reisterstown, Maryland today to 12 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Caroline County Sheriff Randy Bounds; and Caroline County State’s Attorney Jonathan Newell.
According to his plea agreement, in June 2014, Kess supplied heroin to an Eastern Shore drug trafficker. On June 14, 2014, law enforcement observed a co-conspirator complete a transaction in Kess’ minivan. On June 16, 2014, law enforcement intercepted a text message between the co-conspirator and Kess arranging a transaction for 150 grams of heroin. The next day, the co-conspirator was observed briefly meeting with Kess. On June 23, 2014, law enforcement saw Kess meet with the co-conspirator in the parking lot of a fast food restaurant in Severna Park, Maryland. The co-conspirator entered Kess’ minivan and two minutes later exited the vehicle. Shortly thereafter, Kess was stopped for a traffic violation. After a canine alerted for the presence of narcotics, the vehicle was searched and law enforcement recovered 150 grams of heroin and $6,000 packaged in bank envelopes.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore, and the members of the Caroline County Drug Task Force – the Maryland State Police, Caroline County Sheriff’s Office, and the Caroline County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Christopher J. Romano, who prosecuted the case.
Rankin Man Admits Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH - A resident of Rankin, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Brandon McWright, 27, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around June 2013, and continuing thereafter to in and around May 2014, McWright conspired with others to distribute and possess with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Judge Conti scheduled sentencing for July 9, 2015 at 10:00 a.m. The law provides for a total sentence of up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Bureau of Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Port Orange Man Charged in Scheme to Defraud Oil Spill Compensation FundRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Robert Lee Craddock (54, Port Orange) with wire fraud arising out of a scheme to defraud the compensation fund established as a result of the Deepwater Horizon oil spill in 2010. If convicted, he faces a maximum penalty of 20 years in federal prison. The indictment also notifies Craddock that the United States is seeking a money judgment in the amount of $135,153, the proceeds of the charged criminal conduct.
According to the indictment, following the April 2010 explosion of the Deepwater Horizon oil rig (which was being leased by BP, formerly known as British Petroleum), Craddock submitted a claim to BP and the Gulf Coast Claims Facility (“GCCF”), an independent facility established by BP to compensate qualified claimants, for lost earnings purportedly related to the impact of the oil spill on his businesses. As part of the scheme, Craddock crafted fictitious invoices to support the amount of lost earnings that he claimed. The fraudulent scheme resulted in BP and GCCF transmitting a total of $135,153 to Craddock.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorney Embry J. Kidd.
Physician Charged with Receiving a KickbackRead the Press Release
ROCKFORD — An Illinois physician was arrested this morning on a charge of illegal remunerations. NEIL SHARMA, 34, of Lemont, Illinois, a licensed Illinois physician and the medical director of an Illinois healthcare company, is charged with receiving a kickback in the amount of $2,500 in cash, from an individual in return for his referring Medicaid and Medicare patients to the individual's company for medical treatment.
According to the complaint and supporting affidavit, Sharma is employed by Company A, which is contracted with both Medicare and Illinois Medicaid to provide health care benefits to Medicare and Medicaid beneficiaries. Company A is a managed care organization contracted with the State of Illinois to provide services under Illinois’ Integrated Care Program. Company A gets paid Medicaid funds based on the number of Medicaid patients enrolled with the company. As the medical director of Company A, SHARMA is involved in all major clinical patient care programs including review of medical care provided and medical professional aspects of provider contracts.
Also described in the complaint and supporting affidavit, Company B is contracted with Company A to provide services for Medicaid beneficiaries. In February 2015, SHARMA offered an individual who owns Company B an additional 500 patients at an increased rate. SHARMA also offered to refer to Company B Medicaid and Medicare patients in two new programs Company A planned to implement. In exchange, SHARMA wanted a cash payment immediately and additional cash payments every month after for an unidentified length of time. SHARMA planned to conceal the payments received from the individual by being named the medical director for the individual’s other health care companies not contracted with Company A.
According to the complaint and supporting affidavit, on February 27, 2015, in Rockford, the individual provided SHARMA $2,500 in United States currency. After SHARMA received the $2,500, on March 9, 2015, Company B started seeing new Medicaid and Medicare patients referred by SHARMA that are part of one of Company A’s new programs.
The charge of illegal remunerations carries a maximum potential penalty of up to 5 years in prison, a fine of up to $25,000, and full restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. Sharma is scheduled to appear today in Federal Court in Rockford before U.S. Magistrate Iain D. Johnston at 11:00 a.m. for arraignment.
The public is reminded that a complaint contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The arrest was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Complaint
Owner of Detroit Home Health Care Companies Pleads Guilty to $12.6 Million Fraud SchemeRead the Press Release
The owner of two home health care companies pleaded guilty to Medicare fraud and tax fraud charges in connection with his role in a scheme to fraudulently bill Medicare for $12.6 million in home health services that were not provided or were obtained through illegal kickbacks. Ten other individuals have been convicted at trial or pleaded guilty in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.
Mohammed Sadiq, 67, of Oakland County, Michigan, pleaded guilty today before U.S. District Judge Denise Page Hood of the Eastern District of Michigan to one count of health care fraud and one count of filing a false tax return. A sentencing hearing is scheduled for June 18, 2015.
According to admissions in his plea agreement, Sadiq owned and directed operations at two home health care companies in Detroit. Sadiq admitted that, working with co-conspirators, he created and operated the companies for the purpose of billing Medicare for home health services that he knew were not provided. Sadiq also admitted to paying kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used to bill Medicare for services that were not medically necessary or were not provided at all.
Sadiq further admitted that he created fake patient files to fool a Medicare auditor and make it appear as though home health services were provided and medically necessary.
Sadiq admitted that, as a result of the scheme, he received $12.6 million from Medicare.
Also according to Sadiq, he received proceeds of the fraud through bank accounts that he controlled, withdrew substantial sums for his personal use and failed to report these proceeds on his individual federal income tax return in 2008. In total, Sadiq admitted that he currently owes approximately $1.5 million in taxes, interest and penalties for tax years 2008 through 2010.
This case was investigated by the FBI, HHS-OIG and IRS-CI, 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 of the Eastern District of Michigan. The case is being prosecuted by Trial Attorneys William Kanellis, Christopher Cestaro, Brooke Harper and Elizabeth Young of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorney Patrick Hurford of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Omar Gonzalez Pleads Guilty to Federal Charges Stemming from Intrusion on White House Grounds Defendant Climbed Fence, Ignored Repeated Efforts to StopRead the Press Release
WASHINGTON – Omar Gonzalez, 43, pled guilty today to charges stemming from an incident on Sept. 19, 2014, in which he climbed a fence and ran toward and into the White House while armed with a folding knife, announced U.S. Attorney Ronald C. Machen Jr. and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
Gonzalez, 42, formerly of Copperas Cove, Texas, pled guilty in the U.S. District Court for the District of Columbia to two federal offenses: one count of unlawfully entering a restricted building or grounds, while carrying a deadly or dangerous weapon, and one count of assaulting, resisting, or impeding certain officers or employees. He is to be sentenced on June 8, 2015 by the Honorable Rosemary M. Collyer.
The unlawful entry charge carries a statutory maximum of 10 years in prison, and the assault charge carries a statutory maximum of eight years. Both charges also carry potential financial penalties. Under federal sentencing guidelines, the parties have agreed that the applicable range for the offenses is a prison term of twelve to 18 months and possible fines. Upon completion of his prison term, Gonzalez would be placed on supervised release. The parties have agreed to recommend to the Court that Gonzalez be prohibited from entering the District of Columbia for the duration of his supervision, except for court appearances and meetings with his attorney. The parties also will recommend that Gonzalez be required to participate in a psychiatric evaluation and cooperate fully with the Secret Service in any assessments they deem necessary to make of Gonzalez’s risk.
“We are pleased that Mr. Gonzalez has chosen to take responsibility for his incomprehensible decision to leap a fence and charge into the White House with a knife,” said U.S. Attorney Machen. “He is lucky to be alive. Mr. Gonzalez faces significant prison time because of his crime, and at sentencing we anticipate that he will barred from entering the District of Columbia and required to undergo psychiatric treatment. We hope that this prosecution deters others in the future from taking any actions that threaten the First Family, the White House, and the public servants who work there.”
According to the government’s evidence, on Sept. 19, 2014, at about 7:19 p.m., Gonzalez climbed over the north fence of the White House. While he was climbing over the fence, officers with the U.S. Secret Service’s Uniformed Division ran towards him and repeatedly yelled at him to stop and get down. Gonzalez, however, ignored the commands and landed on the north grounds of the White House.
Moments later, after ignoring additional, repeated commands from uniformed officers to stop, Gonzalez went through the north doors of the White House, knocking a uniformed officer backwards. Another uniformed officer then tackled him inside the White House.
Gonzalez was searched and a folding knife, with a serrated blade that was over three and one-half inches long, was discovered in his right front pants pocket. After his arrest, he gave oral consent to search his vehicle, located on Constitution Avenue NW. The vehicle contained hundreds of rounds of ammunition, in boxes and in magazines, two hatchets, and a machete.
Gonzalez has been in custody since his arrest on Sept. 19, 2014.
This case was investigated by the U.S. Secret Service and the U.S. Department of Homeland Security. It is being prosecuted by Assistant U.S. Attorneys David Mudd and Thomas A. Gillice, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.
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Omar Gonzalez Pleads Guilty to Federal Charges Stemming from Intrusion on White House Grounds Defendant Climbed Fence, Ignored Repeated Efforts to StopRead the Press Release
WASHINGTON – Omar Gonzalez, 43, pled guilty today to charges stemming from an incident on Sept. 19, 2014, in which he climbed a fence and ran toward and into the White House while armed with a folding knife, announced U.S. Attorney Ronald C. Machen Jr. and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
Gonzalez, 42, formerly of Copperas Cove, Texas, pled guilty in the U.S. District Court for the District of Columbia to two federal offenses: one count of unlawfully entering a restricted building or grounds, while carrying a deadly or dangerous weapon, and one count of assaulting, resisting, or impeding certain officers or employees. He is to be sentenced on June 8, 2015 by the Honorable Rosemary M. Collyer.
The unlawful entry charge carries a statutory maximum of 10 years in prison, and the assault charge carries a statutory maximum of eight years. Both charges also carry potential financial penalties. Under federal sentencing guidelines, the parties have agreed that the applicable range for the offenses is a prison term of twelve to 18 months and possible fines. Upon completion of his prison term, Gonzalez would be placed on supervised release. The parties have agreed to recommend to the Court that Gonzalez be prohibited from entering the District of Columbia for the duration of his supervision, except for court appearances and meetings with his attorney. The parties also will recommend that Gonzalez be required to participate in a psychiatric evaluation and cooperate fully with the Secret Service in any assessments they deem necessary to make of Gonzalez’s risk.
“We are pleased that Mr. Gonzalez has chosen to take responsibility for his incomprehensible decision to leap a fence and charge into the White House with a knife,” said U.S. Attorney Machen. “He is lucky to be alive. Mr. Gonzalez faces significant prison time because of his crime, and at sentencing we anticipate that he will barred from entering the District of Columbia and required to undergo psychiatric treatment. We hope that this prosecution deters others in the future from taking any actions that threaten the First Family, the White House, and the public servants who work there.”
According to the government’s evidence, on Sept. 19, 2014, at about 7:19 p.m., Gonzalez climbed over the north fence of the White House. While he was climbing over the fence, officers with the U.S. Secret Service’s Uniformed Division ran towards him and repeatedly yelled at him to stop and get down. Gonzalez, however, ignored the commands and landed on the north grounds of the White House.
Moments later, after ignoring additional, repeated commands from uniformed officers to stop, Gonzalez went through the north doors of the White House, knocking a uniformed officer backwards. Another uniformed officer then tackled him inside the White House.
Gonzalez was searched and a folding knife, with a serrated blade that was over three and one-half inches long, was discovered in his right front pants pocket. After his arrest, he gave oral consent to search his vehicle, located on Constitution Avenue NW. The vehicle contained hundreds of rounds of ammunition, in boxes and in magazines, two hatchets, and a machete.
Gonzalez has been in custody since his arrest on Sept. 19, 2014.
This case was investigated by the U.S. Secret Service and the U.S. Department of Homeland Security. It is being prosecuted by Assistant U.S. Attorneys David Mudd and Thomas A. Gillice, of the National Security Section of the U.S. Attorney’s Office for the District of Columbia.
Ohkay Owingeh Woman Sentenced for Assaulting Tribal OfficerRead the Press Release
ALBUQUERQUE – Crystal Torres, 29, was sentenced yesterday in federal court in Santa Fe, N.M., to 20 months in prison followed by three years of supervised release for her assault with a dangerous weapon conviction.
Torres, a member and resident of Ohkay Owingeh Pueblo, was arrested on Feb. 14, 2013, on an indictment charging her with assaulting a woman with a hammer, and assaulting a man with a knife. According to the indictment, both offenses occurred on Jan. 22, 2012, on Ohkay Owingeh Pueblo lands. Court filings reflect that the victim of the second assault was an officer of the Ohkay Owingeh Tribal Police Department.
On Nov. 19, 2013, Torres pled guilty to the second count of the indictment charging her with assault with a dangerous weapon, a knife. According to Torres’s plea agreement, on Jan. 22, 2012, tribal officers were dispatched to Torres’s residence on Ohkay Owingeh Pueblo. When the officers arrived, they observed Torres running towards a road and into traffic. When the victim attempted to catch Torres to get her out of the lane of traffic after three vehicles nearly struck her, Torres pulled out a hunting knife and advanced toward the victim, ignoring the victim’s commands that she drop the knife.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
OCDETF Training for Law Enforcement Sponsored by the U.S. Attorney’s OfficeRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI), announced that the Regional Organized Crime Drug Enforcement Task Force (OCDETF) coordinators from the Pacific Region made their annual visit to Guam and the NMI and provided training to law enforcement agencies. The training was conducted by Thomas Colthurst, OCDETF Regional Director, Steve Jensen, OCDETF Regional Coordinator of Internal Revenue Service - Criminal Investigations (IRS-CI), and Deborah Wee, OCDETF Regional Coordinator of the Federal Bureau of Investigations (FBI). The training was held at the U.S. Attorney’s Office in Guam on March 11, 2015, and was attended by approximately 30 local and federal law enforcement officers from Guam and Saipan, NMI.
The training topics included “Money Laundering and Financial Analysis,” “OCDETF Airport Security Initiative” and “Searches and Seizure.”
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.
OCDETF investigations involve a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
OCDETF investigations involve federal agents and local law enforcement officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA), the FBI, the IRS, the U.S. Coast Guard Criminal Investigative Service (CGIS), the U.S. Department of Homeland Security Investigations (HSI), the U.S. National Oceanic Atmosphere Administration (NOAA), the U.S. Marshal’s Service, the U.S. Postal Inspection Service (USPIS), and numerous local agencies such as the Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA) and others.
Assistant U.S. Attorney Thomas Colthurst gives an Overview of Financial Investigations and Money Laundering Laws Steve Jensen, OCDETF Regional Coordinator of IRS-CI presenting on the topic of International Money Laundering U.S. Attorney Alicia Limtiaco with Assistant U.S. Attorney Thomas Colthurst at the OCDETF training for law enforcementNew York Consultant Sentenced for Securities Kickback SchemeRead the Press Release
BOSTON – A business consultant who assisted public companies find financing was sentenced today in connection with a kickback scheme.
Barry Hawk, 46, of Woodmere, New York, was sentenced today by U.S. Senior District Court Judge Mark L. Wolf to 36 months of probation, the first six months to be served in home confinement, a fine of $20,000 and forfeiture of $12,150. In December 2014, Hawk pleaded guilty to one count of wire fraud.
Hawk was the Managing Director of Statis Equities LLC, a consulting business, as well as President and CEO of Arctic Enterprises, Inc., a Florida-based plastics products manufacturing business. Hawk recruited three of his clients – publicly-traded companies whose shares traded in the over-the-counter securities market – to participate in a scheme to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in these two companies. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. In reality, however, and unbeknownst to Hawk or his clients, the purported investment fund representative was an undercover federal agent and the fund itself did not exist. Hawk also participated in the scheme by having his own company, Arctic Enterprises, agree to pay kickbacks in exchange for funding. In addition to getting funding for his company, Hawk personally received 10% of the kickback payments.
The case was part of a lengthy investigation focusing on preventing fraud in the microcap securities markets. Microcap companies are small publicly-traded companies whose stock often trades at pennies per share.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz expressed appreciation for the significant assistance received from the U.S. Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
New Jersey Doctor Charged with Running Pill Mill and Attempting to Burn It DownRead the Press Release
PHILADELPHIA – Dr. Mudassar Sharif, 40, of Bernards Township, NJ, was charged yesterday by indictment with illegally dispensing prescription pills through Garden State Primary Care, which he owned, in Kearny, NJ, announced United States Attorney Zane David Memeger. Sharif is also charged with trying to set fire to the building that houses the medical practice.
According to the indictment, on February 12, 2015, Sharif knowingly dispensed and distributed, outside the usual course of professional practice and for no legitimate medical purpose, a mixture and substance containing a detectable amount of oxycodone. According to a criminal complaint, Sharif has been providing medically unnecessary prescriptions to a Cooperating Witness (CW#1) since November of 2012 when Sharif traveled to CW#1’s residence to sell CW#1 a dog. Sharif did not perform any medical examination before writing the prescription. Sharif allegedly began providing oxycodone prescriptions to CW#1, once a month, for $500 for each prescription. Other than on two occasions, Sharif allegedly traveled to Philadelphia to give the prescriptions to CW#1. It is further alleged that Sharif wrote the prescriptions in five or six names provided by CW#1 and eventually began to sell oxycodone pills to CW#1 in addition to the prescriptions. According to the criminal complaint, Sharif currently charges $15 per pill and $3,000 for prescriptions.
According to the criminal complaint, Sharif began talking to CW#l about burning down Sharif's office building, located at 711 Kearney Avenue, in Kearney, NJ, in order to destroy his files because he was having an issue with Medicare or Medicaid. Sharif allegedly agreed that in exchange for CW#l burning down his office, CW#l would not have to pay Sharif for 300 pills he had already provided to CW#l. Sharif allegedly told CW#l that no one lived in his building and no one would be in the office when CW#l committed the arson. According to the criminal complaint, Sharif claimed that a disabled woman who lived near his office would be fine and, later, when CW#l commented that the whole building would go up in flames and the lady would be dead, Sharif did not protest.
If convicted of all charges, Sharif faces a mandatory minimum term of 60 months in prison with an advisory sentencing guideline range of 108 to 135 months in prison, plus fines of up to $1.25 million, at least three years of supervised release up to a lifetime of supervised release.
This case was investigated by the FBI’s Health Care Fraud Task Force with the assistance of the Philadelphia Police Department and the Office of Inspector General for Health and Human Services. It is being prosecuted by Assistant United States Attorneys Jose Arteaga and Mary Kay Costello.
Milton Woman, Stephanie Schump, Sentenced to 22 Months in Prison for Conspiring with Bronx Drug Dealer to Distribute Heroin and Cocaine in VermontRead the Press Release
Eugenia A.P. Cowles, the Acting United States Attorney for the District of Vermont, stated that
Stephanie Schump, of Milton, Vermont, was sentenced on March 13, 2015 by Chief United States District Court Judge Christina Reiss, to 22 months in prison for conspiracy to distribute both heroin and cocaine base in Vermont. Schump was also sentenced to 2 years of supervised release following her release from prison.According to Court records, on March 8, 2014, special agents with the United States Drug Enforcement Administration (“DEA”) executed a federal search warrant at an apartment at 246 ½ Main Street in Winooski, Vermont and arrested Joe Young, a resident of the Bronx, New York who was present in Burlington to sell heroin and cocaine base. Young was known on the street as “Moe.” Young was in possession of both heroin and crack cocaine that he and others, including Stephanie Schump, intended to sell in Vermont. Stephanie Schump conspired with Joe Young by transporting him between the Bronx, New York and Burlington, Vermont on a number of occasions. She also transported controlled substances for Joe Young from the Bronx to Vermont, met and picked up Young’s drug couriers at a bus station in Plattsburg, New York, and sold heroin and cocaine for Young in Vermont.
Schump was indicted by a federal grand jury on March 20, 2014. She pled guilty to conspiracy to distribute heroin and cocaine base on November 6, 2014. She has been detained in prison since her arrest on May 15, 2014.
This case was investigated by the Drug Enforcement Administration (DEA). The United States Attorney, Eugenia A. P. Cowles, commends that agency for its work. The case was prosecuted by Assistant United States Attorney Nancy J. Creswell. The defendant was represented by Attorney John C. Mabie.
Michigan Resident Pleads Guilty to Conspiracy to Violate Customs and Environmental Laws Regarding Export of E-WasteRead the Press Release
Michigan resident Lip Bor Ng, also known as Paul Wu, 52, pleaded guilty before Judge Mark A. Goldsmith to a one-count conspiracy information, which charged him with conspiring with others to knowingly submit false and misleading export information to the United States, to fraudulently and knowingly export electronic waste in violation of United States law and to export hazardous waste without filing a notification of intent to export with the U.S. Environmental Protection Agency (EPA).
According to the charges in the information, Ng submitted fraudulent export information to the Automated Export System, an electronic database maintained by the U.S. Customs and Border Protection, on two occasions in 2011. He falsely declared the commodities as plastic and metal scrap, when, in fact, they contained various types of used electronics and computer components, including cathode-ray tube (CRT) monitors. CRT monitors can be considered hazardous waste under certain conditions and thus their export is regulated by EPA.
“U.S. law strictly regulates the exportation of hazardous e-waste because we care about what happens to these materials when they leave our shores,” said John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We will not allow people to profit from compromising the health and safety of people overseas. Those who do so will be prosecuted.”
Anyone who exports unusable, hazardous CRT monitors must file a notification of intent to export CRT monitors and must also receive permission from the receiving country, in this case, China and Hong Kong, to allow import into that country. Ng did not file the appropriate notification, or receive permission from China and Hong Kong to export the CRT monitors.
“The more technology we use, the more electronic waste is created that can seriously impact human health and the environment,” said Special Agent in Charge Randall K. Ashe of EPA’s criminal enforcement program in Michigan. “Many old, worn-out electronics are exported overseas where people risk their health to retrieve the valuable materials left in them. As a global leader in the manufacture and use of electronics, America has a responsibility to ensure their proper disposal.”
“When potentially hazardous e-waste is not properly disposed of, human lives are put at risk,” said Marlon Miller, special agent in charge of Homeland Security Investigations Detroit. “The investigation confirmed that the defendant repeatedly and illegally exported used cathode ray tubes overseas. Homeland Security Investigations stands with our law enforcement partners, committed and ready, to prevent any company from ignoring U.S. laws involving the export of hazardous e-waste."
Ng faces a maximum sentence of five years imprisonment and a $250,000 fine. Sentencing was set for July 14, 2015.
The case is being investigated by the EPA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Department of Commerce, and U.S. Postal Inspection Service.
The case is being prosecuted by the Department of Justice, Environmental Crimes Section, Trial Attorney Jennifer Leigh Blackwell, the United States Attorney’s Office for the Eastern District of Michigan, Assistant U.S. Attorney Lynn Dodge, as well as EPA Regional Criminal Enforcement Counsel Dave Taliaferro.
Mexican Man Sentenced on Immigration ChargesRead the Press Release
A Mexican man pled guilty to Unlawful Re-Entry After Deportation and was sentenced to time served of 51 days on March 13, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rodolfo Garcia-Carrera, 28, a citizen of Mexico, was sentenced to time served, which was 51 days, and is being deported.
Rodolfo Garcia-Carrera is a citizen of Mexico, previously deported on September 10, 2013. Garcia-Carrera was arrested in the United States on December 23, 2014, by Collinsville Police Department. Homeland Security-Immigration and Customs searched records and interviewed Garcia-Carrera and determined that he was in the country illegal.
This case was investigated by the Collinsville Police Department and Homeland Security-Immigration and Customs. This case was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Mexican Citizen Sentenced for His Part in Methamphetamine ConspiracyRead the Press Release
A Mexican man who had previously resided in Dallas, Texas, convicted of Conspiracy to Distribute Methamphetamine, was sentenced to 52 months in federal prison on March 13, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Jose Luis Gonzales, 42, of St. Louis, MO, received a 52 month sentence for the offense that occurred in the Southern District of Illinois. Gonzales had previously pled guilty to those offenses. Following release from imprisonment, Gonzales will serve a 2 year term of supervised release and was ordered to pay a $200 fine and a $100 special assessment. Gonzales will be deported after his prison sentence.
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, and United States Marshals Service. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Mason Woman Charged with Bank EmbezzlementRead the Press Release
Megan Kolberg regularly stole cash from Mason State Bank
GRAND RAPIDS, MICHIGAN – Megan Kolberg, age 36, of Mason, Michigan, was indicted by a federal grand jury for embezzling over $1,000.00 from Mason State Bank. The indictment, which was filed in the U.S. District Court for the Western District of Michigan on March 11, 2015, alleges that Kolberg worked as an employee of Mason State Bank and embezzled money from the bank from December 2009 until May 2013. According to the indictment, Kolberg regularly stole cash from the bank during this time period, deposited most of the cash to her personal bank accounts, and concealed her embezzlement by making false statements in the bank’s books and records. These false statements pertained to the balances she maintained in accounts under her control, including her teller drawer, head teller vault, and the automated teller machine.
Kolberg appeared before U.S. Magistrate Hugh W. Brenneman, Jr., on Friday, March 13, 2015, and was released on bond. If convicted of bank embezzlement, Kolberg faces a maximum prison term of 30 years, a fine of up to $1,000,000.00, and an order to make restitution to the bank for the full amount of its losses. The indictment additionally seeks forfeiture of any property that Kolberg obtained directly or indirectly as a result of her embezzlement and seeks a money judgment up to $160,000.00, constituting the amount of the proceeds from her embezzlement.
The investigation is being conducted by the Lansing office of the Federal Bureau of Investigation and the Mason Police Department. The prosecution is being handled by Assistant U.S. Attorney Ronald M. Stella.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Martinez Resident Sentenced to 66 Months for Possession of Child PornographyRead the Press Release
OAKLAND – Louis Cortez pleaded guilty and was sentenced late yesterday to five and a half years in prison for possession of child pornography, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Cortez pleaded guilty to possessing images and videos of child pornography in violation of 18 U.S.C. § 2252(a)(4). He admitted to obtaining the images and videos by using a private peer to peer file sharing software. The images and videos depicted minor and prepubescent children engaging in sexually explicit conduct.
Cortez, 68, of Martinez, California, was indicted by a federal grand jury on April 17, 2014. He was charged with a single count of possession of child pornography.
Cortez was discovered when an FBI agent acting undercover obtained images and videos of child pornography from Cortez through the peer to peer file sharing software Cortez used. Agents then traced the transmission of that material to Cortez’s residence and located hundreds of images and videos stored in various media devices in his home.
The sentence was handed down by The Honorable Yvonne Gonzalez Rogers, U.S. District Judge, following Cortez’s guilty plea. Judge Gonzalez Rogers also sentenced Cortez to an eight year period of supervised release and a variety of conditions he must meet upon his release, including not accessing the Internet without the prior approval of his probation officer, not frequenting or loitering within 100 feet of any location where children are likely to gather, and registering as a sex offender. Cortez was immediately remanded into custody following the sentence being imposed.
Assistant U.S. Attorney Thomas R. Green is prosecuting the case with the assistance of Jeanne Carstensen and Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.
March 31 Conference to Highlight 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.
Manchester Resident Sentenced for Wire Fraud OffenseRead the Press Release
CONCORD, NEW HAMPSHIRE – Daniel Desrochers, 42, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 72 months in prison for wire fraud and for violating the terms of his supervised release, announced United States Attorney John P. Kacavas.
From June 2013 to February 2014, Desrochers acquired 91 personal loans totaling more than $191,000 from four New Hampshire residents by falsely representing to those individuals that he had access to $494,000 in a fictitious bank account and by falsely claiming his newly formed marketing company was on the verge of entering into a $1 million contract with a major shoe company. The proceeds of some of these loans were electronically transferred from a location in Maine to a bank account in New Hampshire. For this wire fraud offense, Desrochers was sentenced to 61 months in prison.
Desrochers was also sentenced to two concurrent 11-month prison sentences, consecutive to the 61-month sentence, because he committed the wire fraud offense while he was on supervised release for a 2002 federal bank fraud conviction and 2009 federal forgery conviction.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Robert Kinsella.
Lebanon Service Man Charged for Conspiracy to Receive Bribes While Serving in AfghanistanRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges have been filed in U.S. District Court in Harrisburg against Timothy H. Albright, age 37, of Lebanon, Pennsylvania, charging him with conspiracy to receive bribes while serving in the United States Army at Bagram, Afghanistan.
According to U.S. Attorney Peter Smith, the criminal information alleges that Albright, a Specialist with the Pennsylvania National Guard, was assigned to the 53rd Joint Movement Control Battalion, 101st Joint Logistics Command, Combined Joint Task Force, with duties at Bagram Airfield in Afghanistan (Bagram). He served as an E4 (Enlisted Grade 4) in the United States Army at Bagram between January 7, 2008 and October 20, 2008. In his position at Bagram, Albright, who served as a Commercial Vendor Services Specialist, processed invoices resulting from the provision of supplies by Afghan vendors to restock supplies at the Humanitarian Aid Yard at Bagram. Albright was responsible for reviewing invoices submitted by Afghan vendors who had been awarded contracts to replenish the Humanitarian Aid Yard. If the documents were in order, Albright would date-stamp and submit them for payment.
An Afghan vendor had several million-dollar contracts through his company with the Humanitarian Aid Yard through the Army. He began to give cash to Albright as a way of thanking him for expeditiously processing his invoices. As the relationship developed, so did the size of the amounts of cash from the vendor. Ultimately, the criminal information charges, Albright received at least $25,000 in cash bribes from the Afghan vendor.
Albright sent the money he received from the Afghan vendor to his home in Lebanon. He concealed the money in envelopes inserted in boxes filled with DVDs. Also, according to the Information, Albright told his supervisor at Bagram about the payments and encouraged him to participate in the scheme. The supervisor did so, and Albright and his supervisor would split up stacks of $100 bills provided by the vendor.
The case was investigated by the Special Inspector General for Afghanistan Reconstruction, United States Army’s Criminal Investigation Division, the Defense Criminal Investigative Service, the Federal Bureau of Investigation, and the Air Force Office of Special Investigation. The prosecution is being handled by Assistant U.S. Attorney Gordon Zubrod and Trial Attorney Daniel Butler of the Criminal Division of the U.S. Department of Justice.
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 5 years imprisonment, a term of supervised release following imprisonment, and a fine up to $250,000. 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.
Information
Kirkland Man Sentenced to Ten Years in Prison for Large Collection of Images of Child Rape and MolestationRead the Press Release
A Kirkland, Washington resident with one of the largest collections of images of children being raped and molested ever seized in Western Washington was sentenced today in U.S. District Court in Seattle to ten years in prison and ten years of supervised release, announced Acting United States Attorney Annette L. Hayes. DEREK M. HALVERSON, 53, was identified as part of “Project Spade,” an international crackdown on customers of a Toronto, Canada based film company, Azov Films, that distributed child pornography under the guise of “nature films.” HALVERSON was an “affiliate partner” with the company and received commissions and discounts as a result of advertisements HALVERSON knowingly posted on two websites that he operated. At sentencing U.S. District Judge John C. Coughenour ordered $7,500 in restitution to victims who had filed with the court.
“This defendant profited financially from the sale and trade of images of children being sexually abused,” said Acting United States Attorney Annette L. Hayes. “His blog posts, “movie reviews,” and other website postings promoted sexual interest in children putting more kids at risk in our communities.”
According to records filed in the case, law enforcement led by the U.S. Postal Inspection Service served a search warrant on HALVERSON’s home in March 2013. Agents seized a large number of digital devices containing over 50,000 images and 200 movies of children being sexually exploited. Agents also recovered paperwork indicating HALVERSON received a commission from Azov Films for customers who purchased from the company after clicking on links posted on HALVERSON’s websites.
The international investigation dubbed “Project Spade” has resulted in 348 arrests worldwide. Here in Western Washington, three other defendants have been charged in connection with “Project Spade.”
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Special Assistant United States Attorney Cecilia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
Kankakee Felon Sentenced to Maximum Prison Term for Possession of A Firearm Used in ShootingRead the Press Release
Urbana, Ill. B Sentray D. Coney, 25, of the 700 block of South Lincoln Ave., Kankakee, Ill., has been sentenced to the maximum 10 years in federal prison for illegal possession of a firearm by a felon. At sentencing, yesterday afternoon, U.S. District Judge Harold A. Baker found that on May 19, 2014, Coney, a convicted felon, used a firearm to shoot a victim in the leg in Kankakee as retaliation for a tavern shooting earlier that morning. The 120 month sentence is the maximum permitted by law for the offense of conviction. On Sept. 5, 2014, Coney pled guilty to the offense. He has been in the custody of the U.S. Marshals Service since his arrest in May 2014.
According to court records and documents, Kankakee police officers arrested Coney in the early morning of May 19, 2014, at 3:15 a.m. Officers were conducting an investigation of a shooting death at the Whatever Tavern in Kankakee when they heard multiple gunshots from a nearby location. The victim was walking in the alley near a residence at the 300 block of East Bourbonnais St, Kankakee, when he was shot. A bullet remained lodged in the victim’s leg and he was taken to a hospital emergency room for treatment.
Following the second shooting, officers observed a dark blue, full size GMC van driving very fast in the area with no headlights. An officer in a squad car attempted to stop the van by getting behind the van and activating his overhead squad lights near the intersection of East Station St. and S. Schuyler Ave. An officer in another squad car pulled in front of the van. As the van came to a stop, the passenger side door opened, and Coney jumped from the van. Officers observed a gun in Coney’s right hand as he ran north on Schuyler Ave., and gave chase. As Coney continued to run, officers saw him drop the gun on the sidewalk in front of Johnny’s Pizza. Officers caught and tackled Coney and arrested him.
Officers recovered the gun Coney dropped, a black, Beretta, Model 92FS, nine millimeter, semi-automatic pistol. The pistol had a round in the chamber, the hammer cocked back, and the safety off. The pistol contained an extended magazine loaded with approximately 12 additional rounds of 9 millimeter ammunition.
After Coney was arrested, officers investigated the area where the victim had been shot, and found nine 9 millimeter shell casings in the alley and yard where the shooting occurred. The 9 millimeter shell casings were sent to the forensic laboratory of the Bureau of Alcohol, Tobacco, Firearms and Explosives which determined they were fired by the Beretta pistol that Coney dropped. The Illinois State Police forensic lab analyzed swabs of Coney’s hands, taken at the Jerome Combs Detention Center following his arrest, and determined that both of Coney’s hands contained gunshot residue particles.
At the time of the offense, Coney had prior convictions in Illinois for domestic battery, possession of cannabis, and possession of a firearm by a street gang member.
The case is the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Justice Department Requires Divestitures in Waste Management's Acquisition of Deffenbaugh DisposalRead the Press Release
The Department of Justice announced today that it will require Waste Management Inc. (WMI) and Deffenbaugh Disposal Inc. (DDI) to divest small container commercial waste service routes, in the Topeka, Kansas, area and in two areas in Northwestern Arkansas – Van Buren/Fort Smith and Springdale – in order for WMI to proceed with its acquisition of DDI. Without these divestitures, the department said, the transaction would have likely resulted in higher rates for customers in those areas.
The Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
“This deal threatened to weaken competition in small container commercial waste service in three cities and surrounding areas,” said Assistant Attorney General Bill Baer of the Antitrust Division. “Competition between Waste Management and Deffenbaugh historically has resulted in lower prices and better service. By requiring the divestiture of Deffenbaugh’s small container commercial waste service routes in these cities, today’s proposed settlement will ensure that businesses in Kansas and Arkansas will benefit from continuing competition among waste haulers.”
According to the department’s complaint, WMI’s acquisition of DDI would significantly reduce competition in three local small container commercial waste service markets. Small container commercial waste service is the collection of municipal solid waste from commercial businesses, such as office and apartment buildings, and retail establishments, such as stores and restaurants. In and around Topeka and in the Van Buren/Fort Smith, WMI and DDI are currently two of three major providers of these services. In these areas the combination of WMI and DDI would have resulted in only two major competitors. In the Springdale area, WMI and DDI are currently two of four major providers. In this area the combination of WMI and DDI would have resulted in only three competitors. In each of these areas, the loss of competition would likely result in higher prices and reduced quality in small container waste collection service.
The proposed divestitures address these competitive concerns. Under the terms of the proposed consent decree, WMI must divest DDI’s small container commercial waste routes in each of these three markets.
WMI is a Delaware corporation with its headquarters in Houston. WMI provides collection, transfer, recycling and disposal services throughout the United States. In 2014, WMI had estimated total revenue of $14 billion.
DDI is a Delaware corporation, with its headquarters in Kansas City, Kansas. DDI offers collection, transfer, recycling and disposal services in Kansas, Missouri, Arkansas, Nebraska and Iowa. DDI’s revenues for 2013 were approximately $180 million.
As required by the Tunney Act, the proposed settlement, along with a 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 James Tierney, Chief, Networks and Technology Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
WMI Competitive Impact Statement
WMI Hold Separate
WMI Proposed Final Judgement
WMI Complaint
Justice Department Files Lawsuit to Enjoin Las Vegas Man from Preparing Returns Containing the Foreign Earned Income ExclusionRead the Press Release
The United States has asked a federal court in Las Vegas to bar a Las Vegas man from preparing federal tax returns that contain or involve foreign earned income, and from promoting to others the exclusion of foreign earned income.
The complaint, which was filed with the U.S. District Court for the District of Nevada, alleges that Harvey L. Cage, who does business as CSN Tax Services, inappropriately attempts to exclude foreign earned income from the calculation of his customers’ federal tax liabilities. According to the complaint, from 2009 through 2012, Cage personally prepared more than 3,200 tax returns, of which approximately 25 percent contained the foreign earned income exclusion.
Typically, U.S. citizens may exempt some foreign earned income from the calculation of gross income if they are present in a foreign country for at least 330 full days out of 12 consecutive months. This period can be waived when the Secretary of the Treasury determines, after consultation with the Secretary of State, that individuals were required to leave a foreign country due to war, civil unrest or other conditions that preclude the normal conduct of business, among other things. In implementing this waiver provision, each year the Secretary of the Treasury publishes a list of countries that have been determined eligible for waiver requests. According to the suit, Cage ignored the published list of waiver-eligible countries in filing for his customers’ exclusion of foreign earned income. According to the government’s complaint, Cage, on behalf of some of these customers, claimed the foreign earned income exclusion for which his customers were not entitled, inappropriately reducing their tax liability.
According to the complaint, Cage’s activities have resulted in an estimated average tax loss of more than $12,000 per examined return. The United States alleges that the additional taxes due from Cage’s customers, excluding interest and penalties, is greater than $3.7 million and continues to grow as additional examinations are completed. After many of his customers had been audited, Cage failed to provide his Preparer Tax Identification Number (PTIN) on the tax returns he prepared, in violation of federal law, according to the suit.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Lynch in Missoula on March 12, 2015, and entering pleas of Not Guilty were:
- TERESA A. BARR, a 58-year-old resident of Clinton, appeared on charges of misappropriation of postal funds. If convicted of the charge contained in the indictment, BARR faces 1 year in prison, $100,000 in fines and 1 year supervised release. The case was investigated by the U.S. Postal Service Office of Inspector General. PACER Case Reference: 15-03
- KENNETH MARTIN CHANDLER, a 35-year-old resident of Kalispell, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, CHANDLER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-01
- ISMAEL MELIN, a 40-year-old resident of Mexico, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MELIN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 15-17
- JOSE LUIS MONTANO-ESPERICUETA, a 40-year-old resident of Mexico, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MELIN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force. PACER Case Reference: 15-17
- JOHNNY LEWIS NOSIE, a 47-year-old resident of Tucson, Arizona, appeared on charges of failure to register as a sexual offender. If convicted of the charge contained in the indictment, NOSIE faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service and Gallatin County Sheriff’s Office. PACER Case Reference: 15-14
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hayward Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
OAKLAND – Runnveer Singh pleaded guilty today to aiding and assisting in the filing of a false tax return, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
In pleading guilty, Singh, 53, of Hayward, admitted he has prepared tax returns for approximately six years from 2008 through 2013. He obtained clients from the local Fijian community and prepared thousands of tax returns during that period. Singh prepared tax returns for the tax years 2009 through 2011 that claimed both false and ineligible deductions and credits including unreimbursed employee expenses, charitable deductions, Schedule C expenses, education credits and personal property tax deductions. By including both false and ineligible items on his clients’ tax returns, Singh caused at least $130,435 in inflated tax refunds to be issued.
On November 14, 2012, during the execution of a search warrant at his home, Singh admitted to IRS Special Agents that he knowingly prepared false tax returns in order to obtain returning customers. Then, after the search warrant was executed, Singh instructed one of his clients to submit both false and ineligible information to an IRS Revenue Agent during the audit of the client’s 2010 income tax return. Singh admitted he did so in an attempt to justify both false and ineligible business expenses on his client’s 2010 tax return.
Singh was charged in an indictment filed on March 25, 2014 with 24 counts of aiding and assisting in filing false tax returns, in violation of Title 26, U.S.C § 7206(2). He pleaded guilty to one count. Singh’s sentencing is scheduled for July 31, 2015 before the Honorable Jon S. Tigar, United States District Judge in San Francisco. The maximum penalty for one count of assisting in filing tax returns in violation of Title 26, U.S.C § 7206(2) is three years in prison and a fine of $250,000.
Assistant US Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Georgia Man Sentenced for Part in Heroin ConspiracyRead the Press Release
A Georgia man, convicted of Conspiracy to Distribute Heroin and Interstate and Foreign Travel or Transportation in Aid of Racketeering Enterprises, was sentenced to 24 months in federal prison on March 13, 2015, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Javier De Jesus Rodriguez, 31, of Norcross, Georgia, received a 21 month sentence for offenses which occurred in the Southern District of Illinois, Georgia, and the country of Columbia. Rodriguez had previously pled guilty to those offenses on December 17, 2014. Following release from imprisonment, Rodriguez will serve a 3 year term of supervised release. Watson was also ordered to pay a $200 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, and the United States Marshals Service,. This case was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Four Guilty in Smuggling Conspiracy Resulting in DeathRead the Press Release
McALLEN, Texas – With the guilty plea of Julia Resendez, 33, four people have now been convicted for their respective roles in an alien smuggling conspiracy that resulted in the death of two Guatemalan nationals, announced U.S. Attorney Kenneth Magidson.
Resendez, of Sullivan City, entered a guilty plea today, while Juan Manuel Garcia, 18, Eloy Mendoza Jr., 26, and Jose Manuel Lovato-Balleza, 23, pleaded guilty March 11, 2015. Garcia and Mendoza are also residents of Sullivan City, while Lovato is Mexican national. Garcia pleaded guilty to conspiracy to transport aliens and to transporting aliens, resulting in death. Mendoza, Lovato and Resendez were convicted of conspiracy to harbor aliens.
On Oct. 2, 2014, U.S. Border Patrol (BP) agents observed a truck appear to be transporting illegal aliens near Sullivan City. Garcia was driving and attempted to evade agents. He soon lost control of the vehicle on a caliche road, hitting an embankment and ejecting the majority of his passengers. BP agents responded immediately and observed Garcia and 11 illegal aliens at the scene of the rollover where one female Guatemalan national was found deceased. The majority of the other aliens had severe injuries and had to be hospitalized. Within a few days, a male Guatemalan national passed away as a result of his injuries sustained in the rollover.
Based on their investigation, law enforcement was able to determine that the aliens involved in the rollover had been harbored in two alien stash houses located in Sullivan City. Agents discovered 15 aliens at a house on Huisache St. and another 16 were being harbored at a house on Ebony St. Mendoza and Lovato were determined to be the caretakers of the aliens found in the Huisache house, while Resendez was the caretaker in the Ebony house. Two of the aliens that Resendez was harboring were visibly injured and admitted to being in the rollover and fleeing afterwards. Both of these aliens indicated that they had been harbored by Mendoza and Lovato at the Huisache residence prior to the rollover.
The defendants will remain in custody pending sentencing, which is set for May 26, 2015, before U.S. District Judge Randy Crane. At that time, Garcia faces of up to life in federal prison, while Mendoza, Lovato and Resendez face up to 10 ten years imprisonment. All also face a potential $250,000 maximum fine.
The charges are the result of an investigation by Homeland Security Investigations, BP and the Texas Department of Public Safety. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.Former Millvale Police Officer Sentenced for Tasering Handcuffed ManRead the Press Release
PITTSBURGH – Nicole Murphy, a resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years probation. The first three months of the sentence will be served in home confinement, followed by nine months of in-home detention. The sentence also requires that the defendant serve 100 hours of community service for each year of probation, and that the community service consist of outreach to law enforcement about the use of excessive force and the consequences of using excessive force. This sentence was imposed on the defendant for her conviction of deprivation of rights under color of law, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Nicole Murphy, 31. On Sept. 21, 2012, Murphy, while acting under color of law as a police officer with the Millvale Police Department, deprived an individual identified as Thomas Smith of the constitutional right to be free from unreasonable force, by deploying a taser in both drive and probe-stun modes on Smith’s person while he was handcuffed behind his back and seated on the floor of the squad room at the Millvale Police Department.
Assistant United States Attorneys Carolyn J. Bloch and Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Murphy.
Former Kentucky Man Sentenced for Receipt of Child PornRead the Press Release
NORFOLK, Va. – Douglas Lawrence True, 23, formerly of Owensboro, KY, was sentenced today to 20 years in prison, followed by a life term of supervised release for receiving child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Susan E. Triesch, Special Agent-in-Charge of the Naval Criminal Investigative Service Norfolk Field Office, made the announcement after sentencing by United States District Judge Mark S. Davis.True pled guilty to the charge on November 10, 2014. According to court documents, True, an active duty sailor, came to the attention of investigators based upon the improper use of a Navy laptop computer. During an interview with True, the command developed probable cause to seize and search True’s cellphone. Investigators forensically analyzed the cellphone and found images of child pornography. In addition, agents learned that True was communicating with many different minors and enticing them to send explicit photos of themselves to him. Agents also found messages between True and his co-defendant, Rebecca Gibbs. In these communications, True convinced Gibbs to create child pornography videos and images and send them to him.
Rebecca Gibbs pleaded guilty to production of child pornography on September 30, 2014 and was sentenced on January 5, 2015 to 17 ½ years in prison, followed by a life term of supervised release.
This case was investigated by the Naval Criminal Investigative Service. Assistant U.S. Attorney Joseph L. Kosky and Special Assistant United States Attorney Alyssa Nichol prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-97.Former Investment Manager Employee Pleads Guilty in Manhattan Federal Court to Obstruction of Justice and Perjury ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN HART pled guilty today to obstruction of justice and perjury relating to an investigation that the U.S. Securities and Exchange Commission (the “SEC”) had conducted into potential violations of the federal securities laws. HART, who was employed at an investment management firm headquartered in Englewood Cliffs, New Jersey (the “Investment Firm”), lied in sworn testimony to the SEC that he had obtained consent from the president of the Investment Firm (the “Investment Firm President”) to conduct match trades between a fund managed by the Investment Firm and a fund controlled and owned in part by HART. Moreover, when representatives of the SEC called the Investment Firm in an attempt to speak with the Investment Firm President, HART, on three occasions, answered the phone and pretended to be either the Investment Firm President or another employee. HART entered his guilty plea today before the Honorable Katherine P. Failla.
Manhattan U.S. Attorney Preet Bharara said: “Steven Hart went to great lengths to try to derail and avoid an investigation into his trading conduct. But, as his plea today shows, no one is above the law, including the law that governs investigations, and obvious attempts to change the course of a legal investigation will not be tolerated.”
According to the Information filed in Manhattan federal court and statements made during today’s proceeding:
HART worked at the Investment Firm, which managed several funds. HART, who reported directly to the Investment Firm President, served as a portfolio manager at the firm and, in that capacity, exercised trading authority over the brokerage accounts for one of the funds managed by the Investment Firm (the “Fund”). At the same time, HART also controlled and directed Octagon Capital Partners, LP (“Octagon”), a private investment fund with its principal place of business in New York, New York. Through Octagon, HART invested his own money and the money of several of his associates.
In or about 2009, the SEC was investigating HART’s trading activities at the Investment Firm (the “SEC Investigation”). First, the SEC was investigating whether HART, in his capacity as a portfolio manager at the Investment Firm, had conducted improper “match trades” or “cross trades” between his personal fund, Octagon, and the Fund. The SEC was also investigating whether HART had traded in securities based on material nonpublic information (“MNPI”) relating to confidentially marketed securities offerings – information that HART had obtained while being solicited to invest in these offerings.
As part of this investigation, SEC officials, among other things, issued a subpoena to the Investment Firm, care of the Investment Firm President, seeking the production of several different categories of documents. HART received the subpoena at the Investment Firm before it was seen by any other employee and produced documents to the SEC in New York, New York, without (1) informing anyone else at the Investment Firm about the subpoena, or (2) informing the SEC that it was HART alone who responded to the subpoena.
Moreover, in the course of providing sworn testimony to the SEC, HART made several materially false statements. He falsely testified that the Investment Firm President had agreed that HART should conduct match trades involving the Fund as part of an investment strategy for the Fund. HART also falsely testified that he and the Investment Firm President had discussed the SEC Investigation, and that the Investment Firm President was aware that HART had been subpoenaed to testify before the SEC.
On multiple occasions, HART impersonated other employees of the Investment Firm during telephone conversations with the SEC. Specifically, on December 8, 2009, an SEC attorney called the Investment Firm to speak with the firm’s President about the SEC Investigation. HART received the phone call and pretended to be another employee of the Investment Firm. The SEC attorney asked HART, who was pretending to be another employee, to ask the Investment Firm President to return the call, which HART failed to do. The following day, the same SEC attorney again called the Investment Firm to speak with the firm’s President. HART again received the phone call and, on this occasion, pretended to be the Investment Firm President. During that call, HART, pretending to be the Investment Firm President, falsely stated that: (1) the Investment Firm President was aware that HART had engaged in improper trading activity, but nevertheless wanted HART to remain an employee of the Investment Firm; and (2) the Investment Firm President was aware of, and had approved, Hart’s match trading activity as a means for the Fund to dispose of restricted shares of stock.
Finally, on December 11, 2009, the same SEC attorney, along with a second SEC attorney, called the Investment Firm to speak with the firm’s President. HART again received the phone call and again pretended to be the Investment Firm President. During that call, HART, speaking as the Investment Firm President, falsely stated to the SEC attorneys that: (1) HART’s match trading activity was an intentional strategy of the Investment Firm to take a loss on the trading in exchange for the ability to sell otherwise restricted shares of stock; (2) HART was still a valued employee of the Investment Firm who had earned the Investment Firm far more than whatever amount HART had gained through match trading; and (3) HART had fully disclosed to the Investment Firm President that HART had traded based on MNPI and that this was a one-time mistake that would not happen again. Each of these statements was false.
HART, 42, of New York, New York, faces a maximum sentence of ten years in prison. He is scheduled to be sentenced by Judge Failla on July 2, 2015. 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 the Judge.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jason H. Cowley is in charge of the prosecution.
Former Des Moines, Iowa, Police Officer Convicted of Civil Rights ViolationRead the Press Release
Colin Boone, previously employed as an officer of the Des Moines, Iowa, Police Department, was convicted today on the charge of deprivation of rights under color of law for assaulting a civilian during the course of an arrest on Feb. 19, 2013, announced Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division and U.S. Attorney Nicholas A. Klinefeldt of the Southern District of Iowa. The evidence presented at trial showed that Boone ran up to an arrestee and kicked him in the face while he was being held on the ground, face-down, by three other officers. The evidence also showed that Boone’s kick knocked out the victim’s front teeth and broke his nose.
“The Department of Justice is proud to stand behind the fine law enforcement officers with the Des Moines Police Department who honored their badges by providing truthful information about the defendant’s criminal actions,” said Acting Assistant Attorney General Gupta. “We are committed to working with our law enforcement partners to hold accountable officers such as former officer Boone, who engage in willful uses of excessive force.”
“This was a violent, criminal action” stated U.S. Attorney Klinefeldt. “Defendant Colin Boone kicked a defenseless man in the face. He will now be held responsible in the same way as all of the defendants he has helped put in jail. This was also a betrayal of trust: former police officer Colin Boone betrayed the trust of the public he served and of the officers with whom he served.”
The charge of deprivation of rights under color of law carries a statutory maximum sentence of ten years in prison and a maximum fine of $250,000. The sentencing hearing will be determined at a later date and Boone remains out of custody pending sentencing.
Today’s conviction is the result of an investigation conducted by the FBI’s Des Moines Resident Office. Prosecution of this matter was handled by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office in the Southern District of Iowa.
Former Charter School Director Convicted of Embezzling Government FundsRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
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Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a jury convicted Benita Dinkins-Robinson, age 40, of Bishopville, South Carolina, after a ten day trial in federal court. Dinkins-Robinson was convicted of two counts of embezzling government funds (18 U.S.C. § 641). United States Chief District Judge Terry Wooten of Columbia presided over the trial. He will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Attorneys presented evidence at the trial and during the asset forfeiture phase of the case that from 2007 to 2013, Dinkins-Robinson embezzled more than a million dollars in federal funds supplied by United States Department of Agriculture and the United States Department of Education that were intended to be used for the Mary L. Dinkins Higher Learning Academy, a charter school Dinkins-Robinson established in 2005. The jury also determined that Dinkins-Robinson must forfeit over $750,000 in annuities that she purchased while serving as the Executive Director of the charter school as well as her share in a Camden house that she owned.
Mr. Nettles stated that Dinkins-Robinson faces a maximum sentence of ten years’ imprisonment for each count.
The conviction was the result of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Winston Holliday and Ben Garner of the Columbia office handled the case.Former Bloomington Parks Department office manager indicted for fraudRead the Press Release
INDIANAPOLIS – Josh J. Minkler, United States Attorney, announced today that federal criminal charges have been filed against a former office manager for the City of Bloomington Parks and Recreation Department. Judith A. Seigle, 51, of Gosport, Indiana, was indicted by a federal grand jury on a wire fraud charge alleging that Seigle executed a scheme to steal over $400,000 in funds intended for Parks Department projects and programs.
“The citizens of Bloomington deserve better from their paid city employees,” said Minkler. “This is the second employee in less than one year charged with stealing city funds. Public officials need to serve the public and not serve themselves. The projects and programs of the Park’s Department exist to benefit the citizens of Bloomington. The indictment alleges that Defendant Seigle used funds intended for the parks as a piggy bank to benefit herself.”
Seigle, in her position as office manager, was responsible for maintaining certain books and records for the Parks Department as well as books and records for the Bloomington Community Parks and Recreation Foundation, a 501(c)(3) charitable organization, which exists to provide support for Bloomington’s parks and community programs. The indictment alleges that from approximately 2001 to October 2014, she diverted, embezzled, and misappropriated approximately $430,000 in funds from the Foundation and Parks Department for her personal use and benefit. It is alleged that Seigle used Foundation credit cards to make purchases for her personal use and that she caused numerous funds transfers from Foundation and Parks Department bank accounts to her personal bank and credit card accounts. It is further alleged that, to conceal her fraudulent scheme, Seigle created false bank statements and, for several years on a monthly basis, provided them to the Foundation’s executive director and others.
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting this case for the United States, Seigle faces up to 20 years in prison if convicted.
An indictment is only a charge and not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
The investigation was conducted by the FBI and the Bloomington Police Department, with assistance from the Monroe County Prosecutor’s Office.
Separately, Justin Wykoff, former Manager for Engineering Services for the City of Bloomington, pled guilty in federal court today to 11 counts of wire fraud for receiving kickbacks from the operators of a local concrete company and awarding City contracts to the company.
In pleading guilty, Wykoff admitted that he was responsible for bidding and awarding contracts for public works projects in the City, like road paving and sidewalk construction. Between April 2011 to February 2014, Wykoff solicited and received substantial cash bribes and kickbacks from Roger Hardin and Zach Hardin, who operated a company called Reliable Concrete and Construction. In exchange for the kickbacks, Wykoff assisted the Hardins in obtaining over $800,000 in City construction contracts and payments for Reliable Concrete. Wykoff estimated project costs and prepared bid proposals, using his inside information to ensure Reliable Concrete was the low bidder. In some cases, Wykoff awarded City contracts to Reliable Concrete outright without obtaining bids from other contractors. Wykoff also authorized City payments to Reliable Concrete totaling approximately $807,000. Of that amount, approximately $300,000 was for work that was never completed by Reliable Concrete.
Wykoff and the Hardins took steps to conceal their scheme by creating false Reliable Concrete bid proposals after the fact. On February 17, 2014, Wykoff went to Roger Hardin’s home and created multiple bid proposal forms for projects that the City of Bloomington had already paid Reliable Concrete for – even though Reliable Concrete had not performed the work. The forms were backdated to coincide with the dates that the work was supposed to have taken place. Wykoff initialed or signed these forms as if he had approved the bids and then planted copies of the forms in his office in an attempt to further conceal the scheme.
FBI Special Agent in Charge W. Jay Abbott stated, “Public corruption is one of the FBI’s top investigative priorities and FBI Agents remain committed to pursuing those individuals that violate the public’s trust.”
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting the case for the government, if the court accepts Wykoff’s plea agreement, the court could impose a sentence of imprisonment of between 51 and 63 months and order full restitution of $446,335.26 to the City of Bloomington. The court, however, has the authority to make the final determination of the sentence.
The investigation was conducted by the FBI and the Bloomington Police Department.
Former Bank President Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Michael “Sean” Davis, 43, of Crestview, pled guilty today to conspiracy to commit bank and mail fraud, money laundering, making false statements to a federally insured institution, and fraudulently benefitting from a loan by a federally insured institution. The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between January 2006 and January 2011, while the president of Premier Community Bank of the Emerald Coast, Davis devised a scheme to defraud Premier Community Bank, Bank of America, and Beach Community Bank. As a part of the scheme, Davis solicited a straw buyer to submit false documents to purchase real properties via short sales from Bank of America. At Davis’s direction, the straw buyer then sold the properties the same day to third-party buyers. Davis authorized and approved loans from Premier Community Bank to these third-party buyers for the purchase of two of these properties from Davis’s straw buyer. As a result of these loans, Davis received approximately $297,408 through his company, MSD Investments. Through this scheme, Davis discharged approximately $743,425 in debt he owed to Bank of America for mortgage loans issued to Davis personally.
Sentencing is scheduled for May 28, 2015, before Chief United States District Judge M. Casey Rodgers at the United States Courthouse in Pensacola, Florida.
The case was investigated by Internal Revenue Service-Criminal Investigation with assistance from the Federal Deposit Insurance Corporation’s Office of Inspector General, the Okaloosa County Sheriff’s Office as part of the Northwest Florida Financial Crimes Task Force, and the United States Treasury Department’s Special Inspector General for the Troubled Asset Relief Program. This case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Man Admits Mailing Death Threats to Connecticut ResidentsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GARRETT SANTILLO, 35, last residing in Hollywood, Fla., pleaded guilty today in Hartford federal court to mailing numerous threatening letters to individuals in Connecticut, including two federal judges and Connecticut’s governor.
According to court documents and statements made in court, on July 15, 2014, a federal judge received a threatening letter at his Connecticut residence via the U.S. Postal Service. The letter was postmarked on July 11, 2014, from Miami, but did not bear a return address. The letter writer made certain demands and stated “You (sic) home addresses in Conn. are public information and if you mask your identity by name or appearance, we can still track you to wherever you go and will kill you if you don’t follow what this letter instructs.”
Following the judge’s receipt of the threatening letter, approximately 14 other individuals in Connecticut, including another federal judge and the governor of Connecticut, also received letters containing death threats. All of the letters were handwritten, were mailed from the Miami area to the victims’ home addresses in Connecticut, did not bear a return address, contained a demand for action and threatened death if the recipient failed to comply with the writer’s request.
The investigation revealed that SANTILLO wrote and mailed the threatening letters. He was arrested at his Florida residence on September 29, 2014.
SANTILLO pleaded guilty to one count of mailing threatening communications, which carries maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 27, 2015.
SANTILLO, who has been detained since his arrest, has two prior federal convictions for sending threatening communications.
This matter has been investigated by the U.S. Marshals Service, Federal Bureau of Investigation, U.S. Postal Inspection Service, Connecticut State Police, the Yale University Police Department and the Broward County (Fla.) Sheriff’s Department, with the assistance of the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
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[email protected]Florida Dealer Sentenced for Illegally Trafficking in Marine LifeRead the Press Release
Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Miami Area Office of Law Enforcement, Thomas Tidwell, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Denver Area Office of Law Enforcement, FWS, and Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, announced that Curtis W. Waters, 58, of Weeki Wachee, Florida, was sentenced for engaging in conduct that involved the sale and purchase of, and intent to sell and purchase, wildlife with a market value in excess of $350.00, that is, approximately 150 specimens of Ricordea florida, and did knowingly sell said wildlife in interstate commerce, knowing it was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws of the State of Florida, specifically, Florida Statute Section 379.361(2)(f), in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1)(B), and Title 18, United States Code, Section 2.
U.S. District Court Judge James Lawrence King sentenced Waters to three months home confinement and a three year period of probation, but did not impose a fine after determining that Waters did not possess the resources to pay a criminal assessment. As a further consequence of his federal conviction, the Florida Fish & Wildlife Conservation Commission revoked all of Waters’ remaining licenses, and prohibited his transfer of the valuable “Marine Life Dive” endorsement he had held during the period of the criminal conduct.
According to the allegations of the Information filed against him, and a Joint Factual Statement submitted by the parties, at the relevant times, Waters, was a resident of Hernando County, Florida, and the holder of a Saltwater Products License (SPL) issued by the Florida Fish & Wildlife Conservation Commission (FWCC), which authorized him, among other things, to harvest live Ricordea florida, a corallimorph species native to the salt water reefs of South Florida.
The representative charge in the case noted that in August 2013, Waters called an individual in Colorado, with whom he had prior business dealings, stating that Waters would be in the Florida Keys shortly collecting marine specimens and offering to sell “more” Ricordea florida. At the direction of FWS agents, the cooperator ordered 150 ricordea. Waters advised he planned to ship the ricordea by September 3, 2013 at a price of $4.00 each for the ricordea.
Through surveillance and information provided by witnesses, the investigating agents determined that in order to conduct the harvest of Ricordea florida, Waters towed a boat from his residence to the Keys. The Joint Factual Statement further stated that on September 2, 2013, Waters called the buyer, confirming the order of 150 ricordea would be sent via Fed-Ex the following day. On September 4 a package from Waters was delivered via Fed-Ex to the Colorado address. Included in the shipment was an invoice for 150 ricordea at $4.00 each, for a total of $600.00, and a pre-completed bank deposit slip for Waters’s bank account for a deposit of $600.00. FWS Agents deposited $600.00 cash into the bank account associated with the deposit slip. Further evidence in the case established that during the relevant period, Waters illegally sold approximately 2,600 of the ricordea to a number of out-of-state buyers.
Mr. Ferrer commended the investigative efforts of the U.S. Fish & Wildlife Service Office of Law Enforcement and the NOAA Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This matter was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Finds Stockton Woman Guilty on All Counts in Criminal Tax CaseRead the Press Release
SACRAMENTO, Calif. — Terrylyn McCain, 67, of Stockton, was found guilty today by a federal jury of a scheme to defraud the United States by filing false tax returns and buying gold with the proceeds of the fraud, United States Attorney Benjamin B. Wagner announced.
The jury found McCain guilty of four counts of mail fraud in the fraud scheme for mailing false tax returns, four counts of making false claims against the United States by falsifying personal income tax returns for tax years 2005 to 2008, and three counts of money laundering for buying gold with proceeds of the fraud. After a five-day trial, the jury deliberated less than two hours.
According to court documents and evidence introduced at trial, McCain mailed tax returns to the IRS and claimed that banks, tow truck companies, department stores, interior designers and even her gardener had withheld income due to her. To support her scheme, she utilized false documents that indicated significant tax withholdings, including 1099–OID forms that were purportedly issued by financial institutions such as Bank of Stockton and national retailers such as Costco and Target. In reality, funds were never withheld, the 1099–OID forms were fraudulent, and McCain’s tax returns were falsely inflated by hundreds of thousands of dollars.
In total, McCain filed at least 12 fraudulent returns that sought nearly $3 million in tax refunds. In just one instance, early in the scheme, the IRS refunded $156,373 to McCain. Within the month, she had used the refund money to purchase approximately $62,000 in gold coins, forming the basis for the money laundering charges.
According to documents and evidence introduced at trial, the IRS attempted to collect the money it mistakenly paid McCain in response to one of her fraudulent tax returns. The trial evidence revealed that McCain refused to return the mistaken payment, going so far as to fraudulently prepare a counterfeit cashier’s check using an IRS payment voucher to satisfy her tax debt.
U.S. Attorney Wagner said: “As millions of Americans prepare to file their tax returns in the coming weeks, the jury’s swift guilty verdict on all counts in this case is a reminder that these few who attempt to cheat their country should expect little sympathy from federal law enforcement or from the citizens who are called to serve their civic duty as jurors.”
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys William S. Wong and Kevin Khasigian are prosecuting the case.
McCain is scheduled to be sentenced by United States District Judge Troy L. Nunley on June 4, 2015. She was ordered detained in custody pending sentencing. She faces a maximum sentence of 20 years in prison for the mail fraud counts, five years in prison for the false claims against the United States counts, and 20 years in prison for the money laundering counts. 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.
Father, Son Sentenced for $1 Million Conspiracy to Steal Trucks and Trailers, CargoRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., area men were sentenced in federal court today for their roles in a 14-year-long conspiracy to steal more than $1 million worth of trucks and trailers and their cargo.
Jon “Dirk” Dickerson, 57, of Raytown, Mo., and his son, Kyle Wayne Dickerson, 32, of Holden, Mo., were sentenced by U.S. Chief District Judge Greg Kays. Jon Dickerson was sentenced to 15 years and eight months in federal prison without parole. Kyle Dickerson was sentenced to nine years and two months in federal prison without parole. The court also ordered the Dickersons to pay $995,129 in restitution and a forfeiture money judgment of $1,270,089.
Jon and Kyle Dickerson have been in federal custody since the conclusion of a two-week trial on Feb. 28, 2014.
Jon and Kyle Dickerson, along with co-defendant Kenneth Ray Borders, 44, of Kansas City, Mo., were found guilty at trial of participating in a conspiracy that involved the theft of commercial trucks and trailers and their cargo in Missouri, Kansas, Florida, Arkansas, Oklahoma, and Nebraska from 1998 to December 2013. They worked together to steal trucks, trailers, and cargo and then dispose of them. Sometimes they used the trucks and trailers themselves to make money by hauling loads for customers and sometimes they sold the stolen trucks and trailers.
Eight additional defendants have pleaded guilty and been sentenced.
In addition to the conspiracy, Jon Dickerson was found guilty of three counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles. Kyle Dickerson also was found guilty of one count of aiding and abetting the transportation of stolen vehicles, two counts of aiding and abetting the possession of stolen goods and one count of aiding and abetting the possession of stolen vehicles. Borders also was found guilty of four counts of aiding and abetting the possession of stolen goods, one count of aiding and abetting the transportation of stolen goods and one count of aiding and abetting the possession of stolen vehicles.
Borders was sentenced on Dec. 8, 2014, to 21 years and 10 months in federal prison without parole. The court also ordered Borders to pay $1,270,089 in restitution to 27 victims. Borders’ sentence takes into account his previous criminal history of theft of a truck, trailer and cargo in this district and the District of Nebraska. He also has numerous instances of driving without a license or with a suspended license and was under a criminal sentence for driving while revoked during the conspiracy.
The conspiracy involved the thefts of five Freightliner trucks and 17 trailers between 2005 and 2011. The stolen trailers included refrigerated trailers containing such cargo as 39,000 pounds of meat, 565 boxes of beef valued at $149,790, $125,000 worth of frozen ribs, and several refrigerated trailers that each contained tens of thousands of dollars’ worth of frozen chicken, including a load of frozen chicken wings valued at $59,706. Also stolen were utility trailers containing such cargo as Budweiser beer valued at $16,657, Nike shoes valued at $217,353 and 21,018 pounds of Little Sizzler sausages.
Stolen cargo was sold cheaply to anyone who would buy it. Some of the cargo was sold out of the back of the trailer; some of it was sold to a tow truck driver or a convenience store operator to resell.
Jon Dickerson often had the first right to purchase stolen trucks and trailers. In fact, Borders actually had a “shopping list” from Dickerson listing the trucks and trailers that he wanted, so that Borders could keep an eye out for them and steal them if the opportunity presented itself. Jon Dickerson had Borders steal vehicles to provide him with a supply of replacement parts for his trucks. For example, if an engine failed on one of Jon Dickerson’s trucks, he would have Borders steal a truck with a similar engine to replace it.
Jon and Kyle Dickerson also were involved in stealing trucks and trailers. They used them in their own trucking business, sometimes just for replacement parts with the remains sold for scrap. Kyle Dickerson had the tools, ability, and willingness to disguise the stolen nature of the trucks and trailers by altering their Vehicle Identification Numbers (VINs) so that they could be used in their trucking business without alerting authorities when they were stopped or inspected.
The Dickersons reduced their costs of doing business by stealing trucks and trailers themselves, or by buying stolen trucks and trailers from Borders, at a fraction of their fair market value. Since they had little financial investment in the stolen trucks and trailers, and knew that they had a readily-available and cheap supply of stolen trucks and trailers, they had little incentive to maintain and repair their fleet. As a result, their fleet wore out and had safety issues, such as problems with brakes and tires. When their fleet wore out, they simply replaced them with more stolen trucks and trailers.
The Dickersons did not bother to maintain and repair their trucks and trailers but continued to operate them in interstate commerce. As a result, the Department of Transportion (DOT) and other law enforcement repeatedly cited their company and drivers for failing inspections and violating regulations. The company's compliance reviews led to unsatisfactory safety ratings which led to a total of $450,000 in fines and numerous “out of service orders” directing them to cease operating in interstate commerce. The Dickersons just ignored the orders and the fines.
The abuse in the trucking industry not only impacts public commerce, the government charges, but also public safety. While the thefts themselves were egregious, the Dickersons’ audacious use of worn-out vehicles and not maintaining equipment such as brakes puts the public’s safety at considerable risk.
At a DOT roadside inspection, a Dickerson truck, trailer, or cargo could be delayed, or even impounded, if their poor record or condition prompted too many questions. The Dickersons’ scheme, however, included a way to downplay this risk. The Dickersons operated what is known in the industry as “chameleon carriers.” They simply abandoned their old company – along with its "baggage" of safety violations, “out of service” orders, and unpaid fines – and began operating with a new company under a new name. Thus, after Jon Dickerson’s company Fish and More was subject to more than $150,000 in fines and four orders to cease interstate transportation, he began operating under the name D&T Trucking. After D&T Trucking was subject to nearly $300,000 in fines and 17 orders to cease interstate transportation, the United States obtained a civil injunction and default judgment, and D&T Trucking was permanently enjoined from operating in interstate commerce. At that point, Kyle Dickerson got a DOT number for Night Line Trucking and Repair. Night Line Trucking and Repair received an unsatisfactory safety rating and an order to cease interstate transportation. The Dickersons then started operating under the name Nightline Trucking, LLC.
Beyond the direct losses to their victims, the Dickersons’ actions had significant impact on the trucking industry and its regulatory system. Their business morphed through four versions over 14 years - Fish and More, D&T Trucking, Night Line Trucking and Repair, and Nightline Trucking, LLC. – in an effort to avoid DOT sanctions for faulty or failed equipment that would have shut down the businesses. These business practices resulted in hundreds of vehicle stops and inspections which taxed various arms of the DOT and parallel state agencies and created extensive and expensive legal processes. The Dickersons, using their knowledge of the trucking regulations, took advantage of slow reporting and lack of federal-state consolidated record keeping to exploit the system until finally the extreme measure of an Out of Service and Record Consolidation Order was issued on July 29, 2013, putting their last company officially out of business.
This case was prosecuted by Senior Litigation Counsel Gregg R. Coonrod and Assistant U.S. Attorney Cindi S. Woolery. It was investigated by the Department of Agriculture – Office of Inspector General, the FBI, the Kansas City, Mo., Police Department, the National Insurance Crime Bureau, the National White Collar Crime Center, the Mid-States Organized Crime Information Center, Travelers Investigative Services, the Missouri State Highway Patrol, the Florida State Highway Patrol, and the U.S. Department of Transportation, Federal Motor Carrier Safety Administration.
Escape from San Francisco Federal Building Results in Additional Charges Against Alleged Art FraudsterRead the Press Release
SAN FRANCISCO – Yesterday a grand jury returned a superseding indictment against Luke D. Brugnara, adding charges that he escaped from custody and violated a court order governing a furlough established by the district court, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David Johnson and U.S. Marshal Don O’Keefe.
Brugnara, 50, previously had been charged with mail and wire fraud, in addition to false declarations before a court, in connection with his alleged agreement to purchase several works of art for a combined total of approximately $11,000,000. The new indictment re-alleges those charges, and adds that on February 5, 2015, Brugnara violated the terms of a court order when he escaped from his lawyer’s custody at 450 Golden Gate Avenue in San Francisco, California. A federal court order furloughed Brugnara to the custody of his lawyer in the federal building for the purpose of preparing for trial. After absconding, Brugnara remained a fugitive for six days until he was apprehended in Los Gatos, California, on February 11, 2015. He has remained in custody since.
Brugnara was apprehended as a result of a cooperative effort by the United States Marshals Service and the Federal Bureau of Investigation. His next court appearance is scheduled for Tuesday, March 17, at 2:00 p.m. before United States District Judge William Alsup.
Please note that an indictment contains only allegations and, as with all defendants, Brugnara must be presumed innocent unless and until proven guilty. The maximum statutory penalty for mail fraud, in violation of Title 18, United States Code, Section 1341, and wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, forfeiture, and restitution. The maximum statutory penalty for false declarations to a court, in violation of Title 18, United States Code, Section 1623, and escape, in violation of Title 18, United States Code, Section 751(a), is 5 years in prison, a fine of $250,000, forfeiture, and restitution. The penalty for contempt of court, in violation of Title 18, United States Code, Section 401(3), is at the discretion of the court. Any sentence following conviction, however, would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Benjamin Kingsley and Robin Harris are prosecuting the case with the assistance of Jessica Meegan, Trina Khadoo, and Mary Mallory. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Marshals Service.
Eigtheen Indicted in Nashville-Detroit Drug Distribution ConspiracyRead the Press Release
Tens of Thousands of Oxycodone and Oxymorphone Pills Distributed in Middle Tennessee
A federal grand jury in Nashville, Tenn., on Wednesday, returned a 2-count indictment, charging 18 individuals with conspiracy to distribute oxycodone and oxymorphone, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Three of the defendants were also charged with conspiracy to commit money laundering. The indictment also contains forfeiture allegations and the government seeks to forfeit any proceeds and property, including but not limited to a money judgment, representing all or part of the gross proceeds obtained as a result of the alleged crimes.
Yesterday, local, state and federal law enforcement officers in 2 states began arresting those charged in the indictment and also executed several search warrants in the Nashville area and in Detroit, Michigan.
“Illegal drug diversion has greatly contributed to the epidemic prescription drug abuse problem facing our communities today,” said U.S. Attorney David Rivera. “Those who choose to engage in this illegal activity face lengthy prison sentences and the U.S. Attorney’s Office will continue to work closely with the DEA and our local and state law enforcement partners to curtail the diversion of these highly addictive substances.”
“While this investigation involved the diversion of highly addictive pharmaceutical pills from out of state into Tennessee, it is another example of DEA and our federal, state, and local partners working jointly to stop the flow of these diverted pills into Tennessee,” said Michael J. Stanfill, Assistant Special Agent in Charge for DEA-Tennessee. “DEA, the U.S. Attorney’s Office, and our law enforcement partners will not only target those organizations in Tennessee who seek to profit from the illegal distribution of pharmaceuticals and negatively impact our communities, but we will also target the sources of these pills regardless of where they operate.”
Those charged in the drug distribution conspiracy include:
Ashley Kaye Aldrige, 30, of Antioch, Tenn;
Walter Thomas Bowen, Jr., 36, of Smyrna, Tenn;
Bernadette Bradley, aka Bernadette Nichole Colley 43, of Detroit, Mich;
Howard Brons III, 33, of Murfreesboro, Tenn;
Donald Duane Buchanan, Jr., aka Donald Gains, aka Ray Rhodes, 38 of Antioch, Tenn;
Andrew Bradley Froome, 24, of Murfreesboro, Tenn;
Robert Edwin Hampton, 38, of Smyrna, Tenn;
Gene Roland Hardwick, 53, of Detroit, Mich;
Benjamin Edward HenryBradley, 31, of Belleville, Mich;
Tony Wade Holbrooks, 60, of Nashville, Tenn;
James Edward Johnson, II, aka Red, 43, of LaVergne, Tenn;
Felicia Ann Jones, aka Auntie, 55, of Westland, Mich;
Frank Jeffrey Kelly, Jr., aka Little Man, 23, of Smyrna, Tenn;
Eric Anthony McEwen, 38, of Detroit, Mich;
Jonathan Lamar Moore, aka J-Boy, 24, of Antioch, Tenn;
Pamela O’Neal, 52, of Detroit, Mich;
Kai Elijah Ramos, 30, of Smyrna, Tenn. and
Bobby Deandrae Robertson, aka B.O., 27, of Nashville, Tenn.Donald Buchanan, Benjamin Bradley and Felicia Jones were also charged with conspiracy to commit money laundering.
If convicted, each defendant faces a maximum sentence of 20 years in prison on each charge.
This extensive investigation was conducted by the Drug Enforcement Administration; the IRS-Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the FBI; the Tennessee Bureau of Investigation; the Rutherford County, Tenn. Sheriff’s Dept.; the Smyrna, Tenn. Police Dept.; the Mt. Juliet, Tenn. Police Dept.; the 20th Judicial District Drug Task Force; the Michigan State Police; the Brighton, Mich. Police Dept.; and the Clinton township, Mich. Police Dept. Assistant United States Attorney Cecil Vandevender is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
District of South Dakota Welcomes New U.S. AttorneyRead the Press Release
Randolph J. Seiler assumed the duties of Acting United States Attorney for the District of South Dakota on March 12, 2015. Randy Seiler has been with the U.S. Attorney’s Office for 20 years.
From November 2009 to March 2015, Seiler served as both the First Assistant United States Attorney and the Tribal Liaison for the District of South Dakota. Prior to serving in those two capacities, Seiler was an Assistant U.S. Attorney, and he spent 14 years prosecuting violent crime offenses in Indian country and other areas throughout the state. The U.S. Attorney’s Office for the District of South Dakota has jurisdiction on nine Indian reservations
As First Assistant, Seiler was responsible for the day-to-day management and operation of the U.S. Attorney's Office. He was also the supervisor of the U.S. Attorney’s branch office in Pierre, where he was directly involved in prosecutorial matters and decisions.
As Tribal Liaison, he consulted and coordinated with tribal justice officials and leaders, tribal communities, and victim advocates in an effort to address any issues in the prosecution of major crimes in Indian country in South Dakota.
Seiler also served as counsel to the Director in the Executive Office for U.S. Attorneys at the Department of Justice in Washington, D.C., in 2008. He has been an instructor at the National Advocacy Center in Columbia, South Carolina, as well as a presenter at numerous conferences and trainings on various topics including violent crime, sexual assault, domestic violence, and legal issues in the prosecution of crimes in Indian country.
He has received the Attorney General's Award for Fraud Prevention, as well as the Director's Award for Superior Performance in Indian Country.
Prior to joining the U.S. Attorney's Office in 1995, Seiler was in private practice in Mobridge, South Dakota, where he practiced criminal andcivil law. He also previously served as Campbell County Deputy States Attorney and Special Judge for the Cheyenne River Sioux Tribe.In his role as Acting U.S. Attorney, Seiler will continue with the priority areas of the office, and vowed to maintain former U. S. Attorney Brendan Johnson's strong commitment to prosecuting Indian country crimes and human trafficking.
Seiler grew up in Herreid, South Dakota, served his country in the U.S. Air Force, which included a year-long tour in Vietnam, and graduated from the University of South Dakota School of Law.
He and his wife, Wanda, live in Fort Pierre, and have four grown children and twograndchildren. Additionally, Seiler currently serves his community as a member of the Fort Pierre City Council.
Seiler plans to formally seek the nomination for U.S. Attorney for the District of South Dakota.
Deputy Director of Hudson County Correctional Facility Found Guilty of Illegal WiretappingRead the Press Release
NEWARK, N.J. – The deputy director of the Hudson County Correctional Facility was found guilty today of illegally wiretapping his co-workers and another individual, U.S. Attorney Paul J. Fishman announced.
Kirk Eady, 46, of East Brunswick, N.J. was found guilty of one count of intentionally intercepting the wire, oral or electronic communications of others following a four-day trial before Judge Jose L. Linares. The jury deliberated three hours before returning the guilty verdict.
According to the documents filed in this case and the evidence at trial:
From March 8, 2012, to July 8, 2012, while working as the deputy director of the Hudson County Correctional Facility, Eady used the services of a website on more than 10 occasions to intercept the telephone calls of other Hudson County Correctional Facility employees and another individual who were critical of his work performance. Eady was able to conceal the telephone number from which the call originated. He then called two of the employees at the same time and made it appear that one or both of the other individuals initiated the call. Eady also recorded these telephone conversations and never told the other employees he was recording these private communications. These individuals did not consent to their private conversations being monitored and recorded by Eady.
The wiretapping count on which Eady was convicted is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 8, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys David L. Foster and Amy Luria of the U.S. Attorney’s Office Special Prosecution Division.
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Defense counsel: Peter Willis Esq., Jersey City, N.J.Eady, Kirk Indictment