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Wednesday 11 March 2015
*******media Advisory*******Read the Press Release
FORT WORTH TO JOIN NATIONAL EFFORT TO BUILD TRUST AND RECONCILIATION BETWEEN LAW ENFORCEMENT AND COMMUNITIES THEY SERVE
Attorney General Holder to Convene My Brother’s Keeper Roundtable with Students and Officers to Announce Six Regional Sites for the National Initiative for Building Community Trust and Justice
FORT WORTH, Texas – As part of the Department of Justice’s ongoing commitment to strengthening the relationship between law enforcement and the communities they serve, tomorrow, THURSDAY, MARCH 12, 2015 at 2:00 p.m. CDT, Attorney General Eric Holder will announce the first six pilot sites for the National Initiative for Building Community Trust and Justice.
The National Initiative for Building Community Trust and Justice, first announced in April 2014, is a $4.75 million partnership between the Department of Justice and criminal justice experts that will invest in training, evidence-based strategies, policy development and research to combat distrust and mend bonds between law enforcement and the community.
Attorney General Holder will announce the six Building Community Trust pilot sites after a My Brother’s Keeper roundtable discussion at the Department of Justice with law enforcement officers and students. This announcement comes on the heels of the Attorney General’s multi-state Building Community Trust tour held over the last several months.
WHO: Attorney General Eric Holder Assistant Attorney General Karol V. Mason of the Office of Justice Programs
WHEN: THURSDAY, MARCH 12, 2015 2:00 p.m. CDT
WHERE: U.S. Department of Justice 950 Pennsylvania Avenue, N.W. Washington, DC 20530. PHOTO SPRAY AT THE BOTTOM (Media Access: 2:30 p.m. EDT//Media Gather Time: 3:00 p.m. EDT//Department of Justice Visitor’s Center on Constitution Avenue between 9th and 10th Streets.)
Background on the National Initiative for Building Community Trust:
The initiative, which is an ongoing partnership with the Justice Department, will provide training to law enforcement and communities on bias reduction, procedural fairness, and reconciliation, and will apply evidence-based strategies in six pilot sites around the country. It will also establish a clearinghouse where information, research and technical assistance are readily accessible for law enforcement, criminal justice practitioners and community leaders.
The three-year grant has been awarded to a consortium of national law enforcement experts led by John Jay College of Criminal Justice. Yale Law School, the Center for Policing Equity at UCLA and the Urban Institute make up the rest of the consortium. The initiative will be guided by a board of advisors which includes national leaders from law enforcement, academia and faith-based groups, as well as community stakeholders and civil rights advocates. In a holistic approach, the initiative will simultaneously address the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation.
The initiative will complement and be advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Office on Violence Against Women, the Civil Rights Division and the Community Relations Service.
Tuesday 10 March 2015
Zuni Pueblo Man Charged with Assaulting Three-Year-Old ChildRead the Press Release
ALBUQUERQUE – Terrence Fred Cachini, 28, a member and resident of Zuni Pueblo, N.M., made his initial appearance in federal court in Albuquerque, N.M., on a criminal complaint charging him with assault resulting in serious bodily injury. Cachini entered a not guilty plea to the charge in the criminal complaint and was released to a half-way house pending trial.
The criminal complaint alleges that Cachini assaulted a three-year-old Indian child and caused the victim to suffer serious bodily injury on Feb. 24, 2015, at a residence in Zuni Pueblo within McKinley County, N.M. According to the criminal complaint, the FBI initiated an investigation into Cachini on Feb. 25, 2015, after receiving a report from medical staff at the University of New Mexico Hospital where the victim was being treated for injuries, including soft tissue injuries to all planes of the victim’s body, allegedly caused by physical abuse.
If convicted of the charges in the criminal complaint, Cachini faces a statutory maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque and Gallup offices of the FBI. Assistant U.S. Attorney Sarah Mease is prosecuting the case.
Woodring Pleads Guilty to Federal Charges Related to Attacks on Power GridRead the Press Release
LITTLE ROCK – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; and Grover Crossland, Resident Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) – Little Rock Field Office announced today that Jason Woodring, age 38, of Jacksonville, Arkansas, pleaded guilty today to charges related to his attacks on Central Arkansas’ power grid between August and October of 2013. Those attacks included sabotaging an electrical support tower and downing a 500,000-volt power line onto a railroad track near Cabot, Arkansas, which resulted in approximately $550,000 worth of damage; setting fire to and destroying an Extra High Voltage (EHV) switching station in Scott, Arkansas, causing over $4,000,000 in damages; and cutting down two power poles, which led to the temporary loss of power to approximately 9,000 people in Jacksonville, Arkansas. According to First Electric Cooperative representatives, damages from this incident exceeded $48,000. Woodring was charged in an 8-count indictment by a federal grand jury on November 6, 2013. He has been in federal custody since that time.
Pursuant to a plea agreement with the United States, Woodring pleaded guilty to Destruction of an Energy Facility for downing the Cabot power lines (Count Two) and for setting fire to the Scott power station (Count Three). He also pleaded guilty to Using Fire to Commit a Felony (Count Four) in relation to the arson in Scott. Finally, Woodring pleaded guilty to being an illegal drug user in possession of various firearms and ammunition (Count Eight) and agreed to forfeit the firearms and ammunition.
“The citizens of Central Arkansas can rest a bit easier today with the plea of Jason Woodring,” stated Thyer. “The power grid attacks had the potential to put many lives at risk. When we depend on electrical power not only for comfort and convenience, but also for safety, security and life-sustaining equipment, not knowing where the next attack would occur held the public hostage to an unknown attacker. I am extremely grateful to all the investigators from the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission for their cooperation and commitment to this investigation these past few months.” Under the plea agreement, the United States and Woodring have agreed that Woodring should be sentenced to 180 months (or 15 years) in federal prison. The presiding judge, the Honorable Billy Roy Wilson, will determine his actual sentence. The amount of restitution owed by Woodring will be determined at or before his sentencing hearing scheduled for June 18, 2015, at 10:30 a.m.
The charge of Destruction of an Energy Facility carries a possible sentence of not more than 20 years in prison. Use of a Fire to Commit a Felony has a statutory sentence of ten years which must be served consecutive to the underlying felony. The charge of being a Drug User in Possession of a Firearm or Ammunition carries a possible sentence of not more than ten years in prison. Woodring could also face not more than a $250,000 fine for each charge against him and not more than three years of supervised release.
This investigation was conducted by the FBI, Joint Terrorism Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Union Pacific Police, Entergy, First Electric, Lonoke County Sheriff’s Office, Cabot Police, Arkansas State Police, Conway Police Department, Little Rock Police Department and Arkansas Game and Fish Commission.
Violent Felon Charged with Murder of a Deputy U.s. MarshalRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that JAMIE D. CROOM, age 31, has been charged in a federal criminal complaint with the murder of Deputy United States Marshal Josie Wells while Deputy Wells was engaged in the performance of his official duties, in violation of Title 18, United States Code, Sections 1111 and 1114.
Drew J. Wade, Chief of Public Affairs for the U.S. Marshals Service, released the following statement concerning the incident giving rise to the federal complaint: “At approximately 11:00 a.m. today, Deputy Marshal Wells died in the line of duty. Deputy Marshal Wells was part of a team executing a warrant on a fugitive wanted for double homicide. The team engaged gunfire and Wells was shot. He was immediately transported to an area hospital, where he died. The fugitive was also shot and transported to a hospital. The shooting investigation is being led by the Federal Bureau of Investigation and the Baton Rouge Police Department. No other law enforcement personnel were injured during this incident.”
This matter is being investigated by the FBI and the Baton Rouge Police Department, with the assistance of the East Baton Rouge Sheriff’s Office, the Louisiana State Police, the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), the Pointe Coupee Sheriff’s Office and the District Attorney’s Offices for the Nineteenth and Eighteenth Judicial Districts.
This matter is being prosecuted by Assistant United States Attorneys M. Patricia Jones, who serves as Senior Litigation Counsel, and Robert W. Piedrahita, who serves as Litigation Counsel.
NOTE: A federal complaint is an accusation by the United States. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Utah Resident Sentenced for Tax Evasion and Filing a False ReturnRead the Press Release
A Kaysville, Utah, man was sentenced yesterday in the U.S. District Court for the District of Utah to serve 27 months in prison to be followed by three years of supervised release, and ordered to pay $174,684 in restitution.
On Sept. 19, 2014, Jon T. McBride was convicted following a jury trial of three counts of tax evasion and one count of filing a false federal income tax return, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
The evidence at trial established that McBride prepared and filed a false individual federal income tax return for the year 2005. He failed to report approximately $109,785 in gross income that he received during the 2005 tax year. McBride also willfully attempted to evade his federal income taxes for the 2006, 2007 and 2009 tax years by failing to file an individual federal income tax return, filing a false tax return where he underreported his income by more than $300,000, and filing a false tax return that reported zero income. McBride also used several nominees to hide and conceal his ownership in property and partnerships to keep those assets out of the reach of the Internal Revenue Service (IRS).
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Brent Ward of the Justice Department’s Criminal Division and Andrea Kafka of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Utah for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Utah Resident Sentenced for Tax Evasion and Filing a False ReturnRead the Press Release
SALT LAKE CITY - Jon Telford McBride of Kaysville, Utah, was sentenced Monday afternoon in U.S. District Court in Salt Lake City to 27 months in prison to be followed by three years of supervised release. He also was ordered to pay $174,684 in restitution.
McBride was convicted of three counts of tax evasion and one count of filing a false federal income tax return following a jury trial in September, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
“In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said John G. Collins, IRS Criminal Investigation Special Agent in Charge of Utah. “Taxpayers deserve our vigilance in the investigation and prosecution of those who choose to file false tax returns and try to evade paying the taxes they owe. This sentence should send a clear message; schemes to evade the payment of taxes are a violation of the federal tax laws and the consequences of such schemes can and will result in jail time.”
The evidence at trial established that McBride prepared and filed a false individual federal income tax return for the year 2005. He failed to report approximately $109,785 in gross income that he received during the 2005 tax year. McBride also willfully attempted to evade his federal income taxes for the 2006, 2007 and 2009 tax years by failing to file an individual federal income tax return, filing a false tax return where he underreported his income by more than $300,000, and filing a false tax return that reported zero income. McBride also used several nominees to hide and conceal his ownership in property and partnerships to keep those assets out of the reach of the Internal Revenue Service (IRS).
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Brent Ward of the Justice Department’s Criminal Division and Andrea Kafka of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Utah for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two St. Robert Women Plead Guilty to Nigerian Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Robert, Mo., women have pleaded guilty in federal court to their roles in a Nigerian fraud scheme in which thousands of victims across the country were tricked into cashing up to $3 million in counterfeit money orders and cashier’s checks.
Lisa Kaye Barwick-Majeski, 54, of St. Robert, pleaded guilty today before U.S. District Judge M. Douglas Harpool to leading the conspiracy to commit wire fraud. Co-defendant Cheryl Barber, 41, also of St. Robert, pleaded guilty to her role in the conspiracy on Feb. 10, 2015.
Under the terms of today’s plea agreement, Barwick-Majeski must pay up to $3 million in restitution to her victims and must forfeit $1,485,301 to the government.
By pleading guilty today, Barwick-Majeski admitted that she was the primary leader of a conspiracy that involved counterfeit postal money orders, counterfeit bank cashier’s checks and numerous wires to unindicted co-conspirators in the country of Nigeria.
Barwick-Majeski, with the help of Barber and other co-conspirators, dispatched counterfeit postal money orders and bogus cashier checks to thousands of victims throughout the United States. These false money orders and cashier checks were deposited in victims’ bank accounts after the victims were duped into believing they were paid participants as part of a “secret shopper” exercise designed for them to evaluate Wal-Mart and various money wire outlets. The victims were instructed to keep approximately $200 or more of the less than $2,000 counterfeited postal money order or bogus cashier’s check, and immediately wire the remaining money to Barwick-Majeski and her co-defendants. After a few days, the counterfeited money order or bogus cashier’s check would be returned against the victims’ account as not negotiable. The victims would then be obligated to pay their banks or their financial institutions for most of the money they wired to Barwick-Majeski and others.
Barwick-Majeski and her co-defendants shared most of their proceeds with a group of Nigerians that were responsible for supplying Barwick-Majeski with fraudulent postal money orders and cashier’s checks.
Barber admitted that she wired funds to co-conspirators in Nigeria to further the illegal scheme. Barber admitted that her criminal conduct within the wire fraud conspiracy amounted to approximately $25,129 of illegal wires sent or received by Barber. Under the terms of her plea agreement, Barber must pay restitution to her victims.
During the course of the investigation, according to court documents, law enforcement officers seized more than $1.7 million worth of counterfeit postal money orders. Some of those counterfeit money orders were taken directly from Barwick-Majeski and some were seized by U.S. Customs and Border Protection or intercepted en route to Barwick-Majeski.
In addition to the counterfeit postal money orders, law enforcement officers executed a search warrant at Barwick-Majeski’s residence on Nov. 5, 2013, and seized a parcel that contained 354 counterfeit BMO-Harris Bank cashier’s checks with a total face value of more than $1 million. According to court documents, law enforcement officers also seized $406,800 in counterfeit Mid Missouri Credit Union cashier’s checks during the investigation.
Under federal statutes, Barwick-Majeski and Barber are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Robert, Mo., Police Department.
Twenty-Six People Indicted for Conspiracy in which Electronics Stolen in Toledo were Sold in Michigan and the Middle EastRead the Press Release
Twenty-six people, most of them from the Toledo area, were indicted in federal court for their roles in a wide-ranging conspiracy in which stolen computers, smart phones and other electronics were fenced at stores in Toledo and resold in Michigan and the Middle East, law enforcement officials said.
Some members of the conspiracy used firearms, threats and violence as part of their operation. Others illegally cashed millions of dollars’ worth of checks at their stores. Others sold counterfeit clothing from their stores. And members of the conspiracy worked together at various Toledo stores to launder money, according to the indictment.
The indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, Toledo Police Chief George Kral, Lucas County Sheriff John Tharp and Troy Stemen, Assistant Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Indicted are Mamoun Awwad, 43, of Maumee; Adnan Awad, 33, of Toledo; Ihab Awad, 31, of Toledo; Ayman Awwad, 42, of Maumee; Anwar Awad, 39, of Toledo; Kamal Awwad, 40, of Toledo; Fady Awwad, 34, of Toledo; Aref Kahala, 23, of Maumee; Saif Alkhatib, 23, of Perrysburg; Haney Sarsour, 36, of Dearborn, Mich.; Ameen Sarsour, 31, of Dearborn, Mich.; Michael Safadi, 37, of Westland, Mich.; Freddy Delatorre, 32, of Toledo; Jeffrey Houttekier, 24, of Toledo; Ahmed Abdulateeef, 47, of Toledo; Ehab Adbdelsalam, 22, of Toledo; Timothy Fields, 32, of Toledo; Ali Abdallah, 34, of Dearborn, Mich.; Mustafa Deebajah, 27, of Dearborn, Mich.; Essa Allawneh, age unknown, of Amman, Jordan; Adli Alawneh, age unknown, of Amman, Jordan; Omar Dari, 54, of Ann Arbor, Mich.; Mutaz Almumani, 29, hometown unknown; Fadi Qasis, 30, hometown unknown; Mayssam Kaddoura, 36, of Toledo and Jamal Abdel Aziz, 44, of Toledo.
Mamoun Awwad, Adnan Awad, Ihab Awad, Ayman Awwad, Anwar Awad, Kamal Awwad, Fady Awwad and Aref Kahala are family members who own and operate various businesses in Toledo, including clothing stores, electronics stores and grocery/convenience stores. They use these businesses to facilitate various criminal schemes, including the sale of counterfeit goods, trafficking stolen goods and unlawfully cashing checks, according to the indictment.
The Awwad family enterprise bought stolen electronics, such as iPhones, iPads and Samsung cellular phones, from drug addicts and low-income people, then altered the electronics’ hardware and software so they could be registered on cellular networks. The Awwad family enterprise then sold the stolen electronics locally, in Michigan and overseas. Mamoun Awwad did this, in part, by meeting with crew members of Royal Jordanian Airlines in Detroit to have them transport electronics and cash, according to the indictment.
The goal of the conspiracy was to generate cash and send it overseas to establish a series of residences in Rammoun, Palestine, for members of the Awwad family enterprise and their families to own and occupy, according to the indictment.
The family unlawfully cashed checks at the Reynolds Quick Stop and other grocery/convenience stores as a way to generate revenue and launder proceeds from the sale of counterfeit and stolen goods. The family cashed more than $11 million in checks at various store locations between 2011 and 2014, according to the indictment.
The family also knowingly sold shoes, sweat suits, t-shirts and other clothing bearing counterfeit logos and trademarks of brands including Nike, Timberland, Coogi, Ralph Lauren, RoccaWear, Ecko, Lacoste, Dolce Gabbana and others, according to the indictment.
The Awwad family enterprise used violence and threats of violence to maintain control of the stolen goods market in Toledo. For example, Mamoun Awwad threatened someone with a 9 mm pistol while an employee held a knife of their throat. In another incident, Mamoun Awwad assaulted someone outside a cellular phone store because that person tried to sell seven stolen iPhones without Mamoun Awwad’s permission, according to the indictment.
The conspiracy took place from 2006 through 2015, according to the indictment.
Count 1 charges a RICO conspiracy. Count 2 charges conspiracy – interstate and foreign transportation of stolen property. Count 3 charges conspiracy to smuggle goods from the U.S. Count 4 charges conspiracy to commit access device fraud. Count 5 charges conspiracy to traffic counterfeit goods. Count 6 charges conspiracy to commit money laundering.
“This is a sophisticated crime and money-laundering racket whose reach stretched from Ann Arbor to Amman,” Dettelbach said. “According to the indictment, they bought stolen electronics, often from drug addicts in Toledo, and shipped them out of the state and country for millions of dollars.”
“The Awwad criminal enterprise used force and intimidation to control their complex network of illegal schemes all in an effort to line their bank accounts with millions,” Anthony said. “We are pleased the strength of our long standing local, state, and federal law enforcement partnerships has successfully dismantled a pervasive criminal enterprise that has plagued the citizens of Toledo and Lucas County for more than a decade."
“I think an operation such as this shows how well local law enforcement works with the federal government,” Kral said. “Multiple arrests, simultaneous search warrants, and complex investigations require synergy and cooperation. One agency alone simply can’t get it done. The working relationship between TPD and our federal partners has never been better. The citizens of the City of Toledo are much safer thanks to this multidisciplinary approach to policing."
“The 26 individuals indicted went to great lengths to create the illusion of a successful family enterprise. In reality, what they created was nothing more than a false front, hiding a tangled web of financial lies,” Stemen said. “This massive federal indictment has exposed these individuals for who they really are, thugs and thieves. It would not have been possible without the highly successful collaboration of IRS-Criminal Investigation and our federal and local law enforcement partners; including the Toledo Police Department and the Lucas County Sheriff’s Office, both of which played critical roles in the success of this investigation.”
This case is being prosecuted by Assistant U.S. Attorneys Duncan Brown and Michael Freeman following an investigation by the FBI, Toledo Police Department, Lucas County Sheriff’s Office and IRS-CI.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Indicted for Operating ‘Pay-To-Stay’ Schools That Allegedly Enabled Foreign Nationals to Remain in U.S. as Foreign ‘Students’Read the Press Release
LOS ANGELES – Three Los Angeles-area residents responsible for operating a network of four schools were arrested this morning on federal charges for allegedly helping hundreds of foreign nationals remain in the United States as foreign students, even though they never attended classes.
The three defendants allegedly ran a “pay-to-stay” scheme through three schools in Koreatown – Prodee University/Neo-America Language School; Walter Jay M.D. Institute, an Educational Center (WJMD); and the American College of Forensic Studies (ACFS) – and a fourth school currently operating in Alhambra, Likie Fashion and Technology College.
The three defendants are named in a 21-count indictment returned yesterday by a federal grand jury. The indictment alleges a conspiracy to commit immigration fraud, a host of immigration offenses and money laundering.
The indictment also contains an allegation that would require the defendants to forfeit property and proceeds derived from the fraud scheme, which investigators estimate took in as much as $6 million a year in “tuition” payments.
“Immigration fraud schemes potentially compromise national security and cheat foreign nationals who play by the rules,” said Acting United States Attorney Stephanie Yonekura. “In this case, officials at several schools allegedly abused their responsibility to ensure that only legitimate foreign students were allowed to the stay in the country. This type of fraud against the United States will be thoroughly examined to bring those responsible to justice and to protect the integrity of our immigration system.”
Those named in the indictment unsealed today are:
Hee Sun Shim (also known as Leonard Shim and Leo Shim), 51, of Beverly Hills, the owner and manager of the schools;
Hyung Chan Moon (also known as Steve Moon), 39, of Los Angeles, who assisted with the operation and management of the schools; and
Eun Young Choi (also known as Jamie Choi), 35, of Los Angeles, a former employee who assisted with the operation and management of the schools.
The defendants, who were taken into custody by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI),
are expected to be arraigned on the indictment tomorrow in United States District Court.“Given the implications for national security and public safety, we will move aggressively to target individuals who compromise the integrity of our nation’s immigration system out of greed and self-interest,” said Claude Arnold, special agent in charge for HSI Los Angeles. “Simply put, those who exploit the benefits of the student visa program can expect to get a lesson in criminal justice.”
The investigation in this case began in 2011 after a compliance team from HSI’s Student and Exchange Visitor Program (SEVP) paid an unannounced visit to Prodee University’s main campus on Wilshire Boulevard. During the visit, the team observed only one English language class with three students in attendance, even though records for the Student and Exchange Visitor Information System (SEVIS) showed more than 900 foreign students were enrolled at Prodee’s two campuses. That same day, the SEVP team made an unannounced visit to ACFS where they found only one religion class in session with a single student present. At the time, SEVIS records indicated that ACFS had more than 300 foreign students in active status.
During the ensuing investigation, HSI special agents identified several dozen foreign nationals, primarily from South Korea and China, who originally entered the U.S. as F-1 non-immigrant students to attend other SEVP authorized schools, but subsequently transferred to schools in the Prodee network. These students lived across the nation, indicating that they were not actually attending classes at Prodee or the other schools.
As detailed in the indictment, Prodee and its affiliated schools were authorized to issue a document that certified a foreign national had been accepted to a school and would be a full-time student. The document – “Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students,” which is commonly called a Form I-20 – made a student eligible to obtain an F-1 student visa that would allow the student to enter and remain in the United States while the student was making normal progress toward completing a full course of study.
The indictment alleges that Prodee and the other schools issued Form I-20s to foreign nationals who were not bona fide students, had no intention of attending the schools and lived outside of California. As part of the conspiracy, Shim and Choi allegedly were involved in the creation of bogus student records, including transcripts, for some of the students for the purpose of deceiving immigration authorities. The indictment further alleges that Shim would transfer a purported student from one school to another to avoid arousing the suspicion of immigration authorities about “students” who had been in the United States for lengthy periods of time.
In exchange for the Form I-20, a student would make “tuition” payments of as much as $1,800 to “enroll” for six months in one of the schools, according to the indictment.
The indictment charges Shim, Moon and Choi with conspiring to commit immigration fraud. Shim is charged with 13 counts of use or possession of an immigration document procured by fraud; and Moon and Choi are each charged with one count of the same offense. Shim is charged with three counts of encouraging illegal residence, as well as two counts of money laundering.
The conspiracy count carries a statutory maximum sentence of five years in federal prison. The substantive immigration fraud charges each carry up to 10 years in prison. The money laundering charges carry a potential penalty of 20 years.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Effective immediately, Prodee and its affiliated schools will no longer be able to access SEVIS, and HSI will be seeking to withdraw the schools’ SEVP certification, which will bar the institutions from enrolling foreign students. Foreign students who are currently enrolled at any of these schools should contact SEVP representatives for further instructions at (703) 603-3400 weekdays between 7 a.m. and 8 p.m. EDT. Additional information for affected students has also been posted on the SEVP Web page on ICE’s website, http://www.ice.gov/sevis/whats-new.
SEVP monitors approximately 1 million international students who are pursuing studies in the U.S. on F and M visas. It also certifies schools that enroll these students and manages the SEVIS database, which houses information on international students, exchange visitors and their dependents. In addition to unannounced site visits to SEVP-certified schools, SEVP’s compliance unit has implemented a number of measures to ensure only bona fide U.S. schools can enroll international students, including the use of a risk assessment tool, requirements for regular recertification, and the deployment of field representatives to visit certified schools twice yearly.
The HSI-led investigation into Prodee is ongoing. HSI has received substantial assistance with the case from U.S. Citizenship and Immigration Services’ Fraud Detection and National Security Division.
Release No. 15-026
Third Ocean Shipping Executive Pleads Guilty to Price Fixing on Ocean Shipping Services for Cars and TrucksRead the Press Release
An employee of Japan-based Nippon Yusen Kabushiki Kaisha (NYK) pleaded guilty today and was sentenced to 15 months in a U.S. prison for his involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed in U.S. District Court for the District of Maryland in Baltimore on Jan. 16, 2015, Susumu Tanaka, who was a manager, deputy general manager and general manager in NYK’s car carrier division, conspired to allocate customers and routes, rig bids and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. Tanaka participated in the conspiracy from at least as early as April 2004 until at least September 2012.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and off of an ocean-going vessel. Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.
“Today’s sentence is another step toward bringing to justice the perpetrators of this long-running cartel and restoring competition to the ocean shipping industry,” said Bill Baer, Assistant Attorney General for the Antitrust Division. “But this investigation is far from over. We are continuing our efforts to hold accountable the companies and executives who seek to maximize profits through illegal, anticompetitive means.”
Pursuant to the plea agreement, which the court accepted today, Tanaka was sentenced to serve a 15-month prison term and pay a $20,000 criminal fine for his participation in the conspiracy. In addition, Tanaka has agreed to assist the department in its ongoing investigation into the ocean shipping industry.
Tanaka was charged with a violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for an individual. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s sentence is the third against an individual in the division’s ocean shipping investigation, and the first against an individual from NYK. Three corporations have agreed to plead guilty and to pay criminal fines totaling more than $136 million, including NYK, which has agreed to pay a criminal fine of $59.4 million, pending court approval.
This plea agreement is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Baltimore Field Office at 410-265-8080.
South American Counter-Terrorism Official Sentenced to 195 Months in Prison for Attempting to Support HezbollahRead the Press Release
Also Convicted of Narcotics Trafficking and Firearms Offenses
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York announced that Dino Bouterse, a citizen of Suriname who assisted in the formation of that country’s Counter-Terrorism Unit, was sentenced today in federal court in New York City to 195 months in prison for attempting to provide material support and resources to Hezbollah, a designated terrorist organization, along with narcotics trafficking and firearms offenses. Bouterse, who was arrested in Panama on Aug. 29, 2013, and arrived in the United States on Aug. 30, 2013, pleaded guilty before U.S. District Judge Shira A. Scheindlin, who also imposed today’s sentence.
“Dino Bouterse was supposed to oppose terrorism,” said U.S. Attorney Bharara. “Instead, Bouterse betrayed his official position and tried to support and aid Hezbollah, including his agreement to assist Hezbollah in acquiring weapons, and conspiring to import cocaine to the U.S. Today he has been sentenced to a lengthy prison term for those odious crimes.”
According to the indictment, other documents filed in federal court and statements made at today’s sentencing:
In 2013, Bouterse used his position within the government of Suriname to assist individuals he believed were members of Hezbollah, who informed Bouterse that they intended to conduct terrorist attacks against American interests. In exchange for a multimillion-dollar payment, Bouterse agreed to allow large numbers of purported Hezbollah operatives to use Suriname as a permanent base for, among other things, attacks on American targets. In furtherance of his efforts to assist Hezbollah, Bouterse supplied a false Surinamese passport to a purported Hezbollah operative for the purpose of clandestine travel, including travel to the United States; discussed heavy weapons that he could provide to Hezbollah; and instructed the purported Hezbollah members about how Hezbollah operatives, supplied with a Surinamese cover story, could enter the United States.
In June 2013, Bouterse and a co-defendant, Edmund Quincy Muntslag, met in Bouterse’s office in Suriname with confidential sources (the CSs) working with the Drug Enforcement Administration (DEA) to discuss importing cocaine into the United States using commercial airline flights. During the meeting, Bouterse showed the CSs a rocket launcher and a kilogram of cocaine.
Approximately one month later, Bouterse and Muntslag worked to provide transportation and security for cocaine being sent through Suriname to the United States. As a test run, Bouterse and Muntslag sent 10 kilograms of cocaine on a commercial flight departing from Suriname. Bouterse personally verified the arrangements for the 10-kilogram cocaine shipment in a text message. The cocaine was intercepted by law enforcement officials after it departed Suriname.
In July 2013, Bouterse met with one of the CSs to discuss opening Suriname to the CSs’ purported Hezbollah associates.
Later that month, Bouterse met in Europe with one of the CSs and with two other men who purported to be associated with Hezbollah. During this meeting, Bouterse discussed initially hosting 30 to 60 Hezbollah members in Suriname for training and operations. He also indicated that he wanted a Hezbollah cell in Suriname to act, in part, as a personal armed force. Bouterse confirmed his understanding that the purported Hezbollah operatives would operate in South America against American targets, and he agreed to supply Surinamese passports to the operatives and to assist with their applications for visas to travel from South America into the United States. In addition, in response to a request for surface-to-air missiles and rocket-propelled grenades, Bouterse stated that he would need “two months” and that he would provide a list of what he could supply. Finally, at the July 2013 meeting in Europe, Bouterse agreed to create a false Surinamese passport for one of the purported Hezbollah operatives so that Bouterse and the Hezbollah operative could travel to Suriname to inspect the facilities that Bouterse had agreed to prepare for the Hezbollah contingent.
At a subsequent meeting in August 2013, Bouterse delivered a Surinamese passport with false identifying information to a purported Hezbollah operative. As had been discussed at the July 2013 meeting in Europe, the purported Hezbollah operative was to use the fraudulent passport to travel to Suriname. Bouterse indicated that everything was ready in Suriname for the arrival of the purported Hezbollah members, and that some “toys” – a code-word for weapons – would be available for inspection.
Following this meeting, Bouterse was arrested by Panamanian law enforcement and transferred to the custody of the DEA.
* * *
On Aug. 29, 2014, Bouterse pleaded guilty to attempting to provide material support to Hezbollah, a foreign terrorist organization; conspiring to import five kilograms or more of cocaine into the United States; and using and carrying, or aiding and abetting the use and carrying of, a firearm during and in relation to a drug-trafficking crime. In addition to his prison term, Bouterse, 42, a citizen of Suriname, was ordered to pay a $300 special assessment fee.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding efforts of the DEA’s Special Operations Division. Assistant Attorney General Carlin and U.S. Attorney Bharara also thanked the DEA’s Miami Field Division, Panama City Country Office, Port-of-Spain Country Office and Bogota Country Office; the Government of the Republic of Panama; and the U.S. Department of Justice’s Office of International Affairs
This case is being prosecuted by Assistant U.S. Attorneys Michael D. Lockard, Adam Fee, Michael Ferrara and Edward Y. Kim of the Southern District of New York and Trial Attorney Andrew Sigler of the Justice Department’s National Security Division.
Socorro County Man Sentenced to Five Years in Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Dario Olivas, 24, of Veguita, N.M., was sentenced today in federal court in Santa Fe, N.M., to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Olivas was arrested on Aug. 9, 2013, on an indictment charging him with two counts of distributing methamphetamine in Valencia County, N.M., on May 14, 2013 and July 8, 2013.
Olivas pled guilty on March 11, 2014, to one count of methamphetamine distribution. In entering his guilty plea, Olivas admitted that on May 14, 2013, he sold approximately 30.5 gross grams of methamphetamine to an undercover DEA task force officer for $1,100.00 at a restaurant in Belen, N.M. Olivas further admitted that on July 8, 2013, he sold approximately 88.8 gross grams of methamphetamine to the same undercover DEA task force officer for $3,300.00 at a restaurant in Belen.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorneys Samuel A. Hurtado and Stephen R. Kotz.
Shelton Man Sentenced to 70 Months in Federal Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERMAINE BUCHANAN, also known as “Hot Main,” 20, of Shelton, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 70 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin, cocaine and crack cocaine 24-hours a day, seven days a week. BUCHANAN received heroin from Hanks and sold the drug to his own customer base.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition.
BUCHANAN was arrested December 5, 2013. A search of BUCHANAN’s residence at the time of his arrest revealed a Glock 26 handgun, an empty magazine for another firearm, a quantity of heroin packaged for distribution and five mobile phones.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging BUCHANAN, Hanks and 12 other individuals with narcotics and firearms trafficking offenses.
BUCHANAN has been detained since his arrest on December 5, 2013. On August 13, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Hanks pleaded guilty and, on February 26, 2015, he was sentenced to 17 years of imprisonment.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]San Antonio Businessman Arrested in Connection with Multi-Million Dollar Investment ScamRead the Press Release
In San Antonio today, FBI agents arrested 53-year-old Armando Jesus Hernandez Leal of Shavano Park, TX, in connection with a multi-million dollar investment fraud scam announced Acting United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
A federal criminal complaint unsealed today charges Hernandez with one count of wire fraud. According to the complaint, Hernandez was responsible for managing an estimated $66 million investment portfolio of a Mexican businessman and his family. The complaint alleges that from 2005 to 2014, Hernandez had not invested his clients’ money like he had agreed to, but instead spent their money to purchase homes, planes and other assets for his personal use.
Hernandez had his initial appearance in federal court this morning and detained without bond pending a detention hearing scheduled for 3:30pm on March 13, 2015, before United States Magistrate Judge John Primomo. Upon conviction, Hernandez faces up to 20 years in federal prison.
This investigation was conducted by special agents from the FBI and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Greg Surovic is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Raleigh County man sentenced to four years for federal child pornography crimeRead the Press Release
SOPHIA, W.Va. – David Alan Hunt, a 33 year-old Raleigh County man, was sentenced to today to serve four years in federal prison followed by five years of supervised release for possessing child pornography, announced United States Attorney Booth Goodwin. The sentence was handed down by United States District Judge Irene C. Berger.
Hunt previously admitted that on March 23, 2012, he possessed approximately 60 images of child pornography, including sexually explicit images of prepubescent minors and minors engaged in sexual acts. The child pornography was discovered on Hunt’s computers and a computer disc, both of which were located at his home in Sophia, West Virginia. The investigation also revealed that Hunt received and shared child pornography by using a file sharing network that allows users to download files from computers around the world.
U.S. Attorney Goodwin stated, “The exploitation of innocent children is a heinous crime. Child Pornography has a highly destructive impact on the most vulnerable segment of society and my office will work diligently to ensure that individuals like Mr. Hunt are prosecuted to the fullest extent of the law.”
The West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
This case was prosecuted as part of United States Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Pottstown Pair Charged in Attempted Bank RobberyRead the Press Release
James Garner, 30, and Ruben Marshall, 48, both of Pottstown, PA, were charged today with conspiracy to commit armed bank robbery, and possession of a firearm in furtherance of a crime of violence, announced United States Attorney Zane David Memeger. Garner is also charged with attempt to commit armed bank robbery.
According to the indictment, on February 6, 2015, Garner approached Person #1 about robbing the Apex Community Federal Credit Union in Stowe, PA. On February 10, 2015, Marshall allegedly met with Garner to discuss details of the robbery plan. The indictment further alleges that on February 12, 2015, Garner assembled the tools necessary to rob the bank - including masks, two-way radios, gloves, and a handgun - but was arrested that night by the FBI before he could complete the robbery the following morning, as planned.
If convicted, each defendant faces a maximum of life in prison, with a minimum mandatory sentence of five years in prison, a $250,000 fine and at least five years of supervised release.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Joseph A. LaBar.
Pine Ridge Man Acquitted of ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man was acquitted of Theft of Government Property and False Statement, as a result of a federal jury trial in Rapid City, on February 27, 2015.
Daigre Douville, age 51, was indicted by a federal grand jury on March 18, 2014.
The charges alleged that he embezzled, stole, and converted overtime payments in excess of $1,000, and falsified a government document.
The investigation was conducted by Office of Inspector General, U.S. Department of the Interior. The U.S. Attorney's Office prosecuted the case.
Payroll Company Owner Sentenced for Stealing $1.2M in IRS Taxes from Small Businesses and Municipal Water SupplyRead the Press Release
PROVIDENCE, R.I. – Warren Hebert, 67, of Barrington, R.I., owner of Checkmaster Payroll Services, has been sentenced to 24 months in federal prison and ordered to pay $1.1 million in restitution to seven businesses and the Seekonk, Mass., Water District that he defrauded when he diverted federal payroll taxes he collected from them that were to have been paid to the IRS, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Hebert to serve two years supervised release and to perform 200 hours of community service upon completion of his prison term. Hebert pleaded guilty on October 20, 2014, to eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code.
At the time of his guilty plea, Hebert admitted to the court that beginning in as early as April 2009 and continuing through at least October 2011, he diverted for his own personal use approximately $1,266,680 in funds due to the IRS that he withdrew from at least seven small businesses operating in Rhode Island and Massachusetts, which were to have been used to pay the clients’ federal employment taxes. In some instances Hebert used some of the funds to pay additional tax liabilities, interest and penalties of other clients whose tax returns he had previously failed to accurately prepare, file and pay.
Among the small businesses defrauded by Hebert were a nursery school, a local gym and a family owned moving company. Hebert also admitted to diverting funds from the Seekonk, Mass., Water District, a municipal water agency.
United States Attorney Peter F. Neronha commented, “What makes the defendant’s conduct particularly appalling is that, at bottom, he stole money from several small businesses, as well as a municipality. Such entities, private and public, often operate near the margin, where every dollar counts. The defendant violated the trust placed in him and, out of greed, diverted money that these entities had worked so hard to generate and set aside to pay their fair share of taxes. A meaningful prison sentence is more than appropriate.”
“IRS Criminal Investigation takes employment tax violations very seriously," said William P. Offord, Special Agent in Charge of the Boston field office of IRS Criminal Investigation. “Mr. Hebert’s tax fraud is particularly egregious because his clients entrusted his business, Checkmaster Payroll Services, to collect and timely remit their employees’ payroll taxes.” Instead, Mr. Hebert diverted over $1.2 million of these taxes for his personal benefit, which may result in the loss of future social security or Medicare benefits for the victims.”
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the FBI, Rhode Island FDA Task Force, Barrington Police and Rhode Island State Police.###
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Contact: 401-709-5357
[email protected]Palm Coast Man Arrested and Charged with Receiving and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today the return of an indictment charging Gioacchino “Jack” Campo (56, Palm Coast) with two counts of receiving child pornography and one count of possessing child pornography. If convicted, he faces a mandatory minimum penalty of 5 years, up to a maximum of 20 years, in federal prison for each receipt count and up to 10 years in prison for the possession count. Campo was arrested at his home on March 9, 2015.
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 until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, Jacksonville and Daytona Beach Offices. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
St. Croix, USVI – Joe Dale Loomis, 57, of Oregon, pleaded guilty today in District Court on St. Croix to one count of Failure to Register as a Sex Offender, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Loomis admitted that he was convicted of Sodomy in the First Degree, a sex offense involving a minor in Oregon in 1991. On or about October 22, 2013, Loomis traveled from Oregon to St. Croix. From that time through August 19, 2014, Loomis knowingly failed to register as a sex offender on St. Croix in violation of the Sex Offender Registration and Notification Act (SORNA).
Loomis is facing a maximum sentence of 10 years in prison, and a $250,000 fine. No sentencing date has been set.
The case was investigated by the United States Marshals Service, and is being prosecuted by Assistant U.S. Attorneys Rami S. Badawy and Everard E. Potter.
Oneida County Man Sentenced for Mail TheftRead the Press Release
SYRACUSE, NEW YORK – On March 9, 2015, MICHAEL OLIVER (34) of Waterville, New York, was sentenced in United States District Court following his earlier plea of guilty to two counts of obstructing the United States mail, in violation of 18 U.S.C. § 1701.
United States Magistrate Judge David E. Peebles sentenced OLIVER to one year of Probation and 25 hours of community service. Additionally, the judge imposed a $250 fine and ordered OLIVER to pay $1,155.95 in restitution to the known victims.
These charges stemmed from an investigation by the U.S. Postal Inspection Service and the Office of Inspector General of the U.S. Postal Service. The investigation revealed that OLIVER obstructed the passage of the mail by opening envelopes addressed to others and stealing the contents of that mail, all while employed as a highway contract driver for the Postal Service in Oneida and Chenango counties. Between May and September 2014, OLIVER stole greeting cards, cash, and gift cards, among other things, from at least 160 different pieces of mail. In advance of sentencing, thirty-one victims submitted victim-impact statements for the court to consider in imposing OLIVER’s sentence.
This case was prosecuted by Assistant United States Attorney Michael F. Perry.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Nurse Charged with Health-Care Fraud Scheme for Billing Medicare for Unnecessary ServicesRead the Press Release
CHICAGO — A registered nurse was arrested today on a federal health care fraud charges. The nurse defendant, JAMES ADEMIJU, who operates two nursing agencies, Adonis Inc. and BestMed-Care Services Ltd., was arrested this morning and charged with health care fraud in a criminal complaint. The complaint alleges a scheme to defraud Medicare by billing for unnecessary nursing services that were provided to patients who were not confined to the home and who were obtained via illegal payments for patient referrals. For over three years, beginning in 2011, a total of approximately $5 million was paid to the two agencies by Medicare for services rendered to patients deemed to be homebound.
Ademiju, 41, of Matteson, a licensed registered nurse in Illinois since 2006, is scheduled to appear at 3:00 p.m. today before U.S. Magistrate Judge Mary M. Rowland in U.S. District Court.
Simultaneous with Ademiju’s arrest, agents from the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and other law enforcement agencies executed search warrants at the offices of Adonis Inc., and BestMed-Care Services Ltd., both located in Dolton. Warrants were also executed to seize alleged fraud proceeds maintained in bank accounts maintained by Adonis Inc. and BestMed-Care Services Ltd.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG. The Railroad Retirement Board Office of Inspector General is also participating in the investigation.
According to a 56-page affidavit in support of the arrest, search and seizure warrants, the charge against Ademiju arises from the investigation of Suburban Home Physicians, a Schaumburg company that did business as Doctor At Home. In a related case, an indictment was returned last month against a doctor, Alan Newman, and a nurse, Diana Jocelyn, at Suburban Home Physicians. According to the affidavit unsealed today, Ademiju works at two nursing agencies, Adonis, as the office manager, and BestMed-Care Services, as the administrator. Between February 2011 and December 2014, Medicare paid Adonis approximately $1.9 million and BestMed-Care Services approximately $3.1 million for skilled-nursing services.
Adonis and BestMed-Care Services allegedly obtained many patients from a marketing company which claimed to offer "free" nursing services to Medicare beneficiaries. Adonis and BestMed-Care Services paid hundreds of dollars per patient to a marketing company which would refer patients to Adonis and BestMed-Care Services.
According to the affidavit, Adonis and BestMed-Care Services referred many patients to physicians at Suburban Home Physicians, even when patients had primary-care physicians and continued to see those primary-care physicians. Physicians at Suburban Home Physicians then certified the patients for skilled-nursing services, even when patients did not qualify for skilled-nursing services that were covered by Medicare.
Also described in the complaint, nursing assessments signed by Ademiju contained false information about patients. For example, Ademiju signed nursing assessments that falsely stated that patients were homebound and that falsely stated that patients needed assistance with activities of daily living such as dressing and bathing themselves. Adonis and BestMed-Care Services then billed Medicare for long periods in part by periodically discharging patients, claiming the patients no longer needed services, and then re-admitting the same patients a short time later without telling the patients that they had been discharged or re-admitted. In some instances, a patient was discharged from one agency and then admitted at the other agency in less than a week, and sometimes even on the same day.
One patient, Patient LD, who received nursing services from Adonis and BestMed-Care Services and was certified for such services by a physician at Suburban Home Physicians, told law enforcement that she began receiving nursing services after getting a call out of the blue and being told that a physician and nurse would come visit her. Patient LD said that she was not confined to the home during the time that she received nursing services, and said that the nursing visits were "worthless." Medicare paid Adonis and BestMed-Care Services more than $11,000 for the nursing services provided to Patient LD.
Another patient described in the complaint, Patient JS, who received services from Adonis and BestMed-Care Services and was certified for such services by a physician at Suburban Home Physicians, told law enforcement that he realized that the nursing visits were unnecessary and eventually stopped them. Patient JS told law enforcement that he felt bad for having allowed the visits to go on as long as he had even when he knew they were unnecessary. Medicare paid Adonis and BestMed-Care Services more than $13,000 for the nursing services provided to Patient JS.
The government is being represented by Assistant U.S. Attorney Stephen Chahn Lee.
Ademiju was charged with one count of health care fraud and faces a maximum penalty of 10 years in prison and a $250,000 fine or a fine totaling twice the gain or loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint and an indictment are 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 Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Complaint
Notice of Court ProceedingsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
When: Thursday, March 12, 2015 at 10:00 a.m. Where:
Columbia, South Carolina
Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom #4
Columbia, SC 29201
Additional Details: This is a joint investigation of the FBI, SLED, the South Carolina Attorney General’s Office and the United States Attorney’s Office into public corruption. The case is being prosecuted by Assistant U.S. Attorneys Jim May and Jay Richardson of the Columbia Office. #####Norwalk Man Who Illegally Sold Firearms Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RAUL CABAN-MARTES, 22, of Norwalk, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 40 months of imprisonment, followed by three years of supervised release, for illegally selling firearms.
According to court documents and statements made in court, between August 2013 and January 2014, CABAN-MARTES and others sold five firearms, ammunition and a bullet proof vest to a convicted felon. CABAN-MARTES knew that the purchaser intended to sell the firearms to others in Norwalk.
CABAN-MARTES has been detained since his arrest on July 2, 2014. On December 5, 2014, he pleaded guilty to one count of conspiracy to engage in the business of dealing in firearms without a license.
In December 2014, while he was in federal custody, CABAN-MARTES instructed family members to conceal another firearm so that he could sell the weapon upon his release.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nevada Man Sentenced to 8 Years in Prison for Threatening to Kill a Federal Law Enforcement Officer -Defendant Previously Was Convicted of Similar Crime-Read the Press Release
WASHINGTON –Jeffrey Henry Williamson, 49, of Las Vegas, Nev., was sentenced today to 8 years in prison for making threats against a federal law enforcement officer, U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, announced.
Williamson was found guilty of the charge by a jury in December 2014, following a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rosemary M. Collyer. Upon completion of his prison term, Williamson will be placed on three years of supervised release.
According to the government’s evidence, Williamson called the 911 Office of Unified Communications, in Washington, D.C., on June 19, 2014, and during an approximately 4 ½-minute recorded call, threatened to kill an FBI Special Agent who works in Denver. The evidence presented at trial established that Williamson made the threats in retaliation for an investigation of the defendant that the agent conducted in 2005 and 2006. That investigation involved harassing and threatening phone calls that Williamson was making to the Denver FBI field office and federal judges in Denver.
In 2008, Williamson was prosecuted in the Southern District of Texas for making threatening communications there. He was found guilty following a trial and sentenced to 42 months in prison, to be followed by three years of supervised release. However, Williamson kept up a pattern of harassing communications directed at federal officials. He completed his sentence and was released, but the Court revoked his supervised release. He then completed his second period of incarceration on Nov. 29, 2013. He arrived in Washington, D.C., in May 2014.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge McCabe commended those who investigated the case from the FBI’s Violent Crimes Task Force and the U.S. Marshals Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialist Leif Hickling; Criminal Investigators Zachary McMenamin and Durand Odom; Paralegal Specialists Jessica Moffatt and Michelle Holland, and Legal Assistant Donice Adams. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Frederick Yette, who prosecuted the case.
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Nebraska Man Sentenced for Misprision of A Felony and Rapid City Woman Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lincoln, Nebraska, man convicted of Misprision of a Felony and a Rapid City, South Dakota, woman convicted of Assault Resulting in Substantial Bodily Injury were sentenced on March 9, 2015, by U.S. District Judge Roberto A. Lange.
Gilbert Young, age 43, was sentenced to 36 months in custody to be served consecutively to his Cherry County, Nebraska case, one year of supervised release, $32,881.66 in restitution, jointly and severally with his co-defendant, and a $100 special assessment to the Federal Crime Victims Fund.
Terri Covey a/k/a Terry Covey, age 41, was sentenced to 12 months in custody, two years of supervised release, $32,881.66 in restitution, jointly and severally with her co-defendant, and a $100 special assessment to the Federal Crime Victims Fund.
Young and Covey were indicted by a federal grand jury on May 13, 2014. Young pled guilty on December 16, 2014, and Covey pled guilty on December 15, 2014.
In February 2013, Covey and Young were dating and living together on the Rosebud Sioux Indian Reservation in South Dakota. On or about February 16, 2013, shortly after midnight, Covey left a child victim in the care of Young. At some point while in Young’s care, the victim suffered an acceleration/deceleration injury that caused the victim to have a severe seizure. Young witnessed the child victim having a seizure, but did not call 911 to obtain medical care for the child. Young informed Covey that something was wrong with the victim at 8:00 a.m., but Covey did not seek care for the victim for another two and a half hours. The child’s injuries worsened because of the delay in seeking medical care.
In the weeks before the injury, Covey grabbed the child’s face and caused bruising on the child’s face.
Young had knowledge of the abuse of the child and concealed the same from law enforcement authorities.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher prosecuted the case.
Both Defendants were immediately turned over to the custody of the U.S. Marshals Service.
More Than 50 Guns Seized and Four Men Charged in Illegal Firearms Trafficking OperationRead the Press Release
SAN DIEGO – Four men appeared in federal court today and yesterday to face charges that they participated in a scheme to manufacture and traffic in firearms illegally, in some instances by assembling untraceable assault-style weapons in a defendant’s home and then selling the guns for thousands of dollars.
Federal, state and local law enforcement officials served multiple search warrants and made the arrests Friday at locations in Bonsall and Escondido and Temecula. During the searches and throughout the investigation, agents seized more than 50 firearms, including silencers, a short-barreled shotgun, unfinished lower receivers and AR-15-style homemade assault rifles. Some of the firearms were stolen, or had obliterated serial numbers, or both. Agents also found thousands of rounds of ammunition.
Christian Romero, Clay Bautista-Marquez, Ruben Tovar-Ordonez and Matthew Nutt were taken into custody separately on Friday. Romero and Nutt are charged via complaint with engaging in the business of manufacturing and dealing in firearms without a license; Bautista and Tovar are charged via indictment with unlawful dealing in firearms.
A fifth man, Michael Martin, was also arrested and charged via complaint with possession of a firearm – specifically two silencers - not registered to him in the National Firearms Registration and Transfer Record.
All but Martin were held without bond, pending upcoming detention hearings. Martin was to be released on a $20,000 bond.
During the searches Friday, agents also found numerous unfinished lower receivers commonly known as ULRs. ULRs can be lawfully purchased and sold by individuals who do not possess a Federal Firearms License because they are not considered firearms. Manufacturers are not required to mark ULRs with make, model and serial number. They can be manufactured into completed receivers, which are classified as firearms under federal law. An individual engaged in the business of manufacturing completed receivers or dealing in completed receivers is required to have a Federal Firearms License. Otherwise, doing so is a violation of federal law.
“Firearms traffickers who fly under the radar of law enforcement, assembling dangerous and untraceable assault-style weapons in the privacy of their homes, are a significant challenge and a major concern to me,” said U.S. Attorney Laura Duffy. “Because of this investigation, scores of these guns have been removed from the underground market and our communities are safer as a result.”
Many of the assault rifles seized by agents were manufactured from unfinished lower receivers. ATF Special Agent in Charge Carlos A. Canino stated, “These weapons are particularly dangerous because they bear no manufacturer markings or serial numbers making them virtually impossible to trace.” Canino added, “When law enforcement officials join forces in this type of investigation, the result is a significant disruption in violent crime.”
DEFENDANT Case Number: 15MJ0740 Matthew Nutt Age: 29 Escondido, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 15MJ0721 Christian Romero Age: 21 Bonsall, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANTS Case Number: 14CR3360 Clay Bautista-Marquez Age: 30 Bonsall, California Ruben Tovar-Ordonez Age: 45 Temecula, California CHARGESUnlawful Dealing in Firearms, in violation of18 USC 922(a)(1)(A). Maximum Penalties Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 15mj0741 Michael Martin Age: 38 Bonsall, California CHARGESPossession of a Firearm not Registered to him in the National Firearms Registration and Transfer Record, 26 U.S.C. § 5861(d). Maximum Penalties: Ten years in prison, $10,000 fine.
INVESTIGATING AGENCIESDrug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
Internal Revenue Service
Bureau of Land Management
San Diego Police Department
Immigration and Customs Enforcement –Enforcement and Removal Operations
United States Marshal’s Service
San Diego Sheriff’s Department*A complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Montana Tribes Selected as Pilot Project for Prosecuting Domestic Violence CrimesRead the Press Release
HELENA – The United States Attorney’s Office for the District of Montana announces that the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation have been selected by the Department of Justice as a Pilot Project for implementation of the Violence Against Women Act (VAWA). Starting March 6, 2015, the Fort Peck tribal court can now exercise special criminal jurisdiction over certain crimes of domestic and dating violence, regardless of the defendant’s Indian or non-Indian status. Fort Peck is one of only five tribes nationwide to be selected for Pilot Project status.
“The U.S. Attorney’s Office congratulates Fort Peck for its hard work in earning Pilot Project status,” said Montana U.S. Attorney Michael Cotter. “This is a significant win for public safety and tribal sovereignty for the Assiniboine and Sioux Tribes.” The tribes engaged in an extensive application process to ensure adequate safeguards are in place to fully protect defendants’ rights, such as the right to an attorney.
"From the beginning of the VAWA tribal working group, we wanted to see Fort Peck succeed in the pilot because it is a large rural reservation with a larger criminal case load,” said John Dossett, General Counsel for the National Congress of American Indians. “They have provided a very good model for other large tribes and it will increase justice and safety for those reservations. Hats off to Fort Peck."
Other qualifying tribes in Montana and throughout the country also have the opportunity to expand special jurisdiction over certain domestic and dating violence crimes when VAWA took full effect on Saturday. Nothing in VAWA changes the obligation of federal authorities to prosecute violent crime in Indian Country. For more information about VAWA and the Pilot Projects, go to: http://www.justice.gov/tribal.
Members of International Conspiracy Sentenced to Combined 60 Years for Multi-Million Dollar Internet Fraud SchemeRead the Press Release
LEXINGTON — The perpetrators of an international wire fraud scheme, involving the fraudulent sale of automobiles over the internet, have been sentenced to combined terms of imprisonment totaling more than 60 years.
On Monday, U.S. Senior District Judge Joseph M. Hood sentenced the last of ten defendants involved in the criminal conspiracy. The scheme, which operated in Lexington and other places, originated in Eastern Europe, where conspirators used legitimate websites, such as eBay.com and Autotrader.com, to advertise non-existent vehicles for sale. The advertisements would list the used-vehicles for a competitive price. Once contacted by potential buyers, the conspirators would negotiate the price with victims, via telephone and e-mail.
After an agreement to purchase a vehicle was reached, conspirators instructed victims to wire the purchase funds to United States-based members of the conspiracy, through Western Union, MoneyGram, or a bank wire transfer. The conspirators would then pick up the funds using various forms of fraudulent identification. The United States-based conspirators kept some of the proceeds but wired the rest of the money to the international members of the conspiracy.
Within the United States, the conspiracy operated in Georgia, Ohio, Kentucky, Tennessee, Indiana, and Michigan. In all, more than 550 victims of the scheme, whose losses exceed $2,000,000, have been identified.
The defendants sentenced include Nicholas Corey Garner and Petrica Octavian Stoian. Garner was a leader of the conspiracy who recruited many of the United States-based defendants to join the scheme; he received 240 months in prison. Stoian is a Romanian national, who coordinated several aspects of the international portion of the conspiracy. He admitted to opening bank accounts in Hungary, using false identities, to receive proceeds of the fraud. In June of 2013, the United States extradited Stoian from Hungary, to face the fraud charges in this case. Stoian received 97 months in prison.
Other members of the conspiracy have been sentenced as follows: Dwayne Hardy, 72 months; Nathaniel Garner, 70 months; Harold Smith, 60 months; Brooks Sowell, 60 months; Sabrina Carmichael, 60 months; April Abrams, 36 months; and Eli Holley, 36 months (sentenced Monday). Jelahni Williams, who only participated in the conspiracy for three days, was sentenced to time-served.
Under federal law, each defendant must serve at least 85 percent of their prison sentence and will be under the supervision of the United States Probation Office for three years following their release.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Craig Hutzell, Acting Special Agent in Charge of the U.S. Secret Service, jointly announced the sentences.
The investigation was conducted by the U.S. Secret Service and Assistant U.S. Attorney Erin M. Roth prosecuted the case on behalf of the federal government.
Medicare Beneficiary Pleads Guilty to Receiving Kickbacks in Health Care MattersRead the Press Release
PHILADELPHIA – Craig Brown, 46, of Philadelphia, PA, pleaded guilty today to receiving kickbacks and making false statements in a health care matter, announced United States Attorney Zane David Memeger. The defendant faces a maximum possible sentence of 25 years in prison, three years of supervised release, a $1.25 million fine, a $500 special assessment, and an order of restitution. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for June 10, 2015.
In July 2010, Feda Kuran, charged elsewhere, began operating Brotherly Love Ambulance, Inc. with a co-schemer. In approximately May 2011, Craig Brown began receiving transport to dialysis by Brotherly Love, even though he could have been transported safely by means other than ambulance and was, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Shortly thereafter, Brown began transporting himself in his personal vehicle once more, but he permitted Brotherly Love to bill for the transports as though he was being transported by ambulance. Brown accepted monthly payments to induce him to continue to ride with Brotherly Love and, later, to induce him to allow Brotherly Love to bill for his transport even though he was driving himself. Brown was also given payments for referring others to Brotherly Love and for transporting other purported patients of Brotherly Love in his personal vehicle even though Brotherly Love was billing for ambulance transports for those individuals. In addition, Brown signed ambulance “run sheets” indicating that he was being transported by ambulance when, in fact, he was transporting himself to and from dialysis.
As a result of his actions and those of Brotherly Love, the Medicare program paid more than $18,000 in inappropriate bills. As a result of the overall scheme at Brotherly Love, the Medicare program was billed for more than $4.9 million and paid more than $2 million in inappropriate bills. Kuran was sentenced in November 2014 to 64 months in prison.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Paul W. Kaufman and Mary Crawley.
McNeil-PPC Inc. Pleads Guilty in Connection with Adulterated Infants' and Children's Over-the-Counter Liquid DrugsRead the Press Release
McNeil-PPC Inc. entered a guilty plea in Federal District Court in Philadelphia today to one count of an information charging the company with delivering for introduction into interstate commerce adulterated infants’ and children’s over-the-counter (OTC) liquid medicines, the Department of Justice announced today. As part of the criminal resolution, McNeil, a wholly owned subsidiary of Johnson & Johnson, agreed to pay a criminal fine of $20 million and forfeit $5 million.
Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division and First Assistant U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania today announced the filing of a criminal Information against McNeil for delivering for introduction into interstate commerce infants’ and children’s liquid OTC drugs that were adulterated. According to the criminal charge, the infants’ and children’s liquid medicines were adulterated because they were not manufactured, processed, packed or held in conformance with current Good Manufacturing Practices (cGMP), in violation of the federal Food, Drug and Cosmetic Act (FDCA).
The U.S. District Court for the Eastern District of Pennsylvania accepted McNeil’s guilty plea.
In addition to McNeil’s guilty plea, McNeil remains subject to a permanent injunction entered by the U.S. District Court in 2011, requiring the company, among other things, to make remedial measures before reopening its manufacturing facility in Fort Washington, Pennsylvania.
“McNeil’s failure to comply with current good manufacturing practices is seriously troubling,” said Acting Assistant Attorney General Mizer. “The Department of Justice will continue to be aggressive in pursuing and punishing companies such as McNeil that disregard a process designed to assure quality medicines, especially OTC drugs for infants and children.”
“The law requires that drugs be produced under the most rigorous of quality standards,” said First Assistant U.S. Attorney Lappen. “When companies fail to exercise the vigilance that the law demands, they will held be accountable. Drug companies should be aware that failing to adhere to good manufacturing practices subjects them to penalties and prosecution.”
According to the information, the OTC liquid drugs manufactured by McNeil at its Fort Washington facility, including Infants’ and Children’s Tylenol and Infants’ and Children’s Motrin, were bottled on four lines of machinery dedicated to liquid formulations. As alleged in the information, on or about May 1, 2009, McNeil received a complaint from a consumer regarding the presence of “black specks in the liquid on the bottom of the bottle” of Infants’ Tylenol. According to the information, the foreign material was later identified as including nickel/chromium-rich inclusions, which were not intended ingredients in this OTC liquid drug. In connection with receiving this consumer complaint, McNeil did not initiate or complete a Corrective Action Preventive Action (CAPA) plan, as alleged in the charging document.
The information alleges numerous other instances in which McNeil found metal particles in bottles of Infants’ Tylenol at its Fort Washington facility but failed to initiate or complete a CAPA. According to the information, during a 2010 Inspection of McNeil’s Fort Washington facility, the U.S. Food and Drug Administration (FDA) asked McNeil for a list with all non-conformances for particles and the associated OTC drug batches that had occurred since an FDA inspection in 2009. As noted in the information, this document revealed 30 batches of OTC liquid drugs, including Infants’ Tylenol, Children’s Tylenol, and Children’s Motrin. During the 2010 inspection, the FDA asked McNeil for the CAPA plan covering the particles and foreign material found in the Infants’ and Children’s OTC drugs, and a McNeil employee confirmed that McNeil did not have such a CAPA plan.
On or about April 30, 2010, McNeil Consumer Health Care, a division of McNeil, in consultation with the FDA, announced that the company was recalling all lots of certain unexpired Infants’ and Children’s OTC drugs manufactured at McNeil’s Fort Washington facility and distributed in the United States and other countries around the world. McNeil’s recall included, but was not limited to, Infants’ and Children’s Tylenol and Infants’ and Children’s Motrin. According to a press release issued by McNeil on April 30, 2010, some of the recalled OTC drugs “may contain tiny particles.”
The FDCA prohibits causing the introduction or delivery for introduction into interstate commerce of any adulterated drug. Under the law, a drug is adulterated if the methods used in, or the facilities and controls used for, the manufacture, processing, packing, labeling, holding and distribution of drugs and components were not in conformance with cGMP requirements for drugs. Drugs not manufactured, processed, packed, labeled, held and distributed in conformance with cGMP requirements are adulterated as a matter of federal law, without any showing of actual defect.
“Drug quality – and especially with the medicines we give our children – is of paramount concern to the FDA,” said Commissioner Margaret A. Hamburg M.D. of the FDA. “The FDA expects manufacturers to have systems in place that will quickly discover and correct problems with medical products before they enter the U.S. marketplace. Today’s guilty plea holds accountable those corporations who risk jeopardizing the public health by not adhering to the high standards set for drug manufacturers.”
Acting Assistant Attorney General Mizer and First Assistant U.S. Attorney Lappen commended the investigative efforts of the FDA’s Office of Criminal Investigations. The government is represented in this case by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Mary Beth Leahy of the Eastern District of Pennsylvania, with the assistance of Associate Chief Counsel for Enforcement Laura Pawloski of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
McNeil-PPC Inc. Pleads Guilty in Connection with Adulterated Infants' and Children's Liquid MedicationsRead the Press Release
PHILADELPHIA – McNeil-PPC Inc. pleaded guilty today to violating the federal Food, Drug and Cosmetic Act (FDCA) with regard to infants’ and children’s liquid medications, including Infants’ Tylenol, Children’s Tylenol and Children’s Motrin. McNeil, a wholly owned subsidiary of Johnson & Johnson, was charged with delivery for introduction into interstate commerce drugs that were deemed adulterated. It is a misdemeanor. The company will pay a criminal fine of $20 million and forfeit $5 million.
The guilty plea and resolution were announced today by First Assistant U.S. Attorney Louis D. Lappen, Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division, and Director George M. Karavetsos, with FDA’s Office of Criminal Investigations.
According to court documents, the OTC liquid drugs manufactured by McNeil at its Fort Washington facility were bottled on four lines of machinery dedicated to liquid formulations. On or about May 1, 2009, McNeil received a complaint from a consumer regarding the presence of “black specks in the liquid on the bottom of the bottle” of Infants’ Tylenol. The foreign material was later identified as including nickel/chromium-rich inclusions, which were not intended ingredients in this OTC liquid drug. In connection with receiving this consumer complaint, McNeil did not initiate or complete a Corrective Action Preventive Action (CAPA) plan in conformance with current Good Manufacturing Practices.
The information alleges other instances in which McNeil found metal particles in bottles of Infants’ Tylenol at its Fort Washington facility, but failed to initiate or complete a CAPA. According to the information, during a 2010 Inspection of McNeil’s Fort Washington facility, the U.S. Food and Drug Administration (FDA) asked McNeil for a list with all non-conformances for particles and the associated OTC drug batches that had occurred since an FDA inspection in 2009. As noted in the information, this document revealed 30 batches of OTC liquid drugs, including Infants’ Tylenol, Children’s Tylenol, and Children’s Motrin. During the 2010 inspection, the FDA asked McNeil for the CAPA plan covering the particles and foreign material found in the Infants’ and Children’s OTC drugs, and a McNeil employee confirmed that McNeil did not have such a CAPA plan.
On or about April 30, 2010, McNeil Consumer Health Care, a division of McNeil, in consultation with the FDA, announced that the company was recalling all lots of certain unexpired Infants’ and Children’s OTC drugs manufactured at McNeil’s Fort Washington facility and distributed in the United States and other countries around the world. McNeil’s recall included, but was not limited to, Infants’ and Children’s Tylenol and Infants’ and Children’s Motrin.
Under the law, a drug is adulterated if the methods used in, or the facilities and controls used for, the manufacture, processing, packing, labeling, holding and distribution of drugs and components were not in conformance with cGMP requirements for drugs. Drugs not manufactured, processed, packed, labeled, held and distributed in conformance with cGMP requirements are adulterated as a matter of federal law, without any showing of actual defect.
McNeil remains under a 2011 permanent injunction entered by the U.S. District Court in the Eastern District of Pennsylvania, requiring it to, among other things, make remedial measures before reopening its manufacturing facility in Fort Washington, Pennsylvania.
“The law requires that drugs be produced under the most rigorous of quality standards. When companies fail to exercise the vigilance that the law demands, they will held be accountable” said Lappen. “Drug companies should be aware that failing to adhere to good manufacturing practices subjects them to penalties and prosecution.”
“McNeil’s failure to comply with current good manufacturing practices is seriously troubling,” said Acting Assistant Attorney General Mizer. “The Department of Justice will continue to be aggressive in pursuing and punishing companies such as McNeil that disregard a process designed to assure quality medicines, especially OTC drugs for infants and children.”
“Drug quality – and especially with the medicines we give our children – is of paramount concern to the FDA. The FDA expects manufacturers to have systems in place that will quickly discover and correct problems with medical products before they enter the U.S. marketplace,” said Margaret A. Hamburg, M.D., Commissioner, U.S. Food and Drug Administration. “Today’s guilty plea holds accountable those corporations who risk jeopardizing the public health by not adhering to the high standards set for drug manufacturers.”
The case was investigated by the Food and Drug Administration Office of Criminal Investigations. It is being prosecuted jointly by Assistant U.S. Attorney Mary Beth Leahy and Jeffrey Steger, Assistant Director with the Department of Justice Civil Division’s Consumer Protection Branch. Assistance is being provided by Consumer Protection Branch Trial Attorney Kathryn Drenning and Associate Chief Counsel for Enforcement Laura Pawloski, with the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Many Resident Sentenced to 15 Years in Prison for Possession with Intent to Distribute Cocaine BaseRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Many resident was sentenced to 188 months in prison for possession with intent to distribute crack cocaine in Sabine Parish.
Cassius L. Medlock, 32, of Many, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute cocaine base. He was also sentenced to four years of supervised release. According to the November 13, 2015 guilty plea, Medlock was stopped on August 14, 2014, for speeding, and after searching the vehicle, officers observed more than 193 grams of cocaine base and marijuana in the vehicle he was driving. Six children were also present in the vehicle.
The defendant was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation. The DEA and the Sabine Parish Sheriff’s Office investigated the case. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Los Angeles Man Convicted of Federal Charge of Producing Child Pornography by Photographing Girl While in PhilippinesRead the Press Release
LOS ANGELES – Concluding a two-part trial, a Los Angeles man was convicted today of producing child pornography in the Philippines while being required to register as a sex offender due to his prior conviction for raping a 14-year-old girl.
Stanley Dan Reczko III, 50, who resided in the Koreatown District of Los Angeles, was found guilty of the charge by United States District Judge George H. King, who issued his ruling this afternoon from the bench.
In the first part of the trial, a jury on February 20 found Reczko guilty of sexual exploitation of a minor by producing child pornography in the Philippines.
As a result of his conviction on the sexual exploitation charge, and because he has a prior conviction, Reczko faces a mandatory minimum sentence of 25 years in federal prison. The second charge of producing child pornography while being required to register as a sex offender carries a mandatory consecutive 10-year prison term. Therefore, Reczko faces a minimum sentence of 35 years in prison – and he could be sentenced to as much as life without parole in prison – when he is sentence by Judge King on May 18.
Authorities began investigating Reczko in May 2007 after the minor victim handed over a CD containing child pornography to the International Justice Mission (IJM), a non-governmental organization working in the Philippines. IJM provided the CD, along with other evidence, to law enforcement officers working out of the U.S. Embassy in Manila. The evidence showed that Reczko had used the minor to produce eight series of child pornography, which included images of him and the victim engaging in sexual intercourse.
Reczko has been in custody since he was arrested after returning to the United States from the Philippines in 2007.
The case against Reczko is the result of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Release No. 15-025
Leeward Islands Native Charged with Lying to Get Workplace CredentialsRead the Press Release
PHILADELPHIA - Earl R. Russell, a/k/a “Ernest Steve Russell,” a/k/a “Ernest Steve Benders,” 57, a native of Saint Kitts-Nevis, was charged today by superseding indictment with making a materially false statement in a TWIC application regarding his citizenship and gaining entry by false pretense into a secure area of a seaport, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years and six months of imprisonment, a fine of $255,000, and a special assessment of $110 and three years of supervised release.
The case was investigated by the United States Coast Guard Investigative Service and Immigration and Customs Enforcement of the United States Department of Homeland Security and is being prosecuted by Assistant United States Attorney Floyd J. Miller and Special Assistant United States Attorney Mark T. Sendek.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leader of Multimillion-Dollar Bank Fraud Scheme Sentenced in Manhattan Federal Court to 88 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that MAHABUBUZ ZAMAN was sentenced today to 88 months in prison for his participation in an elaborate bank fraud scheme that yielded more than two million dollars in ill-gotten gains. ZAMAN had been found guilty on November 12, 2014, by a Manhattan jury of conspiracy to commit bank fraud, conspiracy to commit identification document fraud, and use of a false passport, after a two-week jury trial. ZAMAN was sentenced today by U.S. District Judge Alison J. Nathan, who also presided over the jury trial.
Manhattan U.S. Attorney Preet Bharara said: “Mahabubuz Zaman may have enjoyed the riches of this multimillion-dollar bank fraud scheme for years. But now, thanks to the hard work of Immigration and Customs Enforcement’s Homeland Security Investigations, and prosecutors, Zaman will be spending the next seven years in federal prison.”
According to the Superseding Indictment, other court documents, and the evidence introduced at trial:
From approximately 2008 through November 2012, ZAMAN and his co-conspirators allegedly engaged in a bank fraud scheme in which they created hundreds of counterfeit checks, deposited those counterfeit checks into bank accounts they had opened in the names of sham companies in order to fraudulently inflate the balances in those accounts, and then withdrew funds from those bank accounts before the financial institutions were able to determine the fraudulent nature of the checks. In addition to the check fraud, the defendant and his partners-in-crime also obtained fraudulent mortgages and ran up credit card debt using false identities. The scheme victimized approximately 15 different banks, resulting in more than two million dollars in losses to the banks.
As part of the scheme, the conspirators incorporated sham companies and then opened bank accounts in the names of those sham companies. The individuals opening the accounts (the “accountholders”) often used false identities, including names and social security numbers, and presented false identification documents, including false Bangladeshi passports and forged United States visas. The accountholders were generally instructed to make small legitimate deposits at first so that the banks would make funds immediately available upon future fraudulent deposits.
ZAMAN and his co-conspirators obtained copies of legitimate checks and then used the payor account information that appeared on those checks to create counterfeit checks made payable to the sham companies they had incorporated as part of the scheme. The accountholders deposited the counterfeit checks into the sham company bank accounts at various banks. The accountholders often made deposits at numerous branches of the same bank on the same day. These deposits often were made on a Thursday or Friday so that the defendant and his co-conspirators could withdraw the illegal proceeds over the weekend when the banks were closed and were less likely to determine that the checks were counterfeit.
Once the defendant and his co-conspirators confirmed that funds from the counterfeit checks were available for withdrawal, the accountholders were directed to withdraw the funds from the counterfeit checks, typically over the weekend. The defendant and his co-conspirators often withdrew the funds from global cash access machines at casinos in Atlantic City, New Jersey, which did not have daily withdrawal limits. The accountholders often used false identification documents, including false Bangladeshi passports and fake United States visas, when making the withdrawals.
ZAMAN was one of the leaders of the scheme who recruited accountholders and directed both accountholders and higher-ranking members of the crew in the scheme’s operations, fronting the money for the scheme’s expenses and collecting a large share of its profits. In addition, ZAMAN was primarily responsible for the crew’s fraudulent mortgage operations.
In addition to the prison term, Judge Nathan sentenced ZAMAN to three years of supervised release, and ordered him to pay restitution and forfeiture in the amount of $2,638,700, and a $300 special assessment.
Manhattan U.S. Attorney Bharara praised the investigative work of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. He also thanked United States Citizenship and Immigration Services, the Queens County District Attorney’s office, the New Jersey State Police, the New York City Police Department, the New York State Police, and the United States Secret Service for their assistance in the matter.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Lisa Korologos and Alexander Wilson are in charge of the prosecution.
Leader of Johnson City Drug Conspiracy Sentenced to 20 Years in PrisonRead the Press Release
GREENEVILLE, Tenn. – On Mar. 9, 2015, Demetrius Antwan Dalton, 35, of Atlanta, Ga., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 240 months in federal prison. Dalton was previously convicted of conspiracy to distribute, and to possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
From March 2012 to April 2013, Dalton operated a massive conspiracy in which he and numerous others sold kilogram quantities of crack cocaine throughout Johnson City. To accomplish this, Dalton procured powder cocaine from sources of supply in Georgia, transported the contraband to Tennessee, and then manufactured it into crack cocaine. Once that process was complete, he worked with countless facilitators, couriers, and distributors to sell his product.
Law enforcement used a variety of individuals to conduct controlled drug transactions with members of the instant conspiracy. Several of those transactions involved Dalton himself. Ultimately, agents received court authorization to monitor the phone calls of members of this conspiracy. The resulting wiretaps produced phone calls in which Dalton and his coconspirators were repeatedly heard arranging crack cocaine deals, discussing drug prices and quantities, and joking about the addiction suffered by their customers.
This investigation was the product of a partnership between the Johnson City, Tennessee Police Department, First Judicial District Drug Task Force, and Drug Enforcement Administration. Assistant U.S. Attorney Nick Regalia represented the United States.
A total of 21 individuals were charged as a result of this investigation. Those previously sentenced include:
Tavares Lashaun Dalton, 36, of Covington, Ga., 240 months; Marcus Lavoya Holliman, 36, of Atlanta, Ga., 210 months; Eullis Monroe Goodwin, 43, of Elizabethton, Tenn., 188 months; Micah Antwan Still, 34, of Covington, Ga., 120 months; Derrick Henry Connor, 40, of Sherills Ford, N.C., 120 months; Devin Deonte Blalock, 20, of Jonesboro, Ga., 120 months; Kwanza Tarveze Worthy, 20, of Atlanta, Ga., 120 months; Don Juan Glass, Jr., 22, of Atlanta, Gia., 120 months; Uhamma Castillo Delgado, II, 24, of Johnson City, Tenn., 120 months; Demario Jenard Serchion, 29, of Atlanta, Ga., 77 months; and Cody Alan Sherrill, age 22, of Jonesborough, Tenn., 41 months. All others are awaiting prosecution or sentencing.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (“OCDETF”) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Leader of Grape Street Crips in New Haven Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DONALD OGMAN, also known as “Main” and “Mainy-O,” 33, of New Haven, was sentenced today by Senior U.S. District Judge Warren E. Eginton in Bridgeport to 188 months of imprisonment, followed by five years of supervised release, for heading a gang-related narcotics distribution ring.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. The investigation revealed that OGMAN, who was identified as the leader of the Grape Street Crips, typically purchased bulk quantities of cocaine from different sources of supply, processed the cocaine into crack cocaine and then distributed the drug to gang members and other individuals in the Hill and other neighborhoods in New Haven.
Between March and September 2011, investigators made approximately 75 controlled purchases of crack cocaine from OGMAN and other members and associates of the Grape Street Crips operating in the Hill. In addition, court-authorized wiretaps intercepted numerous conversations between Grape Street Crips members discussing narcotics and other gang-related activity, including possible retaliation against members of the rival Bloods gang, and the acquisition of firearms.
Eighteen individuals were charged and pleaded guilty as a result of this investigation.
OGMAN has been detained since his arrest on March 28, 2012. On March 14, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack”) and a quantity of cocaine.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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Tom Carson
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[email protected]Lancaster Man Pleads Guilty to Possession with Intent to Distribute CocaineRead the Press Release
RICHMOND, Va. – Dayton M. Waddy, 34, of Lancaster County, Virginia, pleaded guilty today to a charge of possession with intent to distribute 28 grams or more of cocaine base, in violation of Title 18, United States Code, Sections 841(a)(1) and (b)(1)(B)(iii).
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney, Jr.Waddy was indicted by a federal grand jury on January 20, 2015, and faces a maximum penalty of forty years and a minimum of five years in prison when sentenced on June 1, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15cr14
According to a statement of facts signed by Waddy and filed with his plea agreement, on October 6, 2014, a Lancaster County Sheriff’s Deputy pursued a vehicle driven by Waddy after Waddy attempted to elude the Deputy at a high rate of speed. Waddy ultimately crashed the vehicle in a ditch and fled on foot. The Deputy approached the vehicle and found on the front passenger seat a wallet containing Waddy’s identification. Lancaster County Sheriff’s Department deputies subsequently searched the vehicle pursuant to a search warrant and recovered several personal documents belonging to Waddy; approximately 4.5 ounces of crack cocaine; a scale, spoon, and knife, all having cocaine residue on them; and $9,000 in cash. Waddy was on federal supervised release for a previous drug conviction at the time of the offense.
This case was investigated by the DEA and the Lancaster County Sheriff’s Department. Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case on behalf of the United States.Justice Department and City of Jackson, Mississippi, Extend Agreement to Resolve Americans with Disabilities Act Lawsuit with the City's Public Transportation SystemRead the Press Release
Today, the Justice Department filed a joint motion to extend a settlement under the Americans with Disabilities Act (ADA) with the city of Jackson, Mississippi. The original lawsuit challenged inaccessibility in Jackson’s public transportation system, and was filed by 11 residents of Jackson with disabilities and two non-profit organizations that work on behalf of people with disabilities.
The Department of Justice has monitored the city under the terms of the five-year consent decree, filed in federal court in Jackson in March 2010. That agreement required the city to keep the wheelchair lifts working on the city’s fixed route bus system, known as JATRAN; train staff to properly help riders with disabilities; and meet its required level of service to passengers of Handilift, the ADA complementary paratransit service.
Today, the parties agree that while the city has improved its accessible bus services, the city has not yet fully complied with the consent decree. Therefore, the city will continue to make improvements and will report progress to the department on a monthly basis.
"Today’s action by the parties shows our vigilant commitment to remain engaged with the city of Jackson until the city has fixed any problems with the level of accessible public transportation provided to it its citizens," said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. "The department is grateful for the city of Jackson’s continued cooperation in resolving this matter and their commitment to reaching full accessibility of JATRAN."
“We remain committed to the rights of all citizens to have accessible transportation services in the Capital City of Jackson,” said U. S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The U.S. Attorney’s Office is also grateful for the cooperative relationship between the city of Jackson and the Department of Justice in working towards fulfilment of the terms of the consent decree.”
Those interested in finding out more about this agreement or public transportation’s obligations under the ADA can call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), access its ADA Web site at http://www.ada.gov, or access the Federal Transit Administration’s ADA Web site at http://www.fta.dot.gov/ada.
Joplin Woman Sentenced for Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman was sentenced in federal court today for aggravated identity theft and to fraudulently receiving federal disaster benefits following the tornado that struck the city of Joplin on May 22, 2011, killing 158 people and causing more than $2.9 billion in damage.
Brittany Aulden Barnes, 24, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to two years and four months in federal prison without parole. The court also ordered Barnes to pay $18,774 in restitution to FEMA and $2,094 in restitution to her identity theft victims.
On Aug. 14, 2014, Barnes pleaded guilty to one count of disaster fraud and one count of identity theft.
Disaster Fraud
Barnes admitted that she fraudulently received disaster benefits by claiming that her residence in Joplin had been damaged by the tornado. When Barnes met with a FEMA-contracted inspector to discuss her claim on June 6, 2011, she also claimed the loss of a number of furniture items and appliances. Barnes was awarded $6,708 in disaster relief. In addition, Barnes resided at a FEMA-provided mobile home for more than a year, from September 2011 to December 2012, at a total cost to FEMA of $12,066.
However, Barnes admitted that the Joplin apartment was not her residence at the time of the tornado – on that date the apartment stood vacant. Barnes had rented the apartment prior to the Joplin tornado, and had occupied it along with her boyfriend, Russell Lamar Green. However, Barnes and Green had moved out before the tornado struck. In a separate but related case, Green pleaded guilty and has been sentenced for making false statements to FEMA in a failed effort to also receive disaster benefits.
Aggravated Identity Theft
Barnes also admitted that, while working at an Applebee’s restaurant in Joplin in May 2013, she stole a co-worker’s wallet, which contained the victim’s Missouri driver’s license, Social Security card, debit card and three credit cards.
Barnes used the stolen identity documents to impersonate the victim on several occasions. For example, she used a counterfeit personal check (drawn on the bank account of another victim) to purchase a $269 Sony Playstation game console at Best Buy. She cashed three counterfeit $598 payroll checks (drawn on the bank accounts of two additional victims) at two Wal-Mart stores.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Department of Homeland Security – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Joplin Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man was sentenced in federal court for receiving and distributing child pornography over the Internet.
Jesse Lee Talley, 33, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to eight years in federal prison without parole.
On Oct. 21, 2014, Talley pleaded guilty to receiving and distributing child pornography. Agents with the Southwest Missouri Cyber Crime Task Force identified Talley’s computer using a peer-to-peer file-sharing program to transmit videos of child pornography over the Internet. Agents executed a search warrant at Talley’s residence and seized his computer, cell phone and numerous CDs, all of which contained images and videos of child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Johnson Brothers Sentenced for Conspiracy to Commit FraudRead the Press Release
Fargo – U.S. Attorney Timothy Q. Purdon announced that on March 9, 2015, Aaron A. Johnson and Derek M. Johnson were sentenced before U.S. District Judge Ralph R. Erickson to serve four years and 18 months respectively for conspiracy to commit fraud in connection with Federal Crop Insurance and Federal Crop Disaster Programs; making false statements to the United States Department of Agriculture, acting through the Risk Management Agency (RMA); and, making false statements to federal law enforcement authorities.
The two brothers farmed potatoes near Northwood, ND from at least as early as 2002 until about January 20, 2010, and thereafter. The guilty verdicts were returned Dec. 11, 2014, at the conclusion of a two week jury trial. The brothers’ scheme involved intentionally destroying and damaging potato crops, in order to obtain federal crop insurance indemnities and federal crop disaster benefits, over a period of years. As part of the scheme, the brothers intentionally poisoned their potato seed during planting. They intentionally destroyed or neglected their growing crops in the field and intentionally destroyed potatoes in storage. The brothers applied concentrated nitrogen fertilizer and septic system products such as Rid-X and Flush to their potato seed prior to planting; they intentionally destroyed their growing potatoes using cultivator equipment; intentionally left potatoes in the field during harvest. They added septic system products such as Rid-X and Flush to water and sprayed it on top of potatoes in storage; purchased and resold unused farm chemicals that were intended to protect the crop but never used; they sprayed water on fields in order to fool neighbors and others into thinking they cared for the crop; they added frozen potatoes to the top of the stored potato pile and used a portable heater to increase warehouse temperatures in order to regulate the rate of potato Soft Rot; they did all of this in advance of filing claims for lost potato production and stored potato crops over a period of years. The brothers and their farming operations received millions of dollars in federal crop insurance indemnities, subsidized crop insurance premiums and federal disaster benefits.
Judge Erickson also sentenced the Johnson brothers to five years supervised release and jointly pay restitution and forfeiture of .$932,000
The case was investigated by the United States Department of Agriculture and the Risk Management Agency
Assistant U.S. Attorney Clare Hochhalter and Assistant U. S. Attorney Nick Chase prosecuted the case.
Information: Federal Court Initial AppearancesRead the Press Release
The United States Attorney’s Office today announced that during a federal court session in Missoula, Montana on March 9, 2015, before U.S. Magistrate Judge Lynch, the following individuals appeared:
- YUSUF DESHAWN REEVES, a 47-year-old resident of Spokane, Washington, made an initial appearance on a complaint alleging conspiracy to distribute methamphetamine. He is currently detained. If formally charged with this offense by indictment, REEVES, faces 40 years in prison, $5,000,000 in fines and 4 years supervised released. The investigation is being conducted by the Montana Violent Crime Task Force, the Federal Bureau of Investigation, the Missoula Street Crimes Unit, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 15-17
A complaint is merely a written statement of the essential facts constituting the offense(s) charged. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
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.
High-Level Member of Large-Scale, $5 Million ATM Skimming Scheme Convicted on Multiple ChargesRead the Press Release
NEWARK, N.J. – A Chicago man was convicted at trial today for his role in a large-scale, long-running, and lucrative scheme to steal bank customer account information – commonly referred to as “ATM skimming” – by installing hidden card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Dinu Horvat, 28, was convicted on four counts of a superseding indictment – conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and conspiracy to possess access device-making equipment – following a one-week trial before U.S. District Judge William J. Martini in Newark federal court. The jury deliberated about two hours before returning the verdict.
According to documents filed in this case and the evidence at trial:
Horvat was a high-level member of an extensive ATM skimming scheme organized by Marius Vintila, 31, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and affected thousands of bank customers. Vintila and defendant Bogdan Radu, 30, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Horvat and his partners then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. The stolen data was used to create thousands of false and fraudulent ATM cards, which Horvat and others used to withdraw millions of dollars from customers’ bank accounts. Horvat also recruited others to participate in the scheme, including Enes Causevic, Mirel Hadzalic, and Luis Franco, all of whom have previously pleaded guilty.
The ATM skimming operation in which Horvat participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals, including Vintila, have been charged in connection with the scheme. Twelve of those 16 have pleaded guilty. In addition to Vintila, Radu, who was charged separately, pleaded guilty to bank fraud conspiracy and aggravated identity theft in February 2014. Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, all charged separately from Horvat, participated in the scheme by installing or removing the devices, and by subsequently using the fraudulent ATM cards to withdraw cash from compromised bank accounts. Florin Apetrei, 18, Luis Franco, 23, and Mirel Hadzalic, 24, participated in the scheme by using the fraudulent ATM cards to withdraw cash. Causevic, Cotiga, Ginga, Gyapias, Leusca, and Revesz all pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. Apetrei, Cotiga, Pendus, Franco, and Hadzalic pleaded guilty to bank fraud conspiracy. For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias, and Leusca each to 57 months in prison. Franco and Pendus received sentences of 33 months in prison each. Hadzalic received a sentence of 34 months in prison. Apetrei received a sentence of 24 months in prison. Vintila, Causevic, Cotiga, Radu, and Revesz are pending sentencing.
Charges remain pending on three additional members of the conspiracy who were charged by indictment on April 16, 2014: Alin Dumitru Carabus, 40, Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 28, and Robert Eduard Mate, a/k/a “Chioru,” 29, were each charged with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more access devices, and possession of 15 or more access devices. Carabus, Ciurba-Stana, and Mate were all apprehended in Spain, and requests for extradition to the United States are pending.
The bank fraud conspiracy charge for which Horvat was convicted carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. The conspiracy to possess 15 or more counterfeit access devices carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. The conspiracy to possess access device-making equipment carries a maximum penalty of seven and one-half years in prison and a maximum $250,000 fine. Sentencing is scheduled for June 23, 2015.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Carl Agnelli; special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation. He also thanked the Barnegat Township Police Department and the Brick Township Police Department for their participation in the case.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
15-086
Defense Counsel: E. Alexander Jardines Esq., West New York, New JerseyFormer South American Counter-Terrorism Official Sentenced in Manhattan Federal Court to More Than 16 Years in Prison for Attempting to Support HezbollahRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that DINO BOUTERSE, a citizen of Suriname who assisted in the formation of that country’s Counter-Terrorism Unit, was sentenced today in Manhattan federal court to 195 months in prison for attempting to provide material support and resources to Hezbollah, a designated terrorist organization, along with narcotics trafficking and firearms offenses. BOUTERSE, who was arrested in Panama on August 29, 2013, and arrived in the United States on August 30, 2013, pled guilty before U.S. District Judge Shira A. Scheindlin, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Dino Bouterse was supposed to oppose terrorism. Instead, Bouterse betrayed his official position and tried to support and aid Hezbollah, including his agreement to assist Hezbollah in acquiring weapons, and conspiring to import cocaine to the U.S. Today he has been sentenced to a lengthy prison term for those odious crimes.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at today’s sentencing:
In 2013, BOUTERSE used his position within the government of Suriname to assist individuals he believed were members of Hezbollah, who informed BOUTERSE that they intended to conduct terrorist attacks against American interests. In exchange for a multimillion-dollar payment, BOUTERSE agreed to allow large numbers of purported Hezbollah operatives to use Suriname as a permanent base for, among other things, attacks on American targets. In furtherance of his efforts to assist Hezbollah, BOUTERSE (i) supplied a false Surinamese passport to a purported Hezbollah operative for the purpose of clandestine travel, including travel to the United States; (ii) discussed heavy weapons that he could provide to Hezbollah; and (iii) instructed the purported Hezbollah members about how Hezbollah operatives, supplied with a Surinamese cover story, could enter the United States.
In June 2013, BOUTERSE and a co-defendant, Edmund Quincy Muntslag, met in BOUTERSE’s office in Suriname with confidential sources (the “CSs”) working with the Drug Enforcement Administration (“DEA”) to discuss importing cocaine into the United States using commercial airline flights. During the meeting, BOUTERSE showed the CSs a rocket launcher and a kilogram of cocaine.
Approximately one month later, BOUTERSE and Muntslag worked to provide transportation and security for cocaine being sent through Suriname to the United States. As a test run, BOUTERSE and Muntslag sent 10 kilograms of cocaine on a commercial flight departing from Suriname. BOUTERSE personally verified the arrangements for the 10-kilogram cocaine shipment in a text message. The cocaine was intercepted by law enforcement officials after it departed Suriname.
In July 2013, BOUTERSE met with one of the CSs to discuss opening Suriname to the CSs’ purported Hezbollah associates.
Later that month, BOUTERSE met in Europe with one of the CSs and with two other men who purported to be associated with Hezbollah. During this meeting, BOUTERSE discussed initially hosting 30 to 60 Hezbollah members in Suriname for training and operations. He also indicated that he wanted a Hezbollah cell in Suriname to act, in part, as a personal armed force. BOUTERSE confirmed his understanding that the purported Hezbollah operatives would operate in South America against American targets, and he agreed to supply Surinamese passports to the operatives – and to assist with their applications for visas to travel from South America into the United States. In addition, in response to a request for surface-to-air missiles and rocket-propelled grenades, BOUTERSE stated that he would need “two months” and that he would provide a list of what he could supply. Finally, at the July 2013 meeting in Europe, BOUTERSE agreed to create a false Surinamese passport for one of the purported Hezbollah operatives, so that BOUTERSE and the Hezbollah operative could travel to Suriname to inspect the facilities that BOUTERSE had agreed to prepare for the Hezbollah contingent.
At a subsequent meeting in August 2013, BOUTERSE delivered a Surinamese passport with false identifying information to a purported Hezbollah operative. As had been discussed at the July 2013 meeting in Europe, the purported Hezbollah operative was to use the fraudulent passport to travel to Suriname. BOUTERSE indicated that everything was ready in Suriname for the arrival of the purported Hezbollah members, and that some “toys” – a code-word for weapons – would be available for inspection.
Following this meeting, BOUTERSE was arrested by Panamanian law enforcement and transferred to the custody of the DEA.
On August 29, 2014, BOUTERSE pled guilty to (i) attempting to provide material support to Hezbollah, a Foreign Terrorist Organization; (ii) conspiring to import five kilograms or more of cocaine into the United States; and (iii) using and carrying, or aiding and abetting the use and carrying of, a firearm or during and in relation to a drug-trafficking crime. In addition to his prison term, BOUTERSE, 42, a citizen of Suriname, was ordered to pay a $300 special assessment fee.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Miami Field Division, Panama City Country Office, Port-of-Spain Country Office, and Bogota Country Office; the Government of the Republic of Panama; and the U.S. Department of Justice’s Office of International Affairs and its National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Adam Fee, Michael Ferrara, and Edward Y. Kim are in charge of the prosecution.
Former Gulf Cartel Plaza Bosses Receive Long Prison SentencesRead the Press Release
BROWNSVILLE, Texas – Jose Luis Zuniga-Hernandez, 47, aka Wicho or XW or Commandante Wicho, has been ordered to federal prison along with his brother Armando Arizmendi Hernandez, 37, aka Commandante Mando or XW2 for conspiracy to import more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between January 2002 and July 2013, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. Both defendants previously pleaded guilty and, as part of their pleas, also agreed to a $5 million forfeiture.
Today, Senior U.S. District Judge Hilda G. Tagle, sentenced Zuniga-Hernandez to 50 years in federal prison, while Arizmendi Hernandez will serve a 35-year-term.
During a sentencing hearing that was held on Feb. 4, 2015, the court heard evidence regarding sentencing enhancements or increases in the calculated sentencing guideline ranges. During the hearing, the government presented evidence that allowed the court to find that the sentences for both should be enhanced because they utilized automatic weapons, grenades, homemade cannons and body armor to provided security during the purchase, transportation and distribution of narcotics. The evidence also proved that both commanded, directed and engaged in violent confrontations with other criminal syndicates to maintain control of the plazas in Mexico. Both received enhancements for importation of methamphetamine into the United States, for bribing law enforcement to facilitate the crimes committed, for maintaining premises for the purpose of manufacturing or distributing a controlled substance. Both also received enhancements because they committed the offense as part of a pattern of criminal conduct or livelihood. Finally, the court also found that both should receive an enhancement because the evidence showed they were leader/organizers of a criminal activity that involved five or more participants and was otherwise extensive.
“The arrest and prosecution of these individuals dealt a significant blow to the Gulf Cartel," said Ayala. "Today’s sentencing marks the culmination of a sustained and dedicated effort by HSI Brownville and Attache Mexico special agents, RGV Sector Border Patrol agents, other federal and state and local partners and the U.S. Attorney's Office towards the dismantlement of transnational criminal organizations impacting public safety on both sides of our border with Mexico."
Zuniga-Hernandez served as plaza boss of the El Control, Tamaulipas, Plaza, for a large period of time between 2008 through 2011 and, during that time, Arizmendi-Hernandez was second in command. Arizmendi-Hernandez became the plaza boss of El Control on Nov. 6, 2010, when Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to the El Control Plaza. At that time, Arizmendi-Hernandez resumed his duties as second in command of the Plaza.
Cartel Del Golfo Transnational Criminal Organization (CDG) plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
The evidence presented at sentencing indicated that Zuniga-Hernandez and the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and more that 3000 kilograms of marijuana into the United States per month. Planes and clandestine air strips were used to fly the cocaine into Mexico for later importation and distribution within the United States.
Under his command were approximately 120 lookouts and 60 estacas (a vehicle occupied by three or four armed individuals). Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza.
On Oct. 27, 2011, Zuniga-Hernandez and Arizmendi Hernandez fled into the United States with Juan Rincon-Rincon and Luis Ivan Nino-Duenes after a gun battle in Mexico involving a power struggle between the plazas of the CDG. All were found and arrested by the U.S. Border Patrol (USBP) hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG. Also found were videos of Arizmendi Hernandez, Zuniga-Hernandez and other members of the CDG in preparation for and after the Oct. 27, 2011, gun battle.
Zuniga-Hernandez and Arizmendi Hernandez had stipulated that the total relevant conduct during their leadership was well in excess of 150 kilograms of cocaine and 1,000 kilograms of marijuana. Both have agreed they obtained at least $5 million in drug proceeds as a result of the conspiracy.
Both men will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by HSI, Drug Enforcement Administration and the Cameron County Sheriff’s Office. Assistant United States Attorneys Angel Castro and Jody Young are prosecuting.
Former Chippewa Cree Tribal Chairman Sentenced to 34 Months in Prison for Bribery, Embezzlement, and Tax EvasionRead the Press Release
GREAT FALLS – Former Chippewa Cree Tribal Chairman Bruce Sunchild, 69, of Box Elder was sentenced to almost three years in federal prison for his role in the widespread public corruption at the Rocky Boy’s Indian Reservation. The sentencing took place before U.S. District Judge Brian Morris today, in Great Falls.
Bribery and Theft relating to Tribal Insurance Monies
Sunchild plead guilty to bribery and theft in connection with a December 2011 transfer of $300,000 in tribal insurance funds to K & N Consulting, a company owned by Havre businessman Shad Huston.
According to prosecutors on December 22, 2011, K & N Consulting received and deposited a cashier’s check in the amount of $300,000 from the Chippewa Cree Tribe. An internal tribal document reflected that five tribal officials approved the disbursement ostensibly for “claim prep” by K & N Consulting—Chairman Sunchild, Vice-Chairman John Chance Houle, two members of the Insurance Recovery Team Councilman Ted Whitford and Chippewa Cree Construction Corporation CEO Tony Belcourt, and Tribal Secretary-Treasurer Janice Meyers. The funds were drawn on the Tribe’s bank account utilized for the Insurance Fund settlement monies that came to the tribe in the wake of flooding in 2010. No other supporting records or documents—such as invoices, itemized billing, receipts, pay requests, evidence of costs incurred or disbursements made for the work, or any other kind of standard supporting documentation—were found in a search of tribal records by employees of the Tribe.
K & N Consulting issued a $200,000 check from its business account to Tony Belcourt—noted as “consulting services” and dated December 20—which Belcourt deposited on December 23, the day following the tribal payment to K & N Consulting. From the remaining $100,000, of the $300,000 insurance check to K & N Consulting, Huston and K & N Consulting paid out an additional $57,800 to the benefit of the other three approving officials, including $24,977 paid to Tilleman Motors to clear the title and transfer Belcourt’s Chevrolet Suburban to Sunchild; $12,823 to Tilleman Motors to pay the bill on repairs and maintenance for Chance Houle’s vehicle; and a check payable to “Cash” in the amount of $20,000 with the memo section notation “Mervin Whitford – on CCCC Rocky Boys Tribe.” Mervin Whitford is the brother of Ted Whitford. Huston and K & N Consulting retained the remaining $42,200.
Embezzlement from the Rocky Boy Health Clinic
Sunchild had also entered a plea of guilty to the embezzlement of $25,000 from the Rocky Boy Health Clinic.
In 2012, Bruce Sunchild, then Chairman of the Chippewa Cree Business Committee and on the Board of Directors of the Rocky Boy Health Board Clinic, sought to get in-patient substance abuse treatment for his son and his son’s girlfriend. The White Sky Hope Center, located on the Rocky Boy’s Indian Reservation and serving the Chippewa Cree Tribe, receives approximately $90,000 a year from the IHS to pay for inpatient treatment for tribal members requiring those services. White Sky does not have inpatient treatment facilities, but the federal funding allows White Sky to refer 6 to 8 tribal members a year for inpatient treatment at facilities outside of the reservation. These 6 to 8 tribal members are chosen based on their conditions and/or if their situation constitutes a need for emergency in-patient rehabilitative care. These 6 to 8 tribal members must be referred by White Sky for the services to be covered by federal funding.
After the pair was turned down by White Sky, Chairman Sunchild directed them to meet with Dr. James Eastlick, Jr. Eastlick had told Chairman Sunchild that the only money available for treatment was through a White Sky referral, but the Chairman was adamant that the pair get treatment off the reservation and as soon as possible. Eastlick arranged for the pair to get an evaluation in Havre which was used to get a referral to the Rimrock Foundation in Billings. Chairman Sunchild went to Huston and asked that he “front” the money for treatment at Rimrock for his son and his son’s girlfriend with the promise that Huston would be repaid. Huston agreed and the two went to Rimrock as private patients (meaning they paid the full rate instead of a discounted rate that would have been expended had they went through White Sky). The total bill was $25,000.
In October of 2012, Chairman Sunchild directed Fawn Tadios, then the Executive Director of the RBHB Clinic, to issue two checks: Check # 107918 payable to Sunchild’s son’s girlfriend and Check # 107919 was payable to Sunchild’s son. In an October 11, 2012, email, Tadios told John Johnson in the RBHBC Finance office to issue the checks “to [Sunchild’s son] and [Sunchild’s son’s girlfriend]” and further advised that “I’ll [Tadios] take them over to Leon’s and he’ll [Huston] call them and have them sign them over to the pawn shop.” The pawn shop referred to in the email is Leon’s Buy and Sell which is owned and operated by Shad Huston. The repayment funds came from Contract Health Service (CHS). Johnson advised investigators that CHS does not pay for inpatient treatment. Only the White Sky Hope Center covers the cost for inpatient treatment.
Tax Evasion
Sunchild also plead guilty to tax evasion for his failure to report and pay tax on $144,477 of unreported income in and between 2009 and 2012.
In addition to the federal prison sentence, Sunchild was sentenced to pay $370,088 in restitution. Of that amount, restitution was ordered to the Internal Revenue Service in the amount of $45,088, and to Chippewa Cree Tribe in the amount of $325,000 — with $300,000 of that amount obligated jointly and severally with other defendants sentenced in connection with the December 201l transaction.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior, Health and Human Services, and Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division.
Former Armored Car Employee Convicted of TheftRead the Press Release
PHILADELPHIA – A federal jury, last night, returned guilty verdicts in the case of Tanika Victoria Little, 36, of Philadelphia, PA, who was charged with two counts of bank theft and one count of possession of a firearm with an obliterated, altered or removed serial number. A sentencing hearing is scheduled for June.
Little was an employee of Brink’s, Inc., a national armored truck company which delivered cash to banks, among other businesses. On February 15, 2011 and on March 1, 2011, Little came into possession of incorrectly routed bags of cash totaling approximately $110,000 in $20 denominations. Little failed to deliver the bags of cash to Bank of America's Drexel Hill branch and began making deposits into her personal bank accounts. Little, whose annual income from Brink=s was approximately $41,000 at the time, deposited approximately $41,840 in cash in $20 denominations into three different bank accounts between March 2, 2011 and June 1, 2011. On June 29, 2011, within an eight-hour period of time, Little purchased 27 money orders, totaling approximately $13,000, with cash from eight different retail establishments in South Philadelphia, PA. In addition, in 2011, Little reported that she had paid approximately $25,000 for exterior and interior home improvements in cash, including $2,000 for a remodeled bathroom, $4,300 for a remodeled kitchen, $8,500 for a remodeled basement, and $9,000 for rebricking of her home’s exterior.
Little faces an advisory sentencing guideline range of 30 to 37 months in prison, a fine of up to $2.1 million, a $300 special assessment, and up to five years of supervised release.
The case was investigated by United States Secret Service and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Anita Eve.
Federal Grand Jury in Fort Wayne, Indiana, Returns Indictments in Large Scale Cocaine Distribution NetworkRead the Press Release
The U.S. Attorney's Office of the Northern District of Indiana announced today two indictments charging six persons in what is alleged to be the largest cocaine distribution network in the greater Fort Wayne, Indiana, area.
These indictments are the result of an extensive law enforcement investigation led by the Federal Bureau of Investigation (FBI) Fort Wayne Safe Streets Task Force. In addition to the FBI, the Task Force consists of the Allen County Sheriff’s Department, the Fort Wayne Police Department and the Indiana State Police.
There were five people charged with conspiracy to deliver more than five kilograms of cocaine: Allan L. Bates, 37, of Fort Wayne, Indiana; James W. Lepper, 66, of Butler, Indiana; Larry J. Norton, 63, of Mission Texas, formerly of Fort Wayne, Indiana; Eric D. White, 52, of Fort Wayne, Indiana; and Ryan Bowman, 35, of Payne, Ohio.
One individual, DeWayne Lewis, 40, of Greenwood, Indiana was charged in a separate indictment with possession with intent to deliver over five kilograms.
All defendants are in custody and are being held without bond. During the course of this extensive investigation, law enforcement executed 17 federal searches in Indiana, Ohio and
Texas. In addition, the DeKalb County and Johnson County Prosecutor’s offices obtained two state search warrants. All of these searches resulted in the seizure of more than 100 kilograms of cocaine, over $5.9 million in U.S. currency and numerous firearms and vehicles.
Great assistance was also provided by the McAllen, Texas, and Toledo, Ohio, offices of the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service – Northern and Southern Districts of Indiana, along with the Auburn Police Department, the Greenwood Police Department, the Kendallville Police Department, the Johnson County Sheriff’s Department, the Indiana Multi-Agency Group Enforcement (IMAGE) representing law enforcement in DeKalb, LaGrange, Noble and Steuben Counties and the Northeast Indiana SWAT.
This case has been assigned to and will be prosecuted by Assistant U.S. Attorney Anthony W. Geller of the Northern District of Indiana.
The U.S. Attorney's Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the federal sentencing guidelines.