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22 April 2015
Indictment Charges Trio in Counterfeit Credit Card OperationRead the Press Release
PHILADELPHIA - Rahim Henderson, 38, Tian Larode, 34, and Waliyda Henderson, 33, all of Philadelphia, PA, were charged by indictment, unsealed today, with running a counterfeit credit card manufacturing operation, announced United States Attorney Zane David Memeger. All three defendants were charged with conspiracy, wire fraud, and access device fraud. Rahim Henderson was also charged with multiple counts of aggravated identity theft.
According to the indictment, Rahim Henderson manufactured counterfeit credit cards and he and his co-conspirators used them at commercial establishments in the Philadelphia region.
If convicted of all charges, Rahim Henderson faces a mandatory minimum term of two years in prison with a maximum statutory sentence of 74 years in prison, a fine of up to $3 million, a special assessment of $1,200, and three years of supervised release; Tian Larode faces a maximum statutory sentence of 35 years in prison, a fine of up to $750,000, a special assessment of $300, and three years of supervised release; and Waliyda Henderson faces a maximum statutory sentence of 35 years in prison, a fine of up to $750,000, a special assessment of $300, and three years of supervised release.
The case was investigated by the United States Secret Service and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney James A. Petkun.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Independence Man Sentenced to 15 Years for Credit Card FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for using stolen credit cards that he obtained from automobile burglaries.
Jeffery M. Haywood, 44, of Independence, was sentenced by U.S. District Judge Dean Whipple to 15 years in federal prison without parole, which is the statutory maximum penalty for this offense, less credit for time served on a related state case.
On Sept. 22, 2014, Haywood pleaded guilty to using a stolen credit card with the intent to defraud.
According to court documents, the victim left her purse in her vehicle when she parked at the Overland Park Racquet Club in Overland Park, Kan., at approximately 7 p.m. on Nov. 25, 2012. When she returned to her vehicle at approximately 8:45 p.m., she found that a window had been smashed and her purse was gone. The purse contained several credit cards, including an American Express card. She immediately called American Express to report the card stolen and learned that more than $3,000 worth of unauthorized charges had already been made on her account at several local businesses in the past two hours, as well as a ninth attempted charge.
A loss prevention officer at a Price Chopper store provided investigators with a surveillance photograph of a female who had conducted the fraudulent transaction at that business. The surveillance photo was published in the news media and an anonymous caller identified the suspect, who was not charged in this case. She described an auto burglary ring that included Haywood and others.
The investigation revealed that Haywood was responsible for at least 10 additional automobile burglaries in which purses were taken and credit or debit cards stolen, with a total loss of more than $10,000.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the Kansas City, Mo., Police Department and the Overland Park Police Department.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LUIS FERNANDO MARTINEZ, age 40, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about March 4, 2015, MARTINEZ was found in the United States after having been officially deported and removed on or about February 1, 2013.
MARTINEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Helen G. Berrigan set sentencing for June 17, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harvey Woman Pleads Guilty to Conspiring to Steal $68,000 in Federal Housing AssistanceRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRENISE DEBOUE MURPHY, age 52, of New Orleans, pled guilty today to a one-count Bill of Information charging her with conspiring to commit theft of government funds.
According to court documents, MURPHY submitted an application to receive housing assistance from the Jefferson Parish Housing Authority (“JPHA”) through the Housing Choice Voucher Program (“HCVP”). MURPHY listed her family composition as she, her son, and her daughter. The defendant did not include her husband, who owned the residence in which they lived, in her family composition. As a result of that representation, as well as yearly recertification paperwork she filed that indicated that she was unmarried and that hid the fact that her “landlord” was actually her husband, the JPHA provided housing assistance on behalf of MURPHY between September 2003 and September 2012, in the amount of approximately $68,593.00.
MUPRHY faces a maximum term of imprisonment of five years, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Stanwood R. Duval, Jr. set sentencing on August 12, 2015.
U.S. Attorney Polite praised the work of the U.S. Department of Housing and Urban Development – Office of the Inspector General in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Trenise Deboue Murphy Factual Basis
Hagerstown Woman Sentenced to over Three Years in Prison for Distribution of Heroin Resulting in an Overdose DeathRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Heather Lynn Koons, age 33, of Hagerstown, Maryland today to 37 months in prison, followed by three years of supervised release, for distribution of heroin to an individual, resulting in his death from a heroin overdose. Judge Bennett also ordered Koons to pay restitution of $3,484 to the victim’s family.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Washington County Sheriff Douglas W. Mullendore.
According to her plea agreement, on October 19, 2012, Koons distributed approximately one gram of heroin to two individuals. One of the individuals, Daniel Shorten, died later that evening of a heroin overdose. Following Shorten’s death, Koons and the other individual exchanged text messages and had a series of phone conversations about the overdose. During one of the phone calls Koons instructed the individual to delete text messages from her phone and to refrain from contacting Koons for two weeks. During a recorded phone conversation on October 23, 2012, Koons admitted that she distributed heroin to Shorten and the other individual prior to Shorten’s death.
United States Attorney Rod J. Rosenstein praised the DEA and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.
Former Walnut Creek Investor Sentenced to over Four Years Imprisonment in Real Estate Fraud SchemeRead the Press Release
OAKLAND – Benny Chetcuti, Jr. was sentenced yesterday to 51 months in prison, and ordered to pay $21,823,526.10 in restitution, as well as forfeit $3,968,995 in proceeds obtained from a multi-year real estate investment fraud scheme, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Mr. Chetcuti, 60, of Walnut Creek, California, pleaded guilty on October 21, 2014, to two counts of wire fraud. According to the plea agreement, Mr. Chetcuti admitted that between 2007 and 2010, he defrauded private investors who loaned him money under the belief that their loans were backed by equity in real property. In fact, Mr. Chetcuti misrepresented aspects of many of the loans including how much equity was available to secure the loans, the amounts and seniority of loans already tied to the properties, and how the loans were used. He also misled investors about whether their loans were recorded through deeds of trust.
Mr. Chetcuti, was indicted by a federal grand jury on March 27, 2014. According to the indictment, Mr. Chetcuti operated a real estate investment firm, Chetcuti & Associates, since 1998. Chetcuti & Associates was in the business of purchasing and flipping homes for resale after renovation and was funded in large part by loans from private individuals. To carry out his scheme, Mr. Chetcuti used a variety of tactics to misrepresent the equity that supposedly backed his loans. Among the tactics he used were forging deed recordings, forging letters supposedly written by institutional lenders and title company officers, and directing others to impersonate escrow officers. The indictment charged Mr. Chetcuti with two counts of wire fraud in violation of 18 U.S.C. § 1343.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge. The Court found that Mr. Chetcuti’s fraudulent scheme caused more than $3.9 million in losses, attributable to 21 victims. In addition, the Court ordered Mr. Chetcuti to pay more than $21.8 million in restitution for the losses his real estate investment business caused. The Court also sentenced the defendant to a three-year period of supervised release and explicitly barred him from participating in any real estate, banking, or lending-related activities. The defendant was ordered to self-surrender to federal authorities on June 4, 2015, at which time he will begin serving the sentence.
Assistant U.S. Attorney Andrew S. Huang is prosecuting the case with the assistance of Vanessa Quant and Yvette Baird. The prosecution is the result of a multi-year investigation by the Federal Bureau of Investigation. The U.S. Department of Labor, Employee Benefits Security Administration also assisted with the investigation.
Former Tutoring Company Owners Who Admitted Defrauding Dallas and Fort Worth Independent School Districts Are SentencedRead the Press Release
DALLAS — Two individuals who ran a tutoring business from offices in Hurst, Texas, and pleaded guilty to federal offenses stemming from their fraudulent operation of that business, were sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Flori Mati, aka “Florine Shaw,” and David Mbugua, were each sentenced to 60 months in federal prison by U.S. District Judge Barbara M. G. Lynn. In addition, Judge Lynn ordered each to pay, jointly and severally, $1,613,733 in restitution. Each pleaded guilty in October 2014 to one count of conspiracy to make false, fictitious or fraudulent claims. After their arrests in March 2014, the Court determined they were flight risks and ordered them to remain in federal custody.
Under the No Child Left Behind Act of 2001, federal funds were distributed to state educational agencies, which in turn distributed them to school districts in the form of sub-grants. School districts used a portion of these federal dollars to fund a Supplemental Education Services (SES) program. That SES program provided extra academic assistance, such as tutoring, for eligible students at no cost. Tutoring providers billed the local school districts for the hours of tutoring provided and the school district paid for the tutoring with federal grant money.
For the 2011-2012 and 2012-2013 school years, the Dallas Independent School District (DISD) and the Fort Worth Independent School District (FWISD) each received sub-grants and offered an SES program to eligible students at eligible schools.
From 2011 through the beginning of August 2012, Mati, a former DISD teacher, and Mbugua formed four tutoring companies: Wise Links, LLC; Diverse Links, Inc.; Boost Academy and Avenue Academy. They operated all four entities as one business from offices located on West Bedford Euless Road in Hurst. Beginning in September 2011 and continuing through the end of May 2013, Mati and Mbugua contracted with DISD and FWISD, as well as other school districts in Texas, to provide tutoring services under the SES program.
Mati and Mbugua formed these four separate companies to hide their true ownership and mislead the Texas Education Agency into believing they were unrelated companies, and thus, obtain more SES business than a single company could obtain from the various school districts.
They also obtained as many student names as possible. Mati obtained student identifying information by using her online teacher access to the DISD network. Mati, Mbugua and their employees would also go door-to-door with gifts and prizes to induce students to sign up for their tutoring services, regardless of the students’ intent to attend. Mati, Mbugua and their empoyees would then use student information to mass enroll students, via the Internet, from their residence, their Hurst offices and even from Kenya. They falsified documentation supporting their fraudulent claims by inducing students to sign attendance logs for tutoring sessions they did not receive. They even recruited a friend and her children to complete false and forged attendance sheets.
During the course of their conspiracy, Mati, Mbugua and others submitted false claims to DISD, FWISD and other school districts in Texas, for tutoring services under the SES program that were not provided to students. They billed DISD $2,730,389, and they were paid $1,523,079. They billed FWISD $1,430,687, and they were paid $1,003,318. Approximately 75% of the total amounts billed – approximately $3,120,807 – was for services not provided. Mati and Mbugua wired some of the proceeds they received from these false claims to Kenya, beyond the reach of U.S. authorities.
The FBI and U.S. Department of Education – Office of Inspector General investigated. Assistant U.S. Attorneys Nancy Larson and Megan Fahey prosecuted.
Former Loan Officer at Export-Import Bank Pleads Guilty to Accepting over $78,000 in BribesRead the Press Release
A former loan officer at the Export-Import Bank of the United States (Ex-Im Bank) pleaded guilty in federal court today for accepting more than $78,000 in bribes in return for recommending the approval of unqualified loan applications to the bank, among other misconduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Inspector General Michael T. McCarthy of the Export-Import Bank of the United States and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
Johnny Gutierrez, 50, of Stafford, Virginia, pleaded guilty before U.S. District Judge Gladys Kessler of the District of Columbia to one count of bribery of a public official. A sentencing hearing is scheduled for July 20, 2015.
“Gutierrez risked both taxpayer dollars and the integrity of the Ex-Im Bank for his personal financial gain,” said Assistant Attorney General Caldwell. “Those charged with serving the public will be held accountable when they seek personal enrichment at the public’s expense.”
“Gutierrez betrayed the trust and confidence of the hardworking Ex-Im Bank employees and the U.S. taxpayers,” said Acting Inspector General McCarthy. “The Office of Inspector General will continue to aggressively and diligently investigate all allegations of waste, fraud, and abuse related to Ex-Im Bank programs.”
“In his role as a loan officer, Gutierrez betrayed the trust that was placed in him by fellow citizens and took bribes in exchange for providing favorable action on loan applicants,” said Assistant Director in Charge McCabe. “The FBI, with our partners, will continue to investigate and expose fraudulent schemes that tarnish the good and ethical work of the U.S. government.”
According to his plea agreement, Gutierrez was a loan officer for the Ex-Im Bank based in Washington, D.C. The Ex-Im Bank is the federal agency responsible for promoting the export of U.S. goods to foreign countries through the guarantee of domestic loans to foreign buyers. As an Ex-Im Bank loan officer, Gutierrez was responsible for conducting credit underwriting reviews for companies and lenders submitting financing applications to the Ex-Im Bank.
As part of his guilty plea, Gutierrez admitted that on 19 separate occasions between June 2006 and December 2013, he accepted bribes totaling more than $78,000 in return for recommending the approval of unqualified loan applications and improperly expediting other applications.
Specifically, Gutierrez admitted that he intentionally ignored the fact that one company had previously defaulted in 10 previous transactions guaranteed by the bank, causing the Ex-Im Bank to lose almost $20 million. Despite these defaults, Gutierrez accepted bribes to continue to recommend the approval of the company’s loan applications. Additionally, Gutierrez admitted that he accepted bribes from a financing broker to expedite applications submitted by the broker, and that he privately assisted the broker to improve its applications before submission to the bank. In exchange, Gutierrez was to receive half of the broker’s profit on the transactions financed by the bank. Further, Gutierrez disclosed to the broker inside information about financing applications submitted to the Ex-Im Bank, so that the broker could solicit the applicants as clients.
The case was investigated by the Inspector General of the Export-Import Bank of the United States and the FBI, with significant assistance provided by the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington Field Office. The case is being prosecuted by Senior Litigation Counsel Patrick M. Donley and Trial Attorney William H. Bowne of the Criminal Division’s Fraud Section.
Former Letter Carrier Pleads Guilty to Dumping U.S. MailRead the Press Release
Nine Trash Bags of Mail Recovered from Overgrown Lot
NORFOLK, Va. – Shalita Corley, 31, of Portsmouth, Virginia, pleaded guilty today to one count of secreting and delaying U.S. mail, which she had been entrusted to deliver.
A statement of facts filed with the plea agreement reported Corley worked as a city carrier assistant with the United States Postal Service (USPS) from November 3, 2014 through February 6, 2015, when she resigned her position. On February 3, 2015, a Norfolk resident observed Corley acting suspiciously and walking about an overgrown lot abutting the Lafayette River in Norfolk. After Corley drove away in her USPS vehicle, the resident investigated and found two trash bags containing hundreds of pieces of mail, including what appeared to be one or more envelopes containing checks. The resident collected the mail and promptly turned it over to the USPS. Further investigation during the ensuing week by residents and the USPS led to the recovery of other mail scattered about the lot and seven additional trash bags containing undelivered U.S. mail, including what appeared to be bank statements, end of year tax mailings, USPS priority mail, letters from service members in the armed forces, and other mailed advertisements and the like. Review by agents with the USPS Office of Inspector General revealed that these items of U.S. mail had been postmarked on days falling within the first four weeks of January and the first week of February 2015. The USPS later delivered all of the recovered mail to its intended recipients.
A Norfolk federal grand jury indicted Corley on March 4, 2015. Corley faces a maximum penalty of five (5) years in prison when she is sentenced on July 15, 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul Bowman, Special Agent in Charge, USPS, Office of Inspector General, made the announcement after the plea was accepted by Chief Judge Rebecca Beach Smith of the United States District Court.
This case was investigated by USPS, Office of the Inspector General. Assistant U.S. Attorney Robert J. Krask is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-25.
Filipino National Charged with Conspiring to Export Firearms Parts from the United StatesRead the Press Release
CAMDEN, N.J. – A Filipino national appeared in federal court today to face charges that he allegedly conspired to smuggle firearms parts out of the United States, U.S. Attorney Paul J. Fishman announced.
Kirby Santos, 38, of the Republic of the Philippines, is charged in a criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws. Santos was arrested in Guam on March 31, 2015, by special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). He appeared this morning before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained.
According to the documents filed in this case and statements made in court:
Beginning in 2008, Santos used an internet forum to meet others and discuss the sales and shipment of firearms and firearms parts from the United States to the Philippines. Santos met a Toms River, New Jersey, conspirator who agreed to help Santos ship firearms and firearms parts from the United States to the Philippines. Santos used his credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos arranged for the suppliers – including J&T Distributing from Winchester, Kentucky, Rainier Arms from Auburn, Washington, and Midway Corporation from Columbia, Missouri, among others – to send the firearms parts to the conspirator’s Toms River address in order to make it appear as a domestic sale.
At the direction of Santos, the conspirator would then repackage the firearms parts, falsely label the contents of the package and export the firearms parts to the Philippines for ultimate delivery to Santos. To disguise his role in the conspiracy, the conspirator used an alias when sending the packages containing prohibited items. Upon receiving the firearms parts, Santos paid the conspirator through cash payments to the conspirator’s relatives in the Philippines.
During the course of the nearly five-year long conspiracy, Santos purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.
The conspiracy count with which Santos is charged is punishable by a maximum potential penalty of five years in prison and a $250,000 fine.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of DHS-HSI, under the direction of Acting Special Agent in Charge Kevin Kelly, and special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky Jr., with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Timothy R. Anderson Esq., Red Bank, New Jersey
Federal Jury Convicts Springfield Man of Drug and Firearms OffensesRead the Press Release
BOSTON – Following a six-day trial, a federal jury convicted a Springfield man with distributing cocaine, crack cocaine, and being a felon in possession of a firearm and ammunition.
Sherad Therrien, 24, was convicted yesterday of distributing and possessing with intent to distribute both cocaine and crack cocaine, and being a felon in possession of a firearm and ammunition. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 16, 2015.
On Sept. 4, 2013, Therrien sold a cooperating witness 27 grams of cocaine, 6 grams of cocaine base in the form of crack cocaine, a HiPoint, 9mm handgun, and 7 rounds of 9mm ammunition for $2,140. On Dec. 11, 2013, Therrien sold the witness an additional 12 grams of cocaine base in the form of crack cocaine for $62. Two months later, Therrien sold nearly 14 grams of cocaine for $620 to the witness. Finally, on March 28, 2014, Therrien sold 10 grams of cocaine for $625.
The charge of distributing cocaine and/or crack cocaine provides a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Todd E. Newhouse of Ortiz=s Springfield Branch Office.
Federal Indictment Charges 12 "United Blood Nation" Gang Members with Racketeering ConspiracyRead the Press Release
CHARLOTE, N.C. – A second superseding federal indictment was unsealed this morning charging 12 alleged gang members with racketeering conspiracy, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Of the 12 defendants charged, seven face additional charges, including murder in aid of racketeering and related firearms violations, which potentially expose those defendants to the federal death penalty.
Of the 12 defendants named in the indictment, three were previously arrested on federal armed robbery charges and two are in custody in South Carolina on state murder charges. Law enforcement arrested seven of the alleged gang members during an early morning round-up.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Kevin Brackett, Solicitor for York and Union Counties in South Carolina; Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department; and Sheriff Bruce Bryant of the York County Sheriff’s Office in South Carolina join Acting U.S. Attorney Rose in making today’s announcement.
“The individuals charged today have alleged ties to a ruthless street gang that uses fear, intimidation, and even murder to protect the interests of their criminal organization,” said Acting U.S. Attorney Rose. “My Office will work closely with our law enforcement partners, in North Carolina and across state lines, to identify and prosecute violent gang offenders and deliver justice to victims of gang violence.”
“From the moment the FBI became involved in the investigation of the murders of Douglas and Deborah London, agents, task force officers, and other FBI employees worked tirelessly to find those responsible. Together with our law enforcement partners, we have discovered and unraveled a dangerous criminal enterprise that spread a web of violence without regard for innocent lives,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
The indictment charges each of the 12 alleged gang members with RICO conspiracy. The named defendants are:
- Jamell Lamon Cureton a/k/a “Assassin,” a/k/a “Murda Mel,” 22, of Charlotte.
- Nana Yaw Adoma a/k/a “Ratchet,” 20, of Charlotte.
- David Lee Fudge a/k/a “Flames” a/k/a “Flame,” 22, of Pineville, N.C.
- Daquan Lamar Everett a/k/a “Day Day,” 20, of Charlotte.
- Randall Avery Hankins, II a/k/a “Foe,” 20, of Charlotte.
- Malcolm Jarrel Hartley a/k/a “Silent” a/k/a “Bloody Silent,” 21, of Charlotte.
- Nehemijel Maurice Houston a/k/a “Mijel” a/k/a “Swagg Out,” 20 of Charlotte.
- Briana Shakeyah Johnson a/k/a “Breezy B” a/k/a “Breezy V” 19, of Concord, N.C.
- Ibn Rashaan Kornegay a/k/a “IB,” 35, of Greenville, N.C.
- Centrilia Shardon Leach a/k/a “CeCe,” 31, of Charlotte.
- Ahkeem Tahja McDonald a/k/a “Lil Keem” a/k/a “Savage,” 21, of Charlotte.
- Rahkeem Lee McDonald a/k/a “Hitman” a/k/a “Big Keem,” 22, of Charlotte.
In addition to the RICO conspiracy charge, Cureton, Fudge, Hankins, Hartley, Johnson and Rahkeem McDonald are charged with two counts of murder in aid of racketeering and two counts of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death, for the October 2014 murders of Douglas and Deborah London. Hartley faces two additional charges of possession of a firearm by a felon.
“The murder of a witness is more than just a violent assault calculated to shut down a prosecution,” said Solicitor Kevin Brackett, “it is an attack on the rule of law. It indicates a degree of contempt for the criminal justice system that deserves society’s harshest penalty.”
The unsealed indictment also charges Cureton and Ahkeem McDonald with one count of murder in aid of racketeering and one count of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death in connection with the August 2013 murder of Kwamne Donqurius Clyburn.
Cureton, Adoma and Fudge are also charged with one count of Hobbs Act Robbery, one count of assault with a dangerous weapon in aid of racketeering activity, and one count of use or carry a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence, for the May 2014 armed robbery of the Pineville area mattress store owned by Douglas and Deborah London.
“These indictments send a very strong message to those who engage in violent criminal activity. The Charlotte-Mecklenburg Police Department and our partner agencies will continue to be steadfast in our focus to keep the community safe,” said Chief Rodney D. Monroe of Charlotte Mecklenburg Police.
According to the allegations contained in the second superseding indictment filed in federal court, other publicly filed documents and statements made in court, from at least in or about 2012 to present:
The 12 defendants were members of the “United Blood Nation,” a criminal enterprise commonly known as “UBN,” or the “Bloods.” The defendants operated as a Racketeer Influenced and Corrupt Organization (RICO), responsible for carrying out violent acts for the purpose of protecting and furthering the gang’s power, intimidating communities and rival gangs, enriching its members and providing financial assistance to incarcerated UBN members, and obstructing law enforcement from identifying and prosecuting other gang members.
As UBN members, the defendants operated according to a common set of Bloods’ rules, also known as “The 31,” followed the gang’s ranking system, used the communication codes and language affiliated with the gang, and used distinctive markings, tattoos and colors to indicate allegiance to the gang. The defendants also regularly participated in gang meetings, during which they collected gang dues, planned actions against individuals suspected of cooperating with law enforcement, discussed the commission of crimes to include robbery and murder, and made plans to obstruct justice and to prevent the prosecution of other UBN gang members, among others.
On or about May 25, 2014, Cureton, Adoma and Fudge robbed “The Mattress Warehouse,” located in Pineville, N.C. Cureton committed the robbery at gun point, while Adoma served as the lookout man and Fudge the getaway driver. During the robbery, Cureton and Douglas London exchanged gunfire, Cureton was injured and the three conspirators fled the scene. Cureton sought medical treatment at an area hospital and was arrested on state charges related to the robbery. A criminal indictment bringing federal armed robbery and related charges against Cureton and Adoma was filed in Charlotte on November 18, 2014. In a first superseding indictment filed on January 21, 2015, Fudge was added as a third defendant for his role the robbery.
Over the next five months, the defendants exchanged correspondence and conducted numerous in-person and telephonic gang meetings, during which they discussed and planned the murder of Douglas London, the only eyewitness to the robbery. On or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed Douglas and Deborah London at their home. Shortly after, Cureton ordered the gang to remain silent about the Londons’ murders. Kornegay also conducted a telephone gang meeting with other UBN gang members, during which he directed them to lay low to avoid contact with law enforcement.
The indictment further charges Cureton and Ahkeem McDonald with the murder of Kwamne Donqurius Clyburn. According to the indictment, on or about August 22, 2013, the two gang members shot and killed Kwamne Clyburn for “false claiming,” that is, claiming to be a UBN member when he was not.
Nine defendants are currently in federal custody and had their initial appearances in Charlotte today. Law enforcement arrested Kornegay in Greenville and he appeared in federal court in Raleigh. Hartley and Johnson will be extradited from South Carolina in the coming days.
A chart identifying each defendant’s charges and maximum penalties is attached below. The indictment contains a notice of special sentencing factors, which provides for a greater sentence for those defendants charged with offenses related to the murders. The defendants’ sentences will be determined by the Court, after considering the federal sentencing guidelines and statutory sentencing factors.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
At today’s press conference announcing the charges, Acting U.S. Attorney Rose praised the outstanding investigative work of the FBI, CMPD and the York County Sheriff’s office and noted that the investigation is still ongoing.Ms. Rose also thanked the York County Solicitor’s Office for their continued support and cooperation with the case.
Assistant U.S. Attorneys Elizabeth Greene and Don Gast are in charge of the prosecution.
Federal Grand Jury in Del Rio Indicts Four in Firearms Smuggling OperationRead the Press Release
This afternoon in Del Rio, a federal grand jury indicted four individuals for their roles in a scheme to smuggle two firearms and an assortment of ammunition into Mexico announced Acting United States Attorney Richard Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge James Spero.
The indictment charges 47–year-old Eduardo Hinojosa (aka “Lalo”), a U.S. Citizen residing in Piedras Negras, Mexico; and three Mexican citizens residing in Piedras Negras--42-year-old Carlos Mendoza-Hernandez (aka “Pepo”), 23-year-old Elizabeth Cervantes-Mateos and 24–year-old Gily Ajin-Cordova--with five counts of aiding and abetting the smuggling of goods from the United States.
According to court records, the defendants were arrested on April 7, 2015. On that day, investigators observed Hinojosa loading ammunition and firearms into a vehicle at an Eagle Pass business owned by Mendoza’s family. Authorities subsequently seized a .243 caliber rifle, a .12 gauge shotgun and approximately 1,000 rounds of ammunition in various calibers from inside that vehicle. At the time of the seizure, authorities arrested the vehicle’s occupants--Cervantes and Ajin. Agents later observed defendants Hinojosa and Mendoza unloading boxes into a storage facility in Eagle Pass. Subsequently, authorities arrested Hinojosa and Mendoza and a consensual search of that storage facility revealed approximately 750 rounds of shotgun shells. Court records allege that the defendants were aware that the firearms and ammunition were ultimately destined for Mexico and that the defendants were aware that it is unlawful to export those items without a license.
All four defendants have remained in federal custody since their arrest. Each charge upon conviction calls for up to ten years in federal prison.
The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Maverick County Sheriff’s Office. Assistant U.S. Attorney Lewis Thomas is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are innocent until proven guilty in a court of law.
ExxonMobil to Pay $5 Million to Settle U.S. and Arkansas Claims for 2013 Mayflower Oil SpillRead the Press Release
ExxonMobil Pipeline Company and Mobil Pipe Line Company (ExxonMobil) have agreed to pay civil penalties, fund an environmental project and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
Under a consent decree lodged today in federal court, ExxonMobil will pay $3.19 million in federal civil penalties and take steps to address pipeline safety issues and oil spill response capability. In addition, ExxonMobil will pay $1 million in state civil penalties, $600,000 for a project to improve water quality at Lake Conway, and $280,000 to the Arkansas Attorney General’s Office for the state’s litigation costs.
The oil spill occurred on March 29, 2013, after the Pegasus Pipeline, carrying Canadian heavy crude oil from Illinois to Texas, ruptured in the Northwoods neighborhood of Mayflower, Arkansas. Oil flowed through the neighborhood, contaminating homes and yards, before entering a nearby creek, wetlands and a cove of Lake Conway. Some residents were ordered to evacuate their homes after the spill and remained displaced for an extended period of time. The spill volume has been estimated at approximately 3,190 barrels, or 134,000 gallons.
“This settlement holds ExxonMobil accountable for this very serious oil spill and its disastrous impact on the Mayflower community and environment,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement is also an excellent example of federal and state cooperation that will benefit public health and the environment for years to come and most importantly prevent future disasters by requiring better pipeline safety and response measures.”
“Oil spills like this one in Mayflower, Arkansas have real and lasting impacts on clean water for communities,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Companies need to take the necessary precautions to make sure oil is transported safely and responsibly. This settlement puts in place essential pipeline safety and response measures that are important to make this industry safer for communities.”
“The U.S. and the state of Arkansas have worked together since the first barrel of oil was spilled in 2013 to provide relief and assistance to the residents of Mayflower and Faulkner County and to hold ExxonMobil accountable for this serious spill,” said U.S. Attorney Christopher R. Thyer for the Eastern District of Arkansas. “This settlement does both. In addition to paying significant civil penalties, ExxonMobil will provide money for safety and water-quality projects to help ensure that the residents of the affected area never have to go through an ordeal like this again. This resolution to a terrible disaster is a testament to the partnership between our federal and state governments to protect the citizens of Arkansas.”
“Pipeline companies have the responsibility to protect both our water resources and people from oil spills,” said Regional Administrator Ron Curry for EPA. “Today’s settlement will help protect the environment by preventing the high economic and environmental costs of future oil spills.”
The penalties owed by ExxonMobil under the consent decree are in addition to the money that the company has already paid to reimburse federal and state response efforts and comply with orders and directives issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA). The segment of the Pegasus Pipeline that includes the rupture site has not been used since the March 2013 spill, and under the terms of the settlement agreement, ExxonMobil must comply with all PHMSA corrective action requirements before returning the pipeline to operation. The consent decree also requires ExxonMobil to take other important pipeline safety corrective action to help prevent future ruptures and improve its spill response capabilities by providing additional training to its oil spill first responders. In addition, ExxonMobil is required to establish caches of spill response equipment and supplies at three strategically-chosen sites along the pipeline, including one location near Mayflower in Faulkner County, Arkansas.
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the U.S. or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid to the U.S. for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the U.S. or adjoining shorelines.
The joint federal and state complaint in the case, filed June 13, 2013, in the U.S. District Court for the Eastern District of Arkansas, alleges that ExxonMobil discharged crude oil in violation of the Clean Water Act. The complaint also asserts state claims for civil penalties for improper storage of hazardous waste generated during the cleanup and for water and air pollution violations pursuant to the Arkansas Water and Air Pollution Control Act and the Arkansas Hazardous Waste Management Act.
The proposed consent decree, lodged in the Eastern District of Arkansas, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at http://www.justice.gov/enrd/Consent_Decrees.html.
ExxonMobil to Pay $5 Million to Settle U.S. and Arkansas Claims for 2013 Mayflower Oil SpillRead the Press Release
WASHINGTON – ExxonMobil Pipeline Company and Mobil Pipe Line Company (ExxonMobil) have agreed to pay civil penalties, fund an environmental project and implement corrective measures to resolve alleged violations of the Clean Water Act and state environmental laws stemming from a 2013 crude oil spill from the Pegasus Pipeline in Mayflower, Arkansas, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
Under a consent decree lodged today in federal court, ExxonMobil will pay $3.19 million in federal civil penalties and take steps to address pipeline safety issues and oil spill response capability. In addition, ExxonMobil will pay $1 million in state civil penalties, $600,000 for a project to improve water quality at Lake Conway, and $280,000 to the Arkansas Attorney General’s Office for the state’s litigation costs.
The oil spill occurred on March 29, 2013, after the Pegasus Pipeline, carrying Canadian heavy crude oil from Illinois to Texas, ruptured in the Northwoods neighborhood of Mayflower, Arkansas. Oil flowed through the neighborhood, contaminating homes and yards, before entering a nearby creek, wetlands and a cove of Lake Conway. Some residents were ordered to evacuate their homes after the spill and remained displaced for an extended period of time. The spill volume has been estimated at approximately 3,190 barrels, or 134,000 gallons.
“This settlement holds ExxonMobil accountable for this very serious oil spill and its disastrous impact on the Mayflower community and environment,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This agreement is also an excellent example of federal and state cooperation that will benefit public health and the environment for years to come and most importantly prevent future disasters by requiring better pipeline safety and response measures.”
“Oil spills like this one in Mayflower, Arkansas have real and lasting impacts on clean water for communities,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “Companies need to take the necessary precautions to make sure oil is transported safely and responsibly. This settlement puts in place essential
District Man Sentenced to 15 Years in Prison for Attacking Man and Woman in Northwest WashingtonRead the Press Release
WASHINGTON – Ryan Ramotar, 24, of Washington, D.C., was sentenced today to a 15-year prison term for sexually assaulting a woman and assaulting a man in a May 2013 attack in Northwest Washington, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Ramotar pled guilty in September 2014, in the Superior Court of the District of Columbia, to one count each of first-degree sexual abuse and aggravated assault. He was sentenced by the Honorable Rhonda Reid Winston. Following his prison term, he will be placed on 10 years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on May 6, 2013, at approximately 12:50 a.m., the male and female victims had just parked their car in a parking lot in the 1400 block of Oak Street NW. While they sat talking in the car, Ramotar and another male approached and opened the car doors. Ramotar and the other male pointed handguns at the victims and asked where the money was. He and the other male punched and struck the male victim in the head until he lost consciousness and lay on the ground next to the car.
Ramotar then pulled the female victim out of the car while still brandishing the gun and pushed her to the ground. He struck her several times in the head with the gun, demanding her money and phone. He took her phone and ATM card, and then told her to stand up and not to run. Then he walked the female victim away from the car, down an alley and into an open garage behind a house. At this point, Ramotar opened the cylinder of the gun, removed several bullets, and placed them in the female victim’s hand to show her that the gun was real. Ramotar then sexually assaulted the victim while holding the handgun to the back of her head.
Afterward, Ramotar told the female victim to look at the wall and demanded her PIN number for the ATM card that he had taken. He told her not to leave, and then fled. The female victim stayed on the ground for a short time until she was sure that the assailant was gone, and then ran and flagged down a uniformed officer with the Metropolitan Police Department (MPD). After making her report, she was transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE). The SANE kit was later sent for forensic testing and analysis.
Within less than two hours after the attack, at approximately 2:20 a.m., three withdrawals were made on the female victim’s bank account for $300 each. Detectives later obtained still photos and surveillance video footage of the person conducting these transactions. MPD later made this video public via the Internet, and sought the public’s assistance in identifying the individual at the ATM as a person of interest. In September, 2013, MPD received information that the individual on the bank surveillance video was the defendant.
Ramotar also was subsequently linked to the crime through DNA.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the officers and detectives of the Metropolitan Police Department’s Third and Fourth Districts and Sexual Assault Unit, as well as the mobile crime scene officers and technicians who worked on the case. He acknowledged the work of the District of Columbia Department of Forensic Sciences. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Victim/Witness Advocate Melissa Milam and Victim/Witness Advocate Christina Principe; Victim/Witness Specialists La June Thames and Katina Adams-Washington; and Paralegal Specialists Jason Manuel, Kristy Penny, Debra McPherson, and Erica Vample. Finally, he praised the work of Assistant U.S. Attorneys Natalia Medina, who assisted in investigating the case, and Amy H. Zubrensky, who prosecuted the case.
Delaware Man Pleads Guilty to Sexually Abusing D.C. GirlRead the Press Release
WASHINGTON – Robert Sanders III, 22, of Dover, Delaware, pled guilty today to charges stemming from his sexual abuse of a 13-year-old girl, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Sanders pled guilty in the Superior Court of the District of Columbia to one count of first-degree child sexual abuse. He is to be sentenced by the Honorable Rhonda Reid Winston on June 23, 2015. He faces up to a statutory maximum of life in prison. He will also be required to register as a sex offender for the rest of his life.
According to the government’s factual proffer at today’s plea hearing, during April of 2014, Sanders came to live with a relative in Southeast Washington. The victim was on spring break from school that week, and was visiting relatives in the same household. During that week, Sanders engaged in several sexual acts with the girl. The conduct was discovered by family members via text messages that Sanders and the victim had sent to one another.
In announcing the plea, Acting U.S. Attorney Cohen praised the work of the Metropolitan Police Department’s Youth Division, which investigated the case, as well as the staff of Safe Shores, which interviewed the victim. He also expressed appreciation for the specialized medical treatment provided by the team of child abuse experts at the Freddie Mac Child and Adolescent Protection Center at the Children’s National Medical Center. In addition, Acting U.S. Attorney Cohen commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key; Victim/Witness Advocate Veronica Vaughan, and Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Covington Man Sentenced for Conspiracy to Smuggle Turtles Out of the United StatesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LAWRENCE TREIGLE, age 33, from Covington, was sentenced today after pleading guilty to a one-count Bill of Information charging him with conspiring to smuggle turtles out of the United States in violation of the Lacey Act.
According to court documents, on December 3, 2014, TREIGLE pled guilty to the superseding Bill of Information. TREIGLE admitted he was part of a group of individuals involved in capturing North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong.
U.S. District Court Judge Helen G. Berrigan sentenced TREIGLE to a term of 15 months imprisonment, to be followed by two years of supervised release.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
Covington Couple Sentenced for Heroin ConspiracyRead the Press Release
COVINGTON — A Covington, Ky., couple has been sentenced to federal prison for conspiring to distribute heroin in northern Kentucky.
U.S. District Judge David L. Bunning sentenced William Lovelace, 25, to 90 months for conspiracy and possessing a firearm in furtherance of a drug trafficking crime. Tonia Cross received a 24 month sentence for conspiracy. Under federal law, both defendants must serve at least 85 percent of their prison sentence, and upon release, Lovelace and Cross will serve terms of supervised release of 10 and 3 years, respectively.
Lovelace and Cross pleaded guilty in January of this year and admitted they conspired to distribute heroin in Campbell and Kenton Counties on multiple occasions, between May 1, 2014 and August 16, 2014.
Authorities arrested Cross and Lovelace on August 16, 2014, after observing Lovelace, armed with a handgun, sell heroin in Bellevue.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation; and Colonel Wayne Turner, Chief of Police, Bellevue Police Department, jointly made the announcement today.
The investigation was conducted by the FBI’s Safe Streets Task Force and the Bellevue Police Department. Assistant U.S. Attorney Tony Bracke prosecuted this case on behalf of the federal government.
Court Approves Consent Order to Further Desegregate and Address Racial Inequalities in Huntsville City SchoolsRead the Press Release
The U.S. District Court for the Northern District of Alabama has approved a consent order filed by the U.S. Department of Justice and the Huntsville City Schools to reconfigure school attendance zones, improve access to quality course offerings and address racial discrimination in student discipline, among other areas.
In a 29-page opinion approving the consent order, U.S. District Judge Madeleine Hughes Haikala of the Northern District of Alabama called the plan a “game-changer” in the effort to finally eliminate the effects of state-mandated racial segregation in Huntsville. As the court noted, “the record demonstrates that full and faithful execution of the proposed consent order will enable the district to eliminate the effects of segregation “root and branch” and will pave the way toward a declaration of unitary status…. Now it is up to the district to act.”
The consent order, which amends the longstanding desegregation order in Hereford v. Huntsville Board of Education, resolves the parties’ dispute over the district’s 2014 plan to redraw student attendance zones. The department objected to the plan because it did not further desegregation or remedy racial inequalities in students’ access to quality academic offerings. The consent order was approved by the court after a far-reaching investigation by the department and months of mediation. It will require the district to provide equal educational opportunities to African-American students by:
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revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
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expanding access for African-American students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
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implementing measures to promote faculty and administrator diversity;
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ensuring that all students are aware of and can equally participate in extracurricular activities;
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creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory and does not unnecessarily remove students from classrooms;
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establishing a desegregation advisory committee of students and parents to advise the district and inform the court about implementation of the consent order;
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providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias and supporting positive student behavior; and
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continuously monitoring racial disparities to ensure meaningful and sustained improvement in student performance, students’ access to courses and rates of student discipline and other areas.
Judge Haikala’s opinion approving the consent order spoke directly to the students saying, “The consent order begins and ends with the district’s students – all of its students…The district believes in you and in your potential for success. We all do…. Think about how much the City of Huntsville will benefit from the contributions that you will make in the years ahead as teachers and engineers, as doctors and lawyers, as artists and musicians. You are an integral part of your community and have so much to offer.”
“This agreement provides for comprehensive remedies that are long overdue for African-American students in Huntsville,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We at the Civil Rights Division look forward to working with the district, the students and the community to implement the consent decree, instill equity and fairness in Huntsville schools, and strengthen the education provided to all students.”
“All of our children deserve the best possible educational opportunities,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Our communities and our future are strengthened and improved when parties come together, as the Justice Department and Huntsville City Schools did here, to ensure that all children have equal access to quality education.”
The department will monitor and enforce the district’s compliance. The school district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race and other factors in public schools, is a top priority of the department’s Civil Rights Division. Additional information about the Civil Rights Division of the department is available on its web site at www.justice.gov/crt.
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Court Approves Consent Order to Further Desegregate and Address Racial Inequalities in Huntsville City SchoolsRead the Press Release
WASHINGTON – The U.S. District Court for the Northern District of Alabama has approved a consent order filed by the U.S. Department of Justice and the Huntsville City Schools to reconfigure school attendance zones, improve access to quality course offerings and address racial discrimination in student discipline, among other areas.
In a 29-page opinion approving the consent order, U.S. District Judge Madeleine Hughes Haikala of the Northern District of Alabama called the plan a “game-changer” in the effort to finally eliminate the effects of state-mandated racial segregation in Huntsville. As the court noted, “the record demonstrates that full and faithful execution of the proposed consent order will enable the district to eliminate the effects of segregation “root and branch” and will pave the way toward a declaration of unitary status…. Now it is up to the district to act.”
The consent order, which amends the longstanding desegregation order in Hereford v. Huntsville Board of Education, resolves the parties’ dispute over the district’s 2014 plan to redraw student attendance zones. The department objected to the plan because it did not further desegregation or remedy racial inequalities in students’ access to quality academic offerings. The consent order was approved by the court after a far-reaching investigation by the department and months of mediation. It will require the district to provide equal educational opportunities to African-American students by:
- revising attendance zones and growing and strengthening magnet programs to improve diversity at many of its schools;
- expanding access for African-American students to pre-kindergarten, gifted programs, advanced course offerings such as Advanced Placement and International Baccalaureate, academic after-school programs, and college counseling;
- implementing measures to promote faculty and administrator diversity;
- ensuring that all students are aware of and can equally participate in extracurricular activities;
- creating positive, inclusive school climates, and ensuring that student discipline is fair, non-discriminatory and does not unnecessarily remove students from classrooms;
- establishing a desegregation advisory committee of students and parents to advise the district and inform the court about implementation of the consent order;
- providing professional development for teachers on such topics as strategies for teaching students from diverse backgrounds, understanding implicit bias and supporting positive student behavior; and
- continuously monitoring racial disparities to ensure meaningful and sustained improvement in student performance, students’ access to courses and rates of student discipline and other areas.
Judge Haikala’s opinion approving the consent order spoke directly to the students saying, “The consent order begins and ends with the district’s students – all of its students…The district believes in you and in your potential for success. We all do…. Think about how much the City of Huntsville will benefit from the contributions that you will make in the years ahead as teachers and engineers, as doctors and lawyers, as artists and musicians. You are an integral part of your community and have so much to offer.”
“This agreement provides for comprehensive remedies that are long overdue for African-American students in Huntsville,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We at the Civil Rights Division look forward to working with the district, the students and the community to implement the consent decree, instill equity and fairness in Huntsville schools, and strengthen the education provided to all students.”
“All of our children deserve the best possible educational opportunities,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Our communities and our future are strengthened and improved when parties come together, as the Justice Department and Huntsville City Schools did here, to ensure that all children have equal access to quality education.”
The department will monitor and enforce the district’s compliance. The school district may seek a declaration of unitary status and dismissal of the case when it can demonstrate sustained compliance with the terms of the consent order.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race and other factors in public schools, is a top priority of the department’s Civil Rights Division. Additional information about the Civil Rights Division of the department is available on its web site at www.justice.gov/crt.
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Corpus Christi Man Sentenced for Sexual Exploitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Sylvestre Reyes, Jr., 40, of Corpus Christi, has been ordered to prison for nearly 25 years following his conviction of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Reyes pleaded guilty in February 2015.
Today, Senior U.S. District Judge sentenced Reyes to 290 months in federal prison and will be on supervised release for the rest of his life. He must also register as a sex offender
In June 2014, law enforcement was dispatched to Driscoll Children’s Hospital in reference to a sexual assault of a child. The victim was identified and confirmed the abuse. Authorities conducted a search warrant and seized the cellular telephone of both Reyes and the victim which resulted in the discovery of 42 images of a child involved in sexually explicit conduct.
Reyes has remained in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The charges against Reyes were the result of an investigation conducted by Homeland Security Investigations and Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney (AUSA) Hugo R. Martinez and Special AUSA Brittany Jensen, 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."
Columbus Bank Robber SentencedRead the Press Release
James Brennan, aged 50, of Columbus, Georgia was sentenced to serve 85 months in federal prison for robbing the Regions Bank in Columbus, Georgia on October 14, 2014. The sentence was handed down by the Honorable Clay D. Land, Chief U.S. District Court Judge, on April 22, 2015, in Columbus, Georgia.
On January 13, 2015, Mr. Brennan entered a plea of guilty to bank robbery, admitting that on October 8, 2014, he donned a white baseball cap, covered his face with a green bandana and entered the Regions Bank on Veterans Parkway in Columbus with what appeared to be a black semi-automatic pistol in his right hand and a small cardboard box in his left hand. Mr. Brennan then pointed the firearm at a bank teller and took U.S. currency from her. He placed the currency in the cardboard box and exited the bank through the rear doors.
“Mr. Brennan not only robbed the bank, he terrorized the employees with his conduct. With a sentence of more than seven years, it will be a long time before he has the chance to attempt make any more illegal withdrawals,” said U.S. Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Columbus Police Department. Assistant United States Attorney Crawford L. Seals prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Cherryvale Man Convicted on Child Porn ChargesRead the Press Release
WICHITA, KAN. - A federal jury today convicted a Cherryvale, Kan., man on child pornography charges, U.S. Attorney Barry Grissom said.
Daniel Hosier, 35, Cherryvale, Kan., was convicted on one count of possession of child pornography and one count of distribution of child pornography.
During trial, prosecutors presented evidence that on March 28, 2013, Hosier emailed images of child pornography on Yahoo. They also presented evidence that on July 18, 2013, he possessed child pornography on laptop computers and on a smartphone.
Sentencing is set for July 13. He faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution count, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. Grissom commended the Montgomery County Sheriff’s Office, the FBI investigated and Assistant U.S. Attorney Jason Hart for their work on the case.
Chapmanville man pleads guilty to selling opanaRead the Press Release
CHARLESTON, W.Va. – A Chapmanville, W.Va. man admitted to selling the powerful prescription painkiller oxymorphone, commonly known as Opana. Joseph Allen Rogers, 41, pleaded guilty today in federal court in Charleston to distribution of oxymorphone, announced U.S. Attorney Booth Goodwin.
Rogers admitted that he sold Opana to a confidential informant on three separate occasions on April 14, 15, and 16, 2014. Officers with the U.S. 119 Task Force also executed a search warrant on Rogers’ residence and located additional oxymorphone, oxycodone, cash, and a firearm.
Rogers faces up to 20 years in prison when he is sentenced on August 10, 2015 by United States District Judge John T. Copenhaver, Jr.
The investigation was conducted by the U.S. 119 Task Force and the West Virginia State Police. Assistant United States Attorney Haley Bunn is handling the prosecution.
The prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Canadian Man Sentenced for Making A False Statement Involving A Smuggling Attempt at the BorderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Tonin Ndoja, 50, a citizen of Canada, who was convicted of making a false statement to a U.S. Customs and Border Protection Officer involving his attempt to smuggle aliens into the United States, was sentenced to time served by U.S. District Judge Richard J. Arcara.Assistant U.S Attorney Scott S. Allen, Jr., who handled the case, stated that on November 12, 2014, Ndoja attempted to enter the United States from Canada at the Peace Bridge. The defendant, a Free and Secure Trade (FAST) card holder and member of the trusted traveler program, was driving a tractor trailer carrying rolled steel. During a secondary inspection, officers with Customs and Border Protection discovered Ndoja and Bardok and Kleda Tusha, both citizens of Albania, hidden inside the cab of the tractor trailer under a blanket.
Defendants Bardok and Kleda Tusha pleaded guilty to a misdemeanor charge of illegal entry and were sentenced to time served.
The case is the result of an investigation by Customs and Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey.
California man pleads guilty to making Church Point school shooting threatRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a California man pleaded guilty to communicating a hoax that a school shooting would occur in Church Point, La.
Randall Swanson, 54, of Sacramento, Calif., pleaded guilty before U.S. District Judge Richard T. Haik to one count of false information or hoaxes. According to evidence presented at the guilty plea, during an online conversation on December 15, 2012, Swanson sent an online message to a person he believed to be from Church Point, that “the next school massacre happing in ur town.” Swanson followed the online message with photographs and other information about how the crime would occur. Swanson sent the message the day after the Sandy Hook Elementary School Shooting. Swanson also sent pictures from Church Point indicating he was present in Church Point. The victim who received the messages contacted local and state authorities. Swanson later admitted he was in California when the messages were sent, and his intentions were to alarm the person he had been messaging online.
Swanson faces five years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
“The shooting at Sandy Hook Elementary was a tragedy that our state and nation mourned,” Finley stated. “This defendant used that tragedy to perpetuate a hoax and caused confusion wasting the time and resources of first responders in the region. Those who make such false threats will be prosecuted to the fullest extent of the law.”
The FBI, Louisiana State Police and Church Point Police Department investigated the case. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Calera Man Sentenced to 60 Months Probation, $53,000 Restitution for False StatementRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL GLENN VALLES, age 47, of Calera, Oklahoma, was sentenced to 5 years probation with 8 months of home confinement for making a False Statement, in violation of Title 18, United States Code, Section 1014. The Defendant was also ordered to pay $53,560.28 in restitution.
The charge arose from an investigation by the United States Department of Agriculture, Office of Inspector General. The defendant was indicted in November, 2014 and pled guilty in December, 2014.
The Indictment alleged that on or about January 22, 2010, within the Eastern District of Oklahoma, the defendant, knowingly made a false statement for the purpose of influencing the action of the United States Department of Agriculture, Farm Service Agency in connection with a security agreement in which the defendant listed $80,739.19 in value of cattle that he had purchased in August and September 2009 when in truth and in fact, as the defendant well knew, he had only purchased $27,178.91 worth of cattle during that time period.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Buffalo Man Sentenced on Drug and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Avery, 47, of Buffalo, NY, who pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and money laundering, was sentenced to 120 months in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that beginning in early 2010 and continuing through June 14 2011, the defendant distributed between five and 15 kilograms of cocaine in the Buffalo area. Avery initially obtained cocaine from a source in Ohio. This source utilized Linda Johnson to transport the cocaine to Avery in Buffalo. Later on, Avery obtained cocaine from Tyree Bishop, who was obtaining the cocaine in Detroit, Michigan.
Co-defendants Spiwe Barnes, Linda Johnson and Tyree Bishop have all been convicted.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard. Assistance was also provided by the Erie County District Attorney’s Office, under the direction of Frank Sedita.
Buffalo Man Sentenced for Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charles Palmer, Sr., 51, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 12 years in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between November 2010 and June 2011, Palmer conspired with others to distribute cocaine in the City of Buffalo. On May 20, 2011, June 2, 2011 and June 7, 2011, the defendant sold cocaine to a confidential source working with the Federal Bureau of Investigation.
Palmer is the last of 11 defendants charged in the conspiracy to be convicted and sentenced.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation
Buffalo Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Timothy W. Marlnee, 58, of Buffalo, NY, pleaded guilty to possession of child pornography before U.S. District Court Judge Richard J. Arcara. The charge carries a minimum penalty of 10 years, am maximum of 20, and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on November 13, 2013, law enforcement officers searched the defendant’s residence on Chippewa St. in Buffalo. The officers recovered a laptop computer being used by the Marlnee. A subsequent forensic examination determined that the computer contained over 950 images of child pornography. Some of the images depicted children under the age of 12 years old. Some of the images also contained depictions of violence. Marlnee is a registered sex offender as a result of state convictions in 1985 and 1993.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force which includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Sentencing is scheduled for August 3, 2015 at 1:00 p.m. at Judge Arcara.
Brevard County Man Sentenced to More Than 30 Years for Child Exploitation OffenseRead the Press Release
Orlando, Florida – Senior United States District Judge John Antoon, II has sentenced Jonathan Tyler Prive (26, West Melbourne) to 30 years and 5 months in federal prison for attempting to induce a minor to engage in illegal sexual activity using the Internet. In addition, the Court ordered him to serve a life term of supervision, and to register as a sex offender upon his release from prison. Prive pleaded guilty on August 27, 2014.
According to court documents, in September and October 2013, an undercover agent with the Brevard County Sheriff’s Office conducted an investigation into an individual identified as Michael Glenn Glascock. The undercover investigation revealed that Glascock was sexually abusing a three-year-old minor victim, producing child pornography images of the minor victim, and distributing some of these images to others. Law enforcement agents eventually arrested Glascock at his residence in Brevard County, located the minor victim, and executed a search warrant at Glascock’s residence. A forensic examination of Glascock’s electronic devices and a review of his email accounts revealed emails between Prive and Glascock. In these emails, the two discussed a prior incident where Prive had sexually abused the minor victim at Glascock’s home, while Glascock was present. After discovering these emails, the undercover agent used Glascock’s email account to initiate online communications with Prive.
On November 4, 2013, and November 5, 2013, Prive communicated with the undercover agent via the Internet and emails and arranged to meet the agent, who was posing as Glascock in these emails, for the purpose of engaging in illegal sexual activity with the minor victim for a second time. Prive agreed to meet at a residence in Brevard County, where Prive thought the minor victim would be present. Agents followed Prive as he travelled to the street where this residence was located. Before Prive arrived at the residence, agents arrested him and recovered a packet of lubricant that he had brought for his planned meeting with the minor victim.
On August 18, 2014, Glascock also pleaded guilty to producing child pornography and attempted online enticement of a minor. On February 6, 2015, Judge Antoon sentenced him to life in federal prison.
“This strong sentence lets predators know that they cannot get away with the sexual exploitation of our children.” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI will continue to relentlessly pursue these criminals to make our communities safer.”
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Beckley man sentenced in federal court for heroin distributionRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley was placed on probation for three years for his conviction for selling heroin. Mario Walton, age 28, of previously pled guilty in January of 2015, to selling heroin to a person cooperating with law enforcement authorities. The drug deal took place on Airport Road in Beaver, Raleigh County, West Virginia.
This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Bay Area Psychologist Sentenced to Four Months in Prison for Submitting Falsified Billing Records to Federal Workers’ Compensation ProgramRead the Press Release
SAN FRANCISCO – Helena Weil was sentenced today to four months in prison and ordered to pay restitution of $496,101 related to her submission of billings to the federal Office of Workers’ Compensation Programs (OWCP), announced United States Attorney Melinda Haag and United States Postal Service-Office of Inspector General Special Agent in Charge Eileen Neff.
Weil, 64, of Kensington, California, pleaded guilty on July 2, 2014, to one count of 18 U.S.C. § 1519, which prohibits alteration or falsification of records. Weil was a psychologist licensed to practice by the State of California and maintained a practice in the San Francisco Bay Area. Weil treated numerous U.S. Postal Service and other U.S. Government employee-patients for which she was compensated through the OWCP, which administers Federal Employee Compensation Act programs. Weil was required to submit bills truthfully setting forth (a) the Current Procedural Terminology (“CPT”) codes corresponding to the services she provided to the patients, (b) the names of the U.S. Postal Service and other U.S. Government employees for whom she was providing services; and (c) the date of those services.
Weil admitted that on various dates between approximately March 2006 and December 2009, she submitted bills to the OWCP related to in-person services she supposedly provided to patients while she either was away from California or was in training. In all, Weil admitted that she submitted over 1,100 such billings for payment to the OWCP for dates on which she was traveling out of the state or was in training. The amount of these billings exceeded $175,000. Weil was charged in an information filed on May 23, 2014, and she formally waived indictment on May 29, 2014. The information charged her with one count of alteration or falsification of records in violation of 18 U.S.C. § 1519.
In addition to agreeing to pay restitution for the $175,174 in billings at issue in the information, Weil also agreed under the terms of the plea agreement to pay civil restitution to the United States for (1) $136,529 in billings she made to the OWCP on various other dates in 2008 and 2009 on which she did not provide in-person psychological services and (2) $184,398 in billings to the OWCP in which she improperly billed CPT codes.
The four-month prison sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer also sentenced the defendant to a three-year period of supervised release. The court ordered that the first six months of Weil’s supervised release will be served in home detention. The defendant was ordered to begin serving the sentence on July 24, 2015.
Assistant U.S. Attorney Kyle F. Waldinger is prosecuting the case with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the United States Postal Service-Office of Inspector General.
Baltimore Heroin Dealer Exiled to 12 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Steven Andrew Young, age 39, of Baltimore, today to 12 years in prison followed by four years of supervised release, after Young pleaded guilty today to conspiracy to distribute and possession with intent to distribute heroin.
The plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, from at least January to May 2014, Young obtained large quantities of heroin which he and others broke down and packaged for street-level distribution. Law enforcement officers saw Young using a vehicle during suspected drug transactions, and saw Young selling drugs out of a home on Greencrest Road in Baltimore.
On May 23, 2014, investigators executed search warrants for the vehicle and house, and seized a loaded semi-automatic handgun, two plastic bags containing approximately 47 grams of heroin, 3,700 empty gelatin capsules used to package heroin for street-level distribution, and several large bags of cutting agent.
During his participation in the drug conspiracy, Young admitted that he and his coconspirators distributed between 100 and 400 grams of heroin.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Christopher Flagg and Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Asset Manager Pleads Guilty to $5 Million Fraud SchemeRead the Press Release
Greenbelt, Maryland – Max Wagenblast, age 35, of Arlington, Virginia, pleaded guilty today to wire fraud in connection with a scheme to steal over $5 million from his company.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the his plea, Wagenblast was employed as an asset manager for a Bethesda company (the company) that was the second largest Special Servicer of commercial real estate mortgages in the United States. As a Special Servicer, the company was responsible for administering defaulted commercial mortgage loans and the real estate securing foreclosed loans. The company performed this service on behalf of the Real Estate Mortgage Investment Conduit (“REMIC”) trust that held the mortgage loans on behalf of the certificate holders of the trust. In its capacity as a Special Servicer, the company collected borrower payments and property cash flow and remitted them to the REMIC trust, which was responsible for distributing those funds to the certificate holders. Wagenblast oversaw both the loans and properties that acted as security for the loans serviced by the company, including the application and utilization of funds generated by the properties he managed.
Wagenblast admitted that he redirected a portion of the funds collected from the properties he managed into the bank accounts of three limited liability companies he controlled. Those redirected funds should have been sent to the company and then forwarded to the REMIC trust bank accounts. Wagenblast obtained these funds in three ways: by sending fake invoices to the property managers and directing them to wire the funds for payment into one of the bank accounts Wagenblast controlled; by creating fake service contracts and again directing the property managers to wire the funds for payment into one of the bank accounts Wagenblast controlled; and by sending the property managers an email requesting that all wires in excess of $10,000 be sent to a bank account Wagenblast controlled.
The company conducted a search of Wagenblast’s work computer and found documents detailing the fraudulent activity, including a spreadsheet detailing each diverted funds transaction that listed the amount taken, the property from where the funds originated, the date of the transaction and the bank account into which the funds were directed. From September 2012 through September 2013, Wagenblast caused over $5 million to be wire transferred into bank accounts he controlled
Wagenblast faces a maximum sentence of 20 years in prison and a fine of $250,000 for wire fraud. U.S. District Judge Theodore D. Chuang scheduled his sentencing for July 20, 2015, at 11:00 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Anchorage Man Found Guilty of Multiple Drug Trafficking CrimesRead the Press Release
Anchorage, Alaska-Acting U.S. Attorney Kevin R. Feldis announced today that a jury has found an Anchorage man guilty of two drug trafficking crimes based on his efforts to distribute methamphetamine in June and October of 2014.
Boonchan Yang, a/k/a “Chowmein,” 22, of Anchorage, Alaska, was convicted by the jury after only an hour of deliberation. He was found guilty first of distributing $1100 worth of methamphetamine on June 19, 2014. Four months later, on October 3, 2014, Yang was involved in another drug sale for an entire ounce of methamphetamine. The jury convicted him of felony possession with the intent to distribute as a result of this conduct.
The evidence at trial showed that on June 19, 2014, Yang arranged to sell an informant half an ounce of methamphetamine and an AK-47. Text messages and recorded telephone conversations played at trial captured Yang arranging the deal. Law enforcement also videotaped the deal itself, which allowed the trial jury to actually watch a movie of Yang committing the crime.
On October 3, 2014, Yang was again involved in drug trafficking activity. On that day, the evidence at trial showed that Yang brought an ounce of methamphetamine to a store parking lot in Anchorage intending to sell it for $1700. When he was confronted by law enforcement, Yang tried unsuccessfully to hide the drugs inside the car where he was sitting. Inside the car, he also had dime baggies used for drug distribution and a digital scale.
Senior United States District Court Judge H. Russel Holland presided over the trial. Judge Holland scheduled Yang’s sentencing for 9:00 a.m. on July 7, 2014. Yang faces a mandatory minimum sentence of five years on the counts of conviction and a statutory maximum sentence of up to 40 years.
In announcing the sentence, Mr. Feldis praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, IRS Criminal Investigations, and the Anchorage Police Department, whose investigative efforts led to Yang’s conviction.
29 Individuals Indicted for Drug Trafficking in Patillas, PRRead the Press Release
SAN JUAN, Puerto Rico – On April 16, a federal grand jury in the District of Puerto Rico returned an indictment against 29 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation, with the collaboration of the Puerto Rico Police Department- Guayama Strike Force.
The 29 defendants are: Ángel Morales-De Jesús, aka “El Gordo;” Javier Fernández-Morales, aka “Pelota;” Javier Fernández-Morales, aka “Pelota;” Jaime Rosario-Valdés, aka “Burro;” Luis Acevedo-Torres, aka “Chiquitin;” Jesús M. González, aka “Randy;” Gilberto Díaz-Torres, aka “Gilbert;” Jorge L. García-Cruz, aka “Gatillo;” Hermes Torres-Vázquez, aka “Sein;” Félix Javier De Jesús-Negrón, aka “Javi Moyi;” Misael Díaz-Torres, aka “Misa;’ Eric Díaz-Torres, aka “Buho;” Charlie M. Ocasio-Ayala; Brian O. Fontanez-Sanabria; Omar De Jesús-Negrón, aka “Omar Moyi;” Jaset Garrafa-Lebrón; Kenneth O. Ayala-Guevara, aka “Guavi;” Nadel Garrafa-Lebrón; Edwin Xavier Pirela-Amaro, aka “Plo Plo;” Josué M. Rivera-Lebrón, aka “Yauti;” Roberto Martínez-Rivera, aka “Picu;” José M. Del Valle-Sánchez, aka “Jossie;” Eric J. Correa-Rodríguez; Wilfredo Montañez, aka “Wilfre;” Miguel Velázquez-Sánchez, aka “Micky;” Jean González-López; Héctor E. Navarro-Santiesteban, aka “Pepito;” Luis A. Laboy-Sánchez, aka “Tony Pitufo;” Alexis Vega-Maldonado; and Ricardo Romero-Baerga, aka “Ricky Dominiqui.”
The indictment alleges that beginning in 2010, the organization distributed crack, cocaine, marihuana and prescription drugs within 1,000 feet of a real property comprising the Public Housing Projects Villas del Caribe, Villa Real and Esmeralda del Sur, Calle Las Flores, El Pueblito, La Quebrada and the Providencia Ward located in the Municipality of Patillas, all for financial gain and profit.
The 29 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: three leaders/drug point owners/drug point administrators; three runners; 23 sellers; enforcers and facilitators. Nine of the defendants are facing one count of possession of firearms, including “high power” rifles, in furtherance of drug trafficking crimes.
It was further a part of the manner and means of the conspiracy that some of the defendants and their co-conspirators would collect money from the members of the organization in order to pay for weapons and for bail when members of the organization were arrested.
Assistant U.S. Attorneys Teresa Zapata-Valladares and Seth Erbe are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty beyond a reasonable doubt.
21 April 2015
Waycross Man Sentenced to 25 Years for Production of Child Pornography and Coercion and Enticement of A MinorRead the Press Release
Waycross, GA: Donnel Cornelius Shavers, 23, of Waycross, Georgia, was sentenced yesterday to 25 years in prison by Chief United States District Court Judge Lisa Godbey Wood following his pleas of guilty to charges of production of child pornography and the coercion and enticement of a child under the age of 18 to engage in illegal sexual activity. The prison term will be followed by a life term of supervised release. Shavers will also be required to register as a sex offender upon his release from prison. Shavers pleaded guilty to the offenses on September 2, 2014.
United States Attorney Edward Tarver said, “This investigation again demonstrates the commitment of the U.S. Attorney’s Office to aggressively prosecute individuals who are involved in predatory and exploitative acts directed at children. Clearly, the conduct of this defendant was deplorable and damaging to his victims. We cannot and will not tolerate the types of offenses he committed. His pattern of predatory behavior as one of the many disturbing components of his criminal conduct and the lengthy punishment he received from the Court is completely justified.”
“HSI investigations involving child exploitation fall under Operation Predator, and this case is a clear demonstration of why we use the title of predator for those who seek to victimize the innocent,” said Ryan L. Spradlin, acting special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “The defendant in this case used social media to stalk his prey, enticed them to produce child pornography and then attempted to coerce them into meeting him so he could sexually assault them. Law enforcement has identified nearly a dozen victims of this scheme.”
Ware County Sheriff Randy F. Royal said, “I am proud of our investigator who began the initial investigation, which led to Mr. Shavers’ arrest. I am prouder still of the level of support and the spirit of cooperation between our agency and Homeland Security Investigations, which afforded the manpower and resources needed to broaden the scope of the investigation so that all the victims in this case will get the opportunity for justice.”
Evidence developed during the investigation revealed that Shavers communicated via Facebook with at least 10 minors. These communications led to the production of child pornography and the eventual coercion and enticement of several minor females to engage in sex acts with him.
This prosecution was the result of a joint investigation by the Ware County Sheriff’s Office and Homeland Security Investigations (HSI). This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorneys Daniel Crumby, Karl Knoche, and Joseph Newman prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Vancouver, WA Laser Technology Firm Settles Civil Claims it Improperly Received Government GrantsRead the Press Release
nLight Photonics, Inc. (nLight), a privately-held, Vancouver, Washington-based manufacturer of high performance diode and fiber lasers has agreed to pay $420,000 to resolve allegations that between 2004 and 2013, in violation of the False Claims Act, nLight received multiple government grants and contracts for which it did not legitimately qualify, announced Acting U.S. Attorney Annette L. Hayes. A joint investigation by Inspectors General for several of the impacted government agencies and other federal law enforcement agencies confirmed that nLight did not qualify for the government funding it received because of its ownership structure.
The investigation revealed that nLight successfully pursued funding under the Small Business Innovation Research (SBIR) program from the Army, Navy, Air Force, NASA and Department of Energy to further develop its laser technology, which has military and related applications of interest to various government agencies. During the relevant time period, firms seeking SBIR program funding were required, among other things, to be owned and controlled at least 51 percent by individuals or by another business concern that itself was owned and controlled at least 51 percent by individuals. Despite numerous certifications to government agencies that it was SBIR program-eligible, nLight was more than 51 percent owned by multiple businesses, including several venture capital firms, rendering it ineligible, during the period covered by today’s settlement, for the government funding it received.
“There is no tolerance for false certifications when asserting eligibility to participate in SBA programs,” said Inspector General Peggy E. Gustafson of the U.S. Small Business Administration (SBA). “I want to thank the U.S. Department of Justice for its dedication to reaching a settlement in this case.”
“The Department of Energy endeavors to provide contracts and grants to deserving small businesses that are eligible to participate in SBA’s Small Business Innovation Research and Small Business Technology Transfer programs,” said Inspector General Gregory H. Friedman. “Entities that falsely certify their eligibility corrupt the process. This joint investigation, which required cooperation among several agencies, demonstrates the government’s strong commitment to ensuring the integrity of the contracting and grant underwriting process.”
“This settlement is proof of the great work our agents do every day,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “This company tried to take advantage of a system in place to help small business, but our agents, with the help of our law enforcement partners, uncovered their contrivance.”
nLight initially flagged its ineligibility for the SBIR program in response to a request for information by an alert Department of Energy contracting officer overseeing both an nLight SBIR grant as well as an SBIR grant awarded to a company that nLight had acquired.
The claims resolved by today’s settlement are allegations only, and there has been no determination of nLight’s legal liability for the conduct at issue. Further, there is no indication that nLight did not adequately perform the contracts and grants it was ineligible to receive.
This matter was investigated by the SBA’s Office of Inspector General, the Department of Energy Office of Inspector General, the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Army Criminal Investigation Command, the Naval Criminal Investigative Service and the NASA Office of Inspector General, with the assistance of the Defense Contract Audit Agency.
The settlement was negotiated by Assistant U.S. Attorney Harold Malkin. Mr. Malkin heads the Affirmative Civil Enforcement section of the U.S. Attorney’s Office, Western District of Washington. The Department of Justice Civil Division’s Commercial Litigation Branch assisted in this matter.
United States Files Suit against Michaels Stores Inc. for Failing to Report Serious Safety Hazard in Shattering Glass VasesRead the Press Release
Permanent Injuries Suffered by Consumers
The Department of Justice and the Consumer Product Safety Commission (CPSC) jointly announced today the filing of a complaint against Michaels Stores Inc. and its subsidiary Michaels Stores Procurement Co. Inc. in the U.S. District Court for the Northern District of Texas.
Michaels is a publicly held corporation headquartered in Irving, Texas. In 2013, Michaels had more than $4.5 billion in sales and 50,600 employees. It is the largest arts and crafts specialty retailer in North America.
The complaint charges that Michaels knowingly violated the reporting requirements of the Consumer Product Safety Act with respect to glass vases that shattered in consumers’ hands, sometimes as the consumer lifted the vase from the Michaels Stores shelf. As set forth in the complaint, Michaels imported and sold the vases, which caused serious injuries to consumers, including lacerations requiring stitches, permanent nerve damage and surgery to repair severed tendons. The complaint, filed by the Department of Justice on behalf of the CPSC, seeks civil penalties and permanent injunctive relief.
“Michaels allegedly failed to report critical information about the safety of one of its products,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “The Department of Justice will continue to protect the public against companies that put profits over safety.”
In addition to failing to notify the CPSC “immediately” as required by law, the government also alleges that when Michaels finally notified the CPSC, it did so in a misleading way. Michaels’ report conveyed the false impression that Michaels did not import the vases, even though Michaels should have known it was the importer. The complaint asserts that Michaels’ misrepresentation allowed Michaels to avoid legal responsibility for the recall of the vases as well as any obligation to pay costs and expenses associated with a recall.
“We believe that Michaels chose to profit from selling defective vases that put people at risk, instead of following the law and immediately reporting that their vases were shattering and causing great harm to consumers,” said CPSC Chairman Elliot F. Kaye. “To protect the public, companies are required to report potential product hazards and risks to CPSC on a timely basis. That means within 24 hours, not more than a year as in Michaels’ case.”
Michaels sold the vases in its stores from 2006 to 2010. According to the complaint, the vases pose a safety hazard because their walls are too thin to withstand the pressure of normal handling and, as a result, they shatter in consumers’ hands. The complaint alleges that beginning as early as November 2007 and continuing for more than two years, Michaels received numerous consumer complaints that the vases were unsafe because they shattered during normal use and caused serious injuries. The vases were recalled in September 2010.
The matter is being handled by Trial Attorney Kerala Thie Cowart of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Lisa Hasday of the Northern District of Texas and Patricia Vieira of the CPSC’s Office of the General Counsel.
The claims made in the complaint are allegations only, and there has been no determination of liability.
Twenty-Three Members of Violent Drug Trafficking Organization IndictedRead the Press Release
Federal, state and local law enforcement partners made 18 arrests and searched more than a dozen locations in connection with a two year investigation into a violent drug trafficking organization, announced Acting U.S. Attorney Annette L. Hayes. The organization distributed cocaine, heroin and methamphetamine across a wide swath of the greater Seattle metro area. The defendants are scheduled to appear in U.S. District Court in Seattle at 2:00 today.
“These defendants preyed on our community by supplying drugs in neighborhoods across Seattle, and demonstrated a willingness to use violence where it served their purposes,” said Acting U.S. Attorney Annette L. Hayes. “Their criminal activities included hiding weapons and using violence in homeless encampments located along Interstate-5.”
According to the indictment and court records, beginning in February 2013 law enforcement authorities used a variety of tools including telephone wire taps and confidential sources to infiltrate and interdict this drug organization. The investigation determined that the organization distributed approximately 15-20 kilos of cocaine, 10-15 kilos of heroin and 5 kilos of methamphetamine per month. In addition, on multiple occasions members of the drug trafficking organization were arrested with firearms. In one instance a conspirator was arrested with a stolen firearm as he was leaving the ‘Jungle’ homeless encampment. During the investigation law enforcement seized drugs and cash including a September 2014 seizure of two kilograms of cocaine, one pound of methamphetamine and $14,000 cash from a rental car. In March 2015, investigators seized more than $32,000 from a hidden compartment in another vehicle.
Drug activity associated with the organization occurred over a wide geographic area with drug sales occurring at homes and near businesses in Seattle, Renton, Shoreline and Kent. The drug transactions occurred in areas ranging from the parking lot of Viet Wah supermarket near South Jackson Street, the parking lot of Dick’s Drive-In on NE 45th Street, the parking lot of a gas station on Beacon Hill, and at a motel in Tukwila.
“Law enforcement partnerships made today’s operation a success,” said Special Agent in Charge Frank Montoya, Jr., of the FBI’s Seattle division. “Working together in task forces, we tracked these defendants on both sides of Lake Washington, up and down Interstate 5, and even to other states. Our joint resources enabled us to identify key elements of the organization and effectively shut it down.”
“This operation was the result of close cooperation and collaboration between several Federal, State, and Local law enforcement agencies and prosecutors, including investigators from the Eastside Narcotics Task Force and the FBI’s Safe Streets Task Force,” said Bellevue Police Chief Steve Mylett. “I am very proud of the hard work of these dedicated law enforcement professionals. As a result of this large scale operation, a well-organized drug trafficking operation has effectively been dismantled, and the entire Puget Sound region is safer.”
Those arrested on the indictment today include:
Son V. Tran, 28, of Seattle, Washington
Cuong T. Le, 57, of Federal Way, Washington
Niem H. Doan, aka “Linh,” 36, of Everett, Washington
Huy V. Tran, 39, of Seattle, Washington
Patrick Wong, aka “Minh” 48, of Seattle, Washington
Son T. Nguyen, aka “Nine Fingers” aka “Kim,” 42, of Seattle, Washington
Tam C. Nguyen, aka “Andy,” 39, of Tukwila, Washington
Brieanna K. Carlson, 27, of Seattle, Washington
Yen T. Vu, 54, of Seattle, Washington
Phuong A. Nguyen, aka “P,” 42, of Kent, WashingtonVinh Q. Nguyen, 29, of Seattle, Washington
Giang T. Ngo, aka “Uncle Jack,” 51, of Burien, Washington
Phuong H. Nguyen, aka “LJ,” 30, of Kent, Washington
Kenneth W. Thomas, 55, of SeaTac, Washington
Donald K. Jordan, aka “Looney,” 34, of Seattle, Washington
Donald C. Scholoff, 47, of Edmonds, Washington
Steven J. Connell, 47, of Seattle, Washington
Kimberle S. Alojasin, aka “Nguyen,” 56, of South King County, WashingtonThis was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF). The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Jeffrey Backhus.
Twenty-Seven South Florida Residents Charged in Marriage and Immigration Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that Inaldo Chavez, 57, of Hialeah, Caridad Baez, 50, of Hialeah, Masiel Puron, 33, of Marathon, Elides Rodriguez Vallejo, 42, of Marathon, Claudio Catapano, 49, of Argentina, Naile Yubero Carrasco, 30, of Hialeah, Enrique Giglio, 32, of Venezuela, Duniesky Alvarez Perez, 26, of Homestead, Angela Cuellar Velandia, 29, of Colombia, Marcos Vila, 25, of Homestead, Olena Pokotiuk, 27, of Ukraine, Dayana Trigueiro, 21, of Homestead, Vladimir Popa, 28, of Moldova, Yinet Hernandez Martinez, 31, of Weston, Camilo Benavides Prieto, 30, of Colombia, Daylin Ramirez Pereira, 24, of Marathon, Igor Singereanu, 29, of Moldova, Jennifer Gutierrez, 22, of Marathon, Serghei Serdiuc, 27, of Moldova, Suset Nodarse Gonzalez, 23, of Coral Gables, Eldar Ben Atar, 28, of Israel, Kassandra Perdomo, 21, of Miami, Efrain Basaldella Landa, 24, of Venezuela, Elio Martinez Alan, 44, of Hialeah, Maria Pinto Camacho, 48, of Venezuela, Jenny Gonzalez, 24, of Miami, and Ido Sharir, 25, of Israel, have been charged by federal indictment with conspiracy to commit marriage fraud and related immigration fraud charges.
According to the indictment, between May 2011 and February 2014, organizers, Chavez and Baez, and recruiters, including Puron, arranged for United States citizens and lawful permanent residents to enter into fraudulent marriages with aliens for the purpose of evading the immigration laws of the United States. Chavez, Baez, and Puron charged the aliens a fee to arrange the fraudulent marriages, notarized the fraudulent marriage licenses, completed the necessary immigration paperwork, and prepared the co-conspirators for their interviews with United States Citizenship and Immigration Services. The United States citizen and lawful permanent resident co-conspirators also charged the aliens a fee to enter into the fraudulent marriages. Aliens Catapano, Giglio, Velandia, Pokotiuk, Popa, Prieto, Singereanu, Serdiuc, Atar, Landa, Camacho, and Sharir, all paid a fee to enter into fraudulent marriages with United States citizens Gutierrez and Jenny Gonzalez, and lawful permanent residents Vallejo, Carrasco, Perez, Vila, Trigueiro, Martinez, Pereira, Suset Gonzalez, Perdomo, and Alan. These fraudulent marriages took place in the Southern District of Florida. In addition, during the time that they were arranging the fraudulent marriages, Chavez and Baez personally attempted to fraudulently obtain naturalization.
United States Attorney Wifredo A. Ferrer stated, “Marriage and immigration fraud is a serious crime that seeks to undermine the integrity and fairness of our immigration system. Our Office will continue to work with our law enforcement partners to investigate these crimes and prosecute those individuals who seek to perpetrate fraudulent immigration schemes.”
“Today’s arrests send a clear message that we will not tolerate individuals defrauding our immigration system for their own personal or financial gain,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami.” HSI will continue to work to ensure that those who attempt to defraud the government will be prosecuted.”
Mr. Ferrer commended the investigative efforts of ICE-HSI and U.S. Citizenship and Immigration Services, who provided significant and valuable support to this investigation. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
An indictment is only an accusation, and the defendants are presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Travelling minister and Georgia man indicted for their roles in $4.8 million tax fraud conspiracyRead the Press Release
An 11-count criminal indictment was filed charging a travelling minister from Arkansas and a Georgia man for their roles in a $4.8. million tax refund scam, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Allen D. Miles, 57, of Little Rock, Arkansas, and Ve Sayavong, 37, of Jonesboro, Georgia, were each charged with one count of conspiracy to commit wire fraud and 10 counts of wire fraud.
The indictment alleges that Miles and Sayavong, acting together with Zinara Highsmith -- who has previously pleaded guilty for her role in the conspiracy -- engaged in a false tax refund scheme in which approximately 2,750 false income tax returns were filed, netting false income tax refunds of approximately $4.8 million.
Miles, the travelling minister, obtained personal identification information from congregants by telling them that he could help them obtain money from an alleged government stimulus fund program. Miles did not tell congregants that income tax returns were going to be filed on their behalf. After he obtained the information, Miles forwarded it to Highsmith, and then Highsmith, Sayavong and others created the false income tax returns that generated refunds based on certain credits for which the taxpayers did not qualify, like the American Opportunity Credit, Making Work Pay Credit, and Earned Income Credit, according to the indictment.
For each refund, Miles collected a $125 commission and Highsmith received $275, from which she paid Sayavong and others; the taxpayers received the balance. Miles received approximately $240,000 and Sayavong received $178,000 for their efforts in the refund scam, which operated between March and July 2011, according to the indictment.
"These defendants were part of a scheme in which they took advantage of their victims' faith and tax credits designed to help the least among us," Dettelbach said.
“This investigation uncovered a fraudulent scheme that attempted to generate millions of dollars,” Enstrom said. “These defendants used deceit and fraud to line their pockets with stolen federal tax refunds and they will be held accountable for their actions.”
If convicted, the defendant’s sentence will be determined by the court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer, following an investigation by the Internal Revenue Service – Criminal Investigations.
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 the defendant guilty beyond a reasonable doubt.
Topeka Man Sentenced for Fraud Against USDA Rural DevelopmentRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced Monday to a month in federal prison and ordered to pay $38,000 in restitution to the U.S. Dept. of Agriculture, U.S. Attorney Barry Grissom said.
Terry Gene Hummer, 64, Topeka, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted he obtained loans from USDA Rural Development for developing housing in rural areas. He provided false information to Rural Development representing there were substantial funds on deposit in reserve accounts when in fact he had converted most of those funds for his own use. In one instance in 2009, he made false representations that a reserve account contained $29,526 when in fact there was only 69 cents in the account.
Grissom comended the U.S. Department of Agriculture – Office of Inspector General, and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Toledo woman charged for home loan-modification schemeRead the Press Release
A two-count criminal information was filed charging Toledo woman with participating a fraudulent home loan modification conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Constance Kanary, 52, was charged with one count of conspiracy to commit mail fraud and one count of mail fraud.
Kanary operated a purported loan-modification operation called Making Home Affordable USA (MHAUSA) from March 2012 through April 2013. The business was primarily located at 120 10th Street in Toledo and used other names, including Federal Home Savings Solutions, National Mortgage Relief Center and others, according to the information.
Kanary was a sales agent at the company. As part of her job, she contacted homeowners in need of loan modifications and encouraged them to participate in the company’s “Home Saver Program” in which they were told to stop paying their mortgages and instead pay a percentage to MHAUSA to demonstrate they could reliably make reduced monthly payments. The participants were also told there was a flat fee, between $495 and $795, for the service, according to the information.
Kanary deposited these monies into an account at Bank of America and spent the money on the scheme’s expenses and made cash withdrawals from the account, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case were the Federal Bureau of Investigation's Toledo Office and the U.S. Department of Housing and Urban Development -- Office of Inspector General. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Orthodox Jewish Rabbis Convicted of Conspiracy to Kidnap Jewish Husbands in Order to Force Them to Consent to Religious DivorcesRead the Press Release
TRENTON, N.J. - Three Orthodox Jewish Rabbis were convicted at trial today for conspiring to kidnap Jewish men in an effort to force them to give their wives religious divorces, referred to as “gets,” U.S. Attorney Paul J. Fishman announced.
Rabbis Mendel Epstein, 69, of Lakewood, New Jersey; Jay Goldstein a/k/a “Yaakov,” 60, of Brooklyn, New York; and Binyamin Stimler, 39, of Brooklyn, New York, were each convicted on Count One of the indictment, conspiracy to commit kidnapping. Goldstein and Stimler were additionally convicted on Count Five of the indictment, attempted kidnapping. Epstein’s son, David Epstein a/k/a “Ari,” 40, of Lakewood, New Jersey, was acquitted on three counts. The jury deliberated three days following an eight-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
On Dec. 1, 2009, in Lakewood, an Orthodox Jewish man, Israel Markowitz, was assaulted, placed in a van, tied up, beaten and shocked with a stun-gun until he agreed to give his wife a get.
On Oct. 16, 2010, in Lakewood, another Orthodox Jewish man, Ysrael Bryskman, was assaulted, tied up and beaten until he agreed to give his wife a get.
On Aug. 22, 2011, in Brooklyn, New York, another Orthodox Jewish man, Usher Chaimowitz, and his roommate, Menachem Teitlebaum, were assaulted, tied up, and beaten until Chaimowitz agreed to give his wife a get.
Based upon these incidents, the FBI began an undercover operation in August 2013 in which two FBI agents posed as a wife who was seeking a get from her recalcitrant husband, and her brother, who was trying to help her obtain the get. Over the next several weeks, the undercover agents had multiple recorded phone calls and in-person meetings with defendant Mendel Epstein. In those meetings, Mendel Epstein arranged to have his team kidnap the husband at a warehouse in exchange for $60,000.
On October 9, 2013, Goldstein, Stimler and six other individuals, traveled from New York to a warehouse in Middlesex County, New Jersey, to execute the planned kidnapping of the husband to force him to give the get. They arrived at the warehouse in two dark minivans shortly after 8:00 p.m. Some of the kidnap team members put on masks and entered the warehouse office with the undercover agent posing as the brother. The remaining kidnappers walked around the outside with flashlights. Over the next 15 minutes, members of the kidnap team went in and out of the warehouse office wearing disguises, including ski masks, Halloween masks and bandanas. They discussed their plan for kidnapping and assaulting the husband, how they planned to grab him, pull him down, tie him up, and take his phone. Members of the kidnap team brought with them to the warehouse a 30-foot nylon rope, a blindfold, vodka, license plates they had switched out, and items used to ceremonially record the get. At 8:23 p.m., law enforcement moved into the warehouse office and arrested the eight men, including Goldstein and Stimler. Mendel Epstein was arrested at his Brooklyn home the same night.
The count of conspiracy to commit kidnapping carries a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The count of attempted to commit kidnapping carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 15, 2015. Nine other individuals previously entered guilty pleas in connection with this conspiracy.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the Lakewood Police for the investigation leading to today’s verdicts.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah M. Wolfe of the U.S. Attorney’s Office in Trenton.
Defense counsel:
Mendel Epstein: Robert G. Stahl Esq. and Laura Gasiorowski Esq., Westfield, New Jersey
Jay Goldstein: Aiden O’Connor Esq., Hackensack, New Jersey
David Epstein: Henry Mazurek Esq., New York
Binyamin Stimler: Nathan Lewin Esq., Washington, D.C. and Gedalia Stern
epstein_mendel_et_al._amended_indictment.pdf
Thomaston Man Pleads Guilty to Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that DUSTIN WHITTEN, 32, pleaded guilty on Friday, April 17, 2015, before U.S. District Judge Janet Bond Arterton in New Haven to conspiracy to commit mail and wire fraud.
According to the documents and statements presented in Court, in May 2009, an alleged co-conspirator of WHITTEN’s transferred to WHITTEN a residential property located in Old Forge, New York, while the co-conspirator continued to use the property and pay the mortgage and maintenance expenses. At the time, the co-conspirator was being sued by a creditor who was seeking to collect a debt and identify the co-conspirator’s assets. In March 2011, WHITTEN and the co-conspirator made arrangements for an insurance company to issue a policy on the New York property in WHITTEN’s name. On July 4, 2011, after a bankruptcy court meeting about compensating the co-conspirator’s creditors, the New York property was destroyed in a fire. In September 2011, WHITTEN swore out an insurance claim on the property, representing himself as the owner and seeking compensation of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire.
The claim was eventually denied by the insurance company. WHITTEN acknowledged that the co-conspirator, and not WHITTEN, was the true owner of the property, and that a goal of the scheme was to shield the anticipated insurance payout from the co-conspirator’s creditors.
WHITTEN is scheduled to be sentenced on July 13, 2015, before Judge Arterton. He faces maximum penalties of twenty years of imprisonment and a fine of $250,000. Other defendants in the case are scheduled to commence trials on June 4 and August 3, 2015.
This matter is being investigated by the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Henry K. Kopel and Michael J. Gustafson.
Texas-Based Citizens Medical Center Agrees to Pay United States $21.75 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Citizens Medical Center, a county-owned hospital in Victoria, Texas, has agreed to pay the United States $21,750,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
“Any type of false claim or improper behavior under our health care fraud laws are serious allegations that will not be taken lightly,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “The settlement announced today represents the effectiveness of our continuing efforts and an example of our priorities in this arena.”
The settlement announced today resolved allegations that the hospital provided compensation to several cardiologists that exceeded the fair market value of their services. The settlement also resolved allegations that the hospital paid bonuses to emergency room physicians that improperly took into account the value of their cardiology referrals. The United States contended that these agreements violated the Stark Statute and the False Claims Act. The Stark Statute restricts the financial relationships that hospitals may have with doctors who refer patients to them.
The allegations settled today arose from a lawsuit filed by three whistleblowers, Dakshesh “Kumar” Parikh, Harish Chandna and Ajay Gaalla, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers will collectively receive $5,981,250 from the recoveries announced today.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The case, United States ex rel. Parikh, et al. v. Citizens Medical Center, et al., Case No. 6:10-cv-64 (S.D. Tex.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Department of Health and Human Services’ Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Texas-Based Citizens Medical Center Agrees to Pay U.S. $21.75 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
VICTORIA, Texas - Citizens Medical Center, a county-owned hospital in Victoria, has agreed to pay the United States $21,750,000 to settle allegations that it violated the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today.
“Any type of false claim or improper behavior under our health care fraud laws are serious allegations that will not be taken lightly,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “The settlement announced today represents the effectiveness of our continuing efforts and an example of our priorities in this arena.”
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because those relationships can alter a physician’s judgment about the patient’s true health care needs and drive up health care costs for everybody,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable.”
The settlement announced today resolved allegations that the hospital provided compensation to several cardiologists that exceeded the fair market value of their services. The settlement also resolved allegations that the hospital paid bonuses to emergency room physicians that improperly took into account the value of their cardiology referrals. The United States contended that these agreements violated the Stark Statute and the False Claims Act. The Stark Statute restricts the financial relationships that hospitals may have with doctors who refer patients to them.
The allegations settled today arose from a lawsuit filed by three whistleblowers, Dakshesh “Kumar” Parikh, Harish Chandna and Ajay Gaalla, under the qui tam provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistleblowers will collectively receive $5,981,250 from the recoveries announced today.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case, United States ex rel. Parikh, et al. v. Citizens Medical Center, et al., Case No. 6:10-cv-64 (S.D. Tex.), was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Texas and the U.S. Department of Health and Human Services’ Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.