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Tuesday 24 February 2015
Former Township Tax Collector Charged Federally with Theft of $300,000 in Public FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Criminal Information was filed today against Melissa Ann Arnold, 46, of York.
According to United States Attorney Peter Smith, the Information alleges that during 2008 and 2009, Arnold stole more than $300,000 from tax payments made by citizens to Spring Garden Township, York County. Arnold was the Treasurer and Tax Collector for Spring Garden Township from 1995 until October 2009. Arnold was allegedly able to steal the tax payments because many of the checks were written out to her and, rather than deposit the checks into the Township’s account, she deposited them into her personal account.
The government also filed a plea agreement with the defendant which must be approved by the court. York County submitted an insurance claim for the funds and received full repayment. Arnold has entered into an agreement with the insurance company to pay back the full amount and has already paid part of the amount due.
The case was investigated by the Federal Bureau of Investigation with assistance of the Pennsylvania State Police and Spring Garden Township Police Department, and is being prosecuted by Assistant U.S. Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Owner of Durable Medical Equipment Company Pleads Guilty in $5 Million Health Care Fraud SchemeRead the Press Release
A Miami man pleaded guilty today to health care fraud charges in connection with a $5 million scheme to defraud Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office, Special Agent in Charge Mike Fields of HHS-OIG’s Dallas Field Office, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Angel M. Mirabal, 62, of Miami, Florida, pleaded guilty to one count of conspiracy to commit wire fraud and health care fraud before U.S. District Judge Marcia G. Cooke of the Southern District of Florida. A sentencing hearing is scheduled for May 6, 2015.
In connection with his guilty plea, Mirabal admitted that he was the owner, president and manager of Quick Solutions Medical Supplies Inc. (Quick Solutions), a durable medical equipment (DME) supply company located in Houston, Texas. Mirabel further admitted that from April 2010 through July 2013, he and his co-conspirators operated Quick Solutions for the purpose of billing the Medicare program for, among other things, expensive DME that was medically unnecessary and in many instances not provided to the Medicare beneficiaries. Indeed, many of the beneficiaries who purportedly received the DME resided hundreds of miles away in Miami.
From June 2011 through February 2012, Quick Solutions submitted approximately $5 million in fraudulent claims, and Medicare paid approximately $587,900 for these claims.
This case was investigated by the FBI, HHS-OIG and Texas Attorney General’s Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Former New York City Deparment of Sanitation Officer Sentenced in Manhattan Federal Court to 18 Months in Prison for Conspiring to Distribute Firearms and Stolen Goods and Sale of A FirearmRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTHONY SANTIAGO, a former New York City Department of Sanitation Codes Officer, was sentenced today to 18 months in prison for engaging in a scheme involving the illegal interstate transport of firearms and stolen goods and the illegal sale of a firearm interstate. SANTIAGO was sentenced today in Manhattan federal court by U.S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney PREET BHARARA said: "Anthony Santiago was a member of a conspiracy of corrupt law enforcement officers who not only betrayed their oaths to uphold the law, but exploited their positions as peace officers to carry out their gun-running and smuggling crimes. Participating in and actively recruiting others to a conspiracy that put illegal firearms on the street was the ultimate betrayal of honest police officers and citizens. Now Santiago will go to prison for it."
According to the Complaint, the plea agreement, the Information, and statements made in court:
From September 2010 to October 2011, SANTIAGO, who had been employed by the New York City Department of Sanitation as a Codes Officer at the time he committed the offenses, was recruited to participate and did participate in the transportation of firearms interstate and what he believed were stolen goods, including slot machines, cigarettes, and other merchandise, across state lines. SANTIAGO was an active participant in the conspiracy and an integral member of the team who recruited others to join the conspiracy and helped transport across state lines firearms, including three M-16 rifles, one shotgun, and 16 handguns, the majority of which had been defaced to remove or alter the serial numbers; numerous slot machines; and thousands of cartons of cigarettes, as well as various counterfeit merchandise. SANTIAGO also participated in the conspiracy to sell his shotgun interstate. In total, the goods that SANTIAGO and his co-conspirators illegally transported carried a street value of approximately $1 million.
SANTIAGO was recruited to join the conspiracies in December 2010 by the leader and organizer of the conspiracies, William Masso, who at the time of the conspiracies was an active duty Police Officer with the New York City Police Department (“NYPD”). SANTIAGO specifically discussed with Masso and their co-conspirators using their law enforcement credentials and knowledge of law enforcement in preparing for and carrying out the illegal transports. For example, in a meeting in March 2011 attended by SANTIAGO, Masso explained that the men should carry their law enforcement badges during the operation and, if stopped, say they were police officers working off-duty to deliver items that had been purchased at an auction. The group also discussed using their specialized knowledge as law enforcement officers in determining the ideal vehicle to rent to transport the goods. In addition, SANTIAGO recruited others to join the conspiracy, specifically recruiting at least one other law enforcement officer, and had frequent calls with Masso to help plan the illegal transports. In total, SANTIAGO was paid $26,000 for his role in the transport of the firearms and purportedly stolen goods.
SANTIAGO was an active participant in the conspiracies, participating in and helping to organize multiple trips. The trips in which SANTIAGO participated included two trips to transport purportedly stolen slot machines from Atlantic City to New York, trips to transport hundreds of cases of purportedly stolen cigarettes from New Jersey to New York, and the final trip during which 20 firearms were transported interstate. During one such transport, SANTIAGO was the co-conspirator who suggested buying a bolt cutter to break locks on trucks parked outside a warehouse in Virginia so that the team could steal the cigarettes stored in those trucks and then transport those stolen cigarettes back to New York. SANTIAGO also conspired to sell his shotgun to an undercover law enforcement officer for $2,000, and discussed with Masso and another co-conspirator the possibility of obtaining handguns and transporting them interstate. During his guilty plea, SANTIAGO admitted that he had knowingly transported what he believed were stolen cigarettes, slot machines, and other merchandise across state lines, had willfully transported firearms across state lines, and intentionally sold a shotgun to an individual who he believed resided in another state.
In addition to the prison term, Judge Batts sentenced SANTIAGO, 48, of Little Egg Harbor, New Jersey, to two years of supervised release and ordered him to pay a $300 special assessment fee. SANTIAGO also has agreed to a money judgment of $26,000 representing his share of the crime proceeds, and has relinquished his interests in guns seized from him at the time of his arrest.
SANTIAGO originally was charged in a four-count Complaint along with 11 co-conspirators, many of whom were NYPD Police Officers at the time of the offense. All of the defendants have now pled guilty and been sentenced. A chart containing the status of each defendant is attached.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Internal Affairs Bureau of the NYPD.
This case is being handled by the Office's Public Corruption and Complex Frauds & Cybercrime Units. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.
Click here to view chart(s)
Former Delta Air Lines Employee Sentenced to Six Years for His Role in Defrauding Delta and Northwest Air Lines of More Than $36 MillionRead the Press Release
ATLANTA - Paul Anderson has been sentenced to six years and eight months in prison for his role in a scheme to defraud Northwest and Delta Air Lines of more than $36 million. Anderson and his co-defendant Michael Yedor submitted false invoices to both airlines, for work that was not performed but was billed for by a company allegedly owned by Yedor.
“The defendant’s lucrative and long-running scheme came crashing down when Delta uncovered his deception and informed law enforcement,” said Acting U.S. Attorney John Horn. “For more than a decade, Anderson used his position of trust within these airline companies to steal millions of dollars from the airlines for himself and a codefendant.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains well positioned and committed toward investigating those individuals who would engage in such complex wire fraud based schemes that generate high loss amounts as seen in this case. The sentencing of Mr. Anderson brings to a close a lengthy fraud scheme that spanned almost 15 years and targeted two major airlines.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Anderson had been an employee of Northwest Airlines since 1979. In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became a managerial employee of Delta, working in its Minneapolis, Minnesota office.
From at least 1999 through 2013, Anderson and co-defendant Michael Yedor engaged in a scheme to defraud Northwest and later, Delta, by submitting numerous false invoices on behalf of a company purportedly owned by Yedor, Airborne Voice and Data. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data, when in fact both Anderson and Yedor knew that Yedor’s company had not provided any such goods or services.
In order to receive payment for the false invoices, Yedor sent the invoices to Anderson, who had the authority to approve them for payment. Once Anderson approved the invoices, falsely indicating that the goods or services had been received, the airlines issued payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The defendants acknowledged that they received more than $36 million from the airlines during the scheme.
Anderson, 57, of Apple Valley, Minnesota, was sentenced by U.S. District Judge Timothy Batten to six years, eight months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million and to forfeit his individual retirement accounts. Anderson was indicted on June 10, 2014, and pleaded guilty on September 15, 2014, to conspiracy to commit mail fraud.
Co-defendant Michael Yedor, 62, of Los Angeles, California, was sentenced on January 9, 2015, by U.S. District Judge Timothy Batten to ten years in prison, followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million, in addition to a personal money judgment of more than $36 million, and forfeiture of his interest in an array of real properties and luxury goods, including a Beverly Hills mansion and a 71.9 foot yacht.
Delta Air Lines cooperated fully with the investigation.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny Turner are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Correctional Guard Sentenced for Conspiracy to Smuggle Heroin, Methamphetamine and Other Contraband into the Taft Correctional FacilityRead the Press Release
FRESNO, Calif. — Ramon Cano, 28, a former correctional officer at the Taft Federal Correctional Facility was sentenced by United States District Court Judge Anthony W. Ishii yesterday to 30 months in prison for conspiracy to provide and possess contraband in prison in violation of 18 U.S.C. §§ 371 and 201(b)(1), United States Attorney Benjamin B. Wagner announced.
According to court documents, Cano admitted that between November 2013 and February 27, 2014, he conspired with Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Facility to smuggle cell phones, cash, alcohol and controlled substances into the prison in return for the payment of cash.
In sentencing Cano, Judge Ishii stated that Cano abused his position of trust and compromised the integrity and safety of the Taft Federal Correctional Institution. Judge Ishii went on to state that a correctional officer must be held to a high standard of conduct and failure to uphold this conduct can seriously endanger all those within the confines of that prison. Ramon Cano abused that trust and his acts warranted the sentence imposed.
“Cano’s criminal activity of introducing contraband into the prison placed fellow correctional officers and inmates they supervised at risk,” said FBI Assistant Special Agent in Charge John Gliatta. “Those who abuse trusted roles for personal gain threaten the safety and security of the institutions neighboring communities. Such actions also threaten the reputation and safety of all corrections personnel.”
On September 2, 2014, Gerardo Alvarez-Montanez was sentenced by Judge Ishii to 60 months in prison for conspiring with Cano to provide and possess contraband in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General. Assistant United States Attorney Brian K. Delaney is prosecuting the case.Former Bristol Resident Sentenced to 5 Years in Prison for Operating $1.8 Million Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN GOODRICH, 57, of Rocky Hill, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for operating a scheme that defrauded investors out of more than $1.8 million.
According to court documents and statements made in court, GOODRICH formerly resided in Bristol where he conducted an investment business using the name Goodrich Financial. Although GOODRICH was not a licensed or registered investment adviser, he provided a business card to some investors that falsely represented that he was licensed to conduct an investment business. Beginning in approximately 2006 and continuing to approximately November 2012, GOODRICH defrauded individuals who had provided him with investment funds by failing to invest the funds as represented, and by using some of the investment funds for his personal use. At times, GOODRICH also used new investor funds to return the principal investment to older investors as is often done in Ponzi schemes. In order to prevent his investors from becoming aware of the scheme, GOODRICH provided written performance summaries to his investors that falsely represented the value of their investments. More than 10 investors collectively lost more than $1.8 million as a result of this scheme.
As part of his sentence, GOODRICH was ordered to pay full restitution to his victims.
During the years 2007 to 2011, GOODRICH used more than $600,000 of the investors’ funds for his personal use without disclosing this income on his federal tax returns. As a result, GOODRICH owes $239,443 in additional federal taxes, plus interest and penalties.
On October 7, 2014, GOODRICH waived his right to indictment and pleaded guilty to one count of mail fraud and one count of subscribing to a false tax return.
GOODRICH, who is released on bond, was ordered to report to prison on April 24, 2015.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with the assistance of the Connecticut Department of Banking. The case was prosecuted by Senior Litigation Counsel Richard J. Schechter.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Bookkeeper Indicted for Embezzling from Tacoma Charity Thrift StoresRead the Press Release
The former bookkeeper for the St. Vincent de Paul Society Stores of Tacoma, Washington, was arrested yesterday afternoon on an indictment returned by a federal grand jury charging her with multiple counts of wire fraud and aggravated identity theft, announced Acting United States Attorney Annette L. Hayes. ANGELA TONEY SAUCIDO, 44, was arrested in Phoenix, Arizona. SAUCIDO moved from the Tacoma area to Phoenix in 2007, but continued to work for the charity as its bookkeeper. The indictment alleges the embezzlement began at least in 2006 and continued throughJuly 2013. SAUCIDO will make her initial appearance in U.S. District Court in Arizona today, with future court appearances in Tacoma.
According to the indictment the embezzlement scheme involved a variety of frauds. SAUCIDO would transfer funds from the St. Vincent de Paul Society Stores bank accounts to her own bank accounts and falsify entries making it appear the transfers were for legitimate purposes. SAUCIDO forged signatures on checks and made electronic fund transfers to benefit her and her family. SAUCIDO made purchases for her personal use on the St. Vincent de Paul Society Stores Home Depot credit account, and then used the charity’s funds to pay for the purchases. Finally, SAUCIDO used the identities of other employees to make it appear they had received additional pay when in fact she had deposited the money into bank accounts she and her husband controlled.
The indictment charges seven counts of wire fraud and four counts of aggravated identity theft. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. Aggravated Identity Theft is punishable by a mandatory two years of prison that must follow any term imposed on the wire fraud counts.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Matthew Hampton.
Former Bank of America Vice President in Las Vegas Pleads Guilty to Misapplication of Bank FundsRead the Press Release
A former senior vice president of Bank of America (BOA) in Las Vegas pleaded guilty today to misapplication of bank funds in a scheme that led to over $6.4 million in losses to BOA on two business-related loans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Office and Special Inspector General Christy L. Romero of the Troubled Asset Relief Program made the announcement.
Justin T. Brough, 39, of North Las Vegas, Nevada, pleaded guilty to one count of misapplication of bank funds before U.S. District Judge Andrew P. Gordon of the District of Nevada. A sentencing hearing is scheduled for May 28, 2015.
According to his plea documents, Brough was a senior vice president at BOA in Las Vegas, serving as a business banking market executive. Brough provided financial services to high-net-worth clients.
Brough admitted to misapplying bank funds in connection with two business loans: a $6.3 million short-term construction loan, and a $600,000 line of credit in connection with the acquisition of a business. Brough admitted that neither borrower qualified for the loans, because they did not meet the bank’s underwriting requirements. Brough further admitted that he falsified documents in order to help both borrowers get the loans, including forging signatures on loan papers.
According to Brough’s admissions, when the borrowers had difficulty making payments on the loans, Brough misused the bank’s general ledger fund to make a total of $436,676 in payments on the loans for the borrowers. Brough admitted that he disguised those payments, among other ways, as “goodwill,” “miscellaneous adjustments” and refunds of various fees. He also admitted that he kept each of the individual payments under $10,000 so he would not need additional approval within BOA.
Both borrowers ultimately defaulted on the loans. According to Brough’s plea agreement, the aggregate loss to BOA was $6,468,767: $5,291,000 on the first loan, and $1,177,167 on the second loan.
BOA received a total of $45 billion in taxpayer funds from the Troubled Asset Relief Program (TARP) of the U.S. Department of the Treasury, which BOA repaid in full in December 2009.
The case was investigated by the FBI and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). This case is being prosecuted by Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section.
Florida Woman Sentenced for Participating in Nashua-Based, Nationwide Tax Return ScamRead the Press Release
CONCORD, NEW HAMPSHIRE – Ann Marie Howard Aguiar, 47, of Jacksonville, Florida was sentenced in United States District Court for the District of New Hampshire to thirty-months in prison after pleading guilty to one count of conspiracy to commit wire fraud in connection with a nationwide tax refund scheme, announced United States Attorney John P. Kacavas.
Aguiar admitted that she participated in a scheme, organized by former Nashua resident Craig S. Cudhea, to file a large number of false tax returns claiming refunds to which the persons in whose names the returns were filed were not entitled. The scheme, based in Nashua, resulted in the filing of thousands of false claims for tax refunds from the Internal Revenue Service.
Cudhea recruited a nationwide network of pastors to solicit members of their congregations to provide their names and social security numbers on the false pretense that their personal identifying information would be used to secure stimulus funds that the government was giving to the poor, disabled and unemployed. The pastors led churches in Virginia, Georgia, New York, Texas, South Carolina, Arkansas, Ohio and Nevada. Many congregants at these churches, consisting mostly of low-income individuals with limited experience with the IRS, provided their personal identifying information and the pastors forwarded that information to Cudhea.
Cudhea then transmitted the personal identifying information to approximately eight women around the country who had been recruited via the internet to enter the information on electronic tax returns. Cudhea dubbed this group of women his “Angels,” and Aguiar was one of Cudhea’s Angels. Cudhea instructed his Angels to report certain information on the falsified tax returns, including specific income amounts, withholding, and expenses such as education and child care that would generate credits and refunds. The information reported was always very similar and often identical.
Although Aguiar was aware that the financial information she reported was false, she prepared and electronically filed the tax returns with the IRS. Cudhea and his Angels filed more than 5,000 false tax returns seeking refunds of approximately $9.4 million. Cudhea paid Aguiar a flat fee for each false return that she prepared that was accepted for processing by the IRS. Cudhea directed the IRS to pay portions of each refund to himself, the pastor who provided the personal identifying information, and sometimes the person in whose name the return was filed. The scheme induced the IRS to pay more than $4 million in false refund claims before it became aware of the fraudulent nature of the claims.United States Attorney John P. Kacavas said, “Prosecuting cases of financial fraud, particularly cases in which the American taxpayer is the victim, is an essential mission of my office. We will continue to work with our law enforcement partners to identify and prosecute fraudsters and restore stolen monies to the public fisc.”
Cudhea, who was charged with conspiracy, wire fraud and other crimes in connection with the scheme, committed suicide after learning that he was being prosecuted. The charges against him have been dismissed.
This case was investigated by the Manchester field office of the IRS’s Criminal Investigation division. The case was prosecuted by Assistant U.S. Attorney Bill Morse.Federal Officials Close Investigation into Death of Trayvon MartinRead the Press Release
The Justice Department announced today that the independent federal investigation found insufficient evidence to pursue federal criminal civil rights charges against George Zimmerman for the fatal shooting of Trayvon Martin on Feb. 26, 2012, in Sanford, Florida. Prosecutors from the Justice Department’s Civil Rights Division, officials from the FBI, and the Justice Department’s Community Relations Service met today with Martin’s family and their representatives to inform them of the findings of the investigation and the decision.
“The death of Trayvon Martin was a devastating tragedy. It shook an entire community, drew the attention of millions across the nation, and sparked a painful but necessary dialogue throughout the country,” said Attorney General Eric Holder. “Though a comprehensive investigation found that the high standard for a federal hate crime prosecution cannot be met under the circumstances here, this young man’s premature death necessitates that we continue the dialogue and be unafraid of confronting the issues and tensions his passing brought to the surface. We, as a nation, must take concrete steps to ensure that such incidents do not occur in the future.”
Following the shooting, a team of some of the department’s most experienced civil rights prosecutors and FBI agents conducted a comprehensive, independent investigation of the events of Feb. 26, 2012. The federal investigation was opened and conducted separately from the state of Florida’s investigation of the shooting under local laws. Once the state initiated the second-degree murder prosecution, federal investigators began monitoring the state’s case and halted active investigation in order not to interfere with the state’s trial. Federal investigators provided reports of interviews and other evidence they obtained to the state’s prosecution team.
Shortly after Zimmerman’s acquittal in state court on July 13, 2013, federal investigators resumed active investigation. Federal investigators reviewed all of the material and evidence generated by the state of Florida in connection with its investigation and prosecution of Zimmerman, including witness statements, crime scene evidence, cell phone data, ballistics reports, reconstruction analysis, medical and autopsy reports, depositions, and the trial record. Federal investigators also independently conducted 75 witness interviews and obtained and reviewed the contents of relevant electronic devices. The investigation included an examination of police reports and additional evidence that was generated related to encounters Zimmerman has had with law enforcement in Florida since the state trial acquittal. In addition, federal authorities retained an independent biomechanical expert who assessed Zimmerman’s descriptions of the struggle and the shooting.
The federal investigation sought to determine whether the evidence of the events that led to Martin’s death were sufficient to prove beyond a reasonable doubt that Zimmerman’s actions violated the federal criminal civil rights statutes, specifically Section 3631 of Title 42 of the U.S. Code or Section 249 of Title 18 of the U.S. Code, as well as other relevant federal criminal statutes. Section 3631 criminalizes willfully using force or threat of force to interfere with a person’s federally protected housing rights on account of that person’s race or color. Section 249 criminalizes willfully causing bodily injury to a person because of that person’s actual or perceived race. Courts define “willfully” to require proof that a defendant knew his acts were unlawful, and committed those acts in open defiance of the law. It is one of the highest standards of intent imposed by law.
The federal investigation examined whether Zimmerman violated civil rights statutes at any point during his interaction with Martin, from their initial encounter through the fatal shooting. This included investigating whether there is evidence beyond a reasonable doubt that Zimmerman violated Section 3631 by approaching Martin in a threatening manner before the fatal shooting because of Martin’s race and because he was using the residential neighborhood. Investigators also looked at whether there is evidence beyond a reasonable doubt that Zimmerman violated Section 3631 or Section 249, by using force against Martin either during their struggle or when shooting Martin, because of Martin’s race.
“Although the department has determined that this matter cannot be prosecuted federally, it is important to remember that this incident resulted in the tragic loss of a teenager’s life,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Our decision not to pursue federal charges does not condone the shooting that resulted in the death of Trayvon Martin and is based solely on the high legal standard applicable to these cases.”
After a thorough and independent investigation into the facts surrounding the shooting, federal investigators determined that there is insufficient evidence to prove beyond a reasonable doubt a violation of these statutes. Accordingly, the investigation into this incident has been closed. This decision is limited strictly to the department’s inability to meet the high legal standard required to prosecute the case under the federal civil rights statutes; it does not reflect an assessment of any other aspect of the shooting.
The Justice Department is committed to investigations of allegations of bias-motivated violence and will continue to devote the resources required to ensure that allegations of civil rights violations are fully and completely investigated. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Grand Jury Formalizes Charges Against Thaddeus Murphy, Man Responsible for Placing Explosive Type Device at Colorado Springs BuildingRead the Press Release
Click here for a copy Thaddeus Murphy's indictment
DENVER – Thaddeus Cheyenne Murphy, age 44, of Colorado Springs, Colorado, was indicted by a federal grand jury in Denver yesterday, the U.S. Attorney’s Office, the FBI, ATF and Colorado Springs Police Department announced. Murphy is believed responsible for placing a device at 603 South El Paso Street in Colorado Springs. Murphy is scheduled to appear before U.S. Magistrate Judge Michael J. Watanabe at 10:00 a.m. tomorrow morning (Wednesday, February 25, 2015) in the Arraj Federal Courthouse, 901 19th Street, for a detention hearing and arraignment. During the detention portion of the hearing the government will argue that the defendant is a danger to the community and should be held without bond. That decision will be made by Magistrate Judge Watanabe.
Because of the indictment, the preliminary hearing originally scheduled for February 27, 2015 has been vacated.
Count one of the indictment alleges that on January 6, 2015, Murphy did maliciously damage and destroy, or attempt to damage or destroy, by means of fire and an explosive, a building located at 603 South El Paso Street in Colorado Springs, Colorado, and such real property is used in interstate or foreign commerce. If convicted of that count, Murphy faces not less than 5 years, and up to 20 years in federal prison, and up to a $250,000 fine.
County two of the indictment alleges that on February 19, 2015, Murphy having been previously convicted of a felony offense knowingly possessed firearms. If convicted of that count, Murphy faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case is being jointly investigated by the FBI, ATF and the Colorado Springs Police Department with support from the El Paso County Sheriff’s Office. The investigation into Murphy’s motive is ongoing.
The defendant is being prosecuted by Assistant U.S. Attorneys Gregory Holloway and Beth Gibson.
The charges in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Federal Court Shuts Down Hawaii Tax Return PreparerRead the Press Release
On Feb. 20, a federal court permanently barred a Kahului, Hawaii, man from preparing federal tax returns for others, the Justice Department announced today.
The U.S. District Court for the District of Hawaii issued the injunction finding that James A. Ericson knowingly and repeatedly violated the Internal Revenue Code by preparing returns that understated his customers’ tax liabilities and by taking unreasonable positions in filing his customers’ returns. The court found that an injunction permanently barring him from preparing federal tax returns for others was necessary to prevent further recurrence of Ericson’s practices. The court’s order applies to Ericson and “all those in active concert or participation with him.”
The complaint alleged that Ericson prepared roughly more than 1,000 tax returns per year. According to the complaint, Ericson improperly understated his customers’ federal tax liabilities by fabricating business schedules, expenses and business income for non-existent businesses; claiming false or inflated credits; and deducting personal expenses that were not legally deductible. The suit also alleged that Ericson falsely claimed to some of his customers that he was a former Internal Revenue Service (IRS) employee. In total, the government’s complaint alleged that the loss to the U.S. Treasury from Ericson’s activities may have exceeded $31 million for tax years 2007 through 2012.
The court’s order requires Ericson to produce to the government counsel a list of all persons for whom he has prepared federal tax returns or claims for a refund since Jan. 1, 2008, and to notify all such persons of the injunction entered against him.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Eight More Sentenced to Federal Prison in Connection with a Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio today, one former Maverick County commissioner, three former Maverick County employees and four Eagle Pass businessmen were sentenced for their roles in a bribery, kickback and bid-rigging scheme that caused Maverick County to lose more than $1.3 million announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
“The corruption in the cases sentenced this week works like a cancer on the body politic, eating away public confidence in local government. We will make every effort to counter its effects and hold accountable those who abuse the public trust for their personal gain,” stated Acting United States Attorney Richard L. Durbin, Jr.
“These defendants created a culture of corruption that spread throughout Maverick County, enabling theft and waste to thrive while taxpayers and honest businesses suffered,” stated FBI SAC Christopher Combs, San Antonio Division.
United States District Judge Alia Moses sentenced:
- former Maverick County Precinct 1 Commissioner Eliaz Maldonado, age 54, to ten years in federal prison followed by three years of supervised release and to perform 1,200 hours of Community Service after completing his prison term. Maldonado was also ordered to pay a maximum $173,128.59 in restitution to the County. On May 2, 2013, Maldonado pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Maldonado admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded County construction contracts. Furthermore, Maldonado admitted that he instructed the private contractors to submit inflated bids to the County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes.
- former Maverick County Precinct 1 foreman Eduardo Rene Rodriguez, age 43, to 97 months in federal prison followed by three years of supervised release for receiving a bribe and to perform 1,200 hours of Community Service after completing his prison term. Rodriguez was also ordered to pay a maximum $26,535.72 in restitution to the County. In January 2013, the liaison between the County and private contractors hired to perform work for the County pleaded guilty to accepting a bribe. By pleading guilty, Rodriguez admitted that in 2010 and 2011, while on pretrial release for unrelated federal firearms charges, he accepted bribes totaling approximately $12,000 from contractors looking to secure County construction contracts. In 2011, Rodriguez was sentenced by Judge Moses to 21 months in federal prison and ordered to pay a $1,000 fine for conspiring to provide a false statement during the purchase of a firearm.
- former Maverick County Precinct 1 foreman Jaime Flores (Eduardo Rodriguez’s replacement), age 35, and 39-year-old Eagle Pass businessman Joe M. Rodriguez, to 72 months and 42 months in federal prison, respectively, followed by three years of supervised release for their roles in a scheme to steal County property. In addition to the prison terms, Flores and Rodriguez were also ordered to pay, jointly and severally, $32,070.00 in restitution to the County. Flores was also ordered to perform 500 hours of Community Service after completing his prison term. Flores and Rodriguez previously pleaded guilty to one count of theft concerning programs receiving federal funds. By pleading guilty, the defendants admitted that they stole County funds for a 15,000 pound capacity forklift that was never purchased. Court records also revealed that Jaime Flores transported numerous bribe payments on behalf of contractors to former Precinct 1 Commissioner Eliaz Maldonado. Following sentencing, Judge Moses remanded Rodriguez into the custody of the United States Marshals Service to begin serving his prison term.
- former Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Daniel Chavez, Jr., age 42, to 65 months in federal prison followed by three years of supervised release and to perform 800 hours of Community Service after completing his prison term. Chavez was also ordered to pay a maximum $201,057.71 restitution to the County. Chavez had previously pleaded guilty to one count of theft concerning programs receiving federal funds. Chavez admitted that from March 9, 2012, to December 28, 2012, he pocketed over $62,000 in forged Maverick County checks he drafted himself. Court records also revealed that Chavez created a construction company for the purpose of participating in the bribery scheme. Chavez also transported bribes from another contractor to former Precinct 2 Commissioner Rodolfo Heredia in furtherance of the scheme.
- Eagle Pass contractors Javier Gonzalez, age 44, and Eduardo De la Garza, age 46, to 112 months in federal prison followed by three years of supervised release and ordered to perform 800 hours of Community Service after completing their prison terms. In 2013, both Gonzalez and De la Garza pleaded guilty to one count of paying a bribe. Gonzalez, a former Maverick County juvenile probation officer, admittedly paid bribes ranging between $2,000 and $5,000 to multiple commissioners in return for over $400,000 in Maverick County contracts. He was also ordered to pay a maximum $156,337.29 in restitution to the County. De la Garza, who admittedly paid bribes ranging from $1,500 to $8,000 to multiple commissioners in return for over $800,000 in Maverick County contracts, was also ordered to pay a maximum $264,246.51 in restitution.
- Jose Telles, Jr., 46-year-old owner of 4x4 Construction, to ten years in federal prison followed by three years of supervised release. Telles was also ordered to pay $8,628.58 restitution to Maverick County and perform 1,200 hours of Community Service after completing his prison term. On June 4, 2013, Telles pleaded guilty to one count of paying a bribe. By pleading guilty, Telles admitted that in 2010, he paid a $5,000 bribe to Maverick County Precinct 1 commissioner Eliaz Maldonado to secure a $30,200 County contract to construct inlets and junction boxes on Juan and Laura Streets in Precinct 1.
Judge Moses also continued bond conditions for Eliaz Maldonado, Javier Gonzales, Eduardo De la Garza and Jose Telles until the defendants are instructed by federal authorities as when and where to report to begin serving their prison terms. Jaime Flores, Eduardo Rodriguez and Hector Chavez were already in custody prior to today.
San Antonio businessman German Garcia Cano, 55-year-old owner of GGC Enterprises (GGC), failed to appear for today’s scheduled sentencing. A bench warrant has been issued for his arrest. In October 2014, Cano pleaded guilty to one count of paying a bribe. According to the court records, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County. Cano admitted to paying bribes to two Maverick County employees to ensure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.
To date, sixteen (16) individuals have been convicted and sentenced in connection with this investigation.
Former Maverick County Precinct 4 commissioner Cesar Flores is scheduled to be sentenced tomorrow afternoon in federal court in Del Rio. On September 5, 2013, Flores pleaded guilty to one count of receiving a bribe. By pleading guilty, Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain contractors were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011.
This case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation with assistance from Customs and Border Protection Office of Internal Affairs, Texas Department of Public Safety Criminal Investigative Division, Texas Rangers, Drug Enforcement Administration, and the Eagle Pass ISD Police Department. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Bryan N. Reeves, Michael Galdo and Katie Griffin prosecuted this case on behalf of the Government.
- former Maverick County Precinct 1 Commissioner Eliaz Maldonado, age 54, to ten years in federal prison followed by three years of supervised release and to perform 1,200 hours of Community Service after completing his prison term. Maldonado was also ordered to pay a maximum $173,128.59 in restitution to the County. On May 2, 2013, Maldonado pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Maldonado admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded County construction contracts. Furthermore, Maldonado admitted that he instructed the private contractors to submit inflated bids to the County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes.
East Montpelier Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Karlberg, 26, of East Montpelier, Vermont, was sentenced on February 23, 2015, in United States District Court in Burlington, Vermont, to serve a lifetime period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Judge William K. Sessions III also ordered Karlberg to pay a $100 special assessment.
According to court records and proceedings, in January 2013, the parents of a minor in Texas notified law enforcement that their daughter was being harassed by a man she had met in a chatroom on the Internet. The man was pressuring her to take sexually explicit photographs of herself to send to him. Subsequent investigation identified the man chatting with the minor as Karlberg. Karlberg consented to law enforcement searching his computer, and on it were found images of child pornography that included sadistic and masochistic conduct and bestiality. Law enforcement also found evidence that Karlberg had communicated with several other teenage girls and coerced them into masturbating for him on camera. Unknown to the girls, Karlberg secretly recorded them masturbating for him.
After reviewing a report of Karlberg’s mental condition and reviewing his personal history and characteristics, Judge Sessions declined to sentence Karlberg to a prison term and, instead, ordered him to be on supervised release for the rest of his life. Judge Sessions ordered the period of supervised release to be evaluated after 20 years and every five (5) years thereafter to determine if the term of supervision should be terminated. The government did not object to the sentence.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the Vermont Attorney General’s Office in the investigation and prosecution of Karlberg. The prosecution of Karlberg was handled by Assistant U.S. Attorney Barbara A. Masterson. Karlberg was represented by David L. McColgin.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. 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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dutch National Indicted on Computer Hacking and Identity Theft Charges Related to Theft of Digital Versions of 3 Hollywood MoviesRead the Press Release
LOS ANGELES – A federal grand jury today indicted a Dutch national on federal computer hacking and identity theft charges related to the theft of digital versions of three motion pictures.
Joey Vogelaar, who used the online monikers of “TyPeR” and “neXus,” was named in a two-count indictment that alleges unauthorized access to a protected computer and aggravated identity theft.
Vogelaar, 28, a resident of Delft, the Netherlands, allegedly stole pre-release digital copies of the Sony Pictures Entertainment film “How Do You Know” and the Paramount production “Rango,” as well as the Dreamworks movie “Megamind,” which at the time of the alleged theft was in theatrical release.
In 2010, Vegelaar allegedly used a username and password belonging to another person to access a computer system where the films were located. The compromised computer system was located at a company outside of the studios that was involved in the production process.
The computer hacking charge carries a statutory maximum sentence of five years in federal prison. The charge of aggravated identity theft carries a mandatory two-year sentence to run consecutive to any other sentence imposed in the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
This case was investigated by the Federal Bureau of Investigation.
Release No. 15-019
District Man Sentenced to Six-Year Prison Term for Engaging in Sex Trafficking of a Minor and Two Women -Victims Transported to Sexual Encounters, Forced to Turn over All Proceeds-Read the Press Release
WASHINGTON – Reckay Haith, 26, of Washington, D.C., has been sentenced to six years in prison for prostituting and trafficking a 16-year-old girl and two adults between June 2014 and August 2014, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Haith pled guilty in December 2014, in the Superior Court of the District of Columbia to one count of sex trafficking of children and two counts of pandering. He was sentenced by the Honorable Jennifer Anderson on Jan. 23, 2015. Upon completion of his prison term, the defendant will be placed on three years of supervised release.
According to the government’s evidence, Haith and his girlfriend approached the minor and her friend in Northeast Washington and recruited them to engage in prostitution. The girlfriend—at Haith’s direction—taught the minor and her friend how to post online advertisements for sex, set the pricing structure for their sexual encounters, and directed them to turn over all proceeds from these encounters to the defendant. Haith then transported the victims to their various encounters in Maryland and Washington D.C., and waited nearby to allow for immediate collection of the proceeds. The defendant committed these acts despite being told by the minor that she was, in fact, 16 years of age.
On Aug. 7, 2014, members of the FBI’s Child Exploitation Task Force received a tip that Haith was engaging in prostitution and sex trafficking activities. After locating one of the minor’s online advertisements, members of the team immediately contacted her and arranged for an encounter in the District of Columbia. Haith then transported the minor from a hotel in Silver Spring, Md., to the prearranged meeting location in the District of Columbia. Upon his arrival, Haith was placed under arrest.
This case was brought as part of the Department of Justice’s Project Safe Childhood initiative and investigated by the FBI’s Child Exploitation Task Force, which includes members of the FBI’s Washington Field Office and the Metropolitan Police Department. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. 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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Andrew McCabe and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force, as well as the MPD’s Narcotics and Special Investigation Division, Human Trafficking Unit. They also commended those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Tierra Nanches and Assistant U.S. Attorneys Lindsay Suttenberg and Danny Nguyen, who investigated and prosecuted the matter.
15-028
District Man Sentenced to 14-Month Prison Term for Failing to Register as a Sex OffenderRead the Press Release
WASHINGTON – Joe Harris, also known as Ezekiel Maza, 58, of Washington, D.C., was sentenced today to 14 months in prison on a federal charge of failure to register as a sex offender, announced U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Harris has two prior felony convictions for sex offenses, one from the state of Washington and one from Georgia, which require him to register as a sex offender. According to the government’s evidence, Harris moved from Georgia to the District of Columbia and initially registered as a sex offender in 2008 but did not report back to the registry to update his home and work addresses until 2014, following his arrest in this case. During that time, Harris was able to obtain employment as a home delivery driver with two separate food delivery companies by lying on his employment application regarding his criminal history. Harris also moved to several different residences in the District of Columbia without updating the Registry as to those addresses, one of which was a transitional shelter for previously-homeless women.
Harris pled guilty in November 2014 in U.S. District Court for the District of Columbia to one count of failure to register as a sex offender in violation of the Sex Offender Registration and Notification Act (SORNA). He was sentenced by the Honorable Rosemary M. Collyer. His prison term is to be followed by five years of supervised release.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation in 2010 to target sex offenders who violate SORNA by knowingly failing to comply with their sex offender registration requirements. SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist states in locating and apprehending non-compliant sex offenders.
In announcing the sentence, U.S. Attorney Machen and U.S. Marshal Hughes praised the work of Senior Inspector Floriano Whitwell and other members of the D.C. Superior Court Sex Offender Investigations Section of the U.S. Marshals Service, who investigated the case. He also expressed appreciation for the assistance of the Court Services and Offender Supervision Agency. Finally, he commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Troy Griffith and Assistant U.S. Attorney Sarah McClellan, who prosecuted the case.
15-029
Clearfield Woman Sentenced to Prison for False Tax Return SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Clearfield, Pa., has been sentenced in federal court to 15 months in prison and three years’ supervised release on her conviction of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Juanitha Leach-Anderson, 37
According to information presented to the court, from Mar. 2007 to Aug. 23, 2008, Leach-Anderson conspired with another to defraud the Internal Revenue Service, an agency of the United States Department of Treasury, by obtaining and aiding to obtain payment or allowance of false, fictitious and fraudulent claims against the United States. Leach-Anderson and another person prepared or caused to be prepared and filed approximately 111 false, fictitious and fraudulent federal income tax returns wherein they claimed tax refunds totaling approximately $190,279.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Internal Revenue Service Criminal Investigation for the investigation leading to the successful prosecution of Leach-Anderson.
Chicago Man Sentenced to over 30 Years in Federal Prison for Distributing Heroin Resulting in Overdose DeathRead the Press Release
A Cedar Rapids man who sold heroin that caused a heroin overdose death was sentenced today to more than 30 years in federal prison.
Ramon Cortez Freeman, age 35, from Chicago, Illinois, received the prison term after a November 24, 2014 guilty plea to distribution of heroin resulting in death, three counts of distributing heroin, and being a felon in possession of a firearm and ammunition.
At the plea hearing, Freeman admitted he distributed heroin to another individual in January 2014 who used it and died of an overdose. Freeman also admitted to distributing heroin in February and twice in July. Officer Bryan Furman with the Cedar Rapids Police Department and DEA Task Force testified that the purity of heroin seized or purchased by DEA in eastern Iowa has substantially increased over the past five years. Officer Furman testified that, historically, heroin distributors have “cut” their heroin with other substances to increase the quantity and generate more profits. This “cutting” of the heroin resulted in heroin purities as low as 1% going to the ultimate users. In recent years, however, a new heroin business model has apparently emerged in Cedar Rapids, as heroin seized or purchased by DEA has been testing as high as nearly 90% pure—even for smaller quantities of the type being used by addicts. Because a common dosage unit for heroin is one-tenth of a gram or less—all of which is used at once—people using the extremely pure heroin are often unknowingly ingesting several times more of the drug than they intended. The increase in heroin purity has coincided with the increases in reported overdoses and deaths from heroin in eastern Iowa. Court documents reflect the heroin distributed by Freeman in February and July was determined to be around 70% pure.
In addition to the heroin charges, Freeman was sentenced for possessing a stolen .45 caliber pistol loaded with seven rounds of ammunition in April 2014. Freeman had previously been convicted of three drug felonies in Chicago, Illinois.
Freeman was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Freeman was sentenced to 365 months’ imprisonment on the death charge, 240 months’ imprisonment on the heroin distribution charges, and 120 months’ imprisonment on the firearm charge. The sentences were all ordered to be run concurrently. A special assessment of $500 was imposed, and he was ordered to make $9,782.84 in restitution to the family of the overdose victim. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Freeman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, Linn County Sheriff's Office, Cedar Rapids and Marion Police Departments, Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services, and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-100-1-LRR.
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California Man Charged in Stock Manipulation SchemeRead the Press Release
A criminal information has been filed in federal court charging Stephen J. Wilshinsky, 59, of Woodland Hills, California, and former stock broker with the Compass Group of Oppenheimer Inc. and Marquis Financial Services of Indiana, Inc. with one count of conspiracy to commit securities fraud, securities laws violations, and wire fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of FBI's Cleveland Office.
The information charges that on or about March 13, 2008, through in or around September 2012, Wilshinsky, together with at least three other co-conspirators, agreed to defraud investors and potential investors in public companies Kensington Leasing, Ltd. and Lenco Mobile, Inc.
They did this by issuing millions of shares to themselves at little or no cost and then artificially controlling the price and volume of traded shares by, among other means, paying undisclosed commissions to brokers and former brokers for directing client funds to make both authorized and unauthorized investments and fraudulently concealing the co-conspirators’ ownership interests in the manipulated public companies, according to the information.
The co-conspirators then profited by selling their shares of the companies' stock at artificially inflated prices to Wilshinsky’s clients at Oppenheimer and Marquis. Little or no portion of the investments went to fund the operations of the companies. Rather, Wilshinsky and his co-conspirators used the investments to enrich themselves, according to the information.
Wilshinsky received approximately $1.2 million in undisclosed cash commission payments and approximately 500,000 shares of stock from one or more co-conspirators as part of the scheme, which Wilshinsky then sold or transferred. In total, Wilshinsky received more than $1.4 million in cash and stock for participating in the conspiracy, according to the information.
The information was filed by Assistant U.S. Attorneys Christos N. Georgalis and Adam Hollingsworth after an investigation by agents of the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, 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.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Buffalo Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. B U.S. Attorney William J. Hochul, Jr. announced today that George Torres, 53, of Buffalo N.Y., who was convicted of unlawfully possessing with intent to distribute more than 200 grams of heroin and possessing a firearm in furtherance of drug trafficking, was sentenced to 168 months in prison by U.S. District Judge Richard J. Arcara. The court also ordered the forfeiture of $368,270.00 in drug proceeds and three firearms.Assistant U.S. Attorney George C. Burgasser, who handled the sentencing, stated that on November 13, 2012, Buffalo Police and the FBI executed a search warrant at the defendant=s residence at 55 Garner Avenue in Buffalo. During the search, law enforcement officers seized over 200 grams of heroin, three handguns, and $368,000 in United States currency.
The sentencing is the culmination of an investigation by members of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, Special Agents of the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Bucks County Man Sentenced to Prison for Robbing McKeesport BankRead the Press Release
PITTSBURGH - A former resident of Morrisville, Pa., has been sentenced in federal court to 46 months on his conviction of bank robbery, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Christopher Gaspersz, age 24.
According to information presented to the court, on Nov. 26, 2013, Gaspersz robbed Huntington Bank located at 1415 5th Avenue, McKeesport, PA, of $3,807.00. After exiting the bank, Gaspersz led police on a foot chase and was ultimately apprehended. Subsequent to being taken into custody, Gaspersz confessed to four additional bank robberies, which are still under investigation.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the McKeesport Police Department for the investigation leading to the successful prosecution of Gaspersz.
Bridgeport Man Sentenced to 7 Years in Federal Prison for Role in Drug Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that OMAR BAHAMONDE, also known as “Dirk,” 30, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for trafficking narcotics in Bridgeport.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin and crack cocaine 24-hours a day, seven days a week. BAHAMONDE was Hanks’ trusted associate, purchasing bulk heroin for resale, spotting surveillance and helping Hanks cook powder cocaine into crack cocaine base for distribution.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition. One of the firearms was an assault-type rifle and four of the firearms were stolen.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging Hanks, BAHAMONDE and 12 other individuals with a variety of narcotics and firearms trafficking offenses.
BAHAMONDE has been detained since his arrest on December 5, 2013. On November 4, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
BAHAMONDE’s criminal history includes multiple felony convictions, including a conviction for first-degree robbery.
Hanks has pleaded guilty and awaits sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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[email protected]Bakersfield Man Convicted of Attempting to Distribute Five Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today that Edwin Rigoberto Mayorga-Fajardo, 42, resident of Bakersfield, pleaded guilty yesterday to possession with attempt to distribute methamphetamine
According to court documents, on April 8, 2014, Mayorga-Fajardo attempted to distribute five pounds of methamphetamine to a government informant. When law enforcement officers attempted to stop the defendant’s vehicle he sped off and a high speed car chase ensued. While attempting to flee, the defendant was observed throwing packages of methamphetamine from the vehicle. Eventually the defendant was stopped and arrested and approximately four pounds of methamphetamine was recovered.
Mayorga-Fajardo is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on May 18, 2015 at 8:30 AM. Mayorga-Fajardo faces a maximum penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of the work of the Department of Homeland Security, the Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Altamont Man Pleads Guilty to Federal Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Travis Cole Maxfield, 28, of Altamont, Illinois, pled guilty today to all charges against him in an indictment returned by a Federal Grand Jury in November 2014. All offenses relate to the production and distribution of methamphetamine. Specifically, Maxfield pled guilty to Conspiracy to Manufacture and Distribute Methamphetamine from October 2013 through May 2014 in St. Clair, Clinton, and Marion Counties (Count 1); Manufacture of Methamphetamine on February 26, 2014, in St. Clair County (Count 2); Distribution of Methamphetamine on March 5, 2014, in Marion County (Count 3); Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reason to Know that It Would Be Used to Manufacture Methamphetamine (Counts 9 and 10). All offenses are violations of the federal Controlled Substances Act.
Count 1 carries a maximum penalty of not less than 5 years, up to 40 years in federal prison, a $5 million fine, and at least 4 years’ supervised release. Counts 2 and 3 carry a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. Counts 9 and 10 carry a maximum penalty of 20 years in prison, a $250,000 fine, and 3 years’ supervised release. All counts require an assessment of $100.
Information leading to the charges against Maxfield was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, the Centralia Police Department, Jefferson County Sheriff’s Department and the Mt. Vernon Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Additional Charges Filed Against Doctor in Pill Mill CaseRead the Press Release
William J. O’Brien III, 49 of Philadelphia was charged today by Superseding Indictment with 23 additional counts of illegally distributing oxycodone, methadone, and amphetamines, all Schedule II controlled substances, outside the usual course of professional practice and for no legitimate medical purpose, announced United States Attorney Zane David Memeger. According to the superseding indictment, O’Brien’s so-called Apatients@ could for a fee obtain prescriptions for these addictive and dangerous controlled substances without a physical examination or any other medical care or treatment. O’Brien typically charged customers $250 cash for the first appointment to buy prescriptions and $200 for each appointment to obtain refills.
On January 29, 2015, an indictment was unsealed charging O’Brien, a doctor of osteopathic medicine, and Angela Rongione, with one count of conspiracy to distribute controlled substances. In the same indictment, O’Brien was charged separately with 26 counts of illegally distributing Oxycodone and Xanax, a Schedule IV controlled substance, for selling prescriptions for these narcotics to a government cooperator and an undercover FBI agent. The counts charged in the superseding indictment are for additional “patients” to whom O’Brien allegedly sold prescriptions.
If convicted, the defendants face substantial prison terms and fines, and are subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation, FDA Office of Criminal Investigations, and the Department of Health and Human Services - Office of the Inspector General, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
25 Individuals Indicted for Drug Trafficking at Santa Catalina Public Housing Project in Yauco, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On February 19, 2015, a federal grand jury in the District of Puerto Rico returned an indictment against 25 defendants charged with conspiracy to possess with intent to distribute controlled substances in the municipality of Yauco, PR, 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, specially the Ponce Strike Force.
The 25 defendants are: José L. Colón-Paneto, aka “Walter;” José A. Colón-Paneto, aka “Jun;” Jonathan Vargas-Torres, aka “Johny;” Christian Vargas-Torres, aka “Chola;” Ricardo Camacho, aka “Ricardito;” John-John Maldonado-Paneto; Jesús Santiago-Bracero, aka “Jesus Payaso;” Carlos Manuel Pérez-Lugo, aka “Chiqui Moya;” Julio Alberto Millàn-Irizarry, aka “Berti;” Baldo Anthony Cancel-Pérez, aka “Anthony;” Fernando Pacheco-Ortiz, aka “Chinito;” Luis Alberto Figueroa-Pagàn, aka “Kiri;” Christian Xavier Torres-Rivera, aka “Pitito;” Wilson R. Satiago-Bracero, aka “Gordo Payaso;” Raymond L. Lamberty-Torres, aka “Lamberty;” John Paul Rivera-Santiago; Radamés Medina-Irizarry, aka “Rada;” Luis Gabriel Quiñones-Padilla, aka “Mona;” Manuel De Jesús-Castro, aka “Manolo;” Juan Ramón Flores-Colón, aka “Monchi;” Adela Paneto-Soto; Melvin Medina-Caraballo, aka “Melvito;” Prett Onell Santa-Torres, aka “Pre;” Alexis Javier Aponte-Negrón; and Daniel Rodríguez-Santiago, aka “Viejo Danny.”
The indictment alleges that beginning in 2007, the organization distributed heroin, crack, cocaine and marihuana within 1,000 feet of a real property comprising housing facility owned by a public housing authority, that is the Santa Catalina Public Housing Project and the Santa Catalina public school, all for financial gain and profit.The 25 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 enforcers; five runners; and 14 sellers. Nine of the defendants are facing one count of possession of firearms, including “high power” rifles, in furtherance of drug trafficking crimes.
The defendants would have access to different types of vehicles in order to transport money, narcotics and firearms. These vehicles would often be used by some of the defendants and their co-conspirators to conduct drive by shootings and to “hunt” rival gang members. Some of the defendants built a “handmade” firearm that was remotely controlled with a beeper with the intention of shooting at rivals and law enforcement who entered the public housing project.
It was further a part of the manner and means of the conspiracy that the defendants and their co-conspirators established drug distribution points in different areas inside the housing project, for example: between buildings 6, 13, 23, 24, 25; the construction trailers, the basketball court and the community center.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods. These arrests will keep the law abiding citizens of Yauco safer from the inevitable violence that drug trafficking brings.”
“The Drug Enforcement Administration initiated Operation Sudden Impact, in conjunction with the Puerto Rico Police Department- Ponce Strike Force to address the present drug problem that has plagued communities in Puerto Rico. DEA will not allow these violent drug trafficking organizations to take control over the lives of innocent people who live in Santa Catalina Public Housing Project or any other communities,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division.
Special Assistant U.S. Attorney María L. Montañez-Concepción is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison.The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. This OCDETF investigation was led by the DEA High Intensity Drug Trafficking Area (HIDTA) Ponce Task Force.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Monday 23 February 2015
Williston Man Sentenced for Possession of Firearms and Ammunition by a Convicted FelonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Feb. 23, 2015, Gabriel Lazaro Garcia-Hernandez, a/k/a Gabriel L. Garcia, 54, Williston, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon and possession of a firearm with an obliterated serial number. Garcia was convicted on October 29, 2014, by a federal jury.
Judge Hovland sentenced Garcia to serve 15 years in federal prison, to be followed by three years of supervised release. Garcia was ordered to pay a $200 special assessment to the Crime Victim’s Fund.
On January 7, 2014, officers with the Northwest Narcotics Task Force executed a search warrant at Garcia-Hernandez’s residence in Williston, N.D. They found a small amount of marijuana, drug paraphernalia, five firearms and over 300 rounds of various brands and calibers of ammunition. One of the firearms, a .22 caliber rifle, had the serial number scratched off to the point it was illegible. The other four firearms were handguns.
Garcia-Hernandez was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including 1991 New Jersey convictions for aggravated assault and armed robbery, a 1995 Florida conviction for aggravated assault with a deadly weapon, and 2003 Florida convictions for armed robbery and kidnapping.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Northwest Narcotics Task Force, the Williams County Sheriff’s Office, the Williston Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney David Hagler prosecuted the case.
Wasilla Man Sentenced to 84 Months in Prison for Heroin Trafficking ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was sentenced by U.S. District Court Judge Sharon L. Gleason to serve 84 months in federal prison for his role in a heroin trafficking conspiracy.
James Gwaltney, 38, of Wasilla, Alaska, previously pled guilty to conspiring to distribute more than 1.6 kilograms of heroin throughout the Anchorage area. As part of his plea, Gwaltney admitted that in October 2013, he and co-defendant Baretta Faatafuga received an Express Mail package from California containing heroin that had been concealed inside a Sentry Safe. Both co-defendants intended to distribute the heroin to others.
Upon his release from prison, Gwaltney will remain under court supervision for five years, during which time he must complete 200 hours of community service. The sentence announced today took into consideration Gwaltney’s possession of both the heroin itself as well as drug packaging materials, a scale, multiple cell phones and laptop computers, as well as $5000 in cash. In sentencing Gwaltney, Judge Gleason noted the seriousness of Gwaltney’s offense and the dangers of both drugs and drug addiction.
Gwaltney’s co-defendant, Baretta Faatafuga, was previously sentenced by Judge Gleason to serve a term of 90 months in prison. In announcing Faatafuga’s sentence, Judge Gleason emphasized the dangerous and negative impact caused by bringing drugs into our community and noted that many families are destroyed by heroin. Together, the sentences of both men will protect the Anchorage community for years to come.
In announcing the sentence, U.S. Attorney Loeffler praised the United States Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, and the Alaska State Troopers who investigated the case.
U.S.Attorney Anne M. Tompkins Announces DepartureRead the Press Release
Law enforcement arrested 13 during early-morning round up; Law enforcement still looking for two defendants
CHARLOTTE, N.C. – Anne M. Tompkins, United States Attorney for the Western District of North Carolina (WDNC), announced today that she will stepping down as U.S. Attorney, effective midnight March 9, 2015. Upon Ms. Tompkins’ departure, Jill W. Rose will be Acting U.S. Attorney, until a permanent replacement is nominated and confirmed by the United States Senate.
“As United States Attorney for the Western District of North Carolina, Anne Tompkins has pursued the cause of justice with passion, with integrity, and with results,” said Attorney General Eric Holder. “In her outstanding work on matters involving health care and financial fraud, she helped safeguard the well-being of the American people and bring wrongdoers to justice. Through her service on the Attorney General’s Advisory Committee, she proved herself to be an indispensable advisor on a range of vital issues. And with her efforts to protect civil rights and combat human trafficking, she stood up for innumerable men, women, and children who are too frequently overlooked and too often underserved. Over the course of her extraordinary career, Anne has never lost sight of the most vulnerable in her own community, and has spearheaded trailblazing projects to engage young people in the work of building a more just society, from anti-bullying efforts to leadership development. Through her work at all levels, she has served as an inspiring example to public servants throughout the country – including me. And while I will miss her distinguished leadership and wise counsel, I look forward to all that she will achieve in the next stage of her already remarkable career.”
“It has been a great honor to serve the people of the Western District and I am grateful to President Obama for the opportunity,” said U.S. Attorney Tompkins. “For nearly five years, I’ve had the pleasure and the privilege of working with some of the brightest and most committed public servants. I have the utmost respect for their tireless dedication to the pursuit of justice. I am proud of our accomplishments and I am confident that the lawyers and staff of the Office will continue to work hard to protect the people of this district and deliver justice. ”
Ms. Tompkins was appointed by President Obama and confirmed by the U.S. Senate in April 2010. During her tenure, Ms. Tompkins’ office has prosecuted numerous financial fraud cases involving multi-million dollar investment schemes, securities fraud cases, and mortgage fraud conspiracies. Under Ms. Tompkins’ leadership, WDNC formed the District’s White Collar/Securities and Financial Fraud Group, which comprises federal and state law enforcement agencies and regulatory entities. This task force works in cooperation to identify potential fraud and move quickly to stop offenders and help victims of fraud.
U.S. Attorney Tompkins has also focused on combating health care fraud schemes and reducing the potential for health care fraud in the future. During her tenure, the Office created WDNC’s Health Care Fraud Task Force, a multi-agency team dedicated to identifying and prosecuting those who defraud public and private insurers, jeopardize the integrity of the health care system and waste taxpayer dollars. The Office has brought both criminal and civil fraud cases against individuals and corporations engaged in health care fraud against Medicare and Medicaid, and has recovered millions in restitution for the government-funded programs.
Ms. Tompkins has also focused on the protection of our vulnerable populations from exploitation and violence. In the past five years, the Office has prosecuted successfully numerous child predators and has secured restitution for known victims of child pornography. Also, under Ms. Tompkins’ leadership, the Office created the Charlotte Metropolitan Human Trafficking Task Force, which comprises law enforcement agencies, federal and state prosecutors and community organizations. The goal of the task force is two-fold: to identify cases for prosecution and to provide short and long-term support and assistance to victims of human trafficking. Working with the Task Force, WDNC has also organized annual training events aimed at raising awareness on the issue of human trafficking.
Protecting the integrity of government and public institutions from corruption has been another area of focus for Ms. Tompkins. Under Ms. Tompkins’ leadership, the Office has prosecuted a number of public corruption cases involving police officers and city employees, including the recent prosecution of Charlotte’s former mayor.
Under Ms. Tompkins’ leadership, WDNC was also selected to be a part of Attorney General Holder’s Residential Mortgage Backed Securities (RMBS) Working Group, tasked with investigating those responsible for misconduct contributing to the financial crisis through the pooling and sale of RMBS.
WDNC also continues to focus on community and local impact cases, conducting targeted enforcement actions in high-crime neighborhoods, particularly in response to violent gang activity, crime data, and community needs.
“During my tenure as U.S. Attorney, I have had the opportunity to work closely with our federal, state and local law enforcement partners on prosecutions and crime prevention and outreach initiatives. I extend my gratitude for each agency’s support, which will extend beyond my tenure, and I am thankful for the extraordinary service of the countless agents, officers and deputies who work hard to protect our communities and bring perpetrators to justice.”In addition to her supervision of the Office, in her role as U.S. Attorney, Ms. Tompkins has engaged in extensive community outreach efforts and crime prevention initiatives. A hallmark of Ms. Tompkins’ tenure has been her focus on youth engagement and crime prevention. Ms. Tompkins’ Office has partnered with Charlotte-Mecklenburg Schools (CMS), law enforcement and community groups to host a series of summits, titled “Engage,” that discuss various youth-related topics including anti-bullying, teen dating violence, leadership development, conflict resolution and race relations. Ms. Tompkins has also regularly participated in community-led events and has spoken on the issues of bullying, the importance of tolerance and positive conflict resolution.
“My position as U.S. Attorney has given me the opportunity to reach out to young people and empower them to effectuate change in their schools and their environments. Through the Engage Summits and our collaboration with CMS and a host of community organizations, we have delivered a powerful message, encouraging our youth to stand up, speak out and become catalysts for change by becoming leaders and positive role models to their peers. Our work would not be possible without the assistance of our community partners and the support of our citizen community. I am thankful for their ongoing collaboration and for partnering with the Office in support of our outreach efforts.”
During her tenure, Ms. Tompkins’ Office has organized events focusing on outreach, awareness, and training, in the areas human trafficking, gang prevention, focused deterrence, the Bank Secrecy Act, Project Safe Neighborhoods, domestic violence and prescription drugs. In addition, Ms. Tompkins has engaged in extensive outreach to the LGBT, Arab-Muslim and Sikh communities, and has met with leaders of numerous faith-based organizations.
In addition to serving as U.S. Attorney for WDNC, Ms. Tompkins served for over two years as an advisor to United States Attorney General Eric Holder by sitting on the Attorney General Advisory Committee (“AGAC”), advising the Attorney General on emerging policy management, and operational issues affecting the Department of Justice. “Serving on the AGAC has been a privilege and an opportunity to provide input on important issues to Department of Justice leadership, and to serve as a representative and an advocate for the U.S. Attorney community,” said Ms. Tompkins. Ms. Tompkins also served as co-chair of the AGAC’s Subcommittee on Civil Rights, and as a member of the Health Care Fraud, White Collar Crime, and Office Management and Budget Subcommittees.
Ms. Tompkins navigated the Office through significant challenges in her tenure, including hiring freezes, budgetary cuts and an unprecedented government shut-down. Despite the challenges, Ms. Tompkins’ Office has continued to handle high-volume cases while increasing the Office’s workforce with the addition of prosecutors and support staff.
The United States Attorney’s Office for the Western District of North Carolina includes 32 counties, half of the Great Smoky Mountains National Park and the Blue Ridge Parkway. The Pisgah and Nantahala National Forests cover over one million acres of our district. The largest Native American Community in the eastern half of the United States, the Eastern Band of Cherokee Indians, is in WDNC.
Two Phelps County People Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – JOHN D. STARKE; Rolla, Missouri, was sentenced today to 86 months in prison. Co-defendant CHRYSTAL J. STONE, also of Rolla, Missouri, was sentenced to 24 months in December, for their methamphetamine distribution activities, between October 2013 to May 2014, in Phelps County. They appeared before United States District Judge Audrey G. Fleissig.
This case was investigated by the South Central Drug Task Force. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney's Office.Two Men Who Provided Material Support to Terrorists and Plotted to Kill American Targets in Afghanistan Receive 25-Year Prison TermsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, Acting U.S Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge David Bowdich of the FBI's Los Angeles Field Office announced today that two men with ties to the Inland Empire region of California were each sentenced today to 300 months in federal prison for participating in plots to provide material support to terrorists and to kill American personnel.
The two men sentenced today by U.S. District Judge Virginia A. Phillips are Sohiel Omar Kabir, 37, a naturalized U.S. citizen who was born in Afghanistan and who until late 2011, resided in Pomona, California; and Ralph Deleon, 26, of Ontario, a lawful permanent resident and citizen of the Philippines.
Last summer, Kabir and Deleon were convicted by a federal jury for their role in a plot to travel overseas to fight against U.S. and allied forces in Afghanistan and elsewhere. Specifically, the jury convicted Kabir and Deleon of conspiring to provide material support to terrorists and conspiring to murder United States military and government personnel. The jury also found Kabir guilty of conspiring to provide material support to a designated foreign terrorist organization, namely Al-Qa’ida, and conspiring to receive military-type training from Al-Qa’ida. In addition, the jury convicted defendant Deleon of conspiring to murder, maim, or kindap overseas.
Two other defendants who were indicted in the case in 2012 – Miguel Alejandro Santana Vidriales and Arifeen David Gojali – previously pleaded guilty and are scheduled to be sentenced by Judge Phillips on March 16, 2015.
“This case demonstrates the need for vigilance and swift action to counter the false allure of violent extremism,” said U.S. Attorney Yonekura. “When confronted with young Americans who succumbed to the empty promises of violent extremism and sought to assist a terrorist group in killing American soldiers abroad, law enforcement acted swiftly to eliminate the threat.”
“The defendants betrayed the citizens of the United States by supporting terror and conspiring to murder military members serving overseas” said Assistant Director in Charge Bowdich. “The lengthy prison sentences handed to Mr. Kabir and Mr. DeLeon should send a clear message to those who support terror groups that the FBI and our partners are committed to preventing deadly plots hatched either at home or abroad targeting the United States.”
The evidence presented during last year’s trial showed Kabir introduced Deleon and Santana to radical Islamic ideology in 2010. Kabir left the United States in the final days of 2011, arriving in Afghanistan in July 2012. While in Afghanistan, Kabir continued to communicate with Deleon and others, encouraging them to join him in Afghanistan. Kabir told the group that he had contacts with terrorist organizations and that, when they arrived, he and the group would join “the Students” – referring to the Taliban – and later “the Professors” – referring to Al-Qa’ida.
Deleon, Kabir, and others involved in the plot were heavily influenced by the doctrine of now-deceased Al-Qa’ida in the Arabian Peninsula spokesman Anwar Al-Awlaki and other advocates of violent jihad, whose teachings they frequently invoked during their planning and preparation in this case.
In September 2012, Deleon recruited Gojali to join the plot to travel overseas to engage in violent jihad. As part of their planning and preparation, Deleon led Santana and Gojali in training activities in southern California, including participating in paintball activities and traveling to firearms ranges to fire AK-47s and other assault weapons, which they expected to use in future fighting.
The men made plans to rejoin Kabir, who had relocated to Kabul, Afghanistan. In effort to avoid detection by law enforcement, Deleon and the others planned to cross the border into Mexico by land and from there to travel to the Middle East by air. In November 2012, Deleon purchased airline tickets for the group. On Nov. 16, 2012, the FBI arrested Deleon, Santana, and Gojali as they departed a Chino apartment in a car driven by one of Deleon’s associates intending to drive to Mexico. Kabir was taken into custody by American military personnel in Afghanistan.
The investigation into this terrorism scheme was conducted by the Joint Terrorism Task Force (JTTF) in Riverside, California. The Riverside JTTF is comprised of members from the following agencies: Riverside County Sheriff’s Office; Riverside Police Department; San Bernardino Sheriff’s Department; Beaumont Police Department; Ontario Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the U.S. Attorney’s Office; and the FBI.
The case was prosecuted by Assistant U.S. Attorneys Allen W. Chiu, Christopher D. Grigg and Susan J. DeWitt of the Central District of California, and Trial Attorneys Annamartine Salick and Josh Parecki of the Justice Department’s National Security Division.
Two Men Who Provided Material Support to Terrorists and Plotted to Kill Americans in Afghanistan Receive 25-Year Prison TermsRead the Press Release
RIVERSIDE, California – Two men with ties to the Inland Empire were each sentenced today to 300 months in federal prison for participating in plots to provide material support to terrorists and to kill American personnel.
The two men sentenced today by United States District Judge Virginia A. Phillips are:
Sohiel Omar Kabir, 37, a naturalized United States citizen who was born in Afghanistan and who until late 2011 resided in Pomona; and
Ralph Deleon, 26, of Ontario, a lawful permanent resident and citizen of the Philippines.
The sentencings follow a 6½-week trial last summer in which a federal jury convicted Kabir and Deleon for their role in a plot to travel overseas to fight against U.S. and Allied forces in Afghanistan and elsewhere. Specifically, the jury convicted Kabir and Deleon of conspiring to provide material support to terrorists and conspiring to murder United States military and government personnel.
The jury also found Kabir guilty of conspiring to provide material support to a designated foreign terrorist organization, namely Al-Qa’ida, and conspiring to receive military-type training from Al-Qa’ida. In addition, the jury convicted Deleon of conspiring to murder, maim or kindap overseas.
Two other defendants in the case – Miguel Alejandro Santana Vidriales and Arifeen David Gojali – previously pleaded guilty and are scheduled to be sentenced by Judge Phillips on March 16.
“This case demonstrates the need for vigilance and swift action to counter the false allure of violent extremism,” said United States Attorney Stephanie Yonekura. “When confronted with young Americans who succumbed to the empty promises of violent extremism and sought to assist a terrorist group in killing American soldiers abroad, law enforcement acted swiftly to eliminate the threat.”
David Bowdich, the Assistant Director in Charge of the FBI,s Los Angeles Field Office, commented: “The defendants betrayed the citizens of the United States by supporting terror and conspiring to murder military members serving overseas. The lengthy prison sentences handed to Mr. Kabir and Mr. DeLeon should send a clear message to those who support terror groups that the FBI and our partners are committed to preventing deadly plots hatched either at home or abroad targeting the United States.”
The evidence presented at trial showed Kabir introduced Deleon and Santana to radical Islamic ideology in 2010. Kabir left the United States in the final days of 2011, arriving in Afghanistan in July 2012. While in Afghanistan, Kabir continued to communicate with Deleon and others, encouraging them to join him in Afghanistan. Kabir told the group that he had contacts with terrorist organizations and that, when they arrived, he and the group would join “the Students” – referring to the Taliban – and later “the Professors” – referring to Al-Qa’ida.
Deleon, Kabir, and others involved in the plot were heavily influenced by the doctrine of now-deceased Al-Qa’ida in the Arabian Peninsula spokesman Anwar Al-Awlaki and other advocates of violent jihad, whose teachings they frequently invoked during their planning and preparation in this case.
In September 2012, Deleon recruited Gojali to join the plot to travel overseas to engage in violent jihad. As part of their planning and preparation, Deleon led Santana and Gojali in training activities in Southern California, including participating in paintball activities and traveling to firearms ranges to fire AK-47s and other assault weapons, which they expected to use in future fighting.
The men made plans to rejoin Kabir, who had relocated to Kabul, Afghanistan. In effort to avoid detection by law enforcement, Deleon and the others planned to cross the border into Mexico by land and from there to travel to the Middle East by air. In November 2012, Deleon purchased airline tickets for the group. On November 16, 2012, the FBI arrested Deleon, Santana and Gojali as they departed a Chino apartment in a car driven by one of Deleon’s associates intending to drive to Mexico. Kabir was taken into custody by American military personnel in Afghanistan.
The investigation of this terrorist plot was conducted by the Joint Terrorism Task Force (JTTF) in Riverside, California. The Riverside JTTF is comprised of members from the Riverside County Sheriff’s Office, the Riverside Police Department, the San Bernardino Sheriff’s Department, the Beaumont Police Department, the Ontario Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Attorney’s Office, and the Federal Bureau of Investigation.
Release No. 15-018
Two Florida Couples Agree to Pay $1.13 Million to Resolve Allegations that they Accepted Kickbacks in Exchange for Home Health Care ReferralsRead the Press Release
Two South Florida medical doctors and their wives have agreed to settle allegations that they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc., the Justice Department announced today. Under the settlements, Dr. Alan and Lynn Buhler will pay to the United States $1.047 million and Dr. Craig and Cynthia Prokos will pay $90,000. Dr. Buhler practices in Plantation, Florida, and Dr. Prokos practices in Jupiter, Florida.
“The settlement announced today is another example of the Justice Department’s unrelenting efforts to hold accountable those who engage in kickback schemes,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Health care providers should generate business by offering their patients superior care. Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Americans depend.”
“Kickbacks can corrupt the judgment of physicians and cause them to make decisions for their own financial benefit rather than for the benefit of their patients,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “We will not tolerate these conflicts of interest where Medicare patients and dollars are concerned.”
The United States alleged that, beginning in 2006, A Plus and its owner, Tracy Nemerofsky, engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in South Florida. Specifically, the United States alleged that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals. Among the spouses allegedly paid by A Plus as part of this scheme were Lynn Buhler and Cynthia Prokos. The United States alleged that the spouses were required to perform few, if any, of the job duties they were allegedly hired for and instead, the spouses’ salaries were intended as an inducement for the husband physicians to refer their Medicare patients to A Plus. The United States also alleged that Alan Buhler received medical director payments as part of A Plus’s scheme to obtain his referrals and he attempted to hide those payments from the United States.
The United States previously settled with A Plus, Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.
The settlements announced today resolve allegations that were brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. On Jan. 6, Judge William P. Dimitrouleas dismissed Mr. Guthrie’s suit without prejudice to the United States’ right to proceed. The lawsuit was captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.).
“Being a physician in the Medicare program is a privilege, not a right,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Physicians who engage in such in-your-face kickback schemes to refer Medicare patients to certain home health companies in exchange for money will be held accountable for their behavior. Our agency will continue to crack down on kickbacks, which undermine impartial medical judgment, corrode the public’s trust in the health care system and waste scarce Medicare funding.”
These settlements illustrate the government’s emphasis on combating health care fraud and mark 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 $23.7 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 investigation of this matter reflects a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI. This matter is being handled by Assistant U.S. Attorney Susan Torres and Department of Justice Trial Attorneys Elizabeth Young and Derek M. Adams.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Florida Couples Agree to Pay $1.13 Million to Resolve Allegations that They Accepted Kickbacks in Exchange for Home Health Care ReferralsRead the Press Release
Two South Florida medical doctors and their wives have agreed to settle allegations that they violated the False Claims Act when their wives accepted sham marketer salaries in exchange for their husbands’ referrals to a home health care company called A Plus Home Health Care Inc., the Justice Department announced today. Under the settlements, Dr. Alan and Lynn Buhler will pay to the United States $1.047 million and Dr. Craig and Cynthia Prokos will pay $90,000. Dr. Buhler practices in Plantation, Florida, and Dr. Prokos practices in Jupiter, Florida.
“Kickbacks can corrupt the judgment of physicians and cause them to make decisions for their own financial benefit rather than for the benefit of their patients,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “We will not tolerate these conflicts of interest where Medicare patients and dollars are concerned.”
“The settlement announced today is another example of the Justice Department’s unrelenting efforts to hold accountable those who engage in kickback schemes,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Health care providers should generate business by offering their patients superior care. Financial relationships that put profits over patients undermine the quality and care given to patients and ultimately, the integrity of our public health care program upon which millions of Americans depend.”
The United States alleged that, beginning in 2006, A Plus and its owner, Tracy Nemerofsky, engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market in South Florida. Specifically, the United States alleged that A Plus paid spouses of referring physicians for sham marketing positions in order to induce patient referrals. Among the spouses allegedly paid by A Plus as part of this scheme were Lynn Buhler and Cynthia Prokos. The United States alleged that the spouses were required to perform few, if any, of the job duties they were allegedly hired for and instead, the spouses’ salaries were intended as an inducement for the husband physicians to refer their Medicare patients to A Plus. The United States also alleged that Alan Buhler received medical director payments as part of A Plus’s scheme to obtain his referrals and he attempted to hide those payments from the United States.
The United States previously settled with A Plus, Tracy Nemerofsky and five other couples that allegedly accepted payments from A Plus.
The settlements announced today resolve allegations that were brought by William Guthrie, a former director of development at A Plus, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. On Jan. 6, Judge William P. Dimitrouleas dismissed Mr. Guthrie’s suit without prejudice to the United States’ right to proceed. The lawsuit was captioned U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.).
“Being a physician in the Medicare program is a privilege, not a right,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Physicians who engage in such in-your-face kickback schemes to refer Medicare patients to certain home health companies in exchange for money will be held accountable for their behavior. Our agency will continue to crack down on kickbacks, which undermine impartial medical judgment, corrode the public’s trust in the health care system and waste scarce Medicare funding.”
These settlements illustrate the government’s emphasis on combating health care fraud and mark 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 $23.7 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 investigation of this matter reflects a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, HHS-OIG and the FBI.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Timothy Caskey Sentenced to 25 Years in Prison for Kidnapping A Woman and Fleeing to MexicoRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of TIMOTHY GLEN CASKEY, 43, to 300 months in federal prison for assaulting a woman, kidnapping her, and robbing a bank in Kansas while in-transit to Mexico with the kidnapped victim. CASKEY was charged on September 21, 2011, with kidnapping and interstate domestic violence, and on October 19, 2011 with bank robbery. CASKEY pleaded guilty on February 6, 2014, to kidnapping and bank robbery. The defendant was sentenced on February 20, 2015, before Judge John R. Tunheim in U.S. District Court in Duluth, Minn.
“Timothy Caskey kidnapped the victim and took her to Mexico, where he repeatedly threatened her, and physically and sexually assaulted her,” said Assistant U.S. Attorney Michelle E. Jones. “The defendant funded his violent escapade by robbing a bank in Kansas and stealing a truck in Texas. His history of violent criminal behavior, combined with his guilty plea for these crimes, properly resulted in his 25-year prison sentence. I am grateful to the police departments in Virginia, Minnesota and New Braunfels, Texas, as well as the FBI and BCA for conducting an excellent investigation in this case.”
According to the defendant’s guilty plea and documents filed in court, on July 14, 2011, CASKEY forcibly kidnapped the victim from a street in Virginia, Minnesota, while she was walking with her 9-year-old son, and three others. CASKEY forced the victim into his car, attacked her 9-year-old son and another person, and fled with the victim. CASKEY attacked her repeatedly with the handle of a screwdriver before pulling off the highway and sexually assaulting the victim.
According to the defendant’s guilty plea and documents filed in court, on July 15, 2011, CASKEY robbed the Great Southern Bank in Ottawa, Kansas. Before entering the bank, CASKEY used shoelaces to tie up the kidnapping victim and left her in his vehicle. The defendant later stole a pickup truck from a used car dealership in New Braunfels, Texas. Thereafter, CASKEY crossed the border into Mexico, where he continued to physically and sexually assault the kidnapping victim. He threatened to kill her if she tried to escape, and also withheld food and water from the victim. CASKEY was apprehended on August 8, 2011 in Mexico.
This case resulted from an investigation conducted by the Federal Bureau of Investigation, the Minnesota Bureau of Criminal Apprehension, Virginia Police Department (Minnesota), and the New Braunfels Police Department (Texas).
This case was prosecuted by Assistant U.S. Attorneys Michelle E. Jones and Nate Petterson.
Defendant Information:
TIMOTHY GLEN CASKEY, 43
Virginia, Minn.
Convicted:
• Kidnapping, 1 count
• Bank Robbery, 1 count
Sentenced:
• 300 months in prison
• 5 years of supervised releaseSuburban Police Departments and Sheriffs' Offices to get Crime Analysis Training through Justice Department GrantRead the Press Release
Seven suburban police department in Cuyahoga County and four county sheriffs’ offices will have increased crime analysis capability through a $300,000 Justice Department grant, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“Our office will continue to support law enforcement beyond prosecuting cases, whether that means paying for more officers or advanced training or supportive technology,” Dettelbach said. “This grant will help departments utilize their resources more effectively, making both the community and the officers safer.”
The police departments which will undergo the crime analysis training are Beachwood, Bedford, Berea, Euclid, Mayfield Heights, Parma and Rocky River, as well as the sheriff’s offices in Ashtabula, Geauga, Lake and Lorain counties.
The departments will receive training, technical support, computer software and hardware related to crime analysis. When the work is completed, the departments will be capable of using their training and software to effectively map and analyze crime trends, and to also share that data with other area departments which have already undergone the training.
The grant was made to the Northern Ohio Violent Crime Consortium, a project administered by the U.S. Attorney’s Office which brings together leadership from the police departments of Akron, Canton, Cleveland, Elyria, Lorain, Mansfield, Toledo and Youngstown, federal and state law enforcement agencies as well as researchers from Kent State University and the University of Akron.
The eight NOVCC cities underwent similar crime analysis training last year and will receive continued training through this grant.
Each department will designate officers to receive intense training over several days. Technical support will be provided by computer and crime analysis experts. Funding will be provided for crime analysis software where necessary. Follow-up will be done to insure crime analysis capabilities are being fully implemented into all aspects of the department.
The Northeast Ohio Regional Fusion Center is also a partner in this effort. The goal will be to develop a toolkit to increase crime analysis capacity that can be replicated and shared across the country. Northern Ohio was one of three regions to be awarded the grant, along with Tempe, Ariz. and Charlotte/Mecklenburg, N.C.
The project will start Tuesday, Feb. 24, with an all-day kickoff meeting at Mayfield Village Civic Center. Marty Sumner, chief of the High Point (N.C.) Police Department, will address the group on his city’s success in reducing crime using crime analysis, evidence-based practices and community engagement. Police leadership from the NOVCC cities will also address the group on their progress and on previous projects, sharing success stories and lessons learned.
Springfield Man Pleads Guilty to Heroin and Cocaine DistributionRead the Press Release
BOSTON – Alberto Correa-Martinez, 26, of Springfield, pleaded guilty today to conspiracy to possess with intent to distribute and to distribute cocaine, distribution of heroin, and three counts of distribution of cocaine. U.S. District Judge Timothy S. Hillman scheduled sentencing for June 17, 2015.
On July 23, 2013, Correa-Martinez sold heroin and cocaine to an undercover federal agent. A week later, on July 31, 2013, Correa-Martinez sold cocaine to the same agent. Then on August 6, 2013, Correa-Martinez, along with a co-conspirator, met the agent on Main Street in Springfield, just yards from the state courthouse, to sell him cocaine once again. The drug purchases were captured on video.
The charging statutes each provide a sentence of no greater than 20 years in prison, a period of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Springfield Felon Sentenced to 10 Years in Prison for Firearms and Drug ChargesRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court for conspiring to illegally possess a firearm and ammunition and for conspiring to distribute cocaine.
Kevin Sligar, 30, was sentenced by U.S. District Judge Timothy S. Hillman to 10 years in prison and ten years of supervised release. In October 2014, Sligar pleaded guilty to conspiring to illegally possess a firearm and ammunition and conspiring to distribute cocaine.
From April 1, 2012 through July 21, 2012, Sligar operated a narcotics distribution operation in and around Springfield, with three co-conspirators in which they distributed at least 300 grams of cocaine and an indeterminate amount of marijuana. In connection with the operation, Sligar and a co-conspirator jointly possessed a Hi-Point Model C9, 9mm pistol, even though both had previous convictions.
During the night of July 21, 2012, Sligar and his co-conspirators were leaving the Polish Festival in Ludlow, Mass. in a Dodge Neon when they encountered another car occupied by three individuals. While both cars were stopped at a traffic light, an argument broke out between the occupants and Sligar brandished the pistol. Shortly thereafter, the other car drove away, and the occupants called 911. The Neon attempted to escape the Springfield Police by driving fast, but ultimately crashed at an intersection, injuring Sligar and his three co-conspirators. During the search of the Neon, the pistol, which was fully loaded with 9mm ammunition, was recovered.
In a related case, Sligar pleaded guilty to assault with a dangerous weapon in Hampden Superior Court.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Office; and Springfield Police Commissioner William John Barbieri, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Psychologist and Pschotheraphy Services Owner Sentenced to over Seven Years, and Employee Sentenced to over Five Years in $1.5 Million Medicare FraudRead the Press Release
Chicago − Bryce Woods, 37, an employee of Take Action, Inc., and Inner Arts, Inc., which claimed to provide psychotherapy services to Medicare beneficiaries residing in skilled nursing homes in the Chicago area, was sentenced today by U.S. District Court Judge Virginia M. Kendall to 70 months in federal prison for submitting false claims totaling more than $1.5 million to Medicare for psychotherapy services. Codefendant Keenan R. Ferrell, 55, who was the owner and operator of Take Action, Inc., and Inner Arts, Inc., as well as a licensed psychologist in Illinois, was sentenced to 88 months in federal prison back in August 2014.
“This is an abuse of a program designed for people who need it,” remarked U.S. District Judge Kendall in imposing the sentence today. “This was an egregious fraud.” Judge Kendall also ordered both Woods and Ferrell to serve two-year terms of supervised release and to pay $1,525,496 in restitution.
Ferrell and Woods, both of Chicago, were each convicted of six counts of health care fraud at a jury trial in June 2013. The defendants were convicted of submitting false claims to Medicare for over five years. In each fraudulent claim, Ferrell and Woods represented that Ferrell had provided 45-50 minutes of one-on-one psychotherapy to patients living in skilled nursing homes, when in fact, the sessions were conducted by Woods, psychology graduate students recruited by Ferrell, or others with limited or no supervision.
Knowing that psychotherapy services were reimbursable by Medicare only when performed by an enrolled provider or when “incident to” the services of an enrolled provider, Ferrell and Woods arranged for Ferrell, who was an enrolled Medicare provider and licensed medical doctor, to authorize Inner Arts and Take Action to accept assignment of his claims to Medicare. Ferrell and Woods arranged with psychology graduate students and others to see patients at various skilled nursing facilities. Ferrell himself did not attend or otherwise participate in or supervise any therapy sessions conducted in the nursing homes. As a result, Ferrell was not physically present and immediately available when Take Action and Inner Arts therapists were in nursing homes to visit with patients. As part of the scheme, Ferrell and Woods billed Medicare for more patient visits than had actually been conducted. The defendants also billed Medicare for psychotherapy sessions that Ferrell purportedly provided to patients who in fact were deceased at the time of the purported sessions. In his sentencing arguemnt, Assistant U.S. Attorney Paul Tzur said, “Defendant Woods filed over 31,000 separate claims to Medicare, which was an out and out lie.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge for the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh, Special Agent-in-Charge of the Health and Human Services, Office of Inspector General.
The government is represented by Assistant U.S. Attorney Paul Tzur. The case was investigated by the FBI and the Health and Human Services, Office of Inspector General.
Owners of Floating Kodiak Strip Club Indicted by Federal Grand JuryRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a federal grand jury returned a three-count indictment against Kimberly Christina Reidel-Byler, 46, and Darren K. Byler, 54, both residing near Kodiak, Alaska, charging them with offenses relating to the improper disposal of human waste into waters in and around Kodiak, Alaska.
According to the Indictment filed in this case, the Bylers owned and operated the Wild Alaskan, a converted 94-foot Bering Sea crabber anchored in St. Herman Harbor, Kodiak, Alaska. Between June 25, 2014, and November 30, 2014, the Wild Alaskan was a floating bar and strip club. Customers were ferried to the vessel from shore by the Gulf Coast Responder, a 35-foot landing craft.
During its operation, Kimberly Byler told the U.S. Coast Guard that human waste from the Wild Alaskan was being stored in a 5,000 gallon tank on the vessel, and then disposed of shore side by a commercial waste disposal firm. Darren Byler told the U.S. Coast Guard that waste from the Wild Alaskan was being disposed of at Pier 2, St. Herman Harbor, or that he would transport the human waste in the Gulf Coast Responder to a point three nautical miles offshore, where he would then dump it into the ocean.
The Indictment alleges that these representations to the U.S. Coast Guard were false. Indeed, waste from the Wild Alaskan was being piped from the customer and employee bathrooms directly overboard and into St. Herman Harbor. Disposal of human waste without a permit into waters within three nautical miles of shore is a violation of the Refuse Act, Title 33, United States Code, Sections 407 and 411. Making material false statements to the U.S. Coast Guard is a violation of Title 18, United States Code, Section 1001.
The case was the product of an investigation by the U.S. Coast Guard Investigative Service. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Darren Byler made his initial appearance and was arraigned on February 23, 2015. Kimberly Byler is not yet in federal custody.
If convicted of violating the Refuse Act, the Bylers face not less than 30 days in jail and up to one year, a fine of $25,000 for each day the act was violated, a one-year term of supervised release, and a $25 special assessment. If convicted of making false statements, the Bylers face up to five years in prison, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
North Carolina Man Pleads Guilty to Fraud Charge in Real Estate SchemeRead the Press Release
St. Louis, MO – HUBOLIST ELLIOTT pled guilty to mail fraud in connection with a real estate investment scheme involving fractional interests in vacation properties.
According to court documents, between 2009 and 2014, Elliott, and his company, Travel World Vacations, Inc., offered investment opportunities in vacation properties in Florida. The investment opportunity typically involved a fractional real estate transaction which Elliott and Travel World Vacations, Inc., presented to investors as an opportunity to purchase and own a deeded interest in a specific vacation property. As part of the scheme, typically neither Elliott nor Travel World Vacations, Inc. owned any interest in the properties being offered to investors as available for a fractional real estate purchase. In some instances, the real property represented as an opportunity for investment and ownership did not exist. In other instances, the real property represented as an opportunity for investment and ownership did exist but neither Elliott nor Travel World had a legal interest, fractional or otherwise, that could be conveyed to an investor or any right to enter into a transaction regarding that property. A number of investors from around the country, including one investor from the St. Louis area, invested in Elliott’s fractional real estate scheme. Expected losses as a result of the scheme total more than $1,000,000.
Elliott, Cary, North Carolina, pled guilty to one felony count of mail fraud before United States District Judge Rodney W. Sippel. Sentencing has been set for May 29, 2015.
This charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant United States Attorney Charles Birmingham is handling the case for the U.S. Attorney’s Office.
North Carolina Man Charged for Making $2.3 Million Fraudulent Claim to Deepwater Horizon Spill Compensation FundRead the Press Release
A North Carolina resident was arrested today for allegedly making a fraudulent claim on the fund set up to compensate victims of the 2010 Deepwater Horizon oil spill, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Michael R. Rosella, 45, of Wilmington, North Carolina, was arrested in connection with an indictment returned last week and unsealed following his arrest. The indictment by a grand jury in the District of Columbia charges Rosella with one count of mail fraud, three counts of wire fraud and two counts of money laundering.
According to allegations in the indictment, Rosella, who lived in the District of Columbia in 2010, submitted a claim for compensation in the amount of $2.3 million to the Gulf Coast Claims Facility (GCCF), the entity that formerly handled claims for persons and businesses injured by the Deepwater Horizon oil spill. Rosella allegedly submitted the claim on behalf of a fictitious entity called the Bayou Barataria Sportsmen’s Resort, which Rosella allegedly represented to have been a successful hotel and sport fishing business in Louisiana immediately before the spill, and to have suffered lost profits due to the spill’s impact on the Gulf of Mexico. The documents submitted by Rosella allegedly included false affidavits of the Resort’s “owners,” federal tax filings, state sales tax records, financial statements, and invoices.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Secret Service and is being prosecuted by Trial Attorney Gary A. Winters of the Criminal Division’s Fraud Section.
Rosella Indictment
Mayfield Man Pleads Guilty to Production of Child PornographyRead the Press Release
ALBANY, NEW YORK – RICHARD HASTINGS, 19, of Mayfield, NY entered a plea of guilty in Albany today to production and possession of child pornography before Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian, Nicolas DiNicola, Assistant Special Agent in Charge, Homeland Security Investigations, and Captain Timothy Munro, New York State Police Troop G, Bureau of Criminal Investigation. Sentencing is set for June 3, 2015 at 10 AM.
In July 2013, RICHARD HASTINGS produced sexually explicit photographs of a minor victim and e-mailed some of these photographs to an undercover law enforcement officer in an effort to trade them for additional images of child pornography. On August 8, 2013, law enforcement officers executed a federal search warrant at the defendant’s Mayfield residence and seized his computer which contained the images of the minor victim and additional images of child pornography. As a result, he was placed under arrest. His brother, ROBERT HASTINGS, was also charged with federal child pornography offenses and is currently awaiting trial.
*The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
RICHARD HASTINGS faces a statutory minimum of fifteen years of imprisonment, a maximum sentence of thirty years of imprisonment, and a maximum fine of $250,000. He will remain in custody until sentencing.
This case was investigated by Homeland Security Investigations and the New York State Police. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd, as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit
www.projectsafechildhood.gov
Many Resident Sentenced to 15 Years in Prison for Distributing MethamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Many resident was sentenced last week to 188 months in prison for distributing methamphetamine in the Sabine Parish area.
Scottron Cordell Medlock, 33, of Many, La., was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of distribution of methamphetamine. The defendant was also sentenced to four years of supervised release. According to evidence presented at the July 24, 2014 guilty plea, law enforcement agents recorded Medlock selling 24 grams of methamphetamine in Many on July 17, 2013. Video showed Medlock combining several small bags of methamphetamine into a larger one before selling the drug for $1,400.
“Methamphetamine is a dangerous narcotic,” Finley stated. “My office, along with our federal, state and local partners, will continue in their efforts to bring drug dealers to justice. These cases demonstrate the tremendous impact that collaborative investigations can have to combat methamphetamine distribution.”
The DEA and the Sabine Parish Sheriff’s Office conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation called “Crystal Bend.” OCDETF is a joint multi-agency group consisting of federal, state, and local law enforcement agencies with a cooperative approach to combat drug trafficking.
Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
MS-13 Member Extradited from Mexico on Murder, Gang ChargesRead the Press Release
SAN FRANCISCO – Defendant Jaime Balam (a/k/a “Tweety”) appeared in U.S. District Court in San Francisco today following his extradition from Mexico on a variety of gang-related charges, including racketeering conspiracy and racketeering murder, announced United States Attorney Melinda Haag and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) San Francisco.
According to court records, a federal grand jury in San Francisco indicted Jaime Balam on August 21, 2012. As alleged in the indictment, Balam, 26, a native and citizen of Mexico, was a member of La Mara Salvatrucha, or “MS-13,” a transnational criminal gang operating in various Central American countries and in numerous states across the United States. The defendant is alleged to have been a member of MS-13 who conspired to engage in the conduct of the affairs of MS-13 through a pattern of racketeering activity that included murder, attempted murder, and other acts of violence. The indictment also charges the defendant with the February 19, 2009, gang-related racketeering murder of a victim in Daly City, as well as three attempted racketeering murders arising from the same incident, and firearms-related offenses.
According to the indictment, MS-13 was a Sureño or “Southern” street gang, whose members generally were born outside the United States, claimed Southern California as their base, and acknowledged the primacy of the Mexican Mafia prison gang. The principal rivals of MS-13 in the San Francisco Bay Area were members of the area’s various Norteño or “Northern” gangs, whose members generally were born in the United States, claimed Northern California as their base, and acknowledged the primacy of the Nuestra Familia prison gang. According to the indictment, one of the principal rules of MS-13 is that its members must “hunt” – that is, attack and kill – Norteños and other rivals whenever possible. The indictment specifically alleges that all three defendants conspired to kill actual and suspected members of other gangs.
The 2012 indictment and the 2015 extradition of Balam stem from the government’s efforts, commenced in approximately 2005, to investigate and prosecute members of the MS-13 transnational gang operating in the Bay Area. Balam was arrested on October 21, 2013, in Mexico, and was subsequently ordered extradited to the United States on February 10, 2015.
“This successful extradition culminates years of outstanding investigative work by our federal law enforcement partners with Homeland Security Investigations, and illustrates the lengths to which we will go to pursue justice for victims,” stated United States Attorney Melinda Haag.
“As this case makes clear, we will not allow our borders to be barriers to bringing accused violent criminals to justice,” said Acting Special Agent in Charge Tatum King. “In addition to the tireless efforts by HSI special agents in the Bay Area and Mexico City, we also owe a tremendous debt to authorities in Mexico, whose cooperation was vital to assuring this defendant’s return. HSI will continue to work closely with its law enforcement counterparts in Mexico to assure the safety of law-abiding citizens in both nations.”
Balam is charged with the following crimes, which carry the corresponding maximum terms of imprisonment:
- Racketeering conspiracy in violation of 18 U.S.C. § 1962(d) – life in prison and a $250,000 fine;
- Conspiracy to commit murder in aid of racketeering activity in violation of 18 U.S.C. ' 1959(a)(5) – ten years in prison and a $250,000 fine;
- Conspiracy to commit assault with a dangerous weapon in aid of racketeering activity in violation of 18 U.S.C. § 1959(a)(6) – three years in prison and a $250,000 fine;
- Murder in aid of racketeering activity in violation of 18 U.S.C. ' 1959(a)(1) – life imprisonment, and a $250,000 fine;
- Attempted murder in aid of racketeering activity in violation of 18 U.S.C. § 1959(a)(5) (three counts) – 10 years in prison and a $250,000 fine;
- Carrying and using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. ' 924(c)(1)(A) – is a mandatory consecutive prison term of five years to life in prison (or seven years to life in prison if the firearm is brandished; or ten years to life in prison if the firearm is discharged), and a $250,000 fine;
- Causing death in the commission of a violation of 18 U.S.C. ' 924(c) – if the death constitutes murder as defined in 18 U.S.C. ' 1111, in violation of 18 U.S.C. § 924(j) – life in prison and a $250,000 fine;
- Being an alien unlawfully in possession of a firearm or ammunition in violation of 18 U.S.C. § 922(g)(5) – ten years in prison and a fine of $250,000.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. ' 3553. Please note, an indictment contains only allegations and, as with all defendants, Balam must be presumed innocent unless and until proven guilty.
Balam appeared before the Honorable Joseph C. Spero, United States Magistrate Judge, and was ordered detained pending further proceedings in front of Judge Spero tomorrow morning at 9:30 am. The case is assigned to the Honorable William H. Alsup, U.S. District Judge. The defendant was ordered to appear before Judge Alsup on March 3, 2015, at 2:00 p.m. for status conference.
Andrew M. Scoble is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Tech Ponly Tu. The prosecution is the result of more than seven years’ investigation by Homeland Security Investigations, the San Francisco Police Department, and the Daly City Police Department.
Local Investment Advisor Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – CHARLES WILLIAMS pled guilty to defrauding investors of their funds between on or about November 1, 2007 and January 31, 2013. The 11 individuals whose funds were invested in the C.R. Williams Investment Fund, LLC, and the C.R. Williams Tax Advantaged Investment Fund, LLC reported that they provided defendant more than $753,144. By December 28, 2012, UMB Bank records revealed that only $11,800 remained in the C.R. Williams Investment Fund, LLC account, and $54,400 in the C.R. Williams Tax Advantaged Investment Fund, LLC account.
According to court documents, on March 6, 2008, the Securities and Exchange Commission barred Williams from association with any investment adviser, and revoked the investment adviser registration of C. R. Williams, Inc. Nevertheless, Williams and his corporation continued to accept investments into C.R. Williams Investment Fund, LLC, and C.R. Williams Tax Advantaged Investment Fund, LLC, until 2012 from existing account holders. Between November 2007 and January 2013, Williams devised a scheme to defraud financial investors by promising that the funds they provided to him were maintained in the C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC. Without the authorization of the investors, Williams made multiple electronic transfers from investor accounts into his two investment funds. In order to conceal the transfers of funds from the two investment accounts into other financial accounts, Williams prepared and mailed fraudulent portfolio valuations for C.R. Williams Investment Fund, LLC and C.R. Williams Tax Advantaged Investment Fund, LLC to investors. Williams used the investors’ funds to pay for his office rental, personal expenses, mortgage and vehicle expenses, as well as to draft checks which he made payable to himself.
Williams, St. Louis, Missouri, pled guilty to one felony count of wire fraud and two felony counts of mail fraud before United States District Judge Henry Autrey. Sentencing has been set for May 26, 2015.
This case was investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
Each of these charges carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.Kentucky man sentenced on heroin, cocaine chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Leroy “B.K.” Wilson, 33, of Lexington, Kentucky, was sentenced to 51 months in federal prison.
In November 2014, Wilson pleaded guilty to conspiracy to distribute heroin and cocaine. He admitted that between 2010 and 2014, he conspired with others to distribute cocaine in Huntington. During that period, Wilson worked as a drug courier for Mark Silverburg transporting cocaine from Lexington to Kenneth Newman in Huntington.
On Jan. 8, 2014, Wilson traveled from Huntington to Lexington with nearly $7,000 to purchase cocaine for Newman. Silverburg placed a brown paper bag in the trunk of Wilson’s vehicle, which was opened by Newman in Huntington to reveal two plastic bags of cocaine.
Wilson also did construction work on rental property owned by George Newman, for which he was paid in cash and heroin. Newman instructed Wilson to pay those working for him in heroin.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The Drug Enforcement Administration and Huntington Police Department conducted the investigation. Assistant United States Attorney Greg McVey handled the prosecution.
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Justin Ede Sentenced to 18 Months in Prison and 5 Years of Supervised Release for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Justin Ede, 30, of Enosburg Falls, Vermont was sentenced to 18 months in prison, having pled guilty to one count of possessing child pornography. Senior United States District Judge William K. Sessions III, sitting in Burlington, also sentenced Ede to 5 years of supervised release.
Court records indicate that in June 2014, federal agents executed a federal search warrant for Ede=s Swanton residence. The warrant stemmed from an internet lead that suggested that someone in Ede=s residence was sharing child pornography using peer-to-peer file sharing software. During the search, Ede admitted that he had downloaded child pornography over a two-month period using file-sharing software. Child pornography images were subsequently located on Ede's computer.
Court records further show that Ede had a felony conviction in 2007 for lewd and lascivious conduct. That case involved Ede engaging in non-consensual touching of a 17-year-old female. Ede committed several violations of probation in that case, resulting in his incarceration. At the time of his federal offense, Ede was a registered sex offender as a result of the state conviction.
For his crime, Ede faced a maximum penalty of 10 years in prison, and up to a $250,000 fine. In sentencing Ede, Judge Sessions cited his prior conviction for a contact sexual offense and past violations of probation. He also commented that Ede's risk of recidivism was reduced by his stable environment, including employment and family support.
The investigation was led by the Department of Homeland Security Investigations. Assistant United States Attorney Christina E. Nolan prosecuted the case. Ede is represented by Steven Barth, Esq., of the Federal Public Defender's Office.
This prosecution was part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices and the Internet Crimes Against Children Task Force, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jacksonville Tax Return Preparer Pleads Guilty to Tax FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Fuada Delic (32, Jacksonville) today pleaded guilty to aiding and assisting in the filing of a false tax return. He faces a maximum penalty of three years in federal prison. As part of the plea, Delic has agreed to make full restitution to the Internal Revenue Service for the tax loss arising from the 43 counts charged against her in the original indictment.
Delic was indicted on December 19, 2013.
According to the plea agreement, Delic was the owner, operator, and sole tax preparer at Delica’s Tax Service, a company which offered tax return preparation services. On February 6, 2009, she prepared a Form 1040 on which she represented that the taxpayer had made charitable contributions in the total amount of $14,220. She also represented that the taxpayer had incurred $1,820 in education expenses for which he was entitled to an education credit of $1,510. When Delic prepared the return, she knew that the taxpayer had not made the claimed charitable contributions or incurred the claimed education expenses. Delic submitted the return to the IRS, which issued a refund in the amount of $3,323. Without the false statements, the taxpayer would have been entitled to a refund of $808. Delic was an experienced tax return preparer and knew that making such false statements on a return was against the law.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.