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2 April 2015
Former Principals of Vehicle Financing Company Indicted on Fraud ChargesRead the Press Release
BOSTON – The founders and principals of Inofin, Inc, a shuttered motor vehicle finance company based in Rockland, Mass., were charged in U.S. District Court in Boston today with fraud relating to their solicitation of investments that resulted in losses of over $11 million to investors.
Michael J. Cuomo, 52, of Plymouth, and Kevin J. Mann Sr., 64, of Marshfield, were indicted on one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud. Cuomo and Mann were arrested on Feb. 1, 2015.
The indictment alleges that, from 1994 through February 2011, Cuomo and Mann owned and operated Inofin, which funded loans to purchasers of used cars who could not qualify for traditional financing. In order to fund Inofin’s operations, Cuomo and Mann raised capital by securing investments from dozens of individuals. In an effort to gain access to a source of investor monies that they would otherwise not have had access to, Cuomo and Mann falsely represented to investors that the investors could effect rollovers of monies held in retirement plans to Inofin, and that Inofin was an authorized custodian of retirement monies. In fact, at no point was Inofin an authorized custodian, or trustee, of retirement funds. As a result of these misrepresentations by Cuomo and Mann, Inofin investors transferred more than $11 million in retirement funds to Inofin, practically all of which was lost after Inofin entered into involuntary bankruptcy proceedings.
The charging statutes each provide a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance it received from the U.S. Securities and Exchange Commission, Boston Regional Office. The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Owner of Las Vegas Endoscopy Center, Dipak Desai, M.D., Pleads Guilty to Federal Health Care Fraud ChargesRead the Press Release
LAS VEGAS, Nev. – Dr. Dipak Desai, the former owner of a defunct Nevada endoscopy center, pleaded guilty today to conspiracy to defraud Medicare, Medicaid and other private health insurance companies by inflating and overcharging for anesthesia services it provided, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Dr. Desai intentionally defrauded the federal health care system for his own personal enrichment,” said U.S. Attorney Bogden. “He has finally taken responsibility for his conduct. We are hopeful this closes a long and sordid chapter of harm caused to the people and businesses of Nevada.”
Desai, 65, of Las Vegas, pleaded guilty before U.S. District Judge Larry R. Hicks to one count of conspiracy to commit health care fraud, one count of health care fraud, and agreed to the forfeiture of property of up to approximately $2.2 million. Desai is scheduled to be sentenced on July 9, 2015, and faces a maximum of five years in prison on the conspiracy count, 10 years in prison on the health care fraud count, and maximum fines of $250,000 on each count.
Last July, Desai’s co-defendant and chief operating office of the endoscopy center, Tonya Rushing, pleaded guilty to one count of conspiracy to commit health care fraud, and is scheduled to be sentenced on May 4, 2015.
According to Desai’s guilty plea agreement, between about January 2005 and February 2008, Desai and Rushing conspired to overcharge Medicare, Medicaid, and other private health insurance companies at the Endoscopy Center of Southern Nevada by significantly overstating the amount of time the certified registered nurse anesthetists spent with patients on a given procedure. Desai and Rushing created a separate company, Healthcare Business Solutions, owned by Rushing, to handle the billing for the anesthesia services. This company received approximately nine percent of all money collected for anesthesia services rendered at the endoscopy center. Desai and Rushing imposed intense pressure on the endoscopy center employees to schedule and treat as many patients as possible in a day, and instructed the nurse anesthetists to overstate in their records the amount of time they spent on the anesthesia procedures. Desai and Rushing also instructed the office staff to rely on the false anesthesia records when preparing the claims for reimbursement which were sent to Medicare, Medicaid and the insurance companies. The plea agreement states that the parties agreed that the amount of loss to the victims is approximately $2.2 million.
This case was investigated by the FBI, Office of the Nevada Attorney General, Health and Human Services Office of Inspector General, Department of Labor Office of Inspector General, Food and Drug Administration Office of Criminal Investigations, and the United States Postal Inspection Service, and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and Mark N. Kemberling, who was designated as a Special Assistant U.S. Attorney on this case and is Chief Deputy Nevada Attorney General.
According to a recent report by the Inspector General for the U.S. Department of Health and Human Services, for every dollar the Departments of Justice and Health and Human Services have spent fighting health care fraud, they have returned an average of nearly eight dollars to the U.S. Treasury, the Medicare Trust Fund and others. To learn more or to report Medicare fraud, go to http://www.stopmedicarefraud.gov/
Former Nightclub Owner Convicted of Drug and Gun CrimesRead the Press Release
A 40-year-old Olympia, Washington man was convicted today of drug distribution and illegal firearms charges in U.S. District Court in Seattle, announced Acting United States Attorney Annette L. Hayes. STEVEN ASIR THOMAS, was convicted of Conspiracy to Distribute Controlled Substances, Money Laundering, Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime and being a Felon in Possession of a Firearm following a six day jury trial. The jury deliberated about one day before returning the guilty verdicts. THOMAS faces a mandatory minimum ten years in prison and up to life in prison when sentenced by U.S. District Judge John C. Coughenour on June 29, 2015.
According to records in the case and testimony at trial, THOMAS had owned various nightclubs in the Seattle area, and sought to open a new nightclub near the Seattle Center called “Ice Nightclub”. THOMAS discussed his plans with a person working with law enforcement as well as with an undercover agent. THOMAS claimed the club would be a cover to launder drug money, and would generate cash for additional drug purchases. In October 2013, THOMAS worked to set up a drug deal trading methamphetamine for assault rifles. On three other occasions, law enforcement seized drugs that were either delivered or ordered by THOMAS. In October 2013, THOMAS picked up a pound of methamphetamine from a source and then “sold” it to an undercover agent in Portland, Oregon. About a week later, another two pound load of methamphetamine was seized on a bus headed to Portland – the courier was bringing it to THOMAS. Finally, in March 2014, THOMAS arranged another one pound sale in Portland of highly pure methamphetamine to an undercover agent.
THOMAS used bank accounts set up in the name of ICE Nightclub to launder money he believed to be the proceeds of drug dealing. Some of the money was provided to THOMAS by undercover agents acting as drug dealers. The basic scheme was for purported drug dealers to give him cash disguised as an investment in the club. Then THOMAS would write a check from ICE Nightclub accounts to an entity connected to the purported drug dealers to make it appear that the ICE Nightclub was paying for services rendered. THOMAS collected a fee from the “drug dealers” for his conduct as well.
Finally, on March 27, 2014, law enforcement executed a search warrant at THOMAS’s residence. They found a loaded Glock 9 mm Model 19 firearm next to his bed. Also in the residence was evidence of drug dealing including cocaine, 14 cell phones, scales, currency bands and evidence of a previous marijuana grow. THOMAS is prohibited from possessing guns due to a felony drug conviction in 2006 in Arkansas.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department.
The case was prosecuted by Assistant United States Attorneys Jerrod Patterson, Lisca Borichewski and Nicholas Manheim.
Former DeKalb County and Georgia World Congress Center Official Pleads Guilty to Public Corruption ChargesRead the Press Release
ATLANTA - Patrick Jackson, a former janitorial services manager for the DeKalb County Government and Georgia World Congress Center (GWCC), has pleaded guilty to conspiracy to commit honest services fraud, admitting that he used his position as a public official to obtain benefits for himself.
“Jackson abused his position as a public official by accepting a bribe in exchange for helping a company attain and maintain government contracts at both the Georgia World Congress Center and DeKalb County,” said Acting U.S. Attorney John A. Horn. “This dishonest conduct threatens to undermine the integrity of the contracting system and the quality of the goods and services produced pursuant to those contracts. Today Jackson admitted his wrongdoing.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI will continue to make public corruption cases at all levels a priority matter and asks that anyone with information regarding such matters to contact their nearest FBI field office.”
According to Acting U.S. Attorney Horn, the charges, the plea agreement, and other information presented in court: From 2006 through 2012, Jackson simultaneously worked for two governmental entities: DeKalb County and GWCC. He served as the manager of janitorial services for both entities without the knowledge of either entity. In court, Jackson admitted to using his position as a public official to obtain favors from a company (identified in the Indictment as “Company A”) that provided janitorial services to both DeKalb County and GWCC. Jackson worked for “Company A” before he began working for DeKalb County and GWCC.
While employed by DeKalb County and GWCC, Jackson lived in a luxury apartment in Atlanta, Georgia, that “Company A” furnished and paid for. In exchange, Jackson used his position as a public official to benefit “Company A” in its business dealings with DeKalb County and GWCC. During that time, “Company A” obtained governmental contracts well in excess of one million dollars with the entities. Jackson did not disclose to either employer that “Company A” paid for his apartment. By accepting these bribes, Jackson deprived his employers of their right to his honest services.
Patrick Jackson, 56, of Loganville, Georgia, pleaded guilty before United States District Judge William Duffey. Jackson was indicted by a federal grand jury on September 9, 2014.
This case is being investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorneys Jamie L. Mickelson and Kamal Ghali 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 Convergex Global Markets Trader Pleads Guilty for Scheme to Falsify Books and RecordsRead the Press Release
A former trader at ConvergEx Global Markets Limited (CGM Limited) pleaded guilty this morning in federal court in New Jersey for his role in a scheme to falsify the books and records of a registered U.S. broker-dealer.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett of the U.S. Postal Inspection Service (USPIS) made the announcement.
Michael Craig Marshall, 47, of Bermuda, pleaded guilty before U.S. District Judge Jose L. Linares of the District of New Jersey, to one count of conspiracy to falsify the books and records of a broker-dealer.
According to court documents, CGM Limited and G-Trade Services, LLC (G-Trade) were both wholly owned subsidiaries of ConvergEx Group LLC (ConvergEx Group). G-Trade was a registered U.S. broker-dealer. As part of his plea today, Marshall admitted that clients placed orders to buy or sell securities with G-Trade, and G-Trade then routed the orders to CGM Limited. Marshall further admitted that traders at CGM Limited regularly added a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. Employees of CGM Limited, G-Trade and other ConvergEx Group entities referred to mark-ups and mark-downs as “spread,” “trading profits” or “TP.”
At his plea hearing today, Marshall admitted that he and the other coconspirators falsified G-Trade’s books and records. In particular, Marshall admitted that he reviewed falsified transaction reports for two trades executed in August 2009 to verify that the falsified data regarding the quantities, prices and times of the purchases reflected on the report matched actual trades that had been executed on the market on Aug. 7, 2009, by both G-Trade’s client and other market participants. The reports hid the fact that spread had been taken on the brokerage orders, Marshall admitted. These reports were later provided to G-Trade’s client.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited each pleaded guilty to conspiracy to commit securities and wire fraud. On the same day, ConvergEx Group entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
The case is being investigated by the FBI’s Washington Field Office and the USPIS offices in Washington, D.C. and New York. The case is being prosecuted by Senior Trial Attorneys Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey. Fraud Section Assistant Chief Robert Zink and Trial Attorney Justin Goodyear also assisted with the investigation. The Department appreciates the substantial assistance of the Securities and Exchange Commission.
Federal Jury Finds Albuquerque Man Guilty of Violating the Hobbs Act by Robbing Businesses Engaged in Interstate CommerceRead the Press Release
ALBUQUERQUE – Last night a federal jury sitting in Santa Fe, N.M., returned a verdict finding David Savoy Thomas guilty of four counts of violating the Hobbs Act by robbing and attempting to rob commercial businesses involved in interstate commerce after a three-day trial. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Albuquerque Police Chief Gorden Eden, Jr.
Thomas, 55, of Albuquerque, N.M., was charged with four counts of violating the Hobbs Act by robbing and attempting to rob commercial businesses located in Bernalillo County, N.M., that were involved in interstate commerce, and one count of brandishing a firearm during and in relation to a crime of violence in a five-count indictment filed on Dec. 4, 2013. Thomas was arrested on Dec. 30, 2013, after he was transferred from state custody to federal custody to face the charges in the federal indictment. Trial of the case began on March 30, 2015, and concluded last night when the jury returned a verdict of guilty on the four Hobbs Act charges and was unable to reach a unanimous verdict on the firearms charge.
The evidence at trial established that Thomas robbed one business in May 2010 and three businesses in 2013. A store clerk employed by a McDonald’s Restaurant located on San Pedro NE in Albuquerque testified about being robbed on May 1, 2010, by a man who ran behind the counter, shoved him away from the register, and took money from his cash register. As the robber ran out of the restaurant, he placed his hands on the restaurant’s glass door, leaving his fingerprints behind.
A second store clerk, employed at a Family Dollar Store on Lomas NE in Albuquerque, testified that three years later, on Aug. 10, 2013, he was robbed by a man who held a large knife against his back, ordered him to open the cash register, and took cash from the cash register. Six days later, on Aug. 16, 2013, a man attempted unsuccessfully to rob the same Family Dollar Store. A third store clerk testified that the man threatened her with a knife before fleeing the store empty-handed after she resisted his efforts to rob the store.
A fourth store clerk at a Check and Go Store located on Lomas NE in Albuquerque testified that she was robbed by a man brandishing a firearm on Oct. 19, 2013. The clerk testified that she opened the store’s safe after the robber threatened her with a gun, and that the robber made off with a large amount of money.
APD officers testified that they responded to the scene of each of the four incidents and processed all available evidence, including fingerprints and surveillance videotape. After the fourth incident in Oct. 2013, an APD officer learned that a fingerprint expert had identified Thomas’s fingerprints on the glass door of the restaurant that was robbed in May 2010, and started an investigation into Thomas. After obtaining a photograph of Thomas and determining that Thomas matched the description of the man who robbed the Family Dollar and the Check and Go, the APD officer included Thomas’s photograph in a photo array of six men. The clerks from the two stores positively identified Thomas as the man who attempted to rob the Family Dollar on Aug. 16, 2013 and the Check and Go on Oct. 19, 2013.
The defense called two witnesses during its case. The first, a professor who testified as an expert, tried to call into question the reliability of eye witness testimony. The second, a former law enforcement officer, testified that he could not tell from surveillance videotape if the robber had brandished a real firearm during the Oct. 19, 2013, robbery.
Thomas has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Thomas faces a statutory maximum penalty of 20 years in prison on each of the four Hobbs Act charges. If deemed to be a career criminal, Thomas faces a penalty of 30 years to life imprisonment on these charges.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the Second Judicial District Attorney’s Office. Assistant U.S. Attorneys Norman Cairns and Kimberly A. Brawley are prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Federal Jury Convicts Covington Man for Illegal Possession of Firearm and AmmunitionRead the Press Release
Memphis, TN – A Covington man was found guilty today for being a felon in possession of a .40 caliber Ruger and 50 rounds of ammunition.
Albert Dajaun White, 37, of Covington, TN, was convicted this morning by a federal jury on one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition.
The evidence presented during a three-day trial showed that on October 7, 2013, investigators with the Tipton County Sheriff’s Office executed a search warrant at White’s residence. During the search, the officers recovered a .40 caliber Ruger, 50 rounds of ammunition, a pound of marijuana, 23 pit bulls and $32,240 dollars. The officers also recovered a $100 bill that was used in an undercover drug purchase two days prior to the search. White was arrested and indicted by a federal grand jury on January 30, 2014.
"The jury’s verdict underscores our commitment to work with our law enforcement partners in combating violent crime in Western Tennessee," said United States Attorney Edward Stanton III. "We will continue to utilize every available resource to make our communities a safer place to live."
"This is yet another example of the continued partnership between my office and the United States Attorney’s Office fight to combat gun and drug crimes in the Western District of Tennessee," said District Attorney General Mike Dunavant.
As a result of today’s guilty verdict, White faces a sentence of up to 10 years in federal prison. White is scheduled to be sentenced by United States District Judge John T. Fowlkes on July 9, 2015.
This case was investigated by the Tipton County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Attorney General’s Office for the 25th Judicial District. The government’s case is being prosecuted by Special Assistant U.S. Attorney Sam Stringfellow and Assistant U.S. Attorney Daniel French.
Eight Defendants Plead Guilty in $20 Million Stolen Identity Refund Fraud RingRead the Press Release
Montgomery, Alabama – Alabama and Georgia residents pleaded guilty for their roles in a $20 million stolen identity refund fraud (SIRF) conspiracy, U.S. Attorney George L. Beck Jr. of the Middle District of Alabama and acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today.
The defendants pleaded guilty on the following dates to the following charges:
- Talarius Paige, of Phenix City, Alabama, on March 31, to one count of conspiracy to file false claims and one count of aggravated identity theft;
- Tracy Mitchell, of Phenix City, Alabama, on March 30, to one count of conspiracy to file false claims, one count of wire fraud and one count of aggravated identity theft;
- Latasha Mitchell, of Phenix City, Alabama, on March 30, to one count of conspiracy to file false claims and one count of aggravated identity theft;
- Demeisha Mitchell, of Phenix City, Alabama, on March 26, to one count of conspiracy to file false claims and one count of aggravated identity theft;
- Keisha Lanier, of Seale, Alabama, on March 5, to one count of wire fraud and one count of aggravated identity theft;
- Sharondra Johnson, of Phenix City, Alabama, on Feb. 17, to one count of conspiracy to file false claims;
- Cynthia Johnson, of Phenix City, Alabama, on Dec. 17, 2014, to one count of conspiracy to file false claims; and
- Patrice Taylor, of Midland, Georgia, on July 18, 2014, to one count of conspiracy to file false claims.
The defendants are scheduled to be sentenced on June 30. Mequetta Snell-Quick, another co-conspirator from Phenix City, Alabama, is scheduled to appear in court on April 6. In a related case, on Oct. 2, 2014, Tamika Floyd, of Salem, Alabama, pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft and is scheduled to be sentenced on May 19. The defendants each face a statutory maximum sentence of 10 years in prison for each count of conspiracy to file false claims, a statutory maximum sentence of 20 years in prison for each wire fraud count, and a statutory mandatory minimum sentence of two years in prison for each aggravated identity theft count.
“The guilty pleas of the nine defendants who participated in this conspiracy send a clear message that the Tax Division, along with its law enforcement partners, will vigorously pursue and prosecute individuals involved at every level of these extensive criminal schemes,” stated Acting Assistant Attorney General Ciraolo. “The division will seek significant jail time and restitution from offenders who choose to victimize unsuspecting American taxpayers, including the dedicated men and women serving in the U.S. military, and steal from the U.S. Treasury.”
“Stealing a person’s identity is a horrendous crime,” said U.S. Attorney Beck. “It can take months or years for a victim of identity theft to correct the damage that these criminals reaped upon him or her. But these defendants stole identities from military men and women who have volunteered to protect our country. That is inexcusable and will not be tolerated.”
According to court documents, between January 2011 and December 2013, the defendants ran a large-scale identity theft ring in which they filed more than 7,000 false tax returns that included fraudulent claims for refunds in excess of $20 million. In order to file false returns, the defendants obtained stolen identities from various sources. Tracy Mitchell worked at a military hospital located at Fort Benning, Georgia, and as a hospital employee, she had access to the identification data of military personnel, including soldiers who were deployed to Afghanistan. Tracy Mitchell stole soldiers’ personal information and used that information to file false tax returns.
“This case is an excellent example of Army CID working shoulder-to-shoulder with our fellow law enforcement partners to protect the nation’s soldiers,” said Director Daniel Andrews of the U.S. Army Criminal Investigation Command’s (CID) Computer Crime Investigative Unit. “It demonstrates our vigilance against cybercrime and an unswerving commitment to dismantle criminal operations impacting the U.S. Army.”
Floyd stole personal information from two Alabama state agencies and provided those names to Lanier. Lanier provided those names to Tracy Mitchell, Latasha Mitchell, Paige and others for use in filing false tax returns. Lanier also obtained stolen identities from the Alabama Department of Corrections that were then used to file false tax returns. Also, Paige and Taylor worked in a call center for a Columbus, Georgia, company and stole identities from that company. Paige, in turn, used those identities to file false tax returns and filed some of the returns from Tracy Mitchell’s residence.
In order to file the false tax returns, Floyd applied for and obtained several Electronic Filing Numbers (EFINs) from the Internal Revenue Service (IRS) in the names of sham tax businesses. The tax refunds claimed on the false returns were paid via U.S. Treasury checks mailed to addresses under the control of participants in the scheme, prepaid debit cards issued by financial institutions, and deposits to financial institutions connected to the business EFINs so that the defendants could print refund checks.
The defendants cashed the tax refund checks at several businesses located in Alabama, Georgia and Kentucky. Sharondra Johnson worked at the Walmart money center in Columbus, Georgia, and as part of her employment, she cashed checks for customers of the money center. Demeisha Mitchell approached Sharondra Johnson about cashing tax refund checks issued in the names of other individuals. Sharondra Johnson agreed to cash these refund checks and was paid a fee for her role in the scheme.
“Taking advantage of innocent citizens, especially service members and their families, is disgraceful,” said Chief Richard Weber of IRS Criminal Investigation (CI). “IRS Criminal Investigation is committed to stopping those who would prey on others by stealing their identities. As criminals continue to become more sophisticated, we will continue to work with our law enforcement partners to bring them to justice.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS - CI and the U.S. Army – CID, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Todd A. Brown of the Middle District of Alabama, for prosecuting the case. Ciraolo and Beck Jr. also thanked the U.S. Attorney’s Office of the Middle District of Georgia for their assistance in the case.
Dubois Woman Submitted Fraudulent Insurance Claim After Cozy Acres Furniture Store FireRead the Press Release
JOHNSTOWN, Pa. - A resident of Clearfield County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit fraud, United States Attorney David J. Hickton announced today.
Tara Finley, 40, of DuBois, Pa., pleaded guilty to one count before United States District Judge Kim Gibson.
In connection with the guilty plea, the court was advised that, on April 11, 2007, a fire destroyed the Cozy Acres furniture store, located at 2906 Oklahoma Salem Road in DuBois, Pa. Cozy Acres was owned and operated by Tara Finley and her husband, Keven Finley. In connection with the insurance claim filed with Westfield Insurance, Tara Finley misrepresented that she did not know who set the fire, when in fact she knew it was her husband. As a result of the fraudulent insurance claim, Westfield paid out more than $2 million.
Judge Gibson scheduled sentencing for Aug. 31, 2015, at 11 a.m. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Pennsylvania State Police, conducted the investigation that led to the prosecution of Finley.
District Man Sentenced to 16 Years in Prison for First-Degree Sexual Abuse of GirlfriendRead the Press Release
WASHINGTON – Yusuf Omar Bush, 35, of Washington, D.C., was sentenced today to a 16-year prison term for sexually assaulting his girlfriend, Acting U.S. Attorney Vincent H. Cohen, Jr. announced.
Bush pled guilty in September 2014 to a charge of first-degree sexual abuse, midway through his jury trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Jennifer Anderson. Upon completion of his prison term, Bush will be placed on 30 years of supervised release. He will also be required to register as a sex offender for life.
According to the government’s evidence, Bush and the victim began a romantic relationship in late 2013. In the months that followed, Bush became increasingly jealous and domineering, falsely accusing his girlfriend of having an affair with Bush’s nephew. Bush coupled his accusations with mounting levels of physical abuse. His manipulative behavior toward the victim paralyzed her with fear.
On April 28, 2014, Bush, upset over bad news from the IRS and fueled by unfounded suspicions of infidelity, lashed out physically again at his victim while they were at his house in Southeast Washington. As the day progressed, he became increasingly volatile, trapping her in his room and choking her, striking her in the jaw and body, and ramming a gun into her mouth. He then sexually assaulted her.
Afterwards, he permitted the victim to get dressed, but then forced her to kneel before him as he urinated into her mouth. Finally, he hogtied the victim and began suffocating her. Fearing her life was over, the victim screamed, “He’s trying to kill me! He’s trying to kill me!” A witness heard the victim’s screams and came to her rescue.
The victim fled the house barefoot and immediately reported the attack to police. By contrast, the defendant sneaked out the back door and fled the area. He purchased a one-way bus ticket to California using a false name. He made it to St. Louis, where deputy U.S. Marshals arrested him on May 2, 2014. When stopped, Bush demanded to know, “Who snitched on me?”
At the time of the offense, Bush was on supervised release for a 2006 drug conviction.
In announcing the sentence, Acting U.S. Attorney Cohen commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case, and the patrol officers who first responded to the scene. He also expressed appreciation for the work of the U.S. Marshals Service. In addition, he commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Lezlie Richardson of the Victim/Witness Assistance Unit; Paralegal Specialist Joyce Arthur; Information Technology Specialist Anisha Bhatia; and intern Cristina Stam. Finally, he commended the work of Assistant U.S. Attorneys John L. Hill and Rebekah Holman, who investigated and prosecuted the case.
Department of Justice and U.S. Attorney’s Office Mark the Fifth Anniversary of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention ActRead the Press Release
SACRAMENTO, Calif. — On Thursday, April 2, the United States Attorney’s Office, in partnership with the United States Department of Justice, the Matthew Shepard Foundation, the Napa Valley Criminal Justice Training Center, the Central California Intelligence Center, and the Sacramento State Pride Center participated in events commemorating the 5th anniversary of the passage of the landmark Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act.
In the morning, the U.S. Attorney’s Office hosted local law enforcement representatives at the Central California Intelligence Center (CCIC) in McClellan Park. The four-hour Hate Crimes Prevention Act training featured instruction on federal and state hate crimes statutes, with particular emphasis on the importance of accurate reporting of hate crimes. The program featured several special guest speakers, including Judy Shepard, mother of Matthew Shepard (after whom the statute was named), U.S. Attorney Benjamin Wagner, and representatives from the Civil Rights Division of the U.S. Department of Justice and the Federal Bureau of Investigation. The training is part of the Civil Rights Division’s nationwide effort to provide training on the Hate Crimes Prevention Act to local law enforcement entities.
Later this evening, Judy Shepard, U.S. Attorney Wagner and others will address members of the community at a commemoration of the Act’s anniversary held at California State University Sacramento. Among other things, the event will focus on the history of the Shepard Byrd Hate Crimes Prevention Act, and current federal, state and local enforcement efforts to combat hate crimes.
“The Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act is a critical tool in our ongoing fight against invidious bias motivated violence. The Civil Rights Division is committed to working with our U.S. Attorney partners, local law enforcement, and community members to increase awareness about the Act and to continue our robust enforcement efforts. This training in Sacramento is the first of five regional trainings and community events that we will co-host around the country to mark the fifth anniversary of the Act's passage. Our hope is that these events will lead to greater collaboration between the community and law enforcement, more effective strategies to combat hate crimes, and enhanced public safety.”
“The five year anniversary of the Hate Crimes Prevention Act is an occasion to both celebrate the passage of this critical legislation and the significant enforcement actions that have already occurred, and to dedicate ourselves to the work necessary to enforce the Act even more effectively going forward,” said U.S. Attorney Wagner. “Our local law enforcement partners are dedicated to confronting this issue, and the training that my office is providing to them is part of a nationwide effort by the Department of Justice to increase our collective ability to investigate and prosecute hate crimes. We owe a great debt to the Shepard family for their unceasing efforts in support of this cause, and I am particularly grateful for their presence and participation in our efforts in Sacramento.”Mrs. Shepard, who will speak to the victim’s perspective on hate crimes, said: “On the long road to passing this law, Dennis and I always kept in mind the true purpose, which was to not only see that justice is done for hate crime victims and their loved ones, but more importantly to educate the public about the sheer size of this problem and the community about the exact ways it can protect them. Trainings like these are vital to ensure the Act delivers its full potential.”
The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the victim was engaged in a federally protected activity. The Shepard-Byrd Act also empowers the department to prosecute crimes committed because of a person’s sexual orientation, gender identity, gender or disability as hate crimes.
In 1998, Matthew Shepard — a 21-year-old student at the University of Wyoming — was robbed, tortured, tied to a fence along a country road and left to die by two men who offered him a ride home from a local bar. The investigation into Matthew Shepard’s death found strong evidence that his attackers targeted him because he was gay.
That same year, James Byrd Jr. — a 49-year-old African-American man living in Jasper, Texas — accepted a ride home from three men. They drove him to the remote edge of town where they beat him severely, tied him by the ankles to the back of a pickup truck, and dragged him to his death. The three men responsible for his killing were well-known white supremacists.
While the men responsible for the Shepard and Byrd killings were ultimately convicted of murder, none of them was prosecuted for committing a hate crime. At the time these murders were committed, neither Wyoming nor Texas had a hate crimes law, and existing federal hate crimes protections did not include violent acts based on the victim’s sexual orientation and only covered racial violence against those engaged in a federally protected activity, such as voting or attending school.
Defendant Found Guilty in Manhattan Federal Court in Connection with 1994 Murder of 16 Year-Old GirlRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Delano A. Reid, Special Agent in Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and William J. Bratton, the Police Commissioner of the City of New York (“NYPD”), announced that JOHNNY CEDEÑO was found guilty Monday of conspiracy to commit murder-for-hire, murder-for-hire, and murder in connection with a narcotics conspiracy for his role in the murder of a 16-year-old girl. CEDEÑO was convicted after a six-day jury trial before U.S. District Judge Robert W. Sweet. CEDEÑO is the 20th defendant connected to the “Solid Gold” drug crew to be convicted for acts of violence and/or drug dealing in the Bronx in the 1990’s.
Manhattan U.S. Attorney Preet Bharara said: “Thanks to the efforts of the dedicated agents, detectives, and prosecutors who relentlessly pursued justice in this and related investigations, eight previously unsolved cold-case murders, including the tragic murder of an innocent 16-year-old girl, have now been solved and prosecuted. We hope seeing justice done is some balm to Carmen Diaz’s family, who lost her way too soon.”
ATF Special-Agent-in-Charge Delano A. Reid said: “It's nearly impossible for me to convey how gratified I am to see this long and complicated case come to a close. It was only through the dogged determination and dedication of the assigned investigators and prosecutors that we can now realize the extent of the complexities and obstacles this investigation presented. Cedeno's conviction was a long time coming but the victim's family can finally derive closure from the swift conviction and hopefully can find solace in the fact that once law enforcement has you identified and targeted, your days of freedom are surely numbered.”
NYPD Commissioner William J. Bratton said: “It is our hope that this conviction brings some comfort to the victim’s family who senselessly lost a loved one to gun violence. We thank our federal law enforcement partners who worked tirelessly to see this individual brought to justice”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
JOHNNY CEDEÑO was a drug dealer who sold large quantities of crack cocaine on Bathgate Avenue in the early 90’s. He pled guilty to a firearms charge in the summer of 1994 and, while serving his sentence in connection with that charge, hired members of a drug crew that called itself “Solid Gold” to murder a rival drug dealer from Bathgate Avenue. While attempting to carry out CEDEÑO’s orders, the shooter shot and killed Carmen Diaz, a 16-year-old girl, who was sitting on the front stoop of her apartment building. Carmen Diaz sustained 11 gunshot wounds and died in the hospital three weeks later. The drug rival who was the original target of the shooting sustained injuries but did not die.
In addition to selling enormous quantities of crack cocaine, CEDEÑO and his criminal associates in Solid Gold committed numerous acts of violence, including murder, in the early 1990’s, in the areas of Bathgate Avenue and 178th/179th Streets, and 173rd Street and Boston Road, in the Bronx. Many of those crimes remained unsolved for almost 20 years. After a series of prosecutions in the Southern District of New York, culminating in this trial, 20 members and associates of Solid Gold have now been convicted for their involvement in the organization’s drug dealing activities and a total of eight murders.
JOHNNY CEDEÑO, 58, of the Bronx, faces a mandatory minimum sentence of life in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Judge Sweet has not yet set a sentencing date.
Mr. Bharara praised the investigative work of the ATF and the NYPD.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorneys Laurie A. Korenbaum and Brooke E. Cucinella are in charge of the prosecution.
Dayton Man Sentenced to Prison InRead the Press Release
ROOFING INSURANCE FRAUD SCHEME
DAYTON – Jim Honious, 45, of Dayton was sentenced here today to 12 months in prison for his role in submitting fraudulent insurance claims for roofing repairs. Honious was a salesman for the now-defunct Williams Brothers Roofing and Siding company.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, announced the sentenced imposed today by United States District Judge Walter H. Rice.
Honious pleaded guilty in December 2013 after being charged in a one-count bill of information with conspiring with Williams Brothers’ owner, Gregory Oldiges, to defraud insurance providers using false billing practices. As an incentive to secure more customers, Williams Brothers offered to cover their customers’ insurance deductibles, but those deductibles were fraudulently passed to their insurance providers using “dummy” invoices which had been inflated over and above the deductible amounts.
Honious would have two invoices prepared for a job, with the “real invoice” being submitted to the customer for the amount actually charged for the particular roofing job and the “dummy” invoice being submitted to the insurance company at a higher amount to cover the deductibles. In some cases, the dummy invoice was inflated by more than just the customer’s deductible (inflated by $11,000 in one instance), in an effort to “cover” the customer’s repairs that were uncovered by insurance and to otherwise secure the customer’s business.
Honious was personally responsible for submitting at least 43 fraudulent “dummy” invoices between November 2010 and December 2012, with the difference between the real invoice amounts and the “dummy” invoice amounts totaling more than $75,000.Honious was ordered to serve three years on supervised release following his prison term and must pay restitution in excess of $75,000 to the defrauded insurance companies. He must also complete 100 hours of community service.
Oldiges also pled guilty for his role in the insurance fraud conspiracy (and for other crimes). He died in 2014 prior to his sentencing.
U.S. Attorney Stewart commended the investigation of this case by HSI and IRS, and Assistant United States Attorneys Vipal Patel, Alex Sistla, and Pamela Stanek, who prosecuted the case.
Dayton Couple Indicted on Marijuana, Money Laundering ChargesRead the Press Release
DAYTON – A federal grand jury has charged Dennis S. Hunter, 51, and Sivan D. Hunter, 45, both of Dayton, with conspiracy to distribute marijuana and money laundering in an indictment returned in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, announced the indictment that was unsealed yesterday.
The indictment alleges that the Dennis Hunter conspired to distribute and possessed with intent to distribute more than 1,000 kilograms of marijuana in the Southern District of Ohio.
The couple allegedly laundered the illegal drug proceeds by acquiring various real estate properties, including multiple residential properties in the Dayton metropolitan area. Dennis Hunter allegedly used these properties to store and sell the marijuana. The Hunters also allegedly used the drug trafficking activities to purchase vehicles in cash, including a Volvo XC90 and Mercedes Benz R350.
Dennis Hunter allegedly used the drug proceeds for various repairs and improvements at one of his homes, including the purchase of granite countertops, windows, furniture and an 80-inch television. It is also alleged that he attempted to disguise his illegal profits by converting cash into money orders, which he then deposited into various bank accounts under his control.
Dennis Hunter remains in custody. Sivan Hunter has been released on her own recognizance.
Conspiracy to distribute marijuana is a crime punishable by up to by at least 10 years and up to a lifetime of imprisonment years in prison and money laundering carries a maximum sentence of 20 years imprisonment.
U.S. Attorney Stewart commended the investigation of this case by the DEA and IRS, and Assistant United States Attorney Brent Tabacchi, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Dallas County Man Sentenced to 46 Months in Federal Prison for Role in Hydrocodone and Alprazolam Distribution Conspiracy That Operated in Abilene, Lubbock and DallasRead the Press Release
LUBBOCK, Texas — A Balch Springs, Texas, man who, along with his three co-defendants, pleaded guilty to their roles in a hydrocodone and alprazolam distribution conspiracy, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
John Conte Smith, a/k/a “Leo,” 35, of Balch Springs, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 46 months in federal prison. Smith, who has been in custody since his arrest, along with Dallas residents, Crystal Nicole Burks, 30; Keith Deon Noel, 36; and Lee Santrell Boston, 35; each pleaded guilty, in November 2014 to one count of conspiracy to distribute and possess with intent to distribute hydrocodone and alprazolam.
According to plea documents filed in the case, from approximately February 2014 to July 2014, in the Abilene, Lubbock, and Dallas Divisions of the Northern District of Texas, Smith, Burks, Noel, and Boston conspired together, and with others, to distribute and possess with intent to distribute hydrocodone, a Schedule III, and alprazolam, a Schedule IV, controlled substance.
Smith provided others in the conspiracy prescriptions on genuine prescription forms from medical facilities with the names of actual physicians at those facilities, but with fictitious patient names. Other co-conspirators then took the prescriptions to pharmacies to have them filled, eventually taking the controlled substances back to Smith who kept some for himself and sold the remainder.
On February 2, 2014, Burks’ boyfriend was arrested for passing forged prescriptions for her. After his arrest, Burks began passing the forged prescriptions, or using others to pass them, for Smith in the Dallas area. In May 2014, Smith directed Burks to pass forged prescriptions in the Lubbock and Abilene areas, and Burks had her brother-in-law, Noel, drive her on the trip. Before they left Dallas, Burks and Noel went to a location near downtown Dallas and recruited a homeless person, Boston, to go with them. The three left Dallas and drove to Lubbock on May 20, 2014.
The next day, Burks and Noel drove Boston to several pharmacies in Lubbock where he passed forged prescriptions that Burks had given him and paid for the prescriptions with money she had given him. Boston turned over the filled prescriptions and the change to Burks.
Burks, Noel and Boston drove to Abilene the next day, May 22, 2014, where, after passing forged prescriptions, they were arrested by officers with the Abilene Police Department.
A search warrant was executed at Smith’s home on July 2, 2014, and law enforcement located filled prescriptions for hydrocodone and alprazolam for persons other than Smith, as well as prepared prescription forms in other people’s names that had not yet been passed. Officers also found a 9mm semiautomatic pistol and ammunition in the nightstand by Smith’s bed.
Burks and Noel are scheduled to be sentenced on April 17, 2015. Boston is scheduled to be sentenced on May 15, 2015.
The FBI and the Abilene Police Department investigated. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Columbia Man Added to Heroin Trafficking ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was charged in a federal indictment today for his role in a conspiracy to distribute heroin.
James Delarosa Borden, also known as “Jimmy White,” “Detroit,” and “D,” 40, of Columbia, was charged in a nine-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s second superseding indictment replaces an earlier indictment and adds Borden as a defendant. His cousin, James Delvico Borden, 38, along with Matthew Alec Ell, 20, Angelic Melanie Polston, 20, and Javis Deonn Wideman, 37, all of Columbia, were previously charged.
Today’s indictment alleges that all five defendants participated in a conspiracy to distribute 100 grams or more of heroin in Boone County, Mo., from July to October 2014.
In addition to the conspiracy, James Delarosa Borden is charged with one count of distributing heroin, Ell is charged with five counts of distributing heroin, Ell and Polston are charged together in one count of distributing heroin, and Wideman and James Delvico Borden are charged together in one count of distributing heroin.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the Jefferson City, Mo., Police Department and MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group).
Cleveland Doctor Sentenced for Defrauding MedicareRead the Press Release
CHATTANOOGA, Tenn. – On Apr. 2, 2015, Dr. Raymond Sean Brown, 44, of McDonald, Tenn., was sentenced serve 28 months in prison by the Honorable Curtis L. Collier. In November 2014, Brown pleaded guilty to an information charging him with the use of misbranded drugs with the intent to defraud.
Brown was also ordered to forfeit $6.765 million U.S. currency seized from his bank accounts in December 2012 and pay an additional $717,000. Upon his release from prison, he will serve one year of supervised release.
The plea agreement on file with the U.S. District Court states that from May 2008 until December 2012, Brown fraudulently billed Medicare for Botox injections he did not give. During that time period, he received $7,482,968 in reimbursement from Medicare for Botox injections. According to the plea agreement, between 2008 and 2012, Brown did not purchase any FDA approved Botox and only 254 vials of non-FDA approved Botox, but billed Medicare for 17,766 vials. By pleading guilty, Brown admitted that he received the Botox in interstate commerce for delivery for pay which was misbranded and that he acted with intent to defraud or mislead.
“For medical care, patients rely on the honesty and integrity of their doctor. This defendant not only did not inject the drugs needed by the patients, but also fraudulently billed the Medicare system, which is funded by the taxpayers. This sentence and the additional financial penalties will deter other medical providers from actions such as were exhibited in this case,” said U.S. Attorney Bill Killian.
This investigation was conducted by agents with the U.S. Food and Drug Administration- Office of Criminal Investigation and U.S. Department of Health and Human Services- Office of Inspector General. Assistant U.S. Attorney Terra L. Bay represented the United States.
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Cambria County Man Sentenced on Narcotics and Firearms ViolationsRead the Press Release
Prosecution Is Part Of Project Safe Neighborhoods Initiative
JOHNSTOWN, Pa. – A local resident has been sentenced in federal court to 36 months in prison and three years’ supervised release on his conviction of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Eugene Albert Harris, Jr., 38, of Johnstown, Pa.
According to information presented to the court, on May 31, 2013, Harris distributed less than 100 grams of heroin, and he was found in possession of a NOR, Model SKS, 7.62 x 39 caliber rifle, and a Jennings Bryco Arms, Model 59, 9 mm caliber pistol. On Apr. 25, 2003, Harris was convicted in Indiana Co., Pa., of drug trafficking, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Harris.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods initiative, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Brookline Man and Connecticut Fund Manager Arrested for Million Dollar Insider Trading SchemeRead the Press Release
BOSTON – A Brookline man and a Connecticut fund manager were arrested and charged today in U.S. District Court in Boston in connection with their role in an insider trading scheme that netted more than $1 million in illegal profits.
Amit Kanodia, 47, of Brookline, and Iftikar Ahmed, 44, of Greenwich, Conn., were charged with one count of securities fraud. Both were arrested this morning and are scheduled to appear before U.S. District Magistrate Judge Marianne B. Bowler this afternoon.
As alleged in the criminal complaint, prior to April 2013, Kanodia secretly tipped off his friend Ahmed, an executive at a Connecticut-based fund, and another friend, about the contemplated acquisition of Cooper Tire & Rubber Company by India-based Apollo Tyre. Kanodia learned about the possible acquisition from his wife who was the General Counsel of Apollo at the time. In the months leading up to the public announcement of the acquisition, both Ahmed and the associate, purchased shares and options in Cooper Tire which trades on the New York Stock Exchange. On the day of the announcement, Cooper Tire’s share price increased 41% and Ahmed and his associate began selling their interests in the company for a combined profit of more than $ 1 million. It is alleged that both Ahmed and his associate paid Kanodia a portion of their illegal profits.
“The defendants here are alleged to have improperly obtained confidential information from Apollo Tyre and used that information to unlawfully beat the markets and line their own pockets,” said United States Attorney Carmen M. Ortiz. “Trading on insider information is fraud, plain and simple.”
“The integrity of the capital market is seriously compromised when people trade inside information for personal gain,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation in Boston. “The FBI will continue to go after those who violate the securities laws to make sure no one has an unfair advantage.”
The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $5 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.
U.S. Attorney Ortiz and SAC Lisi made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission, which today filed a separate civil action in federal court (http://www.sec.gov/news/pressrelease/2015-56.html#.VR1whrqgzal). The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bank Employee Pleads Guilty to Stealing from Her Former EmployerRead the Press Release
A woman and former bank employee who stole more than $140,000 from her former employer pled guilty today in federal court in Cedar Rapids.
Teresa Ann Kobriger, age 42, from Iowa Falls, Iowa, was convicted of one count of embezzlement by a bank employee.
In a plea agreement, Kobriger admitted that from December 2008 through December 2012, while employed by the Iowa Falls Sate Bank in a position equivalent to a head teller, she embezzled $144,181.47 from the bank. She admitted that during this time, she stole money from her teller drawer and the bank vault and then altered bank records in order to conceal her thefts.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Kobriger remains free on conditions of release pending sentencing. Kobriger faces a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, a $100 special assessment, and not more than five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Moriftt and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-00026.
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Bank Employee Pleads Guilty to Embezzling as Much as $1 MillionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a woman employed by a Kansas City, Mo., bank pleaded guilty in federal court today to stealing up to $1 million from her employer and to failing to pay taxes on the embezzled income.
Jennifer Regans, 39, of Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges her with embezzlement by a bank employee and filing a false tax return.
Regans was employed as an administrative assistant by Pioneer Services, the military banking division of MidCountry Bank in Kansas City, Mo. Pioneer Services is a finance company that exclusively serves the military community, providing unsecured loans, promoting financial literacy and other financial services. Regans was terminated on July 18, 2012, after the embezzlement was discovered.
By pleading guilty today, Regans admitted that she embezzled at least $500,000 from her employer from Nov. 30, 2007, to July 2, 2012. The government believes the actual loss amount may be as much as $1,013,980. Regans also admitted that she did not pay taxes on the embezzled funds, although the IRS concluded that she should have paid a total of at least $139,746 in federal income taxes during that time frame.
As an administrative assistant, Regans had access to an administrative credit card account for charging company expenses related to her duties. Regans admitted that she embezzled $84,989 via her corporate American Express card and that she purchased another $75,380 worth of American Express gift cheques that were deposited to her personal bank accounts. Pioneer Services found that she embezzled $828,045 on her American Express corporate card. The federal investigation matched up Regans’ expenses against the expenses she listed in the company ledger, and noted which entries were altered. The total amount that the government argues that she certainly embezzled is at least $575,114. The total amount of possible fraud, adding in the charges the company deemed fraudulent (but the government was unable to confirm), is $1,013,980. The actual amount of loss and the actual amount of taxable income that was unreported will be left open for the court to determine at Regans’ sentencing hearing.
According to today’s plea agreement, Regans’ fraud was discovered when the bank received a notice from American Express about a past due corporate credit card that was held by Regans. The accounting department noted that Regans had several apparent personal charges on her corporate credit card and an audit was conducted. The audit revealed that Regans had been making personal expenditures on her corporate American Express since 2007. She then submitted cost allocation reports that disguised her personal expenses as business in nature. The statement balances and sums of the application spreadsheets submitted by Regans were identical, but the description of the expenses did not match.
Regans self-prepared her federal income tax returns from 2008 to 2012 and submitted them online. The embezzled funds were knowingly omitted from Regans’ federal income tax returns, which resulted in an additional tax due and owing of $139,746 based upon the government’s position that she embezzled at least $575,114.
Under federal statutes, Regans is subject to a sentence of up to 33 years in federal prison without parole, plus a fine up to $1.1 million and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.
Avon man sentenced to 12 years in prison for robbing banks and calling in bomb threatRead the Press Release
An Avon man was sentenced more than 12 years in prison for robbing two banks in Elyria and calling in a bomb threat to Elyria High School, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Brett L. Benson, 41, robbed Talmer Bank & Trust on March 19, 2014, and Dollar Bank on March 24, 2014. He also called in a bomb threat to the Elyria High School on the same date as the second bank robbery, according to court documents.
Assistant United States Attorneys Matthew B. Kall and Matthew J. Cronin are prosecuting the case following an investigation by the Federal Bureau of Investigation, the Elyria Police Department, and other local law enforcement agencies.
American Citizen Charged with Conspiring to Provide Material Support to TerroristsRead the Press Release
Defendant Allegedly Supported a Conspiracy to Kill Americans and Carry Out Attacks Against U.S. Military
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced that a complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Muhanad Mahmoud Al Farekh, an American citizen, with conspiracy to provide material support to terrorists. Farekh’s initial appearance is scheduled today before U.S. Magistrate Judge Viktor V. Pohorelsky of the Eastern District of New York. Farekh was deported from Pakistan to the United States and arrested pursuant to the pending warrant.
As alleged in the complaint, Farekh conspired with others to provide material support to terrorists and specifically to provide personnel to be used in support of efforts to kill American citizens and members of the U.S. military abroad. In approximately 2007, Farekh, an individual named Ferid Imam and a third co-conspirator departed Canada for Pakistan with the intention of fighting against American forces. They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs. According to public testimony in previous criminal trials in the Eastern District of New York, in approximately September 2008, Ferid Imam provided weapons and other military-type training at an al-Qaeda training camp in Pakistan to three individuals – Najibullah Zazi, Zarein Ahmedzay and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system. Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life imprisonment. Ferid Imam has also been indicted for his role in the plot.
“Today’s arrest demonstrates that there is no escape from the long reach of our law for American citizens who seek to do harm to our country on behalf of violent terrorist,” said U.S. Attorney Lynch. “We will continue to use every tool at our disposal to bring such individuals to justice.”
“Muhanad Mahmoud Al Farekh is alleged to have conspired with others to provide material support to terrorists,” said Assistant Attorney General Carlin. “Counterterrorism is the highest priority of the National Security Division, and we will continue to be tireless in our pursuit of those who wish to harm the United States or its people. I would like to thank the many agents, analysts and prosecutors who are responsible for the charges in this case.”
“Al Farekh allegedly provided material support to terrorists with every intention of becoming a martyr,” said Assistant Director in Charge Rodriguez. “Today members of our military are safer because of the relentless investigative work by the FBI’s Manhattan-based Joint Terrorism Task Force.”
“The NYPD will continue to work with our law enforcement partners to investigate and arrest individuals who choose to work alongside terrorist organizations and threaten the lives of Americans,” said Commissioner Bratton. “We applaud the investigators and prosecutors whose efforts led to this arrest.”
If convicted, the defendant faces a maximum sentence of 15 years’ imprisonment.
The charges in the complaint are merely allegations and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad and Richard M. Tucker of the Eastern District of New York, with assistance provided by Trial Attorney Bridget Behling of the Justice Department’s National Security Division.
Farekh Complaint
American Citizen Charged with Conspiring to Provide Material Support to TerroristsRead the Press Release
A complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Muhanad Mahmoud Al Farekh, an American citizen, with conspiracy to provide material support to terrorists. Farekh’s initial appearance is scheduled today before United States Magistrate Judge Viktor V. Pohorelsky. Farekh was deported from Pakistan to the United States and arrested pursuant to the pending warrant.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As alleged in the complaint, Farekh conspired with others to provide material support to terrorists and specifically to provide personnel to be used in support of efforts to kill American citizens and members of the U.S. military abroad. In approximately 2007, Farekh, an individual named Ferid Imam, and a third co-conspirator departed Canada for Pakistan with the intention of fighting against American forces. They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs. According to public testimony in previous EDNY criminal trials, in approximately September 2008, Ferid Imam provided weapons and other military-type training at an al-Qaeda training camp in Pakistan to three individuals – Najibullah Zazi, Zarein Ahmedzay, and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system. Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life imprisonment. Ferid Imam has also been indicted for his role in the plot (see EDNY Docket Number 10-CR-019 (S-4) (RJD)).
“Today’s arrest demonstrates that there is no escape from the long reach of our law for American citizens who seek to do harm to our country on behalf of violent terrorists,” stated United States Attorney Lynch. “We will continue to use every tool at our disposal to bring such individuals to justice.”
“Muhanad Mahmoud Al Farekh is alleged to have conspired with others to provide material support to terrorists,” said Assistant Attorney General Carlin. “Counterterrorism is the highest priority of the National Security Division, and we will continue to be tireless in our pursuit of those who wish to harm the United States or its people. I would like to thank the many agents, analysts, and prosecutors who are responsible for the charges in this case.”
“Al Farekh allegedly provided material support to terrorists with every intention of becoming a martyr. Today, members of our military are safer because of the relentless investigative work by the FBI’s Manhattan-based Joint Terrorism Task Force,” said FBI Assistant Director in Charge Rodriguez.
“The NYPD will continue to work with our law enforcement partners to investigate and arrest individuals who choose to work alongside terrorist organizations and threaten the lives of Americans. We applaud the investigators and prosecutors whose efforts led to this arrest,” said Police Commissioner Bratton.
If convicted, the defendant faces a maximum sentence of fifteen years’ imprisonment.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad and Richard M. Tucker are in charge of the prosecution, with assistance provided by Trial Attorney Bridget Behling of the Justice Department’s Counterterrorism Section.
The Defendant:
MUHANAD MAHMOUD AL FAREKH
Age:
Nationality: United States
E.D.N.Y. Docket No. 15-MJ-021
7 Charged in Scheme to Pay Hundreds of Thousands of Dollars in Kickbacks to Boeing Official to Secure Contracts Related to SatellitesRead the Press Release
LOS ANGELES – Seven defendants have been charged in a scheme to pay hundreds of thousands of dollars in kickbacks to a procurement official at a subsidiary of the Boeing Company that supplies satellites and satellite parts to federal government entities, including NASA.
A series of cases related to the kickback scheme were announced today after prosecutors learned that a federal judge unsealed documents related to four of the defendants who previously pleaded guilty in under seal proceedings.
At the center of the scheme is an executive at a San Gabriel Valley metal company that was a subcontractor to Boeing Space and Intelligence Systems (BSIS), which supplies satellites and satellite parts to NASA, the Department of Defense, the National Reconnaissance Office and the United States Air Force. That executive – Alfred Henderson, 60, of Pico Rivera, who is the vice president of A&A Fabrication and Polishing, Inc., which operates in Whittier and Montebello – was arrested on Monday and arraigned on a 15-count grand jury indictment that was unsealed after his arrest. A&A is also charged in the indictment.
Henderson pleaded not guilty on Monday, was released on a $25,000 bond, and was ordered to stand trial on May 26. Representatives of A&A will appear on behalf of the company in federal court on April 13.
A&A is a company that specializes in machining, welding and producing sheet metal for industries that include aerospace. A&A manufactured tooling parts that Boeing used to manufacture satellites.
The indictment alleges that Henderson and A&A paid kickbacks to Mark Allen, 60, of Fresno, who was a procurement officer at BSIS in El Segundo. The kickbacks were paid to Allen through an outside sales representative, Raymond Joseph, 66, of Los Angeles, related to purchase orders to A&A for tooling parts used to manufacture satellites that were sold to the U.S. Government. The indictment alleges that Allen provided Henderson with confidential information that gave A&A an improper advantage in bidding and ensured that A&A would receive purchase orders from BSIS.
The indictment also alleges that, after Boeing decided to stop doing business with A&A due to work quality and performance issues, Henderson devised a scheme to do business through a “front” company, Nace Sheet Metal Company, which was owned and operated by Cesar Soto, 47, of Chino. The indictment against Henderson alleges that Soto and an A&A employee, Randy Mitchell, 62, of Whittier, misrepresented that A&A’s facility was actually operated by Nace and that Henderson unlawfully used Soto’s name on price quotes to Boeing. The indictment further alleges that Henderson and A&A issued false tax forms to Joseph, which he used to understate his taxable income to the Internal Revenue Service.
“As part of the conspiracy, defendant Henderson and defendant A&A paid approximately $650,000 to Joseph and approximately $100,000 to Allen,” according to the indictment against Henderson, which further states that “Allen awarded defendant A&A approximately $4.5 million in BSIS purchase orders between 2005 and February 2012.”
“Pay-to-play schemes undermine the integrity of the competitive bidding process and, in this case, compromised the quality of products used to manufacture satellites for scientific exploration and national defense,” said Acting United States Attorney Stephanie Yonekura.
Chris D. Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service, stated: “Corruption in government contracting is always reprehensible. The indictment handed down by the grand jury and the arrest of Alfred Henderson is yet another example of the continued dedication by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who engage in corrupt business practices.”
Erick Martinez, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office, commented: “The individuals charged in this scheme allegedly undermined the process of fair and open competition by paying kickbacks to a Boeing procurement officer in exchange for securing lucrative contracts. Through a potent synthesis of global teamwork and our dynamic financial investigative talents, CI is committed to maintaining fair competition, free of corrupt practices.”
In a court order filed late Tuesday, United States District Judge Otis D. Wright II, unsealed criminal cases against Mark Allen, Raymond Joseph, Cesar Soto, and Randy Mitchell. All four previously pleaded guilty and are pending sentencing.
The United States Attorney’s Office on Monday filed a criminal information against the seventh defendant in this scheme – Noberto Martinez, 53, of Alhambra, who owns and controls Zenitram Engineering and Manufacturing, Inc. The information charges Martinez with conspiring to pay kickbacks to Allen and issuing false tax forms to Joseph. Martinez has signed a plea agreement and is scheduled to make his first court appearance on April 13.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The cases are the result of investigations by the Defense Criminal Investigative Service, NASA’s Office of Inspector General, and IRS - Criminal Investigation. The National Reconnaissance Office and the U.S. Air Force’s Office of Special Investigations also participated in the investigation. Boeing cooperated fully in the investigation.
Release No. 15-031
4 Short North Posse Members Charged with MurderRead the Press Release
COLUMBUS, Ohio, – A federal grand jury has charged Robert D. Ledbetter, 35; Christopher A. Harris, 27; Rashad A. Liston, 25, and Deounte Ussury, 30, all formerly of Columbus, Ohio, with murder and violent crimes in aid of racketeering activity in an indictment returned in Columbus, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), Donald Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien, and Columbus Police Chief Kim Jacobs announced the indictment, which was returned today.
The indictment alleges that the defendants committed murder with a firearm during and in relation to a drug trafficking crime on April 22, 2007 in Columbus, Ohio. Under federal law, the offenses charged in the indictment are punishable by the death penalty or life in prison without the possibility of parole.
It is alleged that the four defendants committed the murder for the purpose of gaining entrance to and maintaining and increasing their position in the Short North Posse, an enterprise engaged in racketeering activity in Columbus and other parts of Ohio. Various members of the Short North Posse formed subsets of the criminal organization, known as “Cut Throat Committee” and “Homicide Squad,” and engaged in murders, attempted murders, drug trafficking, weapons trafficking, extortion, robbery, arson and other crimes.
“The Short North Posse enterprise had an informal structure where status and respect were acquired in a large part by the commission of acts of violence,” U.S. Attorney Stewart said. “Bringing to justice criminal organizations like the Short North Posse that traffic drugs and use violence and intimidation to terrorize communities is one of our highest priorities. This indictment is yet another step in holding these individuals accountable.”
In June 2014 and October 2014, respectively, the grand jury returned similar indictments charging these four defendants and other members and associates of the Short North Posse with a host of crimes in aid of racketeering activity, including 13 murders. The U.S. Attorney’s Office will formally request that the federal district court join the new indictment with the previous indictments, so that all the offenses can be tried together in April 2016.
“Living a life of drugs and violent crime has its consequences from an arrest to sentencing,” Columbus Police Chief Kim Jacobs said. “These defendants will have to pay a price, even eight years after their offenses, for destroying the lives of others. The Columbus Division of Police has and will continue to work to diligently against gang activity.”
All of the defendants remain in custody.U.S. Attorney Stewart commended the cooperative investigation by law enforcement and Assistant U.S. Attorneys David DeVillers and Kevin Kelley and Special Assistant U.S. Attorney Brian Martinez, as well as Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
1 April 2015
Wilmington Man Sentenced for Possession with Intent to Distribute over $100,000 of Crack CocaineRead the Press Release
WILMINGTON, Del. – Keba Williams, 39, of Wilmington, Del. was sentenced today to seven (7) years of imprisonment for possession with intent to distribute cocaine base (“crack cocaine”) in Wilmington, Del., announced Charles M. Oberly, III, United States Attorney for the District of Delaware. Williams was also sentenced to three (3) years of supervised release following his prison sentence.
According to the indictment and other documents filed in court, Williams was arrested on June 11, 2014 with 1157 grams of crack cocaine, valued at somewhere between $115,700 and $173,550, which represents the largest seizure of crack cocaine in Delaware in many years. Inside Williams’ Trolley Square residence, detectives also found materials used to cook crack cocaine, drug packaging paraphernalia, and over $6,500 in cash. Williams admitted that he had been selling drugs for the past eight (8) years.
United States District Court Chief Judge Leonard P. Stark, who imposed the sentence, called Williams’ conduct “extremely serious and dangerous” and said that “to contribute to the drug trade at such a massive scale warrants a serious punishment.”
The case is the product of an investigation conducted by the Wilmington Resident Office of the Drug Enforcement Administration and the Wilmington Police Department. Special Assistant United States Attorney Elizabeth L. Van Pelt prosecuted the case on behalf of the United States.Williamson County Man Sentenced for Methamphetamine ConspiracyRead the Press Release
On March 26, 2015, Michael A. Boyt, Sr., 42, of Marion, Ill., was sentenced for his involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Boyt, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 135 months in prison, to be followed by 3 years’ supervised release. Boyt was also fined $600.00.
The offense occurred between 2012 and January 2014, in Williamson, Perry, Jackson, Randolph, and Franklin Counties. Evidence at the plea and sentencing hearings established that co-defendant Matthew Beers and numerous other persons were supplying pseudoephedrine pills to Boyt for use in the manufacture of methamphetamine. Boyt was manufacturing methamphetamine at numerous locations in Williamson and Franklin Counties. At sentencing, the district judge found that Boyt was responsible for the possession of over 419 grams of pseudoephedrine. In imposing a high-end sentence, the district judge found that Boyt was a danger to the both the public and himself. Co-defendant Beers has pled guilty to his role in the conspiracy and is awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Southern Illinois Enforcement Group, Illinois State Police/Southern Illinois Drug Task Force, Murphysboro Police Department, and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Wichita Massage Parlor Operators Indicted on Federal ChargesRead the Press Release
WICHITA KAN. – Two people who operated a business called Q Massage at 3833 W. 13th in Wichita were indicted Wednesday on federal charges, U.S. Attorney Barry Grissom said.
Ping Liu, 43, Wichita, Kan., and Xingdi Lin, 48, Wichita, Kan., are charged with one count of attempting to persuade, induce, entice or coerce an individual to cross state lines to engage in prostitution and one count of using a telephone in furtherance of prostitution. The crimes are alleged to have occurred March 13 and March 16, 2015 in Sedgwick County, Kan.
If convicted, they face a maximum penalty of 20 years and a fine up to $250,000 on enticement charge and a maximum penalty of five years and a fine up to $250,000 on the other count. The Wichita Police Department and Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER FEDERAL GRAND JURY INDICTMENTS
A man who was arrested in Kansas after escaping from a prison in Oklahoma has been indicted here on federal firearms charges.
Lance D. Colbert, 40, an inmate at the Mack Alford Correctional Center in Stringtown, Okla., is charged with one count of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of ammunition following a felony conviction, and one count of unlawfully possessing a .38 caliber revolver with the serial number removed.
On March 11, Colbert was arrested in Spivey, Kan. (Kingman County). He and another man had escaped from the prison in Oklahoma two days earlier.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service and the Kansas Highway Patrol investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Walt Jasper Samuel Shrum, 48, Kingman, Kan., is charged with two counts of unlawful possession of a firearm following a felony conviction, one count of unlawful possession of ammunition following a felony conviction and one count of possession of methamphetamine. The crimes are alleged to have occurred March 11, 2015, in Kingman County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each of the firearms charges and a civil penalty up to $10,000 on the misdemeanor methamphetamine charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Gary Dewayne Meacham, 53, Caney, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 11, 2014, in Montgomery County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Matthew T. Payton, 25, Wichita, Kan., is charged with one count of manufacturing counterfeit bills and one count of possessing counterfeit bills. The crimes are alleged to have occurred at various times from September 2014 to February 15, 2015, in Wichita, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Wayne E. Williams, 45, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges he used a telephone to make false statements as part of his application for unemployment benefits. The indictment alleges he received more than $34,000 in benefits to which he was not entitled during a period from Sept. 26, 2009, to April 20, 2013.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The U.S. Department of Labor investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Westwego Woman Sentenced for Conspiring to Commit Bank FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CYNTHIA HEFLER, age 67, of Westwego, was sentenced today after previously pleading guilty to a one-count Bill of Information for conspiring to commit bank fraud.
U.S. District Judge Kurt D. Engelhardt sentenced HEFLER to 5 years of probation and ordered her to pay $16,851 in restitution.
According to court documents, HEFLER, worked as the office manager for A & H Armature Works, Inc. In her capacity as office manager, HEFLER handled the company’s accounts receivable and embezzled from the company business bank accounts at First American Bank. HEFLER conspired with another person to steal the company’s funds in order to help pay off her credit card debt accrued through gambling.
The case was investigated by the United States Secret Service, New Orleans Field Division and prosecuted by Assistant United States Attorney Loan A "Mimi" Nguyen.
West Chicago Man Sentenced to 10 Years in Federal Prison for Transporting A Minor Interstate for Criminal Sexual PurposesRead the Press Release
CHICAGO ― A West Chicago man was sentenced Monday to the maximum of 10 years in federal prison for transporting a minor for criminal sexual purposes. The defendant, NICACIO JAIMES-MORENO, 52, pled guilty in October 2014, to one count of knowingly transporting a minor interstate with the intent to engage in sexual activity. The defendant has been in federal custody since the filing of charges August 2013.
At the sentencing hearing, a victim impact statement was read to U.S. District Judge John J. Tharp describing the traumatic damage that Jaimes-Moreno inflicted upon the victim’s life. “The defendant engaged in serious criminal conduct that has caused lasting and immeasurable harm to his victim,” Assistant U.S. Attorney Matthew Ebert argued in seeking the highest sentence possible in the Government’s Sentencing Memorandum. “Further compounding the trauma inflicted by defendant, he was a parental figure to the victim, and she was very much in defendant’s custody, care, and supervisory control throughout the time defendant was sexually assaulting her.”
According to court documents, the defendant began sexually abusing the victim at age 11 and continued the abuse for over four years in various places the defendant lived with the victim and her mother throughout Mexico, Oklahoma, Indiana and Illinois; all while not allowing the victim to attend school. Further, court records describe that during the years the defendant was sexually assaulting the victim, he prevented her from telling anyone that he was assaulting her and she was only allowed outside when chaperoned by defendant.
Judge Tharp imposed the maximum sentence of 10 years in prison. Jaimes-Moreno was also ordered to three years supervised court supervision but is subject to deportation upon release from custody because he is not a United States citizen. He must serve at least 85 percent of his sentence. There is no parole in the federal prison system.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorneys Matthew Ebert and Rachel Cannon.
Washington, D.C., Police Officer Indicted for Tax FraudRead the Press Release
An indictment was unsealed yesterday in the U.S. District Court in the District of Columbia that charges a Washington, D.C., Metropolitan Police Department (MPD) officer with obstructing and impeding the Internal Revenue Service (IRS) and evading his federal income taxes for 2009 and 2010, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Jamal A. Adams, also known as Ishmeal Heru-Bey, failed to file federal income tax returns for 2005 through 2012 while he was employed as a MPD officer and earning income. During this time period, Adams submitted IRS forms falsely claiming to be exempt from federal income tax withholding to the MPD. In 2010, he filed false documents signed under the penalties of perjury with the U.S. Bankruptcy Court for the District of Columbia in which he failed to report the tax debts that he owed to the IRS.
If convicted, Adams faces a total statutory maximum sentence of 13 years in prison, plus a fine of up to $250,000 per count of conviction.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jeffrey McLellan and Erin Pulice of the Tax Division, who are prosecuting the case.
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.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Volusia County Man Pleads Guilty to Producing Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that William A. Harvey (50, DeLand) has pleaded guilty to producing child pornography. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison, and a potential life term of supervision. His sentencing hearing has been scheduled for June 11, 2015. Harvey was indicted on December 23, 2014.
According to court documents, Harvey produced child pornography at his residence on May 5, 2014. His victim was a 16-year-old autistic girl. Harvey took several photographs of the victim engaged in sexually explicit conduct. The girl told another individual the next day what had happened. Law enforcement was contacted and a state search warrant was executed on May 29, 2014. During the execution of the search warrant, officers found a computer and an external hard drive in Harvey’s bedroom. A subsequent forensic examination of the computer and hard drive revealed 20 pornographic images of the victim. The victim stated that Harvey had used a purple camera to take the photographs of her. That camera was also found during the search.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the DeLand Police Department. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Vincent H. Cohen, Jr. Takes Office as Acting U.S. AttorneyRead the Press Release
WASHINGTON – Vincent H. Cohen, Jr. took office today as Acting United States Attorney for the District of Columbia. He succeeds Ronald C. Machen Jr., who resigned after serving more than five years in office.
Mr. Cohen, 44, a native Washingtonian, graduated with honors from Syracuse University in 1992 and obtained his juris doctorate from Syracuse University School of Law in 1995.
Mr. Cohen had been the Office’s Principal Assistant U.S. Attorney since July 2010, when he was named to that position by then- U.S. Attorney Machen. He first joined the U.S. Attorney’s Office in 1997 following his hiring by then-U.S. Attorney Eric Holder. Mr. Cohen handled criminal and civil matters until 2003, when he left the office for private practice.
In private practice, Mr. Cohen first worked at Hogan & Hartson (now Hogan Lovells), specializing in white-collar criminal litigation and employment law. While at Hogan & Hartson, he worked pro bono in 2005 for the International Criminal Tribunal for Rwanda, which investigated war crimes. He was joined in this work by Loretta E. Lynch, who was then a partner at the firm and who is now President Obama’s nominee to succeed Eric Holder as Attorney General of the United States.
Mr. Cohen later became a partner at Schertler & Onorato, where his practice included the representation of individuals and corporations in all aspects of criminal and civil litigation. While in private practice, Mr. Cohen was named one of the “Nation’s Best Advocates: 40 Lawyers Under 40” by the National Bar Association. He has served as General Counsel and active member of 100 Black Men of Greater Washington, Inc., an organization focused on improving the quality of life of African-Americans in the Washington, D.C. metropolitan area through programs focusing on health and wellness, economic empowerment, education, and mentoring.
Vienna Attorney Sentenced for Wilful Failure to Pay TaxesRead the Press Release
ALEXANDRIA, Va. – An attorney from Vienna, Virginia, who failed to pay his taxes for three years and instead spent hundreds of thousands on personal expenses for himself and his family, was sentenced today to 12 months and one day in prison followed by three years of supervised release for willful failure to pay federal income taxes. The court also ordered him to pay $451,955 in restitution to the Internal Revenue Service.
William M. Weisberg, 53, pled guilty on Dec. 13, 2014, to three counts of willful failure to pay personal income taxes. According to court documents, from 2008 through 2010, Weisberg was a practicing attorney who filed his tax returns for those years, but failed to pay his taxes for 2008 and 2010, and paid only a portion of his taxes for 2009. During that same period, however, he paid approximately $250,000 to rent a house in Vienna, $150,000 for private and parochial schools for his two children, $35,000 for maid service, and $130,000 for travel and entertainment. In addition, when the IRS tried to work with Weisberg in 2010 to obtain the money he owed, Weisberg falsified a document from his law firm, which told the IRS that the firm was withholding money from his paychecks to give to the IRS, when, in fact, no money was being withheld.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and, Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigations, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
This case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney Jack Hanly prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-CR-380.
Veteran Sentenced for Wrongful Receipt of Benefits Based on Falsified Military RecordsRead the Press Release
BOSTON – A Wakefield veteran was sentenced yesterday for fraudulently receiving $174,000 in benefits paid to him based upon falsified Vietnam War service records.
Albert L. Seely, 67, was sentenced by U.S. District Court Judge Rya W. Zobel to six months in prison, three years of supervised release, and ordered to pay $174,000 in restitution to the Veteran’s Administration. Seely pleaded guilty in December 2014.
Seely, a former U.S. Marine, was deployed to Vietnam and served there from 1966 to 1967. In December 1970, Seely filed his discharge papers with the Veterans Benefit Administration (VBA) and misrepresented the dates and places of his deployment in Vietnam. He also falsely listed numerous commendations, including two Purple Hearts, a Vietnam Cross of Gallantry, a Bronze Star, and a Silver Star. In March 1999, Seely applied for and received VBA disability payments based upon his false claims of combat and valor. He ultimately fraudulently obtained $174,656 in government benefits. In February 2014, the VBA terminated his benefits after his fraud was revealed.
United States Attorney Carmen M. Ortiz and Jeffrey G. Hughes, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit.
U.S. Attorney Charges 27 in East Texas Drug Trafficking OrganizationRead the Press Release
TYLER, Texas – U.S. Attorney John M. Bales announced today that 27 individuals have been indicted following a lengthy investigation into a drug trafficking organization dealing methamphetamine in the Eastern District of Texas.
On Mar. 14, 2015, a federal grand jury returned a sealed indictment charging 27 individuals with conspiracy to possess with intent to distribute methamphetamine.
A combined task force of federal, state and local law enforcement began executing federal arrest warrants and search warrants this week as a result of the investigation. According to the indictment, beginning in July 2014, the defendants conspired to distribute at least 1.5 kilograms of methamphetamine in the Jacksonville, Texas and Cherokee County area. During the investigation, agents conducted about 40 controlled buys of over $65,000 worth of methamphetamine. The drug trafficking organization uses a network of drug couriers, distributors and multiple sources of supply bringing methamphetamine to Cherokee County, Angelina County, Marshall, Texas and into Louisiana. The indictment also charges two of those defendants with being criminal aliens unlawfully present in the United States after having been deported and four with firearms violations.
If convicted, the defendants each face a minimum of 10 years and up to life in federal prison.
This investigation is being led by the Federal Bureau of Investigation, the Jacksonville Police Department, and the Cherokee County Sheriff’s Office with assistance from multiple federal, state, and local agencies. Assistant U.S. Attorney Richard Moore is prosecuting the case.
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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ATTACHMENT
U.S. Attorney Charges 27 in East Texas Drug Trafficking Organization:
Subjects Arrested April 1, 2015
- Jose Luis Servin-Escalera, 32, of Jacksonville, Texas
- Felipe Gonzales, 31, of Jacksonville, Texas
- Juan Armando Servin, 28, of Jacksonville, Texas
- Javier Secara Servin, 39, of Jacksonville, Texas
- Jose Alfredo Servin, 31, of Jacksonville, Texas
- Flavio Fernando Balderas, 46, of Jacksonville, Texas
- Gerardo Servin Escalera, 29, of Jacksonville, Texas
- Jose Juan Garcia, 32, of Jacksonville, Texas
- Johnny Ray Johnston, 49, of Jacksonville, Texas
- Austin Tamas Gipson, 20, of Rusk, Texas
- Milton Cynell McFarland, 44, of Jacksonville, Texas
- James Carlos Simms, 33, of Jacksonville, Texas
- Toyn Bernard McCuin, 29, of Jacksonville, Texas
- Vandorus Tranode Horn, 35, of Jacksonville, Texas
- Raul Hernandez, Jr., 25, of Jacksonville, Texas
- Jessica Lee Wolf, 32, most recently of Bullard, Texas
- Penny Ann King, 41, of Lufkin, Texas
An indictment or arrest is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Co-defendants Sentenced to A Total of 13 Years and 10 Months in Prison for Kidnapping Texas WomanRead the Press Release
Fayetteville, Arkansas – Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Michael Roberts, age 25, of Bella Vista and Jason Petitt, age 25, of Fayetteville, were sentenced today on one count each of Conspiracy to Commit Kidnapping. Roberts was sentenced to 120 months in prison, five years of supervised release, and was ordered to pay a $3,500.00 fine and $1,832.00 in restitution to be paid jointly and severally with the co-defendants. Petitt was sentenced to 46 months in prison, three years of supervised release, and was ordered to pay a $2,000.00 fine and $1,832.00 in restitution to be paid jointly and severally with the co-defendants. They, along with Theron Vance, age 22, of Rogers, were indicted by a federal grand jury on August 13, 2014. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
U.S. Attorney Eldridge commented, “With the sentences announced today, it is our hope that the victim in this case can rest easier knowing that justice has prevailed over the terror that she once faced. The elaborate planning that these defendants went to in order to keep her from testifying against one of them is unthinkable. We will continue to hold those that commit these violent crimes accountable so that the residents of the Western District of Arkansas can live in a community free from fear.”
"Roberts and Petitt terrorized the victim and have earned their place in a federal prison,” commented Special Agent in Charge David T. Resch with the FBI in Little Rock. “We are proud of our partnership with the United States Attorney, the Bentonville Police Department, and the Dallas Police Department in bringing them to justice.”
According to court records, on June 14, 2014, the Bentonville Police Department received a 911 call from an employee at the Walmart Supercenter that a woman had been kidnapped. Once officers arrived on scene they were able to determine the victim entered the restroom at Walmart and handed an employee a note informing them that she had been kidnapped from Dallas, Texas by her ex-boyfriend Michael Roberts. By the time officers arrived at Walmart, Roberts had fled the scene. According to an interview of the victim, the previous night between 6:00 p.m. and 6:30 p.m. she was walking into her apartment in Dallas, Texas when she was attacked from behind by Michael Roberts and physically assaulted. Theron Vance, a co-defendant in this case, was present and assisted Roberts by acting as the lookout. Roberts forced the victim into her apartment and began restraining and choking her when Vance entered the apartment and identified himself as an FBI agent. The victim was told she could either go with the two men or she would be killed. The victim cooperated and packed a bag with her belongings. She was also told to write a note to her roommate explaining her disappearance. She did so, but also left another note in the refrigerator that said “call 911.” The victim was then transported against her will to the Western District of Arkansas in Bentonville by Roberts and Vance. Prior to leaving the Dallas area, Vance took the victim’s phone and broke it on the sidewalk, making it inoperable. On the way to Bentonville the victim advised they stopped in Eufaula, Oklahoma at a gas station, where she left another note in the restroom identifying the vehicle in which she was being transported (this note was later recovered by Oklahoma Police). The victim was brought to the residence of Michael Roberts, located at 807 Southwest Krug in Bentonville during the early morning hours of June 14th. Later that day the victim was taken to Walmart where the employee was notified that she had been kidnapped.
While interviewing the victim officers noted that her lip appeared to be busted on the inside of her mouth and she had a large bruise on her right forearm. According to the victim, she was told by Roberts and Vance that she had been kidnapped because they did not want her to testify against Roberts in a pending criminal case in Texas and that they were going to keep her until the proceedings were over. The victim was able to positively identify Vance as one of the individuals that kidnapped her and transported her from Dallas, Texas to Bentonville, Arkansas against her will.
As the Bentonville Police Department was investigating the case, Detectives with the Dallas Police Department searched the victim’s apartment and located the two notes and also found a blood stain on the carpet. Bentonville Detectives then executed a search warrant at defendant Roberts’ residence, where they located the victim’s bloody clothing. Prior to executing the warrant, officers located Petitt at the residence. During his interview with detectives, Petitt informed officers that he and Roberts had been roommates, that he knew Roberts had an ex-girlfriend in Dallas that he hated, and that Roberts told him he was going to “take care of it.” Petitt also admitted to assisting Roberts in the commission of the kidnapping. Specifically, Petitt stated that Roberts and Vance had been planning to abduct and kill the victim; Petitt admitted that Roberts gave him his debit card, car, and cell phone to make it look like Roberts never left town; Petitt admitted that he did use Roberts’ cell phone and debit card to establish an alibi for him and make it appear as though Roberts was still in the Bentonville area while Roberts and Vance traveled to Dallas to kidnap the victim. Roberts and Petitt were both arrested on September 5, 2014. Roberts pleaded guilty November 3, 2014, and Petitt pleaded guilty October 21, 2014.
On June 16, 2014, defendant Vance was located and arrested. Subsequent to being advised of and waiving his Miranda rights he admitted his role in the kidnapping. Specifically, Vance admitted that approximately four months prior to the kidnapping that he and Roberts began planning; Vance admitted that a week prior to the abduction, he and Roberts drove to Dallas to scout the area; Vance admitted to wearing a fake FBI badge during the abduction and breaking the victim’s cell phone so they would not be tracked. In addition, Vance disclosed to investigators the location of several items used in the kidnapping, including a blonde wig, razor blades, zip ties and a book on the human anatomy. These items were subsequently recovered by investigators. Furthermore, Vance’s vehicle was used to transport the victim from Texas to Arkansas.
This case was investigated by the Bentonville Police Department, The Federal Bureau of Investigations, and the Dallas Police Department. Assistant United States Attorney David Harris and Assistant United States Attorney Kim Davis prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Tuba City Man Found Guilty of Killing 10-Week-Old Infant DaughterRead the Press Release
PHOENIX – Ken Jermaine Fowler, 30, of Tuba City, Ariz., a member of the Navajo Nation, was found guilty by a federal jury of involuntary manslaughter and assault resulting in serious bodily injury of a minor. The case was tried before U.S. District Judge G. Murray Snow from March 3 - 26, 2015. The defendant was remanded into custody after trial. Sentencing is set before Judge Snow on June 29, 2015.
The evidence at trial showed that Fowler assaulted the ten week old infant on the Navajo Nation Indian Reservation while she was alone in his care. The assault caused massive brain injury that resulted in her death four days later.
A conviction for assault resulting in serious bodily injury of a minor carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison, a $250,000.00 fine, or both.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8156-PCT-GMS
RELEASE NUMBER: 2015-028_Fowler
Teacher’s Union Negotiator Sentenced for FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Frank Aquila, 76, of Amherst, NY, who was convicted of fraud involving a scheme to defraud the Buffalo Educational Support Team (BEST), a union representing approximately 900 teacher’s aides and assistants in the City of Buffalo School District, was sentenced to 12 months in prison by Senior U.S. District Judge William M. Skretny.Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that between March 2006 and December 2011, the defendant served as the chief negotiator for BEST during 2008 collective bargaining negotiations with the City of Buffalo School District. Aquila, as chief negotiator for BEST, refused to reach final agreement with the district on a collective bargaining agreement until and unless the district agreed to allow BEST to (1) select its own insurance broker; (2) make commission payments totaling $135,000 per year for four years to an insurance broker selected by BEST; and (3) agreed to make four payments to BEST of $65,000 each for costs and expenses associated with administering health insurance benefits for its members.
The defendant failed to disclose to the district or BEST that he would share in commissions paid to the insurance broker selected by BEST, and in payments made to BEST to administer health insurance benefits for its members. Aquila unlawfully obtained $332,500.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office.
Tahlequah Man Sentenced to 48 Months Probation for Obtaining Possession of A Controlled Substance by DeceptionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that ROBERT JAMES KOHNE, age 24, of Tahlequah, Oklahoma, was sentenced to 4 years of probation for Obtaining Possession of a Controlled Substance by Deception, in violation of Title 21, United States Code, Section 843(a)(3).
The charge is a result of an investigation by the Oklahoma Bureau of Narcotics and was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The defendant was indicted in July, 2014 and pled guilty in October, 2014.
The Information alleged that on or about March 21, 2013, in the Eastern District of Oklahoma, the defendant knowingly and intentionally obtained possession of Oxycodone, a Schedule II Controlled Substance, by deception, by providing a Walmart pharmacy clerk with a false prescription for Oxycodone.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Two Men Sentenced for Federal Drug ChargesRead the Press Release
TYLER, Texas – A Tyler resident, along with his Houston co-conspirator, have been sentenced to federal prison, announced U.S. Attorney John M. Bales today.
Juan Gutierrez-Mojica, 44, of Tyler, was sentenced to 180 months for conspiracy to possess with the intent to distribute methamphetamine and cocaine, and money laundering during an appearance before United States District Judge Michael H. Schneider. His co-conspirator, Norberto Pineda, 41, of Houston, was sentenced to 70 months for conspiracy to possess with the intent to distribute cocaine and money laundering.
Gutierrez-Mojica and Pineda were indicted along with 16 co-defendants on April 23, 2014. According to information presented in court, the conspiracy involved the transportation of multiple kilograms of cocaine from Houston to individuals in Longview and Tyler. Gutierrez-Mojica also acquired methamphetamine and cocaine from suppliers in Dallas and Houston, which he then distributed. In addition to their illicit drug conspiracy activities, the pair utilized a bank account to deposit proceeds from the sale of drugs. Gutierrez-Mojica entered a guilty plea on October 14, 2014. Pineda pleaded guilty on November 4, 2014.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Springfield Man Pleads Guilty to Heroin DistributionRead the Press Release
BOSTON – Jose Vargas, 29, of Springfield, pleaded guilty yesterday in U.S. District Court in Springfield to conspiracy to possess with intent to distribute and to distribute heroin, and possession with intent to distribute and distribution of heroin. U.S. District Judge Mark G. Mastroianni scheduled sentencing for July 2, 2015.
At his change of plea hearing, Vargas admitted that on Oct. 6, 2013, he sold heroin to an undercover federal agent in Springfield. He also admitted that, during the transaction, he handed the heroin to the undercover agent just before his co-conspirator accepted $400 in cash in return for the drugs. The drug purchase was captured on video.
The charge of conspiracy to possess with intent to distribute heroin provides a sentence of no greater than 20 years in prison, 3-5 years supervised release and a fine of $1 million. The charge of distribution of heroin provides a sentence of no greater than 20 years in prison, 3-5 years 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.
Six Individuals Charged in String of Armed Home Invasion Robberies that Targeted Victims of Indian and Asian AncestryRead the Press Release
Six individuals were charged today in connection with their involvement in an armed robbery crew that conducted home invasion robberies in Michigan and Texas, principally targeting victims of Indian and Asian ancestry.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division, Acting Special Agent in Charge Katherine J. Greer of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s (ICE-HSI) Dallas Field Office, Chief John Seto of the Ann Arbor, Michigan, Police Department, Sheriff Jerry L. Clayton of the Washentaw County, Michigan, Sheriff’s Department and Director Todd L. Mutchler of Canton, Michigan, Public Safety made the announcement.
“The armed robberies allegedly committed by this organized criminal group were horrific home invasions that spread fear through Asian and Indian communities across multiple states,” said Assistant Attorney General Caldwell. “This indictment is the first step in holding responsible those accused of carrying out armed robberies that were both life threatening and ethnically targeted.”
“As alleged in the indictment, these defendants used online research to target their victims from a distance, traveled to their homes, and then carried out the robberies while the victims were at home,” said U.S. Attorney McQuade. “The defendants either broke in or used a female decoy to knock, luring victims to open the door. Once the door was open, the robbers would charge inside with guns and threats of violence, round up all the adults and children into one room, and bind them with duct tape before ransacking the house and stealing valuables. We are grateful for the outstanding work of federal, state and local law enforcement in various jurisdictions to connect the dots and put this case together.”
“This multistate investigation serves as an example of the successful collaboration between federal, state and local law enforcement to bring justice to bear upon those who have wreaked havoc upon our neighborhoods and victimized families in their own homes,” said Special Agent in Charge Abbate. “Combating violent crime is among the highest of priorities for the FBI. There is nothing more important than protecting our communities and keeping law abiding citizens safe in their own homes. The FBI, along with our law enforcement partners, will maintain its resolve and continue the fight against violent criminal offenders.”
Chaka LeChar Castro, 40, Juan Olaya, 35, and Octavius Scott, 22, all of Houston, and Jakeyra Augustus, 21, of La Marque, Texas, are each charged with engaging in a RICO conspiracy, four counts of assault with a dangerous weapon in aid of racketeering, and four counts of use and carrying of a firearm in furtherance of a crime of violence. Rodney Granger, 19, and Johnisha Williams, 19, both of Houston, are each charged with engaging in a RICO conspiracy. All of the defendants are currently in custody.
According to the indictment, the defendants committed four armed home invasion robberies in the greater Ann Arbor area over the Thanksgiving weekend in 2014, as well as additional armed robberies in the greater Dallas area in early December 2014. The crews allegedly utilized a similar modus operandi in each of the robberies. According to the indictment, they typically used female decoys to knock on the victims’ doors and gain entry, or they merely forced entry themselves. Once inside, members of the robbery crew—disguised with bandanas and masks—allegedly brandished firearms to gain control of their victims, including children, and then forced them at gunpoint into a single room of the home. Some members of the crew were allegedly assigned to bind the victims with duct tape, or otherwise maintain control over them. At the same time, other members of the crew allegedly ransacked the homes in search of cash, jewelry and electronics.
According to allegations in the indictment, Castro was the leader of the enterprise. In that capacity, she allegedly coordinated with Olaya to generate lists of robbery targets by conducting research on the Internet, among other methods, to identify families of Asian and Indian ancestry. Castro then assigned crews to carry out the armed robberies of these targeted families. Olaya allegedly led the robberies themselves, and Scott, Augustus, Granger and Williams were allegedly members of the robbery crew.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by a collaboration of local, state and federal law enforcement in Michigan and Texas, including the FBI, ICE-HSI, Washtenaw County Sheriff’s Office, the Ann Arbor Police Department and the Canton Police Department. The case is being prosecuted by Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Douglas C. Salzenstein of the Eastern District of Michigan.
Castro Indictment
Six Individuals Charged in String of Armed Home Invasion Robberies That Targeted Victims of Indian and Asian AncestryRead the Press Release
Six individuals were charged today in connection with their involvement in an armed robbery crew that conducted home invasion robberies in Michigan and Texas, principally targeting victims of Indian and Asian ancestry.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Division, Acting Special Agent in Charge Katherine J. Greer of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s (ICE-HSI) Dallas Field Office, Chief John Seto of the Ann Arbor, Michigan, Police Department, Sheriff Jerry L. Clayton of the Washentaw County, Michigan, Sheriff’s Department and Director Todd L. Mutchler of Canton, Michigan, Public Safety made the announcement.
“The armed robberies allegedly committed by this organized criminal group were horrific home invasions that spread fear through Asian and Indian communities across multiple states,” said Assistant Attorney General Caldwell. “This indictment is the first step in holding responsible those accused of carrying out armed robberies that were both life threatening and ethnically targeted.”
“As alleged in the indictment, these defendants used online research to target their victims from a distance, traveled to their homes, and then carried out the robberies while the victims were at home,” said U.S. Attorney McQuade. “The defendants either broke in or used a female decoy to knock, luring victims to open the door. Once the door was open, the robbers would charge inside with guns and threats of violence, round up all the adults and children into one room, and bind them with duct tape before ransacking the house and stealing valuables. We are grateful for the outstanding work of federal, state and local law enforcement in various jurisdictions to connect the dots and put this case together.”
“This multistate investigation serves as an example of the successful collaboration between federal, state and local law enforcement to bring justice to bear upon those who have wreaked havoc upon our neighborhoods and victimized families in their own homes,” said Special Agent in Charge Abbate. “Combating violent crime is among the highest of priorities for the FBI. There is nothing more important than protecting our communities and keeping law abiding citizens safe in their own homes. The FBI, along with our law enforcement partners, will maintain its resolve and continue the fight against violent criminal offenders.”
Chaka LeChar Castro, 40, Juan Olaya, 35, and Octavius Scott, 22, all of Houston, and Jakeyra Augustus, 21, of La Marque, Texas, are each charged with engaging in a RICO conspiracy, four counts of assault with a dangerous weapon in aid of racketeering, and four counts of use and carrying of a firearm in furtherance of a crime of violence. Rodney Granger, 19, and Johnisha Williams, 19, both of Houston, are each charged with engaging in a RICO conspiracy. All of the defendants are currently in custody.
According to the indictment, the defendants committed four armed home invasion robberies in the greater Ann Arbor area over the Thanksgiving weekend in 2014, as well as additional armed robberies in the greater Dallas area in early December 2014. The crews allegedly utilized a similar modus operandi in each of the robberies. According to the indictment, they typically used female decoys to knock on the victims’ doors and gain entry, or they merely forced entry themselves. Once inside, members of the robbery crew—disguised with bandanas and masks—allegedly brandished firearms to gain control of their victims, including children, and then forced them at gunpoint into a single room of the home. Some members of the crew were allegedly assigned to bind the victims with duct tape, or otherwise maintain control over them. At the same time, other members of the crew allegedly ransacked the homes in search of cash, jewelry and electronics.
According to allegations in the indictment, Castro was the leader of the enterprise. In that capacity, she allegedly coordinated with Olaya to generate lists of robbery targets by conducting research on the Internet, among other methods, to identify families of Asian and Indian ancestry. Castro then assigned crews to carry out the armed robberies of these targeted families. Olaya allegedly led the robberies themselves, and Scott, Augustus, Granger and Williams were allegedly members of the robbery crew.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by a collaboration of local, state and federal law enforcement in Michigan and Texas, including the FBI, ICE-HSI, Washtenaw County Sheriff’s Office, the Ann Arbor Police Department and the Canton Police Department. The case is being prosecuted by Trial Attorney Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher Graveline and Douglas C. Salzenstein of the Eastern District of Michigan.
Seven Springfield residents among 13 indicted for $340,000 in false tax claimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that seven Springfield, Mo., residents are among 13 defendants who have been indicted for their roles in a conspiracy to receive more than $340,000 in fraudulent income tax refunds.
Cherie Christine Dupuis, 42, Claudia Dorsey, 33, Travis L. Ashmead, 29, Amanda Leigh Boyd, 32, Johnny L. Cooper, 25, Lisa Lorre Dehaven, 34, and Jeannie Marie Rhodes, 33, all of Springfield; Shawna Marie Hughey, 36, of Joplin, Mo.; Delbert L. Allen, 36, of Pleasant Hope, Mo.; William Joseph Coonce, 28, of Otterville, Mo.; Asia Michelle Couchman, 26, of Oak Grove, Mo.; Heather Nicole Drennen, 31, of Cameron, Mo.; and Jeannette R. Dunn, 47, of Huntsville, Ark., were charged in a 30-count indictment returned by a federal grand jury in Springfield on Tuesday, March 31, 2015.
The federal indictment alleges that 12 of the 13 defendants participated in a conspiracy to defraud the government by filing false claims for income tax refunds from February 2009 to March 2012, and all of the defendants filed false claims for income tax refunds, which resulted in them receiving a total of $340,630 in fraudulent refunds.
According to the indictment, conspirators obtained the identification information of individuals, including their names and Social Security numbers, and used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators allegedly shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information, the indictment says, to enable them to falsely claim dependents on their returns.
According to the indictment, Dupuis received a $5,135 refund in 2009, a $9,174 refund in 2010, a $9,437 refund in 2011 and a $10,507 refund in 2012. All of these refunds were fraudulent, the indictment says, because they claimed employment income and withholdings that were false. Other conspirators received fraudulent refunds of similar or larger amounts, the indictment says, then gave Dupuis as much as half of their illegal proceeds.
Dorsey allegedly made false claims by filing fraudulent income tax returns for herself and two others. Dorsey also allegedly allowed Dupuis to use her laptop computer to file false federal income tax returns and allegedly allowed Dupuis to list her mailing address on false federal income tax returns filed by the defendants. Conspirators allegedly provided false and misleading statements to law enforcement officers when they were questioned about their roles and actions in the conspiracy.
Drennen is charged in a single count of making a false claim by filing a fraudulent income tax return in the name of another person, claiming a refund to which she was not entitled. In addition to the conspiracy, each of the other defendants is charged in various counts of making false claims by filing fraudulent income tax returns.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
Settlement Agent Found Guilty of Federal Charges in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
WASHINGTON – Edward Dacy, 76, most recently of West Melbourne, Fla., has been found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.
The verdict, returned March 25, 2015, was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector General, Federal Housing Finance Agency; Julie DeMello, Acting Special Agent in Charge of the Mid-Atlantic Region of the Office of the Inspector General of the U.S. Department of Housing and Urban Development (HUD-OIG); and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
The verdict followed a trial in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton scheduled sentencing for June 19, 2015. This completes a three-year investigation relating to this mortgage fraud scheme. A total of nine individuals have admitted their guilt through guilty pleas or were found guilty after trial.
“Mortgage fraud victimizes innocent homeowners and weakens our economic future,” said Acting U.S. Attorney Cohen. “This settlement agent was supposed to be a check on mortgage fraud, but he instead joined this multi-million dollar rip-off scheme. This guilty verdict demonstrates our commitment to bringing justice to the fraudsters who fall lure to the promise of easy money and in the process harm innocent people and businesses.”
“Edward Dacy is a prime example of a real estate professional who believes that he can act above the law, regardless of what loss that causes to others,” said Special Agent in Charge Acevedo. “However, justice has prevailed, and Dacy has appropriately been found guilty. Our office is committed to ferreting out mortgage fraud directed at Fannie Mae and Freddie Mac, which subsequently impacts every American taxpayer.”
“The verdict against Edward Dacy should send a strong message to anyone connected with fraudulently originating FHA insured loans that the United States Department of Housing and Urban Development, Office of Inspector General will aggressively investigate loan origination fraud and seek prosecution when possible,” said Acting Special Agent in Charge DeMello.
“This verdict sends a clear message to the real estate and mortgage business community that law enforcement is united in our efforts to investigate those who bilk financial institutions out of millions of dollars,” said Assistant Director in Charge McCabe. “By joining in the scheme to defraud, which involved false loan applications, forged documents and fraudulent statements, Mr. Dacy took advantage of mortgage lenders and banks by falsely leading them to believe that they were supporting homeownership. Together with our federal, state and local law enforcement partners, the FBI will remain vigilant in investigating mortgage fraud schemes and will hold individuals accountable for their fraud schemes.”
The government’s evidence at trial included testimony from conspirators who were involved in the scheme to defraud banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, and ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.
The trial evidence included information about conspirators who purchased properties in the names of general partnerships. They then recruited individuals, or straw buyers, to re-purchase these same properties for higher amounts, funded by fraudulently obtained mortgage loans, by promising the buyers that they would not be required to: make financial contributions toward the purchase of the properties; pay the monthly mortgage payments or expenses; or maintain the properties. These mortgage loans were obtained by fraudulent statements and documents, according to the evidence, including false loan applications and real estate contracts, phony cashier’s checks and verifications from banks, fabricated tax returns and letters from a Certified Public Accountant, and fraudulent deeds conveying title to the nominee buyers.
According to the trial evidence, Dacy handled the settlements of the real estate transactions. The settlement company received the funding from the mortgage lenders and should have collected the buyers’ cash contributions; it was under the obligation to disburse the money only if all of the mortgage lenders’ conditions were met and the buyers’ financial contributions collected. Only then would the settlement company be authorized to release the lenders’ money, and pay the costs of the closing, the debts of the property or seller, and any other authorized expenses as set forth on the Settlement Statement. According to the evidence, Dacy joined the multi-million dollar fraud conspiracy by managing and overseeing the straw buyers’ settlements of the properties, with knowledge that the straw buyers did not pay the cash contribution as required by the lenders.
In announcing the verdict, Acting U.S. Attorney Cohen, Special Agent in Charge Acevedo, Acting Special Agent in Charge DeMello, and Assistant Director in Charge McCabe commended the work of the Special Agents and analysts from the Offices of Inspector General of the Federal Housing Finance Agency and Department of Housing and Urban Development and the FBI, who investigated the case. They also expressed appreciation for the work of the U.S. Secret Service and the Offices of Inspector General of the Central Intelligence Agency, the Department of Justice, and Department of Homeland Security, which assisted in the investigation. They acknowledged the efforts of those working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Ida Anbarian, Donna Galindo, Corinne Kleinman, Kristy Penny, Tasha Harris, and Heather Sales and Assistant U.S. Attorneys Anthony Saler and Arvind K. Lal, who assisted with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorneys, David A. Last and Virginia Cheatham, who prosecuted the case.
Senator Robert Menendez and Salomon Melgen Indicted for Conspiracy, Bribery and Honest Services FraudRead the Press Release
Robert Menendez, a U.S. Senator, and Salomon Melgen, a Florida ophthalmologist, were indicted today in connection with a bribery scheme in which Menendez allegedly accepted gifts from Melgen in exchange for using the power of his Senate office to benefit Melgen’s financial and personal interests, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division.
“Government corruption – at any level of elected office – corrodes the public trust and weakens our democratic system,” said Assistant Attorney General Caldwell. “It is the fundamental responsibility of the Department of Justice to hold public officials accountable by conducting thorough investigations and seeking an indictment when the facts and the law support it.”
“The job of an elected official is to serve the people,” said Special Agent in Charge Frankel. “The citizens of New Jersey have the right to demand honest, unbiased service and representation from their elected officials at all levels of government. The charges and activity alleged in this indictment are another example of the FBI's commitment to aggressively and tenaciously pursue public corruption in the state of New Jersey.”
Menendez, 61, of Paramus, New Jersey, and Melgen, 60, of Palm Beach, Florida, were indicted in the District of New Jersey for one count of conspiracy, one count of violating the travel act, eight counts of bribery and three counts of honest services fraud. Menendez was also charged with one count of making false statements.
According to allegations in the indictment, between January 2006 and January 2013, Menendez accepted close to $1 million worth of lavish gifts and campaign contributions from Melgen in exchange for using the power of his Senate office to influence the outcome of ongoing contractual and Medicare billing disputes worth tens of millions of dollars to Melgen and to support the visa applications of several of Melgen’s girlfriends.
Specifically, the indictment alleges that, among other gifts, Menendez accepted flights on Melgen’s private jet, a first-class commercial flight and a flight on a chartered jet; numerous vacations at Melgen’s Caribbean villa in the Dominican Republic and at a hotel room in Paris; and $40,000 in contributions to his legal defense fund and over $750,000 in campaign contributions. Menendez never disclosed any of the reportable gifts that he received from Melgen on his financial disclosure forms.
According to allegations in the indictment, during this same time period, Menendez allegedly engaged in three efforts to use his Senate office and staff to advocate on behalf of Melgen’s personal and financial interests. First, Menendez allegedly pressured executive agencies in connection with a conflict between Melgen and the government of the Dominican Republic relating to a disputed contract that Melgen purchased to provide exclusive screening of containers coming through Dominican ports. Second, Menendez allegedly advocated on behalf of Melgen in connection with a Medicare billing dispute worth approximately $8.9 million to Melgen. Third, Menendez allegedly took active steps to support the tourist and student visa applications of three of Melgen’s girlfriends, as well as the visa application of the younger sister of one of Melgen’s girlfriends. Throughout these efforts, Menendez allegedly engaged in advocacy for Melgen all the way up to the highest levels of the U.S. government, including meeting with a U.S. cabinet secretary, contacting a U.S. Ambassador, meeting with the heads of executive agencies and other senior executive officials and soliciting other U.S. Senators, all in order to assist Melgen’s personal and pecuniary interests.
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 FBI. The case is being prosecuted by Deputy Chiefs Peter Koski and J.P. Cooney, and Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section.
Menendez and Melgen Indictment
Saudi Arabian Citizen Pleads Guilty to Physically Assaulting TSA Officer at Orlando International AirportRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Mohammed Abdullah Alomaim (43, Saudi Arabia) today pleaded guilty to physically assaulting a Transportation Security Administration (TSA) officer, a felony under federal law. U.S. District Judge Gregory A. Presnell sentenced Alomaim to the time that he has already served since the offense, and a two-year term of supervised release. As a result of his conviction, Alomaim will be deported from the United States.
According to the plea agreement, on January 18, 2015, Alomaim came into contact with TSA officers at an Orlando International Airport checkpoint. Over the course of approximately two hours, he began behaving erratically, making other visitors at the airport uncomfortable, and repeatedly left his bags unattended. As a TSA officer approached Alomaim to speak with him, he struck the officer in the face. Alomaim was immediately taken into custody.
This case was investigated by the Federal Bureau of Investigation and the Orlando Police Department, with assistance from the Transportation Security Administration. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Readout of Justice Department Officials' Trip to Ferguson, MissouriRead the Press Release
Justice Department spokeswoman Dena Iverson released the following statement today regarding the latest visit to Ferguson, Missouri, by Justice Department officials:
“Members of the Civil Rights Division of the Department of Justice have completed three days of meetings in Ferguson, Missouri, with a broad variety of individuals and community groups regarding the department’s findings in the investigation of the Ferguson Police Department and the next steps for institutional reform. The meetings generated thoughtful and constructive recommendations for changes to address the unconstitutional practices identified by the investigation. Community members were overwhelmingly committed to assist in the effort to achieve meaningful police and court reform as quickly as possible. In the coming weeks, department officials will continue to meet with these and other individuals, including Ferguson police officers, to solicit ideas for potential solutions.
“As department officials with the Civil Rights Division explained to the community groups and individuals with whom they met, the division looks forward to meeting in the coming weeks with Ferguson city leaders to begin to work collaboratively towards sustainable reform in the form of a court enforceable consent decree to achieve the necessary changes. If the city agrees to this process, the Department of Justice stands ready to meet with the city to begin negotiations. If the city does not agree to negotiate a consent decree, the Department of Justice retains the option of filing suit to ensure that the unconstitutional practices identified in our findings are remedied.
“During the meetings with community members and organizations, department officials saw a high level of constructive engagement, thoughtfulness and dedication to meaningful improvement of Ferguson’s police and court system. The department encourages the city to work with these well-intentioned and creative individuals and groups.”