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24 March 2015
Shiprock Man Sentenced to Federal Prison for Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Lorin Nelson Dee, 49, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 30 months in federal prison followed by five years of supervised release for his federal abusive sexual contact conviction.
Dee was arrested in April 2014, on a criminal complaint charging him with aggravated sexual abuse and abusive sexual contact. Dee subsequently was indicted on those two charges on May 7, 2014. According to court filings, Dee forced a Navajo woman to engage in a sexual act on April 23, 2014, at a location within the Navajo Indian Reservation in San Juan County, N.M.
On Dec. 8, 2014, Dee pled guilty to Count 2 of the indictment, charging him with abusive sexual contact. In his plea agreement, Dee admitted using force to sexually abuse the victim by intentionally touching and rubbing her breast on April 23, 2014.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Seven Additional Schuele Boys Gang Members and Associates Charged with Drug TraffickingRead 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 a federal grand jury has returned three separate indictments charging seven additional members and associates of the Schuele Boys Gang, a group which operated in the Schuele Street area of the East Side of Buffalo. The charges, which include conspiracy to distribute and distribute crack cocaine, cocaine and marijuana, carry a maximum penalty of 20 years in prison, and a fine of $1,000,000.“As I have stated many times before, this Office and our law enforcement partners stand ready to remove any organized group of individuals that threatens to harm our community through narcotics trafficking and acts of violence,” said U.S. Attorney Hochul. “Our dismantling of the 10th Street Gang on Buffalo’s West Side and other multiple successful gang prosecutions should serve as a warning that will be aggressive in removing these threats from our neighborhoods.”
Charged in the indictments are:
• Eric Sears, 47, Buffalo
• Andre Jackson, 28, Buffalo
• Tyrell Skipper, 25, Buffalo
• Willie Griffin, 25, Buffalo
• Robert Brown, 52, Buffalo
• Samuel Walker, 50, Buffalo
• Tywone Smothers, 36, Buffalo
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that according to the indictments, between June 2013 and July 2014, the defendants sold controlled substances, including crack cocaine, cocaine and marijuana, primarily on the East Side of Buffalo.
The investigation utilized wire and electronic communications, confidential sources, and physical and video surveillance, to identify conspirators associated with the Schuele Boys Gang distribution network.
In July, 2014, 17 Schuele Boys members and associates were arrested and charged with narcotics trafficking including:
• Antwan Garner, 29, Buffalo
• Aaron Glenn, 41, North Tonawanda
• Jerome Grant, 33, Buffalo
• James Hicks, 44, Buffalo
• Xavier Hill, 42, Buffalo
• Demetrius Holmes, 23, Buffalo
• Damario James, 32, Buffalo
• Fred Johnson, 21, Buffalo
• Ikeem Lyons, 21, Buffalo
• Benjamin Peoples, 25, Buffalo
• Demario Robbins, 23, Buffalo
• Michael Robertson, 24, Buffalo
• Spencer Rogers, 50, Buffalo
• Antwon Steward, 31, Buffalo
• Shawntorrian Travis, 34, Buffalo
• Andre Wise, 36, Buffalo
• Marcel Worthy, 30, Buffalo
The indictments are the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rochester Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Miguel Calixto, 28, of Rochester, NY, who was convicted of possession of a firearm by a convicted felon, was sentenced to 10 years in prison by Chief U.S. District Court Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that on July 2, 2013, Rochester Police officers observed the defendant in possession of a 380 caliber Smith and Wesson semiautomatic pistol. Calixto was previously convicted of a felony weapons offense, and was therefore prohibited from legally possessing a firearm under federal law.
The defendant used the pistol on June 8, 2013 on Wadsworth Street in Rochester to shoot another individual four times, resulting in the victim’s permanent paralysis from the waist down. In conjunction with his plea in federal court, Calixto was convicted of Assault in the First Degree in Monroe County Court.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rochester Man Sentenced for Drug TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Adminda Poole, a/k/a Adminda Lopez, 39, of Rochester, NY, who was convicted of conspiracy to distribute, and possession with intent to distribute, heroin and cocaine, was sentenced to 125 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that the defendant participated in a conspiracy between December 2013 and February 2014, to sell at least 200 grams of heroin and a kilogram of cocaine in Rochester. On February 7, 2014, Rochester police executed a search warrant at a residence on Clay Avenue in Rochester used by Poole and found heroin and cocaine, as well as drug paraphernalia. In addition officers found $36,822 in cash. The defendant agreed to the forfeiture of the cash as part of her sentence.
The sentencing is the culmination of an investigation on the part of the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rhode Island Man Pleads Guilty in Federal Court to Sex TraffickingRead the Press Release
PROVIDENCE, R.I. – Ricky Wallace, a/k/a Justice, 33, of Pawtucket, R.I., pleaded guilty in federal court in Providence on Monday to trafficking a 17-year-old woman from the Boston area to Pawtucket for the purposes of commercial sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Pawtucket Police Chief Paul King; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; United States Marshal Jamie A. Hainsworth; and Arlington, Mass., Police Chief Frederick Ryan.
Wallace admitted to the court that in addition to trafficking the 17-year-old, he also brought a 20-year-old woman from the Boston area to Rhode Island where she posed in photos posted on Backpage.com and offered her for commercial sexual activity.
According to court documents, the 17-yerar-old victim was taken from South Station in Boston in the early morning hours of August 19, 2014, and driven to Rhode Island for the purposes of being trafficked for commercial sexual activity. According to the victim, she was driven to the same Pawtucket residence where she was located on August 25, 2014, and rescued by FBI agents, Pawtucket Police and Central Falls Police, after she contacted a group home in the Boston area in which she resided. The group home contacted the FBI.
Additionally, according to court documents, on August 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge, Mass. Instead of driving her to Cambridge, she was driven to Pawtucket and then to a motel in Seekonk, Mass., where she was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. The next day the woman was able to get away from Wallace and had contact with Seekonk Police. Rhode Island State Police also assisted in the investigation.
Appearing before U.S. District Court Judge Mary M. Lisi, Wallace pleaded guilty to one count each of conspiracy, sex trafficking of a child, transportation of a minor for sexual activity, and two counts of transportation of an individual for sexual activity.
Wallace, who has been detained since his arrest on August 29, 2014, is scheduled to be sentenced on June 25, 2015.
The case is being prosecuted in federal court by Assistant U.S. Attorney Pamela E. Chin. The U.S. Attorney’s Office is also working in conjunction with the Rhode Island Department of Attorney General in the prosecution of this matter. Wallace also faces charges in Rhode Island state court in an unrelated matter.
The FBI, Pawtucket Police and Rhode Island State Police were assisted in the investigation of this matter by the United States Marshal Service and the Arlington, Mass., Police Department.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Opening Statement of Acting Deputy Attorney General Sally Quillian Yates at US Senate Confirmation HearingRead the Press Release
Acting Deputy Attorney General Sally Quillian Yates released the following statement today at the opening of the U.S. Senate confirmation hearing:
“Chairman Grassley, Ranking Member Leahy and Members of the Committee, it is an honor to appear before you today. I am very grateful for this opportunity and for President Obama’s nomination. I would also like to thank Senator Isakson, Senator Perdue and Congressman Lewis for their kind and generous introductions. They have led remarkable lives of service to Georgia and to our country, and I am humbled by their confidence in me.
“It is particularly meaningful for me to appear before you today surrounded by my family – my husband Comer, my daughter Kelley and my son Quill. I am not only grateful to all of them for their love and support, but I am also incredibly proud of each of them. My husband Comer, a lawyer by training, followed his heart and runs a school for children with learning disabilities and children who are deaf and hard of hearing. My daughter Kelley is in her first year as a special education teacher. My son, Quill, is a sophomore in college where he is studying political science and environmental policy.
“My only regret is that my parents, both of whom have passed away, are not here today. They instilled in me a love of the law and a call to public service. I come from a long line of lawyers on both sides of my family – lawyers and Methodist preachers. Even my grandmother was a lawyer; in fact she was one of the earliest women admitted to the Georgia Bar. And even though she was probably the smartest one in the bunch, law firms didn’t hire many women to practice law in those days, so she was a legal secretary instead. My father and his father before him were state appellate court judges, and they demonstrated by example that the law is an instrument for ensuring that right is done in the world. My father died shortly before I graduated from law school, but I vividly recall him counseling me while I was in school to make sure that the work I chose when I graduated was more than just a job or a way to earn a living. Rather, he believed that we have an obligation to use our legal education for a greater good and he encouraged me to find a path where I could make a real difference in the world.
“That path took me to the Department of Justice. I joined the U. S. Attorney’s Office in Atlanta in the fall of 1989, and the Department of Justice has been my home ever since. When I joined the U.S Attorney’s Office, I certainly didn’t expect that I would still be with the Department of Justice 25 years later. But once I experienced the privilege of representing the people of the United States – of doing what I believed was right, and fair and just in every case – anything else would have felt like just a job.
“Bob Barr, then the U.S. Attorney of the Northern District of Georgia, entrusted me with my first position in the department – that of a line prosecutor. I began the way all young prosecutors do – by investigating and trying cases; by working with agents and witnesses and victims to keep my fellow citizens safe and to ensure that those who harmed our community were held accountable. Over time, my cases became more complex and I assumed leadership positions within the office – Chief of the Fraud and Public Corruption Section; First Assistant U.S. Attorney; and eventually the first female United States Attorney for the Northern District of Georgia. Throughout this time, I carried with me the values instilled by my family – that the law can be an instrument for good, but only when it is applied fairly, thoughtfully and objectively. I believe it is a credit to the institution I love that I have held leadership positions through Republican and Democratic administrations, and that I have witnessed career men and women of the department consistently following the facts and the law with great distinction and without regard to politics.
“Over the years, I have seen the department from a variety of vantage points. I personally prosecuted public corruption, regardless of party, and led our team in holding accountable the Olympic bomber, Eric Rudolph. As a supervisor, I have ensured that our office had the expertise, resources and focus to go after worst of the worst, whether they were international gangs, human trafficking rings or cybercriminals. As the U.S. Attorney, I was the vice chair of the Attorney General’s Advisory Committee, and gained additional insight into the unique challenges each U.S. Attorney’s Office across the country faces—challenges that I know you each hear about from your constituents. When the President nominated me, a career prosecutor, to be the Deputy Attorney General, it was the greatest honor that I could imagine.
“I am proud to say that in the brief period during which I have served as the Acting Deputy Attorney General, I have seen on a national scale the same skill, care and dedication in our attorneys that I knew in the Northern District of Georgia. In taking on the day-to-day operations of the department, its $27 billion budget, and its 114,000 employees, I also understand that we face critical national security and public safety challenges. I believe that we can work together on these challenges, and in my role as Chief Operating Officer of the department, I will be committed to ensuring that the resources Congress provides to the department are used as effectively as possible to protect public we all serve.
“I know that several of you have served previously at the department and share my love of this great institution. As you all know, the Department of Justice is unique among cabinet agencies; it is, and must be, independent and non-partisan. We don’t represent an ordinary client, and as representatives of the people, we must always be governed by doing what is just. This has been my life’s work. And if I am fortunate enough to be confirmed, I can promise you that I will spend each and every moment guided solely by the department’s singular mission to seek justice.
“Thank you. I look forward to your questions.”
Notice of Court ProceedingsRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
WHEN: Wednesday, March 25, 2015, 9:30 a.m. WHERE:
COLUMBIA, SOUTH CAROLINA -- United States Attorney Bill Nettles stated today that a sentencing hearing has been scheduled in the case of United States v. Lester Woods and Michael Johnson, Case No. 3:14-0093. Chief United States District Court Judge Terry L. Wooten will preside.Matthew J. Perry Courthouse
901 Richland Street, Courtroom # 5, Columbia, SC
# # # #
Newark, New Jersey, Man Sentenced to 12 Years in Prison for Armed CarjackingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 144 months in prison for his role in a shotgun carjacking in Little Falls, New Jersey, on Oct. 30, 2011, U.S. Attorney Paul J. Fishman announced.
Hanzah Darby, 26, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of theft of a motor vehicle by force, violence, and intimidation and one count of use of a firearm in furtherance of a crime of violence. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: On Oct. 30, 2011, Darby, and Ivan Lee, 26, of Newark, were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and Lee – who brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint. Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time.
In addition to the prison term, Judge Wigenton sentenced Darby to serve three years of supervised release.
Lee, who was charged with Darby in the indictment, previously pleaded guilty to one count of theft of a motor vehicle by force and was found guilty of the brandishing a firearm charge following a one-week trial before Judge Wigenton. Lee was sentenced to 14 years in prison on Feb. 11, 2015.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s sentencing. He also thanked the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik for its assistance.
The government is represented by Assistant U.S. Attorney Cari Fais and Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Timothy Donohue Esq., West Orange, New Jersey.New Orleans Woman Charged with Stealing Federal Grant Money from Open World Family ServicesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KIM CASSELL, age 42, of New Orleans, was charged in a one-count Bill of Information last Friday with stealing money from Open World Family Services, Inc. (“Open World”). Open World was a non-profit 501(c)(3) charitable corporation organized for the purpose of helping students in the greater New Orleans area grow academically.
According to the Bill of Information, from March 2010 until June 2012, CASSELL knowingly used more than $140,000 in federal grant money for her personal benefit, rather than for its intended educational purposes.
If convicted, CASSELL faces a maximum term of imprisonment of ten years, three years of supervised release following any term of imprisonment, a $250,000 fine, and restitution to the United States Department of Education.
U. S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Department of Education, the Federal Bureau of Investigation, and the Office of the Louisiana Legislative Auditor in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
New Hartford Man Sentenced to Federal PrisonRead the Press Release
A man who failed to appear for a supervised release revocation hearing in U.S. District Court was sentenced today to more than a year in federal prison.
Jeremiah Wroblewski, 36, from New Hartford, Iowa, received the prison term after a September 12, 2014, guilty plea to one count of failure to appear.
Wroblewski was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wroblewski was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Wroblewski is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-89.
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Native of Dominican Republic Charged in Gun CaseRead the Press Release
PHILADELPHIA - Amin De Castro, 39, of Philadelphia, PA was charged today by Indictment with being an illegal alien in possession of a firearm, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 22, 2014, De Castro, an alien, and native and citizen of the Dominican Republic, was found in the United States in possession of a .380 caliber firearm.
If convicted the defendant faces a maximum possible sentence of ten years imprisonment.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations ("ERO") and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
Naples Man Pleads Guilty to Three Armed Bank RobberiesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that John Robert Haldemann (31, Naples) today pleaded guilty to three counts of armed bank robbery. He faces a maximum penalty of 25 years in federal prison for each count. A sentencing date has not yet been set.
According to court documents, Haldemann committed three armed bank robberies last summer. On June 4, 2014, he robbed a Capital Bank in Venice. He then committed an armed robbery at a Wells Fargo Bank in Naples on July 12, 2014. And, in Punta Gorda on July 25, 2014, he robbed a Bank of America. During each armed bank robbery, Haldemann displayed what appeared to be a firearm and demanded money from bank employees.
This case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force, the Punta Gorda Police Department, the Naples Police Department, the Collier County Sheriff’s Office, the Venice Police Department, and the Sarasota County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
Mexican National Sentenced for Methamphetamine and Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Miguel Angel Tinajero-Martinez, 25, a Mexican national illegally in the United States, was sentenced today in federal court in Las Cruces, N.M., to 51 months in federal prison for his methamphetamine and cocaine trafficking convictions. He will be deported after he completes his prison sentence.
Tinajero-Martinez was indicted on Feb. 19, 2014, under the moniker “4 Runner” and was charged with conspiracy and distribution of methamphetamine. He was arrested on Feb. 27, 2014, and has been in federal custody since that time.
On July 24, 2014, Tinajero-Martinez entered a guilty plea to a four-count felony information charging him with (1) conspiracy; (2) distribution of methamphetamine in Doña Ana County, N.M., on Jan. 27, 2014; (3) distribution of methamphetamine in Doña Ana County, N.M., on Feb. 27, 2014; and (4) possession of cocaine with intent to distribute in El Paso County, Texas, on Feb. 27, 2014.
According to court records, Tinajero-Martinez conspired with others to distribute three kilograms of methamphetamine in Doña Ana County, N.M., between Dec. 2, 2013 and Feb. 27, 2014. More specifically, Tinajero-Martinez distributed a kilogram of methamphetamine to an undercover agent on Jan. 27, 2014, and two kilograms of methamphetamine to undercover agents on Feb. 27, 2014. The drug transactions were negotiated by Tinajero-Martinez’s co-conspirators and Tinajero-Martinez delivered the methamphetamine to the agents. Tinajero-Martinez also possessed seven kilograms of cocaine at his home in Horizon, Texas; he waived venue to permit him to enter his guilty plea in federal court in New Mexico.
The indictment in this case was the result of a multi-agency investigation that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
This case was investigated by the Las Cruces office of the FBI and Las Cruces/Doña Ana County Metro Narcotics Agency, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Mexican National Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Yareli Jasmin Bustamante-Conchas, 28, a Mexican citizen illegally residing in Albuquerque, N.M., pleaded guilty this morning to a federal heroin trafficking charge.
Bustamante-Conchas was arrested on a criminal complaint on Aug. 29, 2014, in Bernalillo County, N.M., after DEA agents seized approximately 745.4 grams of heroin, drug packaging materials and $42,818.47 in U.S. currency from Bustamante-Conchas’ residence during a consensual search.
Bustamante-Conchas was subsequently indicted on Sept. 23, 2014, and charged with possession of heroin with intent to distribute. The indictment included forfeiture provisions seeking an order requiring Bustamante-Conchas to forfeit $102,000.00 representing drug proceeds in addition to the $42,818.47 seized from her home on Aug. 29, 2014.
During today’s proceedings, Bustamante-Conchas pled guilty to the indictment and admitted that on Aug. 28, 2014, DEA agents seized 745.4 grams of heroin, approximately $42,818.47 in cash and drug packaging materials from her home. Bustamante-Conchas also admitted that she was illegally present in the United States and had been making approximately $3,000.00 a week by distributing heroin since Dec. 2013.
Bustamante-Conchas has been in federal custody since her arrest and remains detained pending a sentencing hearing which has yet to be scheduled. At sentencing, Bustamante-Conchas faces a mandatory minimum of five years and a maximum of 40 years in prison. She will be deported after completing her prison sentence.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Members of Manchester-Based Oxycodone RingRead the Press Release
Plead Guilty To Federal Drug Trafficking Charges
CONCORD, NEW HAMPSHIRE – Five members of a Manchester-based oxycodone distribution ring plead guilty in United States District Court for the District of New Hampshire, announced United States Attorney John P. Kacavas.
Samuel Garcia (35), Jennifer Nunez (24), Johanna Nunez (28), Jose Nunez (59), and Raul Hernandez (27), each admitted to their participation in a conspiracy to distribute, and possess with intent to distribute, oxycodone, as well as other federal criminal charges.
The defendants were arrested after a law enforcement investigation that lasted from 2013 to August of 2014. The investigation included the use of cooperating individuals to purchase oxycodone pills, as well as the use of wiretaps and search warrants. Most of the defendants were arrested on August 27, 2014. Hernandez was arrested as he attempted to deliver over 600 oxycodone pills to the residence of Samuel Garcia and Jennifer Nunez on Eastern Avenue in Manchester, New Hampshire. A search warrant was executed at that residence and hundreds of additional pills, as well as over $30,000 in cash, and three firearms were recovered from that location. Garcia, Jennifer Nunez, and Johanna Nunez were arrested that day. Jose Nunez was arrested in October of 2014, after returning to the United States from the Dominican Republic.
Garcia pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime. He is scheduled to be sentenced on June 24, 2015.
Jennifer Nunez pleaded guilty on March 24, 2015, to:(1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) Possession of a Controlled Substance with Intent to Distribute; (3) Distribution of a Controlled Substance; and (4) Possession of a Firearm During a Drug Trafficking Crime. She is scheduled to be sentenced on June 23, 2015.
Johanna Nunez pleaded guilty on March 24, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; and (2) four counts of Distribution of a Controlled Substance. She is scheduled to be sentenced on June 23, 2015.
Jose Nunez pleaded guilty on March 6, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance; (2) four counts of Distribution of a Controlled Substance; (3) Conspiracy to Launder Monetary Instruments; and (4) Possession of a Firearm During a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). He is scheduled to be sentenced on June 19, 2015.Raul Hernandez pleaded guilty on March 17, 2015, to: (1) Conspiracy to Distribute, and Possess with Intent to Distribute, a Controlled Substance and (2) Possession of a Controlled Substance with Intent to Distribute. He is scheduled to be sentenced on June 23, 2015.
An additional defendant, Edward Anthony Hiciano Beltre, is a fugitive.
The defendants each face a maximum sentence of twenty years on each of the drug and money laundering charges. The firearms charges carry a mandatory minimum term of five years in prison, which must be served consecutive to the sentences on the remaining charges.
In addition to these defendants, separate federal drug conspiracy charges remain pending against other Manchester residents who were arrested as part of this investigation, including Ryan Demers (31), William Alba (24), Bonnie Labrie (50), Krystal Mailhot (27), and Yonajaira Galarza Ramos (30).
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. This particular investigation involved cooperative efforts of federal and local law enforcement entities, including the Drug Enforcement Administration, the Manchester Police Department, the New Hampshire State Police, the Massachusetts State Police, and the Hillsborough County Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys John J. Farley and Debra M. Walsh.
Member of Drug Trafficking Organization Admits to Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A member of a large-scale drug trafficking organization today admitted conspiring to distribute heroin in Ocean and Monmouth counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Jonathan Thomas, a/k/a “Life,” 39, of Asbury Park, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiring to distribute heroin.In March 2014, 20 other alleged members of the drug trafficking organization of which Thomas was a member were charged by criminal complaint with conspiring to distribute heroin. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of those individuals, eight have pleaded guilty.
According to documents filed in this case and statements made in court:
Between September 2013 and March 2014, Thomas conspired with others to distribute heroin in Ocean and Monmouth counties. Thomas was one of the Britt-Young DTO’s heroin suppliers. Thomas admitted supplying between 100 and 400 grams of heroin to the Britt-Young DTO during the conspiracy. Although he was incarcerated in New Jersey during the conspiracy, he continued to supply narcotics to the Britt-Young DTO through another conspirator, who picked up heroin from New York City and delivered it on Thomas’ behalf.
The narcotics conspiracy charge to which Thomas pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for June 30, 2015.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense Counsel: Kim A. Otis Esq., Princeton, New Jersey
Thomas, Jonathan Information
Medical Office Receptionist Sentenced to 34 Months in Prison for Embezzlement, Credit Card Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A receptionist previously employed by a medical office in Kearny, New Jersey, was sentenced today to 34 months in prison for embezzling more than $446,000 from her former employer, using fraudulent credit cards to obtain more than $200,000 in goods and services and evading taxes on that illegal income, U.S. Attorney Paul J. Fishman announced.
Gwendolyn Muller, 53, formerly of Kearny, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging her with one count each of embezzlement, credit card fraud and tax evasion. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2007 through 2011, Muller used her position at the medical practice to take, cash, and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller also admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
In addition to the prison term, Judge Martini sentenced Muller to three years of supervised release and ordered her to pay restitution of $556,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
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Defense counsel: Donald Rinaldi Esq., Nutley, New Jersey
Man Sentenced to Life in Prison for Murdering his ParentsRead the Press Release
A man who used a machete to murder his parents on the Meskwaki Nation Settlement was sentenced today to life in federal prison without the possibility of parole.
Gordon Lasley, Jr., age 26, from the Meskwaki Nation Settlement, Iowa, received the prison term after a December 17, 2014, jury verdict finding him guilty of two counts of Second Degree Murder.
The evidence at trial showed that, on February 5, 2014, Lasley murdered Gordon Lasley, Sr. and Kim Renee Lasley at their home on the Meskwaki Nation Settlement by striking them each multiple times with a machete. Lasley’s attorneys unsuccessfully argued Lasley was insane at the time of the murders and should not be held criminally responsible for the murders.
Lasley was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lasley was sentenced to a term of life imprisonment on each count, with the prison terms to run consecutively. A special assessment of $200 was imposed, and he was ordered to make $156.80 in restitution to the Iowa Crime Victim Compensation program. There is no parole in the federal system.
Lasley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys CJ Williams and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police Department, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00045.
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Man Sentenced for Possessing Numerous Unauthorized Access Devices to Obtain MerchandiseRead 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 Luis Alcalar Vasquez, a/k/a Noberto DeRivas, a/k/a Abraham Rivas-Rios, 43, of Texas and Mexico, who was convicted of possession of 15 or more unauthorized access devices, was sentenced to 72 months in prison and ordered to pay $77,577.90 in restitution by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between November 2012 and March 2013, the defendant obtained high-end merchandise at various Home Depot stores in Illinois, Indiana, Ohio and New York by scanning bar codes for lower ticketed items at self check-out stations. Vasquez scanned the bar codes for the lower cost items but took the more expensive items out of the stores. For example, the defendant scanned the bar code for a sink priced at $59.95 but actually left the store with a sink costing $444.79. Vazquez then returned the higher ticketed merchandise to another Home Depot location in exchange for stored value cards.
By early March, 2013, Home Depot became aware that the “ticket-switch” and refund transactions were being executed at stores in Western New York. On March 7, 2013, at stores in West Seneca, Buffalo, and Cheektowaga, sinks costing $444.79 were exchanged for stored value cards in that amount.
Later on March 7, at Home Depot’s store in Lockport, the defendant tried to use a California driver’s license bearing his picture but a different name, in order to return merchandise valued at $700.55. However, Home Depot personnel stopped the transaction and called Niagara County Sheriff’s Office deputies to the Lockport store, where they took the defendant into custody. Niagara County Sheriff’s Office investigators found Vasquez had 20 false California drivers licenses in three different names but all bearing the defendant’s picture, and 17 Home Depot stored value cards worth approximately $5,910. Two cell phones with bar codes taped to their backs were found on the defendant.
The total value of the merchandise the defendant obtained from The Home Depot stores was $77,577.90.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation and investigators of the Niagara County Sheriff’s Department, under the direction of Niagara County Sheriff James Voutour.
MTU America Inc., Agrees to $1.2 Million Penalty and Auditing Program to Resolve Clean Air Act ViolationsRead the Press Release
MTU America Inc. (MTU), a subsidiary of Rolls-Royce Power Systems AG, will implement an auditing program to ensure proper emissions testing and compliance with federal emission standards for its heavy-duty diesel non-road engines as part of a settlement to resolve alleged Clean Air Act violations, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.
The complaint filed with the settlement alleges that MTU violated the Clean Air Act by selling 895 non-road, heavy-duty diesel engines, which are used in mining, marine and power generation vehicles and equipment, without valid certificates of conformity. EPA voided the certificates of conformity purporting to cover the engines based on improper emissions testing by MTU employees. Under the settlement, MTU will pay a $1.2 million penalty and perform annual audits of its engine emission testing and certification activities for three years. The audits will be conducted by an EPA-approved, third-party auditor that will monitor and evaluate compliance with Clean Air Act requirements for testing, certification, record-keeping and reporting. MTU is also required to initiate corrective actions if the audit reveals non-compliance.
“Certificates of conformity are a critical part of EPA’s program to ensure that vehicles and engines meet Clean Air Act emissions standards,” said Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division. “Companies that skirt the rules in their certification testing hurt the public and their competitors. Today’s settlement ensures that the company will adequately monitor the activities of employees involved in the certification process to prevent this kind of conduct from recurring.”
“Engines that aren’t properly certified can emit toxic pollution that aggravates asthma and other respiratory illnesses,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “This agreement requires that MTU take important steps to comply with the law, protect the public and reduce smog in our air.”
Every engine sold in or imported into the U.S. must be covered by a valid EPA-issued certificate of conformity. When applying for a certificate of conformity, an applicant must certify to EPA that it followed appropriate testing, certification, record-keeping and reporting requirements to ensure its products will meet applicable federal emission standards to control air pollution. Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides, which can cause respiratory illness, aggravate asthma and contribute to the formation of ground-level ozone or smog.
Through information disclosed by the company, EPA discovered that MTU had obtained EPA certificates of conformity without conducting valid testing. EPA learned that MTU had installed a catalytic converter onto its prototype engine during testing to reduce emissions of pollutants. MTU had also performed maintenance during durability testing on the same engine, but had not reported this to EPA, a violation of testing regulations.
Selling or importing engines that are not covered by valid certificates of conformity is a violation of the Clean Air Act. Based on MTU’s disclosures, EPA voided the certificates of conformity covering these engines on Feb. 23, 2015. MTU violated the Clean Air Act by selling and importing the engines, which, because of the voiding, were not covered by a valid certificate of conformity as required by law. MTU has worked with EPA to take steps to prevent these violations from occurring in the future.
This settlement is part of an ongoing effort by EPA to ensure that all vehicles and engines meet federal emission limits for harmful pollution. The Clean Air Act requires that all vehicles have EPA-issued certificates of conformity prior to being imported or sold in the U.S. to demonstrate that they meet federal emission standards.
MTU America Inc. based in Novi, Michigan, and formerly known as Tognum America Inc. is a wholly-owned subsidiary of Rolls-Royce Power Systems AG, a German corporation. MTU manufactures non-road, off-highway engines for the North American market for locomotive, marine, construction and defense uses.
The consent decree, lodged in the U.S. District Court for the District of Columbia, is subject to a 30-day public comment period and approval by the federal court. The consent decree can be viewed at www.justice.gov/enrd/Consent_Decrees.html.
More information on the settlement: http://www2.epa.gov/enforcement/mtu-america-inc-clean-air-act-settlement
For a list of certificates of conformity voided by the EPA: http://epa.gov/otaq/motor-void.htm
Laredo Jury Convicts Bus Passenger of Heroin SmugglingRead the Press Release
LAREDO, Texas – Altagracia Guadalupe Vargas, 28, of Laredo, has been convicted of conspiracy and possession with the intent to distribute Heroin, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict following a three-day trial and approximately one hour deliberation.
The jury heard that one Dec. 12, 2014, Vargas conspired to smuggle approximately 3.5 kilograms of heroin through the U.S. Border Patrol (BP) checkpoint Interstate 35. Vargas was a passenger on a Turimex bus and attempted to smuggle the black-tar heroin in the inner linings of two carry-on bags. Vargas was questioned and gave multiple inconsistent statements.
At trial, the government presented testimony from law enforcement and other experts who explained the discovery of the heroin and its value of more than $100,000.
Vargas testified in her defense and claimed no knowledge of the drugs and that she believed the bags contained computer tools that were concealed to prevent theft. She said the bags belonged to a man named “Don Tono,” which contradicted her earlier statement that the bag belonged to her sister. Vargas also testified she received $50 from Don Tono for this trip. However, the government demonstrated that she had actually paid $75 of her own money for the bus ticket, which would have resulted in a $25 loss.
U.S. District Judge Diana Saldana presided over trial. Sentencing will be scheduled at a later date, at which time Vargas faces minimum of 10 years and up to life in federal as well as a possible $10 million fine.
The charges are the result of an investigation by Border Patrol, Drug Enforcement Administration and Customs and Border Protection. Assistant U.S. Attorneys Alfredo De La Rosa and Sanjeev Bhasker prosecuted the case.
KC Man Sentenced for Conspiracy to Sell False ID Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy that produced and sold thousands of false identification documents to illegal aliens.
Luis Daniel Cabrera-Guzman, also known as “Driver,” 30, a citizen of Mexico residing in Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Cabrera-Guzman to forfeit $403,700 to the government, which represents the total proceeds from the sale of at least 7,122 counterfeit identification documents during this criminal enterprise. Cabrera-Guzman must also forfeit to the government $9,376 that was seized by law enforcement officers at the time of his arrest, and which was obtained as the proceeds of his criminal conduct.
Cabrera-Guzman pleaded guilty on Nov. 4, 2014, to his role in the conspiracy to provide false identification documents. According to court documents, Cabrera-Guzman has been illegally living in the United States periodically since 2001. He was deported in May 2009 and June 2009 and illegally reentered the country.
Cabrera-Guzman admitted that he participated in a conspiracy with Eriberto Moises Medina-Aranda, 40, of Rayville, Mo., Ulises Montiel-Lazcano, 35, of Merriam, Kan., Cesar Mujica-Aranda, also known as “Oscar Gomez,” 25, of Liberty, Mo., and Bernardino Bautista-Hernandez, 32, also known as “Brujo,” of Kansas City, Mo., all of whom are citizens of Mexico, from Sept. 1, 2013, to Feb. 21, 2014, to produce and distribute thousands of false and counterfeit identification documents that were sold to aliens unlawfully residing and working within the United States.
Medina-Aranda, Montiel-Lazcano, Mujica-Aranda and Bautista-Hernandez all have pleaded guilty to their roles in the conspiracy in a separate but related case and await sentencing.
Mujica-Aranda admitted that he managed the production of counterfeit identification documents at his Liberty apartment. He managed the production of the false identification documents and sold the documents to numerous street level dealers, such as Bautista-Hernandez and Cabrera-Guzman. Mujica-Aranda produced fraudulent Lawful Permanent Resident cards, counterfeit Social Security cards, and false driver’s licenses from various states within the United States as well as Mexican states. Conspirators produced and sold thousands of false identification documents to illegal aliens so that the illegal aliens could stay and work within the United States.
Cabrera-Guzman admitted that he was one of the street-level dealers who illegally sold counterfeit identification documents. The street dealers would typically pay approximately $50 for each counterfeit identification document and they would keep any excess proceeds they were able to obtain from the sale of the counterfeit documents. Cabrera-Guzman sold sets of fraudulent Lawful Permanent Resident cards and counterfeit Social Security cards for approximately $100 per document set. (The newer versions of the updated Lawful Permanent Resident cards sold for more money.) Cabrera-Guzman sold false driver’s licenses from various states within the United States as well as Mexican states for about $100 each. He also sold false Mexican consular identification cards for approximately $100 each and fake Kansas City, Mo., liquor licenses for approximately $100.
On Jan. 30, 2014, Mujica-Aranda threw away a white plastic bag containing shredded pieces of fraudulent identity documents in a trash can at a gas station at St. John Avenue and Belmont in Kansas City, Mo. Early the next morning, a federal agent located the bag in the trash can. The bag contained shredded pieces of fraudulent identification documents, and weighed approximately two pounds. Each piece was approximately the size of a small paper clip, and the shredded pieces were immediately recognizable as fraudulent Lawful Permanent Resident cards, Social Security cards, Missouri non-driver’s licenses and Kansas identification cards. The agent also discovered two reels of depleted color card printer ribbon within the shredded pieces. One reel had images of fraudulent Lawful Permanent Resident cards.
Investigators secured a total of 16 reels of depleted color card printer ribbons weighing a total of 24 pounds, which were seized from a dumpster located at a gas station, a residence in Liberty, Mo., and a storage unit in Excelsior Springs, Mo. A United States Secret Service forensic testing lab evaluated these ribbons and was able to ascertain that the ribbons contained front and back images of 3,185 Lawful Permanent Resident cards.
These cases are being prosecuted by Special Assistant U.S. Attorney Trey Alford. They were investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of the Inspector General, the Kansas Department of Revenue – Office of Special Investigations, the Missouri Department of Revenue – Compliance Investigation Bureau and the Clay County, Mo., Prosecuting Attorney’s Office.
Justice Department Settles Lawsuit Alleging Discrimination Against Families with Children at Apartment Complexes in Kansas and MissouriRead the Press Release
The Justice Department announced today that Brisben Chimney Hills Limited Partnership and JRK Residential America LLC, the owners and the former manager of the Reserve apartment complex in Lenexa, Kansas, together with their named partner and agents, have agreed to pay $170,000 to settle a lawsuit alleging violations of the Fair Housing Act (FHA). The lawsuit alleged that defendants instituted policies at the Reserve and at other properties in Kansas and Missouri that discriminated against families with children. The lawsuit also alleged that a family was forced to leave the Reserve after they complained to management about the overly-restrictive policies.
Under the proposed consent decree, which must still be approved by the U.S. District Court of Kansas, the defendants will pay $60,000 to the family that initiated the original complaint filed with the U.S. Department of Housing and Urban Development (HUD), $100,000 into a victim fund to compensate other aggrieved families and $10,000 to the United States as a civil penalty. In addition, the proposed consent decree prohibits the defendants from discriminating in the future against families with children and requires the defendants to receive training on the requirements of the FHA.
“For over twenty-five years, the Fair Housing Act has prohibited housing providers from discriminating against families with children,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Many parents are already struggling to find affordable housing for their families, and they should not also have to face discrimination because they have children.”
“Kansas families with children deserve the right to live where they choose and to be free from housing discrimination,” said U.S. Attorney Barry R. Grissom of the District of Kansas.
The lawsuit, also filed today, arose from a complaint filed with HUD by a family that was living at the Reserve apartments. The owners and operators of the Reserve instituted a policy that discriminated against families with children because it unreasonably restricted the activities of children, including a policy that required that anyone under the age of 16 be physically accompanied by an adult at all times. After the family complained about the policy, their lease was not renewed and they were forced to leave the Reserve. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department. The United States’ complaint alleges that the defendants violated the family’s rights, that the restrictive policies discriminated against other families with children and that the defendants engaged in a pattern or practice of discrimination or denied rights protected by the FHA to a group of persons.
“Overly restrictive housing policies for families with children are illegal, and prevent them from fully enjoying the place they call home,” said HUD Assistant Secretary Gustavo Velasquez of Fair Housing and Equal Opportunity. “HUD will continue to work with the Department of Justice to take action against property owners and landlords whose policies violate the Fair Housing Act.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.usdoj.gov/crt/housing or www.hud.gov/fairhousing.
Jackson Tax Preparer Indicted for Preparing False Income Tax ReturnsRead the Press Release
Jackson, TN – The operator of Carol’s Income Tax Service was charged today with 123 counts of fraud for preparing false and fictitious income tax returns.
Carol Munoz, 42, of Jackson, TN was indicted for preparing false and fraudulent tax returns, operating an unlicensed money transmitting business, and money laundering.
According to the indictment, between April 15, 2010 and April 16, 2013, Munoz prepared 123 fraudulent tax returns, nearly all of which claimed false dependents. The returns prepared by Munoz also claimed tax credits to increase the amount of income tax refund, including the Child Tax Credit, Additional Child Tax Credit and Child Care Credit, for which the taxpayers did not qualify.
This case was investigated by the Internal Revenue Service – Criminal Division and Homeland Security Investigations. Assistant U.S. Attorney Matt Wilson is prosecuting the case for the government.
Indictment Charges Two with Using Phony Concert Promotions to Scam InvestorsRead the Press Release
PHILADELPHIA – Marc Hubbard, 46, of Cornelius, North Carolina, and Franklin Green, 45, of Washington, DC, were charged by indictment, unsealed today, in a conspiracy to defraud victims who thought they were investing in concert promotions. The defendants are each charged with one count of conspiracy and seven counts of wire fraud, announced United States Attorney Zane David Memeger. The fraud scheme involved approximately $2 million.
Hubbard was president of Sports Dimensions, Inc. (“SDI”) which purported to specialize in concert promotions and nightclub management, and was also president of Castle Entertainment which purported to specialize in nightclub management. Green, a lawyer in Washington, DC, was formerly a lawyer in Philadelphia, PA.
According to the indictment, Hubbard portrayed himself and SDI as highly successful concert promoters and falsely represented approximately $14,277,068 in ticket sales from July 2006 to January 10, 2008. He allegedly promised investors an approximate return of 25-30% on their short-term investments with SDI. Green was Hubbard’s attorney and allegedly negotiated or assisted in the negotiation of the contracts with Hubbard’s investors. Hubbard allegedly told investors that their funds were protected by a $10 million surety bond which was offered as collateral on most of the investors’ contracts but he did not tell them that the surety bond was bogus. It is further alleged that Hubbard provided investors with false documentation of his own financial solvency as well as SDI’s and Castle’s.
According to the indictment, instead of using the investors’ funds for concert promotions, Hubbard used the money to pay earlier investors and to pay his personal and business expenses. In total, it is alleged that investors gave Hubbard approximately $2,125,000 to invest and only received approximately $326,500 in return. Hubbard allegedly took at least $1,798,500 from his victims and, of that amount, Green took approximately $333,000.
If convicted, the defendants each face a maximum possible statutory sentence of 20 years in prison with a possible advisory sentencing guideline range of 33 to 57 months in prison, restitution, a fine of up to $250,000, an $800 special assessment, and three years of supervised release. The indictment also contains a notice of forfeiture for $2,125,000.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jennifer C. Barry.
Huntley Contractor Charged with Mail Fraud, Causing False Statements to Be Made on Forms Required by Erisa, and Failing to Collect and Pay over $600,000 in Federal TaxesRead the Press Release
ROCKFORD — A Huntley, Ill., concrete contractor was charged today by a federal grand jury in a twenty-seven count indictment. THOMAS MANNING, 58, president of T. Manning Concrete, Inc., located in Huntley, was charged with five counts of mail fraud, five counts of causing false statements to be made on forms required by ERISA, sixteen counts of failing to collect and pay FICA taxes from employee wages, and one count of obstructing the IRS by causing false W-2s and Form 941s to be filed with the IRS.
As alleged in the indictment, Manning, as president of T. Manning Concrete, Inc., hired laborers and cement masons from Unions in Northern Illinois. The Unions provided benefits to their members through various employee benefit plans. Each benefit plan was required to file annual reports stating the total contributions received. T. Manning Concrete was required, by collective bargaining agreements, to submit monthly reports to the benefit plans that stated the number of hours each covered employee worked and to turn over the company’s contributions to those benefit plans. According to the indictment, beginning in 2006, Manning devised a scheme to defraud the benefit plans by understating the number of hours worked by T. Manning Concrete’s covered employees in the monthly reports, and under-paying the monthly contributions that were required on behalf of its covered employees. The indictment also alleges that in order to conceal the understatement of hours and to defraud the benefit plans, Manning caused the covered employees to be paid for the additional hours “under the table,” using checks drawn upon non-payroll bank accounts under Manning’s control. It is alleged that Manning used the U.S. Mail to send the reports and contribution checks to the benefit plans.
By falsely reporting the number of hours worked by covered employees, the indictment claims, Manning caused the benefit plans to make false statements in their annual reports they were required by ERISA to file. The indictment further charges that between 2007 and 2010, Manning, as president of T. Manning Concrete, failed to collect, account for, and pay over a total of approximately $600,680.12 for the employees’ share of Federal Insurance Contribution Act (FICA) taxes due to the IRS on the wages paid using “under the table” checks. Further, it is alleged that from January 2007 through December 2010, Manning obstructed the administration of the internal revenue laws by using the non-payroll bank accounts to pay wages without reporting those wages or withholding and paying over FICA or federal income taxes on those wages to the IRS, thereby causing false W-2s and Form 941s to be filed with the IRS.
Each count of mail fraud carries maximum penalties of 20 years in prison and a $250,000 fine, or an alternate fine of twice the loss or twice the gain derived from the offense, whichever is greater. Each count of a false statement in the benefit plans’ annual reports carries maximum penalties of 5 years’ imprisonment and a $250,000 fine. Each count of willful failure to collect or pay taxes carries a maximum sentence of 5 years’ imprisonment, and a $10,000 fine. Each count also carries a maximum period of up to 3 years of supervised release following imprisonment. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Manning will be arraigned before United States Magistrate Judge Iain D. Johnston on March 31, 2015, at 11:00 a.m. in U.S. District Court in Rockford.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-In-Charge of the Chicago Region of the U. S. Department of Labor, Office of Inspector General; Jeffrey A. Monhart, Director for the Chicago Region of the U.S. Department of Labor - Employee Benefits Security Administration; Stephen Boyd, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation Division in Chicago; and Tony Gomez, Postal Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Indictment
Henrico Woman Pleads Guilty to Health Care FraudRead the Press Release
RICHMOND, Va. – Kateresea L. Ford, 42, of Glen Allen, Virginia, pleaded guilty today to one count of Health Care Fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Mark R. Herring, Virginia Attorney General, made the announcement after the plea was accepted by U.S. Magistrate Judge David J. Novak.
On March 9, 2015, the United States filed a one count criminal information charging Ford with Health Care Fraud in violation of 18 .U.S.C. § 1347. Ford faces a maximum penalty of 10 years in prison when sentenced on July 9, 2015 by U.S. District Court Judge Robert E. Payne. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
In a statement of facts filed with the plea agreement, Ford admitted that she owned and operated Delta House LLC, a company authorized to provide services to Medicaid recipients under the age of 21. Delta House provided a community-based residential program for pregnant or parenting teenage mothers to allow them to complete their education and transition to independent living as parents. Ford submitted fraudulent claims for payment representing that 739 units of community-based residential services had been provided to twenty-one Medicaid recipients, when, in fact, no such services had been provided. As a result of Ford's fraud, Medicaid was overbilled $81,216.08.
This case was investigated by the Medicaid Fraud Control Unit of Attorney General Mark Herring's Office. Assistant U.S. Attorney Heather L. Hart and Senior Assistant Attorney General and Special Assistant United States Attorney David W. Tooker of the Virginia Attorney General's Office are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-041.
Greenbrier County men plead guilty to federal heroin related chargesRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that two men pled guilty in federal court in Beckley before United States District Judge Irene C. Berger. Harry Franklin Huffman II, 25, of Lewisburg, pled guilty to using a phone to facilitate a drug felony, admitting that on September 23, 2014, in Lewisburg, he had a telephone conversation with a confidential informant to help set up a drug deal. Shortly after the telephone conversation, Huffman sold heroin to the informant.
Kip Aaron Sears, 26, from the Lewisburg area, also pled guilty to using a phone to facilitate a drug felony. Sears admitted that on September 30, 2014, in Lewisburg, he used a telephone to help arrange a drug deal. After the telephone conversation, Sears sold heroin to an informant.
Both Huffman and Sears face up to four years and a $250,000 fine when they are sentenced on July 8, 2015.
These cases were investigated by the Greenbrier Valley Drug and Violent Crime Task Force. They are part of the Greenbrier Valley Heroin and Pill Initiative, in furtherance of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Green Bay Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin announced that on March 23, 2015, Joseph J. Valdez (age: 29) of Green Bay, Wisconsin, appeared in federal court in Green Bay and pleaded guilty to a single count of sexual exploitation of a child in violation of Title 18, United States Code, Section 2251(a).
Valdez used his smart phone to entice, persuade, and coerce scores of underage girls to send him sexually explicit photographs of themselves under the pretense that he was a “modelling agent.” Valdez used text messaging applications and the messenger service “Kik” to contact hundreds of underage girls, some as young as nine years old. After receiving sexually explicit photographs of the underage girls, Valdez would oftentimes blackmail the victims into sending increasingly graphic images under the threat of forwarding the sexually explicit images already in his possession to the girls’ parents, friends, and school administrators. Several victims threatened suicide in response. Victims included underage girls from several counties in northeast Wisconsin, as well as girls from across the United States.
The charge to which Valdez pleaded guilty carries a mandatory minimum sentence of 15 years and a maximum of 30 years imprisonment, a $250,000 fine, and between 5 years and a lifetime of supervised release. Valdez is scheduled to be sentenced on June 22, 2015. He remains incarcerated pending that hearing.
The case was investigated by the Seymour Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Grandview Business Owner Pleads Guilty to $3 Million Extortion, Money Laundering SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Grandview, Mo., lawn care company pleaded guilty in federal court today to a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.
Shelton E. Lewis, also known as “Steve Johnson” or “C,” 39, of Grandview, pleaded guilty before U.S. District Judge Howard F. Sachs to extortion and money laundering.
Lewis is the owner of Green Results Landscape & Lawncare, LLC. Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August 2012, however, that changed. Lewis began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, the indictment says, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.
Lewis admitted today that he made multiple threats to injure that company’s owner, RW, as part of an extortion scheme.
The extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact and did not return with the agreed-upon cocaine. Lewis told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, but only received a bag of flour.
In August 2012, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.
In the fall of 2012, Lewis told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money.
Lewis told RW that the attorney would contact him in the future. When a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW paid the additional, exorbitant sum.
RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.
These threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.
After receiving the money from his victim, Lewis repeatedly engaged in a series of financial transactions involving the proceeds of a criminal offense. For example, Lewis paid $167,000 for a 2012 Lamborghini Gallardo, $61,000 for a 2005 Bentley, $65,500 for a 2007 Aston Martin, $45,595 for a 2011 Aston Martin and $23,000 for a 2013 Chevrolet Camaro; made multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., totaling more than $137,000; spent $27,708 to purchase jewelry, sunglasses, perfume and clothing from Gucci in Las Vegas; purchased a Rolex watch; and paid $100,000 to pay off a mortgage.
Under federal statutes, Lewis is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
By pleading guilty today, Lewis must forfeit to the government a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that has been seized from his bank accounts and the vehicles he purchased (also including a 2006 Mercedes Benz).
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Four Family Members Sentenced to Prison for Defrauding IRS of over $5 MillionRead the Press Release
BOSTON – Four family members who operated a temporary employment agency in Lowell were sentenced yesterday on charges relating to a scheme to hide over $25 million in employee wages from the Internal Revenue Service.
Margaret Mathes, 67, was sentenced by U.S. District Court Judge Sr. Mark L. Wolf to 80 months in prison and three years of supervised release. Her daughter, Bosea Prum, 47, was sentenced to two years in prison and three years of supervised release. Prum’s brother-in-law, Sam Pich, 63, was given the same sentence. Prum’s husband, Thaworn Promket, 52, was sentenced to one year and a day in prison and three years of supervised release. All defendants were ordered to pay, jointly and severally, over $6 million in back taxes and workers compensation premiums. The Court further required Mathes and Prum to pay, jointly and severally, $100,000 within the next 45 days, and Prum and Promket to pay over $500,000 in additional back taxes for amounts underreported on their personal tax returns.
In August 2014, all four defendants pleaded guilty to conspiracy to defraud the IRS, mail fraud, and to violating laws against structuring monetary transactions to avoid reporting requirements. Prum also pleaded guilty to 10 counts of filing false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions. Pich also pleaded guilty to 17 counts of assisting the filing of false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions. Promket also pleaded guilty to seven counts of filing false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions.
The charges arose from a temporary employment agency in Lowell that the defendants operated that provided unskilled labor to local companies, including those in the packaging and food services industries. Between 2004 and 2009, the defendants reported to the IRS that their temporary employees made about $2.2 million in wages, when the real figure was nearly $30 million. The defendants also defrauded the agency’s workers compensation insurer, Granite State Insurance Co., by hiding the true number of temporary workers the defendants employed, thus avoiding about $880,000 in insurance premiums. As part of the conspiracy to help cover up the unreported worker wages, the defendants withdrew cash from about 20 bank accounts and paid their temporary workers “off the books.” To further ensure that they would not be caught, the defendants structured these bank transactions – over 4300 in all – so they could withdraw the cash needed to pay the workers without triggering federal reporting requirements.
In the weeks leading up to the sentencing hearing, the government also developed evidence that defendant Mathes, with the help of her daughter, tried to mislead the Court about Mathes’s medical condition. Mathes had recently been diagnosed with possible Alzheimer’s Disease, after which she greatly exaggerated her symptoms in an effort to win a shorter sentence. At sentencing, the Court imposed an obstruction enhancement on both Mathes and her daughter, Prum.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement. The case was prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Fort Myers Residents Sentenced in False Tax Return SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Amaury Jimenez Brito (37, Fort Myers) to 21 months in federal prison for conspiracy to defraud the United States with false claims and theft of government property. The Court also ordered Brito to pay $7,924 in restitution to the IRS. He pleaded guilty to the charges on November 6, 2014.
According to court documents, between April 1, 2014, and May 22, 2014, Brito and his co-defendant, Yidelka Caceres, conspired with each other and with others to file approximately 264 false tax returns using the personal identifying information of other individuals without their permission. The total amount of tax refund payments sought from the IRS for the returns was more than $1.37 million. However, the IRS rejected the majority of the filings and Brito and Caceres received approximately $7,924 in proceeds from the offense.
In addition, on April 18, 2014, Brito illegally sold two U.S. Treasury checks to a confidential informant. On May 8, 2014, Brito and Caceres illegally sold another U.S. Treasury check to the informant. Neither Brito nor Caceres was the payee on the Treasury checks and they did not have permission to convert the funds for their own use or to sell or transfer the checks.
Caceres (39, Fort Myers) previously pleaded guilty for her role in this case. On February 13, 2015, she was sentenced to 90 days home confinement, a five year term of probation, 100 hours of community service, a $448 fine, and $7,924 in restitution. In addition, the Court ordered Caceres to forfeit $5,932 seized from her home at the time of her arrest, representing proceeds she obtained as a result of her conduct.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Former University of Louisville Executive Sentenced to 63 Months in Prison for Tax Fraud and Embezzling Funds Tied to UofL Medical GroupsRead the Press Release
Diverted $2.8 million for his personal use
Failed to report $2,470,735 to Internal Revenue Service
Ordered to pay $2,810,201.53 in restitution
LOUISVILLE, Ky. – A former University of Louisville accountant, promoted to Executive Director of the Department of Family & Geriatric Medicine at the University of Louisville School of Medicine (DFGM) was sentenced today, in U.S. District Court, by Senior District Judge Charles R. Simpson III, to 63 months in prison and ordered to pay $2,810,201.53 in restitution for tax fraud and embezzling funds tied to University of Louisville medical groups, announced Acting U.S. Attorney John E. Kuhn, Jr.
As part of the nearly six year scheme, Perry Chadwick Vaughn, 37, of Sellersburg, Indiana, diverted contractual checks and patient payments to the University Family and Geriatric Medicine Associates account then withdrew $2,809,489 for his personal use and benefit.
“Mr. Vaughn took advantage of his position of trust to steal from one of our most valued public institutions, the University of Louisville, as well as University-affiliated physician practice groups that serve the community by providing geriatric and primary care health care services,” stated Acting U.S. Attorney John E. Kuhn, Jr. “The 2.8 million dollar loss in this case is another dramatic reminder of what can happen when raw, unmitigated greed and selfishness finds opportunity in an organization with inadequate fiscal oversight. We do hope that the University’s recent and ongoing efforts to improve its financial management will end the string of thefts and embezzlements it has suffered over recent years. I must also commend the University of Louisville Police Department for providing invaluable assistance to the federal law enforcement agencies during the investigation.”
“As we investigate these insider threat cases where trusted employees steal from their employers, we will continue to urge business owners to have independent third party reviews of their finances. The US Secret Service and its Kentucky Electronic Crimes Task Force partners will vigilantly investigate these criminals to be sure they are brought before the justice system, making every attempt to make victims whole and to ensure these crimes do not go unpunished,” stated Acting Special Agent in Charge Craig Hutzell, United States Secret Service, Louisville.
Vaughn previously pleaded guilty to a seven-count federal indictment which included charges of theft and bribery in programs that receive federal funds, money laundering, mail fraud, and filing false federal income tax returns.
Specifically, from January 2007 through August 2013 Vaughn defrauded the Department of Family and Geriatric Medicine at the University of Louisville School of Medicine (DFGM-UofL) and its affiliated private physician practice groups (collectively “DFGM-Practice Groups”). While working as the executive director for DFGM-UofL and the business manager form DFGM-Practice Groups Vaughn stole approximately $2,810,201.53 through the use of the United States mail. Vaughn fraudulently stole contractual checks issued to DFGM-UofL totaling $666,810.11. Vaughn also stole $604,025.57 in patients payments to DFGM-UofL. In addition Vaughn stole another $1,538,654.24 directly from DFGM-Practice Groups’ accounts. During the scheme Vaughn caused T.J. Samson Community Hospital to mail a check for $37,750 that he ultimately stole.
During the course of the scheme to defraud both DFGM-UofL and DFGM-Practice Groups Vaughn concealed his theft through a number of means including the following: he created false bank reconciliations to hide the issuance of checks to himself and he created false bank statements to hide the issuance of checks to himself. In all instances, the financial transactions were conducted with Republic Bank and Chase Bank, federally insured financial intuitions.
On February 19, 2009, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2008 in that it failed to report $377,492 in total income. On January 31, 2010, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2009 in that it failed to report $610,470 in total income. On February 22, 2011, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2010 in that it failed to report $160,121 in total income. On January 23, 2012, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2011 in that it failed to report $546,022 in total income. On March 21, 2013, Vaughn knowingly filed a false U.S. Individual Tax return for calendar year 2012 in that it failed to report $776,660 in total income. Each of the returns was verified by a written declaration that it was made under the penalty of perjury and Vaughn knew in each instance that he was omitting reportable taxable income.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the University of Louisville Police Department, the United States Secret Service, the Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service.
Former Store Owner Pleads Guilty to Charges Involving Synthetic DrugsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Amber Snover, 24, of Rochester, NY, pleaded guilty before Chief U.S. District Court Judge Frank P. Geraci, Jr. to using a communication facility to facilitate a controlled substance felony offense. The charge carries a maximum penalty of four years in prison, a fine of $250,000 or both.Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that the defendant used a telephone to order various synthetic controlled substance analogues. Snover ordered the synthetic drugs for Charles Fitzgerald and others at the 420 Emporium located in Batavia, NY. As part of her plea, the defendant will forfeit $771,109 in United States currency that was seized during the execution of a search warrant at the residence Snover shared with Fitzgerald on West Hills Estates in Rochester on July 25, 2012.
Fitzgerald was convicted of will be sentenced by Judge Geraci on April 15, 2015 at 3:00 p.m. Three employees of Fitzgerald’s who worked at the 420 Emporium stores located in Batavia and Henrietta, NY have also been convicted and are awaiting sentencing.
The plea was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of James J. Hunt, New York Field Division, and investigators from the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause.
Sentencing is scheduled for June 23, 2015, at 10 a.m. before Judge Geraci.
Former State Prison Inmate Sentenced to Four Years in Prison for Mailing Threatening Communications to JudgeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Pennsylvania state prison inmate was sentenced today by Senior U.S. District Court Judge James M. Munley to 48 months in prison for mailing a letter threatening to injure and kill a Monroe County Common Pleas Judge.
According to United States Attorney Peter Smith, the defendant, Devon Williams, age 25, previously admitted that while he was an inmate at the State Correctional Institution in Albion, Pennsylvania, he mailed a letter from the prison in January 2014 to the judge’s chambers at the Monroe County Courthouse in Stroudsburg. The letter threatened harm and death to the judge. Williams pleaded guilty on December 17, 2014.
Williams was indicted by a federal grand jury in September 2014, as a result of an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.
In imposing sentence, Judge Munley noted the defendant’s history of violence, the serious nature of the crime, the impact on the victim of the crime, and the need to protect the public and deter others from committing similar crimes.
Judge Munley ordered the defendant to be placed on three years of supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Former Post Office Manager Sentenced in Bribe SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced former U.S. Postal Service station manager Richard Lewis Wright, III, age 47, of Baltimore, today to 40 months in prison followed by three years of supervised release for bribery in connection with a scheme to obtain U.S. Postal Service contracts in exchange for bribe payments. Judge Hollander also entered an order that Wright forfeit and pay restitution of $501,791.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement and court documents, Wright was the USPS station manager of the Waverly Station in Baltimore. Co-defendant Kimberly Parnell was the USPS station manager of the Pikesville Station in Pikesville, Maryland. As a station manager, Wright and Parnell had authority to contract for landscaping, snow removal and cleaning services at the post offices they managed, and bill those services to USPS for payment.
Beginning in 2007 for Wright and 2010 for Parnell, and continuing until July 2013, Wright and Parnell created, approved and submitted inflated invoices for maintenance work allegedly performed at their post offices. They split the proceeds with the providers of the services, including Shane Anderson and others.
For example, Wright and Parnell initially accepted bribes from a co-conspirator who owned a landscaping company. In July 2013, after becoming increasingly frustrated with the co-conspirator’s slow payment of bribes, Parnell recruited Shane Anderson, who operated a landscaping company in Baltimore called Youthful Minds Lawn Care. The co-conspirators agreed that Wright and Parnell would submit inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.Similarly, beginning in August 2010, Wright also solicited and received bribes from Ladeena Sketers-Anderson, who operated Keep U Clean cleaning service. Sketers-Anderson received USPS payments, approved by Wright for services allegedly provided at Wright’s Post Office. Sketers-Anderson then issued checks to a cleaning company owned by Wright, which Wright cashed.
In all, Wright submitted $591,791 worth of invoices in exchange for bribes.
Kimberly A. Parnell, age 44, and Shane Anderson, age 38, both of Baltimore, and Ladena D. Sketers-Anderson, age 47, of Randallstown, Maryland, previously pleaded guilty to their roles in the scheme. Parnell, who admitted to submitting$50,470 worth of invoices in exchange for bribe payments, was sentenced to 20 months in prison. Both Shane Anderson and Ladena Sketers-Anderson were sentenced to 15 months in prison.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the USPS-Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who prosecuted the case.
Former North Miami Mayor Sentenced in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Former North Miami Mayor was sentenced by United States District Judge Robert N. Scola for her participation in a multi-million dollar mortgage fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, made the announcement.
Following a federal jury trial, Marie Lucie Tondreau, a/k/a “Lucie Tondreau,” 54, of North Miami, was convicted of one count of conspiracy to commit wire fraud and four counts of wire fraud. As shown at trial, between December 2005 and May 2008, Tondreau and her co-defendants Karl Oreste, 56, of Miramar, Florida, and Okechukwu Josiah Odunna, a/k/a “O.J. Odunna,” 49, of Lauderdale, Florida orchestrated a mortgage fraud scheme.
Oreste, president of KMC Mortgage Corporation of Florida (KMC Mortgage), a mortgage lending business in North Miami Beach, identified residential properties in South Florida that were for sale. Oreste and Tondreau, who at the time was a community activist, hosted several radio show programs in the South Florida area in which they advertised the services offered by KMC Mortgage. Oreste and Tondreau recruited and paid some of the listeners who responded to those advertisements, as well as other individuals, to pose as borrowers to purchase properties identified by Oreste.
Oreste, Odunna, and other co-conspirators prepared or caused to be prepared loan applications on behalf of straw borrowers recruited by Oreste and Tondreau. Odunna was an attorney, previously licensed to practice law in the State of Florida, and president of O.J. Odunna, P.A. and Direct Title and Escrow Services (Direct Title). The loan applications included false information relating to employment, wages, assets and the purchaser’s intent to maintain the purchased property as a primary residence. The loan applications and supporting documents were submitted by the co-conspirators to various mortgage lenders, throughout the United States. Once the loan applications were approved, Tondreau wired funds to O.J. Odunna, P.A., Direct Title, or other title companies for the closing costs.
In some instances Oreste, Odunna and other co-conspirators created and submitted duplicate HUD-Settlement Statement Forms, which grossly inflated the true purchase price of the properties. The HUD-1 Settlement Statements also falsely represented to the mortgage lenders that the straw borrowers had met their down payment and cash to close obligations, when in truth and fact, the straw borrowers had never made any such payments.
At closing, a portion of loan proceeds were disbursed to Oreste through his company, JR Investment and Mortgage Corporation, or other bank accounts he controlled. In some instances, a portion of the loan proceeds were diverted to accounts controlled by O.J. Odunna, P.A. and Direct Title. Oreste disbursed some of the proceeds that he received to pay recruiters, such as Tondreau and co-conspirator Kelly Augustin, and straw borrowers. Oreste also transferred a substantial portion of the funds to the bank account of LTO Investment Corporation, a company controlled by Tondreau. Tondreau used the deposited funds to make payments on the fraudulently obtained mortgages, maintain the loans and use the monies for her own personal benefit.
Over the course of the mortgage fraud scheme, Tondreau was involved in obtaining 13 loans for which the lenders suffered approximately $8,000,000 in losses. Of the proceeds from the fraudulent scheme, more than $300,000 was deposited into Tondreau’s business account and an additional $100,000 into her personal bank accounts.
Tondreau was sentenced to 65 months imprisonment, followed by 5 years of supervised release. A restitution hearing has been scheduled for Friday, May 22, 2015, before the Honorable Judge Scola.
In February 2015, Oreste was sentenced to 100 months imprisonment, to be followed by 5 years of supervised release. Oreste was further ordered to pay $8,215,197.28 in restitution.
Odunna and Augustin were indicted and remain fugitives.
Mr. Ferrer commended the investigative efforts of the FBI and Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers and Gera R. Peoples.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Manager of Federal Credit Union Pleads Guilty to EmbezzlementRead the Press Release
LYNCHBURG, VIRGINIA – The former manager of a local, federal credit union pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to embezzlement charges.
Claudia Rawes, 61, of Forest, Va., waived her right to be indicted and pled guilty today to one-count Information charging her with theft and embezzlement from a Federal Credit Union.
According to information presented at today’s guilty plea hearing by Assistant United States Attorney Daniel Bubar, Rawes was hired by the Centra Health Credit Union [CHCU] in 1990 and began managing the Lynchburg General Hospital branch of CHCU around 2005. Rawes admitted today that beginning in the early 1990s she began embezzling and stealing funds from CHCU in a variety of ways.
Mostly commonly, Rawes wrote checks from CHCU corporate accounts in order to make payments on her personal credit cards. Rawes also took a variety of steps to hide her theft. The theft created an increasingly large deficit in CHCU’s corporate account. To avoid further scrutiny, Rawes began altering the credit union’s corporate account statements. She would then provide the altered statements to examiners.
Examiners found a variety of inconsistencies, including statements in Rawes’ possession that had differing amounts of corporate account balances written in tape on top of what appeared to be the original statements. Investigators found that there was a shortfall of over $1 million between what CHCU was carrying on its books for its corporate account versus what was actually in the bank where CHCU kept its corporate deposits.
At sentencing, Rawes faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1 million.
The investigation of the case was conducted by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
Former Iberia Parish Sheriff’s deputy pleads guilty to violating man’s civil rightsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a former Iberia Parish Sheriff’s deputy pleaded guilty to striking a handcuffed man.
Cody Laperouse, 29, of New Iberia, La., pleaded guilty to a one-count bill of information charging a violation of an individual’s civil rights by use of excessive force. The plea was taken by U.S. Magistrate Judge Patrick Hanna. According to evidence presented at the guilty plea, Laperouse, while acting as a deputy of the Iberia Parish Sheriff’s Office on September 29, 2013, struck a man who was under arrest and on the ground with his hands cuffed behind his back. Laperouse was one of several officers tasked with dispersing a large crowd around 1:40 a.m. that had gathered after the close of the Sugar Cane Festival in New Iberia. The crowd was asked to disperse, and the victim was arrested during this time. The victim was instructed to lie flat on the ground in a face-down position, but instead remained on his side and did not comply with the instructions. Laperouse struck the victim twice, using excessive force.
“Law enforcement officers play a critical role in our society and every day put their lives on the line to serve our citizens,” said Finley. “They are the unsung heroes who take an oath to follow the law and to keep us safe. Unfortunately, Mr. Laperouse breached that trust and violated his oath by using excessive force on a member of our community.”
Laperouse faces up to one year in prison, one year supervised release, and a $100,000 fine. A sentencing date was not set.
The FBI and Iberia Parish Sheriff’s Office Internal Affairs Division conducted the investigation. Assistant U.S. Attorneys Joseph T. Mickel and Jamilla A. Bynog are prosecuting the case.
Former Hip-Hop Manager James Rosemond Sentenced in Manhattan Federal Court to Life Plus Twenty Years in Prison for Ordering the Murder of Rap Group Associate Lowell FletcherRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMES ROSEMOND, a/k/a “Jimmy the Henchman,” was sentenced today in Manhattan federal court to life plus twenty years in prison for offenses arising from his role in ordering a crew of men to murder Lowell Fletcher, an associate of the rap group known as “G-Unit,” in retaliation for an assault on Rosemond’s son by Fletcher and other G-Unit associates. ROSEMOND was found guilty of all the counts against him in the indictment, which charged him with committing murder-for-hire, conspiracy to commit murder-for-hire, and two firearms offenses, following a jury trial in December 2014 before United States District Judge Colleen McMahon.
U.S. Attorney Preet Bharara said: “James Rosemond had Lowell Fletcher murdered, and after the deed, Rosemond bragged to a criminal associate that he would never be caught for the murder because Fletcher was merely a ‘gangbanger’ who died in the Bronx. This prosecution has proven Rosemond wrong. The sentence imposed on Rosemond today demonstrates that murdering anyone, anywhere in the Southern District of New York, will not be tolerated.”
According to court papers, including the Government’s sentencing memorandum, and the evidence admitted at trial:
JAMES ROSEMOND was the head of Czar Entertainment, a rap music management company, and also the head of a large-scale cocaine trafficking organization. In 2007, members and associates of a rival rap group known as “G-Unit” – including Marvin Bernard, a/k/a “Tony Yayo,” and his associate Lowell Fletcher, a/k/a “Lodi Mac” – assaulted ROSEMOND’s son. ROSEMOND’s son was not seriously injured in the assault, and Fletcher ended up serving prison time for his involvement in the assault. Nevertheless, ROSEMOND recruited a crew of men to murder Fletcher upon his release from prison – men with whom ROSEMOND had developed criminal relationships through his involvement in the cocaine trade – by promising at least $30,000 in payment for killing Fletcher. At ROSEMOND’s direction, members of the murder crew selected a dark and quiet location for the murder in the vicinity of Mount Eden and Jerome Avenues in the Bronx, and lured Fletcher to that spot. When Fletcher arrived there in the evening on September 27, 2009, a member of the murder crew stepped out of the shadows and fired five bullets into Fletcher’s back using a .22 caliber handgun with a silencer. Fletcher died later that night. On October 2, 2009, ROSEMOND had a trusted employee of his cocaine organization provide a kilogram of cocaine – worth about $30,000 in street value – as payment for the murder.
In imposing today’s sentence, Judge McMahon said that Rosemond’s criminal conduct was “heinous,” “vile,” and “disgusting.”
U.S. Attorney Bharara thanked and praised the U.S. Drug Enforcement Administration, the New York City Police Department, the U.S. Department of Homeland Security, and the U.S. Marshals Service for their outstanding work in this investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Laurie Korenbaum, Nola Heller, Samson Enzer, and Thomas McKay are in charge of the prosecution.
Former Head Teller at Lynrocten Credit Union SentencedRead the Press Release
LYNCHBURG, VIRGINIA – The former head teller of the Lynrocten Credit Union in Lynchburg was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg on federal embezzlement charges.
Teresa Wieringo Humphries, 60, of Madison Heights, Va., previously waived her right to be indicted and pled guilty a one-count Information charging her with embezzlement from a Federal Credit Union. Today in District Court, Humphries was sentenced to 40 months of federal incarceration.
According to evidence presented at previous hearings by Assistant United States Attorney Daniel Bubar, Humphries had been the head teller at the Lynrocten Credit Union since the mid-1980s. Beginning in 2000, and continuing until the credit union’s liquidation, Humphries, and Linda Sue Newcomb, the manager of the credit union, carried out a scheme to embezzle and steal funds from the credit union’s deposits through the unauthorized and fraudulent origination of loans in the names of credit union members. An additional portion of the scheme involved Humphries and Newcomb using check kiting to obtain additional monies of the credit union and conceal and facilitate the fraudulent loan scheme.
The funds created through both the loan and check writing portions of the scheme were eventually funneled to the Lynrocten Credit Union accounts of Humphries, Newcomb and their family members. Between 2007 and the liquidation of the Lynrocten Federal Credit Union in 2013, Humphries personally stole approximately $3,000-$4,000 per month that she deposited into the accounts belonging to her family members. In total, Humphries stole in excess of $1 million from the Lynrocten Federal Credit Union. The overall loss to the credit union, however, was in excess of $10 million, and contributed to the ultimate collapse of that financial institution.
Linda Sue Newcomb is scheduled to be sentenced for her role in the scheme on May 26, 2015 in U.S. District Court in Lynchburg.
The investigation of the case was conducted by the Federal Bureau of Investigation, the United States Secret Service and the Lynchburg Police Department. Acting United States Attorney Anthony P. Giorno and Assistant United States Attorney Daniel Bubar are prosecuting the case for the United States.
Former Congressional Candidate Sentenced to Prison for Violating Federal Campaign Finance LawsRead the Press Release
LISA WILSON-FOLEY, 55, of Simsbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven for violating federal campaign finance laws. Judge Arterton ordered WILSON-FOLEY to serve five months of imprisonment, followed by one year of probation, the first five months of which WILSON-FOLEY must serve in home confinement with electronic monitoring. WILSON-FOLEY also was ordered to pay a fine of $20,000, as well as the cost of her incarceration and electronic monitoring.
“While seeking election to the U.S. House of Representatives, Lisa Wilson-Foley conspired to hide from the electorate payments made to a shadow operative hired to assist her campaign both quietly and on the radio,” stated First Assistant U.S. Attorney Michael J. Gustafson. “It is troubling that she believed that there was nothing wrong with this criminal arrangement and it is equally disturbing that after pleading guilty, she chose to minimize her role in the scheme. Public officials, and candidates for public office, must be held accountable for criminal behavior. Hopefully, awareness that such conduct can result in jail will encourage other candidates and campaign workers to follow the law. I thank the U.S. Postal Inspectors for meticulously investigating this case in an effort to preserve fair and open elections.”
“The U.S. Postal Inspection Service is proud to have led this investigation that unearthed corrupt conduct by a candidate running for federal office,” stated Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “Postal Inspectors will continue to work closely with the Connecticut U.S. Attorney’s Office and our federal law enforcement partners to investigate similar crimes that can corrode our trust in all public officials.”
According to court documents and statements made in court, in 2011 and 2012, LISA WILSON-FOLEY was a candidate for election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District, and competing in a primary campaign for the nomination of the Republican Party. As a candidate for federal office, WILSON-FOLEY and her associates formed and registered with the Federal Election Commission (“FEC”) the “Lisa Wilson-Foley for Congress” committee in order to receive contributions and make expenditures on behalf of her campaign.
WILSON-FOLEY’s husband, Brian Foley, owns a Connecticut nursing home company and a number of other related companies, including a real estate company.
During the primary campaign, WILSON-FOLEY, Brian Foley, former Connecticut Governor John Rowland and others conspired to conceal from the FEC and the public that Rowland was paid money in exchange for services he provided to WILSON-FOLEY’s campaign. As part of the scheme, Rowland proposed to WILSON-FOLEY and Foley that he be hired to work on the campaign. WILSON-FOLEY wanted Rowland to work on the campaign, but believed that because Rowland was a previously convicted felon, public disclosure of his paid role in the campaign would result in substantial negative publicity for WILSON-FOLEY’s candidacy. In order to retain Rowland’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, WILSON-FOLEY, Foley and Rowland agreed that Rowland would be paid by Foley to work on the campaign.
Foley, Rowland and others created and executed a fictitious contract outlining an agreement purportedly for consulting services between Rowland and the law offices of an attorney who worked for Foley’s nursing home company. Foley made regular payments to Rowland for his work on behalf of WILSON-FOLEY’s campaign and routed those payments from his real estate company through the law offices of the attorney. Rowland provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of WILSON-FOLEY’s campaign.
Between September 2011 and April 2012, Rowland was paid approximately $35,000 for services rendered to WILSON-FOLEY’s campaign. The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.
On March 31, 2014, WILSON-FOLEY and Foley each pleaded guilty to conspiring to make illegal campaign contributions. On January 9, 2015, Foley, who cooperated in the investigation and prosecution of this matter, was sentenced to three months in community confinement (halfway house), three years of probation and a $30,000 fine.
On September 19, 2014, a jury found Rowland guilty of two counts of falsification of records in a federal investigation, one count of conspiracy, two counts of causing false statements to be made to the FEC, and two counts of causing illegal campaign contributions. On March 18, 2015, he was sentenced to 30 months of imprisonment, three years of supervised release and a $35,000 fine.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Following Justice Department's Review, Hawaii State Court Commits to Equal Access for Non-English SpeakersRead the Press Release
The Justice Department announced today that it has closed its review of the Hawaii Judiciary’s Language Access Program following the department’s successful provision of technical assistance to the Hawaii Judiciary. The department’s Federal Coordination and Compliance Section (FCS) of the Civil Rights Division began its work following the receipt of complaints raising concerns about the court system’s provision of language services to limited English proficient (LEP) individuals in state court proceedings and court operations in alleged violation of Title VI of the Civil Rights Act of 1964. Title VI requires recipients of federal financial assistance, such as courts, to provide competent language services free of charge to LEP individuals in court proceedings and operations. Nearly 13 percent of Hawaii’s population is LEP.
The department and the Hawaii Judiciary have worked cooperatively to effectuate a number of improvements to language services. The judiciary’s accomplishments include:
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Issuing a clear policy stating that all LEP individuals would be provided competent court interpretation free of charge in court proceedings, and that language services would also be provided for other court operations.
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Implementing an awareness campaign to increase the public’s knowledge on how to access the court’s language services, including the creation of multilingual outreach materials in hard copy and on the web. It also enhanced its website to make it easier to find information about its language assistance services, and created 14 language-specific webpages that contain all of the language-specific translations in one location.
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Beginning to create a language assistance complaint system.
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Revising its court interpreter assignment system, training interpreters and providing mandatory training for judicial staff on the interpreter assignment process.
- Implementing oversight measures to ensure that the language access program complies with Title VI.
“I commend the Hawaii Judiciary for its proactive efforts to provide all communities with equal access to justice regardless of the language they speak,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The results we are seeing in Hawaii are a testament to what collaboration and cooperation can achieve. Hawaii knows its work is not done, and we welcome the opportunity to continue to provide assistance whenever needed.”
The department has worked with courts across the country to improve the provision of language services to LEP individuals. It also released “Language Access Planning and Technical Assistance Tool for Courts” last year which provides court systems with a series of questions to consider as they develop and implement plans to provide language assistance.
Please click here for further information about FCS. For additional LEP-related resources, please go to the Federal Interagency LEP website.
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Following Justice Department's Review, Hawaii State Court Commits to Equal Access for Non-English SpeakersRead the Press Release
WASHINGTON – The Justice Department announced today that it has closed its review of the Hawaii Judiciary’s Language Access Program following the department’s successful provision of technical assistance to the Hawaii Judiciary. The department’s Federal Coordination and Compliance Section (FCS) of the Civil Rights Division began its work following the receipt of complaints raising concerns about the court system’s provision of language services to limited English proficient (LEP) individuals in state court proceedings and court operations in alleged violation of Title VI of the Civil Rights Act of 1964. Title VI requires recipients of federal financial assistance, such as courts, to provide competent language services free of charge to LEP individuals in court proceedings and operations. Nearly 13 percent of Hawaii’s population is LEP.
The department and the Hawaii Judiciary have worked cooperatively to effectuate a number of improvements to language services. The judiciary’s accomplishments include:
- Issuing a clear policy stating that all LEP individuals would be provided competent court interpretation free of charge in court proceedings, and that language services would also be provided for other court operations.
- Implementing an awareness campaign to increase the public’s knowledge on how to access the court’s language services, including the creation of multilingual outreach materials in hard copy and on the web. It also enhanced its website to make it easier to find information about its language assistance services, and created 14 language-specific webpages that contain all of the language-specific translations in one location.
- Beginning to create a language assistance complaint system.
- Revising its court interpreter assignment system, training interpreters and providing mandatory training for judicial staff on the interpreter assignment process.
- Implementing oversight measures to ensure that the language access program complies with Title VI.
"I commend the Hawaii Judiciary for its proactive efforts to provide all communities with equal access to justice regardless of the language they speak," said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. "The results we are seeing in Hawaii are a testament to what collaboration and cooperation can achieve. Hawaii knows its work is not done, and we welcome the opportunity to continue to provide assistance whenever needed."
The department has worked with courts across the country to improve the provision of language services to LEP individuals. http://www.lep.gov/resources/resources.html#SC. It also released "Language Access Planning and Technical Assistance Tool for Courts" last year which provides court systems with a series of questions to consider as they develop and implement plans to provide language assistance.
Please click here for further information about FCS. For additional LEP-related resources, please go to the Federal Interagency LEP website.
Florida Marine Life Dealers Sentenced for Illegally Trafficking in WildlifeRead the Press Release
Two Broward County residents were sentenced by U.S. District Court Judge Jose E. Martinez, in Key West, Florida, for conspiring to illegally sell wildlife.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, National Oceanic and Atmospheric Administration (NOAA) Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, United States Fish and Wildlife Service, Office of Law Enforcement, made the announcement.
Robert V. Kelton, 60, of Hollywood, Florida, and Bruce Brande, 59, of Cooper City, Florida, conspired together and with others to transport, sell, receive, acquire, and purchase live rock and invertebrates, specifically Ricordea florida, with a fair market value in excess of $350.00, knowing the wildlife was taken, possessed, transported, or sold, in violation of the laws and regulations of the State of Florida. Kelton and Brande also knowingly made and submitted false declarations to the United States Fish and Wildlife Service which understated the value of the wildlife which was intended to be imported, transported, sold, purchased, and received from a foreign country.
According to court documents and statements made in court, beginning in October 2006 Kelton and Brande conspired with different marine life collectors to purchase quantities of live rock with attached marine life, such as Ricordea florida, which was illegally harvested and transported from the Florida Keys National Marine Sanctuary (FKNMS). Live rock is an essential building block of the reef system of the Florida Keys. Through October 2010, Kelton produced numerous false invoices, in order to conceal the transactions. The fraudulent invoices documented sales of live rock with marine life attached, purportedly imported from Haiti, to marine life collectors, when in truth and in fact the products were actually harvested from the FKNMS. Records seized by federal agents indicated that Kelton and Brande had made $37,108.41 in sales, at wholesale prices, of live rock with Ricordea and other marine life through a former Miami business, D. R. Imports, Inc. (DRI). The records also showed that that from November 12, 2008, through 2010, 11,567 Ricordea polyps were sold to DRI at a wholesale price of $38,637.50. Half of the wholesale price is attributable to live rock that was illegally harvested from the FKNMS.
From February 2011 through May 2011, Kelton and Brande shipped and sold through interstate commerce to a dealer in Rhinelander, Wisconsin, large pieces of live rock, bearing Ricordea florida and Zoanthus pulchellus, at a wholesale value of almost $5,000. Kelton and Brande knew that the live rock had been illegally harvested from the FKNMS but it was falsely advertised for sale as having originated from Haiti.
Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, the NOAA has established regulations governing the conduct of activities within the Sanctuary. Title 15, Code of Federal Regulations, Section 922.163(a)(2) prohibits the removal of, injury to, or possession of coral or live rock. Section 922.163(a)(2)(I) prohibits moving, removing, taking, harvesting, damaging, disturbing, breaking, cutting, or otherwise injuring any living or dead coral or coral formation, or attempting any of these activities.
Florida Administrative Code, Section 68B-42.008, prohibits the harvesting of live rock. Florida Statute 370.07 requires that a person who sells salt water marine related wildlife, such as Ricordea florida, hold a State wholesale and retail license. None of the individuals and corporations referenced herein, including Kelton and Brande, were authorized to harvest or attempt to harvest any live rock from the FKNMS or State waters during the aforementioned time, nor did they hold the marine related wholesale and retail permits required by Florida Statute 370.07
From January 2009 through December 2012, Kelton and Brande made and submitted fraudulent declarations to the U.S. Fish and Wildlife Service and Customs and Border Protection in order to secure clearance of marine wildlife shipments imported from the Dominican Republic and Haiti for commercial re-sale. The investigation revealed that importations from the Dominican Republic and Haiti businesses, for which a second set of “supplier’s” invoices existed at DRI, reflected commercial values significantly higher than on the invoices and records submitted by Kelton and Brande on DRI’s behalf. The value declared to the federal agencies during the course of the presentation of the importations for clearance was intentionally understated by $352,594.
Kelton was sentenced to a concurrent term of two years imprisonment, followed by three years of supervised release thereafter.
Brande was sentenced to one year and one day, followed by one year of supervised release.
Mr. Ferrer commended the joint investigative efforts of the NOAA Office of Law Enforcement, analysts with the NOAA Office of Law Enforcement Crime Trade Analyst Team, and the U.S. Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys known as Operation Rock Bottom. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-Fitzgerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Sentenced for $100 Million Surety Bond Fraud SchemeRead the Press Release
ATLANTA – Eric Campbell has been sentenced to four years, nine months in prison for operating a multi-million dollar surety bond fraud scheme which caused not only financial losses, but also created delays in construction projects across the country and compromised bids resulting in some contracts being awarded to unqualified construction companies.
“This defendant lied to building contractors and government agencies about his qualifications to issue surety bonds. When his fraud was uncovered and a new valid surety bond had to be found, the construction bidding process was compromised for various projects across the country. There were construction delays, and the construction firms that unwittingly purchased fraudulent surety bonds from the defendant lost hundreds of thousands of dollars in premiums they had paid,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The level of fraud seen in this case was costly in many ways to those doing business with Mr. Campbell. It is hoped that the sentencing of Mr. Campbell will send a clear message to others that these types of criminal schemes to defraud are destined to fail and those involved will be held accountable.”
“Mr. Campbell orchestrated a scheme whereby he defrauded numerous individuals, businesses, and state and local governments of money based on false representations and promises” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Hopefully the sentence today will send a message to other individuals like Campbell, that this conduct will not be tolerated.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From August 2012 until July 2013, Campbell used several corporations to sell fraudulent surety bonds on construction projects. Surety bonds are three party bonding agreements in construction projects where a surety company assures the project owner that a contractor will perform a construction contract. The federal government and many state and local governments require a surety bond for certain construction contracts.
Campbell caused fraudulent surety bonds to be submitted to DeKalb County, Georgia; McDonough, Georgia; the U.S. Veterans Administration; Palo Alto, California; the Commonwealth of Kentucky; American Somoa; the Army Corps of Engineers; Nogales, Arizona; and several United States military bases, among others.
The defendant fraudulently held himself out to contractors and government agencies as having the authority to execute or issue surety bonds on behalf of Federal Insurance Company and Pacific Indemnity Company, affiliates of the Chubb group. To perpetuate the scheme, Campbell created fraudulent surety bonds, embossed the bonds using a counterfeit seal and forged the signatures of Chubb group officials. Campbell and his associates issued bonds with a face value of more than $100 million and received premium payments of more than $2.2 million during the course of the fraud. In addition to financial losses, Campbell’s fraud scheme caused delays in several construction projects and compromised the construction bidding process because contracts were sometimes awarded to unqualified construction companies.
Campbell, 57, of Orange Park, Florida,was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,904,376.67. Campbell was been convicted on this charge on October 20, 2014, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted 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/.
Final Member of Identity Theft and Tax Conspiracy Sentenced to 37 MonthsRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kimberly J. Demata, age 30, of Miami, Florida, was sentenced today in federal court in Anderson, for to conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson sentenced Demata to 37 months imprisonment and ordered her to pay over $91,000 in restitution. She is the last member of the conspiracy to be sentenced. Earlier, Judge Cain sentenced Yeedser D. Palacios, age 33, Wandy A. Fabre, age 29, and Charles Law, age 28, all of Miami, Florida, to 75 months imprisonment, 54 months imprisonment, and 51 months imprisonment, respectively.
Evidence presented at the change of plea hearing established that in February 2013, Fabre, Palacios, and Charles Law traveled to South Carolina for the purpose of filing fraudulent income tax returns and receiving bogus refunds. The three men rented a local hotel room and waited while Kimberly Demata sent them the names, dates of birth, and social security numbers that had been stolen. The trio used this information to file tax returns and directed that the refunds, through H&R Block Bank, be sent to various addresses in Mauldin, South Carolina. Law, Fabre, and Palacios routinely checked mail boxes for the H&R Block debit cards containing the refund amount. For returns that they filed using Florida addresses, Demata would check the mail boxes for the cards.
Law enforcement discovered the conspiracy when a citizen reported seeing a Ford Expedition stopping by various mail boxes in his neighborhood. The Mauldin Police Department and U.S. Postal Inspectors conducted surveillance and arrested the three conspirators after watching them pull items from a local box. Further investigation revealed that the conspirators filed over 60 fraudulent returns. The average amount of refund claimed was between $5000 and $7000. Law enforcement estimates that the conspiracy stole over $350,000 before the first arrests were made on March 15, 2013.
The case was investigated by agents of the Mauldin Police Department, the United States Postal Inspection Service, and the Internal Revenue Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.#####
Farmington Man Sentenced to Five Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Pedro Lucero, 38, of Farmington, N.M., was sentenced this morning in federal court in Albuquerque, N.M., for his methamphetamine trafficking conviction. Lucero was sentenced to five years in federal prison followed by three years of supervised release.
Lucero was one of 29 individuals charged in Feb. 2014, with drug trafficking charges as the result of a multi-agency investigation targeting drug trafficking in northwestern New Mexico. The investigation culminated on Feb. 26, 2014, when 26 of the defendants were arrested during a law enforcement operation led by Homeland Security Investigation (HSI) and the HIDTA Region II Narcotics Task Force. Two other defendants were arrested during the course of the investigation and the final defendant was arrested on March 3, 2014.
The 29 defendants were charged as a result of Operation “Brown Ice,” a year-long investigation that initially targeted a methamphetamine trafficking organization led by Isaac Anaya that distributed quantities of methamphetamine throughout San Juan County and expanded to include other drug trafficking activity in the area. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Thirteen of the defendants, including ringleader Isaac Anaya, 31, of Farmington, N.M., were charged in a 15-count federal indictment alleging a conspiracy to distribute methamphetamine in San Juan County from May 2013 through Sept. 2013. The remaining 16 defendants were charged with state drug trafficking and firearms offenses based on criminal complaints. During the course of the investigation, officers seized approximately five pounds of methamphetamine and five firearms. The law enforcement operation on Feb. 24, 2014, included the execution of eleven federal search warrants at two Bloomfield residences, four Farmington residences, two residences in San Juan County, two Bloomfield businesses, two Farmington businesses and a storage unit in Bloomfield. It also included the execution of three state search warrants at two residences in San Juan County and one Farmington residence. Officers seized numerous firearms, including a fully automatic Glock 19, a short-barreled rifle and a carbine with an obliterated serial number, four blasting caps, four small binary explosives and approximately 31.7 grams of methamphetamine during the execution of the search warrants and the law enforcement operation.
The federal and state cases filed as a result of Operation “Brown Ice” were investigated by the HSI office in Albuquerque, San Juan County Sheriff’s Office, HIDTA Region II Narcotics Task Force, Bloomfield Police Department, Farmington Police Department and Aztec Police Department. Assistant U.S. Attorneys Reeve L. Swainston and Shana B. Long are prosecuting the federal case, and Assistant District Attorney David Cowen of the 11th Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Region II Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
El Paso Man Sentenced to Federal Prison for Transporting Illegal Aliens in New MexicoRead the Press Release
ALBUQUERQUE – Victor Corral, 25, of El Paso, Texas, was sentenced this morning in federal court in Las Cruces, N.M., to 27 months in federal prison followed by three years of supervised release for transporting illegal aliens into Doña Ana County, N.M.
Corral was arrested on July 24, 2014, on a criminal complaint charging him with conspiracy to transport illegal aliens. According to the complaint, on that day, U.S. Border Patrol Agents encountered Corral along with four other individuals traveling on New Mexico Highway 9. At the time of the encounter, Corral and the driver of the vehicle were transporting three illegal aliens from the United States/Mexico border where the illegal aliens had unlawfully entered the country to a location in El Paso, Texas. According to the criminal complaint, Corral made a post arrest statement in which he acknowledged that he earned approximately $3,000.00 a week over a nine-month period for smuggling illegal aliens from El Paso to other locations in the United States.
Corral pled guilty on Sept. 5, 2014, to a felony information charging him with conspiracy to transport illegal aliens. The plea was entered without the benefit of a plea agreement.
This case was investigated by the Santa Teresa Customs and Border Protection/U.S. Border Patrol and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Dupree Man Sentenced for Assault with A Dangerous Weapon and Aiding and AbettingRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man convicted of Assault with a Dangerous Weapon and Aiding and Abetting was sentenced on March 23, 2015, by U.S. District Judge Roberto A. Lange.
Todd Johns, age 26, was sentenced to 24 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Johns was indicted by a federal grand jury on September 16, 2014, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. He pled guilty to Assault with a Dangerous Weapon and Aiding and Abetting on January 6, 2015.
The conviction arose from a July 2014 incident in Eagle Butte, in which Johns and two others assaulted a victim with shod feet, metal crutches, and wooden clubs, with intent to do bodily harm.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Johns was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.