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Friday 9 January 2015
Statement on Shootings of Albuquerque Police OfficersRead the Press Release
ALBUQUERQUE – This week two Albuquerque Police Department officers were shot and seriously injured in the line of duty. These tragic events underscore the very real dangers that our brave law enforcement officers face every day they are on the job. It is our great hope that both of these officers will recover fully and that the community will support them and their families during this difficult time. We owe our courageous law enforcement officers a tremendous debt of gratitude for their service and sacrifices.
Seymour Man Who Filed False Tax Return, Structured Funds, Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL S. VASATURO, 57, of Seymour, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to two years of probation for filing a false tax return. He was also ordered to pay a $16,000 fine and perform 100 hours of community service.
According to court documents and statements made in court, VASATURO, a business executive, earned supplemental income of approximately $132,500 in 2007 based on a private sale of copper to a scrap metal dealer, but failed to report any of the copper sale income on his 2007 federal income tax return.
VASATURO has previously paid the Internal Revenue Service $80,964.81 for the taxes plus interest and penalties due and owing on his unreported income. He also agreed to forfeit an additional $144,888 in cash that he admits to having “structured” into his bank account to avoid federal cash transaction reporting requirements.
On August 22, 2014, VASATURO pleaded guilty to one count of filing a false tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
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[email protected]Sentencing in Cocaine CaseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Schevris Hawkins, a resident of Mobile, Alabama, was sentenced today by United States District Court Judge Granade to a custody sentence of 113 months.
Hawkins had previously entered a guilty plea to attempt to possess with intent to distribute a kilogram of cocaine.
The matter was investigated by the Office of Homeland Security, HSI, and the Mobile County Sheriff’s Office and was prosecuted by AUSA Deborah Griffin.
Second Man Sentenced in Armed Robbery of Tampa BankRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edward Honeywell today sentenced Keverick Lavar Brown (27, Tampa) to eight years and nine months in federal prison for bank robbery and brandishing a firearm in furtherance of a crime of violence. The Court also ordered him to forfeit the high-capacity firearm used in the robbery. He pleaded guilty on August 27, 2014.
According to court documents, on March 14, 2014, Brown and Erskine James McKinley committed an armed robbery of a Fifth Third Bank in Tampa. Both wore hats, masks, sunglasses, gloves, and dark clothing. During the robbery, Brown pointed a loaded .45 caliber pistol at bank employees and customers. The men escaped with more than $5,000, but discarded it when a dye pack exploded in the parking lot. Later that same day, law enforcement officers located the men at Brown’s residence in Tampa. Inside the residence, they found items the pair had used in the bank robbery, including their disguises and the firearm.
McKinley (24, Belle Glade) pleaded guilty to his role in the crime on June 12, 2014. He was sentenced on October 12, 2014, to 16 years and 8 months in federal prison.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Porcupine Woman Charged with False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, woman has been indicted by a federal grand jury for False Statement.
Danishia Marshall, age 19, was indicted on December 16, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on January 6, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 3, 2013, Marshall knowingly and willfully made a materially false, fictitious, and fraudulent statement when she told a special agent that she had been sexually assaulted by an officer when she, in fact, knew she had not been sexually assaulted.
The charge is merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Marshall was released on bond pending trial, which has been set for March 17, 2015.
Phoenix Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Judge John M. Gerrard sentenced Jose Luis Meza-Lopez, age 39, to 210 months in federal prison on two counts of conviction, followed by 5 years of supervised release. The sentences are to be served concurrently.
Mr. Meza-Lopez, from Phoenix, Arizona, pled guilty to conspiracy to distribute methamphetamine and conspiracy to launder money on October 16, 2014. Meza-Lopez had been involved in the transportation of methamphetamine from Phoenix to Lincoln where it was distributed in the eastern Nebraska area by a group headed by Ramon Garcia. Meza-Lopez prepared cars in Phoenix which transported large quantities of methamphetamine to Lincoln. Those cars then took cash back to Phoenix from Lincoln. He was found responsible for 45 pounds of methamphetamine sent to Lincoln by the organization between February and October 22, 2013. The organization made about 19 round trips during that time. The last known trip resulted in Ramon Garcia’s arrest in Lincoln on October 22, 2013. Garcia was about to exchange a car containing $10,000.00 in cash for one which had just been driven from Phoenix which contained about 4 pounds of methamphetamine.
This case was investigated by the FBI and the Lincoln/Lancaster County Drug Task Force.
Pharmacy Owner and Manager Sentenced for Conspiracy to Distribute Oxycodone and Money Laundering in Fort MyersRead the Press Release
Fort Myers, Florida – United States District Judge John E. Steele has sentenced Cape Coral residents Jeffrey R. Green (51) and Karen S. Hebble (44) for conspiracy to unlawfully distribute oxycodone and money laundering. Green, the former owner of Gulf Coast Medical Pharmacy, was sentenced to seven years in federal prison. Hebble, the pharmacy manager, was sentenced to five years’ imprisonment. The Court entered a money judgment against the defendants, in the amount of $4,918,603.36, representing the proceeds earned from unlawfully selling oxycodone. Green was also ordered to forfeit $1,253,419.09 seized from his company’s bank account; $347,423.56 used to pay off the mortgage on his Cape Coral home; his Florida pharmacy technician’s license; and all of his interest in both Gulf Coast Medical Pharmacy, Inc. and Gulf Coast Infusion Center, Inc.
Green and Hebble were found guilty by a federal jury on May 1, 2014.
According to testimony and evidence presented at trial, from 2009 through October 6, 2011, Green and Hebble filled, or caused to be filled, prescriptions for oxycodone that had not been issued for legitimate medical purposes. They also distributed oxycodone without the supervision and control of a licensed pharmacist.
This case was investigated by the Drug Enforcement Administration Task Force, which includes the Naples Police Department, the Charlotte County Sheriff’s Office, and other local law enforcement agencies. This case was prosecuted by Assistant United States Attorneys Yolande G. Viacava, Robert P. Barclift, and David Lazarus.
Pharmaceutical Manufacturer Daiichi-Sankyo to Pay $39 Million to Resolve Allegations that It Paid Kickbacks to PhysiciansRead the Press Release
Boston – Daiichi Sankyo, Inc., a global pharmaceutical company with its U.S. headquarters in New Jersey, has agreed to pay the United States and state Medicaid programs $39 million to resolve allegations that it violated the False Claims Act by using lavish meals and speaker program honoraria as kickback vehicles to induce physicians to prescribe the drugs Azor, Benicar, Tribenzor, and Welchol.
“Drug companies are prohibited from using lavish entertainment and padded speaker program payments to induce physicians to prescribe their drugs for beneficiaries of federal health care programs,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “Settlements like this one show that the government will continue to pursue health care companies that use kickbacks to promote their products.”
The settlement resolves allegations that Daiichi caused the submission of false claims for Azor, Benicar, Tribenzor, and Welchol. The claims were false because they resulted from kickbacks that Daiichi provided to physicians who prescribed the drugs. Specifically, it is alleged that Daiichi’s kickbacks took the form of honoraria payments, meals and other remuneration to physicians who participated, or supposedly participated, in Physician Opinion & Discussion programs (PODs) from Jan. 1, 2005, through March 31, 2011, and other speaker programs from Jan. 1, 2004, through Feb. 4, 2011. The United States contends that the honoraria, meals and other remuneration were kickbacks because Daiichi paid physicians who participated in the speaker programs even if, among other things: (1) the honoraria recipient spoke only to members of his or her own staff in his or her own office; (2) the physician participants in PODs took turns accepting a “speaker” honoraria for duplicative discussions; (3) the audience included the honoraria recipient’s spouse; (4) the honoraria recipient did not speak at all because the event was cancelled beforehand; and/or (5) the associated dinners were lavish and at times even exceeded Daiichi’s own internal cost limitations of $140 per person.
“The Anti-Kickback Statute prohibits payments intended to influence a physician’s ordering or prescribing decisions,” said Acting Assistant Attorney General Joyce R. Branda for the Department of Justice’s Civil Division. “The Department of Justice is committed to preserving the independence and objectivity of those decisions, which is a cornerstone of our public health programs.”
"This settlement is evidence of the continuing efforts of the Defense Criminal Investigative Service and our law enforcement partners to protect medical beneficiaries and assure integrity within the pharmaceutical industry," said Craig W. Rupert, Special Agent in Charge of the DCIS Northeast Field Office, the investigative arm of the Office of the Inspector General, Department of Defense. "The Department of Defense purchases substantial quantities of pharmaceuticals and is affected by fraud schemes within this industry. DCIS will continue to aggressively pursue allegations of fraud and corruption harmful to U.S. taxpayers and the Department."
"It is vital to veterans receiving care at the VA that they are prescribed safe and effective medications for the sole purpose of healing their ailments,” said Special Agent in Charge Jeffrey Hughes. “The VA Office of Inspector General will continue to work with our partners in the law enforcement community to ensure that is the case.”
“Schemes such as this are particularly abhorrent,” said Inspector General Daniel R. Levinson for the U.S. Department of Health and Human Services. “Manufacturers and physicians who engage in them are cheating Medicare and Medicaid out of millions of dollars and threatening programs upon which many elderly and disabled Americans rely. My office will take whatever steps necessary to guard against improper alliances between manufacturers of drugs and those who prescribe them. Through our Corporate Integrity Agreement we will be closely monitoring Daiichi.”
“This settlement is another example of the FBI’s commitment to ensure those who refuse to play by the rules and provide illegal incentives to influence the decision-making of health care providers are held accountable,” said Vincent B. Lisi, Special Agent in Charge of the FBI’s Boston Division.”
The Anti-Kickback Statute was enacted to ensure that physicians’ medical judgment is not compromised by improper payments or gifts. The statute generally prohibits anyone from offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid.
As part of the settlement, Daiichi has agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which obligates Daiichi to undertake substantial internal compliance reforms for the next five years.
The settlement announced today stems from a complaint filed by Kathy Fragoules, a former Daiichi sales representative, under the whistleblower provisions of the False Claims Act, which authorize private parties to sue on behalf of the United States, and to receive a portion of any recovery. Ms. Fragoules will receive $6.1 million of the federal recovery.
This matter was investigated by the Department of Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of the Inspector General; HHS-OIG; and the Federal Bureau of Investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro, Lisa Asiaf, and Giselle Joffre of Ortiz’ office; Department of Justice Trial Attorney Douglas Rosenthal; Zachary Cunha, currently an Assistant U.S. Attorney in the District of Rhode Island; and Kimberly Friday, currently an Assistant U.S. Attorney in the Northern District of California.
The case is captioned U.S. ex rel. Fragoules v. Daiichi Sankyo, Inc., Civil Action No. 10-10420 (D. Mass.).
Palmetto Woman Sentenced to More Than Five Years for Embezzling FundsRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday has sentenced Beverly Sue Gingell (61, Palmetto) to five years and three months in federal prison for wire fraud and obstructing and impeding the administration of the Internal Revenue Service. She was also ordered to pay restitution in the amount of $651,347.42 and to forfeit $745,000, which represents the proceeds of the fraud.
Gingell pleaded guilty on October 22, 2014.
According to court documents, Gingell was formerly employed as the finance manager at Pro-Link, a company located in Bradenton. Gingell falsely represented to the company that she was a Certified Public Accountant with years of experience as a comptroller, and was an enrolled IRS agent, when she was not. From July 2010, through March 2011, Gingell embezzled $745,000 from the company. She did so by sending money to her own bank account via wire transfer and by obtaining money orders payable to herself and others. She used one wire transfer to pay off the remaining balance on her mortgage. Gingell also misrepresented the results of an IRS audit to Pro-Link’s owners, and effectively concealed her forgery on documents to the IRS, which resulted in a substantial tax liability to the company.
This case was part of a joint investigative effort by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Owner of Miami Home Health Company Pleads Guilty for Role in $32 Million Medicare Fraud SchemeRead the Press Release
A Miami owner of a home health care company pleaded guilty today in connection with a $32 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Felix Gonzalez, 45, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Kathleen M. Williams of the Southern District of Florida. A sentencing hearing is scheduled for March 19, 2015.
According to his plea documents, Gonzalez was an owner of AA Advanced Care Inc. (AA Advanced), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. In connection with his guilty plea, Gonzalez admitted that he and his co-conspirators operated AA Advanced for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided at all.
Gonzalez further admitted that he negotiated and paid kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Gonzalez admitted that he and his co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services.
From approximately January 2006 through March 2009, AA Advanced submitted approximately $32 million in claims for home health services that were not medically necessary or not provided, and Medicare paid approximately $22 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer and Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Financial Services Company Pleads Guilty to Cashing More Than $17 Million in Fraudulent Federal Tax Refund ChecksRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Wilson Benjamin (55, Apopka) has pleaded guilty to theft of government property. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, Benjamin used his company, Benjamin Financial Services, to cash approximately 2,000 fraudulently filed federal income tax return checks worth $17.8 million. More than 400 of the returns were filed in the names of deceased taxpayers.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Owner of Allergy Lab Sentenced for Faking Allergy Test ResultsRead the Press Release
ATLANTA - Rahsaan Jackson Garth has been sentenced to federal prison for committing health-care fraud by faking the results of allergy tests that patients’ doctors had ordered.
“Garth endangered the health and safety of citizens, including children, by faking their allergy test results and misleading their doctors,” said United States Attorney Sally Quillian Yates. “People trust doctors to make decisions that could permanently affect a patient’s health based on those results. Garth put his own financial wealth ahead of people’s health.”
“The defendant placed the pursuit of his own prosperity ahead of the well-being of patients, many of whom were children and the elderly” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Today’s sentence should serve as an example of the OIG’s commitment to pursue those who seek to exploit the trust and confidence of patients and doctors for their own gain.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant, Rahsaan Jackson Garth, a/k/a/ R. Jackson Garth, opened an allergy laboratory in 2011, named Polaris Allergy Labs, Inc., located in East Point, Ga. Doctors sent their patients’ blood samples to Polaris Allergy Labs, Inc. to be tested for food and environmental allergies. Beginning in approximately September 2012, and continuing through February 2014, Garth directed his allergy laboratory technician not to test some of the blood samples for allergens in order to save money by not using the allergen reagents necessary for testing. Instead of testing the blood, Garth created fake allergy test result reports for the patients, and then had the fake test result reports sent back to the patients’ doctors.
Sometimes Garth created results showing no allergic reaction, and other times he created results showing an allergic reaction, in order to avoid raising the suspicions of the doctors to whom he sent fake test result reports. The patients’ doctors were unaware that Garth was sending them fake allergy test results for their patients, putting each of those patients at risk.
After creating a fake allergy test report for a patient, Garth caused a bill to be submitted to the patient’s health care benefit program, even though no service had in fact been provided.During the investigation, law enforcement officials notified the doctors and patients who were potentially affected by Garth’s fraudulent testing activities.
Garth, 40, of Hampton, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr., to three years and ten months in federal prison, three years of supervised release, ordered to pay $246,536.50 in restitution, and perform 100 hours of community service. On July 22, 2014, Garth pleaded guilty to one count of healthcare fraud.
This case is being investigated by Special Agents of the U.S. Department of Health and Human Services, Office of the Inspector General.Assistant United States Attorney Mary L. Webb 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/.
Okreek Man Sentenced for Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Okreek, South Dakota, man convicted of Assault by Strangulation and Suffocation was sentenced on January 5, 2015, by U.S. District Court Judge Roberto A. Lange.
Joe Scott, age 36, was sentenced to 27 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Scott was indicted by a federal grand jury on April 22, 2014. He pled guilty on October 27, 2014.
The conviction stems from an incident on or about March 23, 2014, when Scott, his girlfriend and her three children were traveling from Mission to Okreek, where Scott lives. Scott was intoxicated, and he started to argue with his girlfriend and threatened her. While she was driving, he struck her and put his hands around her throat, which impacted her normal breathing and the circulation of blood in her neck and throat. He also reached over from the passenger seat and grabbed the steering wheel and directed the vehicle across the centerline and toward oncoming vehicles. The victim fought to retain control of the steering wheel and was able to get the vehicle back into the proper lane. Once at their destination, Scott struck, pinned, and strangled the victim again.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Scott was immediately turned over to the custody of the U.S. Marshals Service.
New York Alien Smuggler SentencedRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Roberto Rivera-Ortiz, 28, a resident of the New York City area, was sentenced today in United States District Court in Burlington following his guilty plea to a charge that he made false statements to members of the United States Border Patrol. Chief U.S. District Judge Christina Reiss sentenced Rivera-Ortiz to time served, to be followed by one year of supervised release. As a condition of supervised release, the court ordered Rivera-Ortiz to perform 100 hours of community service.
According to court records, on the morning of September 2, 2014, Border Patrol agents in Derby Line encountered a male and a female after they had walked across the United States-Canadian border through a clump of trees in a residential area. When the two individuals noticed a marked Border Patrol cruiser nearby, they began running in a southerly direction. Agents apprehended the male, a Mexican national with no status in the United States. The female, who proved to be a citizen of El Salvador, was arrested the next day.
At about the same time, another Border Patrol agent noticed Rivera-Ortiz standing beside a vehicle on a street in Derby Line, near where the aliens had been encountered. The hood on Rivera-Ortiz's vehicle was up and he was talking on a cellphone. Immigrations records showed that Rivera-Ortiz's car had entered Canada at Niagara Falls last June, and had entered the United States at Derby Line earlier that morning. When questioned about his nationality and immigration status, Rivera-Ortiz appeared nervous. Agents escorted the defendant to the Newport Border Patrol station, where they soon established that he had transported the two aliens from Montreal to just north of the border, let them out to cross the border on foot, entered the United States lawfully in his car and was in the process of attempting to pick them up to drive them to New York when he was approached by the Border Patrol.
Rivera-Ortiz is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Mustafa Kamel Mustafa, AKA “Abu Hamza,” Sentenced in Manhattan Federal Court to Life ImprisonmentRead the Press Release
Convicted After Trial of Multiple Counts of Providing Material Support to al Qaeda
Charges Based on Participating in a Deadly Hostage-Taking in Yemen,
Conspiring to Establish a Terrorism Training Camp in the United States, and
Sending One of his Followers to Train and Fight with al Qaeda in Afghanistan
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara for the Southern District of New York announced that Mustafa Kamel Mustafa, aka “Abu Hamza,” aka “Abu Hamza al Masri,” (“Abu Hamza”) was sentenced today in Manhattan federal court to life imprisonment by U.S. District Judge Katherine B. Forrest for his participation in a hostage-taking in Yemen in 1998 that resulted in four deaths, a conspiracy to establish a terrorist training camp in Bly, Oregon, and sending a follower to train and fight with al Qaeda in Afghanistan in 2000. Abu Hamza, who was extradited from the United Kingdom to the Southern District of New York in October 2012, was found guilty on May 19, 2014, following a four-week jury trial, of each of the 11 charges he faced.
“Abu Hamza is an unrepentant all-purpose terrorist,” said Assistant Attorney General Carlin. “With today’s sentence, he is being held accountable for the many ways in which he supported terrorism and other terrorists through much of his life, including his role in a hostage-taking in Yemen, his plot to create a terrorist training camp on U.S. soil, and his facilitation of violent jihad in Afghanistan. This case was charged over ten years ago and was tried after years of extradition proceedings—and is but one example of our resolve to pursue those who threaten the United States and our interests anywhere in the world, no matter how long it takes. I applaud the many prosecutors, agents, and analysts who have devoted years of hard work to the pursuit of justice in this case.”
“Abu Hamza’s blood-soaked journey from cleric to convict, from Imam to inmate, is now complete,” said U.S. Attorney Bharara. “In May, after a fair and public trial, a jury pronounced Abu Hamza guilty for his leadership and support of, as well as participation in, terrorist activities, ranging from a fatal hostage-taking in Yemen to establishing a terrorist training camp in Oregon to sending a follower to aid Al Qaeda in Afghanistan. After years of fighting extradition, Abu Hamza finally faced justice, as all those who engage in terrorism against innocent civilians must, here in the U.S., and all around the globe, as the terrible events in Paris remind us.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Hostage-Taking in Yemen in December 1998
On Dec. 28, 1998, in Yemen, hostage-takers stormed a caravan of sport utility vehicles carrying 16 tourists, including two United States citizens, and took the tourists hostage by force. Before the hostage-taking, Abu Hamza issued a public warning to “infidels” not to travel to Yemen. In addition, five days prior to the hostage-taking, Abu Hamza’s stepson and other associates of Abu Hamza were arrested in Yemen. During the hostage-taking, the hostages told their victims that they were taken prisoner to free the hostage-takers’ “friends.”
Before the hostage-taking, Abu Hamza provided the leader of the hostage-takers with a satellite telephone, and subsequently spoke with him on that satellite telephone the night before the hostage-taking and during the hostage-taking. During the call on the day of the hostage-taking, Abu Hamza agreed to act as an intermediary on behalf of the hostage-takers. Abu Hamza also provided advice to the leader of the hostage-takers over the telephone.
On Dec. 29, 1998, the Yemeni military launched a rescue operation to free the hostages. The hostage-takers fought the Yemeni military, using the hostages as human shields. During the rescue operation, four of the hostages were killed and several others were wounded.
Subsequently, in a recorded interview with one of the surviving hostages conducted at his mosque, Abu Hamza said that hostage-taking was “a good thing” under Islam, that people had been warned to stay out of Yemen, that the plan was to hold the tourists captive “until the government let my people go,” and that the hostage-takers “snatched you to exchange you.”
Efforts to Create a Terrorist Training Camp in Bly, Oregon, in 1999
In late 1999, Abu Hamza and several of his followers, including Oussama Abdullah Kassir, Haroon Rashid Aswat, Earnest James Ujaama, and others, attempted to create a terrorist training camp to support al Qaeda on property located in Bly, Oregon. The primary purpose of the Bly, Oregon, camp was to provide various types of terrorist training, including weapons training. In late November 1999, at Abu Hamza’s direction, Kassir and Aswat traveled from London, England, to Bly to assist in setting up the camp. Kassir brought with him to the camp a manual on the use of sarin nerve gas and letters of appreciation to Usama bin Laden and Abu Hamza. Aswat subsequently was present at an al Qaeda guest house in Pakistan.
On May 12, 2009, after a four-week jury trial in this district, Kassir was convicted of various criminal offenses, including conspiring to provide material support to terrorists and to al Qaeda, and conspiracy to kill persons overseas, as a result of Kassir’s participation in the efforts to establish the Bly terrorist training camp. On Sept. 15, 2009, United States District Judge John F. Keenan sentenced Kassir to multiple terms of life in prison. The conviction was subsequently affirmed by the Court of Appeals.
Aswat was arrested in Zambia in July 2005 and then deported to England, where he was arrested at the request of the United States, pursuant to a warrant issued in this district. Aswat was extradited to the United States on Oct. 21, 2014. The charges against Aswat are currently pending, and trial is scheduled to commence before Judge Forrest on June 1, 2015.
Facilitating Violent Jihad in Afghanistan in 2000 and 2001
In November 2000, Abu Hamza requested that Ujaama escort another one of Abu Hamza’s followers, Feroz Abassi, from London to Ibn Sheikh al-Libi, a commander at a terrorist training camp in Afghanistan. Thereafter, Ujaama and Abassi traveled from London to Pakistan. Ujaama and Abassi then separately entered Afghanistan. Abu Hamza subsequently conveyed instructions for Abassi to contact Ibn Sheikh al-Libi, who was expecting Abassi. Thereafter, Abassi passed through an al Qaeda safe house in Afghanistan, attended al Qaeda’s al Faruq training camp, and met with senior al Qaeda leaders. In December 2001, United States forces took Abassi into custody in Afghanistan.
In addition, from the spring of 2000 through late 2001, Abu Hamza provided goods and services to the Taliban by, among other things, directing Ujaama to deliver money to Taliban-controlled parts of Afghanistan.
Ujaama was arrested in 2002 and testified against Abu Hamza as a cooperating witness for the government.
* * *
Abu Hamza, 56, a naturalized citizen of the United Kingdom, was convicted after trial of 11 offenses, including conspiracy to take hostages; hostage-taking; conspiracy to provide material support to terrorists; providing material support to terrorists; conspiracy to provide material support to a foreign terrorist organization (al Qaeda); providing material support to a foreign terrorist organization (al Qaeda); and conspiracy to provide goods and services to the Taliban.
In addition to the prison term, Abu Hamza was ordered to pay a $1,100 special assessment fee. In addressing Abu Hamza's conduct, Judge Forrest described it as "barbaric, misguided and wrong," and remarked, "It is important to me that you have not expressed sympathy for the victims of the Yemeni kidnappings."
Abu Hamza’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the Justice Department's National Security Division, the Federal Bureau of Investigation, the New York City Police Department, the United States Marshals Service, and New Scotland Yard in the United Kingdom.
The U.S. Department of Justice’s Office of International Affairs contributed extraordinary assistance with the extradition in this case. The U.S. Attorney also thanked the FBI’s Seattle Field Office, the Home Office of the United Kingdom, the United States Department of State, and the United States Department of the Treasury’s Office of Foreign Assets Control for their assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterterrorism Section of the Justice Department's National Security Division. Assistant U.S. Attorneys John P. Cronan, Edward Y. Kim and Ian McGinley are in charge of the prosecution.
Mustafa Kamel Mustafa, A/k/a “Abu Hamza,” Sentenced in Manhattan Federal Court to Life in PrisonRead the Press Release
Charges Based on Participating in a Deadly Hostage-Taking in Yemen, Conspiring to Establish a Terrorism Training Camp in the United States, and Sending One of his Followers to Train and Fight with al Qaeda in Afghanistan
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that MUSTAFA KAMEL MUSTAFA, a/k/a “Abu Hamza,” a/k/a “Abu Hamza al Masri,” (“ABU HAMZA”) was sentenced today in Manhattan federal court to life in prison by U.S. District Judge Katherine B. Forrest, for his participation in a hostage-taking in Yemen in 1998 that resulted in four deaths, a conspiracy to establish a terrorist training camp in Bly, Oregon, and sending a follower to train and fight with al Qaeda in Afghanistan in 2000. ABU HAMZA, who was extradited from the United Kingdom to the Southern District of New York in October 2012, was found guilty on May 19, 2014, following a four-week jury trial, of each of the 11 charges he faced.
Manhattan U.S. Attorney Preet Bharara said: “Abu Hamza’s blood-soaked journey from cleric to convict, from Imam to inmate, is now complete. In May, after a fair and public trial, a jury pronounced Abu Hamza guilty for his leadership and support of, as well as participation in, terrorist activities, ranging from a fatal hostage-taking in Yemen to establishing a terrorist training camp in Oregon to sending a follower to aid Al Qaeda in Afghanistan. After years of fighting extradition, Abu Hamza finally faced justice, as all those who engage in terrorism against innocent civilians must, here in the U.S., and all around the globe, as the terrible events in Paris remind us.”
Assistant Attorney General Carlin said: “Abu Hamza is an unrepentant all-purpose terrorist. With today’s sentence, he is being held accountable for the many ways in which he supported terrorism and other terrorists through much of his life, including his role in a hostage-taking in Yemen, his plot to create a terrorist training camp on U.S. soil, and his facilitation of violent jihad in Afghanistan. This case was charged over ten years ago and was tried after years of extradition proceedings—and is but one example of our resolve to pursue those who threaten the United States and our interests anywhere in the world, no matter how long it takes. I applaud the many prosecutors, agents, and analysts who have devoted years of hard work to the pursuit of justice in this case.”
According to the evidence presented at trial, statements made during other public proceedings including today’s sentencing, and other court documents:
Hostage-Taking in Yemen in December 1998
On December 28, 1998, in Yemen, hostage-takers stormed a caravan of sport utility vehicles carrying 16 tourists, including two United States citizens, and took the tourists hostage by force. Before the hostage-taking, ABU HAMZA issued a public warning to “infidels” not to travel to Yemen. In addition, five days prior to the hostage-taking, ABU HAMZA’s stepson and other associates of ABU HAMZA were arrested in Yemen. During the hostage-taking, the hostages told their victims that they were taken prisoner to free the hostage-takers’ “friends.”
Before the hostage-taking, ABU HAMZA provided the leader of the hostage-takers with a satellite telephone, and subsequently spoke with him on that satellite telephone the night before the hostage-taking and during the hostage-taking. During the call on the day of the hostage-taking, ABU HAMZA agreed to act as an intermediary on behalf of the hostage-takers. ABU HAMZA also provided advice to the leader of the hostage-takers over the telephone.
On December 29, 1998, the Yemeni military launched a rescue operation to free the hostages. The hostage-takers fought the Yemeni military, using the hostages as human shields. During the rescue operation, four of the hostages were killed and several others were wounded.
Subsequently, in a recorded interview with one of the surviving hostages conducted at ABU HAMZA’s mosque, ABU HAMZA said that hostage-taking was “a good thing” under Islam, that people had been warned to stay out of Yemen, that the plan was to hold the tourists captive “until the government let my people go,” and that the hostage-takers “snatched you to exchange you.”
Efforts to Create a Terrorist Training Camp in Bly, Oregon in 1999
In late 1999, ABU HAMZA and several of his followers, including Oussama Abdullah Kassir, Haroon Rashid Aswat, Earnest James Ujaama, and others, attempted to create a terrorist training camp to support al Qaeda on property located in Bly, Oregon. The primary purpose of the Bly, Oregon, camp was to provide various types of terrorist training, including weapons training. In late November 1999, at ABU HAMZA’s direction, Kassir and Aswat traveled from London, England, to Bly to assist in setting up the camp. Kassir brought with him to the camp a manual on the use of sarin nerve gas and letters of appreciation to Usama bin Laden and ABU HAMZA. Aswat subsequently was present at an al Qaeda guest house in Pakistan.
On May 12, 2009, after a four-week jury trial in this District, Kassir was convicted of various criminal offenses, including conspiring to provide material support to terrorists and to al Qaeda, and conspiracy to kill persons overseas, as a result of Kassir’s participation in the efforts to establish the Bly terrorist training camp. On September 15, 2009, United States District Judge John F. Keenan sentenced Kassir to multiple terms of life in prison. The conviction was subsequently affirmed by the Court of Appeals.
Aswat was arrested in Zambia in July 2005 and then deported to England, where he was arrested at the request of the United States, pursuant to a warrant issued in this District. Aswat was extradited to the United States on October 21, 2014. The charges against Aswat are currently pending, and trial is scheduled to commence before Judge Forrest on June 1, 2015.
Facilitating Violent Jihad in Afghanistan in 2000 and 2001
In November 2000, ABU HAMZA requested that Ujaama escort another one of ABU HAMZA’s followers, Feroz Abassi, from London to Ibn Sheikh al-Libi, a commander at a terrorist training camp in Afghanistan. Thereafter, Ujaama and Abassi traveled from London to Pakistan. Ujaama and Abassi then separately entered Afghanistan. ABU HAMZA subsequently conveyed instructions for Abassi to contact Ibn Sheikh al-Libi, who was expecting Abassi. Thereafter, Abassi passed through an al Qaeda safe house in Afghanistan, attended al Qaeda’s al Faruq training camp, and met with senior al Qaeda leaders. In December 2001, United States forces took Abassi into custody in Afghanistan.
In addition, from the spring of 2000 through late 2001, ABU HAMZA provided goods and services to the Taliban by, among other things, directing Ujaama to deliver money to Taliban-controlled parts of Afghanistan.
Ujaama was arrested in 2002 and testified against ABU HAMZA as a cooperating witness for the Government.
ABU HAMZA, 56, a naturalized citizen of the United Kingdom, was convicted after trial of the following 11 offenses:
One - Conspiracy to take hostages (18 U.S.C. § 1203)
Two - Hostage-taking (18 U.S.C. §§ 1203, 2)
Three - Conspiracy to provide material support to terrorists (18 U.S.C. § 371)
Four - Providing material support to terrorists (18 U.S.C. §§ 2339A, 2)
Five - Conspiracy to provide material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §2339B)
Six - Providing material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §§ 2339B, 2)
Seven - Conspiracy to provide material support to terrorists (18 U.S.C. § 2339A)
Eight - Providing material support to terrorists (18 U.S.C. §§ 2339A, 2)
Nine - Conspiracy to provide material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. § 2339B)
Ten - Providing material support to a foreign terrorist organization (al Qaeda) (18 U.S.C. §§ 2339B, 2)
Eleven - Conspiracy to provide goods and services to the Taliban (18 U.S.C. § 371)
In addition to the prison term, ABU HAMZA was ordered to pay a $1,100 special assessment fee. In addressing ABU HAMZA’s conduct, Judge Forrest described it as “barbaric, misguided and wrong,” and remarked, “It is important to me that you have not expressed sympathy for the victims of the Yemeni kidnappings.”
Abu Hamza’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the Justice Department's National Security Division, the Federal Bureau of Investigation, the New York City Police Department, the United States Marshals Service, and New Scotland Yard in the United Kingdom.
The U.S. Department of Justice’s Office of International Affairs contributed extraordinary assistance with the extradition in this case. The U.S. Attorney also thanked the FBI’s Seattle Field Office, the Home Office of the United Kingdom, the United States Department of State, and the United States Department of the Treasury’s Office of Foreign Assets Control for their assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit, with assistance from the Counterterrorism Section of the Justice Department's National Security Division. Assistant U.S. Attorneys John P. Cronan, Edward Y. Kim and Ian McGinley are in charge of the prosecution.
Medical College of Wisconsin, Inc. Pays $840,000 to Settle Alleged False Claims for NeurosurgeriesRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that the Medical College of Wisconsin, Inc. (MCW) has paid the federal government $840,000 to resolve allegations that it violated the False Claims Act. MCW is alleged to have knowingly billed federal healthcare programs for neurosurgeries involving residents who did not receive the required level of supervision from teaching physicians.
MCW is a medical school in Milwaukee, Wisconsin, that employs teaching physicians who provide medical care to patients and supervise residents. The civil settlement resolves a lawsuit filed under the qui tam—or whistleblower—provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring a civil action on behalf the United States and share in any recovery. As part of the resolution, the whistleblower will receive a share of the settlement.
The qui tam complaint alleged that MCW submitted false claims to the Medicare and TRICARE programs for teaching physicians’ services in performing neurosurgeries involving residents. If a resident helps perform a surgery, Medicare will pay for a teaching physician’s services only if he was present for the surgery’s key parts and either remained immediately available throughout the surgery or else arranged for a back-up surgeon to be available. MCW allegedly billed for teaching physicians’ services even though they were responsible for multiple overlapping surgeries and did not satisfy those supervision requirements. The settlement resolves certain claims submitted between April 16, 2006, and March 31, 2013. MCW denied the allegations.
“The settlement we are announcing today reflects the focused, sustained, and purposeful efforts of the Justice Department, together with our partnered federal agencies, to investigate and redress fraud in our health care system,” said Mr. Santelle. “Under the authority of the False Claims Act, we are aggressive yet even-handed in pursuing health care fraud to ensure that taxpayer dollars are spent lawfully and that federal monies that should not have been paid are returned with an appropriate penalty.”
Mr. Santelle specially commended the Federal Bureau of Investigation and the Offices of the Inspectors General for the Department of Health and Human Services and the Department of Defense for the investigative efforts that led to today’s settlement. The case was handled by Assistant United States Attorney Matthew D. Krueger.
McLaughlin Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 5, 2015, by U.S. District Judge Charles B. Kornmann. He was found guilty by a federal jury on October 8, 2014, following a two day trial in Pierre, South Dakota.
Brett Roach, age 27, was sentenced to 120 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Roach was indicted by a federal grand jury on June 6, 2013.
The conviction stems from an incident on May 22, 2013, when Roach, who was babysitting his wife’s three young children, forcefully threw one of the children off the bed and across the room after the child repeatedly woke him up. The Defendant then noticed the ten-month old victim was unconscious and called 911 to summon an ambulance. The victim was transported to the Mobridge Regional Hospital and then airlifted to Sanford USD Medical Center in Sioux Falls due to the severity of the child’s head injuries, which included bilateral skull fractures and subdural hematomas. The child also suffered multiple bruises over numerous parts of the body. The victim was in critical condition for an extended period of time.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Roach was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Maryland Man Pleads Guilty to Assaulting Transgender Girl in July 2014 Attack on Metrorail TrainDefendant Threatened, Harassed and Stabbed 15-Year-Old VictimRead the Press Release
WASHINGTON – Reginald Klaiber, 25, of Greenbelt, Md., pled guilty today to a charge of assault with a dangerous weapon, with a hate crime enhancement, for stabbing a transgender girl while she was on board a Metrorail train, U.S. Attorney Ronald C. Machen Jr. announced.
Klaiber, also known as Reginald Kaliber, pled guilty to the charge in the Superior Court of the District of Columbia. The Honorable Juliet McKenna scheduled sentencing for March 11, 2015. Because the offense was a hate crime, the charge includes a bias enhancement. Assault with a dangerous weapon is punishable by up to 10 years in prison. However, with the bias enhancement, it is punishable by up to 15 years of incarceration.
According to the government’s evidence, Klaiber confronted the 15-year-old victim on July 30, 2014, at about 4:30 p.m., while both were on a Green Line train approaching the Fort Totten Metro station in Northeast Washington. The victim, who was dressed in women’s clothing, was with two of her friends on the train. Klaiber attempted to engage her in conversation and she asked him to leave her alone. Klaiber began harassing her, saying, among other things, “Are you a boy, you are a boy, right?” and “Why you be looking like a woman?”
The victim again asked Klaiber to leave her alone and to get away. As the train pulled into the Fort Totten station, she stood up. Klaiber stood up as well, pulled out a knife, grabbed the victim in a bear hug and stabbed her in the back. One of the victim’s friends sprayed Klaiber in the face with Mace or pepper spray. Klaiber released the victim, and she and her friends fled through interior train doors into a different Metro car. Klaiber continued to follow them until the exterior doors opened. The victim and her friends then ran into the Metro station, with Klaiber making threatening and harassing statements as he kept following them.
One of the friends pointed out the defendant to Metro Transit Police officers, who apprehended him just outside the station. Police recovered a black folding knife with a three-inch, partially serrated blade in a search of the defendant.
The victim, who later identified Klaiber as her assailant, required medical treatment for her injuries.
Klaiber has been in custody since his arrest.
In announcing the plea, U.S. Attorney Machen commended the work of the Metro Transit Police. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Victim/Witness Advocate Jennifer Clark and Assistant U.S. Attorney Christopher Bruckmann, who is prosecuting the case.
15-009Man Who Dealt Heroin Out of Hartford Grocery Store, Illegally Possessed Gun, Sentenced to Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JESUS AGOSTO, also known as “Gordo,” 24, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 41 months of imprisonment, followed by three years of supervised release, for distributing heroin and illegally possessing a firearm.
According to court documents and statements made in court, in 2013, law enforcement received information that AGOSTO was selling significant quantities of heroin out of the Family Beltre Grocery store located on Broad Street in Hartford, and that AGOSTO was allegedly involved in illegal firearm trafficking. In July and August 2013, investigators made multiple controlled purchases of heroin from AGOSTO at the grocery store.
AGOSTO has been detained since his arrest on September 11, 2013. On that date, investigators executed search warrants at the grocery store and AGOSTO’s nearby apartment. The search of the apartment revealed a .9mm semi-automatic handgun, a magazine loaded with seven rounds of .9mm ammunition, a shoe-box with narcotics-related materials and approximately $25,000 in cash.
AGOSTO was previously convicted of robbery in the first degree after he and an associate robbed a woman at gun point.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On July 1, 2014, AGOSTO pleaded guilty to one count of possession with intent to distribute and distribution of heroin, and one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Drug Enforcement Administration Hartford Task Force, including the Hartford, New Britain, Bristol, Wethersfield, Newington and Manchester Police Departments. The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
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[email protected]Man Sentenced in “Force Posting” Scheme that Defrauded AppleRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Sharron Laverne Parrish, Jr. (25, Tampa) to four years and nine months in federal prison for committing wire fraud. The Court also ordered him to forfeit $309,768.41, which are traceable to proceeds of the offense.
Parrish pleaded guilty on October 3, 2014.
According to court documents, from at least December 8, 2012, through July 17, 2014, Parrish engaged in wire fraud by providing fake bank authorization codes to merchants, particularly Apple, which allowed him to override denials of his closed bank and debit cards when he made purchases.
Typically, when a person attempts to use a bank or debit card to make an electronic purchase, the store merchant swipes the person’s card at a point of sale terminal. A bank authorization code is then generated by the issuing institution of the credit or debit card. This code signals the vendor that the account is active, that funds or credit is available, and it allows the vendor to accept payment using that card. Conversely, if the financial institution determines that the swiped card is affiliated with a closed account, or that funds or credit are insufficient to cover the purchase, no bank authorization code is generated. Rather, the merchant receives a declination.
Parrish had at least three Chase debit cards and one SunTrust debit card, all of which were associated with closed bank accounts. Thus, if used properly, the cards would have been declined by merchants when swiped at point of sale terminals. According to court documents, Parrish employed a scheme whereby he continued to use these canceled debit cards. He primarily used the cards to purchase expensive electronics, rent cars, and stay at hotels. When his canceled debit cards were declined by a merchant, he would pretend to call his financial institution and obtain an authorization code. He would then provide the cashier with a fraudulent bank authorization code, represent to the merchant that his debit cards and accounts were still active, and instruct the cashier to manually enter the authorization code. This would cause the merchant to override the declination and allow the transaction to be completed. This practice is commonly referred to as “force posting.” In one instance in January 2013, Parrish entered the Apple store at Brandon Town Center Mall and purchased $7,753.22 in merchandise using this scheme.
To date, the investigation has shown that Parrish used this “force post” scheme to defraud Apple stores in at least 16 states, including stores in the Middle District of Florida, resulting in approximately 42 different transactions and a fraud loss to Apple alone totaling $309,768.41. There is an additional $50,931.76 in intended loss to Apple from seven transactions that were either aborted by Parrish or declined by Apple.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Man Sentenced to Serve A Total of Five Years in Federal Prison in Swatting CaseRead the Press Release
DALLAS — Jason Allen Neff, 34, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 60 months in federal prison and ordered to pay $79,440 in restitution, following his guilty plea in a “swatting” case last summer, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Swatting refers to falsely reporting an emergency to a police department to cause a Special Weapons and Tactics (SWAT) response to a physical address, or making a false report to elicit an emergency response by other first responders to a specific physical address.
Neff has been in custody since FBI special agents arrested him in April 2011 on charges outlined in a related criminal complaint filed in the Northern District of Texas in September 2010.
Neff, also known as “Crazy J,” is from Omaha, Nebraska, although he was living in Jackson, Missouri at the time of his arrest. Neff pleaded guilty to one count of aiding and abetting the conspiracy to use access devices to modify telecommunications instruments and to make unauthorized access to protected telecommunications computers and one count of obstruction by retaliating against a witness, victim or informant.
According to documents filed in the case, Neff, along with previously charged and convicted co-conspirators Guadalupe Martinez, Stuart Rosoff, Jason Trowbridge, Chad Ward, Matthew Weigman, Angela Roberson and others, were members of, and participated in, telephone chat/party lines in which they made, or facilitated the making of, swatting 911 calls. They concealed the true caller ID and made false reports of violent crimes to elicit a police SWAT response to the targeted members of the telephone chat/party line, their family members, and associated persons.[1]
Neff participated in multiple telephone party line chat groups (party lines) that conspirators and thousands of other callers frequented. Participants in these party lines generally used pseudonyms or nicknames to protect their identities, and they would often be rude and obnoxious to antagonize other party line participants, other conspirators and their families.
Neff, along with Martinez, Rosoff and Weigman, according to the indictment, were “phone phreakers,” using social engineering or subterfuge to acquire sensitive information from telephone service providers. That sensitive information enabled them to exploit telephone network computer service by obtaining subscriber information; altering billing information and service plans; redirecting, changing service charges, and discontinuing telephone service; monitoring or taping telephone lines; and obtaining telephone company security policies and procedures.
In May 2006, Neff obtained publicly available voter information about another party line member and provided it to co-conspirator Roberson so she could repeat the information in the party line. Neff knew the information could be used for harassment.
A few days later, Neff obtained identifying information about another party line member with whom co-conspirator Roberson was upset. Neff listened in on a three-way phone call made from a private room on the party line where co-conspirator Rosoff used information that Roberson provided in order to social engineer an SBC employee and obtain the caller’s current phone number and address. That information was verified and used to prompt a neighbor of the caller to respond to a false request for assistance.
In January 2007, Neff confronted a party line member, “SP,” about her providing what he claimed was misleading and inaccurate information to the FBI regarding his ownership of a party-line related website, which he did not own, and his being a member of the group that had previously swatted her. Neff threatened her on the party line, stating, “snitches get stitches.” Neff made the threats to intimidate SP and to retaliate against her for providing information about him to the FBI.
The FBI investigated the case. Assistant U.S. Attorney C.S. Heath prosecuted.
[1] Martinez sentenced in March 2008 to 30 months; Rosoff sentenced in May 2008 to 60 months; Trowbridge sentenced in May 2008 to 60 months; Ward sentenced in May 2008 to 60 months; Weigman sentenced in June 2009 to 135 months; and Roberson sentenced in July 2008 to 30 months.
Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on January 8, 2015, twenty-two year old TomElk Redman, a Northern Arapaho Tribal member of Ethete, Wyoming, was sentenced by United States District Court Judge Scott W. Skavdahl, to 15 months imprisonment, three years of supervised release, and a $100.00 special assessment for his March 2014, assault with a dangerous weapon on the Wind River Indian Reservation. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Luzerne County Man Sentenced to 48 Months in Prison and Lifetime Supervision for His Role in Sex Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Randy Coleman, Jr., age 32, Pittston, Pennsylvania, was sentenced today by Senior U.S. District Court Judge Edwin M. Kosik to 48 months in prison for his role in a conspiracy to recruit, harbor, and transport 17-year-old minor females to engage in commercial sex acts for money during the summer of 2013 in Luzerne and Dauphin counties. After serving his prison sentence, Coleman will be under probation supervision for life.
According to United States Attorney Peter Smith, Coleman admitted to participating in a scheme to use minor females to engage in prostitution. Coleman’s co-conspirators, including Gregory Boone, used cell phones to produce and transmit photographs of the females which were posted on a website to facilitate prostitution activities in motels in Luzerne County and in the Harrisburg area of Pennsylvania. Boone was recently sentenced to 72 months in prison for his role in the scheme.
Coleman was indicted by a federal grand jury in December 2013, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, Pittston Police, and the Luzerne County District Attorney’s Office.
Coleman will also have to register as a sex offender and comply with sex offender registration, notification, and association requirements.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lowell Felon Pleads Guilty in Illegal Firearm SalesRead the Press Release
BOSTON – A previously convicted felon pleaded guilty yesterday in connection with the sale of multiple firearms, including handguns with obliterated serial numbers.
Shayne Sullivan, 25, of Lowell, pleaded guilty to being a felon in possession of firearms and ammunition. U.S. District Judge Richard G. Stearns scheduled sentencing for April 2, 2015.
On March 5, 2014, Sullivan, sold a .357 caliber revolver with an obliterated serial number as well as ammunition to an undercover agent for $600. Eleven days later, Sullivan arranged for another convicted felon to sell several other firearms, including two revolvers with obliterated serial numbers and a rifle, to another criminal for $1,300. Sullivan’s prior convictions include, among other offenses, armed robbery with a gun and assault and battery on a disabled person over the age of 65.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Loan Shark Sentenced to 24 Months in PrisonRead the Press Release
A former Palm Beach County resident was sentenced today to serve 24 months in prison for charging an undocumented worker an annual interest rate of 180% on a $10,000.00 loan.
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 Scott Israel, Sheriff, Broward Sheriff’s Office, made the announcement.
The evidence at trial revealed that in September 2009, Francisco Aletto, Sr., 60, worked at a pawn shop in Boca Raton, Florida. An undocumented worker entered the pawn shop to pawn a gold chain for his gas station business located nearby. Instead of accepting the chain as collateral, Aletto loaned the worker $10,000 and charged him $375 interest per week (180% annually). After the worker made several weekly payments, Aletto introduced him to several of Aletto’s friends who subsequently loaned the victim an additional $30,000. After 13 months, the victim paid over $57,000 in interest and lost to Aletto a 2004 Dodge Ram truck on a $3,000 pawn. When the victim was unable to continue to pay the mounting debt, Aletto and his friends threatened to kill him. Based on information received from a confidential source, the FBI located the victim and prevented him from being harmed. Four of Aletto’s accomplices have pled guilty and also have been sentenced for their roles in making and collecting extortionate extensions of credit. .
Mr. Ferrer commended the investigative efforts of FBI’s Organized Crime Task Force and the Broward Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Mark Dispoto and William Shockley.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. 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.
Little Elm, Texas Man Sentenced for Conspiracy to Produce and Distribution of Child PornographyRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 38-year-old man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Charles Smolens, of Little Elm. Texas, pleaded guilty on April 29, 2014 to conspiracy to produce child pornography and distribution of child pornography, and was sentenced to 365 months in federal prison today by U.S. District Marcia Crone.
According to information presented in court, in December of 2012, Judith Williams was babysitting an 8 month old baby girl when she videotaped herself performing a sex act on the infant. Williams then emailed the video to her boyfriend, Charles Smolens. During the investigation, FBI Agents discovered that Smolens had written a 22-page story about adults having sex with and raping children. Smolens also provided Williams with a thumb drive that contained hundreds of images of child pornography, including an image of an adult male attempting to perform a sex act on an infant as well as images of his live-in girlfriend’s six-year old daughter.
Judith Williams is scheduled for sentencing on February 25, 2015.
This case was investigated by the Federal Bureau of Investigations and the McKinney Police Department. Assistant U.S. Attorneys Tracey M. Batson and Amanda Griffith prosecuted the case.
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 Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lincoln Man Receives 13 Years for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced today that Glenn L. Ogden, age 53 of Lincoln, was sentenced in federal court in Lincoln for possessing child pornography. The Honorable John M. Gerrard sentenced Ogden to a 13 year term of imprisonment. There is no parole in the federal system. After his release from prison Ogden will be on supervised release for 20 years and be required to register as a sex offender.
Ogden had previously been convicted in Stanton and Madison Counties in Nebraska in 2002 for possessing child pornography. He received sentences of probation and 30 days in jail.
In January 2014 an Investigator with the Nebraska State Patrol, acting in an undercover capacity, was contacted by Ogden. During online chats Ogden expressed an interest in meeting the undercover with the intent of engaging in sexual relations with a four-year-old girl. Ogden sent 14 images of child pornography, 10 of which involved prepubescent minors, to the undercover investigator.
Ogden was arrested after he traveled from Lincoln to Kearney, Nebraska to meet the undercover investigator. At the time of his arrest Ogden had a Dora the Explorer doll and condoms in his vehicle.
United States Attorney Deborah R. Gilg commended the Nebraska State Patrol for the investigation and arrest of this dangerous predator. She expressed her appreciation to the Patrol and the Internet Crimes Against Children agencies that it oversees for their diligent efforts in protecting the children of Nebraska.
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 Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Lemmon Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lemmon, South Dakota, man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
Donavon Lee Klein, age 60, was indicted on December 16, 2014. He appeared before U.S. Magistrate Veronica L. Duffy on January 6, 2015, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 5 years’ imprisonment up to 20 years’ imprisonment and/or a $250,000 fine, a lifetime of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between June 2011 and July 2014, at Lemmon, Klein knowingly received and possessed computer files containing images of child pornography.
The charges are merely accusations and Klein is presumed innocent until and unless proven guilty.
The investigation was conducted by the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Ben Patterson and Sarah Collins are prosecuting the case.
Klein was released pending trial with conditions limiting his use of the internet and contact with children. A trial date has been set for March 17, 2015.
Law Enforcement Agencies and Community Organizations Gather to Recognize Human Trafficking Prevention Month and to Raise Community AwarenessRead the Press Release
The Charlotte Metropolitan Human Trafficking Task Force Highlights Its Ongoing Efforts To Fight Human Trafficking And Provide Victim Assistance
CHARLOTTE, N.C. – Federal, state and local law enforcement agencies and representatives of community organizations gathered today in recognition of “National Slavery and Human Trafficking Prevention Month.” During an early morning press conference, Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, emphasized the importance of raising public awareness on this issue and highlighted the continued efforts of the Charlotte Metropolitan Human Trafficking Task Force (CMHTTF) in fighting this modern-day form of slavery.
The Charlotte Metropolitan Human Trafficking Task Force comprises law enforcement agencies – including ICE-Homeland Security Investigations, the FBI, and the Charlotte-Mecklenburg Police Department – federal and state prosecutors and community organizations. In today’s remarks, U.S. Attorney Tompkins noted that a coalition of law enforcement agencies working side by side with community groups, equally committed to fighting this epidemic, is a powerful combination of resources in the fight against human trafficking. Ms. Tompkins praised the work of the task force’s community partners for their commitment to helping rescued victims and providing them with much-needed assistance, such as food, shelter, medical attention and mental health services.
“Human Trafficking Prevention Month is a painful reminder that there are men, women and children within our communities trapped in a life of bonded labor, violence and forced prostitution for little or no pay. The Charlotte Metropolitan Human Trafficking Task Force is a strong coalition of law enforcement agencies and community organizations working together to fight this form of modern-day slavery, assist victims and prosecute the criminals who commit these acts,” said U.S. Attorney Tompkins.
“Homeland Security Investigations is committed to working with our partners both inside and outside of law enforcement to break the victims of human trafficking free from their bondage,” said Joe Gallion, Deputy Special Agent in Charge of ICE Homeland Security Investigations in Charlotte. “By working together across the enforcement and advocacy spectrum, we will ensure that the criminals are put behind bars and their victims have help in taking their first steps on the journey to healing.”
“Human trafficking victims are trapped in lives of misery—often beaten, starved, and forced to work as prostitutes or to take grueling jobs with little or no pay. The FBI devotes a significant amount of resources to hold those accountable who sacrifice another person’s civil rights and freedom for their own profit,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
“Moore & Van Allen launched its Human Trafficking Pro Bono Project in late 2013, to offer victims of human trafficking free legal representation in a variety of areas including victim-witness advocacy, criminal record expunction, and civil protective orders. The Project also focuses on facilitating community collaboration and awareness. The firm looks forward to the continued momentum of this important work,” said Sarah Byrne, Moore & Van Allen Conflicts Counsel and Charlotte Metropolitan Human Trafficking Task Force Member. “Gathering members of the bar and the bench, together with law enforcement and service providers like we have today is important because of the intersections between trafficking and domestic violence, trafficking and child abuse, trafficking and the juvenile justice system, and trafficking and runaway children. Only by recognizing these often hidden victims and connecting them to necessary services can we, as a community, offer justice and healing to survivors of this horrific crime,” Byrne added.
U.S. Attorney Tompkins thanked all the law enforcement agencies and community groups for their invaluable assistance and praised their work and ongoing collaboration. The press conference was followed by a half-day training workshop organized by the task force. The training was open to service providers, law enforcement, members of the judiciary and attorneys, and focused on the realities of human trafficking, victim identification and best practices support services.
If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also submit a tip to the NHTRC online.
You can also contact ICE-Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.
Last Defendant Pleads Guilty in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Seven defendants charged with various offenses stemming from their respective roles in a methamphetamine distribution conspiracy have pleaded guilty, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Today, the last defendant charged in the case entered a guilty plea. Flor Angelica Bustillos, 26, of Phoenix, Arizona, pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of unlawful use of a communication facility. She faces a statutory maximum penalty of four years in federal prison and a $250,000 fine.
Last month, Gregorio Hernandez-Perez, 27, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He faces a maximum statutory penalty of life imprisonment, a $10 million fine and a life term of supervised release.
According to plea documents filed in the case, on July 16, 2014 search warrants were executed at multiple locations in Lubbock County, including, Hernandez-Perez’s residence in Slaton, Texas, after law enforcement in Lubbock, Texas, seized 4.47 kilograms of methamphetamine attributable to Hernandez-Perez. During the execution of the search warrant, law enforcement seized surveillance cameras, drug ledgers, drug trafficking paraphernalia, wire transfer receipts, and a handgun. During the arrest of Hernandez-Perez, an additional handgun was found in his possession.
Each of the four below-listed defendants pleaded guilty in October 2014 to one count of possession with intent to distribute methamphetamine and aiding and abetting. Each faces a statutory maximum penalty of 20 years in federal prison and a $1 million fine.
Haylie Nicole Moreno, 26, of Lubbock
Jesus Adrian Murillo-Angulo, 21, of Lubbock
Michael Alvarado Garcia, 42, of Lubbock
Miguel Angel Ruiz-Cabanillas, 30, of Lubbock
Edward Adam Rodriguez, 23, of Lubbock, pleaded guilty on October 31, 2014, to one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a statutory maximum penalty of life in federal prison and a $250,000 fine.
Natividad Gumaro Lopez-Guzman, 48, of Phoenix, pleaded guilty October 17, 2014, to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He faces a statutory maximum penalty of life in federal prison and a $10 million fine.
Presentence investigation reports have been ordered for all defendants; sentencing dates will be set after the completion of those reports.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Lubbock County Sheriff’s Office, Lubbock Police Department, Texas Department of Public Safety, United States Border Patrol, Department of Homeland Security, and Maricopa County Sheriff’s Office investigated.
Assistant U.S. Attorney Justin Cunningham is prosecuting the case.
Ketchikan Resident Sentenced to Prison for Assault on Federal OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Ketchikan resident was sentenced in federal court in Juneau for assault on a federal officer.
Jon William Munhoven, 57, a resident of Ketchikan, was sentenced by United States District Court Judge Timothy M. Burgess to 48 months of incarceration and three years of supervised release.
According to Assistant U.S. Attorney Jack S. Schmidt and Special Assistant United States Attorney Lt. Cmdr. Stanley P. Fields, who jointly prosecuted the case, on September 2, 2013, the United States Coast Guard (USCG) at Coast Guard Station Ketchikan dispatched six personnel in a 25-foot response boat small (RBS) in response to a call for help from a mariner who had been assaulted on his vessel. After travelling through thick fog, the RBS contacted the mariner who had a bloody nose, a female passenger, and Jon William Munhoven. Munhoven was irate and hostile during the initial contact and was ordered to disembark the mariner’s vessel by the USCG Boarding Team. Munhoven was placed in handcuffs and seated on the aft deck box of the RBS. Munhoven refused to listen to the instructions of the USCG Boarding Team and would not calm down. He then became actively resistant to the USCG Boarding Team. As the members of the boarding team were attempting to safely control Munhoeven, he intentionally kicked one of the USCG Boarding Team Members in the face with a shod foot, using it as a dangerous weapon and causing bodily injury to the USCG Boarding Team Member.Judge Burgess noted the seriousness of the offense, defendant’s extensive violent criminal history that included numerous felony and misdemeanor assaults, sexual assaults, robbery, and menacing with a firearm, and deterrence of the defendant and others as reasons for the sentence imposed.
Ms. Loeffler commended the United States Coast Guard 17th District Legal Office, United States Coast Guard Investigative Service (USCGIS), and Ketchikan Police Department for the investigation leading to the prosecution of Munhoven.
Justice Department Intervenes in Lawsuit Involving Washington Redskins TrademarkRead the Press Release
Justice Department Will Defend Constitutionality of Trademark Statute
Earlier today, the government filed a notice of intervention in Pro-Football, Inc. v. Amanda Blackhorse, et al. notifying the court in the Eastern District of Virginia that it would defend the federal authorities of the U.S. Patent and Trademark Office’s U.S. Trademark Trial and Appeal Board (TTAB), the Justice Department announced.
In August 2006, five Native Americans, Amanda Blackhorse, Marcus Briggs, Philip Gover, Jillian Pappan and Courtney Tsotigh, sought the cancellation of six Washington Redskins trademark registrations under the Lanham Act on the grounds that the trademarks were disparaging to Native Americans at the time they were registered. A panel of the TTAB agreed and issued a June 18, 2014 decision that the registrations should be canceled.
Pro-Football Inc., the owner of the Washington Redskins, filed a complaint in U.S. District Court on Aug. 14, 2014, against the five individuals who had petitioned the TTAB for invalidation of the Redskins trademarks. Pro-Football Inc. is challenging the constitutionality of Section 2(a) of the Lanham Act, 15 U.S.C. § 1052(a) on the grounds that the act violates the First Amendment to the U.S. Constitution. The Lanham Act permits denial or cancellation of a trademark application if the trademark is disparaging or falsely suggests a connection with persons living or dead, institutions, beliefs or national symbols. The act further provides that if a private party believes that a trademark was improperly registered, the party may commence a review proceeding before the TTAB seeking to have the trademark canceled.
The United States will defend the constitutionality of the federal statute.
“The Department of Justice is dedicated to defending the constitutionality of the important statute ensuring that trademark issues involving disparaging and derogatory language are dealt with fairly,” said Acting
Assistant Attorney General Joyce R. Branda for the Civil Division. “I believe strongly in the rights of all Americans to celebrate and maintain their unique cultural heritage. Going forward, we will strive to maintain the ability of the United States Patent and Trademark Office to make its own judgment on these matters, based on clear authorities established by law.”
The United States is specifically authorized by federal statute to intervene in any federal action in which the constitutionality of an act of Congress is drawn into question. Intervention by the United States will not interfere with the timely adjudication of this action.
The case is being handled by the Justice Department’s Civil Division’s Federal Programs Branch with the assistance of the U.S. Attorney’s Office for the Eastern District of Virginia.
Justice Department Enters Settlement Agreement with State of Kansas on Topeka Correctional FacilityRead the Press Release
WASHINGTON – Today, the Department of Justice Civil Rights Division reached an agreement with the state of Kansas to reform the Kansas State Department of Corrections (KDOC) correctional practices at the Topeka Correctional Facility (TCF) to protect its women prisoners from sexual victimization. The agreement resolves allegations that the state subjects women prisoners at TCF to harm due to sexual abuse and misconduct by correctional staff and other prisoners in violation of their constitutional rights.
“This agreement will help ensure that women incarcerated at Topeka Correctional Center are safe and protected from sexual exploitation,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “As a result of this agreement, state officials will be required to protect women prisoners from sexual violence and abuse as is required under the Constitution.”
“This will go a long way toward reducing the harm women have experienced while being held at the TCF,” said U.S. Attorney Barry Grissom for the District of Kansas. “The state of Kansas and the KDOC are to be commended for working with the Justice Department to reform the state’s correctional practices.”
On Sept. 6, 2012, the Justice Department issued a findings letter concluding that women prisoners were subjected to a pattern or practice of sexual abuse. This finding was consistent with other state reports that recognized a long-standing problem of sexual assault in the prison. The findings report identified several systemic failures that led to the pattern of abuse. The state failed to employ accepted correctional practices designed to protect women prisoners from harm due to sexual abuse and misconduct. TCF did not have effective procedures to classify and manage predatory guards and prisoners. Further, TCF lacked effective investigative and grievance processes, and did not have enough officers, including female officers, to appropriately supervise and monitor prisoners.
The agreement requires numerous ways to remedy the deficiencies including the requirement that the state to abide by the Prison Rape Elimination Act National Standards. The agreement details that the state must mandate zero tolerance toward all forms of sexual abuse and sexual harassment and implement specific policies and procedures designed to prevent, detect, and respond to such conduct.
The state will work to prevent and detect sexual abuse of women prisoners by ensuring adequate levels of staffing supplemented by targeted video monitoring. The state will also implement a classification system specific to the female population at TCF, and maintain a risk assessment process that adequately identifies potential victims and predators. The state will maintain a grievance process and by provide multiple internal ways for prisoners to privately report sexual abuse and sexual harassment.
The state will also effectively respond to any allegations of sexual abuse or sexual harassment by adhering to guidelines and timeframes for initiating and concluding investigations; ensuring prompt corrective action following any administrative or criminal finding of sexual abuse or sexual harassment; and holding culpable staff accountable through disciplinary sanctions up to and including termination.
Finally, TCF will ensure that all staff are trained on their responsibilities to prevent sexual abuse, and on how to identify, detect, report, and respond to allegations of sexual abuse. The women prisoners at TFC will similarly be educated on these issues. Implementation of the agreement will be overseen by a monitor who will issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the District of Kansas and the leadership of the Governor of Kansas, the Kansas State Attorney General’s Office and the Kansas Department of Corrections.
Justice Department Enters into Settlement Agreement with the State of Kansas to Protect Prisoners at the Topeka Correctional Facility from Sexual Abuse and MisconductRead the Press Release
Today, the Department of Justice Civil Rights Division reached an agreement with the state of Kansas to reform the Kansas State Department of Corrections (KDOC) correctional practices at the Topeka Correctional Facility (TCF) to protect its women prisoners from sexual victimization. The agreement resolves allegations that the state subjects women prisoners at TCF to harm due to sexual abuse and misconduct by correctional staff and other prisoners in violation of their constitutional rights.
“This agreement will help ensure that women incarcerated at Topeka Correctional Center are safe and protected from sexual exploitation,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “As a result of this agreement, state officials will be required to protect women prisoners from sexual violence and abuse as is required under the Constitution.”
“This will go a long way toward reducing the harm women have experienced while being held at the TCF,” said U.S. Attorney Barry Grissom for the District of Kansas. “The state of Kansas and the KDOC are to be commended for working with the Justice Department to reform the state’s correctional practices.”
On Sept. 6, 2012, the Justice Department issued a findings letter concluding that women prisoners were subjected to a pattern or practice of sexual abuse. This finding was consistent with other state reports that recognized a long-standing problem of sexual assault in the prison. The findings report identified several systemic failures that led to the pattern of abuse. The state failed to employ accepted correctional practices designed to protect women prisoners from harm due to sexual abuse and misconduct. TCF did not have effective procedures to classify and manage predatory guards andand prisoners. Further, TCF lacked effective investigative and grievance processes, and did not have enough officers, including female officers, to appropriately supervise and monitor prisoners.
The agreement requires numerous ways to remedy the deficiencies including the requirement that the state to abide by the Prison Rape Elimination Act National Standards. The agreement details that the state must mandate zero tolerance toward all forms of sexual abuse and sexual harassment and implement specific policies and procedures designed to prevent, detect, and respond to such conduct.
The state will work to prevent and detect sexual abuse of women prisoners by ensuring adequate levels of staffing supplemented by targeted video monitoring. The state will also implement a classification system specific to the female population at TCF, and maintain a risk assessment process that adequately identifies potential victims and predators. The state will maintain a grievance process and by provide multiple internal ways for prisoners to privately report sexual abuse and sexual harassment.
The state will also effectively respond to any allegations of sexual abuse or sexual harassment by adhering to guidelines and timeframes for initiating and concluding investigations; ensuring prompt corrective action following any administrative or criminal finding of sexual abuse or sexual harassment; and holding culpable staff accountable through disciplinary sanctions up to and including termination.
Finally, TCF will ensure that all staff are trained on their responsibilities to prevent sexual abuse, and on how to indentify, detect, report, and respond to allegations of sexual abuse. The women prisoners at TFC will similarly be educated on these issues. Implementation of the agreement will be overseen by a monitor who will issue a compliance report every six months.
The Civil Rights of Institutionalized Persons Act authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of persons confined in a jail, prison, or other correctional facility. Please visit the division website to learn more about this act and other laws enforced by the Civil Rights Division.
This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division, the U.S. Attorney’s Office for the District of Kansas and the leadership of the Governor of Kansas, the Kansas State Attorney General’s Office and the Kansas Department of Corrections.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Johnston in Great Falls on January 8, 2015, and entering pleas of Not Guilty were:
- JAIME GARCIA, a 29-year-old resident of California, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, GARCIA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Russell Country Drug Task Force, and Homeland Security Investigations. PACER Case Reference: 14-96
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 8, 2015, and entering pleas of Not Guilty were:
- JOHN LOUIS CROSS, a 55-year-old resident of Polson appeared on charges of wire fraud and money laundering. If convicted of the most serious charge contained in the indictment, CROSS faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. PACER Case Reference: 14-47
- SLOANE HAROLD HEATH, a 29-year-old resident of Missoula, appeared on charges of receipt of child pornography. If convicted of the count contained in the indictment, HEATH faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Plano Texas Police Department, the Federal Bureau of Investigation, and the Montana Internet Crimes Against Children Task Force. PACER Case Reference: 14-45
- WILLIAM DAVID HESELIUS, a 60-year-old resident of Helena, appeared on charges of felon in possession of firearms. If convicted of the charge contained in the indictment, HESELIUS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference: 14-08
- TRACY ANN HOHENSTATT, a 44-year-old resident of Phoenix, Arizona, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, HOHENSTATT faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-30
- ZACHARY RYAN MILLS, a 33-year-old resident of Phoenix, Arizona, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, MILLS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-30
Appearing before U.S. Magistrate Judge Ostby in Billings on January 7, 2015, and entering pleas of Not Guilty were:
- RYAN ANTHONY CISLO, a 36-year-old resident of Billings appeared on charges of felon in possession of a firearm and possession of stolen firearms. If convicted of the most serious charge contained in the indictment, CISLO faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-125
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to,http://www.pacer.gov/register.html. To access the district court’s calendar, please go tohttps://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Individual Sentenced in Mortgage Fraud CaseRead the Press Release
Individual was sentenced for his role in illegal mortgage fraud kick-back scheme, which resulted in his and his co-conspirators fraudulently obtaining $3,000,000 in 12 fraudulent mortgage loans at Marina Oaks Condominiums.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made that announcement.
Jaime Sanchez, 43, was sentenced to 168 months in prison, followed by five years of supervised release. On October 29, 2014, Sanchez pled guilty to conspiracy to commit mail and wire fraud affecting a financial institution. Sanchez had been previously charged in connection with fraudulently obtaining mortgages for the purchase of 12 condominium units at Marina Oaks Condominiums in Fort Lauderdale, Florida.
According to the indictment from January 2007 through September 2008, in the Southern District of Florida and elsewhere, Sanchez and others conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyer’s incentive” which in actuality was an indirect payment or “kick-back” to the buyers not disclosed to the lenders or reflected on any of the closing documents. Sanchez and others would then prepare materially false and fraudulent mortgage applications for the buyers on the Uniform Loan Application Form 1003 which contained false and fraudulent information as to material facts about the borrower’s credit worthiness in order to obtain mortgage money from lenders to fund the purchase of the Marina Oaks Condominiums. The conspirators would create false and fraudulent documents to support the mortgage applications. Once the loans closed, the conspirators would fraudulently and unlawfully divert portions of the mortgage proceeds for their own personal use and benefit.
Mr. Ferrer commended the investigative efforts of FHFA-OIG and BSO. This case was prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. 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.
Houston Man Sentenced for Aggravated Bank RobberyRead the Press Release
HOUSTON - Anthony Michael Shaffer, 30, has been ordered to federal prison following his convictions of bank robbery and brandishing a weapon during the course of the bank robbery, announced U.S. Attorney Kenneth Magidson. A jury found Shaffer guilty Oct. 15, 2014, following two days of trial and less than an hour of deliberation.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, handed Shaffer a sentence of 78 months for the bank robbery and a consecutive 84 months for the firearms offense for a total 162-month sentence. Shaffer was also ordered to pay restitution and a $1,000 fine and must serve a five-year-term of supervised release following completion of the prison term. In handing down the sentence, the court considered written statements submitted by the victim and upwardly departed from the U.S. Sentencing Guidelines, specifically noting that he was concerned Shaffer had committed these crimes only a short time after serving a 10-year sentence in state court also for aggravated bank robbery.
At trial, evidence proved Shaffer robbed the Woodforest National Bank inside a Pearland Walmart on Dec. 11, 2013. Two bank tellers testified Shaffer entered the bank alone, approached a teller and filled out a note demanding “loose billz.” The tellers also testified Shaffer used and brandished a 9 MM Smith and Wesson pistol during the course of the robbery.
Other witnesses also testified and identified Shaffer as the robber.
Law enforcement officers were able to obtain video footage of the robbery from both Walmart and Woodforest National Bank and testified that Shaffer’s fingerprints were also found on the demand note.
Shaffer will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI, Pearland Police Department and Brazoria County Sheriff’s Office. Assistant U.S. Attorneys Julie Searle and Douglas Davis prosecuted the case.
Goodwin thanks law enforcement officers on National Law Enforcement DayRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today made the following statement thanking law enforcement officers on National Law Enforcement Appreciation Day:
“Friday, Jan. 9, 2015, is National Law Enforcement Appreciation Day. While what our law enforcement officers do is important every day, events across the nation encourage taking the time to reflect on the service of our law enforcement officers and thanking them for the sacrifices they make.
“Law enforcement officers do it all. Whether it’s helping a victim of a car wreck, apprehending a gun-wielding robbery suspect or stopping drug traffickers from ravaging our communities, we can count on them to respond.
“The noblest thing a person can do is give up his or her own safety and comfort for the good of those around them. Law enforcement officers have chosen sacrifice as a way of life. They’ve traded what might have been an easy job behind a desk for a hard one on the streets. They’ve traded what might have been a lucrative job for one with more modest financial rewards.
“Most of all, law enforcement officers have traded what might have been a safe job for one that’s dangerous.
“The work that law enforcement officers love, and perform so well, is not just a job – it’s a calling. I will always be inspired by their selfless and devoted service. The sacrifices they make day in and day out, especially the ultimate sacrifice made by their fallen comrades, is a reminder to us of what is the very best about our country. Let’s never forget to thank them, today, and every day.”
Furniture Company Used as Front for International “Fish” Smuggling OperationRead the Press Release
A Los Angeles-based furniture business, Kaven Company, Inc. (“Kaven”) and its owner, Kam Wing Chan, were arraigned yesterday on charges related to the smuggling of millions of dollars in endangered abalone, sea cucumber, and Totoaba into San Diego from Mexico.
The indictment alleges that Chan used Kaven, which was ostensibly an importer of Asian furniture, to purchase endangered fish in Mexico, import them into the United States, and then export them to Asia. For example, as noted in the charging documents, on various occasions, Chan smuggled: (1) 37 pounds of dried abalone (including the endangered white and black abalone) and 58 Totoaba swim bladders into the United States on October 9, 2013; (2) 20,006 pounds of sea cucumber on March 23, 2012; and (3) 1,014 pounds of abalone on January 15, 2013. The seafood was allegedly purchased in violation of Mexican law because the invoices presented did not properly demonstrate the origin of the fish.
In total, Chan and Kaven are charged with illegally exporting (from September 1, 2009 through May 30, 2013) more than $3 million in seafood to China. These exports were destined primarily to companies owned by one of Chan’s relatives.
All three smuggled fish are prized in Asia where they are considered "culinary delicacies," and often adorn the buffets of festival meals and are served at formal dinners. For example, dried-out versions of the 377 known tropical species of Sea Cucumber retail between $10 and $600 per kilogram in Hong Kong and on mainland China. One species has been reported to sell on the black market for $3000 per kilo.
According to scientists, Sea Cucumbers provide an important service for reef ecosystems. Among other things, they help to keep the sand in reef lagoons and sea grass beds fresh by turning them over, and by feeding on the dead organic matter that's mixed in with the sand, the nutrients they excrete can re-enter the biological web by algae and coral. Without the sea cucumbers, that sort of nutrient recycling could not occur. It's also thought that sea cucumbers help to protect reefs from damage due to ocean acidification. Feeding on reef sand appears to increase the alkalinity of the surrounding seawater.
Totoaba macdonaldi, also known as Cynoscion macdonaldi, is the largest species within the scaienidae family of fish. It can grow to more than 6-1/2 feet in length, weigh up to 220 pounds, and can live up to 30 years. These fish are found only in the Gulf of California, the narrow inlet between Baja California and the Mexico's mainland (also called the Sea of Cortez). The fish can be identified by its dusky silver color, elongated body, sharp snout, projecting lower jaw, and a slightly convex tail. According to the indictment, a single Totoaba swim bladder, highly prized for use in soups, can sell for $1400-$4000 in Mexico and up to ten time that amount in Asia.
Totoaba macdonaldi was included in the most protected list (Appendix 1) of species covered by the Convention on International Trade in Endangered Species (“CITES”) in 1976, and was listed as endangered under the U.S. Endangered Species Act in 1979. Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in Totoaba or any part of a Totoaba.
Black abalone (Haliotis cracherodii) and white abalone (Haliotis sorenseni) are also species listed as endangered pursuant to the Endangered Species Act. Black abalone was listed as endangered on January 14, 2009, and white abalone was listed as endangered on May 29, 2001.
Mexican fisheries law (the General Law on Sustainable Fishing and Aquaculture) requires that the lawful origin of fisheries products be demonstrated by means of an arrival, harvest, production, or collection notice, an import permit, or a fisheries waybill (for transport). The failure to demonstrate such lawful origin is a violation of law.
“In collaboration with our international, federal and state law enforcement partners, NOAA will do everything in its power to make sure marine resources are protected and wildlife trafficking is shut down and those who attempt to profit from the exploitation of vulnerable and threatened species are brought to justice,” said Eileen Sobeck, Assistant Administrator for NOAA Fisheries.
Kaven Company and Kam Wing Chan are scheduled to appear before United States District Court Judge Anthony J. Battaglia on February 6, 2015, at 1:30 p.m. for a hearing on all motions.
DEFENDANTS Case Number: 14CR3662-AJB Kaven Company Los Angeles, CA Kam Wing Chan Age: 61 Monterey Park, CA CHARGESCount 1
INVESTIGATING AGENCIES
Conspiracy, in violation of Title 18, United States Code, Section 371; Maximum Penalty: 5 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Counts 2, 4, 5, and 7
Unlawful Importation of Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(a)(1)(A); Maximum Penalty: 5 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Counts 3 and 6
Smuggling/Importation Contrary to Law, in violation of Title 18, United States Code, Section 545; Maximum Penalty: 20 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Count 8
Unlawful Trafficking in Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(1)(A) and 3373(d)(1)(B); Maximum Penalty: 5 years in custody, the greater of a $250,000 fine or twice the illegal gain or loss and a $100 penalty assessment
Forfeiture
In violation of Title 16, United States Code, Section 3374 and Title 18, United States Code, Section 981.National Oceanic and Atmospheric Administration, Office of Criminal Enforcement; U.S. Fish and Wildlife Service, Office of Criminal Enforcement
*An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Fugitive Arrested 37 Years after Failing to Surrender to Serve Prison SentenceRead the Press Release
Eighty-one year old fugitive arrested 37 years after failing to surrender to commence a 10-month prison sentence.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Amos Rojas, Jr., United States Marshal for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Robert Anton Woodring, formerly of Fort Lauderdale, Boyton Beach, and Pompano Beach, Florida, was arrested on charges of failing to surrender for service of sentence. In 1984, Woodring was indicted for failing to surrender in September 1977, to commence a 10-month sentence imposed in October 1975, for removing a yacht in order to prevent seizure by authorized persons. Woodring had also been sentenced in a related case to seven year imprisonment after a jury found him guilty of mail fraud and conspiracy to conspiracy to commit mail fraud. Woodring is set to be arraigned on January 14, 2015, at 10:00 a.m.
U.S. Marshals, with the assistance of the FBI and Mexican authorities, apprehended Woodring in Guadalajara, Mexico, in December 2014. On December 22, 2014, Woodring appeared in federal court in Los Angeles, California, where a U.S. Magistrate Judge ordered him detained pending trial as a risk of flight. Woodring waived his right to an identity hearing and removal hearing and agreed to be transported to Miami for further proceedings.
Mr. Ferrer commended the efforts of the U.S. Marshals Service and FBI in apprehending the defendant. The case is being prosecuted by Assistant U.S. Attorney Robert T. Watson.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. 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.
Four Charged in Connection with Portland Crack Cocaine ArrestsRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Marco
Gordon, a/k/a “D,” a/k/a “Detroit,” 34, of Detroit, Michigan; William Weston, a/k/a “Wild,”
34, of Portland; Russell Gordon, a/k/a “Murder,” a/k/a “M1,” a/k/a “Black,” a/k/a “B,” 31,
of Ansonia, Connecticut and Portland were arrested in Portland today and charged in U.S.
District Court by criminal complaint with possession with intent to distribute cocaine base, also
known as, crack cocaine. Kristi Lowell, 30, of Portland, was also arrested in Portland today and
charged by criminal complaint with maintaining a place to make, distribute and use controlled
substances.According to court records, the charges arise out of the distribution of crack cocaine in
Portland. This morning, federal, state and local agents arrested the four while executing
warrants. The defendants will make their initial appearances in the U.S. District Court in
Portland today.Russell Gordon faces between five and 40 years in prison and a $5,000,000 fine. Lowell
faces up to 20 years in prison and a $500,000 fine. The other two defendants face up to 20 years
in prison and a $1,000,000 fine, or up to 30 years in prison and a $2,000,000 fine if they have a
prior felony drug conviction.This case was investigated by the Federal Bureau of Investigation; the Portland,
Biddeford and Lewiston Police Departments; the Maine Drug Enforcement Agency; the Maine
State Police; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations,
the U.S. Drug Enforcement Administration; and the Bureau of Alcohol, Tobacco, Firearms and
Explosives. The Portland Police Department Special Reaction Team assisted federal agents with
the entry and arrests.A criminal complaint is merely an accusation and a defendant is presumed innocent
unless proven guilty in a court of law.Former Kentucky Doctor Pleads Guilty to Filing False Tax Returns Claiming Millions in False Business ExpensesRead the Press Release
A former London, Kentucky, doctor pleaded guilty today to filing false tax returns on which he falsely reported millions in fictitious business expenses to reduce his taxable income, announced Deputy Assistant Attorney General David A. Hubbert for the Justice Department’s Tax Division.
According to the documents filed with the court, Dr. Visa Haran Sivasubramaniam owned and operated Hematology Oncology Physicians East (HOPE), where he offered medical oncology and hematology services. During a three year period, from 2007 through 2009, Sivasubramaniam earned more than $16 million in total income from HOPE, but he reported nearly $13 million worth of false and fictitious medical supply expenses to offset that income. Sivasubramaniam admitted that for 2008 and 2009, he signed false corporate tax returns for HOPE and false personal tax returns, which reported limited taxable income and ficticious losses from HOPE when he in fact knew that his net income was millions of dollars more. According to court documents, Sivasubramaniam owes more than $4.5 million in taxes.
Sivasubramaniam faces a statutory maximum sentence of six years in prison and a $500,000 fine. His sentencing is set for July 7 before U.S. District Judge Amul R. Thapar for the Eastern District of Kentucky.
This case was investigated by special agents of the Internal Revenue Service-Criminal Investigation. Trial Attorneys Yael T. Epstein and Thomas G. Voracek of the Tax Division are prosecuting the case.
Former Judge Pleads Guilty for Accepting Bribe During Campaign to be Elected to the Arkansas Court of AppealsRead the Press Release
A former state circuit judge in Arkansas pleaded guilty today for accepting a bribe in exchange for reducing a negligence jury verdict against a Conway, Arkansas, company.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant United States Attorney Patrick C. Harris of the Eastern District of Arkansas made the announcement.
Michael A. Maggio, 53, of Conway, Arkansas, pleaded guilty to a one-count information charging him with bribery concerning programs receiving federal funds. A sentencing hearing before Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas will be scheduled at a later date.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, Twentieth Judicial District, Second Division, presiding over a civil matter in Faulkner County Circuit Court. The plaintiff in that matter, the estate of a decedent, filed a complaint alleging, among other things, that a company, its owner, and others had neglected and mistreated the decedent leading to the decedent’s death while the decedent was in their care. On May 16, 2013, a jury returned a verdict in the plaintiff’s favor, awarding damages against the sole-remaining defendant, the company, in the amount of $5.2 million. Approximately one month later, the company filed a motion for new trial or to reduce the amount of damages awarded by the jury to the plaintiff.
Maggio further admitted that he formally announced his candidacy for the Arkansas Court of Appeals on June 27, 2013, while the post-trial motions were pending. On July 10, 2013, Maggio entered an order reducing the verdict against the company to $1 million. Prior to that order, a fundraiser for Maggio’s campaign told Maggio that the company’s owner had committed money to support Maggio’s campaign. The fundraiser also communicated with Maggio regarding the pending post-trial motions. On July 9, 2013, the owner donated approximately $24,000 to Maggio’s campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was improperly influenced by the donations that his campaign received from the company’s owner. Maggio further acknowledged that he attempted to delete text messages between the fundraiser and himself after the media became aware of the illicit contributions to his campaign.
The case was investigated by the FBI’s Little Rock Field Office, and is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas.
Former Judge Pleads Guilty to Bribery for Accepting A Bribe During His Campaign to Be Elected to the Arkansas Court of AppealsRead the Press Release
LITTLE ROCK - Patrick Harris, First Assistant United States Attorney for the Eastern District of Arkansas, along with Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that a former state circuit judge pleaded guilty to accepting a bribe in exchange for reducing a negligence jury verdict against a Conway, Arkansas business during his campaign to be elected to the Arkansas Court of Appeals.
Michael A. Maggio, age 53, of Conway, Arkansas, pleaded guilty before U.S. District Chief Judge Brian S. Miller to a one-count Information charging Maggio with bribery concerning programs receiving federal funds.
At his plea hearing in open court on December 9, 2015, and in his plea documents, Maggio admitted that in 2013 he served as an elected circuit judge for the State of Arkansas, Twentieth Judicial District, Second Division, presiding over a civil matter filed in Faulkner County Circuit Court. The plaintiff in that matter, the estate of a decedent, filed a complaint alleging, among other things, that a Conway business, its owner, and others had neglected and mistreated the decedent leading to the decedent’s death while he was in their care. In early May 2013, the lawsuit proceeded to trial, with the business as the only defendant. On May 16, 2013, a jury returned a verdict in the plaintiff’s favor, awarding damages against the business in the amount of $5.2 million. Approximately one month later, on June 17, 2013, the business filed a motion for new trial or remittiture, seeking, among other things, to reduce the amount of damages awarded by the jury to the plaintiff.
According to court documents, Maggio formally announced his candidacy for the Arkansas Court of Appeals on June 27, 2013, while the defendant’s post-trial motions were pending. On June 29, 2013, Maggio’s campaign fundraiser told him that the first $50,000 from the business was “on the way.” Maggio knew at the time that his money included donations from the business owner. On or about July 8, 2013, Maggio’s campaign fundraiser received approximately $24,000 in donations from the business owner. Two days later—and after the campaign fundraiser and Maggio had communicated extensively regarding the litigation and the campaign—Maggio reduced the plantiff’s verdict to $1 million.
As part of his plea, Maggio admitted that his decision to remit the judgment was improperly influenced by the donations that his campaign received from the business owner. Maggio further acknowledged that he attempted to delete text messages between the campaign fundraiser and himself after the contributions from the business owner were disclosed by the media.
The maximum potential penalty for a violation of Title 18, United States Code, Section 666(a)(1)(B) (Bribery Concerning Programs Receiving Federal Funds) is up to ten years imprisonment, up to three years supervised release, and a fine of up to $250,000 or twice the pecuniary gain or loss. The Court will set a sentencing hearing at a later date.
The case was investigated by the FBI’s Little Rock Field Office, and is being prosecuted by Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section.
Former Jersey City Police Officer Sentenced to Three Years in Prison for Cigarette Cargo Theft and ExtortionRead the Press Release
TRENTON, N.J. – A former Jersey City police officer was sentenced today to 36 months in prison for his role in stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.
Mario Rodriguez, 40, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of cargo theft and one count of conspiracy to commit Hobbs Act extortion under color of official right. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, New Jersey, to break into a trailer, steal cigarettes and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.
After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, New York, Rodriguez made several phone calls seeking buyers for the TVs.
The pair met the CI’s associate – actually an undercover officer – in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.
On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.
Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.
Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.
In addition to the prison term, Judge Thompson sentenced Rodriguez to serve three years of supervised release and ordered him to pay a $2,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to the charges. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.
15-008
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Former Charter School Principal Sentenced in Connection with MCAS Cheating SchemeRead the Press Release
BOSTON – A former Springfield charter school principal was sentenced yesterday in U.S. District Court in Springfield for a federal felony in connection with assisting students to cheat on the MCAS.
Janet Henry, 42, was sentenced by U.S. District Judge Mark G. Mastroianni to one year of probation and a $500 fine. In October 2014, Henry pleaded guilty to an Information charging her with mail fraud.
According to the Information, in 2009 Henry became Principal of the Robert M. Hughes Academy Charter School in Springfield. In March and April 2009, the Massachusetts Comprehensive Assessment System (MCAS) tests were administered to the student body during which time Henry instructed teachers to give clues and other tips to students. For example, if teachers saw students entering nonsense answers, then they were to tell students to review their answers again. During preparation meetings, Henry stated to teachers that “this is where we earn our money,” and warned that the school could close or everyone would lose their jobs, if the test scores were not satisfactory. On April 16, 2009, upon the completion of the MCAS examinations, Henry falsely certified that the tests had been administered honestly.
United States Attorney Carmen M. Ortiz; Brian M. Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Northeast Region; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kevin O'Regan of Ortiz’s Springfield Branch Office.
Former California Resident Sentenced for Failing to Register as a Sex OffenderRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former California resident was sentenced in federal court in Juneau for failing to register as a sex offender.
Jeremy Robert Reef, 39, a former resident of California, was sentenced by United States District Court Judge Timothy M. Burgess to five years of probation with the condition that he immediately registers upon release. Reef has been in custody since his arrest on July 1, 2014.
Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, stated that Reef was convicted of a misdemeanor sex offense in California in 2001. Reef was required to register for a period of 15 years as a result of the conviction. Reef previously failed to register on two occasions in California and was convicted for those offenses in 2008. Reef subsequently moved to Reno, Nevada in 2009, however, that was the last time he registered. In November 2013, Reef travelled to Alaska and failed to register with local authorities. Reef was contacted by local authorities in April 2014 and was advised of his responsibility to register. Reef again failed to register, which lead to his indictment and arrest in this case.
Judge Burgess noted the seriousness of the crime and that the sentence imposed should deter others from failing to register in the future.
This case was investigated by the U.S. Marshal Service.Former Army Sergeant Sentenced on His Guilty Plea to Money Laundering Conspiracy Resulting from Bribes Sergeant Received in AfghanistanRead the Press Release
MEMPHIS, TENN. - Earlier today at the federal courthouse in Memphis, Tennessee, a former First Sergeant with the U.S. Army was sentenced on his guilty plea to conspiracy to launder approximately $250,000 in bribe payments he received from Afghan contractors in Afghanistan.
United States Attorney for the Western District of Tennessee Edward L. Stanton III, Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division, and United States Attorney for the Eastern District of Tennessee William C. Killian made the announcement.
Jimmy W. Dennis, 44, of Olive Branch, Mississippi, and a former First Sergeant with the U.S. Army, was sentenced by U.S. District Court Judge Samuel H. Mays, Jr., to 41 months and was ordered to forfeit $115,000.
“Instead of serving his country, Jimmy Dennis betrayed it by accepting bribes and selfishly lining his pockets with hundreds of thousands of dollars,” said U.S. Attorney Stanton. “Today’s sentence should serve as a constant reminder that we and our law enforcement partners will not tolerate corruption of any kind and are determined to hold corrupt officials accountable.”
According to court filings, from March 2008 through March 2009, Dennis was an Army Sergeant assigned as a paying agent in the Humanitarian Aid Yard at Bagram Air Field, Afghanistan. Dennis was part of the team in the HA Yard that purchased supplies from local Afghan vendors for distribution as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan. Dennis helped steer contracts to certain Afghan vendors in return for about $250,000 in cash bribes.
Further, according to court pleadings, Dennis smuggled the bribe money back to the U.S. hidden in packages addressed to his wife, his father, Jerry W. Dennis, and a former Army friend, James C. Pittman. Dennis sent about $80,000 to $100,000 to his father from Afghanistan in packages that contained toy “Jingle Trucks” (colorfully decorated trucks or buses used in Afghanistan and Pakistan). Dennis hid the money in the rear compartment of the trucks. Dennis also shipped a “Hope Chest” to his father, with about $100,000 in cash in a concealed compartment.
Also according to court documents, while on leave, Dennis met with Pittman, advised him that he had obtained money through kickbacks, and asked him for help laundering the funds. Pittman, owner of a landscaping business, agreed to “run through his company” these bribery proceeds. After returning to Afghanistan, Dennis sent about $60,000 to Pittman in Jingle Trucks. Dennis also arranged for his father to send about $20,000 to Pittman, who returned it to them in the form of “salary” checks from Pittman’s company.
Jerry Dennis, 69 or Horn Lake, Mississippi, was sentenced today by Judge Mays to two years probation, including six months of home confinement and ordered to forfeit $110,000. Pittman, 45 of Rossville, Georgia, was sentenced on September 8, 2014, in Chattanooga, Tennessee, by U.S. District Court Judge Harry S. Mattice, Jr., to one year and a day and ordered to forfeit $25,000.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction, FBI, Army Criminal Investigative Division, Defense Criminal Investigative Service, and Air Force Office of Special Investigation. The government’s case was prosecuted by Western District Assistant U.S. Attorney Frederick Godwin, Eastern District Assistant U.S. Attorney James Brooks, and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section.
Spanish Version
Florissant Chiropractic Clinic Owner Sentenced on Healthcare Fraud ChargesRead the Press Release
St. Louis, MO – MALIK MUHAMMED was sentenced to 15 months imprisonment, a restitution award of $153,101 payable to three automobile insurance companies and a $10,000 fine, for making three false statements to insurance companies about providing medical services to patients when no chiropractor was working at the clinic or the clinic was actually closed.
According to the court documents, Muhammed owned and operated the Your Accident and Injury Clinic (“YAIC”) located at 7320 Florissant Road in St. Louis County. Typically, he hired one chiropractor at a time to service all of YAIC’s patients. The clinic’s chiropractor worked part-time, usually every Tuesday and Thursday. Muhammed repeatedly billed automobile insurance companies for treatments and procedures provided to patients at his clinic when, in reality, no licensed health care provider was present, including multiple bills for services occurring on Sundays when the entire clinic was closed.
Muhammed, Florissant, MO, pled guilty to three felony counts of making false statements relating to health care matters last September. He appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, with assistance from the National Insurance Crime Bureau.