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24 February 2015
Nassau County Man Sentenced to More Than 19 Years in Prison for Producing and Receiving Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced John Dewey Todd (61, Fernandina Beach) to 19 years and 7 months in federal prison for producing and receiving child pornography over the Internet. The Court also ordered him to serve a 10-year term of supervision upon his release from prison and to register as a sex offender. Todd pleaded guilty to the offenses on September 25, 2014.
According to court documents, law enforcement agents executed a federal search warrant at Todd’s residence in Fernandina Beach on November 15, 2013, during which they recovered several electronic devices. In an interview with agents, Todd admitted to having “child pornography” on his computers. He further admitted to collecting child pornography for a “couple of years.” At sentencing, evidence was presented showing that Todd had been collecting child pornography for 15 years.
Fifty-one media discs were found hidden in Todd’s attic containing at least 12,000 files of child pornography, including 550 videos and 11,500 still images. An additional 4,000 files of child pornography were found on other media. Todd’s collection included videos depicting thousands of instances of minors engaged in sexually explicit conduct, depictions of bondage, sadistic and masochistic conduct, and other portrayals of violence. Police also found five thumb drives in a jacket pocket hanging in Todd’s closet. Upon examination of the thumb drives, agents discovered four self-produced videos made by Todd, in which he secretly recorded the genitalia of prepubescent girls using the bathroom in his home.
"This sentencing underscores the severity of crimes against our children," said Susan L. McCormick, special agent in charge of HSI Tampa. "HSI will continue to direct our vast resources toward protecting the most vulnerable in our society."
This case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Jacksonville Sheriff's Office, with assistance from the Nassau County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Monroe Woman Sentenced to 6½ Years for Firearm and Drug ConvictionsRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Darlene Ford, 59, of Monroe, was sentenced in U.S. District Court by Judge John A. Woodcock, Jr. to 6½ years in prison, to be followed by 3 years of supervised release, for conspiring to manufacture marijuana, maintaining a drug involved premises, and aiding and abetting a felon in possession of a firearm. Ford was found guilty after a jury trial on February 6, 2014.
Court proceedings revealed that in November 2011 a search warrant was executed at the defendant’s home in Monroe where agents found a large and sophisticated indoor marijuana growing operation and two rifles. Trial evidence revealed that the defendant and other family members conspired to grow hundreds of marijuana plants at the residence. The defendant also illegally aided and abetted her husband, a convicted felon, to possess the two rifles found during the search of her home.
The investigation was conducted by the Maine Drug Enforcement Agency, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Waldo County Sheriff’s Office and the Maine State Police.
Miami Resident Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Enrique Hernandez (34, Miami) today pleaded guilty to conspiracy to commit bank and mail fraud. He faces a maximum penalty of 30 years in federal prison. As part of the plea, Hernandez has agreed to make full restitution in the amount of $899,700, the approximate losses resulting from his role in the conspiracy.
According to the plea agreement and court proceedings, Hernandez participated in a mortgage fraud conspiracy in which some conspirators entered into agreements to purchase properties for amounts in excess of the original asking price. The conspirators then inserted false and fraudulent information about the various conspirator-purchasers on mortgage loan applications, or Fannie Mae Form 1003s, that were submitted in support of the loan requests. Upon closing each sale, the conspirators would use a portion of the inflated loan proceeds to pay the seller the original asking price for the property. The remaining excess funds, the amount between the original asking price and the inflated mortgage loan amount, were then shared amongst the conspirators. The purchased properties were subsequently allowed to fall into foreclosure.
Hernandez obtained $108,724 in proceeds for his participation in the scheme.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant and Special Assistant United States Attorney Chris Poor.
Maryland Man Found Guilty of Assault with Intent to Kill in Shooting Outside Northeast Washington Shoe Store Four People Were Hit by Gunfire on Busy Street in Broad Daylight AttackRead the Press Release
WASHINGTON – Victor L. Coley, 52, of Upper Marlboro, Md., was found guilty by a jury today of four counts of assault with intent to kill while armed and other offenses for a broad daylight shooting that took place outside a shoe store in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Coley was found guilty of a total of 15 charges following a trial in the Superior Court of the District of Columbia. The Honorable Michael Ryan scheduled sentencing for April 27, 2015.
According to the government’s evidence, the shootings took place at 1:10 p.m. on Nov. 6, 2013, outside the Payless shoe store at the corner of Minnesota Avenue and Clay Place NE. Coley shot one man in the back and another man in the back of the head and then the chest. As the second victim managed to stumble away, Coley fired additional shots, two of which struck innocent bystanders. The man who was shot in the back is paralyzed from the waist down; the other three victims have recovered from their injuries. Dozens of people were outside the shoe store and at a nearby bus stop at the time that the gunfire began.
The investigation revealed that Coley had tried to enlist the intended targets as part of his drug-dealing crew, but they refused. After the shooting, he hid the gun in a house behind the shoe store. Coley was arrested minutes later, while coming out of the house. He has been in custody ever since.
In announcing the verdict, U.S. Attorney Machen commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Richard Cheatham and Stephanie Gilbert; Victim/Witness Advocate Diana Lim, Assistant U.S. Attorney Robert Eckert, and former Assistant U.S. Attorney James Smith. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Jeffrey Nestler and David Misler, who investigated and prosecuted the case.
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Manteca Oncologist Agrees to Pay $550,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif - United States Attorney Benjamin B. Wagner announced today that Prabhjit S. Purewal, M.D., a Manteca based oncologist, agreed to pay the United States $550,000 to settle allegations that he defrauded Medicare, Tricare and Medicaid by billing these public insurers for chemotherapy drugs the US Food and Drug Administration had not approved for use in the United States. Dr. Purewal has paid the United States $400,000 to date.
The settlement resolves the United States’ contentions that Dr. Purewal had, over a two year period ending in May 2011, purchased chemotherapy drugs from Warwick Healthcare Solutions, Inc., also known as Richard’s Pharma (“Warwick”), administered the drugs to his patients, and improperly sought and received reimbursement for the drugs from Medicare and other public insurers. Warwick, a former United Kingdom based drug distributer, did not have a license to distribute drugs in the United States, and many of the drugs Dr. Purewal purchased from Warwick were not FDA approved. The FDA regulates pharmaceuticals in the US to ensure the drugs are safe and effective. The United States contended that by claiming and receiving reimbursement from Medicare, Tricare, and Medicaid for these drugs, Dr. Purewal violated the federal False Claims Act.
“Investigating healthcare related fraud allegations is one of our District’s top priorities,” said U.S. Attorney Wagner. “My office works closely with our federal and state partners to ensure that our publicly funded healthcare insurers reimburse practitioners only for approved services and medicines.”
“Patients -- especially those battling cancer and other life-threatening illnesses -- should be able to trust that their physicians only use medicines approved by the FDA, medicines proven to be safe and effective,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to pursue health care providers that ignore requirements designed to protect patient health and federal health care programs.”
“Ensuring that patients receive FDA-approved prescription drugs from the legitimate supply chain is an FDA priority,” said Lisa Malinowski, Special Agent in Charge of the FDA’s Office of Criminal Investigations. “For drugs that enter the U.S. from outside that protected system, there is no guarantee that the drug is FDA-approved, not counterfeit, or otherwise lacks safety or effectiveness. We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
The case was investigated by the United States Office of Inspector General of the US Department of Health and Human Services, the FDA’s Office of Criminal Investigations and the US Defense Health Agency. Assistant United States Attorney Kurt A. Didier prosecuted the case.
Manhattan Deputy U.S. Attorney and FBI Assistant Director Announce Return to Italy of A Painting Attributed to Giambattista Tiepolo and Ancient Etruscan Bronze Sculpture of HeraklesRead the Press Release
Richard Zabel, the Deputy United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director in Charge New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return to the Italian Government of two pieces of Italian cultural heritage – “The Holy Trinity Appearing to Saint Clement,” attributed to the 18th Century painter Giambattista Tiepolo (the “Tiepolo”), and an ancient Etruscan bronze statuette of Herakles dating from the 6th or 5th Century B.C.E. (the “Statuette”). Each artwork was returned to Warrant Officer Angelo Ragusa of the Rome Office of the Archaeological Section of the Carabinieri Tutela Patrimonio Culturale, today at a repatriation ceremony at the United States Attorney’s Office in Manhattan.
Manhattan Deputy U.S. Attorney Richard Zabel stated: “These two works of art were stolen from their owners many decades ago and through shadowy channels arrived in the United States. Both the Tiepolo painting and the Etruscan sculpture represent Italy’s rich cultural history and today will be returned to their homeland. We will continue to work with the FBI to return stolen items to their rightful owners.”
FBI Assistant Director Diego Rodriguez stated: “For decades, two significant pieces of Italian heritage have been on the run. Elusive. And out of reach, until today. We are proud to be able to return these key pieces of work back to the Italians – and to the Oliveriano Archaeological Museum.”
The Tiepolo was previously reported stolen from a private home in Turin, Italy, in or about August 1982. Following the theft, the painting’s whereabouts were unknown until it appeared for auction in New York in January 2014. After being provided with evidence that the painting was the same piece previously reported stolen in 1982, the Tiepolo’s consignor agreed to its seizure by the FBI and its return to Italy. The United States Attorney’s Office submitted a proposed stipulation and order providing for the Tiepolo’s seizure and return, and the U.S. District Court for the Southern District of New York entered that order on January 23, 2015. Italian authorities continue to investigate the circumstances surrounding the theft of the painting, including the circumstances of its importation into the United States.
The Statuette was reported stolen from the Oliveriano Archeological Museum in Pesaro, Italy, in January 1964 along with several other items, including ivory tablets of the 9th and 13th centuries, early Christian glass artifacts from the Catacombs of Rome, and Italic and Roman statuettes. After its theft from the museum, the Statuette passed through several hands, and was eventually discovered by Italian and U.S. authorities when it was offered for sale by an auction house in Manhattan. After being provided with evidence that the Statuette was the same piece stolen from the museum, the consignor agreed to the FBI’s seizure of the Statuette for repatriation to Italy. The United States Attorney’s Office submitted a proposed stipulation and order providing for the Statuette’s seizure and return, and the U.S. District Court for the Southern District of New York entered that order on October 2, 2014.
Mr. Zabel thanked the Washington Bureau of INTERPOL, which originally brought the painting to the attention of the FBI and the U.S. Attorney’s Office following the painting’s importation into the United States. Mr. Zabel further praised the investigative work of the FBI in this matter, and its ongoing efforts to find and repatriate stolen and looted art and cultural property.
Each case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Andrew C. Adams is in charge of the case involving the Tiepolo painting, and Assistant United States Attorney Christine I. Magdo is in charge of the case involving the Etruscan statuette.
In re Ancient Etruscan Bronze Herakles Stipulation and Order
In re Giambattista Tiepolo Painting Stipulation and Order
Man pleads guilty to threatening Senator ManchinRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Steven Anthony Major, 50, from Barboursville, West Virginia, pleaded guilty to threatening to murder United States Senator Joseph Manchin, III.
Major made four separate threats to murder Sen. Manchin from Mar. 17-20, 2014. He admitted to making calls to Sen. Manchin’s Charleston and Washington D.C. offices, during which he left messages identifying himself, and making violent threats against the senator and his family.
Major faces up to 10 years in federal prison. He is scheduled to be sentenced on May 27, 2015.
United States District Judge Thomas E. Johnston presided over the plea hearing.
The investigation is being conducted by the Federal Bureau of Investigation, United States Capitol Police and West Virginia State Police. Assistant United States Attorney Haley Bunn is handling the prosecution.
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Los Angeles-Area Executive Arrested in $9 Million Bank Fraud SchemeRead the Press Release
A Los Angeles-area executive was arrested today in connection with a $9 million scheme to defraud United Commercial Bank and East West Bank, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Inspector General Christy Romero for the Troubled Asset Relief Program (SIGTARP), Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office and Special Agent in Charge Erick Martinez of the IRS-Criminal Investigation’s (IRS-CI) Los Angeles Field Office.
Chung Yu “Louis” Yeung, 37, of San Dimas, California, was indicted on Oct. 22, 2014, in the Central District of California for one count of conspiracy to commit bank fraud and five counts of bank fraud. The indictment was under seal until his arrest today. Guo Xiang “David” Fan, 52, was also indicted for conspiracy to commit bank fraud and bank fraud, as well as money laundering, and remains at large.
According to the indictment, Yeung was Vice President and Fan was President of Eastern Tools and Equipment, an Ontario, California company that sold portable generators and other equipment. The indictment charges Yeung and Fan with defrauding United Commercial Bank (UCB) and East West Bank, which took over UCB’s accounts, of more than $9 million.
Specifically, the indictment alleges that Yeung, Fan, and others overstated Eastern Tools’ accounts receivable to increase its line of credit with UCB and later East West. To support the inflated accounts receivable submitted to the banks, Yeung, Fan, and others allegedly opened approximately 20 shell companies, backstopped with fictitious business name statements, post office boxes, bank accounts, and telephone numbers. They then allegedly moved money from Eastern Tools’ bank accounts into the shell companies’ bank accounts to create the false appearance of substantial commercial activity. Finally, Yeung, Fan, and others allegedly siphoned those funds into their own personal accounts.
East West Bank allegedly sustained a loss of approximately $9,157,172 as a result of the fraud scheme.
In November 2008, UCBH Holdings, Inc., UCB’s parent company, received $298.7 million in federal taxpayer funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP). On Nov. 6, 2009, UCB failed and was taken over by state and federal regulators. As a result of the bank’s failure, none of the TARP funds were repaid, and the $298.7 million TARP investment has been written-off.
The charges contained in an indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by SIGTARP, the FBI and IRS-CI, and prosecuted by Trial Attorney Fred Medick of the Criminal Division’s Fraud Section.
Yeung Indictment
Local Man Pleads Guilty to Theft of Government FundsRead the Press Release
St. Louis, MO – MICHAEL LEON ADKINS, SR. pled guilty to theft of government funds in connection with a scheme to obtain housing benefits through the United States Department of Housing and Urban Development (HUD) between 2009 and 2014.
According to the plea agreement, Adkins abused HUD subsidized housing programs in two ways: 1) by "renting" his own house to his wife who accepted housing benefits from HUD and 2) by fraudulently seeking and accepting HUD benefits for a separate apartment he occupied. Adkins admitted to failing to report the government funds he received as his wife’s "landlord" while applying for benefits as a tenant. Adkins was able to conceal the funds he received as a landlord by placing his home in the name of his son. In all, Adkins admitted his scheme netted him more than $30,000 in funds intended for the indigent.
Adkins, St. Louis, Missouri, pled guilty to one count of theft of government funds before U.S. District Judge E. Richard Webber. Sentencing has been set for June 5, 2015.
This charge carries a maximum penalty of 10 years in prison and/or a fine of up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the HUD Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Lake Jackson Attorney and Others Charged in Mortgage Fraud SchemeRead the Press Release
HOUSTON - Kirk Lawrence Brannan, 60, a real estate and tax attorney in Lake Jackson, has turned himself in to authorities following the return of a federal indictment alleging he and others participated in a mortgage fraud scheme involving properties in Surfside and Freeport, announced U.S. Attorney Kenneth Magidson.
Brannan is charged in the two-count indictment along with Chucobie Lanier, 37, David Lee Morris, 52, and Derwin Jerome Blackshear, 47. They are set to make their initial appearance today before U.S. Magistrate Judge Nancy K. Johnson at 2:00 p.m.
The indictment, returned under seal Feb. 18, 2015, and unsealed today, alleges that during 2005 through 2009 Brannan sold a number of beach homes that he or family members owned in Surfside and Freeport through a mortgage fraud scheme. Lanier approached Brannan and offered to obtain buyers for Brannan’s homes if Brannan would kick-back to Lanier the proceeds from the sales that were above an agreed upon amount, according to the indictment. Lanier allegedly distributed the fraudulently obtained funds to Morris and Blackshear who helped organize the fraud scheme.
The indictment further alleges Brannan’s beach homes were purchased by “straw buyers” who had no intention of paying of the mortgage loans on their own or living in the homes. Numerous misrepresentations were allegedly made in the mortgage loan applications, and the lenders were induced to lend inflated sums for the purchases.
According to the indictment, all of the beach homes sold through the scheme ended up in foreclosure.
All four defendants are charged with conspiracy and face up to 30 years in federal prison as well as a possible $1 million fine, upon conviction. Brannan, Lanier and Morris are also charged with one count of bank fraud and face the same penalty if convicted on that charge.
The charges are the result of an investigation by FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Jury Finds Two More Brothers Guilty in Human Trafficking SchemeRead the Press Release
A jury today returned guilty verdicts against Mykhaylo Botsvynyuk, and his brother Yaroslav Botsvynyuk, a/k/a Yaroslav Churuk, both Ukrainian nationals living in Canada, on the charge of conspiracy to participate in a racketeering enterprise in connection with a human trafficking scheme. They face up to 20 years in prison. The defendants’ brothers, Omelyan and Stepan Botsvynyuk, were convicted at trial in October of 2011. A fifth brother, Dmytro Botsvynyuk, remains in Ukraine, a country that has not entered into an extradition treaty with the United States.
From the Fall of 2000 through the Spring of 2007, the defendants operated a human trafficking organization which smuggled young Ukrainian immigrants into the United States and then forced them to work for little or no pay. The defendants promised the victims they would earn $500 per month with free room and board by working for their organization. They smuggled the workers into the United States then put them to work as cleaning crews in retail stores, private homes, and office buildings without paying them. They used physical force, threats of force, sexual assault, and debt bondage to keep the victims in involuntary servitude. Even after some of the victims escaped, the defendants continued with their extortionist activities in order to recoup the organization’s investment in the workers. If direct threats failed and the workers did not return or make good on their debts, the Botsvynyuk brothers threatened violence to the workers’ families still residing in Ukraine. Some of the threats included threats to place the children of the workers, children who were still in Ukraine, into prostitution to work off the victims’ debts if the victims ran away.
Rather than bringing the workers to the United States legally, the Botsvynyuk Organization obtained tourist visas to Mexico and had operatives who coached the workers on how to enter the United States illegally. While some of the workers successfully entered the United States, others were taken into custody by U.S. immigration officials, where they remained in detention for almost two months. Once the victims were released, with immigration documents and summonses to appear for immigration hearings, the Botsvynyuk Organization transported them to Philadelphia, Pennsylvania, either by bus or by plane. The brothers then confiscated the immigration documents and summonses from the workers and put them to work cleaning large chain stores at night, such as Target, Acme, Best Buy and Walmart, as well as smaller stores. Throughout their employment with the brothers, the workers lived with up to five people in one room, slept on dirty mattresses on the floor, and were rarely, if ever, paid. None of the victims was paid what was promised and they were told that they had to continue working until their debts, usually $10,000 or more, were paid. Workers were allegedly struck and beaten, sometimes in the presence of others, if they attempted to quit or leave the employ of the Botsvynyuk brothers. One female worker was brutally raped by one of the coconspirators. After some workers escaped, Omelyan Botsvynyuk resorted to extorting the workers’ families in Ukraine, threatening them with harm if the workers did not return to work or pay their debts. In one instance, he threatened the mother of a victim that he would kidnap her younger son and send him back to her finger-by-finger if the victim did not return to work.
Omelyan Botsvynyuk was sentenced to life in prison plus 20 years and was ordered to pay restitution in the amount of $288,272.29; Stepan was sentenced to 20 years in prison and was ordered to pay restitution in the amount of $288,272.28.
The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the U.S. Department of Labor Office of Inspector General, the Toronto Police Department, the German National Police, the Berlin State Police, the Ukraine Security Service, the US National Central Bureau, the Department of Justice Office of International Affairs, the FBI LEGAT’s Office in Kiev, Ukraine, and INTERPOL.
Indictment Charges Convicted Felon in Possession of A FirearmRead the Press Release
Domingo Vargas, 36, of Philadelphia, Pennsylvania was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Husband of Former DeKalb County Commissioner Boyer Charged with Stealing County FundsRead the Press Release
ATLANTA – John Boyer, the husband of former DeKalb County, Georgia, Commissioner Elaine Boyer, has pleaded guilty to stealing county money that was paid to a third party, who then funneled the funds into a personal bank account used by the Boyers. The plea stems from Elaine Boyer’s conviction on similar charges in September, 2014.
“John Boyer exploited his wife’s position as a DeKalb County Commissioner to steal thousands of dollars in county funds. The Boyers’ scheme put tax payer money in their pockets – and left the citizens of DeKalb County with the tab,” said Acting U.S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The use of public office for personal gain is a serious breach of trust that should not be tolerated. The FBI has ranked public corruption as its number one criminal program priority due to its vast harm created along many lines and asks that anyone with information regarding such activity to please contact their nearest FBI field office.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners serves as the legislative branch of the DeKalb County Government. The Board of Commissioners is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business. In 1992, Elaine Boyer began serving as the Commissioner of District 1, which serves citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. In August 2014, Elaine Boyer resigned as the Commissioner of District 1.
In 2009, Elaine and John Boyer experienced financial difficulties. As a result, John Boyer devised an unlawful kickback scheme to obtain money from DeKalb County. In particular, in or about September 2009, Elaine Boyer, as the Commissioner of District 1, hired a family friend as a political advisor (“Advisor”), allegedly to assist her with government consulting.
From September 2009 to November 2011, false invoices were submitted to Elaine Boyer’s office for services supposedly rendered by Advisor. In fact, Advisor performed no services for DeKalb County. Elaine Boyer used the false invoices as the basis to authorize payments to Advisor. Based on requisition requests from Elaine Boyer, DeKalb County mailed approximately 35 checks, via the United States Postal Service, to Advisor for consulting services that were never performed. In total, DeKalb County paid Advisor more than $80,000.
John Boyer then instructed Advisor to deposit the money that the Advisor received from DeKalb County into a bank account used by Elaine and John Boyer. Consequently, after being paid by DeKalb County, Advisor funneled approximately $60,000 received from DeKalb County into a personal bank account used by the Boyers. In turn, the Boyers used the money deposited into the account to pay personal living expenses.
On September 3, 2014, Elaine Boyer, 58, of Stone Mountain, Georgia, pleaded guilty to one count each of conspiring to commit mail fraud and wire fraud. Ms. Boyer is scheduled to be sentenced before U.S. District Judge Orinda D. Evans on March 20, 2015, at 1:30 p.m.
John Boyer, 62, of Stone Mountain, Georgia, was charged via a criminal information with conspiring to commit mail fraud. Boyer pleaded guilty to that charge. In determining Boyer’s sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The sentencing hearing for Mr. Boyer is scheduled for May 6, 2015, at 2:00 p.m., also before Judge Evans.
This case is being investigated by Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Huntsville Police Officer Pleads Guilty to Conspiracy to Fix Cocaine Trafficking ChargesRead the Press Release
BIRMINGHAM - A Huntsville police officer pleaded guilty today in federal court to taking part in a conspiracy to fix cocaine trafficking charges against an individual arrested by another Huntsville officer, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Huntsville Police Chief Lewis Morris.
LEWIS BERNARD HALL, 45, of Meridianville, Ala., entered his guilty plea to the conspiracy before U.S. District Judge R. David Proctor. His sentencing date has not been set.
“A corrupt police officer poisons the public's trust in law enforcement. Most officers work hard to protect their communities and are willing to put their lives on the line in that service," Vance said. "Our communities need and deserve police officers with that integrity. The conduct of individuals like this defendant is not worthy of the badge and I applaud the work of the Huntsville Police Department and the FBI in bringing Mr. Hall to justice."
"While the majority of police officers serve and protect the public with honor, there are those few, like Mr. Hall, who violate the public’s trust and bring dishonor to their badge," Stanton said. "Simply stated, there is no place in law enforcement for individuals who lack integrity, lie, and violate the very laws they are sworn to uphold."
In his plea, Hall acknowledged that he conspired with someone identified in court documents as "Individual B" to pay a fellow police officer $5,000 if that officer would claim a July 29 vehicle search he conducted, which resulted in drug-trafficking charges against "Individual A," was unlawful, thereby making the criminal case against Individual A go away. The Huntsville officer who conducted the vehicle search and, subsequently, assisted in the investigation of Hall is identified only as "Cooperating Officer."
According to Hall's written plea agreement with the government, Individual A was on supervised release following a 15-year prison sentence for conspiracy to distribute a controlled substance when the Cooperating Officer pulled him over on a traffic stop July 29. The officer searched the passenger compartment of the vehicle, found about three ounces of cocaine, and took Individual A into custody on a charge of trafficking cocaine, according to the plea agreement.
Hall admits in his plea that on July 31, he and Individual B discussed offering the Cooperating Officer a bribe to tell other law enforcement officers that his search of Individual A's vehicle was unlawful. Hall offered the bribe to the Cooperating Officer on July 31, paid him $1,000 on Aug. 12, and had two follow-up conversations in November about what the officer was supposed to say when asked about the search of Individual A's vehicle, the indictment says.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine.The FBI investigated the case in conjunction with the Huntsville Police Department. Assistant U.S. Attorney George A. Martin Jr. is prosecuting the case.
###Heroin and Methamphetamine Traffickers Ordered to PrisonRead the Press Release
LAREDO, Texas – A total of 12 drug traffickers have been handed federal prison sentences for their convictions related to a far-reaching drug trafficking conspiracy, announced U.S. Attorney Kenneth Magidson. Edgar Loera and Miguel Angel Vives-Macias were convicted by a federal jury of multiple counts involving heroin and methamphetamine on March 3, 2014, following a five-day trial and less than four hours of deliberation. Ten others pleaded guilty in advance of that trial.
Today, U.S. District Judge Keith P. Ellison handed Loera, 31, of Mira Loma, Calif., and Vives-Macias, 35, of San Antonio, respective sentences of 225 and 188 months in federal prison. Those that had previously pleaded guilty in the case were also sentenced today. Luis Daniel Aguilar, 23, of Laredo, received 157 months, while Juan Trevino Jr., 24, Eduardo Gonzalez, 41, Clementina Aguilar-Castillo, 29, and Jose Librado Sanchez-Guerra, 30, all also of Laredo, received respective sentences of 100, 90, 81 and 75 months in federal prison. Antonio De Jesus Mejia-Contreras, 24, of Mira Loma, Calif., was sentenced to 81 months of federal imprisonment. Ericka Pina, 38, of Corpus Christi, and Leticia Corona, 38, of Dallas, received 54 and 70 months, respectively. Eduardo Segura, 23, of Tucson, Ariz., received 73 months, while Carlos Vasquez, 25, of Pomona, Calif., will serve a 30-month-term
During trial, jurors heard testimony from several co-conspirators who detailed several instances of heroin and methamphetamine trafficking from Mexico to Laredo, San Antonio, Houston and Dallas as well as distributions to California, Illinois, Oregon, Tennessee, Kansas, Washington and the Carolinas. The government also presented numerous vehicle title histories from California and Texas as well as vehicle and passenger crossing records from the ports of entry along the entire U.S.-Mexico border.
Testimony of several witnesses, including the 10 co-defendants, tied Loera and Vives-Macias to the trafficking organization between 2011 and 2012. Their testimony implicated both with recruiting drivers and couriers for the drugs in California and Texas.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force by agents with Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant U.S. Attorney José Angel Moreno prosecuted the case.Glen Burnie Attorney Admits to Filing Fraudulent Tax ReturnsRead the Press Release
Baltimore, Maryland – Maryland attorney Don F. Lindner, age 61, of Severna Park, Maryland, pleaded guilty today to filing a false tax return.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
"As tax season approaches, this case should be a reminder to everyone about the consequences of tax fraud," said U.S. Attorney Rod J. Rosenstein.
“As an attorney, Mr. Lindner is well educated regarding his federal income tax obligations, making his actions even more egregious,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s plea should be a warning to others that IRS Criminal Investigation is focused on those that intentionally underreport taxable income.”
According to his plea, Lindner practiced law in Glen Burnie, Maryland, and treated his law practice as a sole proprietorship. For his tax returns for 2007 and 2011, Lindner omitted $1,230,614 of gross receipts from his law practice. Lindner also maintained a rental property. Lindner falsely reported on his tax returns that he paid over $82,700 in repairs on the rental property during the same tax years, when in fact no repairs were done, thereby fraudulently decreasing his purported taxable income.
Lindner has agreed to pay restitution of $341,730 to the IRS for the tax years 2007 to 2011, which is the total amount of taxes he owed as a result of falsely reporting gross receipts and rental expenses.
Lindner faces a maximum sentence of three years in prison and a fine of $250,000. U.S. District Judge William D. Quarles Jr. scheduled sentencing for May 13, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who is prosecuting the case.
Four Delaware Men Plead Guilty in Wilmington Drug Conspiracy CaseRead the Press Release
WILMINGTON, Del. – Aaron Cephas, 33, of Wilmington, Del., Dashawn Broomer, 20, of Claymont, Del., and Andre Green, 20, of Claymont, Del., pled guilty yesterday to conspiring to distribute heroin in Wilmington, Del., announced Charles M. Oberly, III, United States Attorney for the District of Delaware.
This case is the result of a year-long Federal Bureau of Investigation (“FBI”) investigation into these men, who ran a heroin trafficking organization based in Wilmington. The investigation culminated in a one-and-a-half-month long wiretap investigation involving the interception of three telephones – one used by Cephas, one used by Broomer, and one used by Green.
Co-conspirator Joshua Cirwithian, 28, of Wilmington, Del., previously pled guilty to the same conspiracy charge on December 22, 2014. All defendants remain in custody pending their sentencing hearings. Cirwithian’s sentencing hearing is scheduled for April 23, 2015. Cephas’, Broomer’s, and Green’s sentencing hearings are scheduled for June 10, 2015.
According to the indictment and other court records filed in support of today’s guilty pleas, Cephas, Broomer, and Green were arrested on June 27, 2014. At that time, pursuant to a federal warrant, Broomer’s residence in Claymont, Del. was searched. Detectives found over 900 bags of heroin, a loaded handgun, and over $28,500 in cash. Cirwithian has been incarcerated since February 24, 2014, when he was arrested in a car in Virginia with a loaded handgun and approximately $65,000 in cash.
Cephas and Broomer face a maximum penalty of 40 years imprisonment (with a mandatory minimum of five years), up to a lifetime of supervised release (with a mandatory minimum of 4 years), a fine of up to $5,000,000, and a $100 special assessment. Green and Cirwithian face a maximum penalty of 20 years imprisonment, up to a lifetime of supervised release (with a mandatory minimum of 3 years), a fine of up to $1,000,000, and a $100 special assessment.
The case is the product of an investigation conducted by the Federal Bureau of Investigation (“FBI”) Violent Crime Task Force, which is part of the New Castle County HIDTA, a recently established collaborative effort among federal, state, and local law enforcement agencies. The FBI Violent Crime Task Force includes members from the following agencies: FBI, Delaware State Police, New Castle County Police Department, Delaware State Probation and Parole, and the Delaware Attorney General’s Office. In addition, the Wilmington Police Department assisted on this case. Assistant United States Attorney Shawn A. Weede and Special Assistant United States Attorney Elizabeth L. Van Pelt are prosecuting the case on behalf of the United States.Fort Lawn Man Sentenced for Social Security FraudRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Gerald W. Costner, age 71, of Fort Lawn, South Carolina has been sentenced in federal court in Columbia, South Carolina, for theft of government funds, a violation of 18 U.S.C. § 641. Chief United States District Judge Terry L. Wooten of Columbia sentenced Costner to five months imprisonment and ordered him to pay restitution of $92,925.00.
Evidence presented at the change of plea hearing established that Costner obtained Social Security Administration (SSA) benefits by collecting his roommate’s benefits from June 1992 until January 2014, after his roommate died. Costner failed to notify the SSA of the death and collected $92,925.00 in fraudulent Social Security Benefits.
The case was investigated by agents of the Office of Inspector General, Social Security Administration. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.#####
Former Township Tax Collector Charged Federally with Theft of $300,000 in Public FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Criminal Information was filed today against Melissa Ann Arnold, 46, of York.
According to United States Attorney Peter Smith, the Information alleges that during 2008 and 2009, Arnold stole more than $300,000 from tax payments made by citizens to Spring Garden Township, York County. Arnold was the Treasurer and Tax Collector for Spring Garden Township from 1995 until October 2009. Arnold was allegedly able to steal the tax payments because many of the checks were written out to her and, rather than deposit the checks into the Township’s account, she deposited them into her personal account.
The government also filed a plea agreement with the defendant which must be approved by the court. York County submitted an insurance claim for the funds and received full repayment. Arnold has entered into an agreement with the insurance company to pay back the full amount and has already paid part of the amount due.
The case was investigated by the Federal Bureau of Investigation with assistance of the Pennsylvania State Police and Spring Garden Township Police Department, and is being prosecuted by Assistant U.S. Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Owner of Durable Medical Equipment Company Pleads Guilty in $5 Million Health Care Fraud SchemeRead the Press Release
A Miami man pleaded guilty today to health care fraud charges in connection with a $5 million scheme to defraud Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office, Special Agent in Charge Mike Fields of HHS-OIG’s Dallas Field Office, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Angel M. Mirabal, 62, of Miami, Florida, pleaded guilty to one count of conspiracy to commit wire fraud and health care fraud before U.S. District Judge Marcia G. Cooke of the Southern District of Florida. A sentencing hearing is scheduled for May 6, 2015.
In connection with his guilty plea, Mirabal admitted that he was the owner, president and manager of Quick Solutions Medical Supplies Inc. (Quick Solutions), a durable medical equipment (DME) supply company located in Houston, Texas. Mirabel further admitted that from April 2010 through July 2013, he and his co-conspirators operated Quick Solutions for the purpose of billing the Medicare program for, among other things, expensive DME that was medically unnecessary and in many instances not provided to the Medicare beneficiaries. Indeed, many of the beneficiaries who purportedly received the DME resided hundreds of miles away in Miami.
From June 2011 through February 2012, Quick Solutions submitted approximately $5 million in fraudulent claims, and Medicare paid approximately $587,900 for these claims.
This case was investigated by the FBI, HHS-OIG and Texas Attorney General’s Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Former New York City Deparment of Sanitation Officer Sentenced in Manhattan Federal Court to 18 Months in Prison for Conspiring to Distribute Firearms and Stolen Goods and Sale of A FirearmRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTHONY SANTIAGO, a former New York City Department of Sanitation Codes Officer, was sentenced today to 18 months in prison for engaging in a scheme involving the illegal interstate transport of firearms and stolen goods and the illegal sale of a firearm interstate. SANTIAGO was sentenced today in Manhattan federal court by U.S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney PREET BHARARA said: "Anthony Santiago was a member of a conspiracy of corrupt law enforcement officers who not only betrayed their oaths to uphold the law, but exploited their positions as peace officers to carry out their gun-running and smuggling crimes. Participating in and actively recruiting others to a conspiracy that put illegal firearms on the street was the ultimate betrayal of honest police officers and citizens. Now Santiago will go to prison for it."
According to the Complaint, the plea agreement, the Information, and statements made in court:
From September 2010 to October 2011, SANTIAGO, who had been employed by the New York City Department of Sanitation as a Codes Officer at the time he committed the offenses, was recruited to participate and did participate in the transportation of firearms interstate and what he believed were stolen goods, including slot machines, cigarettes, and other merchandise, across state lines. SANTIAGO was an active participant in the conspiracy and an integral member of the team who recruited others to join the conspiracy and helped transport across state lines firearms, including three M-16 rifles, one shotgun, and 16 handguns, the majority of which had been defaced to remove or alter the serial numbers; numerous slot machines; and thousands of cartons of cigarettes, as well as various counterfeit merchandise. SANTIAGO also participated in the conspiracy to sell his shotgun interstate. In total, the goods that SANTIAGO and his co-conspirators illegally transported carried a street value of approximately $1 million.
SANTIAGO was recruited to join the conspiracies in December 2010 by the leader and organizer of the conspiracies, William Masso, who at the time of the conspiracies was an active duty Police Officer with the New York City Police Department (“NYPD”). SANTIAGO specifically discussed with Masso and their co-conspirators using their law enforcement credentials and knowledge of law enforcement in preparing for and carrying out the illegal transports. For example, in a meeting in March 2011 attended by SANTIAGO, Masso explained that the men should carry their law enforcement badges during the operation and, if stopped, say they were police officers working off-duty to deliver items that had been purchased at an auction. The group also discussed using their specialized knowledge as law enforcement officers in determining the ideal vehicle to rent to transport the goods. In addition, SANTIAGO recruited others to join the conspiracy, specifically recruiting at least one other law enforcement officer, and had frequent calls with Masso to help plan the illegal transports. In total, SANTIAGO was paid $26,000 for his role in the transport of the firearms and purportedly stolen goods.
SANTIAGO was an active participant in the conspiracies, participating in and helping to organize multiple trips. The trips in which SANTIAGO participated included two trips to transport purportedly stolen slot machines from Atlantic City to New York, trips to transport hundreds of cases of purportedly stolen cigarettes from New Jersey to New York, and the final trip during which 20 firearms were transported interstate. During one such transport, SANTIAGO was the co-conspirator who suggested buying a bolt cutter to break locks on trucks parked outside a warehouse in Virginia so that the team could steal the cigarettes stored in those trucks and then transport those stolen cigarettes back to New York. SANTIAGO also conspired to sell his shotgun to an undercover law enforcement officer for $2,000, and discussed with Masso and another co-conspirator the possibility of obtaining handguns and transporting them interstate. During his guilty plea, SANTIAGO admitted that he had knowingly transported what he believed were stolen cigarettes, slot machines, and other merchandise across state lines, had willfully transported firearms across state lines, and intentionally sold a shotgun to an individual who he believed resided in another state.
In addition to the prison term, Judge Batts sentenced SANTIAGO, 48, of Little Egg Harbor, New Jersey, to two years of supervised release and ordered him to pay a $300 special assessment fee. SANTIAGO also has agreed to a money judgment of $26,000 representing his share of the crime proceeds, and has relinquished his interests in guns seized from him at the time of his arrest.
SANTIAGO originally was charged in a four-count Complaint along with 11 co-conspirators, many of whom were NYPD Police Officers at the time of the offense. All of the defendants have now pled guilty and been sentenced. A chart containing the status of each defendant is attached.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Internal Affairs Bureau of the NYPD.
This case is being handled by the Office's Public Corruption and Complex Frauds & Cybercrime Units. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.
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Former Delta Air Lines Employee Sentenced to Six Years for His Role in Defrauding Delta and Northwest Air Lines of More Than $36 MillionRead the Press Release
ATLANTA - Paul Anderson has been sentenced to six years and eight months in prison for his role in a scheme to defraud Northwest and Delta Air Lines of more than $36 million. Anderson and his co-defendant Michael Yedor submitted false invoices to both airlines, for work that was not performed but was billed for by a company allegedly owned by Yedor.
“The defendant’s lucrative and long-running scheme came crashing down when Delta uncovered his deception and informed law enforcement,” said Acting U.S. Attorney John Horn. “For more than a decade, Anderson used his position of trust within these airline companies to steal millions of dollars from the airlines for himself and a codefendant.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains well positioned and committed toward investigating those individuals who would engage in such complex wire fraud based schemes that generate high loss amounts as seen in this case. The sentencing of Mr. Anderson brings to a close a lengthy fraud scheme that spanned almost 15 years and targeted two major airlines.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Anderson had been an employee of Northwest Airlines since 1979. In 2008, Delta Air Lines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became a managerial employee of Delta, working in its Minneapolis, Minnesota office.
From at least 1999 through 2013, Anderson and co-defendant Michael Yedor engaged in a scheme to defraud Northwest and later, Delta, by submitting numerous false invoices on behalf of a company purportedly owned by Yedor, Airborne Voice and Data. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data, when in fact both Anderson and Yedor knew that Yedor’s company had not provided any such goods or services.
In order to receive payment for the false invoices, Yedor sent the invoices to Anderson, who had the authority to approve them for payment. Once Anderson approved the invoices, falsely indicating that the goods or services had been received, the airlines issued payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The defendants acknowledged that they received more than $36 million from the airlines during the scheme.
Anderson, 57, of Apple Valley, Minnesota, was sentenced by U.S. District Judge Timothy Batten to six years, eight months in prison, to be followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million and to forfeit his individual retirement accounts. Anderson was indicted on June 10, 2014, and pleaded guilty on September 15, 2014, to conspiracy to commit mail fraud.
Co-defendant Michael Yedor, 62, of Los Angeles, California, was sentenced on January 9, 2015, by U.S. District Judge Timothy Batten to ten years in prison, followed by three years of supervised release. He was also ordered to pay restitution of more than $36 million, in addition to a personal money judgment of more than $36 million, and forfeiture of his interest in an array of real properties and luxury goods, including a Beverly Hills mansion and a 71.9 foot yacht.
Delta Air Lines cooperated fully with the investigation.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Glenn D. Baker, Jamie L. Mickelson, and Jenny Turner are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Correctional Guard Sentenced for Conspiracy to Smuggle Heroin, Methamphetamine and Other Contraband into the Taft Correctional FacilityRead the Press Release
FRESNO, Calif. — Ramon Cano, 28, a former correctional officer at the Taft Federal Correctional Facility was sentenced by United States District Court Judge Anthony W. Ishii yesterday to 30 months in prison for conspiracy to provide and possess contraband in prison in violation of 18 U.S.C. §§ 371 and 201(b)(1), United States Attorney Benjamin B. Wagner announced.
According to court documents, Cano admitted that between November 2013 and February 27, 2014, he conspired with Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Facility to smuggle cell phones, cash, alcohol and controlled substances into the prison in return for the payment of cash.
In sentencing Cano, Judge Ishii stated that Cano abused his position of trust and compromised the integrity and safety of the Taft Federal Correctional Institution. Judge Ishii went on to state that a correctional officer must be held to a high standard of conduct and failure to uphold this conduct can seriously endanger all those within the confines of that prison. Ramon Cano abused that trust and his acts warranted the sentence imposed.
“Cano’s criminal activity of introducing contraband into the prison placed fellow correctional officers and inmates they supervised at risk,” said FBI Assistant Special Agent in Charge John Gliatta. “Those who abuse trusted roles for personal gain threaten the safety and security of the institutions neighboring communities. Such actions also threaten the reputation and safety of all corrections personnel.”
On September 2, 2014, Gerardo Alvarez-Montanez was sentenced by Judge Ishii to 60 months in prison for conspiring with Cano to provide and possess contraband in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General. Assistant United States Attorney Brian K. Delaney is prosecuting the case.Former Bristol Resident Sentenced to 5 Years in Prison for Operating $1.8 Million Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN GOODRICH, 57, of Rocky Hill, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for operating a scheme that defrauded investors out of more than $1.8 million.
According to court documents and statements made in court, GOODRICH formerly resided in Bristol where he conducted an investment business using the name Goodrich Financial. Although GOODRICH was not a licensed or registered investment adviser, he provided a business card to some investors that falsely represented that he was licensed to conduct an investment business. Beginning in approximately 2006 and continuing to approximately November 2012, GOODRICH defrauded individuals who had provided him with investment funds by failing to invest the funds as represented, and by using some of the investment funds for his personal use. At times, GOODRICH also used new investor funds to return the principal investment to older investors as is often done in Ponzi schemes. In order to prevent his investors from becoming aware of the scheme, GOODRICH provided written performance summaries to his investors that falsely represented the value of their investments. More than 10 investors collectively lost more than $1.8 million as a result of this scheme.
As part of his sentence, GOODRICH was ordered to pay full restitution to his victims.
During the years 2007 to 2011, GOODRICH used more than $600,000 of the investors’ funds for his personal use without disclosing this income on his federal tax returns. As a result, GOODRICH owes $239,443 in additional federal taxes, plus interest and penalties.
On October 7, 2014, GOODRICH waived his right to indictment and pleaded guilty to one count of mail fraud and one count of subscribing to a false tax return.
GOODRICH, who is released on bond, was ordered to report to prison on April 24, 2015.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with the assistance of the Connecticut Department of Banking. The case was prosecuted by Senior Litigation Counsel Richard J. Schechter.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
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Tom Carson
(203) 821-3722 [email protected]Former Bookkeeper Indicted for Embezzling from Tacoma Charity Thrift StoresRead the Press Release
The former bookkeeper for the St. Vincent de Paul Society Stores of Tacoma, Washington, was arrested yesterday afternoon on an indictment returned by a federal grand jury charging her with multiple counts of wire fraud and aggravated identity theft, announced Acting United States Attorney Annette L. Hayes. ANGELA TONEY SAUCIDO, 44, was arrested in Phoenix, Arizona. SAUCIDO moved from the Tacoma area to Phoenix in 2007, but continued to work for the charity as its bookkeeper. The indictment alleges the embezzlement began at least in 2006 and continued throughJuly 2013. SAUCIDO will make her initial appearance in U.S. District Court in Arizona today, with future court appearances in Tacoma.
According to the indictment the embezzlement scheme involved a variety of frauds. SAUCIDO would transfer funds from the St. Vincent de Paul Society Stores bank accounts to her own bank accounts and falsify entries making it appear the transfers were for legitimate purposes. SAUCIDO forged signatures on checks and made electronic fund transfers to benefit her and her family. SAUCIDO made purchases for her personal use on the St. Vincent de Paul Society Stores Home Depot credit account, and then used the charity’s funds to pay for the purchases. Finally, SAUCIDO used the identities of other employees to make it appear they had received additional pay when in fact she had deposited the money into bank accounts she and her husband controlled.
The indictment charges seven counts of wire fraud and four counts of aggravated identity theft. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. Aggravated Identity Theft is punishable by a mandatory two years of prison that must follow any term imposed on the wire fraud counts.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Matthew Hampton.
Former Bank of America Vice President in Las Vegas Pleads Guilty to Misapplication of Bank FundsRead the Press Release
A former senior vice president of Bank of America (BOA) in Las Vegas pleaded guilty today to misapplication of bank funds in a scheme that led to over $6.4 million in losses to BOA on two business-related loans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Office and Special Inspector General Christy L. Romero of the Troubled Asset Relief Program made the announcement.
Justin T. Brough, 39, of North Las Vegas, Nevada, pleaded guilty to one count of misapplication of bank funds before U.S. District Judge Andrew P. Gordon of the District of Nevada. A sentencing hearing is scheduled for May 28, 2015.
According to his plea documents, Brough was a senior vice president at BOA in Las Vegas, serving as a business banking market executive. Brough provided financial services to high-net-worth clients.
Brough admitted to misapplying bank funds in connection with two business loans: a $6.3 million short-term construction loan, and a $600,000 line of credit in connection with the acquisition of a business. Brough admitted that neither borrower qualified for the loans, because they did not meet the bank’s underwriting requirements. Brough further admitted that he falsified documents in order to help both borrowers get the loans, including forging signatures on loan papers.
According to Brough’s admissions, when the borrowers had difficulty making payments on the loans, Brough misused the bank’s general ledger fund to make a total of $436,676 in payments on the loans for the borrowers. Brough admitted that he disguised those payments, among other ways, as “goodwill,” “miscellaneous adjustments” and refunds of various fees. He also admitted that he kept each of the individual payments under $10,000 so he would not need additional approval within BOA.
Both borrowers ultimately defaulted on the loans. According to Brough’s plea agreement, the aggregate loss to BOA was $6,468,767: $5,291,000 on the first loan, and $1,177,167 on the second loan.
BOA received a total of $45 billion in taxpayer funds from the Troubled Asset Relief Program (TARP) of the U.S. Department of the Treasury, which BOA repaid in full in December 2009.
The case was investigated by the FBI and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). This case is being prosecuted by Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section.
Florida Woman Sentenced for Participating in Nashua-Based, Nationwide Tax Return ScamRead the Press Release
CONCORD, NEW HAMPSHIRE – Ann Marie Howard Aguiar, 47, of Jacksonville, Florida was sentenced in United States District Court for the District of New Hampshire to thirty-months in prison after pleading guilty to one count of conspiracy to commit wire fraud in connection with a nationwide tax refund scheme, announced United States Attorney John P. Kacavas.
Aguiar admitted that she participated in a scheme, organized by former Nashua resident Craig S. Cudhea, to file a large number of false tax returns claiming refunds to which the persons in whose names the returns were filed were not entitled. The scheme, based in Nashua, resulted in the filing of thousands of false claims for tax refunds from the Internal Revenue Service.
Cudhea recruited a nationwide network of pastors to solicit members of their congregations to provide their names and social security numbers on the false pretense that their personal identifying information would be used to secure stimulus funds that the government was giving to the poor, disabled and unemployed. The pastors led churches in Virginia, Georgia, New York, Texas, South Carolina, Arkansas, Ohio and Nevada. Many congregants at these churches, consisting mostly of low-income individuals with limited experience with the IRS, provided their personal identifying information and the pastors forwarded that information to Cudhea.
Cudhea then transmitted the personal identifying information to approximately eight women around the country who had been recruited via the internet to enter the information on electronic tax returns. Cudhea dubbed this group of women his “Angels,” and Aguiar was one of Cudhea’s Angels. Cudhea instructed his Angels to report certain information on the falsified tax returns, including specific income amounts, withholding, and expenses such as education and child care that would generate credits and refunds. The information reported was always very similar and often identical.
Although Aguiar was aware that the financial information she reported was false, she prepared and electronically filed the tax returns with the IRS. Cudhea and his Angels filed more than 5,000 false tax returns seeking refunds of approximately $9.4 million. Cudhea paid Aguiar a flat fee for each false return that she prepared that was accepted for processing by the IRS. Cudhea directed the IRS to pay portions of each refund to himself, the pastor who provided the personal identifying information, and sometimes the person in whose name the return was filed. The scheme induced the IRS to pay more than $4 million in false refund claims before it became aware of the fraudulent nature of the claims.United States Attorney John P. Kacavas said, “Prosecuting cases of financial fraud, particularly cases in which the American taxpayer is the victim, is an essential mission of my office. We will continue to work with our law enforcement partners to identify and prosecute fraudsters and restore stolen monies to the public fisc.”
Cudhea, who was charged with conspiracy, wire fraud and other crimes in connection with the scheme, committed suicide after learning that he was being prosecuted. The charges against him have been dismissed.
This case was investigated by the Manchester field office of the IRS’s Criminal Investigation division. The case was prosecuted by Assistant U.S. Attorney Bill Morse.Federal Officials Close Investigation into Death of Trayvon MartinRead the Press Release
The Justice Department announced today that the independent federal investigation found insufficient evidence to pursue federal criminal civil rights charges against George Zimmerman for the fatal shooting of Trayvon Martin on Feb. 26, 2012, in Sanford, Florida. Prosecutors from the Justice Department’s Civil Rights Division, officials from the FBI, and the Justice Department’s Community Relations Service met today with Martin’s family and their representatives to inform them of the findings of the investigation and the decision.
“The death of Trayvon Martin was a devastating tragedy. It shook an entire community, drew the attention of millions across the nation, and sparked a painful but necessary dialogue throughout the country,” said Attorney General Eric Holder. “Though a comprehensive investigation found that the high standard for a federal hate crime prosecution cannot be met under the circumstances here, this young man’s premature death necessitates that we continue the dialogue and be unafraid of confronting the issues and tensions his passing brought to the surface. We, as a nation, must take concrete steps to ensure that such incidents do not occur in the future.”
Following the shooting, a team of some of the department’s most experienced civil rights prosecutors and FBI agents conducted a comprehensive, independent investigation of the events of Feb. 26, 2012. The federal investigation was opened and conducted separately from the state of Florida’s investigation of the shooting under local laws. Once the state initiated the second-degree murder prosecution, federal investigators began monitoring the state’s case and halted active investigation in order not to interfere with the state’s trial. Federal investigators provided reports of interviews and other evidence they obtained to the state’s prosecution team.
Shortly after Zimmerman’s acquittal in state court on July 13, 2013, federal investigators resumed active investigation. Federal investigators reviewed all of the material and evidence generated by the state of Florida in connection with its investigation and prosecution of Zimmerman, including witness statements, crime scene evidence, cell phone data, ballistics reports, reconstruction analysis, medical and autopsy reports, depositions, and the trial record. Federal investigators also independently conducted 75 witness interviews and obtained and reviewed the contents of relevant electronic devices. The investigation included an examination of police reports and additional evidence that was generated related to encounters Zimmerman has had with law enforcement in Florida since the state trial acquittal. In addition, federal authorities retained an independent biomechanical expert who assessed Zimmerman’s descriptions of the struggle and the shooting.
The federal investigation sought to determine whether the evidence of the events that led to Martin’s death were sufficient to prove beyond a reasonable doubt that Zimmerman’s actions violated the federal criminal civil rights statutes, specifically Section 3631 of Title 42 of the U.S. Code or Section 249 of Title 18 of the U.S. Code, as well as other relevant federal criminal statutes. Section 3631 criminalizes willfully using force or threat of force to interfere with a person’s federally protected housing rights on account of that person’s race or color. Section 249 criminalizes willfully causing bodily injury to a person because of that person’s actual or perceived race. Courts define “willfully” to require proof that a defendant knew his acts were unlawful, and committed those acts in open defiance of the law. It is one of the highest standards of intent imposed by law.
The federal investigation examined whether Zimmerman violated civil rights statutes at any point during his interaction with Martin, from their initial encounter through the fatal shooting. This included investigating whether there is evidence beyond a reasonable doubt that Zimmerman violated Section 3631 by approaching Martin in a threatening manner before the fatal shooting because of Martin’s race and because he was using the residential neighborhood. Investigators also looked at whether there is evidence beyond a reasonable doubt that Zimmerman violated Section 3631 or Section 249, by using force against Martin either during their struggle or when shooting Martin, because of Martin’s race.
“Although the department has determined that this matter cannot be prosecuted federally, it is important to remember that this incident resulted in the tragic loss of a teenager’s life,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Our decision not to pursue federal charges does not condone the shooting that resulted in the death of Trayvon Martin and is based solely on the high legal standard applicable to these cases.”
After a thorough and independent investigation into the facts surrounding the shooting, federal investigators determined that there is insufficient evidence to prove beyond a reasonable doubt a violation of these statutes. Accordingly, the investigation into this incident has been closed. This decision is limited strictly to the department’s inability to meet the high legal standard required to prosecute the case under the federal civil rights statutes; it does not reflect an assessment of any other aspect of the shooting.
The Justice Department is committed to investigations of allegations of bias-motivated violence and will continue to devote the resources required to ensure that allegations of civil rights violations are fully and completely investigated. The department aggressively prosecutes criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Grand Jury Formalizes Charges Against Thaddeus Murphy, Man Responsible for Placing Explosive Type Device at Colorado Springs BuildingRead the Press Release
Click here for a copy Thaddeus Murphy's indictment
DENVER – Thaddeus Cheyenne Murphy, age 44, of Colorado Springs, Colorado, was indicted by a federal grand jury in Denver yesterday, the U.S. Attorney’s Office, the FBI, ATF and Colorado Springs Police Department announced. Murphy is believed responsible for placing a device at 603 South El Paso Street in Colorado Springs. Murphy is scheduled to appear before U.S. Magistrate Judge Michael J. Watanabe at 10:00 a.m. tomorrow morning (Wednesday, February 25, 2015) in the Arraj Federal Courthouse, 901 19th Street, for a detention hearing and arraignment. During the detention portion of the hearing the government will argue that the defendant is a danger to the community and should be held without bond. That decision will be made by Magistrate Judge Watanabe.
Because of the indictment, the preliminary hearing originally scheduled for February 27, 2015 has been vacated.
Count one of the indictment alleges that on January 6, 2015, Murphy did maliciously damage and destroy, or attempt to damage or destroy, by means of fire and an explosive, a building located at 603 South El Paso Street in Colorado Springs, Colorado, and such real property is used in interstate or foreign commerce. If convicted of that count, Murphy faces not less than 5 years, and up to 20 years in federal prison, and up to a $250,000 fine.
County two of the indictment alleges that on February 19, 2015, Murphy having been previously convicted of a felony offense knowingly possessed firearms. If convicted of that count, Murphy faces not more than 10 years in federal prison, and up to a $250,000 fine.
This case is being jointly investigated by the FBI, ATF and the Colorado Springs Police Department with support from the El Paso County Sheriff’s Office. The investigation into Murphy’s motive is ongoing.
The defendant is being prosecuted by Assistant U.S. Attorneys Gregory Holloway and Beth Gibson.
The charges in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Federal Court Shuts Down Hawaii Tax Return PreparerRead the Press Release
On Feb. 20, a federal court permanently barred a Kahului, Hawaii, man from preparing federal tax returns for others, the Justice Department announced today.
The U.S. District Court for the District of Hawaii issued the injunction finding that James A. Ericson knowingly and repeatedly violated the Internal Revenue Code by preparing returns that understated his customers’ tax liabilities and by taking unreasonable positions in filing his customers’ returns. The court found that an injunction permanently barring him from preparing federal tax returns for others was necessary to prevent further recurrence of Ericson’s practices. The court’s order applies to Ericson and “all those in active concert or participation with him.”
The complaint alleged that Ericson prepared roughly more than 1,000 tax returns per year. According to the complaint, Ericson improperly understated his customers’ federal tax liabilities by fabricating business schedules, expenses and business income for non-existent businesses; claiming false or inflated credits; and deducting personal expenses that were not legally deductible. The suit also alleged that Ericson falsely claimed to some of his customers that he was a former Internal Revenue Service (IRS) employee. In total, the government’s complaint alleged that the loss to the U.S. Treasury from Ericson’s activities may have exceeded $31 million for tax years 2007 through 2012.
The court’s order requires Ericson to produce to the government counsel a list of all persons for whom he has prepared federal tax returns or claims for a refund since Jan. 1, 2008, and to notify all such persons of the injunction entered against him.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Eight More Sentenced to Federal Prison in Connection with a Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio today, one former Maverick County commissioner, three former Maverick County employees and four Eagle Pass businessmen were sentenced for their roles in a bribery, kickback and bid-rigging scheme that caused Maverick County to lose more than $1.3 million announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
“The corruption in the cases sentenced this week works like a cancer on the body politic, eating away public confidence in local government. We will make every effort to counter its effects and hold accountable those who abuse the public trust for their personal gain,” stated Acting United States Attorney Richard L. Durbin, Jr.
“These defendants created a culture of corruption that spread throughout Maverick County, enabling theft and waste to thrive while taxpayers and honest businesses suffered,” stated FBI SAC Christopher Combs, San Antonio Division.
United States District Judge Alia Moses sentenced:
- former Maverick County Precinct 1 Commissioner Eliaz Maldonado, age 54, to ten years in federal prison followed by three years of supervised release and to perform 1,200 hours of Community Service after completing his prison term. Maldonado was also ordered to pay a maximum $173,128.59 in restitution to the County. On May 2, 2013, Maldonado pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Maldonado admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded County construction contracts. Furthermore, Maldonado admitted that he instructed the private contractors to submit inflated bids to the County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes.
- former Maverick County Precinct 1 foreman Eduardo Rene Rodriguez, age 43, to 97 months in federal prison followed by three years of supervised release for receiving a bribe and to perform 1,200 hours of Community Service after completing his prison term. Rodriguez was also ordered to pay a maximum $26,535.72 in restitution to the County. In January 2013, the liaison between the County and private contractors hired to perform work for the County pleaded guilty to accepting a bribe. By pleading guilty, Rodriguez admitted that in 2010 and 2011, while on pretrial release for unrelated federal firearms charges, he accepted bribes totaling approximately $12,000 from contractors looking to secure County construction contracts. In 2011, Rodriguez was sentenced by Judge Moses to 21 months in federal prison and ordered to pay a $1,000 fine for conspiring to provide a false statement during the purchase of a firearm.
- former Maverick County Precinct 1 foreman Jaime Flores (Eduardo Rodriguez’s replacement), age 35, and 39-year-old Eagle Pass businessman Joe M. Rodriguez, to 72 months and 42 months in federal prison, respectively, followed by three years of supervised release for their roles in a scheme to steal County property. In addition to the prison terms, Flores and Rodriguez were also ordered to pay, jointly and severally, $32,070.00 in restitution to the County. Flores was also ordered to perform 500 hours of Community Service after completing his prison term. Flores and Rodriguez previously pleaded guilty to one count of theft concerning programs receiving federal funds. By pleading guilty, the defendants admitted that they stole County funds for a 15,000 pound capacity forklift that was never purchased. Court records also revealed that Jaime Flores transported numerous bribe payments on behalf of contractors to former Precinct 1 Commissioner Eliaz Maldonado. Following sentencing, Judge Moses remanded Rodriguez into the custody of the United States Marshals Service to begin serving his prison term.
- former Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Daniel Chavez, Jr., age 42, to 65 months in federal prison followed by three years of supervised release and to perform 800 hours of Community Service after completing his prison term. Chavez was also ordered to pay a maximum $201,057.71 restitution to the County. Chavez had previously pleaded guilty to one count of theft concerning programs receiving federal funds. Chavez admitted that from March 9, 2012, to December 28, 2012, he pocketed over $62,000 in forged Maverick County checks he drafted himself. Court records also revealed that Chavez created a construction company for the purpose of participating in the bribery scheme. Chavez also transported bribes from another contractor to former Precinct 2 Commissioner Rodolfo Heredia in furtherance of the scheme.
- Eagle Pass contractors Javier Gonzalez, age 44, and Eduardo De la Garza, age 46, to 112 months in federal prison followed by three years of supervised release and ordered to perform 800 hours of Community Service after completing their prison terms. In 2013, both Gonzalez and De la Garza pleaded guilty to one count of paying a bribe. Gonzalez, a former Maverick County juvenile probation officer, admittedly paid bribes ranging between $2,000 and $5,000 to multiple commissioners in return for over $400,000 in Maverick County contracts. He was also ordered to pay a maximum $156,337.29 in restitution to the County. De la Garza, who admittedly paid bribes ranging from $1,500 to $8,000 to multiple commissioners in return for over $800,000 in Maverick County contracts, was also ordered to pay a maximum $264,246.51 in restitution.
- Jose Telles, Jr., 46-year-old owner of 4x4 Construction, to ten years in federal prison followed by three years of supervised release. Telles was also ordered to pay $8,628.58 restitution to Maverick County and perform 1,200 hours of Community Service after completing his prison term. On June 4, 2013, Telles pleaded guilty to one count of paying a bribe. By pleading guilty, Telles admitted that in 2010, he paid a $5,000 bribe to Maverick County Precinct 1 commissioner Eliaz Maldonado to secure a $30,200 County contract to construct inlets and junction boxes on Juan and Laura Streets in Precinct 1.
Judge Moses also continued bond conditions for Eliaz Maldonado, Javier Gonzales, Eduardo De la Garza and Jose Telles until the defendants are instructed by federal authorities as when and where to report to begin serving their prison terms. Jaime Flores, Eduardo Rodriguez and Hector Chavez were already in custody prior to today.
San Antonio businessman German Garcia Cano, 55-year-old owner of GGC Enterprises (GGC), failed to appear for today’s scheduled sentencing. A bench warrant has been issued for his arrest. In October 2014, Cano pleaded guilty to one count of paying a bribe. According to the court records, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County. Cano admitted to paying bribes to two Maverick County employees to ensure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.
To date, sixteen (16) individuals have been convicted and sentenced in connection with this investigation.
Former Maverick County Precinct 4 commissioner Cesar Flores is scheduled to be sentenced tomorrow afternoon in federal court in Del Rio. On September 5, 2013, Flores pleaded guilty to one count of receiving a bribe. By pleading guilty, Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain contractors were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011.
This case is part of an ongoing investigation being conducted by the Federal Bureau of Investigation with assistance from Customs and Border Protection Office of Internal Affairs, Texas Department of Public Safety Criminal Investigative Division, Texas Rangers, Drug Enforcement Administration, and the Eagle Pass ISD Police Department. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Bryan N. Reeves, Michael Galdo and Katie Griffin prosecuted this case on behalf of the Government.
- former Maverick County Precinct 1 Commissioner Eliaz Maldonado, age 54, to ten years in federal prison followed by three years of supervised release and to perform 1,200 hours of Community Service after completing his prison term. Maldonado was also ordered to pay a maximum $173,128.59 in restitution to the County. On May 2, 2013, Maldonado pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Maldonado admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded County construction contracts. Furthermore, Maldonado admitted that he instructed the private contractors to submit inflated bids to the County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes.
East Montpelier Man Sentenced to Prison for Child Pornography OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Karlberg, 26, of East Montpelier, Vermont, was sentenced on February 23, 2015, in United States District Court in Burlington, Vermont, to serve a lifetime period of supervised release following his conviction on one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Judge William K. Sessions III also ordered Karlberg to pay a $100 special assessment.
According to court records and proceedings, in January 2013, the parents of a minor in Texas notified law enforcement that their daughter was being harassed by a man she had met in a chatroom on the Internet. The man was pressuring her to take sexually explicit photographs of herself to send to him. Subsequent investigation identified the man chatting with the minor as Karlberg. Karlberg consented to law enforcement searching his computer, and on it were found images of child pornography that included sadistic and masochistic conduct and bestiality. Law enforcement also found evidence that Karlberg had communicated with several other teenage girls and coerced them into masturbating for him on camera. Unknown to the girls, Karlberg secretly recorded them masturbating for him.
After reviewing a report of Karlberg’s mental condition and reviewing his personal history and characteristics, Judge Sessions declined to sentence Karlberg to a prison term and, instead, ordered him to be on supervised release for the rest of his life. Judge Sessions ordered the period of supervised release to be evaluated after 20 years and every five (5) years thereafter to determine if the term of supervision should be terminated. The government did not object to the sentence.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the Vermont Attorney General’s Office in the investigation and prosecution of Karlberg. The prosecution of Karlberg was handled by Assistant U.S. Attorney Barbara A. Masterson. Karlberg was represented by David L. McColgin.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice=s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney=s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dutch National Indicted on Computer Hacking and Identity Theft Charges Related to Theft of Digital Versions of 3 Hollywood MoviesRead the Press Release
LOS ANGELES – A federal grand jury today indicted a Dutch national on federal computer hacking and identity theft charges related to the theft of digital versions of three motion pictures.
Joey Vogelaar, who used the online monikers of “TyPeR” and “neXus,” was named in a two-count indictment that alleges unauthorized access to a protected computer and aggravated identity theft.
Vogelaar, 28, a resident of Delft, the Netherlands, allegedly stole pre-release digital copies of the Sony Pictures Entertainment film “How Do You Know” and the Paramount production “Rango,” as well as the Dreamworks movie “Megamind,” which at the time of the alleged theft was in theatrical release.
In 2010, Vegelaar allegedly used a username and password belonging to another person to access a computer system where the films were located. The compromised computer system was located at a company outside of the studios that was involved in the production process.
The computer hacking charge carries a statutory maximum sentence of five years in federal prison. The charge of aggravated identity theft carries a mandatory two-year sentence to run consecutive to any other sentence imposed in the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
This case was investigated by the Federal Bureau of Investigation.
Release No. 15-019
District Man Sentenced to Six-Year Prison Term for Engaging in Sex Trafficking of a Minor and Two Women -Victims Transported to Sexual Encounters, Forced to Turn over All Proceeds-Read the Press Release
WASHINGTON – Reckay Haith, 26, of Washington, D.C., has been sentenced to six years in prison for prostituting and trafficking a 16-year-old girl and two adults between June 2014 and August 2014, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Haith pled guilty in December 2014, in the Superior Court of the District of Columbia to one count of sex trafficking of children and two counts of pandering. He was sentenced by the Honorable Jennifer Anderson on Jan. 23, 2015. Upon completion of his prison term, the defendant will be placed on three years of supervised release.
According to the government’s evidence, Haith and his girlfriend approached the minor and her friend in Northeast Washington and recruited them to engage in prostitution. The girlfriend—at Haith’s direction—taught the minor and her friend how to post online advertisements for sex, set the pricing structure for their sexual encounters, and directed them to turn over all proceeds from these encounters to the defendant. Haith then transported the victims to their various encounters in Maryland and Washington D.C., and waited nearby to allow for immediate collection of the proceeds. The defendant committed these acts despite being told by the minor that she was, in fact, 16 years of age.
On Aug. 7, 2014, members of the FBI’s Child Exploitation Task Force received a tip that Haith was engaging in prostitution and sex trafficking activities. After locating one of the minor’s online advertisements, members of the team immediately contacted her and arranged for an encounter in the District of Columbia. Haith then transported the minor from a hotel in Silver Spring, Md., to the prearranged meeting location in the District of Columbia. Upon his arrival, Haith was placed under arrest.
This case was brought as part of the Department of Justice’s Project Safe Childhood initiative and investigated by the FBI’s Child Exploitation Task Force, which includes members of the FBI’s Washington Field Office and the Metropolitan Police Department. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Andrew McCabe and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force, as well as the MPD’s Narcotics and Special Investigation Division, Human Trafficking Unit. They also commended those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Tierra Nanches and Assistant U.S. Attorneys Lindsay Suttenberg and Danny Nguyen, who investigated and prosecuted the matter.
15-028
District Man Sentenced to 14-Month Prison Term for Failing to Register as a Sex OffenderRead the Press Release
WASHINGTON – Joe Harris, also known as Ezekiel Maza, 58, of Washington, D.C., was sentenced today to 14 months in prison on a federal charge of failure to register as a sex offender, announced U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Harris has two prior felony convictions for sex offenses, one from the state of Washington and one from Georgia, which require him to register as a sex offender. According to the government’s evidence, Harris moved from Georgia to the District of Columbia and initially registered as a sex offender in 2008 but did not report back to the registry to update his home and work addresses until 2014, following his arrest in this case. During that time, Harris was able to obtain employment as a home delivery driver with two separate food delivery companies by lying on his employment application regarding his criminal history. Harris also moved to several different residences in the District of Columbia without updating the Registry as to those addresses, one of which was a transitional shelter for previously-homeless women.
Harris pled guilty in November 2014 in U.S. District Court for the District of Columbia to one count of failure to register as a sex offender in violation of the Sex Offender Registration and Notification Act (SORNA). He was sentenced by the Honorable Rosemary M. Collyer. His prison term is to be followed by five years of supervised release.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation in 2010 to target sex offenders who violate SORNA by knowingly failing to comply with their sex offender registration requirements. SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist states in locating and apprehending non-compliant sex offenders.
In announcing the sentence, U.S. Attorney Machen and U.S. Marshal Hughes praised the work of Senior Inspector Floriano Whitwell and other members of the D.C. Superior Court Sex Offender Investigations Section of the U.S. Marshals Service, who investigated the case. He also expressed appreciation for the assistance of the Court Services and Offender Supervision Agency. Finally, he commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Troy Griffith and Assistant U.S. Attorney Sarah McClellan, who prosecuted the case.
15-029
Clearfield Woman Sentenced to Prison for False Tax Return SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Clearfield, Pa., has been sentenced in federal court to 15 months in prison and three years’ supervised release on her conviction of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Juanitha Leach-Anderson, 37
According to information presented to the court, from Mar. 2007 to Aug. 23, 2008, Leach-Anderson conspired with another to defraud the Internal Revenue Service, an agency of the United States Department of Treasury, by obtaining and aiding to obtain payment or allowance of false, fictitious and fraudulent claims against the United States. Leach-Anderson and another person prepared or caused to be prepared and filed approximately 111 false, fictitious and fraudulent federal income tax returns wherein they claimed tax refunds totaling approximately $190,279.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Internal Revenue Service Criminal Investigation for the investigation leading to the successful prosecution of Leach-Anderson.
Chicago Man Sentenced to over 30 Years in Federal Prison for Distributing Heroin Resulting in Overdose DeathRead the Press Release
A Cedar Rapids man who sold heroin that caused a heroin overdose death was sentenced today to more than 30 years in federal prison.
Ramon Cortez Freeman, age 35, from Chicago, Illinois, received the prison term after a November 24, 2014 guilty plea to distribution of heroin resulting in death, three counts of distributing heroin, and being a felon in possession of a firearm and ammunition.
At the plea hearing, Freeman admitted he distributed heroin to another individual in January 2014 who used it and died of an overdose. Freeman also admitted to distributing heroin in February and twice in July. Officer Bryan Furman with the Cedar Rapids Police Department and DEA Task Force testified that the purity of heroin seized or purchased by DEA in eastern Iowa has substantially increased over the past five years. Officer Furman testified that, historically, heroin distributors have “cut” their heroin with other substances to increase the quantity and generate more profits. This “cutting” of the heroin resulted in heroin purities as low as 1% going to the ultimate users. In recent years, however, a new heroin business model has apparently emerged in Cedar Rapids, as heroin seized or purchased by DEA has been testing as high as nearly 90% pure—even for smaller quantities of the type being used by addicts. Because a common dosage unit for heroin is one-tenth of a gram or less—all of which is used at once—people using the extremely pure heroin are often unknowingly ingesting several times more of the drug than they intended. The increase in heroin purity has coincided with the increases in reported overdoses and deaths from heroin in eastern Iowa. Court documents reflect the heroin distributed by Freeman in February and July was determined to be around 70% pure.
In addition to the heroin charges, Freeman was sentenced for possessing a stolen .45 caliber pistol loaded with seven rounds of ammunition in April 2014. Freeman had previously been convicted of three drug felonies in Chicago, Illinois.
Freeman was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Freeman was sentenced to 365 months’ imprisonment on the death charge, 240 months’ imprisonment on the heroin distribution charges, and 120 months’ imprisonment on the firearm charge. The sentences were all ordered to be run concurrently. A special assessment of $500 was imposed, and he was ordered to make $9,782.84 in restitution to the family of the overdose victim. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Freeman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, Linn County Sheriff's Office, Cedar Rapids and Marion Police Departments, Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services, and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-100-1-LRR.
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California Man Charged in Stock Manipulation SchemeRead the Press Release
A criminal information has been filed in federal court charging Stephen J. Wilshinsky, 59, of Woodland Hills, California, and former stock broker with the Compass Group of Oppenheimer Inc. and Marquis Financial Services of Indiana, Inc. with one count of conspiracy to commit securities fraud, securities laws violations, and wire fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of FBI's Cleveland Office.
The information charges that on or about March 13, 2008, through in or around September 2012, Wilshinsky, together with at least three other co-conspirators, agreed to defraud investors and potential investors in public companies Kensington Leasing, Ltd. and Lenco Mobile, Inc.
They did this by issuing millions of shares to themselves at little or no cost and then artificially controlling the price and volume of traded shares by, among other means, paying undisclosed commissions to brokers and former brokers for directing client funds to make both authorized and unauthorized investments and fraudulently concealing the co-conspirators’ ownership interests in the manipulated public companies, according to the information.
The co-conspirators then profited by selling their shares of the companies' stock at artificially inflated prices to Wilshinsky’s clients at Oppenheimer and Marquis. Little or no portion of the investments went to fund the operations of the companies. Rather, Wilshinsky and his co-conspirators used the investments to enrich themselves, according to the information.
Wilshinsky received approximately $1.2 million in undisclosed cash commission payments and approximately 500,000 shares of stock from one or more co-conspirators as part of the scheme, which Wilshinsky then sold or transferred. In total, Wilshinsky received more than $1.4 million in cash and stock for participating in the conspiracy, according to the information.
The information was filed by Assistant U.S. Attorneys Christos N. Georgalis and Adam Hollingsworth after an investigation by agents of the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, Defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Buffalo Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. B U.S. Attorney William J. Hochul, Jr. announced today that George Torres, 53, of Buffalo N.Y., who was convicted of unlawfully possessing with intent to distribute more than 200 grams of heroin and possessing a firearm in furtherance of drug trafficking, was sentenced to 168 months in prison by U.S. District Judge Richard J. Arcara. The court also ordered the forfeiture of $368,270.00 in drug proceeds and three firearms.Assistant U.S. Attorney George C. Burgasser, who handled the sentencing, stated that on November 13, 2012, Buffalo Police and the FBI executed a search warrant at the defendant=s residence at 55 Garner Avenue in Buffalo. During the search, law enforcement officers seized over 200 grams of heroin, three handguns, and $368,000 in United States currency.
The sentencing is the culmination of an investigation by members of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, Special Agents of the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Bucks County Man Sentenced to Prison for Robbing McKeesport BankRead the Press Release
PITTSBURGH - A former resident of Morrisville, Pa., has been sentenced in federal court to 46 months on his conviction of bank robbery, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Christopher Gaspersz, age 24.
According to information presented to the court, on Nov. 26, 2013, Gaspersz robbed Huntington Bank located at 1415 5th Avenue, McKeesport, PA, of $3,807.00. After exiting the bank, Gaspersz led police on a foot chase and was ultimately apprehended. Subsequent to being taken into custody, Gaspersz confessed to four additional bank robberies, which are still under investigation.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the McKeesport Police Department for the investigation leading to the successful prosecution of Gaspersz.
Bridgeport Man Sentenced to 7 Years in Federal Prison for Role in Drug Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that OMAR BAHAMONDE, also known as “Dirk,” 30, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for trafficking narcotics in Bridgeport.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin and crack cocaine 24-hours a day, seven days a week. BAHAMONDE was Hanks’ trusted associate, purchasing bulk heroin for resale, spotting surveillance and helping Hanks cook powder cocaine into crack cocaine base for distribution.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition. One of the firearms was an assault-type rifle and four of the firearms were stolen.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging Hanks, BAHAMONDE and 12 other individuals with a variety of narcotics and firearms trafficking offenses.
BAHAMONDE has been detained since his arrest on December 5, 2013. On November 4, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
BAHAMONDE’s criminal history includes multiple felony convictions, including a conviction for first-degree robbery.
Hanks has pleaded guilty and awaits sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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(203) 821-3722 [email protected]Bakersfield Man Convicted of Attempting to Distribute Five Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today that Edwin Rigoberto Mayorga-Fajardo, 42, resident of Bakersfield, pleaded guilty yesterday to possession with attempt to distribute methamphetamine
According to court documents, on April 8, 2014, Mayorga-Fajardo attempted to distribute five pounds of methamphetamine to a government informant. When law enforcement officers attempted to stop the defendant’s vehicle he sped off and a high speed car chase ensued. While attempting to flee, the defendant was observed throwing packages of methamphetamine from the vehicle. Eventually the defendant was stopped and arrested and approximately four pounds of methamphetamine was recovered.
Mayorga-Fajardo is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on May 18, 2015 at 8:30 AM. Mayorga-Fajardo faces a maximum penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of the work of the Department of Homeland Security, the Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Altamont Man Pleads Guilty to Federal Drug ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Travis Cole Maxfield, 28, of Altamont, Illinois, pled guilty today to all charges against him in an indictment returned by a Federal Grand Jury in November 2014. All offenses relate to the production and distribution of methamphetamine. Specifically, Maxfield pled guilty to Conspiracy to Manufacture and Distribute Methamphetamine from October 2013 through May 2014 in St. Clair, Clinton, and Marion Counties (Count 1); Manufacture of Methamphetamine on February 26, 2014, in St. Clair County (Count 2); Distribution of Methamphetamine on March 5, 2014, in Marion County (Count 3); Possession of a Listed Chemical (Pseudoephedrine) Knowing or Having Reason to Know that It Would Be Used to Manufacture Methamphetamine (Counts 9 and 10). All offenses are violations of the federal Controlled Substances Act.
Count 1 carries a maximum penalty of not less than 5 years, up to 40 years in federal prison, a $5 million fine, and at least 4 years’ supervised release. Counts 2 and 3 carry a maximum penalty of 20 years in prison, a $1 million fine, and not less than 3 years’ supervised release. Counts 9 and 10 carry a maximum penalty of 20 years in prison, a $250,000 fine, and 3 years’ supervised release. All counts require an assessment of $100.
Information leading to the charges against Maxfield was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, the Centralia Police Department, Jefferson County Sheriff’s Department and the Mt. Vernon Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
Additional Charges Filed Against Doctor in Pill Mill CaseRead the Press Release
William J. O’Brien III, 49 of Philadelphia was charged today by Superseding Indictment with 23 additional counts of illegally distributing oxycodone, methadone, and amphetamines, all Schedule II controlled substances, outside the usual course of professional practice and for no legitimate medical purpose, announced United States Attorney Zane David Memeger. According to the superseding indictment, O’Brien’s so-called Apatients@ could for a fee obtain prescriptions for these addictive and dangerous controlled substances without a physical examination or any other medical care or treatment. O’Brien typically charged customers $250 cash for the first appointment to buy prescriptions and $200 for each appointment to obtain refills.
On January 29, 2015, an indictment was unsealed charging O’Brien, a doctor of osteopathic medicine, and Angela Rongione, with one count of conspiracy to distribute controlled substances. In the same indictment, O’Brien was charged separately with 26 counts of illegally distributing Oxycodone and Xanax, a Schedule IV controlled substance, for selling prescriptions for these narcotics to a government cooperator and an undercover FBI agent. The counts charged in the superseding indictment are for additional “patients” to whom O’Brien allegedly sold prescriptions.
If convicted, the defendants face substantial prison terms and fines, and are subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation, FDA Office of Criminal Investigations, and the Department of Health and Human Services - Office of the Inspector General, and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
25 Individuals Indicted for Drug Trafficking at Santa Catalina Public Housing Project in Yauco, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On February 19, 2015, a federal grand jury in the District of Puerto Rico returned an indictment against 25 defendants charged with conspiracy to possess with intent to distribute controlled substances in the municipality of Yauco, PR, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation, with the collaboration of the Puerto Rico Police Department, specially the Ponce Strike Force.
The 25 defendants are: José L. Colón-Paneto, aka “Walter;” José A. Colón-Paneto, aka “Jun;” Jonathan Vargas-Torres, aka “Johny;” Christian Vargas-Torres, aka “Chola;” Ricardo Camacho, aka “Ricardito;” John-John Maldonado-Paneto; Jesús Santiago-Bracero, aka “Jesus Payaso;” Carlos Manuel Pérez-Lugo, aka “Chiqui Moya;” Julio Alberto Millàn-Irizarry, aka “Berti;” Baldo Anthony Cancel-Pérez, aka “Anthony;” Fernando Pacheco-Ortiz, aka “Chinito;” Luis Alberto Figueroa-Pagàn, aka “Kiri;” Christian Xavier Torres-Rivera, aka “Pitito;” Wilson R. Satiago-Bracero, aka “Gordo Payaso;” Raymond L. Lamberty-Torres, aka “Lamberty;” John Paul Rivera-Santiago; Radamés Medina-Irizarry, aka “Rada;” Luis Gabriel Quiñones-Padilla, aka “Mona;” Manuel De Jesús-Castro, aka “Manolo;” Juan Ramón Flores-Colón, aka “Monchi;” Adela Paneto-Soto; Melvin Medina-Caraballo, aka “Melvito;” Prett Onell Santa-Torres, aka “Pre;” Alexis Javier Aponte-Negrón; and Daniel Rodríguez-Santiago, aka “Viejo Danny.”
The indictment alleges that beginning in 2007, the organization distributed heroin, crack, cocaine and marihuana within 1,000 feet of a real property comprising housing facility owned by a public housing authority, that is the Santa Catalina Public Housing Project and the Santa Catalina public school, all for financial gain and profit.The 25 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: three leaders/drug point owners/drug point administrators; three enforcers; five runners; and 14 sellers. Nine of the defendants are facing one count of possession of firearms, including “high power” rifles, in furtherance of drug trafficking crimes.
The defendants would have access to different types of vehicles in order to transport money, narcotics and firearms. These vehicles would often be used by some of the defendants and their co-conspirators to conduct drive by shootings and to “hunt” rival gang members. Some of the defendants built a “handmade” firearm that was remotely controlled with a beeper with the intention of shooting at rivals and law enforcement who entered the public housing project.
It was further a part of the manner and means of the conspiracy that the defendants and their co-conspirators established drug distribution points in different areas inside the housing project, for example: between buildings 6, 13, 23, 24, 25; the construction trailers, the basketball court and the community center.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods. These arrests will keep the law abiding citizens of Yauco safer from the inevitable violence that drug trafficking brings.”
“The Drug Enforcement Administration initiated Operation Sudden Impact, in conjunction with the Puerto Rico Police Department- Ponce Strike Force to address the present drug problem that has plagued communities in Puerto Rico. DEA will not allow these violent drug trafficking organizations to take control over the lives of innocent people who live in Santa Catalina Public Housing Project or any other communities,” said Vito Salvatore Guarino, Special Agent in Charge of the DEA Caribbean Division.
Special Assistant U.S. Attorney María L. Montañez-Concepción is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison.The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. This OCDETF investigation was led by the DEA High Intensity Drug Trafficking Area (HIDTA) Ponce Task Force.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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23 February 2015
Williston Man Sentenced for Possession of Firearms and Ammunition by a Convicted FelonRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Feb. 23, 2015, Gabriel Lazaro Garcia-Hernandez, a/k/a Gabriel L. Garcia, 54, Williston, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon and possession of a firearm with an obliterated serial number. Garcia was convicted on October 29, 2014, by a federal jury.
Judge Hovland sentenced Garcia to serve 15 years in federal prison, to be followed by three years of supervised release. Garcia was ordered to pay a $200 special assessment to the Crime Victim’s Fund.
On January 7, 2014, officers with the Northwest Narcotics Task Force executed a search warrant at Garcia-Hernandez’s residence in Williston, N.D. They found a small amount of marijuana, drug paraphernalia, five firearms and over 300 rounds of various brands and calibers of ammunition. One of the firearms, a .22 caliber rifle, had the serial number scratched off to the point it was illegible. The other four firearms were handguns.
Garcia-Hernandez was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including 1991 New Jersey convictions for aggravated assault and armed robbery, a 1995 Florida conviction for aggravated assault with a deadly weapon, and 2003 Florida convictions for armed robbery and kidnapping.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Northwest Narcotics Task Force, the Williams County Sheriff’s Office, the Williston Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney David Hagler prosecuted the case.
Wasilla Man Sentenced to 84 Months in Prison for Heroin Trafficking ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was sentenced by U.S. District Court Judge Sharon L. Gleason to serve 84 months in federal prison for his role in a heroin trafficking conspiracy.
James Gwaltney, 38, of Wasilla, Alaska, previously pled guilty to conspiring to distribute more than 1.6 kilograms of heroin throughout the Anchorage area. As part of his plea, Gwaltney admitted that in October 2013, he and co-defendant Baretta Faatafuga received an Express Mail package from California containing heroin that had been concealed inside a Sentry Safe. Both co-defendants intended to distribute the heroin to others.
Upon his release from prison, Gwaltney will remain under court supervision for five years, during which time he must complete 200 hours of community service. The sentence announced today took into consideration Gwaltney’s possession of both the heroin itself as well as drug packaging materials, a scale, multiple cell phones and laptop computers, as well as $5000 in cash. In sentencing Gwaltney, Judge Gleason noted the seriousness of Gwaltney’s offense and the dangers of both drugs and drug addiction.
Gwaltney’s co-defendant, Baretta Faatafuga, was previously sentenced by Judge Gleason to serve a term of 90 months in prison. In announcing Faatafuga’s sentence, Judge Gleason emphasized the dangerous and negative impact caused by bringing drugs into our community and noted that many families are destroyed by heroin. Together, the sentences of both men will protect the Anchorage community for years to come.
In announcing the sentence, U.S. Attorney Loeffler praised the United States Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, and the Alaska State Troopers who investigated the case.
U.S.Attorney Anne M. Tompkins Announces DepartureRead the Press Release
Law enforcement arrested 13 during early-morning round up; Law enforcement still looking for two defendants
CHARLOTTE, N.C. – Anne M. Tompkins, United States Attorney for the Western District of North Carolina (WDNC), announced today that she will stepping down as U.S. Attorney, effective midnight March 9, 2015. Upon Ms. Tompkins’ departure, Jill W. Rose will be Acting U.S. Attorney, until a permanent replacement is nominated and confirmed by the United States Senate.
“As United States Attorney for the Western District of North Carolina, Anne Tompkins has pursued the cause of justice with passion, with integrity, and with results,” said Attorney General Eric Holder. “In her outstanding work on matters involving health care and financial fraud, she helped safeguard the well-being of the American people and bring wrongdoers to justice. Through her service on the Attorney General’s Advisory Committee, she proved herself to be an indispensable advisor on a range of vital issues. And with her efforts to protect civil rights and combat human trafficking, she stood up for innumerable men, women, and children who are too frequently overlooked and too often underserved. Over the course of her extraordinary career, Anne has never lost sight of the most vulnerable in her own community, and has spearheaded trailblazing projects to engage young people in the work of building a more just society, from anti-bullying efforts to leadership development. Through her work at all levels, she has served as an inspiring example to public servants throughout the country – including me. And while I will miss her distinguished leadership and wise counsel, I look forward to all that she will achieve in the next stage of her already remarkable career.”
“It has been a great honor to serve the people of the Western District and I am grateful to President Obama for the opportunity,” said U.S. Attorney Tompkins. “For nearly five years, I’ve had the pleasure and the privilege of working with some of the brightest and most committed public servants. I have the utmost respect for their tireless dedication to the pursuit of justice. I am proud of our accomplishments and I am confident that the lawyers and staff of the Office will continue to work hard to protect the people of this district and deliver justice. ”
Ms. Tompkins was appointed by President Obama and confirmed by the U.S. Senate in April 2010. During her tenure, Ms. Tompkins’ office has prosecuted numerous financial fraud cases involving multi-million dollar investment schemes, securities fraud cases, and mortgage fraud conspiracies. Under Ms. Tompkins’ leadership, WDNC formed the District’s White Collar/Securities and Financial Fraud Group, which comprises federal and state law enforcement agencies and regulatory entities. This task force works in cooperation to identify potential fraud and move quickly to stop offenders and help victims of fraud.
U.S. Attorney Tompkins has also focused on combating health care fraud schemes and reducing the potential for health care fraud in the future. During her tenure, the Office created WDNC’s Health Care Fraud Task Force, a multi-agency team dedicated to identifying and prosecuting those who defraud public and private insurers, jeopardize the integrity of the health care system and waste taxpayer dollars. The Office has brought both criminal and civil fraud cases against individuals and corporations engaged in health care fraud against Medicare and Medicaid, and has recovered millions in restitution for the government-funded programs.
Ms. Tompkins has also focused on the protection of our vulnerable populations from exploitation and violence. In the past five years, the Office has prosecuted successfully numerous child predators and has secured restitution for known victims of child pornography. Also, under Ms. Tompkins’ leadership, the Office created the Charlotte Metropolitan Human Trafficking Task Force, which comprises law enforcement agencies, federal and state prosecutors and community organizations. The goal of the task force is two-fold: to identify cases for prosecution and to provide short and long-term support and assistance to victims of human trafficking. Working with the Task Force, WDNC has also organized annual training events aimed at raising awareness on the issue of human trafficking.
Protecting the integrity of government and public institutions from corruption has been another area of focus for Ms. Tompkins. Under Ms. Tompkins’ leadership, the Office has prosecuted a number of public corruption cases involving police officers and city employees, including the recent prosecution of Charlotte’s former mayor.
Under Ms. Tompkins’ leadership, WDNC was also selected to be a part of Attorney General Holder’s Residential Mortgage Backed Securities (RMBS) Working Group, tasked with investigating those responsible for misconduct contributing to the financial crisis through the pooling and sale of RMBS.
WDNC also continues to focus on community and local impact cases, conducting targeted enforcement actions in high-crime neighborhoods, particularly in response to violent gang activity, crime data, and community needs.
“During my tenure as U.S. Attorney, I have had the opportunity to work closely with our federal, state and local law enforcement partners on prosecutions and crime prevention and outreach initiatives. I extend my gratitude for each agency’s support, which will extend beyond my tenure, and I am thankful for the extraordinary service of the countless agents, officers and deputies who work hard to protect our communities and bring perpetrators to justice.”In addition to her supervision of the Office, in her role as U.S. Attorney, Ms. Tompkins has engaged in extensive community outreach efforts and crime prevention initiatives. A hallmark of Ms. Tompkins’ tenure has been her focus on youth engagement and crime prevention. Ms. Tompkins’ Office has partnered with Charlotte-Mecklenburg Schools (CMS), law enforcement and community groups to host a series of summits, titled “Engage,” that discuss various youth-related topics including anti-bullying, teen dating violence, leadership development, conflict resolution and race relations. Ms. Tompkins has also regularly participated in community-led events and has spoken on the issues of bullying, the importance of tolerance and positive conflict resolution.
“My position as U.S. Attorney has given me the opportunity to reach out to young people and empower them to effectuate change in their schools and their environments. Through the Engage Summits and our collaboration with CMS and a host of community organizations, we have delivered a powerful message, encouraging our youth to stand up, speak out and become catalysts for change by becoming leaders and positive role models to their peers. Our work would not be possible without the assistance of our community partners and the support of our citizen community. I am thankful for their ongoing collaboration and for partnering with the Office in support of our outreach efforts.”
During her tenure, Ms. Tompkins’ Office has organized events focusing on outreach, awareness, and training, in the areas human trafficking, gang prevention, focused deterrence, the Bank Secrecy Act, Project Safe Neighborhoods, domestic violence and prescription drugs. In addition, Ms. Tompkins has engaged in extensive outreach to the LGBT, Arab-Muslim and Sikh communities, and has met with leaders of numerous faith-based organizations.
In addition to serving as U.S. Attorney for WDNC, Ms. Tompkins served for over two years as an advisor to United States Attorney General Eric Holder by sitting on the Attorney General Advisory Committee (“AGAC”), advising the Attorney General on emerging policy management, and operational issues affecting the Department of Justice. “Serving on the AGAC has been a privilege and an opportunity to provide input on important issues to Department of Justice leadership, and to serve as a representative and an advocate for the U.S. Attorney community,” said Ms. Tompkins. Ms. Tompkins also served as co-chair of the AGAC’s Subcommittee on Civil Rights, and as a member of the Health Care Fraud, White Collar Crime, and Office Management and Budget Subcommittees.
Ms. Tompkins navigated the Office through significant challenges in her tenure, including hiring freezes, budgetary cuts and an unprecedented government shut-down. Despite the challenges, Ms. Tompkins’ Office has continued to handle high-volume cases while increasing the Office’s workforce with the addition of prosecutors and support staff.
The United States Attorney’s Office for the Western District of North Carolina includes 32 counties, half of the Great Smoky Mountains National Park and the Blue Ridge Parkway. The Pisgah and Nantahala National Forests cover over one million acres of our district. The largest Native American Community in the eastern half of the United States, the Eastern Band of Cherokee Indians, is in WDNC.
Two Phelps County People Sentenced on Federal Methamphetamine ChargesRead the Press Release
St. Louis, MO – JOHN D. STARKE; Rolla, Missouri, was sentenced today to 86 months in prison. Co-defendant CHRYSTAL J. STONE, also of Rolla, Missouri, was sentenced to 24 months in December, for their methamphetamine distribution activities, between October 2013 to May 2014, in Phelps County. They appeared before United States District Judge Audrey G. Fleissig.
This case was investigated by the South Central Drug Task Force. Assistant United States Attorney John Mantovani handled the case for the U.S. Attorney's Office.Two Men Who Provided Material Support to Terrorists and Plotted to Kill American Targets in Afghanistan Receive 25-Year Prison TermsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, Acting U.S Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge David Bowdich of the FBI's Los Angeles Field Office announced today that two men with ties to the Inland Empire region of California were each sentenced today to 300 months in federal prison for participating in plots to provide material support to terrorists and to kill American personnel.
The two men sentenced today by U.S. District Judge Virginia A. Phillips are Sohiel Omar Kabir, 37, a naturalized U.S. citizen who was born in Afghanistan and who until late 2011, resided in Pomona, California; and Ralph Deleon, 26, of Ontario, a lawful permanent resident and citizen of the Philippines.
Last summer, Kabir and Deleon were convicted by a federal jury for their role in a plot to travel overseas to fight against U.S. and allied forces in Afghanistan and elsewhere. Specifically, the jury convicted Kabir and Deleon of conspiring to provide material support to terrorists and conspiring to murder United States military and government personnel. The jury also found Kabir guilty of conspiring to provide material support to a designated foreign terrorist organization, namely Al-Qa’ida, and conspiring to receive military-type training from Al-Qa’ida. In addition, the jury convicted defendant Deleon of conspiring to murder, maim, or kindap overseas.
Two other defendants who were indicted in the case in 2012 – Miguel Alejandro Santana Vidriales and Arifeen David Gojali – previously pleaded guilty and are scheduled to be sentenced by Judge Phillips on March 16, 2015.
“This case demonstrates the need for vigilance and swift action to counter the false allure of violent extremism,” said U.S. Attorney Yonekura. “When confronted with young Americans who succumbed to the empty promises of violent extremism and sought to assist a terrorist group in killing American soldiers abroad, law enforcement acted swiftly to eliminate the threat.”
“The defendants betrayed the citizens of the United States by supporting terror and conspiring to murder military members serving overseas” said Assistant Director in Charge Bowdich. “The lengthy prison sentences handed to Mr. Kabir and Mr. DeLeon should send a clear message to those who support terror groups that the FBI and our partners are committed to preventing deadly plots hatched either at home or abroad targeting the United States.”
The evidence presented during last year’s trial showed Kabir introduced Deleon and Santana to radical Islamic ideology in 2010. Kabir left the United States in the final days of 2011, arriving in Afghanistan in July 2012. While in Afghanistan, Kabir continued to communicate with Deleon and others, encouraging them to join him in Afghanistan. Kabir told the group that he had contacts with terrorist organizations and that, when they arrived, he and the group would join “the Students” – referring to the Taliban – and later “the Professors” – referring to Al-Qa’ida.
Deleon, Kabir, and others involved in the plot were heavily influenced by the doctrine of now-deceased Al-Qa’ida in the Arabian Peninsula spokesman Anwar Al-Awlaki and other advocates of violent jihad, whose teachings they frequently invoked during their planning and preparation in this case.
In September 2012, Deleon recruited Gojali to join the plot to travel overseas to engage in violent jihad. As part of their planning and preparation, Deleon led Santana and Gojali in training activities in southern California, including participating in paintball activities and traveling to firearms ranges to fire AK-47s and other assault weapons, which they expected to use in future fighting.
The men made plans to rejoin Kabir, who had relocated to Kabul, Afghanistan. In effort to avoid detection by law enforcement, Deleon and the others planned to cross the border into Mexico by land and from there to travel to the Middle East by air. In November 2012, Deleon purchased airline tickets for the group. On Nov. 16, 2012, the FBI arrested Deleon, Santana, and Gojali as they departed a Chino apartment in a car driven by one of Deleon’s associates intending to drive to Mexico. Kabir was taken into custody by American military personnel in Afghanistan.
The investigation into this terrorism scheme was conducted by the Joint Terrorism Task Force (JTTF) in Riverside, California. The Riverside JTTF is comprised of members from the following agencies: Riverside County Sheriff’s Office; Riverside Police Department; San Bernardino Sheriff’s Department; Beaumont Police Department; Ontario Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the U.S. Attorney’s Office; and the FBI.
The case was prosecuted by Assistant U.S. Attorneys Allen W. Chiu, Christopher D. Grigg and Susan J. DeWitt of the Central District of California, and Trial Attorneys Annamartine Salick and Josh Parecki of the Justice Department’s National Security Division.