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19 February 2015
U.S. v. Sheldon Silver IndictmentRead the Press Release
US v. Sheldon Silver Indictment
U.S. District Court Rules that American Express Violated Antitrust LawsRead the Press Release
Attorney General Eric Holder today praised the decision by a judge in the United States District Court in the Eastern District of New York who found in favor of the Justice Department’s lawsuit claiming that American Express’ rules for merchants violate antitrust laws.
“Today’s decision is a triumph for fair competition and for American consumers,” said Attorney General Holder. “By recognizing that American Express’s rules harm competition, the court vindicates the promise of robust marketplaces that is enshrined in our antitrust laws. I salute the hardworking men and women who led the lengthy investigation and trial with uncommon skill and unwavering dedication. With this achievement, we are sending an unambiguous message that the Department of Justice is prepared to litigate any case, no matter how complex, in its pursuit of justice and protection for the American people.”
The United States Department of Justice and 17 state attorneys general sued American Express, Visa Inc. and MasterCard International Inc., in 2010 to eliminate restrictions that the three credit card networks imposed on merchants. Over the course of a seven week trial during the summer of 2014, the department argued that these restrictions obstruct merchants from using competition to try to keep credit card fees from increasing. The civil case, brought under Section 1 of the Sherman Antitrust Act, sought to end the violation and to restore competition.
The trial focused on credit card “swipe fees” which generate over $50 billion annually for credit card networks. Millions of merchants of all sizes and in scores of industries pay those fees. Despite these large fee revenues, the Justice Department argued that price competition over merchant swipe fees has been almost non-existent and for decades the credit card networks have not competed on price. Today’s decision was rendered by Judge Nicholas G. Garaufis.
“Merchants pay over $50 billion in credit card swipe fees each year. The department and the attorneys general of 17 states brought this case because competition over those fees was being suppressed,” said Deputy Assistant Attorney General for the Antitrust Division Leslie C. Overton. “The Court’s ruling establishes that the American Express anti-steering rules block merchants from using competition to keep credit card swipe fees down, which means higher costs to those merchants’ customers. I am proud of the outstanding work done by the investigative and trial teams. As today’s decision reaffirms, the Antitrust Division remains committed to ensuring that competition is not restricted in this important sector of the economy.”
Settlements with Visa and MasterCard were filed at the same time the case against American Express was begun; the settlements prohibit the two networks from continuing their rules and practices that had obstructed competition. The court approved the settlements on July 20, 2011, and they applied immediately to Visa and MasterCard. American Express was not a party to the settlements, and the litigation against American Express continued.
The department argued that the principal reason for an absence of price competition among credit card companies has been rules imposed by each of the networks that limit merchants’ ability to take advantage of a basic tool to keep prices competitive. That tool – commonly used elsewhere in the economy – is merchants’ freedom to “steer” transactions to a network willing to lower its price. Each network has long prohibited such steering to lower-cost cards. Now that Visa and MasterCard have reformed their anti-steering rules, American Express rules stood as the last barrier to competition.
At trial, an array of merchants came forward to explain both the substantial costs they incur when their customers pay with credit cards and their inability to ignite competition among the networks to reduce those costs. In fact, the rules not only prevent merchants from offering their customers lower prices or other incentives for choosing a less costly card, they even block merchants from providing consumers with truthful price information about the cost of swipe fees of different credit cards.
Examples, used as trial exhibits, of what the Amex rule prohibits can be found at http://www.justice.gov/atr/cases/amex/amex-te.html.
Closing arguments in the trial took place on Oct. 9, 2014. Craig Conrath was the lead trial attorney for the United States. The 17 plaintiff states were Arizona, Connecticut, Idaho, Illinois, Iowa, Maryland, Michigan, Missouri, Montana, Nebraska, New Hampshire, Ohio, Rhode Island, Tennessee, Texas, Utah and Vermont. The court also entered a scheduling order instructing the parties to submit, within 30 days, a joint proposed remedial order.
Two New York Men Sentenced for Trafficking HeroinRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that William Nelson, age 42, and Greg Bush, age 53, both of Brooklyn, New York were sentenced in federal court in Scranton on charges of trafficking in 100 grams or more of heroin.
United States District Court Judge Robert D. Mariani sentenced Nelson to 37 months imprisonment and Bush was sentenced to 60 months imprisonment. This case involved the prosecution of 8 defendants. Five have been previously sentenced. One went to trial, was convicted, and is awaiting sentencing.
According to the United States Attorney Peter Smith, both Nelson and Bush were part of an Indictment that was filed on October 16, 2012 in the Middle District of Pennsylvania. The Indictment charged that between September 2011 through May 2012, Nelson and Bush were involved in a conspiracy to distribute and possessed with intent to distribute 100 grams or more of heroin from New York to Scranton and Wilkes-Barre, Pennsylvania.
The prosecution arose from the efforts of a joint investigation conducted by the Drug Enforcement Agency in Scranton, the Lackawanna County District Attorney’s Office – Detective Division, the Pennsylvania State Police, as well as both the Scranton and Wilkes-Barre Police Departments. Assistant United States Attorney Michelle Olshefski prosecuted the case.
Two Indicted for Laser Strikes on Law Enforcement AircraftRead the Press Release
FRESNO, Calif. — A federal grand jury returned two indictments today against Jose Javier Rosas, 62, resident of Bakersfield, Calif., and Jeremy Scott Danielson, 34, of Clovis, Calif., charging them with crimes relating to laser strikes of law enforcement aircraft, United States Attorney Benjamin B. Wagner announced.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
Lasing of Kern County Sheriff Helicopter
Rosas was charged with aiming a laser pointer at Air-1, a Kern County Sheriff’s Office helicopter. According to court records, Air-1 was struck last month during the evening hours by a powerful green laser. As a result, the pilot experienced glare, flash blindness, significant loss of night vision, watering eyes, and eye pain and was forced to disengage from a robbery investigation.
Rosas was charged with the laser offense following an investigation conducted by the Federal Bureau of Investigation (FBI), Homeland Security Investigations of Immigration and Customs Enforcement, and Kern County Sheriff’s Office.
Lasing of CHP Aircraft
Danielson was charged with interfering with the safe operation of a California Highway Patrol (CHP) aircraft, Air 43, and aiming a laser pointer at it. According to court records, Air 43 was struck in August and September of last year by a powerful green laser pointer seized from Danielson. The second incident involved up to 23 laser strikes and occurred while Air 43 was taking off from the Fresno Yosemite International Airport during a critical phase of flight. As a result, the pilot and tactical flight officer suffered flash blindness and watering eyes.
The case was investigated by the FBI, CHP, Clovis and Fresno Police Departments.
Assistant U.S. Attorney Karen A. Escobar is prosecuting both cases.
Danielson is scheduled for arraignment on the indictment on February 23, 2015. Rosas is scheduled for arraignment on the indictment on February 27, 2015. They both face a maximum prison term of five years and a fine of up to $250,000, if convicted of aiming the beam of a laser pointer at an aircraft. Danielson faces an additional prison term of twenty years and a fine of up to $250,000, if convicted of interfering with the safe operation of an aircraft.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Two Hartford Men Charged with MurderRead the Press Release
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United States Attorney Deirdre M. Daly, Chief State’s Attorney Kevin T. Kane, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Hartford Police Chief James C. Rovella, today announced that JIMEL FRANK, also known as “30” and “Velly,” and KARL ROYE, also known as “Eagle,” have been charged with the April 2011 murder of Anthony Parker of Hartford.
This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA and Hartford Police Department into narcotics trafficking by members and associates of the WestHell and Team Grease street gangs and gang-related violent activity. Officers and inspectors from the Cold Case Unit of the Office of the Chief State’s Attorney are actively participating in the investigation.
At approximately 10:47 a.m. on the morning of April 6, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 15 Thomaston Street in the Blue Hills Section of Hartford. Officers responding to the scene located Anthony Parker, also known as “Smooth,” 24, seated in the driver’s seat of a vehicle in the driveway of 15 Thomaston Street. Parker was unconscious and suffering from multiple gunshot wounds. Parker was transported by ambulance to Saint Francis Hospital where he ultimately succumbed to his injuries and was pronounced deceased.
The complaint alleges that FRANK and ROYE conspired to engage in, and engaged in, a Violent Crime in Aid of Racketeering, namely the murder of Anthony Parker.
FRANK, 27, of Hartford, was arrested today. He appeared before U.S. Magistrate Judge Thomas P. Smith in Hartford and is detained.
ROYE, 24, formerly of Hartford, has been detained since September 2013 on an unrelated offense and currently is in the custody of the Federal Bureau of Prisons.
If convicted of the charges, each defendant faces a maximum term of imprisonment of life, or death if the government seeks the death penalty in this matter.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Chief State’s Attorney Kane noted that the unsolved homicide of Anthony “Smooth” Parker was included in cold case playing cards sold to inmates in Connecticut’s state correctional facilities. Each card in the deck features a photograph and brief details about a homicide or missing person case and lists telephone, mail and e-mail contacts that inmates can use to supply information.
This ongoing investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA, Hartford Police Department and Cold Case Unit of the Office of the Chief State’s Attorney. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed, and Supervisory Assistant State’s Attorney Patrick Griffin, who has been cross-designated as Special Assistant U.S. Attorney in this matter.
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(203) 821-3722 [email protected]Three Arrested on Charges of Conspiracy to Distribute HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kron Lewis a.k.a. Keon Lewis, 27, of Trinidad and Tobago, Joseph Lupien, 33, of Barre, VT and Matthew Bennett, 20, of Barre, VT, made initial appearances today in the United States District Court in Burlington, following their arrests for conspiracy to distribute heroin. U.S. Magistrate Judge John M. Conroy detained Lewis pending trial and there is a detention hearing for Lupien scheduled for February 23, 2015. Bennett was released on conditions.
According to court documents, on February 18, 2015, a Vermont State Police trooper conducted a motor vehicle stop on I-89 in Sharon, VT of a vehicle occupied by Bennett, Lupien, Lewis and a female. Lupien gave the trooper permission to search the vehicle and inside a bag in the trunk of the car, troopers found approximately 3050 individual bags of heroin and 16.9 grams of bulk heroin. Bennett and Lupien told law enforcement that they had just picked up Lewis and the female at the bus stop in White River Junction and that the bag containing the heroin belonged to Lewis. Both also said that they knew Lewis was bringing heroin to Vermont on the bus and that they had given Lewis a ride from the bus station on several other occasions. Bennett and Lupien said that they were paid in heroin and/or cash for helping Lewis.
The Acting United States Attorney, Eugenia A.P. Cowles, emphasized that the charge against Lewis, Lupien and Bennett is merely an accusation and that the defendants are presumed innocent unless and until they are proven guilty.
If convicted, the defendants face up to twenty years of imprisonment and a fine of up to $1,000,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Lewis is represented by David Watts, Esq. Lupien is represented by Michael Desautels, Esq. Bennett is represented by Elizabeth Mann, Esq. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Thirty-Nine People Indicted in Massive Drug Trafficking ConspiracyRead the Press Release
Thirty-four Florida residents were arrested in a drug trafficking conspiracy. A total of 39 individuals were charged, five individuals remain at large
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff?s Office, Miami Field Office, made the announcement.
Charged in the indictment are Samuel David Alvarado, a/k/a “Wham,” 35, of Lake Worth, Stephen Carl Alveranga, a/k/a “Stevo,” 39, of West Palm Beach, Armand Edward Armstrong, 30, of Lake Worth, Robert Benjamin Brewster, a/k/a “Benji,” 33, of West Palm Beach, Devier Calvo-Borrego, 26, of West Palm Beach, Jamie Neil Capalbo, 33, of Loxahatchee, Nicholas William Capparelli, a/k/a “Cap,” 27, of Lake Worth, Herve Fils Viaud, a/k/a “V,” 23, of West Palm Beach, Fidel Fragoso, a/k/a Fidel F. Ojito, 62, of West Palm Beach, Julio Angel Garcia, a/k/a “Peanut,” 24, of West Palm Beach, Tavaris Sherrod Hayes, 30, of West Palm Beach, Baron Waldo Henderson, 38, of West Palm Beach, Sam Henricy, a/k/a “Tukan,” 32, of West Palm Beach, Lavaress Jayvon Hopkins, 25, of West Palm Beach, Rones Jean Paul, 29, of Boynton Beach, Walson Tony Joseph, 38, of Lake Worth, Justin Patrick Landfried, 23, of Royal Palm Beach, Steven Joseph Leal, a/k/a “Pep,” 35, of Lake Worth, Eric Ramon Machado-Orama a/k/a “E,” 35, of West Palm Beach, Victoria Lynn McGinnis, a/k/a “Picky Vicky,” 56, of Palm Springs, Pedro Nel Mejia, Jr. a/k/a “Dro,” 26, of West Palm Beach, Andrew Carl Melchert, 32, of West Palm Beach, Joseph Michaud, 31, of West Palm Beach, Joseph Michael O'Connor, a/k/a “Jit,” 23, of West Palm Beach, Neil R. Puterbaugh, Jr., 41, of Greenacres, Vincent Ronald Ranallo, a/k/a “Vinnie,” 48, of Lake Worth, Todd John Reynolds, 44, of West Palm Beach, Jean A. Saint Louis, Jr., 27, of Lake Worth, Adolfo Rico Sanchez, a/k/a “Primo,” 30, of Lantana, Jacob Lee Skelly, 37, of Port Saint Lucie, Teddy Roosevelt Sims, 37, of West Palm Beach, Tyrone Isiah Thomas, 22, of West Palm Beach, Fabian Josue Vallejo, a/k/a “Fabo,” 24, of Greenacres, Eliezet Andres Velazquez, a/k/a “Tete,” 22, of Lake Worth, David Dieudonne Vilmont, a/k/a “Dai Dai,” “Zona,” 26, of West Palm Beach, Omar Veloz, Jr. a/k/a “O,” 25, of West Palm Beach, Alexander Handel Webster, Jr. a/k/a “X,” 30, of Lake Worth, Sherman Eugene Weeks, Sr., 41, of West Palm Beach, and James Alvin Wright, 29, of West Palm Beach.
Capalbo, Henderson, Henricy, Joseph, Landfried, Wright and Veloz were also charged with firearms-related offenses.
Earlier this morning, each of the individuals arrested appeared before U.S. Magistrate Judge William Matthewman for their initial appearances. Alvarado, Garcia, Ranallo, Thomas and Vallejo remain at large.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the FBI, ATF and the Palm Beach County Sheriff?s Office. This case is being prosecuted by Assistant U.S. Attorneys Rinku Tribuiani and Robert Waters.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Jersey Man Faces Criminal Charges for Shooting at Pilot Whales with World War II-Era RifleRead the Press Release
NEWARK, N.J. - A Cape May, New Jersey, man surrendered to U.S. Marshals today for shooting at pilot whales off the New Jersey coast, U.S. Attorney Paul J. Fishman announced.
Daniel Archibald, 27, is charged by complaint with one count of violating the Marine Mammal Protection Act. He appeared this afternoon in Newark federal court before U.S. Magistrate Judge James B. Clark III in Newark federal court. He was released on $10,000 unsecured bond, with travel restricted to the United States, except for fishing in international waters. He is required to surrender all firearms and firearms purchaser identification cards and is prohibited from using or possessing a firearm on land or sea.
According to the complaint unsealed today:
Archibald, a tuna fisherman, allegedly shot at pilot whales while aboard the fishing vessel “Capt Bob.” Pilot whales are protected under the Marine Mammal Protection Act of 1972, a statute that prohibits the hunting, killing, capture or harassment of any marine mammal. Harassment under the statute includes any act of pursuit, torment or annoyance that has the potential to injure a marine mammal in the wild.
On Sept. 24, 2011, an 11-foot, 740-pound pilot whale beached itself in Allenhurst, New Jersey, and died shortly thereafter. A necropsy uncovered a .30 caliber bullet lodged in the whale’s jaw. The bullet wound triggered an extensive infection that caused the whale to starve to death a month later.
Review of the Capt Bob’s vessel monitoring system confirmed that it was in New Jersey fishing waters for much of August 2011, the approximate time that the whale was shot. Also, nearly a month before the pilot whale washed ashore, defendant Archibald posted a Facebook photograph of a tuna head on a hook with the caption “thanks a lot pilot whales.”
Special agents eventually searched the Capt Bob and found a Mosin-Nagant, a World War II rifle that has not been manufactured in several decades. Forensic analysis revealed that the bullet found in the whale was similar in all general rifling characteristics to test bullets fired from Archibald’s rifle. When interviewed by special agents, Archibald admitted that he had “spray[ed]” bullets at pilot whales in an effort to chase them away.
The violation charged carries a maximum penalty of one year in prison and a statutory maximum fine of $100,000 or twice the gross gain or loss resulting from the offense.
U.S. Attorney Fishman credited special agents of the National Oceanic and Atmospheric Administration, Office of Law Enforcement, under the direction of Assistant Special Agent in Charge Jeffrey Ray, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Justin Herring of the U.S. Attorney’s Office General Crimes Unit, and Assistant U.S. Attorney Kathleen P. O’Leary of the Health Care and Government Fraud Unit, in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: William H. Hughes Esq., Atlantic City, N.J.
Settlement Reached in Medicare Fraud Lawsuit Against Catoosa Doctor and Owner of Vision and Eye Care Medical Diagnostic and Laser Center Inc.Read the Press Release
TULSA, Okla.— Robert Charles Duke and his Catoosa business, Vision and Eye Care Medical Diagnostic and Laser Center, Inc., have agreed to pay a total of $150,000 to settle allegations of submitting false Medicare and Medicaid claims to the United States and the State of Oklahoma.
The announcement was made by United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma, Attorney General Scott E. Pruitt for the State of Oklahoma, and Special Agent in Charge Mike Fields for the United States Department of Health and Human Services Office of Inspector General, Dallas Region.
“This settlement demonstrates the U.S. Attorney’s Office’s steadfast commitment to combatting health care fraud and abuse. Along with our partners we will take swift action to investigate and prosecute violators and those who abuse the system,” said U.S. Attorney Williams. “We are dedicated to protecting taxpayer money and to ensuring Medicare and Medicaid programs are available to those who need them.”
“Stopping Medicaid fraud is a priority for the Attorney General’s Office and we appreciate our federal law enforcement partners for working with us to take action against a provider who tried to abuse the system. Preventing Medicaid fraud stops misuse of taxpayer dollars but also ensures the program resources are available to help those who need it,” said Attorney General Pruitt.
“When health care providers try to boost their profits by misrepresenting the services they bill to taxpayer-funded health care programs, our agency will make sure they are held accountable for their deceptive schemes,” said SAC Fields.
A civil complaint filed on July 28, 2014, alleged that Duke, 63, of Claremore, Oklahoma, and the Catoosa business had violated the Oklahoma Medicaid False Claims Act and the common law for unjust enrichment and breach of contract.
The lawsuit alleged that, from January 2005 to July 2014, Duke received $1,343,732.36 in Medicaid and Medicare payments after submitting false and inflated patient billings. It further alleged that Duke knowingly and wrongfully coded medical service charges to Medicare. The bills submitted to Medicare did not comply with regulations such that the documentation was incomplete and insufficient according to the allegations.
During 2006 through early 2010, Duke allegedly billed Medicare in excess of 12 hours per day on 387 occasions; 124 of those occasions were in excess of 24 hours per day. In one instance, it was alleged Duke billed for 68 hours for one day.
From 2005 to 2007, Duke allegedly submitted 422 bills claiming services were provided at the doctor’s office, at a higher reimbursement rate, when in fact, the services were performed at nursing homes. In addition, from 2008 to 2010, Duke allegedly wrongfully billed Medicaid in excess of 12 hours per day on 96 occasions.
According to the settlement agreement, Duke denied liability of wrongdoing.
The U.S. Department of Health and Human Services administers the Medicare program and the Oklahoma Health Care Authority administers the Medicaid Program for eligible lower income citizens. The Medicare Program is funded by the U.S. Federal government and the Medicaid Program is funded by both the U.S. Federal government and the State of Oklahoma.
Under the False Claims Act, Duke could have been liable to the United States for civil penalties for each claim plus three times the amount of actual damages that the United States sustained as a result of the false claims.
The case was a joint investigation by the Department of Health & Human Services – Office of Investigations and the Oklahoma Attorney General’s Medicaid Fraud Control Unit; Assistant U.S. Attorney Marianne Hardcastle for the Northern District of Oklahoma and Assistant Attorney General Niki S. Batt for the State of Oklahoma handled the case.
For more information on Medicare fraud, visit the website at www.stopmedicarefraud.gov. To report Medicare Fraud, call 1(800) 447-8477.
(U.S. vs. Robert Charles Duke )
Sentencings for February 12-19, 2015Read the Press Release
Clyde Preston Schmidt, 39, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 19, 2015, for possession of child pornography. Schmidt was arrested in Cheyenne, Wyoming. He received 66 months imprisonment, to be followed by 10 years of supervised release, and was ordered to pay an $800.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Christopher Lawrence Haynes, 36, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 17, 2015, for conspiracy to possess with intent to distribute, and to distribute methamphetamine, heroin and marijuana. Haynes was arrested in Sheridan, Wyoming. He received 60 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Tanisha Valero, 43, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 17, 2015, for possession with intent to distribute 50 grams or more of methamphetamine. Valero was arrested in Cheyenne, Wyoming. She received 108 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
John Pryor Nunn, 34, of Torrington, Wyoming, was sentenced by Federal District Court Judge
Alan B. Johnson on February 13, 2015, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of methamphetamine and marijuana. Nunn was arrested in Torrington, Wyoming. He received 240 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.Brian David Carpenter, 34, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 12, 2015, for conspiracy to possess with intent to distribute, and to distribute methamphetamine, heroin and marijuana. Carpenter was arrested in
Sheridan, Wyoming. He received 119 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.San Antonio Businessman Sentenced for V.A. Fraud SchemeRead the Press Release
In San Antonio today, 71-year-old Jonathan Patrick Saunders, President of Saunders MEP, Inc., was sentenced to one year and one day in federal prison followed by three years of supervised release and ordered to pay $1,494,000 restitution for defrauding the Department of Veterans Administration (VA) in connection with architectural and engineering contracts announced Acting United States Attorney Richard L. Durbin, Jr.
On January 6, 2015, Saunders pleaded guilty to one count of wire fraud. By pleading guilty, Saunders admitted that over a period of five years beginning in March 2008, he knowingly provided fraudulent information to the VA in order to obtain up to $2 million in task orders from the VA for projects to be performed in and around San Antonio.
Today, United States District Judge Orlando Garcia found that Saunders made false representations to the VA. In his SF-330 “Architect-Engineer Qualifications” package, Saunders falsely represented that his business qualified as a Service Disabled Veteran Owned Small Business, that certain persons with particular qualifications worked for his firm, and that certain projects were completed by his firm. Saunders used interstate wires to execute his fraud scheme.
This case was investigated by agents with the Office of Inspector Generals from the VA and the Small Business Administration. Assistant United States Attorney Thomas P. Moore prosecuted this case on behalf of the Government.
Rutland Man and Boarding House Resident Faces Federal Charge for Crack Cocaine DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael Petruccelli, 49, of Rutland, Vermont has been charged with distributing crack cocaine in Rutland, Vermont in a two-count indictment returned on February 4, 2015. Petruccelli pled not guilty before U.S. Magistrate Judge John Conroy to the charges against him. Judge Conroy ordered that Petruccelli be detained pending trial in light of Petruccelli’s prior criminal record and drug addiction issues.
According to the government allegations, Petruccelli resides at the boarding house at 24 Cottage Street in Rutland, which is owned by his parents. According to the government’s detention motion, the government alleges that in November 2014, an FBI Special Agent warned Petruccelli to stop selling drugs or he would be arrested. Petruccelli is now charged with committing crack cocaine distribution crimes both before and after this warning from the FBI.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Petruccelli is convicted, he faces a maximum possible term of imprisonment of twenty years.
The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Petruccelli is represented by Thomas Sherrer, Esq. The investigation was conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, and the Drug Enforcement Administration.
Richford Vermont Man Sentenced in Cross-border Marijuana Trafficking ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont has stated that Jeffrey Donna, 39, of Richford, Vermont has been sentenced to prison for his role in a cross-border marijuana trafficking conspiracy. In August 2014, Donna was convicted of conspiracy to distribute marijuana. As part of his sentence, Donna has forfeited a second home in Florida, a second Florida property, a Richford, Vermont rental property, a Harley Davidson motorcycle, a Polaris ATV, a Cadillac Escalade, twenty-two guns, and $135,000 in drug money. Donna will begin serving his 32 month sentence in March.
Donna, and his co-conspirator, Roy “Opie” McAllister II, have been described as kingpins in a marijuana trafficking business that began in the mid-2000s and continued until the two were arrested on May 29, 2013. The two defendants were responsible for bringing bulk quantities of marijuana across the Canadian border into northern Vermont for several years. According to the evidence of record, Donna and McAllister moved between 1,000 and 3,000 kilograms of marijuana as part of the conspiracy. The marijuana trafficking has been characterized as a for-profit enterprise, in which Donna and McAllister made lavish expenditures using drug proceeds.
McAllister, 39, of Montgomery, Vermont is facing sentencing on March 19, 2015. McAllister has been convicted of conspiracy to distribute marijuana and filing false tax returns in 2010 and 2011. To date, he has been ordered to forfeit a home heating oil delivery truck used by McAllister Fuels, 115 Troy Street, Montgomery, Vermont, which the government alleged was bought with McAllister’s drug proceeds. He has also been ordered to forfeit 34 guns, two Harley Davidson motorcycles, a Polaris ATV, a Chevy Tahoe, and a Ford F-150 Harley Davidson edition pick-up truck. Forfeiture against his residence, 2404 Regan Road, Montgomery, Vermont, jewelry, and a GMC Yukon are pending.
As part of the marijuana trafficking conspiracy, the two defendants were assisted by Jesse Soule, 48, also of Montgomery, Vermont. Soule was convicted in January 2014 of his role in the marijuana trafficking conspiracy. According to court records, Soule participated in the conspiracy by storing bulk marijuana on his farm. Soule is currently in jail serving a 13 month sentence. He has forfeited $250,000 in drug proceeds to the government and a Polaris ATV.
Kirt Westcom, 48, of Fairfield, Vermont, also has been convicted of conspiracy to distribute marijuana. He received bulk marijuana from Donna and McAllister at his farm on 262 Egypt Road, Fairfield, Vermont for several years. Westcom is currently in jail serving a 24 month sentence. Westcom has forfeited $135,000 to the government, as well as a Harley Davidson motorcycle, and a Ford F-350 pick-up truck.Seven other individuals have pleaded guilty to federal crimes arising out of this drug enforcement action in Franklin County, Vermont. They are Jeffrey Baisley, 32, of Richford, Vermont, Jeffrey Tatro, Jr., 28, of Richford, Vermont, Robert Patterson, 55, of Richford, Vermont, Jonathan Palermo, 29, of Essex, Vermont, and Benjamin Pratt, 32, of Colchester, Vermont, who all have been convicted of conspiracy to distribute marijuana. Eric Jette, 32, of Enosburg, Vermont and Johnthan Aldrich, 34, of Richford, Vermont also have been convicted of federal drug charges.
As part of this federal law enforcement action, over $600,000 in cash, three pieces of real property, more than 70 guns, and seventeen vehicles have been forfeited.
The United States Attorney’s Office would like to thank the United States Border Patrol, the Franklin County Sheriff’s Office, and the Drug Enforcement Administration for their work in conducting this investigation. This investigation was also assisted by the United States Internal Revenue Service and the Bureau of Alcohol, Tobacco and Firearms.
The United States was represented by Assistant U.S. Attorney Heather Ross. Jeffrey Donna was represented by John Pacht, Hoff Curtis. Roy McAllister II is represented by Peter Langrock, Langrock Sperry & Wool. Jesse Soule was represented by Paul Volk, Blodgett, Watts, Volk & Sussman. Kirt Westcom was represented by Katina Francis Ready, Esq.
Rabbi Pleads Guilty to Voyeurism Charges, Admits Secretly Taking Video Recordings of Dozens of WomenRead the Press Release
U.S. Attorney Ronald C. Machen Jr. of the District of Colombia and Chief Cathy L. Lanier of the Metropolitan Police Department announced that Bernard Freundel, a rabbi who had worked for a Jewish congregation in Washington, D.C., pleaded guilty today to 52 counts of voyeurism stemming from a series of incidents between 2009 and 2014 in which he secretly took video recordings of women preparing for a Jewish ritual bath.
Freundel, 63, of Washington, D.C., pleaded guilty to the misdemeanor charges before the honorable Senior Judge Geoffrey M. Alprin in the superior court of the District of Columbia. Each count carries a maximum sentence of a year of incarceration, a fine of up to $1,000 or $2,500, for the offenses which occurred on or after June 11, 2013, or both. Freundel faces a maximum of 52 years in prison and the potential fines when he is sentenced on May 15, 2015.
“Bernard Freundel exploited his position of power to victimize dozens of women who entered a sacred, intimate space of religious ritual,” said U.S. Attorney Machen. “He betrayed the trust of every woman whose private moments he caught on camera along with an entire community that counted on him for moral leadership. We hope that this guilty plea will allow each of his victims to move forward and heal. We will be seeking a prison sentence that reflects the gravity of this disturbing assault on the privacy and dignity of so many victims.”
“This predator committed an outrageous breach of trust,” said Chief Lanier. “He must be punished for abusing his position to deliberately and repeatedly violate women’s privacy. My heart goes out to the victims and all members of the community who have been deeply wounded by this criminal’s actions.”
According to a factual proffer submitted at today’s plea hearing, between early 2009 and October 2014, Freundel was the sole Rabbi of Kesher Israel congregation in Northwest Washington. Kesher Israel is adjacent to the National Capital Mikvah, a Jewish ritual bath. A mikvah is used primarily by Orthodox Jewish women for monthly spiritual purification and by other individuals as the final step in the Orthodox Jewish conversion process.
The National Capital Mikvah has two changing/showering rooms connected to the room with the ritual bath. On numerous occasions between early 2009 and October 2014, the defendant installed and maintained electronic recording devices in the larger of the two changing/showering rooms. Freundel did so for the sole purpose of secretly and surreptitiously recording women who were using the bathroom and shower; these women were totally and partially undressed before and/or after showering. The women recorded did not know they were being recorded and did not consent to being recorded.
On Oct. 12, 2014, Freundel entered the larger changing/showering room with a clock radio that contained a hidden recording device. He placed the clock radio on the countertop of the sink and positioned the recording element so that it faced the shower area. He then left the changing area. Shortly thereafter, the clock radio was taken by an individual associated with the Mikvah, who immediately turned it over to the Metropolitan Police Department, leading to an investigation.
Freundel was arrested on Oct. 14, 2014. Law enforcement executed search warrants to examine the contents of the clock radio and to seek evidence at Freundel’s home and office at Towson University. Computer forensic examinations of all of the electronic devices and digital media storage devices seized from the defendant’s home and office revealed recordings made by the defendant of at least 52 women who were totally or partially undressed in the large showering/changing room of the Mikvah on a total of 25 different dates between March 4, 2012 and Sept. 19, 2014. These are the women who are the subjects of the charges to which Freundel pled guilty today. The charge of voyeurism has a three-year statute of limitations.
In addition to the 52 recordings that were the subject of the plea, computer forensic examinations revealed that Freundel secretly and surreptitiously recorded approximately 100 additional women totally or partially undressed before and/or after showering in the large bathroom at the National Capital Mikvah between 2009 and September 2014. These women did not know that they were being recorded and did not consent to being recorded.
In announcing the plea, U.S. Attorney Machen and Chief Lanier commended the work of those who investigated the case for the Metropolitan Police Department, including officers and detectives of the second police district. They also recognized the assistance provided by the Towson University Police Department. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Chief Jelahn Stewart of the Victim/Witness Assistance Unit, Deputy Chief Sharon Marcus-Kurn of the Sex Offense and Domestic Violence Section, Lead Paralegal Specialist Wanda Trice, Victim/Witness Advocate Lezlie Richardson, Victim/Witness Advocate Supervisor Dr. Lorraine Chase and Criminal Investigator John Marsh.
Finally they expressed appreciation for the work of Assistant U.S. Attorneys Amy H. Zubrensky and Rebekah Holman, who investigated and prosecuted the case.
Prison Sentence Imposed on $15.5 Million Dollar Psychic SwindlerRead the Press Release
PORTLAND, Ore. – U.S. District Court Judge Robert E. Jones today sentenced Rachel Lee, 44 of Canby, Oregon, to 100 months in prison for her lead role in a conspiracy to commit wire fraud, money laundering, and her failure to file personal income taxes. Judge Jones also ordered Lee to pay $15,490,978.65 in restitution to the victim. In addition to the prison sentence, she must serve three years of post-prison supervised release.
“Fueled by greed and a complicated web of deceit, Rachel Lee gained control of her victim, liquidated his fortune, and left him nearly penniless,” said United States Attorney Amanda Marshall. “Due to the combined efforts of federal, state, and local law enforcement, the victim is now safe and financially stable. We will continue to work tirelessly with our law enforcement partners to hold self-serving crooks accountable, protect victims, and seek full restitution.”
According to documents filed with the court, the victim met Lee in 2004 when he visited her Psychic Shop in Bend, Oregon. Between 2004 and 2006, Lee fostered a friendship with the victim for the purpose of extracting money from him and falsely claimed that she provided care for her dying husband. She also falsely claimed that she assisted with bookkeeping for her husband’s business. As a result of these lies and the trust she established with the victim, Lee assumed the role as a paid caregiver to the victim’s elderly father by 2007. Trusting her to act in his best interests, the victim turned over all personal and business account control to Lee. While controlling the victim’s finances, Lee and her family lived in a million-dollar home in the Portland West Hills purchased with the victim’s money.
As part of the fraud scheme, Rachel Lee recruited members of her family to play key roles in carrying out the deception. She and her daughter, Porsha Lee, created a fake persona named Mary Marks and introduced this character to the victim. This character wore a blond wig, glasses, a hat, and sported a British accent. Porsha Lee, as Mary Marks, met the victim and used information her mother provided her to connect with him. She claimed to be a bookkeeper, and soon after began assisting Rachel Lee with the management of the victim’s accounts.
By 2011 the victim believed he and Mary Marks had married and had a child. The child presented to the victim as his son is actually one of Rachel Lee’s grandchildren. Digital images reveal years of holidays, birthdays and events with the victim, Rachel Lee, Porsha Lee as Marks, and their purported child.
Between 2007 and 2011, Rachel Lee directed the victim to incrementally liquidate investment accounts totaling approximately $3.8 million dollars. After depleting the victim’s investment accounts, Rachel Lee convinced the victim he owed substantial taxes and needed to sell his family’s tree farm. At Lee’s direction, the tree farm properties were sold for approximately $12.3 million dollars.
Rachel Lee and her family spent the victim’s fortune on a luxury lifestyle. Lee directed funds for high-roller trips to Las Vegas, trips to California, and a first class trip to Europe. She also spent her ill-gotten gains on luxury clothing and jewelry, including a $64,000 Rolex watch. While selling off the victim’s property, Rachel Lee and her co-defendant, Blancey Lee, purchased a Ferrari and a Bentley on a single day. Finally, between 2010 and 2013, Lee and her co-defendants used the victim’s money to purchase at least 10 properties at a cost of approximately $3.3 million dollars. She and her family used three of the properties – in Bend, Canby, and Scappoose – as Psychic Shops.
By the time of Rachel Lee’s arrest in May 2014, the victim held less than $250,000 in assets under his control. As a result of the investigation, the 10 properties purchased with the victim’s money will be sold for the victim’s benefit. Internal Revenue Service criminal agents seized approximately $1.9 million in cash from bank accounts in the name of Rachel Lee, as well as the Ferrari, the Bentley, and other items. All federally seized assets will be returned to the victim after all defendants are sentenced. Co-defendants Porsha Lee and Blancey Lee are scheduled for sentencing in April.
“This is a heartbreaking crime,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “The level of deceit that Rachel Lee and her family resorted to is almost unconscionable. I am proud our agents could work alongside our law enforcement partners to dismantle this scam.”
“This investigation is an example of outstanding achievement in respect to the investigative efforts by the Canby Police Department, the U.S. Attorney’s Office, and the Internal Revenue Service,” said Canby Police Chief Bret Smith. “This was a complicated investigation requiring expertise and patience from everyone involved in order to bring it to a successful resolution.”
The case was investigated by the Internal Revenue Service, Criminal Investigations and the Canby Police Department, with assistance from the Social Security Administration, Office of Inspector General; the Multnomah County Sheriff’s Office; Portland Police Bureau; and the Oregon Department of Justice. The case is being prosecuted by Assistant U.S. Attorneys Donna Maddux and AnneMarie Sgarlata.
Portland City Council Votes to Join the JTTFRead the Press Release
PORTLAND, Ore. – On Thursday, February 19, 2015, the Portland City Council voted 3-2 to assign two Portland Police Bureau (PPB) officers to the Joint Terrorism Task Force. Mayor Charlie Hales joined Commissioners Dan Saltzman and Nick Fish in voting to allow PPB officers to participate in the JTTF. PPB officers will join other regional law enforcement partners involved in the JTTF.
U.S. Attorney Amanda Marshall joins in applauding the vote of the Portland City Council to rejoin the JTTF. “Our thanks to the leadership of Mayor Hales, Commissioner Dan Saltzman, and Commissioner Nick Fish in taking this historic step to work with other regional law enforcement partners to ensure the public safety of the citizens of Portland and the surrounding communities. Law enforcement in this era is dependent upon effective and committed partnerships. The involvement of PPB with their federal and regional law enforcement partners is a crucial component for effective investigative activities, critical oversight of the investigations, and will improve the transparency of the JTTF partners. PPB’s involvement provides community-based assistance with detection, prevention, as well as timeliness in responding and apprehending suspects in the event of an act of terrorism. Combined with the community outreach efforts of the Department of Justice and the FBI to counter violent extremism at the local, national, and international levels, we are committed to work together with the City of Portland to ensure public safety and protect civil liberties.”
Greg Bretzing, Special Agent in Charge of the FBI Oregon stated that, “We work day in and day out with Portland Police on many different levels – from the street to the chief’s office. Together, we address crime problems that affect the people who live and work in Portland: gang crimes, drug trafficking, child sex trafficking, child predators and more. “Today’s vote to allow Portland Police Bureau to rejoin the JTTF will serve to strengthen that relationship in a critical area – preventing acts of terrorism. It is our mission to keep our shared community safe while at the same time protecting the freedoms we all enjoy in this country.”
"The 104 FBI led Joint Terrorism Task Forces (JTTF) around the nation are staffed with federal, state and local law enforcement professionals who share the common goal of protecting our national security and public safety," said John Carlin, Assistant Attorney General for National Security. "I commend the Portland City Council's decision to allow their police department to rejoin the local JTTF and look forward to having them back on board."
Owner of San Gabriel Valley Surrogacy Agency Pleads Guilty to Ripping Off Would-Be Parents who Paid for Egg DonationsRead the Press Release
LOS ANGELES – The owner of a Glendora egg donation and surrogacy company pleaded guilty late this afternoon to a federal wire fraud charge and admitted defrauding would-be parents, egg donors and surrogates over the course of more than three years.
Allison Layton, a 38-year-old resident of Star, Idaho, pleaded guilty before United States District Court Judge George H. Wu.
Layton, who owned and operated Miracles Egg Donation and sometimes used the name Allison Jarvie, lived in Glendora during the course of the scheme.
Between August 2008 and January 2012, would-be parents – who in the surrogacy and egg donation world are known as intended parents – paid thousands of dollars for egg donation and surrogacy services that Miracles promised to coordinate. Layton took money – often tens of thousands of dollars – from the intended parents, but, instead of putting the funds into escrow accounts to be withdrawn only for certain costs related to the surrogacy or egg donation, Layton used the money for her own personal expenses or to cover unpaid costs related to other clients.
As a result of Layton’s misappropriation of client funds, egg donors, surrogates, attorneys and others often were not paid for all the services they provided and intended parents often did not receive all the services for which they had paid. At least one investor in Miracles also lost money.
When the donors, surrogates and intended parents sought to recover their money and costs, Layton would lull them into believing they would be repaid through false assurances that payments had already been made or would be made soon.
As a result of the fraud scheme, more than 40 victims lost more than $270,000.
As a result of her pleading guilty to wire fraud, Layton faces a maximum statutory sentence of 20 years in federal prison. Layton is scheduled to be sentenced by Judge Wu on May 28.
The investigation into Layton was conducted by the Federal Bureau of Investigation.
Owner of San Gabriel Valley Surrogacy Agency Pleads Guilty to Ripping Off Would-Be Parents Who Paid for Egg DonationsRead the Press Release
LOS ANGELES – The owner of a Glendora egg donation and surrogacy company pleaded guilty late this afternoon to a federal wire fraud charge and admitted defrauding would-be parents, egg donors and surrogates over the course of more than three years.
Allison Layton, a 38-year-old resident of Star, Idaho, pleaded guilty before United States District Court Judge George H. Wu.
Layton, who owned and operated Miracles Egg Donation and sometimes used the name Allison Jarvie, lived in Glendora during the course of the scheme.
Between August 2008 and January 2012, would-be parents – who in the surrogacy and egg donation world are known as intended parents – paid thousands of dollars for egg donation and surrogacy services that Miracles promised to coordinate. Layton took money – often tens of thousands of dollars – from the intended parents, but, instead of putting the funds into escrow accounts to be withdrawn only for certain costs related to the surrogacy or egg donation, Layton used the money for her own personal expenses or to cover unpaid costs related to other clients.
As a result of Layton’s misappropriation of client funds, egg donors, surrogates, attorneys and others often were not paid for all the services they provided and intended parents often did not receive all the services for which they had paid. At least one investor in Miracles also lost money.
When the donors, surrogates and intended parents sought to recover their money and costs, Layton would lull them into believing they would be repaid through false assurances that payments had already been made or would be made soon.
As a result of the fraud scheme, more than 40 victims lost more than $270,000.
As a result of her pleading guilty to wire fraud, Layton faces a maximum statutory sentence of 20 years in federal prison. Layton is scheduled to be sentenced by Judge Wu on May 28.
The investigation into Layton was conducted by the Federal Bureau of Investigation.
Release No. 15-014
Operation Southern Wave Targets Florida Identity Theft, FraudRead the Press Release
The State Department’s Diplomatic Security Service (DS) Miami Field Office, working with multiple federal, state, and local enforcement authorities, has apprehended 26 men and women sought as suspects of identity theft, as well as passport and visa fraud.
Operation Southern Wave, a Florida statewide law enforcement operation stretching from Jacksonville to Miami, was conducted from February 3 to 18.
“The apprehension of fugitives and suspects delivers a clear message that federal, state, and local law enforcement authorities will find and bring to justice any individuals who attempt to defraud the U.S. government,” said Wendy A. Bashnan, Special Agent in Charge of the DS Miami Field Office.
“If you engage in passport or visa fraud or engage in other forms of identity theft, sooner or later we will track you down.”
Operation Southern Wave generated a total of 18 new complaints and indictments for individuals suspected of passport and/or visa fraud.
17 individuals were charged in the Southern District of Florida for making false statements in application for a passport. Another 9 individuals were charged in the Middle District of Florida for making false statements in application for a passport.
If convicted, individuals charged with falsifying a passport application will face a maximum penalty of 10 years’ imprisonment, and up to a $250,000 fine.
Approximately 150 federal, state, and local law enforcement officers were among those involved in support of Operation Southern Wave.
“The Florida Highway Patrol is committed to collaborating with federal, state, and local law enforcement to identify, arrest and pursue prosecution of those who commit identity theft crimes in Florida,” said Colonel David Brierton, director of the Florida Highway Patrol. “Operation Southern Wave’s success is a testament to that commitment.”
The DS Miami Field Office has responsibility for eight southern states. It brought in personnel from its entire region to assist in Operation Southern Wave.
DS partnered with the U.S. Attorney’s Offices from the Southern and Middle Districts of Florida, along with the Department of Homeland Security (DHS) Enforcement and Removal Operations; DHS Homeland Security Investigations; U.S. Marshals Service; Florida Highway Patrol; Miami-Dade Police Department; and several other local law enforcement offices.
Mr. Ferrer commended DS for leading this operation, and thanked all participating agencies for their investigative efforts and assistance. The cases in this District are being prosecuted by Cary Aranovitz, Daniel Cervantes, Robert Emery, Matthew Langley, Daya Nathan, Jonathan Osborne, Kevin Quencer, and Adam Weisholtz.
A complaint/indictment is a formal charge that a defendant has committed one or more violations of federal criminal law. All defendants are presumed innocent unless, and until, proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Norfolk Man Indicted in Tax Fraud SchemeRead the Press Release
NORFOLK, Va. – Ronald Chisholm, 53, of Norfolk, was indicted by a federal grand jury on charges that he conspired to commit mail fraud, committed mail fraud, aggravated identity theft, and false claims in connection with a scheme to defraud the Internal Revenue Service.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, Internal Revenue Service-Criminal Investigations, made the announcement.
Chisholm faces a maximum penalty of 144 years in prison if convicted of all counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The indictment alleges Chisholm’s scheme began in 2010. Chisholm recruited an employee of a local check cashing business to cash over $2 million in U.S. Treasury checks. The employee of the check cashing business was paid $200 per check to cash the treasury checks in violation of the company’s policies. Chisholm, along with unidentified co-conspirators stole the personal identifying information of numerous people and filed at least 698 fraudulent income tax returns. As a result of these false returns, Chisholm and his co-conspirators received a total of $2,273,119.52 in fraudulent income tax refunds.
This case was investigated by the Internal Revenue Service. Assistant United States Attorney Joseph L. Kosky is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-132.New Orleans Woman Pleads Guilty to Theft of Social Security BenefitsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LAVERNE ROSE, age 69, of New Orleans, pled guilty yesterday to theft of government funds.
ROSE admitted that she stole $282,400 from the Social Security Administration over the course of 23 years. According to court documents, ROSE jointly held a bank account with her father, who died in 1990. Unaware of ROSE’s father’s death, the Social Security Administration continued wiring retirement benefits for him to the account. ROSE received and spent the benefits until 2014 when the Social Security Administration learned that ROSE’s father had died. ROSE admitted that she knew the payments should have ceased and that they did not belong to her.
ROSE faces up to ten years’ incarceration and a fine of up to twice the theft amount. U.S. District Judge Kurt D. Engelhardt set sentencing for May 13, 2015.
U.S. Attorney Polite praised the work of the United States Social Security Administration in investigating this matter. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
New Orleans Man Pleads Guilty to Bank RobberyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK MORGAN, age 37, of New Orleans, pled guilty today to bank robbery and use of a dangerous weapon in commission of same.
On September 12, 2014, MORGAN was charged in a one-count Indictment. According to the factual basis filed into the record, on Wednesday, September 3, 2014, MORGAN, who was dressed as a female, robbed the Fidelity Homestead Savings Bank located on St. Charles Avenue in New Orleans by force, violence and intimidation. Deposits made at Fidelity Homestead Savings Bank are insured by the Federal Deposit Insurance Corporation (FDIC).
U.S. District Judge Carl J. Barbier will sentence MORGAN on May 14, 2015. MORGAN faces a maximum of 25 years imprisonment, followed by 5 years of supervised release.
U.S. Attorney Polite praised the work of Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
New Haven Man Charged with Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ANTHONY REID, 26, of New Haven, with possession of a firearm by a convicted felon.
The indictment alleges that on October 20, 2014, REID possessed a semi-automatic rifle.
Prior to October 2014, it is alleged that REID had sustained felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, REID faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
The indictment seeks the forfeiture of the semi-automatic rifle, as well as 101 rounds of ammunition that were seized on October 20, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Nelson.
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(203) 821-3722 [email protected]Naples Man Pleads Guilty in Connection with Sunshine Pharmacy Health Care Fraud ConspiracyRead the Press Release
Fort Myers, Florida –United States Attorney A. Lee Bentley, III announces that Adam Parrish (35, Naples) has pleaded guilty to an Information charging him with seven counts of conspiracy to commit health care fraud, three counts of aggravated identify theft, and three counts of improper use of a DEA Registration Number. He faces a maximum penalty of 10 years in federal prison for the conspiracy charges, an additional two years for each aggravated identity theft count, which must be served consecutively to the conspiracy offense, and four years in federal prison for each improper use of a DEA Registration Number offense. A sentencing date has not yet been scheduled.
According to the plea agreement, from February 2009 through July 2012, Adam Parrish conspired with Delmer Holmes Parrish and Patricia Parrish to defraud federal health care benefit programs out of approximately $351,358. All three, along with others, used Sunshine Pharmacy and Sunshine Solutions in Naples to further their unlawful scheme to defraud the government. The co-conspirators submitted and caused claims to be submitted for reimbursement from the Medicaid, Medicare, and TRICARE programs for prescriptions that had not been filled or provided to beneficiaries and recipients, including prescriptions for patients that had not been written or authorized by any duly licensed physician. In addition, they submitted and caused claims to be submitted for reimbursement from these programs for prescriptions for beneficiaries and recipients who were deceased. In carrying out the offenses, the conspirators also used the means of identification of individuals who were enrolled in the Medicaid, Medicare, or TRICARE programs without their knowledge or consent. As a result of the scheme, the government was defrauded out of approximately $351,358.
In addition, Adam Parrish admitted that he had unlawfully used the names of three federal health care beneficiaries to commit health care fraud. He also admitted that he had utilized two different physicians’ DEA Registration Numbers, on three occasions, to acquire or obtain controlled substances from pharmacies in Collier County.
Delmer Parrish and Patricia Parrish were sentenced for their role in the conspiracy in April 2014. Delmer Parrish, who was a licensed pharmacist and owner of Sunshine Pharmacy, surrendered his pharmacist license and was sentenced to 24 months in federal prison. Patricia Parrish, Delmer’s Parrish’s mother, was sentenced to house arrest for 120 days, to be followed by three years of probation. In addition, Delmer and Patricia Parrish paid $351,358 in restitution to the United States at the time of their sentencing.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Department of Defense, Defense Criminal Investigative Service, and the Drug Enforcement Administration, with assistance from the Naples Police Department, the Collier County Sheriff's Office, and the United States Secret Service. It was prosecuted by Assistant United States Attorney David G. Lazarus.
Mortgage Fraud Schemers Get 15 Year Prison TermsRead the Press Release
PHILADELPHIA – Walter Alston Brown, 47, of Providence Forge, Virginia, and Glen Allen, Virginia, and Cynthia Evette Brown, 53, of Philadelphia, PA, were each sentenced today to 180 months in prison for their roles in a multi-million dollar mortgage fraud scheme. Walter Brown was a mortgage broker with First Horizon Home Loans, Foxworth Inc., Carteret Mortgage, and Advantage Lending and was one of the four owners of KREW Settlement Services, a real estate settlement company. He was convicted on October 17, 2014 of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and tax evasion. Cynthia Brown was convicted of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and wire fraud. The two were among 17 defendants charged in the case.
In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Walter Brown to pay $7,213,123 in restitution to the victims of his fraud plus another $31,903 in restitution to the IRS; Cynthia Brown was ordered to pay $7,488,608.48 in restitution. Both defendants were also ordered to complete five years of supervised release.
Between May 2004 and February 2009, the conspirators inflated purchase prices on loan documents for more than 100 Philadelphia properties resulting in more than $20 million in fraudulent loan proceeds. The scheme involved identifying distressed properties to purchase, typically in the West Philadelphia area, recruiting “straw buyers” whose credit history and personal information were used to purchase the properties, obtaining mortgage loans, and taking title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Cynthia Brown falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. The defendants and their conspirators falsely prepared deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. They also created false title insurance policies for the lenders.
After the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed among the defendants.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Department of Housing and Urban Development’s Office of Inspector General. It was prosecuted by Assistant United States Attorney Michael S. Lowe.
Montgomery County Dental Practice Resolves Allegations of DiscriminationRead the Press Release
PHILADELPHIA – Dentex Dental Mobile, Inc. (“DDMI”), a Pennsylvania corporation located in Huntington Valley, has reached a settlement with the United States to resolve allegations that it refused to treat an HIV-positive patient in violation of the Americans with Disabilities Act (“ADA”).
As part of its business, DDMI owns and operates several dental clinics, both fixed and mobile, throughout the Philadelphia area. As a result of its investigation, the United States determined that a DDMI mobile clinic, stationed in Chester, PA, refused to treat a patient, who was previously treated at its mobile clinic and who had disclosed in paperwork at both visits his HIV status. The Office Manager allegedly referred the patient to an AIDS clinic for further assistance. According to the Americans with Disabilities Act, a healthcare provider cannot refer a patient with HIV or AIDS to another provider simply because the patient has HIV or AIDS.
As a result of the United States’ investigation, Dentex has agreed to implement a non-discrimination policy, conspicuously post that policy, and adequately train employees and contractors regarding the policy. The Agreement is in effect for two years.
This case was handled by Assistant United States Attorney Jacqueline C. Romero.
Meth Lab Dismantled in Cranston, Two Detained in Federal CustodyRead the Press Release
PROVIDENCE, R.I. – Nicholas Selser, 33, and Michael Fortes, 48, of Cranston, have been ordered detained in federal custody on charges that they allegedly manufactured methamphetamine inside their apartment at the Devan Manor housing complex in Cranston, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
According to court documents, Cranston Police, the DEA Drug Task Force and the DEA Clandestine Laboratory Enforcement Team of New Hampshire executed a court authorized search of the defendants’ apartment on Wednesday, and seized various chemicals, supplies and items used in the manufacture of methamphetamine. The manufacture of methamphetamine is often times a dangerous process which may result in explosion or fire. The Devan Manor housing complex is a densely populated complex which includes a substantial number of elderly residents.
According to court documents, during the execution of the warrant, evidence was found indicating that methamphetamine had been manufactured approximately eleven times on prior occasions using the “one pot” method of methamphetamine manufacture. The “one pot” or “shake and bake” method is a simple but potentially very dangerous method of manufacturing methamphetamine in approximately one hour.The “one pot” method uses an empty container to combine ephedrine or pseudoephedrine, camping fuel or some other ether product, sulfuric acid, ammonia nitrate powder, lithium strips from batteries, and lye or some other sodium hydroxide product with water to produce liquid methamphetamine. The methamphetamine liquid is poured off, leaving waste byproduct. The liquid is then gassed off, producing methamphetamine. The containers will often leak dangerous chemicals because the containers cannot always withstand the pressure produced by the chemical reactions. The “one pot” method is also prone to cause fires and can sometimes cause explosions.
Nicholas Selser and Michael Fortes are charged with one count each of conspiracy to manufacture methamphetamine; manufacture of methamphetamine; possession of precursor chemicals to manufacture methamphetamine; and possession of equipment, products and material which may be used to manufacture methamphetamine.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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[email protected]Mergers and Acquisitions Analyst Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ZACHARY ZWERKO pled guilty today in Manhattan federal court to one count of conspiracy to commit securities fraud and three counts of securities fraud in connection with an insider trading scheme in which ZWERKO, who worked for a pharmaceutical company (the “Pharma Company”), passed material, nonpublic information to a co-conspirator (“CC-1”) who then made profitable securities trades based on the information and reaped over $700,000 in profits. The information concerned potential and actual corporate transactions, including acquisitions. ZWERKO pled guilty today before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Preet Bharara said: “Zachary Zwerko exchanged and traded in nonpublic information about a pharmaceutical company’s activities that generated over $700,000 in profits for a co-conspirator and $57,000 for him. With his guilty plea today, Zwerko’s attempts at hiding his illicit conduct by using a disposable phone for his communications have proven futile, and he will now be punished for his crimes.”
According to the Information filed in Manhattan federal court and statements made at public court proceedings:
From at least 2010 through August 2014, ZWERKO engaged in an insider trading scheme involving trading around information related to the acquisitions of certain pharmaceutical companies. ZWERKO, who was a Senior Finance Analyst in the Financial Evaluation and Analysis Group of the Pharma Company, passed material, nonpublic information related to potential acquisitions to CC-1. As part of his employment, ZWERKO performed work in connection with numerous potential and actual corporate transactions, including acquisitions. ZWERKO also had access to a computer directory maintained by the Pharma Company which contained material, nonpublic information related to potential acquisitions by the company.
On multiple occasions, ZWERKO passed to CC-1 material, nonpublic information related to future acquisitions by the Pharma Company, including the identities of companies which were in negotiations with the Pharma Company for potential acquisitions (the “Target Companies”). ZWERKO and CC-1 at times communicated with each other via disposable cellphone to disguise their communications. CC-1 then traded in the securities of the Target Companies. The Target Companies were subsequently acquired, in one instance by the Pharma Company, and the prices of the shares of the Target Companies increased after the acquisitions were announced publicly. CC-1 then liquidated CC-1’s positions in the shares of the Target Companies, thereby profiting from the movement in stock price. From this illegal trading, CC-1 reaped trading profits of at least approximately $737,000. CC-1 gave ZWERKO approximately $57,000 in cash, of CC-1’s illegal proceeds, as part of ZWERKO’s share of the scheme’s profits.
ZWERKO, 32, of Cambridge, Massachusetts, pled guilty to one count of conspiracy to commit securities fraud and three counts of securities fraud. The conspiracy count carries a maximum sentence of five years in prison. The three counts of securities fraud each carry a maximum of 20 years in prison. ZWERKO also faces a maximum fine of $5,000,000, or twice the gross gain or loss from the offense on the conspiracy count. He agreed as part of his plea agreement to forfeit the proceeds he obtained as a result of the offenses. The maximum potential sentences are prescribed by Congress, and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ZWERKO is scheduled to be sentenced by Judge Hellerstein on May 15, 2015, at 11:00 a.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella and Edward Kim are in charge of the prosecution.
Massachusetts Woman Pleads Guilty to Bank FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Viviane Cazeau (36, Massachusetts) has pleaded guilty to bank fraud. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, Cazeau, as well as others, would call Bank of America and other financial institutions and fraudulently pose as an account holder. Cazeau would provide enough information to convince the bank employee that she was the true account holder. Upon gaining access to the account, Cazeau would then request a new debit card and personal identification number (PIN). She would request that the card and PIN be mailed to the address on file with the bank. The card and PIN would then be mailed to the address, stolen from the victim’s mailbox, and used for ATM withdrawals in Florida and Massachusetts. During the course of this investigation, law enforcement has identified approximately $822,698 in losses tied to this scheme.
This case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara C. Sweeney.
Martinsburg man charged with fabricating death to desert from U.S. Coast GuardRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging a West Virginia man with fabricating his own death in an effort to desert from the U.S. Coast Guard, United States Attorney William J. Ihlenfeld, II, announced.
Larry C. Shelby, 33, along with Karen Shelby, 33, and Jeffery John York, 32, of Martinsburg, are each charged with “Hoax Causing U.S. Coast Guard to Render Unnecessary Aid” and “Conspiracy to Violate Laws.” The indictment alleges that Larry Shelby, a non-commissioned officer in the U.S. Coast Guard, conspired with his wife, Karen Shelby, and with York to desert from the Coast Guard in 2013. Larry Shelby allegedly abandoned his vehicle, wrote suicide notes, concealed his identity and isolated himself in a remote West Virginia cabin in an effort to falsify his own death.
The indictment further alleges that York and Karen Shelby represented to authorities that Larry Shelby was missing and that they were unaware his location or whether he was alive. These misrepresentations caused the U.S. Coast Guard to expend in excess of $100,000.00 in a search for Larry Shelby. In February 2014, Larry Shelby allegedly returned from the remote cabin to reside in his Martinsburg residence in secret until June.
York and Karen Shelby, who also are charged with making a false statement, each face up to 16 years in federal prison. Larry Shelby faces up to 11 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The matter was investigated by the Coast Guard Investigative Service. The Coast Guard’s search for Larry Shelby was supported by the Maryland State Police, the National Park Service, the Berkeley County, West Virginia Sheriff’s Office, the Harpers Ferry, West Virginia Police Department, the Martinsburg, West Virginia Police Department, Chesapeake Search & Rescue K-9, and Mid-Atlantic D.O.G.S, Inc.
Assistant U.S. Attorneys Paul Camilletti and Andrew Williamson are prosecuting the case on behalf of the government.
Louisiana Resident Indicted for Insider Trading in Connection with the Acquisition of the Shaw GroupRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that another individual has been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Middle District of Louisiana has indicted DR. JESSE H. ROBERTS, III, age 43, of Ruston, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, ROBERTS faces significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from on or before July 2012, and continuing to at least November 2013, ROBERTS and his brother-in-law, Scott Zeringue, a former executive with The Shaw Group (“Shaw”), engaged in a scheme to profit from inside information about the upcoming merger between Shaw and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, in mid-2012, Shaw was considering a potential merger opportunity. At the time, Zeringue was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The indictment alleges that, prior to the public announcement and through his job at Shaw, Zeringue obtained inside information about the upcoming merger between Shaw and CB&I and passed the inside information to ROBERTS. Thereafter, ROBERTS and Zeringue allegedly purchased Shaw securities before the public announcement and sold their Shaw securities after the public announcement had caused Shaw’s stock price to rise, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that ROBERTS made over $650,000 in proceeds from his illegal insider trading activities.
Prior to the Indictment announced today, Zeringue was charged in the Middle District of Louisiana with conspiracy to commit securities fraud. On June 27, 2014, Zeringue pled guilty as charged pursuant to a plea agreement with the United States.
Other federal prosecutions have resulted from insider trading related to the acquisition of the Shaw Group. In separate proceedings being handled by the U.S. Attorney’s Office for the Western District of North Carolina, a former Wells Fargo investment banker and seven of his conspirators have been convicted on insider trading charges related, in part, to the Shaw sale, with sentences up to 10 years in prison.
In announcing today’s Indictment, U.S. Attorney Walt Green praised the investigative work of the U.S. Secret Service, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation, and thanked the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the U.S. Attorney’s Offices for the Western District of North Carolina and the Western District of Louisiana for their assistance.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Chris Dippel and Senior Litigation Counsel Patricia Jones.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Lone Pine Man Indicted for Taking Archaeological Artifacts from Public Lands in Inyo CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count indictment today against Norman Starks, 76, a resident of Lone Pine, California, charging him with unauthorized removal of archaeological resources, depredation of government property, and possession of stolen government property, United States Attorney Benjamin B. Wagner announced.
According to court documents, the defendant damaged, altered, and removed Native American archaeological resources without authorization, from federal lands. These included Native American burial cairns and other cultural artifacts, such as beads and fragments of ceramic pots, which were more than 100 years old. The artifacts were located in the Lone Pine area of Inyo County on public lands administered by the Bureau of Land Management. In addition, the indictment charges the defendant with possessing stolen property that included prehistoric Native American incised stone tablets, which had been taken from government lands.
This case was the product of an investigation by the Bureau of Land Management and the National Park Service. Assistant United States Attorney Megan A. S. Richards is prosecuting the case.
If convicted of theft of stolen government property or depredation of government property, STARKS faces a maximum statutory penalty of ten years in prison and a $100,000 fine. For each count of removal of archaeological resources, STARKS faces a maximum statutory penalty of two years in prison and a $100,000 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Archeological resources are protected under the Archaeological Resources Protection Act (ARPA). Federal land managers, such as Bureau of Land Management and National Park Service, are responsible for the protection of natural and cultural resources located on public lands.
Local Doctor Pleads Guilty to Child Porn, Prescription Drug ChargesRead the Press Release
ROANOKE, VIRGINIA – A Roanoke County doctor who was indicted in August on charges of prescribing oxycodone outside the usual course of professional practice and receipt of child pornography, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke.
Steven Joseph Collins, 51, of Roanoke County, Virginia, pled guilty today to one count of receiving child pornography and two counts of dispensing oxycodone by illegal prescribing. At sentencing, Collins faces a period of incarceration between a mandatory five years and twenty years.
According to evidence presented at today’s hearing by Assistant United States Attorney Jennie L.M. Waering, between July 2010 and July 2013, Collins received digital video and image files of a minor who had not obtained 12 years of age, engaged in sexual activity. This sexual activity included prepubescent children engaging in oral sex with adult males.
In addition, Collins admitted that on separate dates in January 2014 and April 2014, in his role as a medical doctor, authorized controlled substance prescription orders for oxycodone to be issued outside the usual course of professional practice. In one instance, he wrote a prescription for oxycodone in the name of the husband of a patient to avoid having too many prescriptions in the patient’s name. The husband was not, and had never been, a patient.
The investigation of the case was conducted by the Tactical Diversion Squad (TDS) of the Drug Enforcement Administration (DEA) and the Department of Homeland Security. The local TDS is comprised of law enforcement officers from the Virginia State Police (VSP), Roanoke County Police Department, Montgomery County Sheriff’s Office, Bedford County Sheriff’s Office, Pittsylvania County Sheriff’s Office, Washington County Sheriff’s Office, Health and Human Services Office of Inspector General and DEA. Assistant United States Attorney Jennie Waering is prosecuting the case for the United States.
Las Vegas Man Sentenced to Five Years in Prison for Role in Multi-Million Dollar Mortgage Relief ScamRead the Press Release
SACRAMENTO, Calif. — Ray Jan Kornfeld, 59, resident of Las Vegas, NV, was sentenced today by United States District Judge Troy L. Nunley to 5 years in prison for his role in a large-scale mortgage fraud scheme, United States Attorney Benjamin B. Wagner and California Attorney General Kamala D. Harris jointly announced. Kornfeld was also ordered to pay over $3 million in restitution to victims of the scheme.
According to court documents, between January 7, 2010, and August 20, 2013, Co-defendant Alan David Tikal was the principal behind a business known as KATN, which targeted distressed homeowners throughout California and the nation, many of whom did not speak English. Members of the scheme promised to reduce victims’ outstanding mortgage debt by 75%, falsely claiming Tikal was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Homeowners were told that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to KATN in an amount equaling 25% of their original obligation. In reliance upon misrepresentations made by Tikal and others, homeowners stopped making payments on their existing mortgage loans and many lost their homes to foreclosure as a result.
In fact, the defendants never satisfied the home owners’ mortgage debt and merely pocketed the money received through the scheme, which consisted of more than $5,800,000 in fees and monthly payments. Over 1,000 homeowners were victimized.
Judge Nunley found that Kornfeld joined the conspiracy in September of 2010. Kornfeld corresponded frequently with victims, reminding them to make their payments, and assuring them the program would be successful even after Alan Tikal was indicted by State and Federal authorities for his role in the scheme. Moreover, after promising federal authorities on November 27, 2012 that he would contact and advise the victims to make alternative plans to address their mortgage debt, Kornfeld instead continued to collect payments and file bankruptcy documents to further the scheme.
“Kornfeld falsely promised these victims, many of whom didn’t speak English as their first language, that he could save their homes from foreclosure and reduce their mortgage debt by 75 percent if the homeowners agreed to pay him fees and regular ‘loan’ payments instead of making their monthly mortgage payments,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Despite having the opportunity to stop his crime, Kornfeld kept the elaborate fraud going, frequently corresponding with victims, reminding them to pay up, while assuring them the operation would be successful. Many victims subsequently lost their homes to foreclosure. The scam also exploited bankruptcy law as a way to illegally halt foreclosure proceedings by mortgage lenders, including TARP recipients. SIGTARP and our law enforcement partners will ensure that perpetrators of fraud related to TARP are brought to justice for their crimes.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and Deputy Attorney General Maggy Krell are prosecuting the case.
Co-defendant Alan Tikal was convicted following a bench trial and is scheduled to be sentenced by Judge Nunley on March 5, 2015. Co-defendant Tamara Tikal previously entered a guilty plea and is awaiting sentencing.Jury Finds Former Soldier Guilty of Attempted Murder of Four Soldiers at the Millington National Guard ArmoryRead the Press Release
Memphis, Tenn. – A Cordova man was found guilty in federal district court of assault with intent to commit murder, assault with a dangerous weapon with intent to do bodily injury, and discharging a firearm during a federal crime of violence, announced U.S. Attorney Edward L. Stanton III; Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation, A. Todd McCall; and Naval Criminal Investigative Service Special Agent Michael C. Cote.
Amos Patton, 43, of Cordova, TN, was found guilty after a six-day trial by a federal jury in the Western District of Tennessee of 4 counts of assault with intent to commit murder in the special territorial jurisdiction of the United States, 4 counts of assault with a dangerous weapon with intent to do bodily injury in the special territorial jurisdiction of the United States, and one count of discharging a firearm during a federal crime of violence.
“The jury’s verdict holds Amos Patton accountable for his acts of violence committed upon his fellow soldiers,” said U.S. Attorney Stanton. “Patton’s actions were destructive enough, but they had the real potential to result in an even greater tragedy.”
According to the government’s evidence, on October 24, 2013, Patton, a full-time member of the Tennessee Army National Guard, had been directed by his commanders to come to the National Guard Armory, located at 5650 Attu, Millington, TN. During this meeting, Patton was notified that he was being relieved of duty, recommended for reduction in rank, and recommended for separation from the active guard reserve because of misconduct.
Following the meeting, Patton was directed to return government equipment believed to be in his government vehicle. When he returned from the car, Patton had in his possession a “fanny pack.” The fanny pack contained a loaded 9mm semiautomatic handgun and fifty extra rounds of ammunition. When Patton attempted to pull the handgun from the pack, one of the Tennessee Army National Guardsmen yelled a warning.
At that point, a Command Sergeant Major and a Major attempted to subdue Patton. Patton was able to fire his weapon six times, and rounds wounded three Tennessee Army National Guard personnel in the room. Patton ran from the building, followed by the Command Sergeant Major, who caught Patton, and subdued him with assistance of other soldiers. They held him until the Millington Police Department arrived and took Patton into custody.
U.S. District Judge John T. Fowlkes, who presided over the trial, set sentencing for May 28, 2015.
In announcing the verdict, U.S. Attorney Stanton, Special Agent in Charge McCall, and Special Agent Cote commended the work of the FBI and the NCIS. Finally, they commended Assistant U.S. Attorneys Fred Godwin and Mark Erskine and FBI Special Agent Matthew Ross, who investigated and prosecuted the case.
Spanish Version
Jurado Encuentra Ex Soldado Culpable De Intento De Asesinato De Cuatro Soldados En La Armeria De La Guardia Nacional De MillingtonRead the Press Release
Memphis, Tenn. - Un hombre de Córdoba fue declarado culpable en un tribunal federal de distrito de asalto con intento de cometer asesinato, asalto con un arma peligrosa con la intención de hacer daño corporal, y disparar un arma de fuego que està considerado como un acto de violencia la cual es un delito federal, anunció el Fiscal Federal Edward L. Stanton III; Agente Especial a Cargo de la División de la Oficina Federal de Investigaciones, A. Todd McCall Memphis; y el Agente Especial Naval del Servicio de Investigaciones Criminales Michael C. Cote.
Amos Patton, de 43 años, de Córdoba, TN, fue declarado culpable después de un juicio de seis días por un jurado federal en el Distrito Oeste de Tennessee de 4 cargos de asalto con intención de cometer homicidio en la jurisdicción territorial especial de los Estados Unidos, 4 cargos de asalto con un arma peligrosa con la intención de hacer daño corporal en la jurisdicción territorial especial de los Estados Unidos, y un cargo de disparar un arma de fuego que es un delito federal por violencia.
"El veredicto del jurado sostiene que Amos Patton es responsable de sus actos de violencia cometidos contra sus compañeros soldados", dijo el Fiscal Federal Stanton. "Las acciones de Patton fueron lo suficientemente destructiva, pero tenían el verdadero potencial de resultar en una tragedia aún mayor."
De acuerdo con la evidencia del gobierno, el 24 de octubre de 2013, Patton, un miembro de tiempo completo de la Guardia Nacional del Ejército de Tennessee, había sido convocado por sus comandantes para venir a la Armería de la Guardia Nacional, ubicado en 5650 Attu, Millington, TN. Durante esa reunión, Patton fue notificado de que estaba siendo relevado de su cargo, se recomendó para una degradación de rango, y se recomendó para la separación de la reserva activa de la guardia nacional por mala conducta.
Tras la reunión, Patton fue dirigido a devolver los equipos del gobierno que se creía que estaban en su vehículo del gobierno. Cuando regresó del coche, Patton tenía en su poder un "bolso de cintura". El bolso de su cintura contenía una pistola semiautomàtica de 9 mm cargada y cincuenta municiones adicionales. Cuando Patton intentó sacar la pistola del bolso de su cintura, uno de los miembros de la Guardia Nacional del Ejército de Tennessee gritó en advertencia.
En ese momento, un Sargento Mayor de Comando y un Mayor intentaron someter a Patton. Patton fue capaz de disparar su arma en seis ocasiones, y los disparos hirieron a tres miembros de la Guardia Nacional del Ejército de Tennessee en la habitación. Patton salió corriendo del edificio, seguido por el Sargento Mayor de Comando, quien atrapó a Patton, y lo sometió con asistencia de otros soldados. Lo retuvieron hasta que el Departamento de Policía de Millington llegó y tomó a Patton en custodia.
El juez de distrito John T. Fowlkes, quien presidió el juicio, establece la sentencia para el 28 de mayo 2015.
Al anunciar el veredicto, el Fiscal Federal Stanton, Agente Especial a Cargo McCall y Agente Especial Cote elogiaron el trabajo del FBI y el NCIS. Por último, elogiaron los Fiscales Federales Auxiliares Fred Godwin y Mark Erskine y al Agente Especial del FBI Matthew Ross, quien investigó y procesó el caso.
Version en Inglés
Indictment Returned Against Westbank Gang MembersRead the Press Release
U.S. Attorney Kenneth A. Polite announced the return of an Indictment charging members of a Westbank gang associated with the Harvey Hustlers with violating federal drug and firearm laws. On February 12, 2015, a federal grand jury returned the Indictment against GLEN HOUSTON, age 22, SAVANNAH HOUSTON, age 24, JARRIN HARRIS, age 21, DENVER LONDON, age 22, JOESIA WILSON, age 26, and BRITTANY CONNER, age 22, all of the Harvey area of Jefferson Parish. The Indictment was recently unsealed.
The Indictment charges all defendants with conspiracy to distribute more than 280 grams of crack cocaine, as well as conspiracy to possess firearms in furtherance of drug trafficking. All defendants are presently in custody pending trial.
All defendants are facing a sentence of ten years to life, a $10,000,000 fine, and at least five years of supervised release if convicted of conspiracy to distribute crack cocaine. If convicted of conspiracy to possess a firearm in furtherance of drug trafficking, the defendants face a sentence of twenty years to life, a $250,000 fine, and a maximum of five years of supervised release.
The Indictment is a product of an ongoing investigation into drug trafficking by this and other Westbank gangs. It represents the continued coordinated effort of the federal and state law enforcement authorities, including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigations (“FBI”), and members of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Indictment Charges Group of Six in Financial Fraud SchemeRead the Press Release
PHILADELPHIA - Aaron Henderson, 21, Muhammad Sadaat A. White, 22, Marcus Allen Ray, 25, Raymond Rysheem E. Starr, 21, Marcus Lee Jackson, 23, and Timothy Nathaniel, 25, all of Philadelphia, PA, were charged today by indictment with conspiracy, bank fraud, aggravated identity theft and aiding and abetting, announced United States Attorney Zane David Memeger.
According to the indictment, between May 30, 2013 and November 20, 2014, the defendants obtained the names, accounts numbers and personal identification numbers of bank customers. They and their co-conspirators allegedly used that information to deposit bad checks at various banks, quickly withdrawing funds from those accounts. It is further alleged that the defendants recruited and paid some account holders to open accounts at financial institutions and then turn over the account information so it could be used for the deposit of bad checks and the fraudulent withdrawal of funds.
If convicted of all charges, the defendants face the following maximum possible statutory sentences: Henderson, 39 years in prison; White, 101 years in prison; Ray, 45 years in prison; Starr, 133 years in prison; Jackson, 69 years in prison; Nathaniel, 69 years in prison; plus fines and supervised release.
The case was investigated by the U.S. Postal Inspection Service and the U.S. Secret Service with assistance from the Philadelphia Police Department, the Springfield Township (Montgomery County) Police Department, the Abington Police Department and the Bensalem Police Department and is being prosecuted by Assistant United States Attorneys K.T. Newton and Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Holyoke Man Indicted on Federal Firearms ChargesRead the Press Release
BOSTON – Joshua Marrero, 28, of Holyoke, Mass., was indicted in U.S. District Court in Springfield on being a convicted felon in possession of a firearm and ammunition and possessing a firearm with an obliterated serial number.
The indictment alleges that on April 19, 2014, Marrero possessed a Lorcin Model L 380 .380 caliber firearm with an obliterated serial number and seven rounds of .380 caliber ammunition.
For those who qualify as armed career criminals, under federal law, the charge of being a felon in possession of a firearm provides a mandatory minimum sentence of 15 years, and a maximum of a lifetime in prison, five years of supervised release, and a fine of $250,000. The charge of possessing a firearm with an obliterated serial number provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief James M. Neiswanger, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ASA BOYD, 35, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on January 30, 2014, the Hartford Police Department’s Intelligence Division received information that an individual driving a red Grand Am was in possession of .45 caliber pistol and selling drugs in the vicinity of Capitol Avenue. Hartford Police officers responded to the area and located the vehicle parked on James Street. As officers approached the car, BOYD, who had been the sole occupant of the vehicle, ran from the car and up the stairs to a residence. BOYD then reached into his waistband and tossed a black pistol. Officers pursued BOYD as he ran up to the second floor. After a brief struggle with the officers, BOYD was taken into custody.
Officers recovered the firearm, which was a .45 caliber Glock pistol with an intact magazine containing 13 live rounds, including one live round in the chamber. BOYD also possessed approximately 2.9 grams of crack cocaine and $827 in cash.
BOYD’s criminal history includes multiple felony convictions. In 1996, BOYD was convicted of illegally firing a gun, for which he received 60 days in jail followed by probation. He later violated his probation and was sentenced to an additional one year in jail. In 2003, BOYD was arrested in possession of cocaine and three guns. He was ultimately convicted of possession with intent to sell narcotics and criminal possession of a weapon and, in 2005, was sentenced to 12 years of imprisonment, suspended after four years, and five years of probation.
BOYD has been detained since his arrest. On December 1, 2014, he pleaded guilty to one count of possession of a firearm by a convicted felon.
The matter was investigated by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Hamza Naj Ahmed Indicted for Conspiring to Provide Material Support to the Islamic State of Iraq and the LevantRead the Press Release
Ahmed Stopped in New York While Attempting to Fly Overseas to Join Terror Organization
Defendant Also Charged with Lying to Federal Agents during Terrorism Investigation
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Andrew M. Luger for the District of Minnesota announced today the indictment of Hamza Naj Ahmed, 19, for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL). Ahmed is also charged with attempting to provide material support to ISIL and for making a false statement in a terrorism investigation. Ahmed was previously charged by criminal complaint for lying to FBI agents. The defendant was detained on Feb. 5, 2015, after making an initial appearance before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minnesota.
“Hamza Ahmed is at least the fourth person from the Twin Cities charged as a result of an ongoing investigation into individuals who have traveled or are attempting to travel to Syria in order to join a foreign terrorist organization,” said U.S. Attorney Luger. “Since 2007, dozens of people from the Twin Cities have traveled or attempted to travel overseas in support of terror. While my office will continue to prosecute those who attempt to provide material support to ISIL or any other terrorist organization, we remain committed to working with dedicated community members to bring this cycle to an end.”
According to the indictment and documents filed in court, Ahmed and three companions, M.F., H.M.M. and Z.A., travelled by bus from Minneapolis to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on Nov. 8, 2014. Ahmed and M.F. were booked on the same flight from JFK to Istanbul, Turkey. M.F., H.M.M. and Z.A. were each prevented from boarding their flights. Ahmed successfully boarded, but was escorted from the aircraft by U.S. Customs and Border Protection agents before it left the boarding gate.
According to the indictment and documents filed in court, Ahmed was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When Ahmed arrived back in Minnesota on Nov. 9, 2014, FBI agents conducted a second voluntary interview, during which Ahmed again lied to agents.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Attorney Andrew Sigler of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Andrew Winter and John Docherty of the District of Minnesota.
Defendant Information:
HAMZA NAJ AHMED, 19
Minneapolis, Minnesota
Charges:
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Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
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Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
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Making a False Statement in a Terrorism Investigation, 1 count
Hamza Ahmed Indictment
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HAMZA NAJ AHMED INDICTED FOR CONSPIRING TO PROVIDE MATERIAL SUPPORT TO THE ISLAMIC STATE OF IRAQ AND THE LEVANT Ahmed Stopped in New York While Attempting to Fly Overseas to Join Terror Organization Defendant Also Charged with Lying to Federal AgentsRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General for National Security John P. Carlin today announced the indictment of HAMZA NAJ AHMED, 19, for conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL). AHMED is also charged with attempting to provide material support to ISIL, and for making a false statement in a terrorism investigation.1 AHMED was previously charged by criminal complaint for lying to FBI agents. The defendant was detained on February 5, 2015, after making an initial appearance before Magistrate Judge Steven Rau in U.S. District Court in St. Paul, Minn.
“Hamza Ahmed is at least the fourth person from the Twin Cities charged as a result of an ongoing investigation into individuals who have traveled or are attempting to travel to Syria in order to join a foreign terrorist organization,” said U.S. Attorney Luger. “Since 2007, dozens of people from the Twin Cities have traveled or attempted to travel overseas in support of terror. While my office will continue to prosecute those who attempt to provide material support to ISIL or any other terrorist organization, we remain committed to working with dedicated community members to bring this cycle to an end.”
According to the indictment and documents filed in court, AHMED and three companions, M.F., H.M.M, and Z.A., travelled by bus from Minneapolis, Minn., to New York City’s John F. Kennedy International Airport (JFK). The four men were each booked on international flights scheduled to depart JFK on November 8, 2014. AHMED and M.F. were booked on the same flight from JFK to Istanbul, Turkey. M.F., H.M.M., and Z.A. were each prevented from boarding their flights. AHMED successfully boarded, but was escorted from the aircraft by U.S. Customs and Border Protection agents before it left the boarding gate.
According to the indictment and documents filed in court, AHMED was subsequently interviewed by FBI agents. He made multiple false statements during the interview, including telling agents that he was traveling alone, and that he did not know M.F. or H.M.M. When AHMED arrived back in Minnesota on November 9, 2014, FBI agents conducted a second voluntary interview, during which AHMED again lied to agents.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force.
This case is being prosecuted by Assistant U.S. Attorneys Andrew Winter and John Docherty, and Attorney Andrew Sigler of the Justice Department’s National Security Division.
Defendant Information: HAMZA NAJ AHMED, 19
Minneapolis, Minn.
Charges: • Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
• Making a False Statement in a Terrorism Investigation, 1 countThe charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Grizzly Flat Man Sentenced to over 12 Years for Receipt and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. —Nicholas Robert Bowen, 63, resident of Grizzly Flat, California, was sentenced today by United States District Judge Troy L. Nunley to 12 and one-half years in prison for possession of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Bowen and a female companion were arrested by Davis Police officers after the female was caught exposing herself to 10-12 year old boys while Bowen filmed the encounters using a spy camera built into his glasses. A subsequent search of Bowen’s phone and his computer, including in a folder called “boys,” discovered over 600 images and videos of minors engaged in sexually explicit conduct. In sentencing Bowen, Judge Nunley commented that the offense conduct was “egregious,” and that Bowen was an “active individual” in the offense. Judge Nunley further noted that Bowen’s actions have had a “huge impact” and potentially “ruined” the childhoods of the victims in this case.
Charges remain pending against Bowen in Yolo County Superior Court.
This case is the product of an investigation by the Davis Police Department, the Yolo County District Attorney’s Office, the Sacramento Internet Crimes Against Children (ICAC) Task Force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Todd A. Pickles and Kyle Reardon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Granite City Man Sentenced for Methamphetamine OffensesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ronald J. Wiggins, 35, of Granite City, was sentenced on Wednesday, February 18, 2015 to 151 months in federal prison for offenses relating to the distribution of methamphetamine.
Wiggins pled guilty in U.S. District Court in East St. Louis on September 3, 2014 to three federal charges: Maintaining Drug-Related Premises; Distribution of Methamphetamine; and Possession With Intent to Distribute Methamphetamine.
Upon release from prison, Wiggins will also be required to serve a term of three years on supervised release.
At his change of plea hearing in September, Wiggins admitted that he had used his residence in Granite City, Illinois to distribute methamphetamine throughout 2013. Wiggins also admitted that he had sold methamphetamine to a police informant on June 13, and again on June 19, 2013, in Granite City.
The investigation which resulted in Wiggins’ arrest and conviction was conducted by the Granite City Police Department and by the U.S. Drug Enforcement Administration (DEA).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Granite City Man Sentenced for Methamphetamine OffensesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ronald J. Wiggins, 35, of Granite City, was sentenced on Wednesday, February 18, 2015 to 151 months in federal prison for offenses relating to the distribution of methamphetamine.
Wiggins pled guilty in U.S. District Court in East St. Louis on September 3, 2014 to three federal charges: Maintaining Drug-Related Premises; Distribution of Methamphetamine; and Possession With Intent to Distribute Methamphetamine.
Upon release from prison, Wiggins will also be required to serve a term of three years on supervised release.
At his change of plea hearing in September, Wiggins admitted that he had used his residence in Granite City, Illinois to distribute methamphetamine throughout 2013. Wiggins also admitted that he had sold methamphetamine to a police informant on June 13, and again on June 19, 2013, in Granite City.
The investigation which resulted in Wiggins’ arrest and conviction was conducted by the Granite City Police Department and by the U.S. Drug Enforcement Administration (DEA).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Gasport Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Christopher Wittcop, 43, of Gasport, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that Wittcop possessed child pornography on a laptop computer in Lockport, NY on July 18, 2011. A forensic analysis determined the computer contained over 600 images and video files of child pornography. Wittcopp used peer to peer software to share the images with others through the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of officers of the Federal Bureau of Investigation Cyber Task Force and the Niagara County Sheriff’s Department, under the direction of Sheriff James Votour.
Sentencing is scheduled for May 20, 2015, at 12:30 p.m. before Judge Arcara.
Fresno Man Indicted for Possessing Ecstasy for SaleRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Bryan Austin Frembling, 20, resident of Fresno, charging him with possessing MDMA (“Ecstasy”), with intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Frembling ordered the ecstasy from the internet. It was delivered from Canada to a post office box in another individual’s name. Frembling was arrested on January 5, 2015 as he picked up the package of drugs from the post office.
This case was the product of an investigation by the Homeland Security Investigations, U.S. Postal Service, and Fresno Police Department. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.
Frembling has been released on bail pending the disposition of the charges and will appear in court to be arraigned on the indictment on February 24, 2015.
If convicted, Frembling faces a maximum statutory penalty of twenty years in prison and a $1 million 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Local Loan Officer Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – MICHAEL WALLIS was sentenced to 14 months in prison on charges related to a fraud scheme involving applications for home loans. H was also ordered to pay restitution of $904,923.
According to the facts stated in court during the plea, since at least 2007, Michael Wallis worked in the mortgage lending industry in the St. Louis area. Initially, Wallis was employed as a loan officer, but later operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Around 2007, Wallis began doing real estate business deals with two associates who also worked in the St. Louis real estate market, and each had experience dealing with mortgages insured by the United States Department of Housing and Urban Development, Federal Housing Administration (FHA loans). In addition, they had experience dealing with conventional mortgage loans from banks insured by the Federal Deposit Insurance Corporation (FDIC) and mortgage loans held by the government-sponsored entity known as the Federal National Mortgage Association (Fannie Mae).
From as early as 2007 until as late as January 2010, Wallis and his co-conspirators made material false representations on HUD-1 forms, resulting in the disbursement of excess loan funds which they shared among themselves. As part of the conspiracy, Wallis and his co-conspirators found and recruited individuals to apply for loans to purchase homes and supplied the funds for the down payments on the home purchases, but falsely represented to HUD and to the lending banks that the borrowers were making the down payments. They created fake "gift letters," which falsely stated that the borrowers' relatives were providing the down payment funds as gifts to the borrowers.
In addition, Wallis and his co-conspirators falsely stated on HUD-1 forms that remodeling expenses had been incurred and had to be paid from loan proceeds by creating fake and inflated invoices for expenses for remodeling work that was never done. As a result, at closing, the title company disbursed loan funds to Wallis' company, Missouri Builders, based on the false statements on the HUD-1 forms and the false and inflated invoices. Wallis then paid kickbacks to his associates from the illegally obtained loan funds.
Most of the loans went into default, causing substantial losses to the United States and financial institutions.
Wallis, Festus, Missouri, previously pled guilty to one felony count each of conspiracy to commit bank fraud and make false statements and making false statements. He appeared today for sentencing before United States District Judge John Ross.
Joseph Brogan, a co-conspirator of Wallis, pled guilty last month to one count of conspiracy and two counts of bank fraud. He will appear for sentencing in May of this year.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General, the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.
Former DeKalb County Zoning Board of Appeals Member Pleads Guilty to BriberyRead the Press Release
ATLANTA – Jeremy “Jerry” Clark, a former member of the DeKalb County Zoning Board of Appeals, has pleaded guilty to a federal bribery charge. Clark accepted money in exchange for his vote allowing a business to operate as a late-night dance club.
“It took only $3,500 to subvert the purpose of this DeKalb zoning ordinance, which was to regulate the operation of late-night nightclubs,” said Acting United States Attorney John Horn. “This case demonstrates how a corrupt public official can sell out the legitimate interests of the communities and citizens he serves, solely for his own profit. DeKalb County citizens deserved better.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The guilty plea of Mr. Clark should remind those in public office of the serious consequences of succumbing to the temptations that can come their way. The FBI’s Public Corruption Program remains prepared to identify, investigate, and present for prosecution those individuals who would abdicate their integrity for personal greed.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: In November 2008, the DeKalb County (Georgia) Board of Commissioners passed a zoning ordinance that regulated the placement and operation of late-night establishments and nightclubs. As a general matter, the ordinance mandated that new businesses must obtain a Special Land Use Permit if they wanted to operate either as a late-night establishment or as a nightclub. The zoning ordinance provided an exception to the new rule for pre-existing late-night establishments and nightclubs, which allowed those businesses to be grandfathered in under the 2008 zoning ordinance change.
In DeKalb County, the Zoning Board of Appeals hears and decides zoning appeals when a property owner alleges that a county official committed a zoning error. From January 2009 to May 2013, Clark served as a member of the Zoning Board of Appeals.
Based on the zoning change, in September 2012, the DeKalb County Department of Planning and Sustainability issued a warning to the owner of a late-night establishment in Tucker, Ga., (“Business Owner”), advising him that the establishment could not operate as a nightclub without a Special Land Use Permit. The Business Owner responded that the establishment had operated as a nightclub prior to the 2008 zoning ordinance – and as a result, should be grandfathered in as a nightclub under the new zoning rule. Notably, almost a year earlier in November 2011, the Department of Planning and Sustainability had advised the late-night establishment in writing that it was grandfathered in only as a late-night business, could not operate as a nightclub, and could not have a dance floor.
Ultimately, the Business Owner appealed the decision to the DeKalb County Zoning Board of Appeals. Prior to the hearing on the appeal, Clark met with the Business Owner. During those meetings, the Business Owner made it clear to Clark, that if the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub, Clark would be rewarded. In November 2012, the Zoning Board of Appeals approved the Business Owner’s request to operate as a nightclub. Clark voted in favor of the Business Owner. Thereafter, the Business Owner paid Clark approximately $2000 in cash and donated approximately $1,500 to a non-profit interest with which Clark was involved.
On February 10, 2015, Clark, 42, of Lithonia, Ga., was charged in a criminal information with one count of bribery. The sentencing hearing is scheduled for April 30, 2015, at 10:00 a.m., before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States 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/.
Florida Man Pleads Guilty in Prescription Drug Diversion SchemeRead the Press Release
Yusef Yassin Gomez (Yassin), 49, of Fort Myers, Florida, pleaded guilty today in U.S. District Court in the Southern District of Ohio to one count of conspiracy to commit an offense against the United States in the distribution of prescription drugs without a license.
Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Antoinette Henry of the U.S. Food and Drug Administration’s (FDA) Metro Washington Field Office and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service (USPIS) announced the plea entered into today before U.S. District Judge Timothy S. Black in Cincinnati.
According to court documents, Yassin and others conspired to distribute diverted prescription drugs throughout the United States, including in the Southern District of Ohio, while concealing the true illicit sources of the drugs. The conspirators falsely represented on required pedigree documents that the source of the drugs was one of two Puerto Rico companies, including Yassin’s former company, B&Y Wholesale. The false pedigrees covered up the illegitimate sources of the drugs – various illicit, unlicensed suppliers – and falsely stated that B&Y was an authorized distributor of the prescription drugs.
“American consumers expect that prescription drugs will be safe and effective and should not face the risk that counterfeit, adulterated, misbranded, sub-potent or expired drugs will be sold to them,” said Acting Assistant Attorney General Branda. “The Department of Justice will prosecute those who engage in prescription drug diversion.”
For more than four years, Yassin allowed the drugs to pass through B&Y Wholesale in Puerto Rico before shipment out to a Minnesota company owned by a co-conspirator. The Minnesota company acquired the drugs from various illegitimate suppliers, and sold the diverted drugs to purchasers nationwide, including to pharmacies in Cincinnati. In addition to letting the diverted drugs ship through his company in Puerto Rico, Yassin made wire payments to the illicit suppliers in exchange for a commission. The illegally-sourced drugs were purchased by the Minnesota company at a significantly deeper discount than is offered on legitimately-sourced drugs, thereby generating higher revenues and profits.
“Once a prescription drug is diverted outside of the regulated distribution channels, it becomes difficult, if not impossible, for regulators, law enforcement and end-users to know whether the prescription drug package actually contains the correct drug or the correct dose,” said U.S. Attorney Stewart. “Patients purchased what they believed were FDA-approved prescription drugs that had remained in regulated distribution channels intended to protect against misbranded, adulterated, sub-potent, improperly handled, counterfeit and stolen products. Instead, these customers received drugs of unknown quality and origin.”
Yassin faces a statutory maximum sentence of five years in prison and a $250,000 fine. As part of his plea agreement, he will pay a money judgment of $750,000 representing proceeds from the scheme.
This matter is being investigated by the FDA and USPIS. Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are representing the United States in this case.