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Wednesday 17 December 2014
Owner of Dietary Supplement Company Pleads Guilty to Multi-Million Dollar Scheme to Adulterate Dietary SupplementsRead the Press Release
The owner and president of a dietary supplement manufacturing company in Flanders, New Jersey, pleaded guilty today to conspiracy to commit wire fraud in relation to a scheme in which he directed the sale of diluted and adulterated dietary ingredients and supplements sold by his company, U.S. Attorney Paul J. Fishman announced.
Barry Steinlight, 69, of Hackettstown, New Jersey, pleaded guilty to a one-count information charging him with conspiring to commit wire fraud. As part of his plea agreement, Steinlight admitted that Raw Deal’s gross sales during the scheme were between $7 million and $20 million. Steinlight has agreed to forfeit more than $1 million in profits from the scheme.
“Barry Steinlight diluted his products, cheated his customers and lied to the Food and Drug Administration when they came to inspect his company,” said U.S. Attorney Fishman. “This scheme went on for four years and essentially became the business model at his company. People who sell and use dietary supplements have the right to expect that the ingredients are listed and they get what they paid for.”
“This dietary supplement company owner ignored his basic obligations in his pursuit for profit,” said Acting Assistant Attorney General Joyce R. Branda for the Department of Justice’s Civil Division. “American consumers have a right to know that the dietary supplements they purchase are safe to consume and that the ingredients listed on the label are actually in the bottle. This case demonstrates the Department of Justice’s commitment to ensuring that those who deal products affecting the health and safety of consumers are law abiding and that wrongdoers will be held accountable.”
According to documents filed in this case and statements made in court:
Steinlight was the president and owner of Raw Deal Inc., a dietary supplement manufacturing facility. From at least 2009 through November 2013, Steinlight instructed Raw Deal employees to add “fillers,” including maltodextrin, viobin cocoa replacer and rice flours to the dietary ingredients and supplements packaged for, and sold to, Raw Deal’s customers. These “fillers” were added without customer consent or knowledge. Steinlight also directed Raw Deal employees not to list the “fillers” as ingredients on the certificates of analysis (COAs) issued to its customers as proof of the identity of the ingredients contained in the products.
In addition to directing the dilution and adulteration of Raw Deal’s products, Steinlight also directed Raw Deal employees to create COAs that falsely certified that certain of Raw Deal’s products were kosher or organic. Further during an U.S. Food and Drug Administration (FDA) inspection of Raw Deal in February 2012, Steinlight instructed Raw Deal employees to alter a document before providing it to the FDA.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigations, under the direction of Acting Special Agent in Charge James J. Royal, who investigated the case.
“When a company distributes adulterated and misbranded dietary supplements, they put consumers at risk,” said Acting Special Agent in Charge Royal. “Today’s plea agreement should serve as a reminder that FDA’s Office of Criminal Investigations will continue working with the Department of Justice to protect consumers from public health risks and fraud.”
The conspiracy charge carries a statutory maximum sentence of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 30, 2015.
The government is represented by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, Special Assistant U.S. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel, and Trial Attorneys Patrick Runkle and David Sullivan of the Civil Division’s Consumer Protection Branch. Paralegal Jeffrey Skonieczny of the U.S. Attorney’s Office also assisted in the criminal investigation.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office for the District of New Jersey shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $620 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Notice of Court Proceedings Status Hearing Scheduled for Former Lexington County Sheriff James R. MettsRead the Press Release
December 16, 2014Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Chief United States District Judge Terry L. Wooten will hold a status hearing in the case of United Sates v. James R. Metts, Case No. 3:14-cr-429.
WHEN: WHERE:Matthew J. Perry, Jr., Courthouse
Courtroom V
901 Richland Street
Columbia, SC 29201Nisland Woman Sentenced for FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Nisland, South Dakota, woman convicted of Access Device Fraud was sentenced on December 8, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Glenda Suhr, a/k/a Glennda Suhr, a/k/a Glenda Currier, age 59, was sentenced to 18 months in custody, 3 years of supervised release, $54,407 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction relates to Suhr fraudulently using the name and social security number of another person to open bank accounts and receive debit and cash cards from two banks, social security benefits, housing assistance, and food stamps, during the timeframe of the late 1980’s through 2013.
This case was investigated by Department of Social Security, Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Suhr was immediately turned over to the custody of the U.S. Marshals Service.
Newburgh Man Sentenced for Possession of Sexually Explicit Material Involving MinorsRead the Press Release
EVANSVILLE – Josh J. Minkler, Acting United States Attorney, announced today that Charles M. Prideaux, 47, Evansville, Indiana, was sentenced to 60 months in prison by Chief U.S. District Judge Richard L. Young for possession of sexually explicit material involving minors. This case was the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force and the Evansville Police Department.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Distributing pornography re-victimizes our children every time it is passed from one person to another.”
Prideaux pleaded guilty to the charge immediately before being sentenced yesterday. Prideaux admitted that he used a laptop computer to search for and download child pornography using file sharing software that he loaded on to the computer system. Prideaux operated the computer from his residence in Evansville, Indiana, before the computer was seized by law enforcement investigators on November 1, 2012.
According to Assistant U.S. Attorney, Todd Shellenbarger, who prosecuted the case for the government, Judge Young also imposed a 10 year term of supervised release. During the period of supervised release, Prideaux must register as a sex offender, participate in a sex offender treatment program, and cannot have any unsupervised contact with minors. The Court also ordered the forfeiture of computer equipment used in the offense which will be destroyed by the government. Prideaux must submit to drug testing while on supervision.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood, marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resource.”
New York Man Indicted on Heroin Charge and for Possession of Body ArmorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New York man was indicted by a federal grand jury in Harrisburg on charges of possessing 2,500 bags of heroin and body armor during a traffic stop on September 17, 2014.
According to United States Attorney Peter Smith, Terrence T. Byrd, age 37, New York, NY, was charged in a two count indictment with possessing heroin with the intent to distribute and with illegally possessing body armor. Byrd was allegedly stopped by the Pennsylvania State Police for a traffic violation on Interstate 81 in Lower Paxton Township. During a search of the vehicle, troopers recovered body armor and 2,500 bags of heroin. Byrd fled on foot when the contraband was discovered but was apprehended after a brief chase.
Byrd, if convicted, faces up to 20 years imprisonment on the heroin possession charge and a sentence of up to life imprisonment if convicted on the charge of illegally possessing body armor.
The matter was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the Drug Enforcement Administration’s Harrisburg Resident Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New York Man Charged with Cocaine Distribution ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg today indicted a New York City man on charges involving unlawful distribution of cocaine.
According to United States Attorney Peter Smith, Wesley Jackson, 50, New York, NY was indicted on charges of unlawfully distributing cocaine and conspiring to distribute cocaine from September to November 2014. Jackson was also charged with using a facility in interstate commerce to cause money to be electronically transferred from Pennsylvania to New York via a money exchange service. The funds allegedly represented the proceeds of illegal drug trafficking. Jackson, if convicted, faces a combined maximum term of imprisonment of 50 years and fines totaling $2,250,000.00.
The case was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office and the Harrisburg Police Department. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New Orleans C.P.A. Charged with Embezzling over $1.7 MillionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, of New Orleans, was charged yesterday in a Bill of Information with one count of Wire Fraud alleging embezzlement which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).
According to documents filed in federal court, for the past thirty years, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A. In October 2007, Clovelly Oil hired GARDNER as a part-time bookkeeper. GARDNER was responsible for recording the receipts and disbursements for Clovelly and preparing the royalty checks for Clovelly’s more than two-hundred owners. In addition, GARDNER handled the bi-weekly payroll for all of Clovelly’s employees and he was responsible for paying himself.
Beginning in August, 2010, and continuing until his termination in May 2014, GARDNER embezzled $1,798,000 from Clovelly Oil by manipulating the bi-weekly payroll records of Clovelly. Every two weeks, GARDNER logged into Clovelly’s on-line bank accounting system using his username and password given to him so he could prepare Clovelly’s payroll and increased his bi-weekly compensation by sometimes as much as $20,000. GARDNER diverted the illegally obtained funds into bank accounts held by the defendant. According to the Bill of Information, GARDNER used the embezzled funds to satisfy gambling debts incurred at a New Orleans casino.
The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Navajo Man Sentenced to 14 Years Imprisonment for Child AbuseRead the Press Release
PHOENIX – On Dec. 15, 2014, Pernell Corna Sam, 38, of Chinle, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 168 months imprisonment followed by five years of supervised release. Sam pleaded guilty on Aug. 14, 2014, to one count of assault on a child resulting in serious bodily injurySam’s co-defendant, Shonya Sam, also pleaded guilty to one count of assault on a child resulting in serious bodily injury, and was sentenced to 168 months imprisonment on July 1, 2014.
Between Jan. 7 and Jan. 11, 2013, Pernell Sam and Shonya Sam, both members of the Navajo Nation, physically abused a seven-year old relative resulting in serious injuries. The victim was hospitalized and continues to undergo therapy as a result of her injuries.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Sharon Sexton and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8020-PCT-DLR
RELEASE NUMBER: 2014-075_SamFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Naples Man Indicted for Additional Armed Bank RobberyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of a superseding indictment charging John Robert Haldemann (30, Naples) with three counts of armed bank robbery. He faces a maximum penalty of 25 years in federal prison for each robbery. The indictment also notifies Haldemann that the United States is seeking a money judgment in the amount of $14,308.00, the total proceeds of the robberies.
According to the superseding indictment, Haldemann committed three armed bank robberies in Southwest Florida, including Capital Bank in Venice; Wells Fargo Bank in Naples; and a Bank of America in Punta Gorda.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force, the Punta Gorda Police Department, the Naples Police Department, the Collier County Sheriff’s Office, the Venice Police Department, and the Sarasota County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Mission Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on December 15, 2014, by U.S. District Judge Roberto A. Lange.
Jesse James Beauvais, age 43, was sentenced to 2 months in custody, 2 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Beauvais was indicted by a federal grand jury on June 10, 2014. He pled guilty on September 22, 2014.
The conviction stems from an incident that occurred between January 5, 2013, and January 11, 2013, when two search warrants were obtained for Beauvais’ residence. Over a kilo of marijuana, $8,447.00 in cash, four firearms, two bullet proof vests, and other drug-related items were seized from the residence.
This case was investigated by the Northern Plains Save Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Beauvais was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Charged with Second Degree Murder, Assault and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder, Assault Resulting in Serious Bodily Injury, and Child Abuse.
Tyler Erickson, Sr., a/k/a TJ Erickson, age 31, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, 5 years of supervised release, and $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 11, 2013, Erickson unlawfully and with malice murdered and assaulted a human being who had not attained the age of 18 years old. The Indictment also alleges that between August 1, 2013, and August 10, 2013, Erickson abused, exposed, tortured, and cruelly punished two children who had not attained the age of 7 years old.
The charges are merely accusations and Erickson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Erickson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Charged with Aggravated Sexual Abuse, Assault and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Child Abuse.
Frederick Leo Marshall, age 56, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, not less than 5 years of supervised release, and $700 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 30, 2014, Marshall knowingly engaged and attempted to engage in a sexual act with a female victim. He also allegedly assaulted the same victim with a sword, which resulted in serious bodily injury. On the same date, Marshall allegedly abused, exposed, tortured, tormented, and cruelly punished four minor victims.
The charges are merely accusations and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Milwaukee Man Sentenced to 6 Years in Prison for Unemployment Insurance Fraud and identity TheftRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that, on December 16, 2014, Calvin V. Sanders (52) of Milwaukee, Wisconsin was sentenced in the United States District Court to a total of 76 months imprisonment for his involvement in an unemployment insurance fraud scheme and aggravated identity theft.
In addition to Sanders, four other individuals were convicted of participating in the scheme to defraud by obtaining unemployment insurance benefits through mail and wire fraud. Sanders’ co-conspirators, Travis Arrington (29), Ebony Bates (36), Nicole Porter (39) and Jacob Shaw-Downey (25), received sentences ranging from time served to 10 months imprisonment. Arrington, Bates, and Shaw Downey are Milwaukee residents, and Porter is a resident of Gary, Indiana. In the course of the scheme, the conspirators obtained a total of $357,420 in unemployment insurance benefits from the Wisconsin Department of Workforce Development. The court ordered that $357,420 in restitution be paid by the defendants jointly and severally.
Unemployment insurance benefits are provided by the federal and state government to individuals who have suffered involuntary job loss. According to information disclosed in court, Sanders created several fictitious companies for the purpose of defrauding the government of unemployment insurance benefits. Many accounts were created using the unlawfully obtained names and Social Security Numbers of unsuspecting individuals who were then registered as employees of the fictitious companies for the purpose of receiving unemployment insurance benefits despite the fact that no work was ever performed. In some instances, accounts were created in the names of individuals who knowingly participated in the scheme to defraud the government. A number of the identity theft victims resided in a rehabilitation center located in Gary, Indiana, where co-conspirator Nicole Porter was employed as certified nursing assistant.
In announcing these sentences, United States Attorney Santelle said: “The criminal conduct of these defendants, acting both individually and collectively, defrauded the government of significant amounts of money intended for the legitimate benefit of citizens who have lost employment involuntarily. The sentences imposed on them reflect the serious nature of the fraud and the purposeful victimization of individuals and government programs.” Santelle specifically commended the agents and staff of the United States Department of Labor, the United States Postal Inspection Service, the Wisconsin Department of Justice, and the Wisconsin Department of Workforce Development for their “purposeful, comprehensive, and effective identification and investigation of these defendants, resulting in their criminal convictions and the sentences imposed on them this week.”
“The prosecutions illustrate the Office of Inspector General’s commitment to combating unemployment insurance fraud. We would like to thank the Wisconsin Department of Workforce Development for their support in identifying the unemployment insurance fraud and their investigative partnership in ensuring the accountability and integrity of the program,” stated James Vanderberg, Special Agent-in-Charge of the United States Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Chicago.
The case was investigated by the United States Department of Labor in collaboration with the Wisconsin Department of Justice – Division of Criminal Investigation, the Wisconsin Department of Workforce Development, and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Tracy M. Johnson.
Miami Man Sentenced in $2.3 Million Identity Theft Tax Refund Check Cashing ScamRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Cincinnati Field Office, Kelly R. Jackson, Special Agent in Charge, IRS-CI, Miami Field Office, and Ronald Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Field Office, announce that Christopher Jackson, 42 of Miami, was sentenced to 78 months in prison, followed by three years of supervised release after pleading guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, for a tax refund scheme that resulted in the cashing of over $2.3 million in fraudulent tax refund checks.
According to the evidence presented at sentencing, from in or around January 2012 through in or around April 2014, the defendant obtained over five hundred fraudulently obtained U.S. Department of Treasury tax refund checks totaling over $2.3 million. The defendant subsequently sent these tax refund checks to a check casher in Cincinnati for cashing. The check casher mailed cash back for these checks to the defendant in Miami. The defendant did not have the authorization of the taxpayer and the defendant supplied either false identification documents or no identification documents to the Cincinnati check casher. Many of the tax refund checks had been obtained using the identity information of people who typically do not file tax returns, such as deceased persons, prisoners, and elderly individuals.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Attorney Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Rashmi Airan-Pace (42, Miami) today pleaded guilty, in Miami, to conspiracy to commit wire, mail, and bank fraud. The Plea Agreement and Information were filed in Tampa and then transferred to the U.S. District Court for the Southern District of Florida, where Airan-Pace pleaded guilty to other charges. As part of the agreement, Airan-Pace will also forfeit property, including $26,973.81, which represents title insurance premiums she earned. Airan-Pace faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners of the property then engaged in a plan to convert the complex from rental apartments to condominium units. The developers financed their purchase of The Arbors with a loan from Corus Bank, a financial institution whose deposits were insured by the FDIC. The loan agreement imposed strict conditions upon the timing of the conversion process. It prohibited the developers from filing a Declaration of Condominium or closing on any condominium unit unless they had sales on 80 units, and closed on all of them within 45 days of the closing on the sale of the first unit. The loan agreement also specified that Corus Bank was to receive 100% of the net proceeds of the sale of the first 80 units, and that all of these events were to occur within one year of the loan agreement. Under the terms of the Corus loan, no money could go to the buyers and there could be no transactions outside of the HUD-1 settlement statement.
Airan-Pace's role in the conspiracy as the escrow agent included conducting closings on units being sold at The Arbors. She also facilitated the inclusion of material misrepresentations in the closing documents, including the HUD-1 settlement statements. In the process, she facilitated the transfer of funds through accounts under her direct control, knowing that the funds being paid to the buyers were not disclosed in the HUD-1 or to the mortgage lenders, even while verifying and attesting to the accuracy and truthfulness of the HUD-1’s in aid of the scheme.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay Hoffer and Special Assistant United States Attorney Chris Poor.
Mexican National Guilty of Immigration OffenseRead the Press Release
United States Attorney Kenneth A. Polite announced that APOLINAR MONJE-SANCHEZ, age 42, a native of Mexico, pled guilty today to a one-count indictment for illegal entry of a removed alien.
According to court documents, on October 1, 2014, MONJE-SANCHEZ was found in the United States after having been previously removed from the United States on April 29, 2010.
MONJE-SANCHEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Susie Morgan set sentencing for April 8, 2015.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mastermind of $56 Million Medicare Fraud Scheme and Doctor Plead GuiltyRead the Press Release
The organizer of a $56 million Medicare fraud conspiracy and an accomplice physician pleaded guilty today in federal court in Louisiana to health care fraud charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.
Mark Morad, 51, of Slidell, Louisiana, and Dr. Divini Luccioni, 53, of Kenner, Louisiana, each pleaded guilty before Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana today. Morad pleaded guilty to conspiracy to commit health care fraud and conspiracy to falsify records in a federal investigation. Dr. Luccioni pleaded guilty to conspiracy to commit health care fraud. Sentencing hearings for each are scheduled for April 1, 2015.
According to court documents, Morad directed a Medicare fraud scheme through multiple New Orleans-area companies he owned, including Interlink Health Care Services Inc., Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, and Med Rite Pharmacy Inc. Morad controlled all aspects of these companies, from hiring to deciding what services would be billed. The companies claimed to provide home health services and durable medical equipment (DME) to thousands of Medicare beneficiaries living in and around New Orleans.
Morad paid kickbacks to recruiters who canvassed New Orleans neighborhoods for Medicare beneficiary numbers, which Morad then used to bill Medicare for services that were not medically necessary or not provided. Dr. Luccioni admitted that he signed home health referrals and wrote DME prescriptions that were used to support these fraudulent billings. Specifically, court documents show that Dr. Luccioni falsely certified that beneficiaries were homebound and qualified for home health services, and that he wrote prescriptions for power scooters and other DME that he knew the purported beneficiaries did not need.
When a federal grand jury subpoenaed records from another company Morad owned, he and others fabricated tax and employment records to conceal the companies’ illegal activities and mislead the grand jury.
Medicare billing records showed that between 2007 and 2014, Morad’s companies submitted more than $56 million in claims to Medicare, a vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. This case was prosecuted by William G. Kanellis of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Marion County Convicted Felon Facing 15 Years to Life for Possession of A FirearmRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Jermaine Lamar Harris (31, Ocala) pleaded guilty today to one count of possession of a firearm by a convicted felon. He faces a mandatory minimum term of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in August 2014, Harris sold cocaine and three firearms to a confidential informant working with law enforcement. All of the transactions were video-recorded. Specifically, on August 13, 2014, Harris sold the informant cocaine and a revolver. Six days later, the informant returned to Harris’s residence and purchased additional cocaine from him. Finally, on August 26, 2014, Harris arranged for the informant to purchase a semi-automatic handgun from another person. As they waited for that person to arrive, Harris sold the informant an unloaded rifle that Harris kept in his residence. When the second person sold the informant a handgun, Harris kept the money from that transaction as well. Harris was subsequently arrested on September 23, 2014.
Harris was a previously convicted felon at the time of the offenses and was therefore prohibited from possessing firearms or ammunition under federal law. His numerous prior drug sale convictions qualify him for a sentencing enhancement as an Armed Career Criminal under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in our communities.
Maria C. Edrosa Sentenced to 78 Months in PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the sentencing of defendant MARIA C. EDROSA by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. EDROSA was one of the defendants in the Organized Crime Drug Enforcement Task Force (OCDETF) case, United States v. Sardoma, et al. Defendant EDROSA received a 78-month sentence of imprisonment and three years of supervised release to follow, for disposal of a firearm to a felon, defendant Mateo Sardoma, in violation of 18 U.S.C. § 922(d)(1) and 18 U.S.C. § 924 (a)(2). The Court took into account the participation of defendant EDROSA in a Conspiracy to Distribute Methamphetamine run by her boyfriend, Mateo Sardoma.
The drug conspiracy involved a scheme to bring methamphetamine to Guam from the Philippines and California. This methamphetamine was traded for firearms, stolen items and for cash. Large amounts of cash were mailed to California including $35,000 on March 24, 2011 and $59,900 sent again on April 18, 2011 in exchange for multiple pound quantities of methamphetamine. Sardoma and EDROSA made improvements to their Dededo residence between April and June of 2011 in cash payments to the contractor of approx. $53,340. Defendant EDROSA assisted in the distribution of these narcotics, the shipment of cash through the mails and she purchased airline tickets to further the scheme. She also furnished a firearm to defendant Sardoma for use in the narcotics conspiracy. The firearm furnished by EDROSA was used by Sardoma to maintain control of the methamphetamine organization, and in the kidnapping, torture and brutal assault of one victim on October 24, 2011.
U.S. Attorney Limtiaco stated, "Our community is not immune from the poison of methamphetamine. This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam." This conviction resulted from the concerted efforts of law enforcement partners in the OCDETF investigation, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
The investigating agencies include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Department of Homeland Security/U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI), U.S. Coast Guard Investigative Service (USCGIS), U.S. Postal Inspection Service (USPIS), Guam Police Department (GPD) and Guam Customs & Quarantine Agency (GC&QA). The case was prosecuted by Assistant United States Attorneys Frederick Black and Stephen Leon Guerrero.
Manhattan U.S. Attorney Announces Arrests of International Arms Traffickers for Conspiracy to Kill Americans and Related Terrorism ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele Leonhart, Administrator of the United States Drug Enforcement Administration (“DEA”), announced today the arrests of CRISTIAN VINTILA (“VINTILA”), MASSIMO ROMAGNOLI (“ROMAGNOLI”), and VIRGIL FLAVIU GEORGESCU (“GEORGESCU”), international arms traffickers charged with conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”) – a designated foreign terrorist organization – to be used to kill Americans in Colombia. VINTILA and GEORGESCU were arrested in Podgorica, Montenegro, by Montenegrin authorities Monday as they prepared to finalize the transaction. ROMAGNOLI was arrested in Montenegro yesterday by Montenegrin authorities.
U.S. Attorney Preet Bharara said: “As alleged, Vintila, Romagnoli, and Georgescu attempted to sell military-grade weapons, from pistols to rocket launchers, to people they believed were associated with a terrorist group. Now they will no longer be able to participate in this illicit trade.”
DEA Administrator Michele Leonhart said: “Ruthless global weapons traffickers pose a direct threat to the safety and stability of the United States and to the rule of law. DEA's strong international partnerships have once again made the difference in disrupting a conspiracy that could have put innocent American lives in grave danger. Nothing is more important than the overall safety and security of our citizens. Thankfully, these alleged conspirators are out of business and will hopefully soon face U.S. justice.”
According to the Indictment unsealed yesterday in Manhattan federal court:
Since May 2014, VINTILA has been a Romania-based weapons trafficker, ROMAGNOLI has been a Europe-based weapons trafficker, who is able to procure fraudulent end-user certificates (“EUCs”) for military-grade weaponry, and GEORGESCU has been a Romania-based weapons broker. Between May and October 2014, VINTILA, ROMAGNOLI, and GEORGESCU conspired to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, with the understanding that the weapons would go to the FARC to be used by the FARC against the United States. During a series of recorded telephone calls and in-person meetings, VINTILA, ROMAGNOLI, and GEORGESCU agreed to sell the weapons to three confidential sources working with the DEA (“CSs”), who represented that they were acquiring these weapons for the FARC. VINTILA, ROMAGNOLI, and GEORGESCU agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes. ROMAGNOLI further agreed to provide fraudulent EUCs, in order to make the illegal sale of weapons look legitimate.
During their consensually recorded meetings, VINTILA and ROMAGNOLI provided the CSs with catalogues of military-grade weapons they were prepared to provide the FARC. VINTILA gave the CSs a catalogue of weapons that included pistols, machine guns, and other high-powered weaponry, and ROMAGNOLI showed the CSs a catalogue that included automatic weapons and shoulder-fired rocket launchers. ROMAGNOLI additionally showed one of the CSs a sample fraudulent EUC. VINTILA, ROMAGNOLI, and GEORGESCU also discussed the logistics of receiving payment for the weapons from the CSs and delivering the weapons to the FARC.
The Indictment charges VINTILA, 44, ROMAGNOLI, 43, and GEORGESCU, 42, with two separate terrorism offenses:
Count One charges all three defendants with conspiracy to kill United States officers or employees, in violation of Title 18, United States Code, Sections 1114 and 1117. If convicted of Count One, each defendant faces a maximum sentence of life in prison. Count Two charges all three defendants with conspiracy to provide material support or resources to a designated foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B. If convicted of Count Two, each defendant faces a maximum sentence of 15 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative efforts of the DEA’s Special Operations Division, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian Authorities. The arrests are also the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the National Security Division of the U.S. Department of Justice, and the Justice Department’s Office of International Affairs.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrea Lee Surratt and Ilan Graff are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Vintila et al. Indictment
Local Artist Sentenced for ObsecenityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Lawrence F. Brose, 63, of Buffalo, NY, who was convicted of importation or transportation of obscene matters, was sentenced to two years probation to include computer monitoring.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the investigation against the defendant began after a German police agency contacted United States Immigration and Customs Enforcement and advised them that an IP address in the United States downloaded some images of suspected child pornography. ICE Special Agents determined that the IP address was registered to Brose. Agents met with the defendant and during the meeting, Brose admitted to viewing images. An examination of the defendant’s computer resulted in agents finding various images, including one of a minor male less than 16 years of age engaging in sexually explicit conduct.
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 was the culmination of an investigation on the part of Special Agents of United States Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of James C. Spero.
Lebanese Weapons Smuggler Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Yasser Ahmad Obeid (20, St. Petersburg and Lebanon) to four years and three months in federal prison for conspiring to smuggle firearms and attempting to export firearms from the United States. Obeid pleaded guilty on October 8, 2014.
According to court documents, Obeid and his co-defendant, Jordanian National Mahmoud Abdel-Ghani Mohammad Assaf were part of a network of individuals involved in smuggling firearms from the United States to the Middle East by concealing them in vehicles purchased at used car auctions in the Central Florida area, and then exporting them overseas. Obeid worked for Assaf and others to acquire the firearms and also acted as Assaf’s translator and middle-man in arranging the purchases from various sources. The men were arrested after Obeid arranged for Assaf to purchase 30 Glock firearms from an individual who, unbeknownst to the men, was an undercover federal agent.
The case against Assaf is still pending trial.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Tampa National Security Group. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
Las Cruces Man Sentenced to Eight Years in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Manzanares Prosecuted as Part of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – George Arthur Manzanares, 44, of Las Cruces, N.M. was sentenced this morning in Las Cruces federal court to 96 months in federal prison for violating the federal firearms laws. Manzanares will be on supervised release for three years after completing his term of incarceration.
Manzanares was arrested in Mar. 2013, on a criminal complaint charging him with being a felon in possession of a firearm. The complaint alleged that Manzanares unlawfully possessed a firearm and ammunition from Sept. 30, 2011 through Dec. 5, 2011, in Doña Ana County, N.M. At the time, Manzanares was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses, including aggravated assault with a deadly weapon and trafficking a controlled substance. In Sept. 2013, Manzanares was indicted and charged with three counts of being a felon in possession of a firearm.
On April 9, 2014, Manzanares entered a guilty plea to the three-count indictment and admitted unlawfully possessing firearms and ammunition on Sept. 30, 2011, Oct. 19, 2011, and Dec. 5, 2011. In his plea agreement, Manzanares admitted selling firearms and ammunition to an undercover agent on each of the three dates.
This case was investigated by the Southern New Mexico Gang Task Force of the Las Cruces office of the FBI and the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The case was prosecuted as part of a federal anti-violence initiative that targets the “worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with new Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Lakeland Cocaine Dealer Sentenced to 10 Years for Cocaine TraffickingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Kesner Joly (53, Lakeland) to 10 years in federal prison for conspiracy to distribute cocaine. Joly pleaded guilty on September 3, 2014.
According to court documents, Joly was a kilogram-level cocaine distributor in the Central Florida area. On multiple occasions in 2013, he acquired kilograms of cocaine from South Florida and delivered the drugs to individuals located in the Middle District of Florida. During the conspiracy, Joly distributed at least five kilograms of cocaine in this fashion. Law enforcement seized a total of four kilograms delivered by Joly, as well as $68,000 from prior cocaine transactions.
This case was investigated by the Drug Enforcement Administration, the Polk County Sheriff’s Office, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Jury Finds Man Guilty of Second Degree Murder on the Meskwaki National SettlementRead the Press Release
A man who used a machete to kill his parents on the Meskwaki Nation Settlement was convicted by a jury today after an eight-day trial in federal court in Cedar Rapids.
Gordon Lasley, Jr., age 26, from the Meskwaki Nation Settlement, Iowa, was convicted of two counts of second degree murder in “Indian country.” The verdict was returned this afternoon following about one day of jury deliberations.
The evidence at trial showed that, on February 5, 2014, Lasley murdered Gordon Lasley, Sr. and Kim Renee Lasley at their home on the Meskwaki Nation Settlement by striking them with a machete. Lasley’s attorneys unsuccessfully argued Lasley was insane at the time of the murders and should not be held criminally responsible for the murders.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Lasley remains in custody of the United States Marshal pending sentencing. Lasley faces a possible maximum sentence of life imprisonment, a $500,000 fine, $200 in special assessments, and up ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys CJ Williams and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police Department, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00045.Jury Convicts Chicago Couple on All Counts Chargedin Multi-million Dollar State Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A jury in Springfield, Ill., deliberated approximately five hours today before returning guilty verdicts on all counts charged against Leon Dingle, Jr., and his wife, Karin Dingle, of Chicago. The Dingles were charged with taking $3.35 million from grant funds awarded by the Illinois Department of Public Health for their personal benefit and to pay personal expenses. Sentencing is scheduled on April 9, 2015, before U.S. District Judge Richard Mills.
During the time of the fraud scheme, from 2004 to June 2010, the Dingles owned and operated the for-profit corporation known as Advance Health, Social and Educational Associates, Inc., (AHSEA). Leon Dingle, 77, served as the president, CEO, treasurer, and sole shareholder of AHSEA; Karin Dingle, 75, served as vice-president and secretary. Leon and Karin Dingle were charged with using non-profit organizations as straw grantees to fraudulently solicit and obtain more than $11 million in grant funds from the Illinois Department of Public Health. The majority of the grant funds were non-competitively awarded and paid up-front, for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness.
“Today, the court specifically noted its appreciation for the excellent work of the law enforcement agents and to all parties involved in the presentation of the case to the jury over eight weeks of trial,” said U.S. Attorney Lewis. “We too, are extremely appreciative of the extraordinary work by the agents of the U.S. Postal Inspection Service, IRS Criminal Investigation, and the Illinois Secretary of State’s Office of Inspector General. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois.Two co-defendants, Jacquelyn Kilpatrick, 59, and Edmond Clemons, 68, previously entered pleas of guilty related to their respective roles in the fraud. Kilpatrick, bookkeeper and vice-president of operations for AHSEA, pled guilty on Oct. 17, 2014, to one count of mail fraud and to an information charging her with filing a false income tax return. Kilpatrick is scheduled for sentencing on Feb. 18. Kilpatrick, with Clemons, also operated another business, known as Jeck Consultants, LLC. On Oct. 2, 2014, Clemons pled guilty to an information charging him with filing a false income tax return. Sentencing for Clemons is scheduled on Feb. 12, 2015.
At sentencing, the maximum statutory penalty for conspiracy to defraud (one count as to each defendant) is up to five years in prison; for each count of mail fraud (Leon Dingle 10 counts; Karin Dingle four counts) and for money laundering (Leon Dingle two counts; Karin Dingle one count) the penalty is up to 20 years in prison.
James Cameron Sentenced to 15 and 3/4 Years on Child Pornography and Contempt ChargesRead the Press Release
Contact: Donald E. Clark
Gail Fisk Malone
Assistant United States Attorneys
Tel: (207) 780-3257Bangor, Maine: The United States Attorney’s Office announced that James M.
Cameron, 52, formerly of Hallowell, Maine, was sentenced in U.S. District Court by Chief
Judge John A. Woodcock, Jr., to 15 and 3/4 years in prison to be followed by six years of
supervised release. On August 23, 2010, following a six-day bench trial, the defendant was
found guilty by Chief Judge Woodcock of 13 counts of transporting, receiving and possessing
child pornography. Following the conviction, the defendant was jailed. He was indicted on
February 11, 2009.The Indictment arose out of four types of activity that occurred over a 17-month period
between July 2006 and December 2007: (1) the uploading of child pornography images and
videos by the defendant from a computer in his residence to Yahoo! photo albums and briefcases
he created; (2) the sending and receiving of child pornography over Google Hello, a free chat
and file sharing computer program, by the defendant using laptop computers he carried while on
trips and family vacations; (3) the receipt by the defendant of e-mails containing child
pornography; and (4) the possession of child pornography on computers found at his residence.
All of the computers were seized from his residence on December 21, 2007 during the execution
of a search warrant.On March 10, 2011, Chief Judge Woodcock sentenced the defendant to 16 years in prison
and 10 years of supervised release. On August 9, 2011, the 1st Circuit Court of Appeals (“1st
Circuit”) granted the defendant’s motion to be released on bail pending appeal and he was
released on August 11, 2011. On that same date, Chief Judge Woodcock set bail conditions
including that the defendant submit to active GPS location monitoring. On November 14, 2012,
the 1st Circuit reversed the defendant’s convictions on six counts but affirmed his convictions on
the seven remaining counts. As a result, the defendant remained convicted of transporting,
receiving and possessing child pornography.Following 1st Circuit’s decision on the appeal, the defendant cut off his GPS location
monitoring bracelet and fled in violation of the bail order. On December 2, 2012, he was
arrested by United States Marshals in New Mexico and thereafter returned to Maine. On
February 19, 2013, he pled guilty to Criminal Contempt for violating the bail order.From August 1990 until April 2008, the defendant worked as an Assistant Attorney
General for the State of Maine, primarily handling drug prosecutions.At re-sentencing, Chief Judge Woodcock found that the offenses involved 150-300 child
pornography images, that the images depicted prepubescent children, sadistic and other violent
conduct, that the defendant traded the images in order to obtain such images from others, that the
defendant did not accept responsibility for his conduct by waiting to admit his guilt until after he
was convicted and that the defendant obstructed justice when he fled.The Office of the United States Attorney praised the investigation conducted by the
Maine State Police Computer Crimes Unit and the United States Marshals Service.Indictment: Kansans Were Victims of Cancer Cure Fraud SchemeRead the Press Release
TOPEKA, KAN. – A Tulsa woman who used the Internet to market what she called her “secret sauce” to cancer victims in Kansas and elsewhere was indicted Wednesday on 13 counts of wire fraud, U.S. Attorney Barry Grissom said.
A federal grand jury returned a 13-count indictment against Maureen Long, 64, Tulsa, Okla. The indictment alleges Long’s Internet-based business, Camelot Cancer Care, Inc., preyed on people who were desperately seeking cures for cancer by selling them infusions of drugs that were misbranded and not approved for treating cancer.
Long, who was not a physician, a nurse or any other kind of licensed medical professional, used her Web site and email to create the false impression she was running a legitimate medical clinic. She sold clients drugs that the Food and Drug Administration – she called it the “Federal Death Administration” -- had not approved for treating cancer.
Eleven Kansas residents paid more than $128,000 total for Long’s treatments. Residents of Kansas towns including Lenexa, Spring Hill, Hartford, Prairie Village, Hesston, Ottawa and Mt. Hope were among the victims. They had been diagnosed with illnesses including ovarian cancer, esophageal cancer, rectal and lymph cancer, non-Hodgkin’s lymphoma, cervical cancer, non-small cell lung cancer, brain tumor and breast cancer.
The indictment also alleges Long:
- Falsely claimed that Camelot had a 60 percent success rate resulting in either remission of cancer or stopping a tumor’s growth.
- Marketed something she called the “DMSO Protocol,” which was supposed to consist of DMSO, Vitamin C and Vitamin B-17 (also known as Amygdalin or Laetrile). A forensic chemical analysis of some of the products, however, found neither DMSO nor Laetrile.
- Distributed marketing materials claiming the infusion she sold would cut through malignancy “like a scythe through a wheat field.”
- Charged $12,000 or more for a first round of treatment and $3,600 for each subsequent round.
- Instructed clients to forego traditional treatments of radiation and chemotherapy.
If convicted, Long faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Food and Drug Administration investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
Idabel Woman Arraigned for Murder During Perpetration of Child Abuse of Two Year Old GirlRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAKOTA LANE WILLISTON, age 19, of Idabel, Oklahoma was arraigned in federal court today.
The defendant is charged with Murder in the First Degree in Indian Country Committed During the Perpetration of Child Abuse, in violation of Title 18, United States Code, Sections 1111, 1151 and 1153, punishable by imprisonment for life and/or up to $250,000.00 fine.
The Indictment alleges that on about July 23, 2013, in the Eastern District of Oklahoma, in Indian country, DAKOTA LANE WILLISTON, an Indian, did unlawfully kill Payton Cockrell, a 2 year old female human being, during the perpetration of child abuse, as defined by Title 18, United States Code, Section 1111(c)(3), against Payton Cockrell.
The charges are a result of an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the McCurtain County Sheriff’s Office and the Choctaw Nation Tribal Police.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was remanded into the custody of the United States Marshal Service.
Assistant United States Attorney Dean Burris represented the United States.
Horse Trainer Pleads Guilty to Rigging RacesRead the Press Release
A Central Pennsylvania thoroughbred horse trainer who races horses at Penn National Race Course in Grantville pled guilty in Dauphin County Court in Harrisburg yesterday to rigging races by administering drugs to horses on race day in violation of rules and regulations banning such treatment.
The United States Attorney’s Office for the Middle District of Pennsylvania and the Dauphin County District Attorney’s Office announced that David J. Wells, 50, Grantville, pled guilty before Court of Common Pleas Judge Deborah E. Curcillo to a charge of rigging publicly exhibited contests, in this case, thoroughbred races at Penn National Race Course. The offense is punishable by up to 5 years imprisonment and a $10,000 fine. Judge Curcillo ordered the preparation of a presentence investigation report and set sentencing for January 29, 2015.
The prosecution stemmed from an investigation conducted by the FBI, the Pennsylvania Department of Agriculture’s Racing Commission, the Pennsylvania State Police and the Dauphin County District Attorney’s Office into alleged wrongdoing in races at Penn National Race Course. As part of the investigation, Daniel Robertson, the official clocker at Penn National, was indicted in U.S. District Court on federal wire fraud charges in November 2013 and pleaded guilty on July 22, 2014.
The Wells investigation was transferred to the Dauphin County District Attorney’s Office for prosecution of the violation of state law. Assistant United States Attorney William A. Behe was specially appointed by Dauphin County District Attorney Edward Marsico as a Deputy District Attorney to handle the Wells prosecution.
At the guilty plea hearing yesterday, Wells admitted that he orally or by hypodermic injection illegally administered drugs to horses he trained and raced to give him and his horses an advantage in the races and that he was fully aware that this was in violation of racing rules and regulations. Wells also said that efforts were made to conceal this activity from the public and the Racing Commission. The criminal complaint, filed in October 2014, alleged that the activity took place between 2008 and 2012.
Honolulu Businessman Indicted on Tax ChargesRead the Press Release
HONOLULU – A federal grand jury today indicted Albert S.N. Hee of Honolulu on seven counts of corrupt interference with the administration of the Internal Revenue laws and six counts of submitting a false tax return for the years 2007, 2008, 2009, 2010, 2011, and 2012. The indictment superseded a prior one-count indictment in September 2014, which had charged the false tax return for 2007 alone.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the superseding indictment alleges that:
- from 2002 to 2012, Hee caused Waimana Enterprises Inc. (WEI), a company incorporated by Hee and the stock of which is owned by Hee, to pay a total of $4,063,294.39 of his personal expenses, including $718,559.09 used to pay for tuition, books and rent payments for Hee’s three college age children; a purchase of a house in Santa Clara, CA for $1,313,261.34 and used exclusively by Hee’s two children; $33,523.00 of college tuition payments for Hee’s child; $92,000.00 in payments for personal massages for Hee; $121,878.87 in personal credit card charges by Hee; $722,550.39 in false wages paid to Hee’s three children who did no work for WEI; $590,201.56 of false wages paid to Hee’s wife who did no work for WEI; $443,103.64 of false employment benefits paid on behalf of Hee’s three children and wife who did no work for WEI, and $28,216.50 of cash withdrawals by Hee.
- Albert Hee instructed an employee of WEI to pay some of these expenses, and classify them as business educational expenses. Hee’s return preparer then reclassified the expenses as loans.
- Albert Hee did not claim the $4,063,294.39 in personal expenses that WEI paid, which should have been reported as income on his personal tax returns filed for the years 2002 to 2012, resulting in personal federal taxes due in the amount of $425,988.00.
- Because Hee improperly deducted some of the personal expenses as business expenses, WEI underpaid its Federal corporate taxes in the amount of $140,651.00.
If convicted, Hee faces up to three years imprisonment and a fine of up to $250,000 on each of the 13 charges. The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The investigation of this case was conducted by the Internal Revenue Service -- Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorney Leslie E. Osborne, Jr.
Holden Woman Sentenced to 18 Months for Stealing Nearly $1 Million from Elderly In-LawsRead the Press Release
BOSTON – A Holden woman was sentenced today in U.S. District Court in Worcester in connection with a scheme to steal nearly $1 million from her elderly in-laws.
Chiao Fang Ku, 45, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison, one year of supervised release, and ordered to pay $954,571 in restitution. In August 2014, Ku pleaded guilty to one count of wire fraud.
After Ku’s father-in-law became ill in 2008, Ku offered to help her mother-in-law manage the couple’s finances. Ku was given access to her in-laws’ savings and investment accounts. She thereafter began siphoning funds from those accounts through online transfers, forged checks, and cash withdrawals. Ku used the money for on-line gambling activities and other personal uses. She also obtained credit cards in her mother-in-law’s name without authorization, and then used those cards for personal expenses. In total, Ku stole over $950,000 from her in-laws over a five-year period.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
Hialeah Man Sentenced to Prison for Operating A Fraudulent Website Selling “Walt Disney World” TicketsRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Raul Cruz (37, Hialeah) to five years in federal prison for credit card fraud. As part of his sentence, the Court also entered a money judgment in the amount of $159,219.94, the proceeds of the fraud. Cruz pleaded guilty on August 26, 2014.
According to court documents, Cruz purchased Walt Disney World Co. theme park tickets over the phone using stolen credit card numbers that he, in turn, had purchased from business owners in South Florida. To sell the tickets, Cruz created a shell company called “Disney Computer SE” and a website (www.disneycomputerservice.com), both of which utilized the name “Disney” to give the appearance of legitimacy. Using the website and shell company, Cruz resold the tickets to the public. During the course of the fraudulent schem, Cruz purchased over $159,000 worth of Walt Disney World Co. tickets.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
Georgia Woman Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LORI DEXTER, age 52, of Atlanta, Georgia, pled guilty today to a one-count Superseding Bill of Information charging her with conspiracy to distribute and possess with intent to distribute methamphetamine.
According to the Bill of Information, beginning on a date unknown and continuing until on or about September 8, 2013, DEXTER knowingly combined, conspired, confederated and agreed with persons known and unknown, to distribute and possess with the intent to distribute a quantity of methamphetamine.
DEXTER faces a maximum term of imprisonment of twenty years and a fine of $1,000,000, three years of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L. C. Feldman set sentencing for April 22, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
Galveston Woman Sentenced for Collin County Mortgage FraudRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 68 year-old Galveston, Texas woman has been sentenced to federal prison for federal violations related to a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Yvonne Gumaer pleaded guilty on Jan. 22, 2013 to making a false statement in connection with an FHA insured home loan and was sentenced to 33 months in federal prison today by U.S. District Judge Richard Schell. Gumaer was also ordered to pay restitution in the amount of $791,782.89.
According to information presented in court, Gumaer was an escrow officer at Regency Title Company ("RTC") in Collin County. In 2008, Gumaer conspired with Larry Reisman, Kathy Moore, and others to knowingly and willfully make a materially false statement, for the purpose of influencing the FHA to insure a mortgage loan made to another person to purchase property known as the Thistle Way III Property from Reisman. Specifically, Reisman, the seller of the property, had not and would not pay or reimburse the borrower for any part of the borrower's closing costs which had not been disclosed in the sales contract, a violation of 18 U.S.C. § 1014. This scheme resulted in losses to mortgage lenders, including The Federal National Mortgage Association (Fannie Mae) and The Federal Home Loan Mortgage Corporation (Freddie Mac). Gumaer was indicted by a federal grand jury on Mar. 15, 2012.
Others who have been sentenced in connection with the mortgage fraud schemes include
Kathy Moore, 50, of Broken Arrow, Oklahoma, who was sentenced to 24 months in federal prison and ordered to pay restitution in the amount of $774,377.63; and Larry Reisman, 52, of Dallas, who was sentenced to 42 months in federal prison and ordered to pay restitution in the amount of $1.5 million.This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by HUD-Office of Inspector General, IRS Criminal Investigation, Federal Bureau of Investigation, Federal Housing Finance Agency-Office of Inspector General, U.S. Secret Service, and U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorneys Andy Williams and Chris Eason.
Freedom Industries officials indicted in January chemical spillRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that Freedom Industries, Inc. (Freedom) and six former Freedom officials have been charged with various federal crimes related to the January 2014 Elk River chemical spill in Charleston.
“Just a mile and a half upstream from Charleston’s primary source of drinking water, the conditions at the Freedom Industries facility were not only grievously unacceptable, but unlawful. They put an entire population needlessly at risk. As these actions make clear, such conduct cannot, and will not, be tolerated," said Attorney General Eric Holder. “These law enforcement actions send an unambiguous message: that compliance with environmental safety standards is an obligation, not a choice. The Department of Justice is committed to vigorously enforcing the Clean Water Act and other natural resource protections. And we will never rest in our efforts to protect the American people – and our environment – from harm."
“It’s hard to overstate the disruption that results when 300,000 people suddenly lose clean water,” said Goodwin. “This is exactly the kind of scenario that the Clean Water Act is designed to prevent. This spill, which was completely preventable, happened to take place in this district, but it could have happened anywhere. If we don’t want it to happen again, we need to make it crystal clear that those who engage in the kind of criminal behavior that led to this crisis will be held accountable.”
Former Freedom President Gary L. Southern, 53, currently of Marco Island, Florida, along with former Freedom owners and officers Dennis P. Farrell, 58, of Charleston, William E. Tis, 60, of Verona, Pennsylvania, and Charles E. Herzing, 63, of McMurray, Pennsylvania, were indicted by a grand jury sitting at Beckley, West Virginia. Freedom environmental consultant Robert J. Reynolds, 63, of Apex, North Carolina, and tank farm plant manager Michael E. Burdette, 60, of Dunbar, West Virginia, were charged by Goodwin in charging documents known as “informations.” Freedom Industries, Inc., was also charged in an information.
Southern is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Southern is also charged with wire fraud and various bankruptcy fraud charges. If Southern is convicted of all the charges contained in the indictment, he is exposed to a statutory maximum of 68 years in prison.
Farrell, Tis and Herzing are charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. If Farrell, Tis and Herzing are convicted of all the charges with which they are charged in the indictment, they are each exposed to a statutory maximum of three years in prison.
The misconduct alleged in the indictment includes, but is not limited to:
- Failure to properly maintain the containment area surrounding the tanks at Freedom’s Elk River facility, and to make necessary repairs to ensure the containment area would contain a chemical spill;
- failure to properly inspect a tank containing the chemical MCHM;
- failure to develop and implement a spill prevention, control and countermeasures plan;
- failure to develop and implement a stormwater pollution prevention plan and groundwater protection plan, both requirements of a National Pollutant Discharge Elimination System Permit.
During the time they were responsible corporate officers for Freedom, Farrell, Tis, Herzing and Southern allegedly approved funding only for those projects that would result in increased business revenue for Freedom, or that were immediately necessary for required equipment maintenance. They allegedly failed to take action to fund other repair and upkeep projects for equipment and systems necessary for environmental compliance at the Elk River facility, including repairing defects in a containment wall, addressing drainage problems in the containment area, and developing and implementing proper protection plans.
Information charges were also filed against Freedom itself, as well as Robert J. Reynolds and Michael E. Burdette. Freedom is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Michael Burdette, the former plant manager for the Freedom facility on the Elk River, and Robert Reynolds, also one of the individuals responsible for environmental compliance at Freedom, have each been charged with violating the Clean Water Act.
Charges contained in indictments and informations are merely accusations, and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Click here to view the indictment
Click here to view the Information regarding Freedom Industries
Click here to view the Information regarding Michael Burdette
Click here to view the Information regarding Robert Reynolds
Freedom Industries Officials Indicted in January Chemical SpillRead the Press Release
U.S. Attorney Booth Goodwin today announced that Freedom Industries Inc. (Freedom) and six former Freedom officials have been charged with various federal crimes related to the January 2014 Elk River chemical spill in Charleston.
“Just a mile upstream from Charleston’s primary source of drinking water, the conditions at the Freedom Industries facility were not only grievously unacceptable, but unlawful,” said Attorney General Eric Holder. “They put an entire population needlessly at risk. As these actions make clear, such conduct cannot, and will not, be tolerated. These law enforcement actions send an unambiguous message: that compliance with environmental safety standards is an obligation, not a choice. The Department of Justice is committed to vigorously enforcing the Clean Water Act and other natural resource protections. And we will never rest in our efforts to protect the American people – and our environment – from harm.”
“It’s hard to overstate the disruption that results when 300,000 people suddenly lose clean water,” said Goodwin. “This is exactly the kind of scenario that the Clean Water Act is designed to prevent. This spill, which was completely preventable, happened to take place in this district, but it could have happened anywhere. If we don’t want it to happen again, we need to make it crystal clear that those who engage in the kind of criminal behavior that led to this crisis will be held accountable.”
Former Freedom President Gary L. Southern, 53, currently of Marco Island, Florida, along with former Freedom owners and officers Dennis P. Farrell, 58, of Charleston, William E. Tis, 60, of Verona, Pennsylvania, and Charles E. Herzing, 63, of McMurray, Pennsylvania, were indicted by a grand jury sitting at Beckley, West Virginia. Freedom environmental consultant Robert J. Reynolds, 63, of Apex, North Carolina, and tank farm plant manager Michael E. Burdette, 60, of Dunbar, West Virginia, were charged by U.S. Attorney Goodwin in charging documents known as “informations.” Freedom Industries Inc., was also charged in an information.
Southern is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Southern is also charged with bankruptcy fraud, mail fraud and wire fraud. If Southern is convicted of all the charges contained in the indictment, he is exposed to a statutory maximum of 68 years in prison.
Farrell, Tis and Herzing are charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. If Farrell, Tis and Herzing are convicted of all the charges with which they are charged in the indictment, they are each exposed to a statutory maximum of three years in prison.
The misconduct alleged in the indictment includes, but is not limited to:
-
Failure to properly maintain the containment area surrounding the tanks at Freedom’s Elk River facility, and to make necessary repairs to ensure the containment area would contain a chemical spill;
-
failure to properly inspect a tank containing the chemical MCHM;
-
failure to develop and implement a spill prevention, control and countermeasures plan;
-
failure to develop and implement a stormwater pollution prevention plan and groundwater protection plan, both requirements of a National Pollutant Discharge Elimination System Permit.
During the time they were responsible corporate officers for Freedom, Farrell, Tis, Herzing and Southern allegedly approved funding only for those projects that would result in increased business revenue for Freedom, or that were immediately necessary for required equipment maintenance. They allegedly failed to take action to fund other repair and upkeep projects for equipment and systems necessary for environmental compliance at the Elk River facility, including repairing defects in a containment wall, addressing drainage problems in the containment area, and developing and implementing proper protection plans.
Information charges were also filed against Freedom itself, as well as Robert J. Reynolds and Michael E. Burdette. Freedom is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Michael Burdette, the former plant manager for the Freedom facility on the Elk River, and Robert Reynolds, also one of the individuals responsible for environmental compliance at Freedom, have each been charged with violating the Clean Water Act.
Charges contained in indictments and informations are merely accusations, and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Franklin County Man Sentenced to Prison for Mailing Threatening CommunicationRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jeremy Robitaille, 29, of Franklin County, Vermont, was sentenced on December 16, 2014, in United States District Court in Brattleboro, Vermont, to serve a term of 36 months imprisonment and a two-year period of supervised release following his conviction on one count of mailing a threatening communication, in violation of 18 U.S.C. § 876(c). Judge J. Garvan Murtha also ordered Robitaille to pay a $100 special assessment.
According to court records and proceedings, on April 22, 2013, Robitaille, who was then in prison serving a lengthy sentence following his conviction in Vermont state court for assault and robbery, mailed a letter addressed to the Burlington District Courthouse on Cherry Street in Burlington. This letter contained a threat to injure all of the clerks and judges working in the courthouse. As a result of the threatening letter, the courthouse had to be searched thoroughly by police with bomb-sniffing dogs to ensure that it was safe. Robitaille, who had a significant criminal history, told law enforcement that he sent the letter in an attempt to secure a transfer from a facility where he was not happy.
United States Attorney Coffin commended the efforts of the Federal Bureau of Investigation and the Vermont State Police in the investigation and prosecution of Robitaille.
The prosecution of Robitaille was handled by Assistant U.S. Attorney Barbara A. Masterson. Robitaille was represented by Assistant Federal Public Defender Steven L. Barth.
Four People Sentenced to Prison for $360,000 Identity Theft SchemeRead the Press Release
A Cleveland Heights woman was sentenced to nearly 15 years in prison for his role in a widespread identity-theft scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darnell Nash, 29, was sentenced today to 175 months in prison and ordered to pay $361,341 in restitution. She is the last of four people to be sentenced in the identity theft scheme.
"This crime ring stole people's identities and used them to illegally get hundreds of thousands of dollars," Dettelbach said.
“This sentence sends a clear message that those seeking to commit unemployment insurance fraud will be held accountable. Combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to aggressively investigate those who obtain benefits to which they are not entitled,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Nash, Kennard Berts, 21, of Cleveland Heights, Dwayne Buchannan, Jr., 22, of Cleveland, and Justin Davis, 26, of Cleveland Heights, indictmented in October on charges including conspiracy to commit mail and wire fraud, mail fraud, wire fraud, aggravated identity theft, and money laundering.
The defendants each entered guilty pleas to charges of conspiracy, mail and wire fraud, and aggravated identity theft. Nash and Berts also entered guilty pleas to money laundering. Approximately $100,000 seized during the investigation was also ordered forfeited to the United States.
U.S. District Judge Donald C. Nugent sentenced Davis to 74 months in prison, Berts to 61 months in prison and Buchannan to 54 months in prison earlier this year.
The defendants were also ordered to pay restitution in the amount of $361,341 to the six state unemployment offices affected.
The defendants executed a “fictitious employer” scheme from about March 2012 to January 2013. They submitted false paperwork to various States’ unemployment-insurance offices where the defendants registered employers that did not actually exist and reported non-existent earnings for fictitious employees. The defendants then submitted false claims for unemployment-insurance benefits of the purported employees, according to court documents.
The defendants used actual individuals’ personal identifying information that the defendants had obtained fraudulently through various misrepresentations including distribution of flyers in urban areas purporting to offer assistance vouchers for food, housing, furniture and clothing. When the individuals called a telephone number listed on the flyers, they were asked to provide personal identifying information, which the defendants later used to file fraudulent claims for unemployment insurance benefits totaling $361,341, according to court documents.
The case was prosecuted by Assistant United States Attorneys, Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General, the United States Secret Service, the United States Postal Inspector, and the Social Security Administration’s Office of Inspector General. Cleveland Heights Police Department also assisted the investigation.
Four Men Indicted on Federal Gun ChargesRead the Press Release
All Defendants Have Previous Convictions And Were Prohibited From Possessing Firearms
CHARLOTTE, N.C. – Four Charlotte men with previous criminal convictions have been indicted on federal gun charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal grand jury returned the criminal indictments on Tuesday, December 16, 2014, against Carlton Calvin Wilson, 28, Dominic Xavier McDonald, 28, Brendan Cornelius Penn, 25, and Tory Lorenzo Vaszquez, 25, all of Charlotte, charging them with multiple counts of possession of a firearm by a convicted felon.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department join U.S. Attorney Tompkins in making today’s announcement.
According to the four criminal indictments and other filed court documents, the defendants unlawfully possessed firearms despite having previous criminal convictions, which prohibit them from possessing weapons. Wilson’s six-count indictment alleges that, from September through November 2014, Wilson illegally possessed 11 firearms, including four pistols, five revolvers and two shotguns. Penn’s indictment alleges that in October 2014, Penn illegally possessed three firearms, and has been charged with three counts of possession of firearm by a convicted felon in connection with that conduct. A third indictment charges McDonald with four counts of possession of a firearm by a convicted felon. According to allegations contained in the indictment, in October 2014, McDonald possessed six firearms, including two pistols, one revolver and two rifles. A fourth indictment charges Vasquez with one count of possession of a firearm by a convicted felon for possessing two pistols in October 2014.
All four defendants are currently in federal custody. They face a maximum of 10 years in prison and a $250,000 fine for each count.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was handled by ATF and CMPD Violent Task Force. The case was prosecuted by Assistant United States Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte.
Fort Myers Felon Sentenced to Fifteen Years for Possessing AmmunitionRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Jerry Ward (48, Fort Myers) to 15 years in federal prison for being a felon in possession of ammunition. He was found guilty by a Fort Myers federal jury on June 12, 2014.
Ward was arrested following a confrontation with a Lee County Sheriff’s deputy, on June 14, 2012, during which Ward dumped the contents of a pillow case, including two rounds of .45 caliber ammunition, onto the deputy’s patrol car. Trial evidence showed that Ward had disposed of a gun upon seeing the deputy approaching in his patrol car. Ward was previously convicted felon at the time of the offense and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Robert P. Barclift.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in our communities.
Former Symantec Marketing Director Pleads Guilty to Embezzlement ChargesRead the Press Release
SAN JOSE – Lena “Mickey” Jacobs Coombs pleaded guilty yesterday afternoon on wire fraud charges alleging she embezzled money from her former employer, Symantec, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Coombs admitted in her plea agreement that from January 2010 through April 2012 she was employed by Symantec as a Director of Marketing and worked at Symantec’s Lindon, Utah facility outside of Salt Lake City. Between January 2010 and May 2012, Coombs used various methods to embezzle a total of over $1.137 million from Symantec. Coombs admitted that she spent these embezzled Symantec funds on various personal expenses such as such as trips to Hawaii and the 2012 Super Bowl in Indianapolis, concerts, home remodeling, automobile payments, and a personal nanny. Coombs charged personal and other unauthorized expenses on the Symantec American Express Cards and then knowingly submitted fraudulent expense reports to disguise these charges as legitimate business expenses. Coombs also submitted fraudulent invoices falsely claiming that a shell company she had created had done marketing work for Symantec. Coombs then diverted the payments on those fraudulent invoices for her personal use.
Coombs, 48, of Highland, Utah, was charged by indictment on June 11, 2014, with 26 counts of wire fraud in violation of 18 U.S.C. § 1343, and 10 counts of money laundering, in violation of 18 U.S.C. § 1957(a). Under the plea agreement, Coombs pleaded guilty to one count of wire fraud.
Coombs’ sentencing hearing is scheduled for April 1, 2015, at 9:30 a.m. before the Honorable Lucy H. Koh, United States District Court Judge, in San Jose. The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Former State Prison Inmate Pleads Guilty to Mailing Threatening Communications to JudgeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Pennsylvania state prison inmate pleaded guilty today in Scranton before Senior U.S. District Court Judge James M. Munley to mailing a letter threatening to injure and kill a Monroe County Common Pleas Judge.
According to United States Attorney Peter Smith, the defendant, Devon Williams, age 25, admitted that while he was an inmate at the State Correctional Institution in Albion, Pennsylvania, he mailed a letter from the prison in January 2014 to the judge’s chambers at the Monroe County Courthouse in Stroudsburg. The letter threatened harm and death to the judge.
Williams was indicted by a federal grand jury in September 2014, as a result of an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.
Judge Munley scheduled sentencing for March 24, 2015. Williams faces up to five years in prison and a $250,000 fine. Williams is detained in federal custody pending sentencing.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Former Postal Employee Pleads Guilty to Obstruction of the MailsRead 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 Jennifer Paonessa, 33, of Niagara Falls, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., to obstruction of the mails. The charge carries a maximum penalty of six months in prison, a fine of $5,000, or both.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendant, a former employee of the United States Postal Service, delayed or failed to deliver mail matter entrusted to her for delivery. The defendant took at least 15 Victoria Secret coupons and used them for her own benefit.
The plea is the culmination of an investigation on the part of Special Agents of the United States Postal Service, Office of the Inspector General, under the direction of Monica Weyler.
Sentencing is scheduled for March 17, 2015, at 10:00 a.m. before Judge Schroeder.
Former Miami-Dade County Employee Sentenced for Tax EvasionRead the Press Release
A Coral Gables, Florida, resident and former employee of the General Services Administration (GSA) of Miami-Dade County was sentenced to serve 51 months in prison for tax evasion to be followed by three years of supervised release, and ordered to pay $556,254 in restitution to the U.S. Treasury, the Justice Department and Internal Revenue Service (IRS) announced today.
On Oct. 15, 2014, Jesus Pons pleaded guilty to one count of tax evasion in the U.S. District Court for the Southern District of Florida. According to the court documents, Pons was a computer services manager at the GSA of Miami-Dade County. He was responsible for managing and allocating resources to information technology projects for the county. Court filings also establish that he was responsible for supervising and managing tasks performed by county vendors. From 2007 to 2011, Pons received money in the form of illegal kickback payments from two county vendors, Data Industries and Paradyne Consulting Services. In exchange for these illegal kickbacks, Pons approved payments from Miami-Dade County to the vendors for consulting work that was never performed. According to the plea agreement, Pons did not report the illegal kickbacks on his tax returns. From 2007 through 2011, Pons earned $1,666,998 in income from the scheme that he did not report to the IRS, causing $556,254 in tax loss.
This case was investigated by special agents of IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys Jeffrey A. McLellan and Erin Pulice of the Justice Department’s Tax Division.
Former Marine Pleads Guilty to Wrongful Receipt of Benefits Based on Falsified Military RecordsRead the Press Release
BOSTON – A Wakefield veteran pleaded guilty today to stealing $174,000 in benefits paid to him based upon falsified Vietnam War service records.
Albert L. Seely, 67, pleaded guilty today before Senior U.S. District Court Judge Rya W. Zobel. Seely admitted to theft of government funds from October 1, 1999 through July 1, 2014. Sentencing is scheduled for March 18, 2015.
Seely, a former U.S. Marine, was deployed to Vietnam and served there from 1966 to 1967. In December 1970, Seely filed his discharge papers with the Veterans Benefit Administration (VBA) and misrepresented the dates and places of his deployment in Vietnam. He also falsely listed numerous decorations, including two Purple Hearts, a Vietnam Cross of Gallantry, a Bronze Star, and a Silver Star. In March 1999, Seely applied for and received VBA disability payments based upon his false claims of combat and valor. He ultimately fraudulently obtained $174,656 in government benefits. In February 2014, the VBA terminated his benefits after his fraud was revealed.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, and Jeffrey G. Hughes, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit.
Former Jamestown Man Pleads Guilty to Pump and Dump Securites and Tax FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Eric C. Cusimano, 33, of Lakeway, Texas, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to conspiracy to commit securities fraud and tax evasion. Each charge carries a maximum sentence of five years in prison and a fine of $250,000.
“Because of the relentless quest of some to steal your money, it is imperative that those planning to invest their hard earned resources be equally diligent when considering their investment strategy,” said U.S. Attorney Hochul. “For our part, this Office will continue to aggressively pursue individuals who perpetrate financial frauds, whether such criminals are located in this country or abroad.”
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between September 2009 and January 9, 2012, the defendant and others participated in a stock fraud scheme that utilized several websites registered through an internet domain registrar and web hosting company. The scheme was designed to fraudulently inflate the prices of publically traded stocks of companies, generally stocks of companies with low stock prices (“penny stocks”). Investors were deceived into believing that prices at which they bought and sold the stocks were determined by supply and demand, not rigged by manipulators. Such a scheme is frequently referred to as “pump-and-dump.”
One of the websites involved in this scheme was www.bestdamnpennystocks.com. The website was used to tout approximately 52 penny stocks. During the course of the scheme, Cusimano and others were compensated by third-parties to tout certain penny stocks. In total, the defendant was compensated $1,218,783 during the course of the scheme which involved at least 250 victims.
Furthermore, during the tax years 2008 to 2011, Cusimano owned and operated Premire Consulting, Inc., which was utilized to promote penny stocks. During these years, Premire received from the defendant’s penny stock promotion business, unreported gross receipts totaling $7,921,706, and corrected taxable income totaling $1,218,783. As a result of the unreported income, the total tax due and owing is $657,005.
As part of his plea, the defendant forfeited $1,218,783.00 in United States currency as well as two pieces of property in the Southern Tier, a 26’ Pontoon boat, several valuable pieces of jewelry and approximately $340,000 from accounts he held in Panama and Belize. The money from the bank accounts was seized by the United States Attorneys Office earlier this year utilizing a repatriation order. It marked the first time that this much money has been repatriated back to the Western District of New York.
The plea is the culmination of an investigation on the part of the United States Secret Service, under the direction Acting Special Agent in Charge Michael Adelizzio, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office Charge, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero. Assistance was also provided by the Financial Industry Regulatory Authority.
Sentencing is scheduled for March 26, 2015 at 1:00 p.m. before Judge Arcara.
Former Harrison County Supervisor Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
Gulfport, Miss. – Harrison County Supervisor Kim Savant, 65, of Gulfport, pled guilty today in U.S. District Court to conspiracy to commit bribery in connection with his role as a board member of the Harrison County Utility Authority, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, and Acting Special Agent in Charge Jerome R. McDuffie with IRS Criminal Investigation.
A criminal Bill of Information was filed against Savant on November 14, 2014, charging him with conspiracy to commit bribery, which carries a maximum sentence of 5 years in prison, a $250,000.00 fine, and up to three years of supervised release. He will be sentenced by U.S. District Judge Sul Ozerden on March 26, 2015 at 9:00 a.m.
From January, 2011, through January, 2013, Savant was a Supervisor for Harrison County, Mississippi, and was a member of the board of the Harrison County Utility Authority (“HCUA”). The HCUA was responsible for managing water, wastewater, storm water and solid waste services in Harrison County, among other things. During this period of time, Savant conspired with another person to commit bribery, that is, Savant performed official actions such as voting for the awarding of HCUA contracts, payments, emergency work and other work worth millions of dollars to a particular company in exchange for Savant receiving $1,500.00 cash per month from a representative of that company.
“When public officials turn to financial gain in exchange for official acts, we will prosecute them to the fullest extent of the law,” said U.S. Attorney Gregory K. Davis. “Public corruption, particularly among our elected officials, undermines the public’s confidence in our system of government. I thank the Assistant U. S. Attorneys, FBI, and IRS - Criminal Investigation for their efforts in the investigation and prosecution of this case.”
Jerome R. McDuffie, Acting Special Agent in Charge, IRS – Criminal Investigation, stated: “All those entrusted to serve the public, whether appointed or elected, should be held to the very highest standards of fiscal responsibility and integrity. It is vitally important that federal funds go toward their intended use and the execution of the mission-critical business. IRS - Criminal Investigation will continue to work with our law enforcement partners in the investigation and potential prosecution of individuals involved in program fraud and the misuse of public monies.”
This case was investigated by the FBI and the IRS - Criminal Investigation. Assistant U.S. Attorney Mike Hurst is prosecuting the case.Former Cordele Resident and Recidivist Pleads Guilty to Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christopher B. Wilcox, aged 41, formerly of Cordele, Georgia, entered a guilty plea to one count of possession of child pornography on December 15, 2014, before the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia.This is not Mr. Wilcox’s first offence involving child victims. At the time of the crime to which he pled guilty, he was on supervised release from a previous conviction in the United States District Court for the Middle District of Georgia for possession of child pornography in March, 2003, for which he received a sentence of 33 months in prison. He was also subsequently convicted of aggravated child abuse in Crisp County Superior Court in February 2005, for which he was on probation at the time of his latest offense. Mr. Wilcox is currently serving a 10 year parole revocation of this state sentence based on this new offense.
The current charges stem from a search done of the contents of Mr. Wilcox’s computer by the United States Probation Officer overseeing his supervised release for his 2003 conviction.
Because he has two previous felony convictions, Mr. Wilcox faces a maximum possible sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both. He will also be required to register as a sex offender. He will be sentenced in about 60 days.
“This very worthwhile prosecution brings to justice a recidivist who, judging from his criminal history, is a threat to children in our community whenever he is not incarcerated,” said U.S. Attorney Michael Moore.The case was investigated by the Federal Bureau of Investigation, Albany. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Chief of Baltimore City Division of Transit and Marine Services Pleads Guilty to Bribery SchemeRead the Press Release
Took $20,000 to Cancel Debt Owed to City and Took $70,000 to “Sell” Government Property
Baltimore, Maryland - Barry Stephen Robinson, age 65, of Accokeek, Maryland, pleaded guilty today to two counts of bribery, and one count of money laundering, in connection with a bribery scheme perpetrated earlier this year while he was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation.The guilty plea was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City Inspector General Robert H. Pearre, Jr.; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Barry Stephen Robinson took a $20,000 bribe to cancel a $60,000 debt owed to Baltimore City, and a $70,000 bribe to allow the theft of city property worth $250,000,” said U.S. Attorney Rod J. Rosenstein. “This sort of corruption can occur when dishonest people are trusted to handle valuable government property.”
“The amount of money Barry Robinson admitted to accepting demonstrates his willingness to line his own pockets in exchange for his influence, and his actions are why many people distrust the government. Any public servant who puts a price on his or her position doesn’t have the greater good in mind and they should be held accountable,” said Steve Vogt, Special Agent in Charge of the Baltimore Division of the FBI.
“Using his official position and the resources of Baltimore City, Robinson abused the trust placed in him in order to personally enrich himself,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS-Criminal Investigation stands committed to weed out individuals, such as Robinson, who take the path to financial enhancement through greed and corruption at the expense of those they serve.”
Barry Robinson was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation and supervised Baltimore City’s “Circulator” and “Water Taxi” programs. He had authority to approve contracts with advertisers and vendors and to purchase and pay for goods and services.
In the spring of 2013, Robinson received a check for $40,000 payable to the Baltimore City Director of Finance, in payment for advertising on Circulator buses. Robinson allegedly returned the check and proposed that for $20,000 in cash, he would cancel the $40,000 debt to the city and provide written documentation that it had been paid. The debtor declined the offer at that time. In January 2014, Robinson renewed his offer to extinguish the debt to the City of Baltimore. This time, he offered to cancel $60,000 of debt in return for $20,000 in cash. From January 23 to March 11, 2014, Robinson received four cash payments of $5,000 each. In return, Robinson provided a signed letter on Baltimore City letterhead falsely stating that the $60,000 debt had been paid.
Robinson also admitted that he took a $70,000 bribe to sell unused city bus shelters. In 2011, Robinson arranged for Baltimore City to purchase 13 bus shelters from a Canadian company for $249,290. On multiple occasions from May 2013 to March 2014, Robinson said since the city did not keep track of the shelters, he planned to sell them for his personal benefit. On April 9, 2014, Robinson accepted $70,000, in return for the city’s bus shelters.
Seeking to disguise the source of the bribery proceeds, Robinson deposited the cash bribe payments he received into two bank accounts in the name of another person, and used a portion of the proceeds to install carpeting, televisions and a range hood in his home.
Robinson faces a maximum sentence of 20 years in prison for money laundering and 10 years in prison on each of two bribery counts. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for March 27, 2015, at 10:00 a.m.
U.S. Attorney Rod J. Rosenstein praised the FBI, the Baltimore City Office of Inspector General and IRS-Criminal Investigation, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Barbara S. Sale, who is prosecuting the case.